EXHIBIT 4.1
AEARO COMPANY I,
as Issuer,
AND
THE SUBSIDIARY GUARANTORS FROM TIME TO TIME PARTY HERETO,
AND
X.X. XXXXXX TRUST COMPANY, NATIONAL ASSOCIATION
as Trustee
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INDENTURE
Dated as of April 7, 2004
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$175,000,000
8 1/4% Senior Subordinated Notes
due 2012
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CROSS-REFERENCE TABLE
TIA Indenture
Section Section
------- ---------
310(a)(1)............................................................................... 7.10
(a)(2)............................................................................. 7.10
(a)(3) ............................................................................ NA
(a)(4)............................................................................. NA
(a)(5)............................................................................. 7.08; 7.10
(b)................................................................................ 7.08; 7.10;
14.02
(c)................................................................................ NA
311(a).................................................................................. 7.11
(b)................................................................................ 7.11
(c)................................................................................ NA
312(a).................................................................................. 2.05
(b)................................................................................ 14.03
(c)................................................................................ 14.03
313(a).................................................................................. 7.06
(b)(1)............................................................................. NA
(b)(2)............................................................................. 7.06
(c)................................................................................ 7.06; 14.02
(d)................................................................................ 7.06
314(a).................................................................................. 4.09;
4.10;
14.02
(b)................................................................................ NA
(c)(1)............................................................................. 7.02; 14.04
(c)(2)............................................................................. 7.02; 14.04
(c)(3)............................................................................. NA
(d)................................................................................ NA
(e)................................................................................ 14.05
(f)................................................................................ NA
315(a).................................................................................. 7.01(b)
(b)................................................................................ 7.05; 14.02
(c)................................................................................ 7.01(a)
(d)................................................................................ 6.05; 7.01(c)
(e)................................................................................ 6.11
316(a)(last sentence) .................................................................. 2.09
(a)(1)(A).......................................................................... 6.05
(a)(1)(B).......................................................................... 6.04
(a)(2)............................................................................. NA
(b)................................................................................ 6.07
317(a)(1)............................................................................... 6.08
(a)(2)............................................................................. 6.09
(b)................................................................................ 2.04
318(a) ................................................................................. 14.01
(c)................................................................................ 14.01
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NA means Not Applicable
NOTE: This Cross-Reference Table shall not, for any purpose, be deemed to be a
part of this Indenture./0
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TABLE OF CONTENTS
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ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions...........................................................................1
SECTION 1.02. Incorporation by Reference of TIA....................................................26
SECTION 1.03. Rules of Construction................................................................27
ARTICLE TWO
THE SECURITIES
SECTION 2.01. Form and Dating......................................................................27
SECTION 2.02. Execution and Authentication.........................................................29
SECTION 2.03. Registrar and Paying Agent...........................................................29
SECTION 2.04. Paying Agent To Hold Assets in Trust.................................................30
SECTION 2.05. Securityholder List..................................................................30
SECTION 2.06. Transfer and Exchange................................................................30
SECTION 2.07. Replacement Securities...............................................................31
SECTION 2.08. Outstanding Securities...............................................................31
SECTION 2.09. Treasury Securities..................................................................32
SECTION 2.10. Temporary Securities.................................................................32
SECTION 2.11. Cancellation.........................................................................32
SECTION 2.12. Defaulted Interest...................................................................32
SECTION 2.13. CUSIP and ISIN Numbers...............................................................32
SECTION 2.14. Deposit of Moneys....................................................................33
SECTION 2.15. Book-Entry Provisions for Global Securities..........................................33
SECTION 2.16. Special Transfer Provisions..........................................................34
ARTICLE THREE
REDEMPTION
SECTION 3.01. Notices to Trustee...................................................................37
SECTION 3.02. Selection of Securities To Be Redeemed...............................................37
SECTION 3.03. Notice of Redemption.................................................................38
SECTION 3.04. Effect of Notice of Redemption.......................................................39
SECTION 3.05. Deposit of Redemption Price..........................................................39
SECTION 3.06. Securities Redeemed in Part..........................................................39
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ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Securities................................................................39
SECTION 4.02. Maintenance of Office or Agency......................................................40
SECTION 4.03. Limitation on Restricted Payments....................................................40
SECTION 4.04. Limitation on Indebtedness...........................................................43
SECTION 4.05. Corporate Existence..................................................................43
SECTION 4.06. Payment of Taxes and Other Claims....................................................43
SECTION 4.07. Maintenance of Properties and Insurance..............................................44
SECTION 4.08. Compliance Certificate; Notice of Default............................................44
SECTION 4.09. Compliance with Laws.................................................................45
SECTION 4.10. SEC Reports..........................................................................45
SECTION 4.11. Waiver of Stay, Extension or Usury Laws..............................................46
SECTION 4.12. Limitation on Transactions with Affiliates...........................................46
SECTION 4.13. Limitation on Dividends and Other Payment Restrictions Affecting Subsidiaries........48
SECTION 4.14. Limitation on Liens..................................................................49
SECTION 4.15. Change of Control....................................................................49
SECTION 4.16. Limitation on Asset Sales............................................................51
SECTION 4.17. Limitation on Preferred Stock of Subsidiaries........................................53
SECTION 4.18. Limitation on Incurrence of Senior Subordinated Debt.................................53
SECTION 4.19. Limitation of Guarantees by Restricted Subsidiaries..................................53
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Merger, Consolidation and Sale of Assets.............................................54
SECTION 5.02. Successor Corporation Substituted....................................................56
ARTICLE SIX
DEFAULT AND REMEDIES
SECTION 6.01. Events of Default....................................................................56
SECTION 6.02. Acceleration.........................................................................58
SECTION 6.03. Other Remedies.......................................................................58
SECTION 6.04. Waiver of Past Defaults..............................................................59
SECTION 6.05. Control by Majority..................................................................59
SECTION 6.06. Limitation on Suits..................................................................59
SECTION 6.07. Rights of Holders To Receive Payment.................................................60
SECTION 6.08. Collection Suit by Trustee...........................................................60
SECTION 6.09. Trustee May File Proofs of Claim.....................................................60
SECTION 6.10. Priorities...........................................................................60
SECTION 6.11. Undertaking for Costs................................................................61
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ARTICLE SEVEN
TRUSTEE
SECTION 7.01. Duties of Trustee....................................................................61
SECTION 7.02. Rights of Trustee....................................................................62
SECTION 7.03. Individual Rights of Trustee.........................................................63
SECTION 7.04. Trustee's Disclaimer.................................................................63
SECTION 7.05. Notice of Default....................................................................63
SECTION 7.06. Reports by Trustee to Holders........................................................64
SECTION 7.07. Compensation and Indemnity...........................................................64
SECTION 7.08. Replacement of Trustee...............................................................65
SECTION 7.09. Successor Trustee by Merger, Etc.....................................................66
SECTION 7.10. Eligibility; Disqualification........................................................66
SECTION 7.11. Preferential Collection of Claims Against Company....................................66
SECTION 7.12. Appointment of Co-Trustee............................................................66
ARTICLE EIGHT
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 8.01. Legal Defeasance and Covenant Defeasance.............................................67
SECTION 8.02. Satisfaction and Discharge...........................................................69
SECTION 8.03. Survival of Certain Obligations......................................................70
SECTION 8.04. Acknowledgment of Discharge by Trustee...............................................70
SECTION 8.05. Application of Trust Moneys..........................................................70
SECTION 8.06. Repayment to the Company; Unclaimed Money............................................70
SECTION 8.07. Reinstatement........................................................................71
ARTICLE NINE
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. Without Consent of Holders...........................................................71
SECTION 9.02. With Consent of Holders..............................................................72
SECTION 9.03. Compliance with TIA..................................................................73
SECTION 9.04. Revocation and Effect of Consents....................................................73
SECTION 9.05. Notation on or Exchange of Securities................................................73
SECTION 9.06. Trustee To Sign Amendments, Etc......................................................73
ARTICLE TEN
APPLICATION OF TRUST MONEYS
SECTION 10.01. "Trust Moneys" Defined...............................................................74
SECTION 10.02. Withdrawal of Net Cash Proceeds Following an Asset Sale Offer........................74
SECTION 10.03. Withdrawal of Trust Moneys for a Related Business Investment.........................75
SECTION 10.04. Withdrawal of Trust Moneys on Basis of Retirement of Securities......................75
SECTION 10.05. Investment of Trust Moneys...........................................................75
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ARTICLE ELEVEN
SUBORDINATION
SECTION 11.01. Securities Subordinated to Senior Indebtedness.......................................76
SECTION 11.02. No Payment on Securities in Certain Circumstances....................................76
SECTION 11.03. Payment Over of Proceeds upon Dissolution, Etc.......................................77
SECTION 11.04. Payments May Be Paid Prior to Dissolution............................................78
SECTION 11.05. Subrogation..........................................................................79
SECTION 11.06. Obligations of the Company Unconditional.............................................79
SECTION 11.07. Notice to Trustee....................................................................79
SECTION 11.08. Reliance on Judicial Order or Certificate of Liquidating Agent.......................80
SECTION 11.09. Trustee's Relation to Senior Indebtedness............................................80
SECTION 11.10. Subordination Rights Not Impaired by Acts or Omissions
of the Company or Holders of Senior Indebtedness..................................80
SECTION 11.11. Holders Authorize Trustee To Effectuate Subordination of Securities..................81
SECTION 11.12. This Article Eleven Not To Prevent Events of Default.................................81
SECTION 11.13. Trustee's Compensation Not Prejudiced................................................81
ARTICLE TWELVE
GUARANTEE
SECTION 12.01. Unconditional Guarantee..............................................................81
SECTION 12.02. Subordination of Guarantee...........................................................82
SECTION 12.03. Severability.........................................................................82
SECTION 12.04. Limitation of Guarantors' Liability..................................................82
SECTION 12.05. Waiver of Subrogation................................................................83
SECTION 12.06. Execution of Guarantee...............................................................83
SECTION 12.07. Waiver of Stay, Extension or Usury Laws..............................................83
ARTICLE THIRTEEN
SUBORDINATION OF GUARANTEE OBLIGATIONS
SECTION 13.01. Guarantee Obligations Subordinated to Senior Indebtedness............................84
SECTION 13.02. No Payment on Guarantee Obligations in Certain Circumstances.........................84
SECTION 13.03. Payment Over of Proceeds upon Dissolution, Etc.......................................85
SECTION 13.04. Subrogation..........................................................................86
SECTION 13.05. Obligations of Guarantors Unconditional..............................................87
SECTION 13.06. Notice to Trustee....................................................................87
SECTION 13.07. Reliance on Judicial Order or Certificate of Liquidating Agent.......................87
SECTION 13.08. Trustee's Relation to Guarantor Senior Indebtedness..................................88
SECTION 13.09. Subordination Rights Not Impaired by Acts or Omissions of Guarantors
or Holders of Guarantor Senior Indebtedness.......................................88
SECTION 13.10. Holders Authorize Trustee To Effectuate Subordination of Guarantee...................89
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ARTICLE FOURTEEN
MISCELLANEOUS
SECTION 14.01. TIA Controls.........................................................................89
SECTION 14.02. Notices..............................................................................89
SECTION 14.03. Communications by Holders with Other Holders.........................................90
SECTION 14.04. Certificate and Opinion as to Conditions Precedent...................................90
SECTION 14.05. Statements Required in Certificate or Opinion........................................91
SECTION 14.06. Rules by Trustee, Paying Agent, Registrar............................................91
SECTION 14.07. Legal Holidays.......................................................................91
SECTION 14.08. Governing Law........................................................................91
SECTION 14.09. No Adverse Interpretation of Other Agreements........................................91
SECTION 14.10. No Recourse Against Others...........................................................91
SECTION 14.11. Successors...........................................................................92
SECTION 14.12. Duplicate Originals..................................................................92
SECTION 14.13. Severability.........................................................................92
SIGNATURES...................................................................................................93
Exhibit A - Form of Note with Guarantee
Exhibit B - Form of Legends
Exhibit C - Form of Certificate To Be Delivered in Connection with Transfers to
Non-QIB Accredited Investors
Exhibit D - Form of Certificate To Be Delivered in Connection with Transfers Pursuant to
Regulation S
Exhibit E - Form of Certificate To Be Delivered in Connection with Transfers of Temporary
Regulation S Global Note
Note: This Table of Contents shall not, for any purpose, be deemed to part of this Indenture.
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INDENTURE dated as of April 7, 2004, among AEARO COMPANY I, a
Delaware corporation (the "Company"), the Guarantors from time to time party
hereto and X.X. Xxxxxx Trust Company, NATIONAL ASSOCIATION, as Trustee (the
"Trustee").
Each party hereto agrees as follows for the benefit of each
other party and for the equal and ratable benefit of the Holders of the
Company's 8 1/4% Senior Subordinated Notes due 2012:
ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions.
"Acquired Indebtedness" of any Person means Indebtedness of
another Person and any of its Subsidiaries existing at the time such other
Person becomes a Restricted Subsidiary of the referent Person or at the time it
merges or consolidates with the referent Person or any of the referent Person's
Subsidiaries or assumed by the referent Person or any Subsidiary of the referent
Person in connection with the acquisition of assets from such other Person and
in each case not incurred by the referent Person or any Subsidiary of the
referent Person or such other Person in connection with, or in anticipation or
contemplation of, such other Person becoming a Restricted Subsidiary of the
referent Person or such acquisition, merger or consolidation.
"Additional Notes" has the meaning provided in Section 2.02.
"Affiliate" means, when used with reference to any Person, any
other Person directly or indirectly controlling, controlled by, or under direct
or indirect common control with, the referent Person. For the purposes of this
definition, "control" when used with respect to any specified Person means the
power to direct or cause the direction of management or policies of such Person,
directly or indirectly, whether through the ownership of voting securities, by
contract or otherwise; and the terms "controlling" and "controlled" have
meanings correlative of the foregoing.
"Affiliate Transaction" has the meaning provided in Section
4.12.
"Agent" means any Registrar, Paying Agent or co-Registrar.
"Asset Acquisition" means (a) an Investment by the Company or
any Restricted Subsidiary of the Company in any other Person pursuant to which
such Person shall become a Restricted Subsidiary of the Company or any
Restricted Subsidiary of the Company, or shall be merged with or into the
Company or any Restricted Subsidiary of the Company, or (b) the acquisition by
the Company or any Restricted Subsidiary of the Company of the assets of any
Person which constitute all or substantially all of the assets of such Person,
any division or line of business of such Person or any other properties or
assets of such Person other than in the ordinary course of business.
"Asset Sale" means any direct or indirect sale, issuance,
conveyance, transfer, lease (other than operating leases entered into in the
ordinary course of business), assignment or other disposition by the Company or
by any of its Subsidiaries (including any Sale and Leaseback Transaction) to any
Person other than to the Company or to a direct or indirect Wholly-Owned
Restricted Subsidiary of the Company of (i) any Capital Stock of any Restricted
Subsidiary of the Company or (ii) any other property or assets of the Company or
of any Restricted Subsidiary of the Company, other than with respect to this
clause (ii) any such sale, conveyance, transfer, lease, assignment or other
disposition of inventory or obsolete equipment in the ordinary course of
business; provided, however, that Asset Sales shall not include:
(a) a transaction or series of related transactions for which
the Company or its Restricted Subsidiaries receive aggregate
consideration of less than $1,000,000,
(b) the sale, conveyance, transfer, lease, assignment or other
disposition of all or substantially all of the assets of the Company as
permitted under Article Five and
(c) sales or grants of licenses to use patents, trade secrets,
know-how and technology of the Company and its Restricted Subsidiaries
to the extent that such license does not prohibit the licensor from
using the patent, trade secret, know-how or technology.
"Asset Sale Offer" has the meaning set forth in Section 4.16.
"Available Proceeds Amount" has the meaning set forth in
Section 4.16.
"Bankruptcy Law" means Title 11, U.S. Code or any similar
Federal, state or foreign law for the relief of debtors.
"Blockage Period" has the meaning provided in Section 11.02.
"Board of Directors" means, with respect to any Person, the
board of directors of such Person or any duly authorized committee thereof.
"Board Resolution" means, with respect to any Person, a copy
of a resolution certified by the Secretary or an Assistant Secretary of such
Person 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.
"Business Day" means any day other than a Saturday, Sunday or
any day which banking institutions in the City of New York are required or
authorized by law or other governmental action to be closed.
"Capitalized Lease Obligation" means, as to any Person, the
obligations of such Person to pay rent or other amounts under a lease that are
required to be classified and accounted for as capital lease obligations under
GAAP and, for purposes of this definition, the amount of such obligations at any
date shall be the capitalized amount of such obligations at such date,
determined in accordance with GAAP.
"Capital Stock" means
(a) with respect to any Person that is a corporation, any and
all shares, interests, participations or other equivalents (however
designated and whether or not voting) of corporate stock, including
each class of Common Stock and Preferred Stock of such Person and
(b) with respect to any Person that is not a corporation, any
and all partnership or other equity interests of such Person.
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"Cash Equivalents" means:
(a) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or issued
by any agency thereof and backed by the full faith and credit of the
United States, in each case maturing within one year from the date of
acquisition thereof;
(b) marketable direct obligations issued by any state of the
United States of America or any political subdivision of any such state
or any public instrumentality thereof maturing within one year from the
date of acquisition thereof and, at the time of acquisition, having one
of the two highest ratings obtainable from either Standard & Poor's
Corporation ("S&P") or Xxxxx'x Investors Service, Inc. ("Moody's");
(c) commercial paper maturing no more than one year from the
date of creation thereof and, at the time of acquisition, having a
rating of at least A-1 from S&P or at least P-1 from Moody's;
(d) certificates of deposit or bankers' acceptances maturing
within one year from the date of acquisition thereof issued by any
commercial bank organized under the laws of the United States of
America or any state thereof or the District of Columbia or any U.S.
branch of a foreign bank having at the date of acquisition thereof
combined capital and surplus of not less than $250,000,000 and at the
time of purchase received one of the three highest ratings from S&P and
Moody's; and
(e) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clause (a)
above entered into with any bank meeting the qualifications specified
in clause (d) above;
provided that for purposes of the subordination provisions of Article Eleven and
Article Thirteen, the term "Cash Equivalents" shall not include obligations of
the type referred to in clause (e).
"Change of Control" means the occurrence of one or more of the
following events (whether or not approved by the Board of Directors of the
Company):
(a) the Company or any of its Restricted Subsidiaries,
directly or indirectly, sells, assigns, conveys, transfers, leases or
otherwise disposes of, in one transaction or a series of related
transactions, all or substantially all of the property or assets of the
Company and its Restricted Subsidiaries (determined on a consolidated
basis) to any Person or group (other than a Wholly-Owned Restricted
Subsidiary of the Company) of related Persons for purposes of Section
13(d) of the Exchange Act (a "Group of Persons") other than one or more
Permitted Holders; or
(b) the adoption of any plan of liquidation or dissolution of
the Company (whether or not in compliance with the provisions of this
Indenture); or
(c) a "person" or "group" (within the meaning of Sections
13(d) and 14(d)(2) of the Exchange Act (other than the Company or one
or more Permitted Holders)) becomes the "beneficial owner" (as defined
in Rule 13d-3 under the Exchange Act) of Capital Stock of the Company
representing at least 50% of the voting power of the Capital Stock of
the Company; or
(d) the first day on which a majority of the members of the
Board of Directors of the Company are not Continuing Directors.
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For purposes of the foregoing, the transfer (by lease,
assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries of the Company the Capital Stock of which
constitutes all or substantially all of the properties and assets of the Company
shall be deemed to be the transfer of all or substantially all of the properties
and assets of the Company.
"Change of Control Date" has the meaning provided in Section
4.15.
"Change of Control Offer" has the meaning provided in Section
4.15.
"Change of Control Payment Date" has the meaning provided in
Section 4.15.
"Commodity Agreement" means any commodity futures contract,
commodity option or other similar agreement or arrangement.
"Common Stock" of any Person means any and all shares,
interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of, such Person's common stock, whether
outstanding on the Issue Date or issued after the Issue Date, and includes,
without limitation, all series and classes of such common stock.
"Company" means the party named as such in this Indenture
until a successor replaces it pursuant to this Indenture and thereafter means
such successor.
"Company Order" means a written order or request signed in the
name of the Company by (i) its President, Chief Financial Officer, Vice
President, Controller, Treasurer, Assistant Treasurer, Secretary, Assistant
Secretary or any other officer so authorized or (ii) an authorized signatory of
any such officer (by virtue of a power of attorney or other similar instrument)
and delivered to the Trustee.
"Consolidated EBITDA" means, with respect to any Person, for
any period, the sum (without duplication) of:
(a) Consolidated Net Income plus
(b) to the extent that any of the following shall have been
taken into account in determining Consolidated Net Income:
(i) all income taxes of such Person and its
Restricted Subsidiaries paid or accrued in accordance with
GAAP for such period, Consolidated Interest Expense and
depreciation and amortization expense;
(ii) the amount of any non-cash restructuring reserve
or charge recorded during such period in accordance with GAAP;
(iii) fees permitted to be paid pursuant to clause
(xii) of Section 4.12(b);
(iv) due diligence and transaction expenses related
to the Merger, including payments under any management phantom
equity plan terminated in connection therewith and any expense
associated with the exercise of options;
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(v) solely for periods ending on or prior to
September 30, 2004, lease renegotiation savings relating to
the Southbridge, Massachusetts facility; and
(vi) other non-cash items (other than non-cash
interest) reducing Consolidated Net Income, other than any
non-cash item which requires the accrual of or a reserve for
cash charges for any future period, less other non-cash items
increasing Consolidated Net Income, all as determined on a
consolidated basis for such Person and its Restricted
Subsidiaries in conformity with GAAP.
"Consolidated Fixed Charge Coverage Ratio" means, with respect
to any Person, the ratio of Consolidated EBITDA of such Person during the four
full fiscal quarters for which financial information is available (the "Four
Quarter Period") ending on or prior to the date of the transaction or event
giving rise to the need to calculate the Consolidated Fixed Charge Coverage
Ratio (the "Transaction Date") (but in no event ending more than 135 days prior
to the date of such transaction or event) to Consolidated Fixed Charges of such
Person for the Four Quarter Period. In addition to and without limitation of the
foregoing, for purposes of this definition, "Consolidated EBITDA" and
"Consolidated Fixed Charges" shall be calculated after giving effect on a pro
forma basis for the period of such calculation to:
(a) the Incurrence or repayment of any Indebtedness of such
Person or any of its Restricted Subsidiaries (and the application of
the proceeds thereof) giving rise to the need to make such calculation
and any Incurrence or repayment of other Indebtedness (and the
application of the proceeds thereof), other than the Incurrence or
repayment of Indebtedness in the ordinary course of business pursuant
to working capital facilities, at any time subsequent to the first day
of the Four Quarter Period and on or prior to the Transaction Date, as
if such Incurrence or repayment, as the case may be (and the
application of the proceeds thereof), occurred on the first day of the
Four Quarter Period,
(b) any asset sales or Asset Acquisitions or mergers or
consolidations permitted under Section 5.01 (including, without
limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of such Person or one of its Restricted
Subsidiaries (including any Person which becomes a Restricted
Subsidiary as a result of any such Asset Acquisition) Incurring
Acquired Indebtedness) which occurred at any time subsequent to the
first day of the Four Quarter Period and on or prior to the Transaction
Date, as if such Asset Sale or Asset Acquisition (including the
Incurrence of any such Indebtedness or Acquired Indebtedness) occurred
on the first day of the Four Quarter Period (adjusting for, in the case
of an Asset Acquisition or merger or consolidation permitted under
Section 5.01, any operating expense or cost reduction of such Person or
the Person to be acquired which will be eliminated or realized, as the
case may be, as a result of such Asset Acquisition, merger or
consolidation and for which pro forma calculations may be made on a
basis consistent with Regulation S-X under the Exchange Act). If such
Person or any of its Restricted Subsidiaries directly or indirectly
guarantees Indebtedness of a third person, the preceding sentence shall
give effect to the Incurrence of such guaranteed Indebtedness as if
such Person or any Restricted Subsidiary of such Person had directly
Incurred or otherwise assumed such guaranteed Indebtedness.
Furthermore, in calculating "Consolidated Fixed Charges" for
purposes of determining the denominator (but not the numerator) of this
"Consolidated Fixed Charge Coverage Ratio":
(i) interest on Indebtedness determined on a fluctuating basis
as of the Transaction Date (including Indebtedness actually Incurred on
the Transaction Date) and which will continue to be so determined
thereafter shall be deemed to have accrued at a fixed rate per annum
equal to the rate of interest on such Indebtedness in effect on the
Transaction Date; and
-5-
(ii) notwithstanding clause (i) above, interest on
Indebtedness determined on a fluctuating basis, to the extent such
interest is covered by agreements relating to Interest Swap
Obligations, shall be deemed to accrue at the rate per annum resulting
after giving effect to the operation of such agreements.
"Consolidated Fixed Charges" means, with respect to any Person
for any period, the sum, without duplication, of:
(a) Consolidated Interest Expense (including amortization or
write-off of deferred financing costs of such Person and its Restricted
Subsidiaries during such period and any premium or penalty paid in
connection with redeeming or retiring Indebtedness of such Person and
its Restricted Subsidiaries prior to the stated maturity thereof
pursuant to the agreements governing such Indebtedness) and
(b) the product of (x) the amount of all dividend payments on
any series of Capital Stock (other than Qualified Capital Stock) of
such Person and, to the extent permitted under this Indenture, its
Restricted Subsidiaries (other than dividends paid in Qualified Capital
Stock and other than dividends paid by a Restricted Subsidiary of such
Person to such Person to a Wholly-Owned Restricted Subsidiary or such
Person) paid, accrued or scheduled to be paid or accrued during such
period times (y) a fraction, the numerator of which is one and the
denominator of which is one minus the then current effective
consolidated Federal, state and local tax rate of such Person,
expressed as a decimal.
"Consolidated Interest Expense" means, with respect to any
Person for any period, the aggregate of the interest expense (without deduction
of interest income) of such Person and its Restricted Subsidiaries for such
period, on a consolidated basis, as determined in accordance with GAAP, and
including, without duplication:
(a) all amortization of original issue discount;
(b) the interest component of Capitalized Lease Obligations
paid, accrued and/or scheduled to be paid or accrued by such Person and
its Restricted Subsidiaries during such period;
(c) net cash gain or loss under all Interest Swap Obligations
(including amortization of fees);
(d) all capitalized interest;
(e) interest paid by the borrower during such period on debt
which is guaranteed by such Person, and
(f) the interest portion of any deferred payment obligations
for such period.
-6-
"Consolidated Net Income" means, with respect to any Person,
for any period, the aggregate net income (or loss) of such Person and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP; provided that there shall be excluded therefrom (to the
extent otherwise included in Consolidated Net Income):
(a) after-tax gains from Asset Sales or abandonments or
reserves relating thereto,
(b) after-tax items classified as extraordinary, unusual or
nonrecurring gains or losses or reserves relating thereto,
(c) the net income (but not loss) of any Restricted Subsidiary
of the referent Person to the extent that the declaration of dividends
or similar distributions by that Restricted Subsidiary of that income
is restricted by a contract, operation of law or otherwise,
(d) the net income of any Person, other than a Restricted
Subsidiary of the referent Person, except to the extent of cash
dividends or distributions paid to the referent Person or to a
Restricted Subsidiary of the referent Person by such Person,
(e) any restoration to income of any reserve, except to the
extent that provision for such reserve was made out of Consolidated Net
Income accrued at any time following the Issue Date,
(f) income or loss attributable to discontinued operations
(including, without limitation, operations disposed of during such
period whether or not such operations were classified as discontinued),
(g) in the case of a successor to the referent Person by
consolidation or merger or as a transferee of the referent Person's
assets, any earnings of the successor corporation prior to such
consolidation, merger or transfer of assets,
(h) any increase in cost of sales resulting from the write-up
of inventory in accordance with the purchase accounting treatment of
the Merger, or any costs associated with the application of purchase
accounting, and
(i) any impact from the cumulative effect of changes in
accounting principles.
"Consolidated Net Tangible Assets" means the total amount of
assets (less accumulated depreciation and valuation reserves and other reserves
and items deductible from gross book value of specific asset accounts under
GAAP) that under GAAP are included on a balance sheet of the Company and its
Subsidiaries after deducting therefrom all goodwill, trade names, trademarks,
patents, favorable lease rights, unamortized debt discount and expense and other
like intangibles, which in each such case would be so included on such balance
sheet, net of accumulated amortization.
"Continuing Director" means, as of the date of determination,
any member of the Board of Directors of the Company who (i) was a member of such
Board of Directors on the date hereof or (ii) was nominated for election or
elected to such Board of Directors subsequent to such date with the affirmative
vote of a majority of the Continuing Directors who were members of such Board at
the time of such election or nomination.
"Corporate Trust Office" means the address of the Trustee
specified in Section 14.02.
-7-
"Currency Agreement" means any foreign exchange contract,
currency swap or similar agreement.
"Custodian" means any receiver, trustee, assignee, liquidator,
sequestrator or similar official under any Bankruptcy Law.
"Default" means an event or condition the occurrence of which
is, or with lapse of time or the giving of notice or both would be, an Event of
Default.
"Default Notice" has the meaning provided in Section 11.02.
"Depository" means, with respect to the Securities issued in
the form of one or more Global Securities, The Depository Trust Company or
another Person designated as Depository by the Company, which must be a clearing
agency registered under the Exchange Act.
"Designated Senior Indebtedness" means (i) Indebtedness under
or in respect of the Senior Bank Facilities and (ii) any other Indebtedness
constituting Senior Indebtedness which, at the time of determination, has an
aggregate principal amount of at least $25,000,000 and is specifically
designated in the instrument evidencing such Senior Indebtedness as "Designated
Senior Indebtedness" by the Company.
"Disqualified Capital Stock" means any Capital Stock which, by
its terms (or by the terms of any security into which it is convertible or for
which it is exchangeable), or upon the happening of any event (other than an
event which would constitute a Change of Control), (i) matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or is redeemable
at the sole option of the holder thereof (except upon the occurrence of a Change
of Control), in whole or in part, on or prior to the final maturity date of the
Securities, or (ii) is convertible into or exchangeable for (whether at the
option of the issuer or the holder thereof) (a) debt securities or (b) any
Capital Stock referred to in clause (i) above, in each case at any time prior to
the final maturity of the Securities; provided, that only a portion of Capital
Stock which so matures or is mandatorily redeemable, is so convertible or
exchangeable or is so redeemable at the option of the holder thereof prior to
such final maturity date shall be deemed to be Disqualified Capital Stock.
"Equity Offering" has the meaning set forth in Paragraph 7 of
the form of Security annexed hereto as Exhibit A.
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.
"Event of Default" has the meaning set forth in Section 6.01.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended, or any successor statute or statutes thereto.
"Exchange Notes" means the 8 1/4% Senior Subordinated Notes
due 2012, to be issued in exchange for the Notes pursuant to the Registered
Exchange Offer and this Indenture.
"fair market value" or "fair value" means, with respect to any
asset or property, the price which could be negotiated in an arm's-length
transaction between an informed and willing seller and an informed and willing
and able buyer, neither of whom is under undue pressure or compulsion to
complete the transaction. Fair market value shall be determined by the Board of
Directors of the Company.
-8-
"Final Memorandum" means the Final Offering Memorandum of the
Company, dated April 1, 2004, which describes the Notes.
"Financial Advisor" means an accounting, appraisal or
investment banking firm that is, in the reasonable and good faith judgment of
the Board of Directors of the Company, qualified to perform the task for which
such firm has been engaged.
"Four Quarter Period" has the meaning set forth in the
definition of "Consolidated Fixed Charge Coverage Ratio."
"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 may be approved by a significant segment of
the accounting profession of the United States, which are in effect as of the
Issue Date.
"Global Security" has the meaning set forth in Section 2.01.
"Group of Persons" has the meaning set forth in the definition
of "Change of Control." "Guarantee" means a guarantee of the Securities by a
Guarantor.
"Guarantor" means (1) each of Cabot Safety Intermediate
Corporation and VH Industries, Inc.; and (2) each of the Company's Restricted
Subsidiaries that in the future executes a supplemental indenture in which such
Restricted Subsidiary agrees to be bound by the terms of this Indenture as a
Guarantor; provided that any Person constituting a Guarantor as described above
shall cease to constitute a Guarantor when its respective Guarantee is released
in accordance with the terms of this Indenture.
"Guarantor Senior Indebtedness" means, with respect to any
Guarantor, the principal of, premium, if any, and interest (including any
interest accruing subsequent to the filing of a petition of bankruptcy at the
rate provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law) on any Indebtedness of, or
guaranteed by, a Guarantor, whether outstanding on the Issue Date or thereafter
created, incurred or assumed, 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 Guarantee of such Guarantor. Without
limiting the generality of the foregoing, "Guarantor Senior Indebtedness" shall
also include the principal of, premium, if any, interest (including any interest
accruing subsequent to the filing of a petition of bankruptcy at the rate
provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law) on, and all other amounts
owing in respect of:
(x) all monetary obligations of every nature of any Guarantor
under the Senior Bank Facilities, including, without limitation,
obligations to pay principal and interest, reimbursement obligations
under letters of credit, fees, expenses and indemnities (and guarantees
thereof),
(y) all Interest Swap Obligations (and guarantees thereof),
and
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(z) all obligations under Currency Agreements (and guarantees
thereof), in each case whether outstanding on the Issue Date or
thereafter incurred.
Notwithstanding the foregoing, "Guarantor Senior Indebtedness"
shall not include
(a) any Indebtedness, if the instrument creating or evidencing
the same or the assumption or guarantee thereof expressly provides that
such Indebtedness shall not be senior in right of payment to any
Indebtedness of such Guarantor,
(b) any Indebtedness of such Guarantor to a Subsidiary of such
Guarantor,
(c) Indebtedness to, or guaranteed on behalf of, any director,
officer or employee of such Guarantor or any Subsidiary of such
Guarantor (including, without limitation, amounts owed for
compensation),
(d) Indebtedness to trade creditors and other amounts incurred
in connection with obtaining goods, materials or services; provided
that Obligations Incurred pursuant to the Senior Bank Facilities shall
not be excluded from "Guarantor Senior Indebtedness" pursuant to this
clause (d);
(e) Indebtedness represented by Disqualified Capital Stock,
(f) any liability for federal, state, local or other taxes
owed or owing by such Guarantor,
(g) Indebtedness to the extent incurred in violation of
Section 4.04 (but, as to any such Indebtedness, no such violation shall
be deemed to exist for purposes of this clause (g) if the holder(s) of
such obligation or their representative shall have received an
officers' certificate of, or representation or warranty from, the
Company to the effect that the Incurrence of such Indebtedness does not
(or, in the case of revolving credit Indebtedness, that the entire
committed amount thereof at the date on which the initial borrowing
thereunder is made would not) violate Section 4.04,
(h) any Indebtedness which is, by its express terms,
subordinated in right of payment to any other Indebtedness of such
Guarantor,
(i) Indebtedness evidenced by the Guarantees,
(j) Indebtedness of such Guarantor that by operation of law is
subordinate to any general unsecured obligations of such Guarantor,
(k) Capital Stock of such Guarantor, and
(l) Indebtedness which, when Incurred and without respect to
any election under Section 1111(b) of Title 11 of the United States
Code, is without recourse to such Guarantor.
"Holder" or "Securityholder" means the Person in whose name a
Security is registered on the Registrar's books.
"Holdings" means Aearo Corporation, a Delaware corporation.
-10-
"Incur" means, with respect to any Indebtedness or other
obligation of any Person, to create, issue, incur (by conversion, exchange or
otherwise), assume, guarantee or otherwise become liable in respect of such
Indebtedness or other obligation or the recording, as required pursuant to GAAP
or otherwise, of any such Indebtedness or other obligation on the balance sheet
of such Person (and "Incurrence," "Incurred," "Incurrable" and "Incurring" shall
have meanings correlative to the foregoing); provided, however, that any
Indebtedness of a Person existing at the time such Person becomes (after the
Issue Date) a Restricted Subsidiary (whether by merger, consolidation,
acquisition or otherwise) of the Company shall be deemed to be Incurred or
issued, as the case may be, by such Restricted Subsidiary at the time it becomes
a Restricted Subsidiary of the Company.
"Indebtedness" means, with respect to any Person, without
duplication:
(a) all Obligations of such Person for borrowed money,
(b) all Obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments,
(c) all Capitalized Lease Obligations of such Person,
(d) all Obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations
and all Obligations under any title retention agreement (but excluding
trade accounts payable and accrued liabilities arising in the ordinary
course of business),
(e) all Obligations for the reimbursement of any obligor on
any letter of credit, banker's acceptance or similar credit transaction
(other than any letters of credit securing obligations entered into in
the ordinary course of business to the extent such letters of credit
are not drawn upon or, if drawn upon, such drawing is reimbursed within
five business days following receipt of a demand for reimbursement
following payment on such letters of credit),
(f) all Indebtedness of others (including all dividends of
other Persons for the payment of which is) guaranteed, directly or
indirectly, by such Person or that is otherwise its legal liability or
which such Person has agreed to purchase or repurchase or in respect of
which such Person has agreed contingently to supply or advance funds,
(g) net liabilities of such Person under Interest Swap
Obligations and Currency Agreements,
(h) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on any asset or property
(including, without limitation, leasehold interests and any other
tangible or intangible property) of such Person, whether or not such
Indebtedness is assumed by such Person or is not otherwise such
Person's legal liability; provided that if the Obligations so secured
have not been assumed by such Person or are otherwise not such Person's
legal liability, the amount of such Indebtedness for the purposes of
this definition shall be limited to the lesser of the amount of such
Indebtedness secured by such Lien and the fair market value of the
assets or property securing such Lien, and
-11-
(i) all Disqualified Capital Stock issued by such Person with
the amount of Indebtedness represented by such Disqualified Capital
Stock being equal to the greater of its voluntary or involuntary
liquidation preference and its maximum fixed repurchase price, but
excluding accrued dividends which do not increase the liquidation
preference, if any.
For purposes hereof, the "maximum fixed repurchase price" of
any Disqualified Capital Stock which does not have a fixed repurchase price
shall be calculated in accordance with the terms of such Disqualified Capital
Stock as if such Disqualified 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
Disqualified Capital Stock, such fair market value shall be determined
reasonably and in good faith by the board of directors of the Company of such
Disqualified Capital Stock. The amount of Indebtedness of any Person at any date
shall be the outstanding balance at such date of all unconditional obligations
as described above and the maximum liability reasonably expected to be Incurred
upon the occurrence of the contingency giving rise to the obligation, of any
contingent obligations at such date; provided that (a) the amount outstanding at
any time of any Indebtedness issued with original issue discount is the full
amount of such Indebtedness less the remaining unamortized portion of the
original issue discount of such Indebtedness at such time as determined in
conformity with GAAP, and (b) "Indebtedness" shall exclude deferred compensation
obligations.
"Indenture" means this Indenture, as amended or supplemented
from time to time in accordance with the terms hereof.
"Initial Notes" has the meaning set forth in Section 2.02.
"Initial Purchasers" means Deutsche Bank Securities Inc. and
Bear, Xxxxxxx & Co. Inc.
"Institutional Accredited Investor" means an institution that
is an "accredited investor" as that term is defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act.
"Interest Payment Date" means the stated maturity of an
installment of interest on the Securities.
"Interest Swap Obligations" means the obligations of any
Person under any interest rate protection agreement, interest rate future,
interest rate option, interest rate swap, interest rate cap or other interest
rate hedge or arrangement.
"Investment" by any Person means any direct or indirect
(a) loan, advance (other than advances to customers in the
ordinary course of business that are recorded as accounts receivable on
the books of such person) or other extension of credit or capital
contribution (by means of transfers of cash or other property (valued
at the fair market value thereof as of the date of transfer) to any
other Person or payments for property or services for the account or
use of any other Person, or otherwise);
(b) purchase or acquisition of Capital Stock, bonds, notes,
debentures or other securities or evidences of Indebtedness issued by
any other Person (whether by merger, consolidation, amalgamation or
otherwise and whether or not purchased directly from the Company of
such securities or evidences of Indebtedness);
-12-
(c) assumption of any Indebtedness or any other obligation of
any other Person (except for an assumption of Indebtedness for which
the assuming Person receives consideration at the time of such
assumption in the form of property or assets with a fair market value
at least equal to the principal amount of the Indebtedness assumed);
and
(d) all other items that would be classified as investments
(including, without limitation, purchases of assets outside the
ordinary course of business) on a balance sheet of such Person prepared
in accordance with GAAP.
The amount of any Investment shall not be adjusted for
increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investment.
"Issue Date" means the date of original issuance of the
Securities under this Indenture.
"Legal Holiday" has the meaning provided in Section 14.07.
"Lien" means, with respect to any Person, any mortgage,
pledge, lien, encumbrance, easement, restriction, covenant, right-of-way, charge
or adverse claim affecting title or resulting in an encumbrance against real or
personal property of such Person, or a security interest of any kind (including
any conditional sale or other title retention agreement, any lease in the nature
thereof, any option, right of first refusal or other similar agreement to sell,
in each case securing obligations of such Person, and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or equivalent
statute or statutes) of any jurisdiction other than to reflect ownership by a
third party of property leased to the referent Person or any of its Restricted
Subsidiaries under a lease that is not in the nature of a conditional sale or
title retention agreement).
"Maturity Date" means April 15, 2012.
"Net Cash Proceeds" means, in the case of any Asset Sale, the
aggregate net proceeds received in the form of cash or Cash Equivalents by the
Company or any of its Restricted Subsidiaries from such Asset Sale (except to
the extent that such assets are sold with recourse to the Company) after (i)
payment of any expenses, taxes, commissions and the like incurred in connection
with such Asset Sale and (ii) payment in full of any Indebtedness secured by the
asset or assets involved in such Asset Sale.
"Net Equity Proceeds" means (a) in the case of any sale by a
Person of Qualified Capital Stock of such Person, the aggregate net cash
proceeds received by such Person, after payment of expenses, commissions and the
like (including, without limitation, brokerage, legal, financial consulting,
accounting and investment banking fees and commissions) incurred in connection
therewith, and (b) in the case of any exchange, exercise, conversion or
surrender of any outstanding Indebtedness of the Company or any Restricted
Subsidiary for or into shares of Qualified Capital Stock of the Company, the
amount of such Indebtedness (or, if such Indebtedness was issued at an amount
less than the stated principal amount thereof, the accrued amount thereof as
determined in accordance with GAAP) as reflected in the consolidated financial
statements of the Company prepared in accordance with GAAP as of the most recent
date next preceding the date of such exchange, exercise, conversion or surrender
(plus any additional amount required to be paid by the holder of such
Indebtedness to the Company or to any Wholly-Owned Restricted Subsidiary of the
Company upon such exchange, exercise, conversion or surrender and less any and
all payments made to the holders of such Indebtedness, and all other expenses
incurred by the Company in connection therewith), in each case (a) and (b) to
the extent consummated after the Issue Date; provided that the exchange,
exercise, conversion or surrender of any Indebtedness which is subordinated
(whether pursuant to its terms or by operation of law) to the Securities shall
not be or be deemed to be included in Net Equity Proceeds.
-13-
"Non-U.S. Person" has the meaning assigned to such term in
Regulation S.
"Notes" means the 8 1/4% Senior Subordinated Notes due 2012
being issued and sold pursuant to the Purchase Agreement and this Indenture, and
the Additional Notes.
"Obligations" means all obligations for principal, premium,
interest (including any interest accruing subsequent to the filing of a petition
of bankruptcy at the rate provided for in the documentation with respect
thereto, whether or not such interest is an allowed claim under applicable law),
penalties, fees, indemnifications, reimbursements, damages and other liabilities
payable under the documentation governing any specified type of Indebtedness.
"Officer" means, with respect to any Person, the Chairman of
the Board, the Chief Executive Officer, the President, any Vice President, the
Chief Financial Officer, the Controller or the Secretary of such Person.
"Officers' Certificate" means, with respect to any Person, a
certificate signed by two Officers or by an Officer and either an Assistant
Treasurer or an Assistant Secretary of such Person and otherwise complying with
the requirements of Sections 14.04 and 14.05.
"Opinion of Counsel" means a written opinion from legal
counsel which and who are acceptable to the Trustee and which may be an employee
of the Company.
"Parent" means AC Safety Holding Corp., a Delaware
corporation.
"Parent Guarantor" shall have the meaning provided in Section
4.12.
"Parent's Subsidiaries" shall have the meaning provided in
Section 4.12.
"Paying Agent" has the meaning provided in Section 2.03.
"payment default" has the meaning set forth in Section 6.01.
"Permitted Holders" means Bear Xxxxxxx Merchant Banking
Partners II, L.P., Bear Xxxxxxx Merchant Banking Investors II, L.P., The BSC
Employee Fund V, L.P., The BSC Employee Fund VI, L.P., Bear Xxxxxxx MB-PSERS II,
L.P., Vestar Equity Partners, L.P., Vestar Capital Partners IV, L.P. and their
respective Affiliates.
"Payment Restriction" has the meaning set forth in Section
4.13.
"Permitted Indebtedness" means, without duplication, each of
the following:
(a) Indebtedness of the Company and its Restricted
Subsidiaries under the Securities issued on the Issue Date and the
Guarantees (and the exchange notes issued therefor and guarantees
thereof), including Indebtedness in respect of Obligations of the
Company to the Trustee;
(b) Indebtedness of the Company and its Restricted
Subsidiaries incurred pursuant to the Senior Bank Facilities in an
aggregate principal amount at any time outstanding not to exceed
$175,000,000, less the amount of all mandatory principal payments
actually made thereunder (which, in the case of any revolving credit
facility, are accompanied by a corresponding permanent commitment
reduction) as a result of the application of Net Cash Proceeds applied
to repayments of Indebtedness in accordance with Section 4.16;
-14-
(c) Indebtedness of the Company and its Restricted
Subsidiaries outstanding on the Issue Date;
(d) Indebtedness of the Company or any of its Restricted
Subsidiaries under Currency Agreements or Commodity Agreements;
provided, however, that such Currency Agreements or Commodity
Agreements are entered into for non-speculative purposes;
(e) Interest Swap Obligations of the Company or any of its
Restricted Subsidiaries; provided, however, that such Interest Swap
Obligations are entered into for non-speculative purposes and to the
extent the notional principal amount of such Interest Swap Obligation
does not exceed the principal amount of the Indebtedness to which such
Interest Swap Obligation relates;
(f) Purchase Money Indebtedness and Capitalized Lease
Obligations of the Company and its Restricted Subsidiaries incurred to
acquire, lease or improve property (real or personal) in the ordinary
course of business and any refinancings, renewals or replacements of
any such Purchase Money Indebtedness or Capitalized Lease Obligation
(subject to the limitations on the principal amount thereof set forth
in this clause (f)), the principal amount of which Purchase Money
Indebtedness and Capitalized Lease Obligations shall not in the
aggregate at any one time outstanding exceed the greater of $10,000,000
and 5% of the Company's Consolidated Net Tangible Assets as of the last
day of the last full fiscal quarter for which financial information is
available (which in each case may, but need not, be Incurred in whole
or in part under the Senior Bank Facilities);
(g) additional Indebtedness of the Company or any of its
Restricted Subsidiaries not to exceed $27,500,000 in aggregate
principal amount outstanding at any time (which may, but need not be,
Incurred in whole or in part under the Senior Bank Facilities);
(h) Indebtedness of a direct or indirect Restricted Subsidiary
of the Company to the Company or to a direct or indirect Restricted
Subsidiary of the Company for so long as such Indebtedness is held by
the Company or a direct or indirect Restricted Subsidiary of the
Company in each case subject to no Lien held by a Person other than the
Company or a direct or indirect Restricted Subsidiary of the Company;
provided that if as of any date any Person other than the Company or a
direct or indirect Restricted Subsidiary of the Company owns or holds
any such Indebtedness or holds a Lien in respect of such Indebtedness,
such date shall be deemed the Incurrence of Indebtedness not
constituting Permitted Indebtedness by the Company of such
Indebtedness;
(i) Indebtedness of the Company to a direct or indirect
Restricted Subsidiary of the Company for so long as such Indebtedness
is held by a direct or indirect Restricted Subsidiary of the Company in
each case subject to no Lien; provided that (a) any Indebtedness of the
Company to any direct or indirect Restricted Subsidiary of the Company
that is not a Guarantor is unsecured and subordinated, pursuant to a
written agreement, to the Company's obligations under this Indenture
and the Securities, and (b) if as of any date any Person other than a
direct or indirect Restricted Subsidiary of the Company owns or holds
any such Indebtedness or any Person holds a Lien in respect of such
Indebtedness, such date shall be deemed the Incurrence of Indebtedness
not constituting Permitted Indebtedness by the Company of such
Indebtedness;
-15-
(j) Refinancing Indebtedness;
(k) Indebtedness of any Person to the extent such Indebtedness
constitutes Acquired Indebtedness of the Company; provided that (a)
immediately after giving effect to such Person becoming a Restricted
Subsidiary of the Company or merging or consolidating with the Company
or any of its Restricted Subsidiaries (as if such existing Indebtedness
were Incurred on the first day of the Four Quarter Period) the Company
could Incur at least $1.00 of additional Indebtedness in accordance
with the Consolidated Fixed Charge Coverage Ratio test of Section
4.04(b) and (b) such Indebtedness is without recourse to the Company or
any of its Restricted Subsidiaries or to any of their respective
properties or assets other than the Person or the assets to which such
Indebtedness related prior to the time such Person becomes a Restricted
Subsidiary of the Company or merges or consolidates with the Company or
any of its Restricted Subsidiaries;
(l) Indebtedness consisting of take-or-pay obligations
contained in supply agreements entered into in the ordinary course of
business; and
(m) Indebtedness of any foreign Subsidiary in an aggregate
principal amount outstanding not to exceed $10,000,000.
"Permitted Investments" means
(a) investments in cash and Cash Equivalents;
(b) investments by the Company or by any Restricted Subsidiary
of the Company in any Person that is or will become immediately after
such Investment a direct or indirect Restricted Subsidiary of the
Company or that will merge or consolidate with the Company or a
Restricted Subsidiary of the Company; provided that for purposes of
calculating at any date the aggregate amount of Restricted Payments
made since the Issue Date under Section 4.03, such Investment shall be
a Permitted Investment (and, therefore, not a Restricted Payment) only
so long as any such Restricted Subsidiary in which the Investment has
been made meets the conditions set forth in this clause (b);
(c) any Investments in the Company by any Restricted
Subsidiary of the Company; provided that any Indebtedness evidencing
such Investment is unsecured and subordinated, pursuant to a written
agreement, to the Company's obligations in respect of the Securities
and this Indenture;
(d) investments made by the Company or by its Restricted
Subsidiaries as a result of dispositions of assets which do not
constitute Asset Sales as defined herein;
(e) payroll, travel and similar advances to employees to cover
matters that are expected at the time of such advances ultimately to be
treated as expenses for accounting purposes and that are made in the
ordinary course of business;
(f) loans or advances to employees, suppliers or customers
made in the ordinary course of business consistent with past practices
of the Company or any Restricted Subsidiary;
(g) stock, obligations or securities received in settlement of
debts created in the ordinary course of business and owing to the
Company or any Restricted Subsidiary or in satisfaction of judgments;
-16-
(h) the non-cash portion of the consideration received in an
Asset Sale;
(i) investments made on or prior to the Issue Date;
(j) Currency Agreements, Commodity Agreements and Interest
Swap Obligations entered into in the ordinary course of business and
otherwise in compliance with this Indenture;
(k) investments of a Person or any of its Subsidiaries
existing at the time such Person becomes a Restricted Subsidiary of the
Company or at the time such Person merges or consolidates with the
Company or any of its Restricted Subsidiaries, in either case in
compliance with this Indenture so long as such Investments were not
made by such Person in connection with, or in anticipation or
contemplation of, such Person becoming a Restricted Subsidiary of the
Company or such merger or consolidation;
(l) investments in the Securities;
(m) loans made on the Issue Date to the members of management
and key employees of the Company and its Subsidiaries who are acquiring
shares of Common Stock of Holdings on the Issue Date the proceeds of
which are used to purchase Common Stock of Holdings in connection with
the acquisition of Aearo Corporation in an amount not to exceed in the
aggregate $2,500,000;
(n) investments in an aggregate amount, as valued at the time
each such Investment is made, not exceeding $20,000,000 for all such
Investments from and after the Issue Date; provided, that the amount
available for Investments to be made pursuant to this clause (n) shall
be increased from time to time to the extent any return on capital is
received by the Company or a Restricted Subsidiary on any Permitted
Investment previously made in reliance on this clause (n); and
(o) investments acquired in exchange for, or out of the
proceeds of (i) a substantially concurrent contribution to the
Company's common equity capital and (ii) a substantially concurrent
offering of the Company's Qualified Capital Stock (which proceeds of
any such contribution or offering shall not have been, and shall not
be, included in clause (iii) of the first paragraph under Section
4.03).
"Permitted Junior Securities" means debt or equity securities
of the Company or any successor corporation issued pursuant to a plan or
reorganization or readjustment of the Company that are subordinated to the
payment of all then outstanding Senior Indebtedness of the Company at least to
the same extent that the Securities are subordinated to the payment of all
Senior Indebtedness of the Company on the Issue Date, so long as:
(a) the effect of the use of this defined term in the
subordination provisions contained in this Indenture is not to cause
the Securities to be treated as part of:
(i) the same class of claims as the Senior
Indebtedness of the Company; or
(ii) any class of claims pari passu with, or senior
to, the Senior Indebtedness of the Company for any payment or
distribution in any case or proceeding or similar event
relating to the liquidation, insolvency, bankruptcy,
dissolution, winding up or reorganization of the Company; and
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(b) to the extent that any Senior Indebtedness of the Company
outstanding on the date of consummation of any such plan of
reorganization or readjustment is not paid in full in cash or Cash
Equivalents (other than Cash Equivalents of the type referred to in
clauses (iv) and (v) of the definition thereof) on such date, either:
(i) the holders of any such Senior Indebtedness not
so paid in full in cash or Cash Equivalents (other than Cash
Equivalents of the type referred to in clauses (d) and (e) of
the definition thereof) have consented to the terms of such
plan of reorganization or readjustment; or
(ii) such holders receive securities which constitute
Senior Indebtedness of the Company (which are guaranteed
pursuant to guarantees constituting Senior Indebtedness of
each Guarantor) and which have been determined by the relevant
court to constitute satisfaction in full in money or money's
worth of any Senior Indebtedness of the Company (and any
related Senior Indebtedness of the Guarantors) not paid in
full in cash or Cash Equivalents (other than Cash Equivalents
of the type referred to in clauses (d) and (e) of the
definition thereof).
"Permitted Liens" means, without duplication, each of the
following:
(a) pledges or deposits by such Person under worker's
compensation laws, unemployment insurance laws or other types of social
security and similar legislation (other than the Employee Retirement
Income Security Act of 1974, as amended), or good faith deposits in
connection with bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such person is a party, or deposits to
secure public statutory obligations of such person or deposits to
secure surety or appeal bonds to which such person is a party, or
deposits as security for contested taxes or import duties or for the
payment of rent;
(b) Liens imposed by law, such as landlords', carriers',
warehousemen's and mechanics' Liens or bankers' Liens incurred in the
ordinary course of business for sums which are not yet due or are being
contested in good faith by appropriate proceedings promptly instituted
and diligently conducted and for which adequate provision has been
made;
(c) Liens for taxes not yet subject to penalties for
non-payment or which are being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted, if adequate
reserve, as may be required by generally accepted accounting
principles, shall have been made therefor;
(d) Liens in favor of issuers of surety bonds or appeal bonds
issued pursuant to the request of and for the account of such person in
the ordinary course of its business;
(e) Liens to support trade letters of credit issued in the
ordinary course of business;
(f) survey exceptions, encumbrances, easements or reservations
of, or rights of others for, rights of way, sewers, electric lines,
telegraph and telephone lines and other similar purposes, or zoning or
other restrictions on the use of real property;
(g) Liens arising from judgments, decrees or attachments in
circumstances not constituting an Event of Default;
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(h) Liens in favor of the Company;
(i) Liens with respect to Acquired Indebtedness Incurred in
accordance with Section 4.04; provided that (A) such Liens secured such
Acquired Indebtedness at the time of and prior to the Incurrence of
such Acquired Indebtedness by the Company and were not granted in
connection with, or in anticipation of, the Incurrence of such Acquired
Indebtedness by the Company and (B) such Liens do not extend to or
cover any property or assets of the Company or of any of its Restricted
Subsidiaries other than the property or assets that secured the
Acquired Indebtedness prior to the time such Indebtedness became
Acquired Indebtedness of the Company and are no more favorable to the
lienholders than those securing the Acquired Indebtedness prior to the
Incurrence of such Acquired Indebtedness by the Company;
(j) Liens to secure Purchase Money Indebtedness and
Capitalized Lease Obligations that are permitted under this Indenture;
provided that
(1) with respect to any Purchase Money Indebtedness,
any such Lien is created solely for the purpose of securing
Indebtedness representing, or incurred to finance, refinance
or refund, the cost (including sales and excise taxes,
installation and delivery charges and other direct costs of,
and other direct expenses paid or charged in connection with,
such purchase, construction or improvement) of the item of
Property that is the subject of such Purchase Money
Indebtedness or Capitalized Lease Obligation,
(2) with respect to any Purchase Money Indebtedness,
the principal amount of the Indebtedness secured by such Lien
does not exceed 100% of the fair market value (or, if less,
such costs) of the item of Property that is the subject of
such Purchase Money Indebtedness, and
(3) such Lien does not extend to or cover any
Property other than the item of Property that is the subject
of such Purchase Money Indebtedness or Capitalized Lease
Obligation, as the case may be, and any improvements on such
item;
(k) Liens on the property or assets of a Person that becomes a
Restricted Subsidiary after the Issue Date to the extent that such
Liens are existing at the time such Person became a Restricted
Subsidiary of the Company and were not granted as a result of, in
connection with or in anticipation of, such Person becoming a
Restricted Subsidiary of the Company; provided that (A) the
Indebtedness (if any) secured thereby is Incurred in accordance with
this Indenture and (B) such Liens do not extend to or cover any
property or assets of the Company or of any of its Restricted
Subsidiaries other than the property or assets so acquired;
(l) Liens to secure Capitalized Lease Obligations in respect
of Sale and Leaseback Transactions on property or assets of the Company
to the extent consummated in compliance with this Indenture; provided
that such Liens do not extend to or cover any property or assets of the
Company or of any of its Restricted Subsidiaries other than the
property or assets subject to such Capitalized Lease Obligation;
(m) Liens in respect of Refinancing Indebtedness; provided
that such Liens in respect of such Refinancing Indebtedness (A) are no
less favorable to the Holders and are not more favorable to the
lienholders with respect to such Liens than the Liens in respect of the
Indebtedness being Refinanced and (B) do not extend to or cover any
properties or assets of the Company or of any of its Restricted
Subsidiaries, other than the property or assets that secured the
Indebtedness being Refinanced;
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(n) Liens upon specific items of inventory or other goods and
proceeds of any Person securing such Person's obligations in respect of
bankers' acceptances issued or created for the account of such Person
to facilitate the purchase, shipment, or storage of such inventory or
other goods;
(o) Liens securing reimbursement obligations with respect to
commercial letters of credit which encumber documents and other
property relating to such letters of credit and products and proceeds
thereof;
(p) Liens encumbering deposits made to secure obligations
arising from statutory, regulatory, contractual, or warranty
requirements of the Company, including rights of offset and set-off;
(q) Liens securing Interest Swap Obligations which Interest
Swap Obligations relate to Indebtedness that is otherwise permitted
under this Indenture;
(r) Liens securing Indebtedness under Currency Agreements; and
(s) Liens securing any Senior Indebtedness, including
Indebtedness under the Senior Bank Facilities.
"Permitted Transferees" means, with respect to any Person, (i)
any Affiliate of such Person, (ii) the heirs, executors, administrators,
testamentary trustees, legatees or beneficiaries of any such Person, (iii) a
trust, the beneficiaries of which, or a corporation or partnership, the
stockholders or general or limited partners of which, include only such Person
or his or her spouse or lineal descendants, in each case to whom such Person has
transferred the beneficial ownership of any securities of the Company, (iv) any
investment account whose investment managers and investment advisors consist
solely of such Person and/or Permitted Transferees of such Person and (v) any
investment fund or investment entity that is a subsidiary of such Person or a
Permitted Transferee of such Person.
"Person" means any individual, partnership, corporation,
limited liability company, unincorporated organization, trust or joint venture,
or governmental agency or political subdivision thereof.
"Physical Securities" has the meaning set forth in Section
2.01.
"Preferred Stock" of any Person means any Capital Stock of
such Person that has preferential rights to any other Capital Stock of such
Person with respect to dividends or distributions or redemptions or upon
liquidation.
"Private Exchange Notes" has the meaning set forth in the
Registration Rights Agreement.
"Purchase Money Indebtedness" means any Indebtedness incurred
by a Person to finance, within 270 days from incurrence, the cost, including the
cost of construction, of an item of Property acquired or improved in the
ordinary course of business, the principal amount of which Indebtedness does not
exceed the sum of
-20-
(a) 100% of such cost; and
(b) reasonable fees and expenses of such Person incurred in
connection therewith.
"principal" of any Indebtedness (including the Securities)
means the principal amount of such Indebtedness plus the premium, if any, on
such Indebtedness.
"Private Placement Legend" means the legends initially set
forth on the Notes in the form set forth in Exhibit B.
"pro forma" means, with respect to any calculation made or
required to be made pursuant to the terms of this Indenture, a calculation in
accordance with Article 11 of Regulation S-X under the Securities Act as
interpreted by the Company's Board of Directors in consultation with its
independent certified public accountants.
"Purchase Agreement" means the purchase agreement dated as of
April 1, 2004 by and among the Company, the Guarantors and the Initial
Purchasers of the Notes.
"Qualified Capital Stock" means any Capital Stock that is not
Disqualified Capital Stock.
"Qualified Institutional Buyer" or "QIB" has the meaning
specified in Rule 144A under the Securities Act.
"Record Date" means the Record Dates specified in the
Securities; provided that if any such date is a Legal Holiday, the Record Date
shall be the first day immediately preceding such specified day that is not a
Legal Holiday.
"Redemption Date," when used with respect to any Security to
be redeemed, means the date fixed for such redemption pursuant to this Indenture
and Paragraphs 6 through 8 in the form of Security annexed hereto as Exhibit A.
"Redemption Price," when used with respect to any Security to
be redeemed, means the price fixed for such redemption pursuant to this
Indenture and Paragraphs 6 through 8 in the form of Security annexed hereto as
Exhibit A.
"Refinance" means, in respect of any security or Indebtedness,
to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire,
or to issue a security or Indebtedness in exchange or replacement for, such
security or Indebtedness in whole or in part. "Refinanced" and "Refinancing"
shall have correlative meanings.
"Refinancing Indebtedness" means (A) any Refinancing by the
Company or any Restricted Subsidiary of the Company of Indebtedness initially
Incurred in accordance with the Consolidated Fixed Charge Coverage Ratio test of
Section 4.04(b) or pursuant to clauses (a), (c), (j) or (k) of the definition of
Permitted Indebtedness or (B) any Refinancing by any Restricted Subsidiary of
the Company of Indebtedness Incurred by such Restricted Subsidiary in accordance
with clause (k) of the definition of Permitted Indebtedness, in each case (A)
and (B) that does not:
(a) result in an increase in the aggregate principal amount of
Indebtedness of such Person as of the date of such proposed Refinancing
(plus the amount of any premium required to be paid under the terms of
the instrument governing such Indebtedness and plus the amount of
reasonable expenses incurred by the Company in connection with such
Refinancing) or
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(b) create Indebtedness with (A) a Weighted Average Life to
Maturity that is less than the Weighted Average Life to Maturity of the
Indebtedness being Refinanced or (B) a final maturity earlier than the
final maturity of the Indebtedness being Refinanced; provided that (x)
if such Indebtedness being Refinanced is Indebtedness of the Company,
then such Refinancing Indebtedness shall be Indebtedness solely of the
Company, (y) if such Indebtedness being Refinanced is subordinate or
junior to the Securities or any Guarantee, then such Refinancing
Indebtedness shall be subordinate to the Securities or such Guarantee,
as the case may be, at least to the same extent and in the same manner
as the Indebtedness being Refinanced and (z) such Refinancing
Indebtedness is not Incurred more than three months prior to the
complete retirement and defeasance of the Indebtedness being Refinanced
with the proceeds thereof.
"Registered Exchange Offer" means the offer to exchange the
Exchange Notes for all of the outstanding Notes in accordance with the
Registration Rights Agreement.
"Registrar" has the meaning set forth in Section 2.03.
"Registration Rights Agreement" means the Registration Rights
Agreement by and between the Company, Guarantors and the Initial Purchasers,
relating to the Securities and dated as of the Issue Date, as the same may be
amended, supplemented or modified from time to time in accordance with the terms
thereof.
"Regulation S" means Regulation S under the Securities Act.
"Related Business Investment" means any Investment, capital
expenditure or other expenditure by the Company or any of its Restricted
Subsidiaries which is the same, similar ancillary, complementary or related to
the business of the Company and its Restricted Subsidiaries as it is conducted
on the date, of the Asset Sale giving rise to the Net Cash Proceeds to be
reinvested.
"Released Trust Moneys" has the meaning set forth in Section
10.03.
"Representative" means the indenture trustee or other trustee,
agent or representative in respect of any Designated Senior Indebtedness;
provided that if, and for so long as, any Designated Senior Indebtedness lacks
such a representative, then the Representative for such Designated Senior
Indebtedness shall at all times constitute the holders of a majority in
outstanding principal amount of such Designated Senior Indebtedness in respect
of any Designated Senior Indebtedness.
"Restricted Subsidiary" of any Person means any Subsidiary of
such Person which at the time of determination is not an Unrestricted
Subsidiary.
"Restricted Payment" has the meaning provided in Section 4.03.
"Restricted Security" has the meaning set forth in Rule
144(a)(3) under the Securities Act; provided that the Trustee shall be entitled
to request and conclusively rely upon an Opinion of Counsel with respect to
whether any Security is a Restricted Security.
"Revolving Credit Facility" means collectively (i) the
revolving credit facility under the Senior Bank Facilities and (ii) any one or
more other revolving credit or letter of credit facilities of the Company and
its Subsidiaries under which the amount available to be drawn or extended is
made available for working capital purposes.
-22-
"Rule 144A" means Rule 144A under the Securities Act.
"S&P" has the meaning set forth in the definition of "Cash
Equivalents."
"Sale and Leaseback Transaction" means any direct or indirect
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of the Company of any
property, whether owned by the Company or any Restricted Subsidiary of the
Company at the Issue Date or later acquired, which has been or is to be sold or
transferred by the Company or such Restricted Subsidiary to such Person or to
any other Person from whom funds have been or are to be advanced by such Person
on the security of such property.
"SEC" means the Securities and Exchange Commission.
"Securities" means the Notes, Additional Notes, the Exchange
Notes and the Private Exchange Notes, as amended or supplemented from time to
time in accordance with the terms hereof that are issued pursuant to this
Indenture.
"Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations of the SEC promulgated thereunder.
"Senior Bank Facilities" means the Credit Agreement dated as
of the Issue Date among the Company as borrower, the lenders party thereto from
time to time, the arrangers listed therein, Deutsche Bank Trust Company
Americas, as administrative agent, Bear Xxxxxxx Corporate Lending, as
syndication agent, National City Bank of Indiana, as co-documentation agent, and
Xxxxx Fargo Bank, N.A., as co-documentation agent, together with the related
documents thereto (including, without limitation, any guarantee agreements and
security documents), in each case as such agreements may be amended (including
any amendment and restatement thereof), supplemented or otherwise modified from
time to time, including any agreement extending the maturity of, refinancing,
replacing or otherwise restructuring all or any portion of the Indebtedness
under such agreement (including increasing the amount of available borrowings
thereunder) or adding additional borrowers thereunder or any successor or
replacement agreement and whether by the same or any other agent, lender or
group of lenders.
"Senior Indebtedness" means (i) the principal of, premium, if
any, and interest (including any interest accruing subsequent to the filing of a
petition of bankruptcy at the rate provided for in the documentation with
respect thereto, whether or not such interest is an allowed claim under
applicable law) on any Indebtedness of the Company, whether outstanding on the
Issue Date or thereafter created, incurred or assumed, 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. Without
limiting the generality of the foregoing, "Senior Indebtedness" shall also
include the principal of, premium, if any, interest (including any interest
accruing subsequent to the filing of a petition of bankruptcy at the rate
provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law) on, and all other amounts
owing in respect of:
(x) all monetary obligations of every nature of the Company
under the Senior Bank Facilities, including, without limitation,
obligations to pay principal and interest, reimbursement obligations
under letters of credit, fees, expenses and indemnities (and guarantees
thereof),
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(y) all Interest Swap Obligations (and guarantees thereof),
and
(z) all obligations under Currency Agreements (and guarantees
thereof), in each case whether outstanding on the Issue Date or
thereafter incurred.
Notwithstanding the foregoing, Senior Indebtedness shall not
include:
(a) any Indebtedness, if the instrument creating or evidencing
the same or the assumption or guarantee thereof expressly provides that
such Indebtedness shall not be senior in right of payment to the
Securities,
(b) any Indebtedness of the Company to a Subsidiary of the
Company,
(c) Indebtedness to, or guaranteed on behalf of, any director,
officer or employee of the Company or any Subsidiary (including,
without limitation, amounts owed for compensation),
(d) Indebtedness to trade creditors and other amounts incurred
in connection with obtaining goods, materials or services; provided
that Obligations Incurred pursuant to the Senior Bank Facilities shall
not be excluded from "Senior Indebtedness" pursuant to this clause (d);
(e) Indebtedness represented by Disqualified Capital Stock,
(f) any liability for federal, state, local or other taxes
owed or owing by the Company,
(g) Indebtedness to the extent incurred in violation of this
Indenture provisions set forth under Section 4.04 (but, as to any such
Indebtedness, no such violation shall be deemed to exist for purposes
of this clause (vii) if the holder(s) of such obligation or their
representative shall have received an officers' certificate of, or
representation or warranty from, the Company to the effect that the
Incurrence of such Indebtedness does not (or, in the case of revolving
credit Indebtedness, that the entire committed amount thereof at the
date on which the initial borrowing thereunder is made would not)
violate such provisions of this Indenture,
(h) any Indebtedness which is, by its express terms,
subordinated in right of payment to any other Indebtedness of the
Company,
(i) Indebtedness evidenced by the Securities,
(j) Indebtedness of the Company that by operation of law is
subordinate to any general unsecured obligations of the Company,
(k) Capital Stock of the Company, and
(l) Indebtedness which, when Incurred and without respect to
any election under Section 1111(b) of Title 11 of the United States
Code, is without recourse to the Company.
"Significant Subsidiary" means each subsidiary of the Company
that is a "significant subsidiary" as defined in Rule 1-02(w) of Regulation S-X
under the Exchange Act.
"Subsidiary", with respect to any Person, means:
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(a) any corporation of which the outstanding Capital Stock
having at least a majority of the votes entitled to be cast in the
election of directors under ordinary circumstances shall at the time be
owned, directly or indirectly, by such Person or
(b) any other Person of which at least a majority of the
voting interest under ordinary circumstances is at the time, directly
or indirectly, owned by such Person.
"TIA" means the Trust Indenture Act of 1939 (15 U.S.C. xx.xx.
77aaa-77bbbb), as amended, as in effect on the date of the execution of this
Indenture until such time as this Indenture is qualified under the TIA, and
thereafter as in effect on the date on which this Indenture is qualified under
the TIA, except as otherwise provided in Section 9.03.
"Transaction Date" has the meaning set forth in the definition
of "Consolidated Fixed Charge Coverage Ratio."
"Trigger Date" has the meaning set forth in Section 4.16.
"Trust Officer" means any officer within the corporate trust
administration department (or any successor group of the Trustee), including any
vice president, assistant vice president, assistant secretary or any other
officer or assistant officer of the Trustee customarily performing functions
similar to those performed by the persons who at that time shall be such
officers, and also means, with respect to a particular corporate trust matter,
any other officer to whom such trust matter is referred because of his or her
knowledge of and familiarity with the particular subject.
"Trust Moneys" has the meaning set forth in Section 10.01.
"Trustee" means the party named as such in this Indenture
until a successor replaces it in accordance with the provisions of this
Indenture and thereafter means such successor.
"Unrestricted Subsidiary" of any Person means:
(a) any Subsidiary of such Person that at the time of
determination shall be or continue to be designated an Unrestricted
Subsidiary by the Board of Directors of such Person in the manner
provided below; and
(b) any Subsidiary of an Unrestricted Subsidiary.
The Board of Directors may designate any Subsidiary (including
any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary
unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on
any property of, the Company or any other Subsidiary of the Company that is not
a Subsidiary of the Subsidiary to be so designated; provided that:
(a) the Company certifies to the Trustee that such designation
complies with Section 4.03 and
(b) each Subsidiary to be so designated and each of its
Subsidiaries has not at the time of designation, and does not
thereafter, create, incur, issue, assume, guarantee or otherwise become
directly or indirectly liable with respect to any Indebtedness pursuant
to which the lender has recourse to any of the assets of the Company or
any of its Restricted Subsidiaries.
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For purposes of making the determination of whether any such
designation of a Subsidiary as an Unrestricted Subsidiary complies with
Section 4.03, the portion of the fair market value of the net assets of
such Subsidiary of the Company at the time that such Subsidiary is
designated as an Unrestricted Subsidiary that is represented by the
interest of the Company and its Restricted Subsidiaries in such
Subsidiary, in each case as determined in good faith by the Board of
Directors of the Company, shall be deemed to be an Investment. Such
designation will be permitted only if such Investment would be
permitted at such time under Section 4.03.
The Board of Directors may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary only if:
(a) immediately after giving effect to such designation, the
Company is able to incur at least $1.00 of additional Indebtedness
(other than Permitted Indebtedness) in compliance with Section 4.04,
and
(b) immediately after giving effect to such designation, no
Default or Event of Default shall have occurred and be continuing.
Any such designation by the Board of Directors shall be
evidenced to the Trustee by promptly filing with the Trustee a copy of the Board
Resolution giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the foregoing provisions.
"U.S. Government Obligations" has the meaning provided in
Section 8.01(d).
"U.S. Legal Tender" means such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts.
"Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years (calculated to the nearest
one-twelfth) obtained by dividing (a) the then outstanding aggregate principal
amount of such Indebtedness into (b) the total of the product obtained by
multiplying (i) the amount of each then remaining installment, sinking fund,
serial maturity or other required payment of principal, including payment at
final maturity, in respect thereof, by (ii) the number of years (calculated to
the nearest one-twelfth) which will elapse between such date and the making of
such payment.
"Wholly-Owned Restricted Subsidiary" of any Person means any
Wholly-Owned Subsidiary of such Person which at the time of determination is a
Restricted Subsidiary of such Person.
"Wholly-Owned Subsidiary" of any Person means any Subsidiary
of such Person of which all the outstanding voting securities (other than any
directors' qualifying shares or an immaterial amount of shares required to be
owned by other Persons pursuant to applicable law) which normally have the right
to vote in the election of directors are at the time owned directly or
indirectly by such Person or any wholly-owned Subsidiary of such Person.
SECTION 1.02. Incorporation by Reference of TIA.
Whenever this Indenture refers to a provision of the TIA, such
provision is incorporated by reference in, and made a part of, this Indenture.
The following TIA terms used in this Indenture have the following meanings:
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"Commission" means the SEC.
"indenture securities" means the Securities.
"indenture security holder" means a Holder or a
Securityholder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the
Trustee.
"obligor" on the indenture securities means the Company or any
other obligor on the Securities.
All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by SEC rule and
not otherwise defined herein have the meanings assigned to them therein.
SECTION 1.03. Rules of Construction.
Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
(3) "or" is not exclusive;
(4) words in the singular include the plural, and words in the
plural include the singular;
(5) provisions apply to successive events and transactions;
and
(6) "herein," "hereof" and other words of similar import refer
to this Indenture as a whole and not to any particular Article, Section
or other subdivision.
ARTICLE TWO
THE SECURITIES
SECTION 2.01. Form and Dating.
The Securities and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A. The Securities may have
notations, legends or endorsements required by law, stock exchange rule or
usage. The Company shall approve the form of the Securities and any notation,
legend or endorsement on them. Each Security shall be dated the date of its
issuance and show the date of its authentication. Each Security shall have an
executed Guarantee from each of the Guarantors existing on the Issue Date
endorsed thereon.
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The terms and provisions contained in the Securities and the
Guarantees shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Company, the Guarantors and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.
Notes offered and sold in reliance on Rule 144A shall be
issued initially in the form of a single permanent global Note in registered
form, substantially in the form set forth in Exhibit A (the "144A Global Note"),
deposited with the Trustee, as custodian for the Depository, duly executed by
the Company (and having an executed Guarantee from each of the Guarantors
endorsed thereon) and authenticated by the Trustee as hereinafter provided and
shall bear the legends set forth in Exhibit B.
Notes offered and sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of a single temporary global
Note in registered form, substantially in the form of Exhibit A (the "Temporary
Regulation S Global Note"), deposited with the Trustee, as custodian for the
Depository, duly executed by the Company (and having an executed Guarantee from
each of the Guarantors endorsed thereon) and authenticated by the Trustee as
hereinafter provided and shall bear the legends set forth in Exhibit B.
Reasonably promptly following the date that is 40 days after the later of the
commencement of the offering of the Notes in reliance on Regulation S and the
Issue Date, upon receipt by the Trustee and the Company of a duly executed
certificate certifying that the Holder of the beneficial interest in the
Temporary Regulation S Global Note is a Non-U.S. Person, substantially in the
form of Exhibit E from the Depository, a single permanent global Note in
registered form substantially in the form of Exhibit A (the "Permanent
Regulation S Global Note," and together with the Temporary Regulation S Global
Note, the "Regulation S Global Note") duly executed by the Company (and having
an executed Guarantee from each of the Guarantors endorsed thereon) and
authenticated by the Trustee as hereinafter provided shall be deposited with the
Trustee, as custodian for the Depository, and the Registrar shall reflect on its
books and records the cancellation of the Temporary Regulation S Global Note and
the issuance of the Permanent Regulation S Global Note.
The initial offer and resale of the Notes shall not be to an
Institutional Accredited Investor. The Notes resold to Institutional Accredited
Investors in connection with the first transfer made pursuant to Section 2.06(a)
shall be issued initially in the form of a single permanent global Security in
registered form, substantially in the form set forth in Exhibit A (the "IAI
Global Note," and, together with the 144A Global Note and the Regulation S
Global Note, the "Initial Global Notes"), deposited with the Trustee, as
custodian for the Depository, duly executed by the Company (and having an
executed Guarantee from each of the Guarantors endorsed thereon) and
authenticated by the Trustee as hereinafter provided and shall bear the legend
set forth in Exhibit B.
Securities issued after the Issue Date shall be issued
initially in the form of one or more global Securities in registered form,
substantially in the form set forth in Exhibit A, deposited with the Trustee, as
custodian for the Depository, duly executed by the Company (and having an
executed Guarantee from each of the Guarantors endorsed thereon) and
authenticated by the Trustee as hereinafter provided and shall bear any legends
required by applicable law (together with the Initial Global Notes, the "Global
Security").
The aggregate principal amount of the Global Securities may
from time to time be increased or decreased by adjustments made on the records
of the Trustee, as custodian for the Depository, as hereinafter provided.
Securities issued in exchange for interests in a Global Security pursuant to
Section 2.16 may be issued in the form of permanent certificated Securities in
registered form in substantially the form set forth in Exhibit A and bearing the
applicable legends, if any, (the "Physical Securities").
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SECTION 2.02. Execution and Authentication.
One Officer of the Company (who shall have been duly
authorized by all requisite corporate actions) shall sign the Securities for
such Company by manual or facsimile signature. One Officer of a Guarantor (who
shall have been duly authorized by all requisite corporate actions) shall sign
the Guarantee for such Guarantor by manual or facsimile signature.
If an Officer whose signature is on a Security or Guarantee,
as the case may be, was an Officer at the time of such execution but no longer
holds that office at the time the Trustee authenticates the Security or
Guarantee, as the case may be, the Security or Guarantee, as the case may be,
shall nevertheless be valid.
A Security (and the Guarantees in respect thereof) shall not
be valid until an authorized signatory of the Trustee manually signs the
certificate of authentication on the Security. The signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.
The Trustee shall authenticate (i) Initial Notes for original
issue in an amount not to exceed $175,000,000 (the "Initial Notes"), (ii)
additional Notes (the "Additional Notes") in an unlimited amount (so long as not
otherwise prohibited by the terms of this Indenture, including, without
limitation, Section 4.04) and (iii) Exchange Notes or Private Exchange Notes (x)
in exchange for a like principal amount of Initial Notes or (y) in exchange for
a like principal amount of Additional Notes in each case upon a Company Order.
Each such Company Order shall specify the amount of Securities to be
authenticated and the date on which the Securities are to be authenticated,
whether the Securities are to be Initial Notes, Exchange Notes, Private Exchange
Notes or Additional Notes and whether the Securities are to be issued as
certificated Securities or Global Securities or such other information as the
Trustee may reasonably request. In addition, with respect to authentication
pursuant to clause (ii) or (iii) of the first sentence of this paragraph, the
first such Company Order from the Company shall be accompanied by an Opinion of
Counsel of the Company in a form reasonably satisfactory to the Trustee.
All Securities issued under this Indenture shall be treated as
a single class for all purposes under this Indenture. The Additional Notes and
the Private Exchange Notes shall bear any legend required by applicable law.
The Trustee may appoint an authenticating agent reasonably
acceptable to the Company to authenticate Securities. Unless otherwise provided
in the appointment, an authenticating agent may authenticate Securities whenever
the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with the Company and Affiliates of the Company.
The Trustee shall have the right to decline to authenticate and deliver any
Securities under this Indenture if the Trustee, being advised by counsel,
determines that such action may not lawfully be taken or if the Trustee in good
faith shall determine that such action would expose the Trustee to personal
liability.
The Securities shall be issuable only in registered form
without coupons in denominations of $1,000 and integral multiples thereof.
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SECTION 2.03. Registrar and Paying Agent.
The Company shall maintain or cause to be maintained an office
or agency in the Borough of Manhattan, The City of New York, where (a)
Securities may be presented or surrendered for registration of transfer or for
exchange ("Registrar"), (b) Securities may, subject to Paragraph 2 of the
Securities, be presented or surrendered for payment ("Paying Agent") and (c)
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. The Company may also from time to time designate one or
more other offices or agencies where the Securities may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall in
any manner relieve the Company of its obligation to maintain or cause to be
maintained an office or agency in the Borough of Manhattan, The City of New
York, for such purposes. The Company, and of its Subsidiaries or Holdings may
act as Registrar or Paying Agent, except that for the purposes of Articles Three
and Eight and Sections 4.15 and 4.16, neither the Company nor any Affiliate of
the Company shall act as Paying Agent. The Registrar shall keep a register of
the Securities and of their transfer and exchange. The Company, upon notice to
the Trustee, may have one or more co-registrars and one or more additional
paying agents reasonably acceptable to the Trustee. The term "Registrar"
includes any co-registrar and the term "Paying Agent" includes any additional
paying agent. The Company initially appoints the Trustee as Registrar and Paying
Agent until such time as the Trustee has resigned or a successor has been
appointed and the Trustee hereby agrees to so initially act.
The Company shall enter into an appropriate agency agreement
with any Agent not a party to this Indenture, which agreement shall implement
the provisions of this Indenture that relate to such Agent. The Company shall
notify the Trustee, in advance, of the name and address of any such Agent. If
the Company fails to maintain a Registrar or Paying Agent, the Trustee shall act
as such.
SECTION 2.04. Paying Agent To Hold Assets in Trust.
The Company shall require each Paying Agent other than the
Trustee to agree in writing that each Paying Agent shall hold in trust for the
benefit of Holders or the Trustee all assets held by the Paying Agent for the
payment of principal of, or interest on, the Securities, and shall notify the
Trustee of any Default by the Company in making any such payment. The Company at
any time may require a Paying Agent to distribute all assets held by it to the
Trustee and account for any assets disbursed and the Trustee may at any time
during the continuance of any payment Default, upon written request to a Paying
Agent, require such Paying Agent to distribute all assets held by it to the
Trustee and to account for any assets distributed. Upon distribution to the
Trustee of all assets that shall have been delivered by the Company to the
Paying Agent, the Paying Agent shall have no further liability for such assets.
SECTION 2.05. Securityholder List.
The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Holders. If the Trustee is not the Registrar, the Company shall
furnish to the Trustee before each Record Date and at such other times as the
Trustee may request in writing a list as of such date and in such form as the
Trustee may reasonably require of the names and addresses of Holders, which list
may be conclusively relied upon by the Trustee.
SECTION 2.06. Transfer and Exchange.
Subject to Sections 2.15 and 2.16, when Securities are
presented to the Registrar with a request to register the transfer of such
Securities or to exchange such Securities for an equal principal amount of
Securities of other authorized denominations, the Registrar shall register the
transfer or make the exchange as requested if its requirements for such
transaction are met; provided, however, that the Securities surrendered for
transfer or exchange shall be duly endorsed or accompanied by a written
instrument of transfer in form satisfactory to the Company and the Registrar,
duly executed by the Holder thereof or his or her attorney duly authorized in
writing. To permit registrations of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Securities at the Registrar's
request. No service charge shall be made for any registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith.
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Without the prior written consent of the Company, the
Registrar shall not be required to register the transfer of or exchange of any
Security (i) during a period beginning at the opening of business 15 days before
the mailing of a notice of redemption of Securities and ending at the close of
business on the day of such mailing, (ii) selected for redemption in whole or in
part pursuant to Article Three, except the unredeemed portion of any Security
being redeemed in part, and (iii) beginning at the opening of business on any
Record Date and ending on the close of business on the related Interest Payment
Date.
Any Holder of a beneficial interest in a Global Security
shall, by acceptance of such beneficial interest, agree that transfers of
beneficial interests in such Global Securities may be effected only through a
book-entry system maintained by the Holder of such Global Security (or its
agent) in accordance with the applicable legends thereon, and that ownership of
a beneficial interest in the Global Security shall be required to be reflected
in a book-entry system.
SECTION 2.07. Replacement Securities.
If a mutilated Security is surrendered to the Trustee or if
the Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate
upon receipt of a written order of the Company in the form of an Officers'
Certificate, a replacement Security if the Trustee's requirements are met. If
required by the Trustee or the Company, such Holder must provide an indemnity
bond or other indemnity, sufficient in the judgment of both the Company and the
Trustee, to protect the Company, the Trustee and any Agent from any loss which
any of them may suffer if a Security is replaced. The Company may charge such
Holder for its reasonable, out-of-pocket expenses in replacing a Security,
including reasonable fees and expenses of counsel.
Every replacement Security is an additional obligation of the
Company.
SECTION 2.08. Outstanding Securities.
Securities outstanding at any time are all the Securities that
have been authenticated by the Trustee except those cancelled by it, those
delivered to it for cancellation and those described in this Section as not
outstanding. Subject to Section 2.09, a Security does not cease to be
outstanding because the Company, Holdings or any of their respective Affiliates
holds the Security.
If a Security is replaced pursuant to Section 2.07 (other than
a mutilated Security surrendered for replacement), it ceases to be outstanding
unless the Trustee receives proof satisfactory to it that the replaced Security
is held by a bona fide purchaser. A mutilated Security ceases to be outstanding
upon surrender of such Security and replacement thereof pursuant to Section
2.07.
If on a Redemption Date or the Maturity Date the Paying Agent
holds U.S. Legal Tender or U.S. Government Obligations sufficient to pay all of
the principal and interest due on the Securities payable on that date, then on
and after that date such Securities cease to be outstanding and interest on them
ceases to accrue.
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SECTION 2.09. Treasury Securities.
In determining whether the Holders of the required principal
amount of Securities have concurred in any direction, waiver or consent,
Securities owned by the Company, Holdings or any of their respective Affiliates
shall be disregarded, except that, for the purposes of determining whether the
Trustee shall be protected in relying on any such direction, waiver or consent,
only Securities that the Trustee knows are so owned shall be disregarded.
The Trustee may require an Officers' Certificate listing
Securities owned by the Company, a Subsidiary of the Company or an Affiliate of
the Company.
SECTION 2.10. Temporary Securities.
Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities upon
receipt of a written order of the Company in the form of an Officers'
Certificate. The Officers' Certificate shall specify the amount of temporary
Securities to be authenticated and the date on which the temporary Securities
are to be authenticated. Temporary Securities shall be substantially in the form
of definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate upon receipt of a written order
of the Company pursuant to Section 2.02 definitive Securities in exchange for
temporary Securities.
SECTION 2.11. Cancellation.
The Company at any time may deliver Securities to the Trustee
for cancellation. The Registrar and the Paying Agent shall forward to the
Trustee any Securities surrendered to them for transfer, exchange or payment.
The Trustee, or at the direction of the Trustee, the Registrar or the Paying
Agent, and no one else, shall cancel and, at the written direction of the
Company, shall dispose of (subject to the record retention requirements of the
Exchange Act) all Securities surrendered for transfer, exchange, payment or
cancellation. Subject to Section 2.07, the Company may not issue new Securities
to replace Securities that it has paid or delivered to the Trustee for
cancellation. If the Company or Holdings shall acquire any of the Securities,
such acquisition shall not operate as a redemption or satisfaction of the
Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.11.
SECTION 2.12. Defaulted Interest.
If the Company defaults in a payment of interest on the
Securities, it shall pay the defaulted interest, plus (to the extent lawful) any
interest payable on the defaulted interest, to the persons who are Holders on a
subsequent special record date, which date shall be the fifteenth day next
preceding the date fixed by the Company for the payment of defaulted interest or
the next succeeding Business Day if such date is not a Business Day. At least 15
days before the subsequent special record date, the Company shall mail to each
Holder, with a copy to the Trustee, a notice that states the subsequent special
record date, the payment date and the amount of defaulted interest, and interest
payable on such defaulted interest, if any, to be paid.
SECTION 2.13. CUSIP and ISIN Numbers.
The Company in issuing the Securities may use "CUSIP" or
"ISIN" numbers, and if so, the Trustee shall use the "CUSIP" or "ISIN" numbers
in notices of redemption or exchange as a convenience to Holders; provided,
however, that any such notice may state that no representation is made as to the
correctness or accuracy of the "CUSIP" or "ISIN" numbers printed in the notice
or on the Securities, and that reliance may be placed only on the other
identification numbers printed on the Securities. The Company will promptly
notify the Trustee of any change in the "CUSIP" or "ISIN" numbers.
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SECTION 2.14. Deposit of Moneys.
Prior to 11:00 a.m. New York City time on each Interest
Payment Date and Maturity Date, the Company shall have deposited with the Paying
Agent in immediately available funds money sufficient to make cash payments, if
any, due on such Interest Payment Date or Maturity Date, as the case may be, in
a timely manner which permits the Paying Agent to remit payment to the Holders
on such Interest Payment Date or Maturity Date, as the case may be.
SECTION 2.15. Book-Entry Provisions for Global Securities.
(a) The Global Securities initially shall (i) be registered in
the name of the Depository or the nominee of such Depository, (ii) be delivered
to the Trustee as custodian for such Depository and (iii) bear legends as set
forth in Exhibit B, as applicable.
Members of, or participants in, the Depository
("Participants") shall have no rights under this Indenture with respect to any
Global Security held on their behalf by the Depository, or the Trustee as its
custodian, or under the Global Security, and the Depository may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of the Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, 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 Depository
or impair, as between the Depository and Participants, the operation of
customary practices governing the exercise of the rights of a Holder of any
Note.
(b) Transfers of Global Securities shall be limited to
transfers in whole, but not in part, to the Depository, its successors or their
respective nominees. Interests of beneficial owners in the Global Securities may
be transferred or exchanged for Physical Securities in accordance with the rules
and procedures of the Depository and the provisions of Section 2.16. In
addition, Physical Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in Global Securities if (i) the
Depository notifies the Company that it is unwilling or unable to act as
Depository for any Global Security, the Company so notifies the Trustee in
writing and a successor Depository is not appointed by the Company within 90
days of such notice, (ii) the Company, at its option, notifies the Trustee in
writing that it elects to cause the issuance of the Securities in the form of
Physical Securities under this Indenture, or (iii) a Default or Event of Default
has occurred and is continuing and the Registrar has received a written request
from the Depository or the Trustee to issue Physical Securities. Upon any
issuance of a Physical Note in accordance with this Section 2.15(b) the Trustee
is required to register such Physical Note in the name of, and cause the same to
be delivered to, such person or persons (or the nominee of any thereof). All
such Physical Securities shall bear the applicable legends, if any.
(c) In connection with any transfer or exchange of a portion
of the beneficial interest in a Global Security to beneficial owners pursuant to
paragraph (b) of this Section 2.15, the Registrar shall (if one or more Physical
Securities are to be issued) reflect on its books and records the date and a
decrease in the principal amount of such Global Security in an amount equal to
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 Physical Securities of authorized denominations in an
aggregate principal amount equal to the principal amount of the beneficial
interest in the Global Security so transferred.
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(d) In connection with the transfer of a Global Security as an
entirety to beneficial owners pursuant to paragraph (b) of this Section 2.15,
such Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and (i) the Company shall execute, (ii) the Guarantors shall
execute notations of Guarantees on and (iii) the Trustee shall upon written
instructions from the Company authenticate and deliver, to each beneficial owner
identified by the Depository in exchange for its beneficial interest in such
Global Security, an equal aggregate principal amount of Physical Securities of
authorized denominations.
(e) Any Physical Security constituting a Restricted Security
delivered in exchange for an interest in a Global Security pursuant to paragraph
(b) or (c) of this Section 2.15 shall, except as otherwise provided by Section
2.16, bear the Private Placement Legend.
(f) The Holder of any Global Security may grant proxies and
otherwise authorize any Person, including Participants and Persons that may hold
interests through Participants, to take any action which a Holder is entitled to
take under this Indenture or the Securities.
SECTION 2.16. Special Transfer Provisions.
(a) Transfers to Non-QIB Institutional Accredited Investors.
The following provisions shall apply with respect to the registration
of any proposed transfer of a Restricted Security to any Institutional
Accredited Investor which is not a QIB:
(i) the Registrar shall register the transfer of any
Restricted Security, whether or not such Security bears the
Private Placement Legend, if (x) the requested transfer is
after the second anniversary of the Issue Date; provided,
however, that neither the Company nor any Affiliate of the
Company has held any beneficial interest in such Security, or
portion thereof, at any time on or prior to the second
anniversary of the Issue Date or (y) the proposed transferee
has delivered to the Registrar a certificate substantially in
the form of Exhibit C and any legal opinions and
certifications as may be reasonably requested by the Trustee
and the Company;
(ii) if the proposed transferee is a Participant and
the Securities to be transferred consist of Physical
Securities which after transfer are to be evidenced by an
interest in the IAI Global Note, upon receipt by the Registrar
of the Physical Security and (x) written instructions given in
accordance with the Depository's and the Registrar's
procedures and (y) the certificate, if required, referred to
in clause (y) of paragraph (i) above (and any legal opinion or
other certifications), the Registrar shall register the
transfer and reflect on its books and records the date and an
increase in the principal amount of the IAI Global Note in an
amount equal to the principal amount of Physical Securities to
be transferred, and the Registrar shall cancel the Physical
Securities so transferred; and
(iii) if the proposed transferor is a Participant
seeking to transfer an interest in a Global Security, upon
receipt by the Registrar of (x) written instructions given in
accordance with the Depository's and the Registrar's
procedures and (y) the certificate, if required, referred to
in clause (y) of paragraph (i) above, the Registrar shall
register the transfer and reflect on its books and records the
date and (A) a decrease in the principal amount of the Global
Security from which such interests are to be transferred in an
amount equal to the principal amount of the Securities to be
transferred and (B) an increase in the principal amount of the
IAI Global Note in an amount equal to the principal amount of
the Securities to be transferred.
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(b) Transfers to QIBs. The following provisions shall apply
with respect to the registration of any proposed transfer of a
Restricted Security to a QIB:
(i) the Registrar shall register the transfer of any
Restricted Security, whether or not such Security bears the
Private Placement Legend, if (x) the requested transfer is
after the second anniversary of the Issue Date; provided,
however, that neither the Company nor any Affiliate of the
Company has held any beneficial interest in such Security, or
portion thereof, at any time on or prior to the second
anniversary of the Issue Date or (y) such transfer is being
made by a proposed transferor who has checked the box provided
for on the applicable Global Security stating, or has
otherwise advised the Company and the Registrar in writing,
that the sale has been made in compliance with the provisions
of Rule 144A to a transferee who has signed the certification
provided for on the applicable Global Security stating, or has
otherwise advised the Company and the Registrar in writing,
that it is purchasing the 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 QIB within
the meaning of Rule 144A, 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 it 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 its foregoing representations in
order to claim the exemption from registration provided by
Rule 144A;
(ii) if the proposed transferee is a Participant and
the Securities to be transferred consist of Physical
Securities which after transfer are to be evidenced by an
interest in the 144A Global Note, upon receipt by the
Registrar of the Physical Security and written instructions
given in accordance with the Depository's and the Registrar's
procedures, the Registrar shall register the transfer and
reflect on its books and records the date and an increase in
the principal amount of the 144A Global Note in an amount
equal to the principal amount of Physical Securities to be
transferred, and the Registrar shall cancel the Physical
Securities so transferred; and
(iii) if the proposed transferor is a Participant
seeking to transfer an interest in the IAI Global Note or the
Regulation S Global Note, upon receipt by the Registrar of
written instructions given in accordance with the Depository's
and the Registrar's procedures, the Registrar shall register
the transfer and reflect on its books and records the date and
(A) a decrease in the principal amount of the IAI Global Note
or the Regulation S Global Note, as the case may be, in an
amount equal to the principal amount of the Securities to be
transferred and (B) an increase in the principal amount of the
144A Global Note in an amount equal to the principal amount of
the Securities to be transferred.
(c) Transfers to Non-U.S. Persons. The following provisions
shall apply with respect to any transfer of a Restricted Security to a
Non-U.S. Person under Regulation S:
(i) the Registrar shall register any proposed
transfer of a Restricted Security to a Non-U.S. Person upon
receipt of a certificate substantially in the form of Exhibit
D from the proposed transferor and such certifications, legal
opinions and other information as the Trustee or the Company
may reasonably request; and
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(ii) (a) if the proposed transferor is a Participant
holding a beneficial interest in the Rule 144A Global Note or
the IAI Global Note or the Security to be transferred consists
of Physical Securities, upon receipt by the Registrar of (x)
the documents required by paragraph (i) and (y) instructions
in accordance with the Depository's and the Registrar's
procedures, the Registrar shall reflect on its books and
records the date and a decrease in the principal amount of the
Rule 144A Global Note or the IAI Global Note, as the case may
be, in an amount equal to the principal amount of the
beneficial interest in the Rule 144A Global Note or the IAI
Global Note, as the case may be, to be transferred or cancel
the Physical Securities to be transferred, and (b) if the
proposed transferee is a Participant, upon receipt by the
Registrar of instructions given in accordance with the
Depository's and the Registrar's procedures, the Registrar
shall reflect on its books and records the date and an
increase in the principal amount of the Regulation S Global
Note in an amount equal to the principal amount of the Rule
144A Global Note, the IAI Global Note or the Physical
Securities, as the case may be, to be transferred.
(d) Registered Exchange Offer. Upon the occurrence of the
Registered Exchange Offer in accordance with the Registration Rights
Agreement, the Company shall issue and, upon receipt of a Company Order
in accordance with Section 2.02, the Trustee shall authenticate one or
more Global Securities not bearing the Private Placement Legend
substantially in the form of Exhibit A in an aggregate principal amount
equal to the principal amount of the beneficial interests in the
Initial Global Securities tendered for acceptance by Persons that
certify in the applicable Letters of Transmittal that (x) they are not
broker-dealers, (y) they are not participating in a distribution of the
Exchange Notes and (z) they are not affiliates (as defined in Rule 144)
of the Company, and accepted for exchange in the Registered Exchange
Offer.
(e) Restrictions on Transfer and Exchange of Global
Securities. Notwithstanding any other provisions of this Indenture, a
Global Note may not be transferred as a whole except by the Depository
to a nominee of the Depository or by a nominee of the Depository to the
Depository or another nominee of the Depository or by the Depository or
any such nominee to a successor Depository or a nominee of such
successor Depository.
(f) Private Placement Legend. Upon the transfer, exchange or
replacement of Securities not bearing the Private Placement Legend
unless otherwise required by applicable law, the Registrar shall
deliver Securities that do not bear the Private Placement Legend. Upon
the transfer, exchange or replacement of Securities bearing the Private
Placement Legend, the Registrar shall deliver only Securities that bear
the Private Placement Legend unless (i) the requirements of this
Section 2.16(a)(i)(x) are met with respect to such transfer, exchange
or replacement, (ii) there is delivered to the Trustee an Opinion of
Counsel reasonably satisfactory to the Company and the Trustee to the
effect that neither such legend nor the related restrictions on
transfer are required in order to maintain compliance with the
provisions of the Securities Act or (iii) such Security has been
offered and sold (including pursuant to the Registered Exchange Offer)
pursuant to an effective registration statement under the Securities
Act.
(g) General. 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.
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Xxx Xxxxxxxxx shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.15 or Section 2.16.
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 Registrar.
The Trustee shall have no obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of any
interest in any Security (including any transfers between or among Participants
or beneficial owners of interests in any Global Security) other than to require
delivery of such certificates and other documentation or evidence as are
expressly required by, and to do so if and when expressly required by the terms
of, this Indenture, and to examine the same to determine substantial compliance
as to form with the express requirements hereof.
The Trustee shall have no responsibility for the actions or
omissions of the Depository, or the accuracy of the books and records of the
Depository.
(h) Cancellation and/or Adjustment of Global Security. At such
time as all beneficial interests in a particular Global Security have
been exchanged for Physical Securities or a particular Global Security
has been redeemed, repurchased or canceled in whole and not in part,
each such Global Security shall be returned to or retained and canceled
by the Trustee in accordance with Section 2.11. At any time prior to
such cancellation, if any beneficial interest in a Global Security is
exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Security or for
Physical Securities, the principal amount of Securities represented by
such Global Security shall be reduced accordingly and an endorsement
shall be made on such Global Security by the Trustee or by the
Depositary at the direction of the Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to
a Person who will take delivery thereof in the form of a beneficial
interest in another Global Security, such other Global Security shall
be increased accordingly and an endorsement shall be made on such
Global Security by the Trustee or by the Depositary at the direction of
the Trustee to reflect such increase.
ARTICLE THREE
REDEMPTION
SECTION 3.01. Notices to Trustee.
If the Company elects to redeem Securities pursuant to either
Paragraphs 6, 7 or 8 of the Securities, it shall notify the Trustee in writing
of the Redemption Date and the principal amount of Securities to be redeemed.
The Company shall give notice of redemption to the Holders at least 30 days but
not more than 60 days before the Redemption Date (unless a shorter notice shall
be agreed to by the Trustee in writing), together with an Officers' Certificate
stating that such redemption will comply with the conditions contained herein.
SECTION 3.02. Selection of Securities To Be Redeemed.
If fewer than all of the Securities are to be redeemed, the
Trustee shall select the Securities to be redeemed in compliance with the
requirements of the national securities exchange, if any, on which such
Securities are listed or, if such Securities are not then listed on a national
securities exchange, on a pro rata basis, by lot or by such other method as the
Trustee shall determine to be fair and appropriate; provided, however, that if a
partial redemption is made with the Net Cash Proceeds of an Equity Offering,
selection of the Securities or portion thereof for redemption shall be made by
the Trustee only on a pro rata basis or on as nearly a pro rata basis as is
practicable (subject to the Depository's procedures), unless such a method is
otherwise prohibited.
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The Trustee shall make the selection from the Securities
outstanding and not previously called for redemption and shall promptly notify
the Company in writing of the Securities selected for redemption and, in the
case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. Securities in denominations of $1,000 may be redeemed
only in whole. The Trustee may select for redemption portions (equal to $1,000
or any integral multiple thereof) of the principal of Securities that have
denominations larger than $1,000. Provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called for
redemption.
SECTION 3.03. Notice of Redemption.
At least 30 days but not more than 60 days before a Redemption
Date, the Company shall mail a notice of redemption by first class mail, postage
prepaid, to each Holder whose Securities are to be redeemed or, at the Company's
request made at least 45 days before the Redemption Date, the Trustee shall give
the notice of redemption in the Company's name and at the Company's expense.
Each notice for redemption shall identify the Securities to be redeemed and
shall state:
(1) the Redemption Date;
(2) the Redemption Price and the amount of accrued interest,
if any, to be paid;
(3) the name and address of the Paying Agent;
(4) that Securities called for redemption must be surrendered
to the Paying Agent to collect the Redemption Price;
(5) that, unless the Company defaults in making the redemption
payment, interest on Securities called for redemption ceases to accrue
on and after the Redemption Date, and the only remaining right of the
Holders of such Securities is to receive payment of the Redemption
Price upon surrender to the Paying Agent of the Securities redeemed;
(6) if any Security is being redeemed in part, the portion of
the principal amount of such Security to be redeemed and that, after
the Redemption Date, and upon surrender of such Security, a new
Security or Securities in aggregate principal amount equal to the
unredeemed portion thereof will be issued;
(7) if fewer than all the Securities are to be redeemed, the
identification of the particular Securities (or portion thereof) to be
redeemed, as well as the aggregate principal amount of Securities to be
redeemed and the aggregate principal amount of Securities to be
outstanding after such partial redemption; and
(8) the subparagraph of the Securities pursuant to which the
Securities are to be redeemed.
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SECTION 3.04. Effect of Notice of Redemption.
Once notice of redemption is mailed in accordance with Section
3.03, Securities called for redemption become due and payable on the Redemption
Date and at the Redemption Price plus accrued interest, if any. Upon surrender
to the Trustee or Paying Agent, such Securities called for redemption shall be
paid at the Redemption Price (which shall include accrued interest thereon to
the Redemption Date), but installments of interest, the maturity of which is on
or prior to the Redemption Date, shall be payable to Holders of record at the
close of business on the relevant Record Dates.
SECTION 3.05. Deposit of Redemption Price.
Prior to 11:00 a.m. New York City time on the Redemption Date,
the Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to
pay the Redemption Price plus accrued interest, if any, of all Securities to be
redeemed on that date. The Paying Agent shall promptly return to the Company any
U.S. Legal Tender so deposited which is not required for that purpose upon the
written request of the Company, except with respect to monies owed as
obligations to the Trustee pursuant to Article Seven.
If the Company complies with the preceding paragraph, then,
unless the Company defaults in the payment of such Redemption Price plus accrued
interest, if any, interest on the Securities to be redeemed will cease to accrue
on and after the applicable Redemption Date, whether or not such Securities are
presented for payment.
SECTION 3.06. Securities Redeemed in Part.
Upon surrender of a Security that is to be redeemed in part,
the Trustee shall authenticate for the Holder a new Security or Securities equal
in principal amount to the unredeemed portion of the Security surrendered.
ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Securities.
The Company shall pay the principal of and interest on the
Securities in the manner provided in the Securities. An installment of principal
of or interest on the Securities shall be considered paid on the date it is due
if the Trustee or Paying Agent holds on that date U.S. Legal Tender designated
for and sufficient to pay the installment in full and is not prohibited from
paying such money to the Holders pursuant to the terms of this Indenture.
The Company shall pay, to the extent such payments are lawful,
interest on overdue principal and on overdue installments of interest (without
regard to any applicable grace periods) from time to time on demand at the rate
borne by the Securities plus 2% per annum. Interest will be computed on the
basis of a 360-day year comprised of twelve 30-day months.
Notwithstanding anything to the contrary contained in this
Indenture, the Company may, to the extent it is required to do so by law, deduct
or withhold income or other similar taxes imposed by the United States of
America from principal or interest payments hereunder.
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SECTION 4.02. Maintenance of Office or Agency.
The Company shall maintain in the Borough of Manhattan, The
City of New York, the office or agency required under Section 2.03. The Company
shall give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in Section
14.02. The Company hereby initially designates the office of the Trustee, c/o
JPMorgan Chase Bank, 0 Xxx Xxxx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000, as its
office or agency in the Borough of Manhattan, The City of New York.
SECTION 4.03. Limitation on Restricted Payments.
The Company will not, and will not cause or permit any of its
Subsidiaries to, directly or indirectly:
(a) declare or pay any dividend or make any distribution
(other than dividends or distributions payable solely in Qualified
Capital Stock of the Company) on shares of the Company's Capital Stock
to holders of such Capital Stock,
(b) purchase, redeem or otherwise acquire or retire for value
any Capital Stock of the Company, or any warrants, rights or options to
acquire shares of any class of such Capital Stock, other than any such
transaction which constitutes a Permitted Investment and other than
through the exchange therefor solely of Qualified Capital Stock of the
Company or warrants, rights or options to acquire Qualified Capital
Stock of the Company,
(c) make any principal payment on, purchase, defease, redeem,
prepay, decrease or otherwise acquire or retire for value, prior to any
scheduled final maturity, scheduled repayment or scheduled sinking fund
payment, any Indebtedness of the Company or a Guarantor that is
subordinate or junior in right of payment to the Securities or the
Guarantee of such Guarantor, as the case may be, or
(d) make any Investment (other than Permitted Investments) in
any Person
(each of the foregoing prohibited actions set forth in clauses (a), (b), (c) and
(d) being referred to as a "Restricted Payment"), if at the time of such
proposed Restricted Payment or immediately after giving effect thereto:
(i) a Default or an Event of Default has occurred and is
continuing or would result therefrom, or
(ii) the Company is not able to Incur at least $1.00 of
additional Indebtedness in accordance with the Consolidated Fixed
Charge Coverage Ratio test of paragraph (b) of Section 4.04 (as if such
Restricted Payment had been made as of the first day of the Four
Quarter Period), or
(iii) the aggregate amount of Restricted Payments made
subsequent to the Issue Date (the amount expended for such purposes, if
other than in cash, being the fair market value of such property as
determined reasonably and in good faith by the board of directors of
the Company) exceeds or would exceed the sum of:
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(1) 50% of the cumulative Consolidated Net Income (or if
cumulative Consolidated Net Income shall be a loss, minus 100% of such
loss) of the Company during the period (treating such period as a
single accounting period) from the beginning of the fiscal quarter in
which the Issue Date occurs to the last day of the last full fiscal
quarter for which financial information is available (but in no event
ending more than 135 days prior to the date of such Restricted Payment)
preceding the date of the proposed Restricted Payment;
(2) 100% of the aggregate Net Equity Proceeds (plus the fair
market value of any property other than Net Equity Proceeds) received
by the Company from any Person (other than from a Subsidiary of the
Company) from the issuance and sale subsequent to the Issue Date of
Qualified Capital Stock of the Company or warrants, rights or options
to acquire Qualified Capital Stock of the Company (excluding any
Qualified Capital Stock of the Company or warrants, rights or options
to acquire Qualified Capital Stock of the Company with respect to which
the purchase price thereof has been financed directly or indirectly
using funds (i) borrowed from the Company or from any of its
Subsidiaries, unless and until and to the extent such borrowing is
repaid or (ii) contributed, extended, guaranteed or advanced by the
Company or by any of its Subsidiaries (including, without limitation,
in respect of any employee stock ownership or benefit plan);
(3) any cash received subsequent to the Issue Date as a
capital contribution to the common equity of the Company; and
(4) the amount equal to (A) the reduction in Investments in
any Person resulting from repurchases or redemptions of such
Investments by such Person, (B) proceeds (including the fair market
value of any property) realized upon the sale of such Investment to an
unaffiliated purchaser, (C) repayments of loans or advances or other
transfers of assets by such Person to the Company or any Subsidiary
(other than from other Subsidiaries), and (D) the amount of any
Investment outstanding at the time that the Person in whom such
Investment is made becomes a Restricted Subsidiary of the Company, but
not to exceed in the aggregate the amount that was included in the
calculation of the aggregate amount of Restricted Payments pursuant to
clause (iii) of this paragraph; provided, however, that no amount shall
be included under this clause to the extent it is included in
Consolidated Net Income.
Notwithstanding the foregoing, the provisions set forth in the
immediately preceding paragraph do not prohibit the following to the extent they
constitute Restricted Payments:
(a) the payment of any dividend or making of any distribution
within 60 days after the date of its declaration if the dividend or
distribution would have been permitted on the date of declaration;
(b) the repurchase, redemption, retirement or acquisition of
Capital Stock of the Company or warrants, rights or options to acquire
Capital Stock of the Company either (i) solely in exchange for shares
of Qualified Capital Stock of the Company or warrants, rights or
options to acquire Qualified Capital Stock of the Company, or (ii)
through the application of net proceeds of a substantially concurrent
sale for cash (other than to a Subsidiary of the Company) of shares of
Qualified Capital Stock of the Company or warrants, rights or options
to acquire Qualified Capital Stock of the Company;
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(c) the repurchase, redemption, retirement or acquisition of
Indebtedness of the Company that is subordinate or junior in right of
payment to the Securities either (i) solely in exchange for or through
the conversion into shares of Qualified Capital Stock of the Company,
or (ii) through the application of net proceeds of a substantially
concurrent sale for cash (other than to a Subsidiary of the Company) of
(A) shares of Qualified Capital Stock of the Company or warrants,
rights or options to acquire Qualified Capital Stock of the Company or
(B) incurrence of Refinancing Indebtedness;
(d) payments to Holdings or to Parent in amounts and at times
necessary to permit the repurchase of Capital Stock deemed to occur
upon (i) the exercise of stock options if such Capital Stock represents
a portion of the exercise price thereof and (ii) the withholding of a
portion of the Capital Stock granted or awarded to an employee to pay
taxes associated therewith;
(e) payments pursuant to any management advisory agreement;
provided that such payments shall not exceed the greater of $700,000
and 1.25% of Consolidated EBITDA (as defined in the Senior Bank
Facilities as in effect on the Issue Date, plus, to the extent deducted
in arriving at Consolidated EBITDA, the aggregate amount of fees paid
under such management advisory agreement and any fees paid to Vestar
Capital Partners or any of its Affiliates, plus any "true-up" payments
made pursuant thereto) of the Company for such fiscal year;
(f) the repurchase, redemption, defeasance, retirement,
refinancing or acquisition for value or payment of principal of
subordinated Indebtedness with the Net Cash Proceeds of an Asset Sale
or in the event of a Change of Control; provided that the Company has
otherwise complied with the covenants provided herein;
(g) payments to Holdings or to Parent in amounts and at times
necessary to permit the acquisition of Common Stock of Holdings or
Parent or warrants, rights or options to acquire such Common Stock from
employees of the Company and its Subsidiaries and any current or former
officer, director or employee; provided that such payments shall not
exceed $3,000,000 in any fiscal year plus the aggregate amount of cash
proceeds received by Holdings or Parent in such fiscal year from the
sale to officers, directors and employees of shares of Common Stock of
Holdings or Parent previously repurchased pursuant to this clause (g)
plus any amount available for such payments hereunder since the Issue
Date which have not been used for such purpose;
(h) payments to Holdings or Parent in respect of accounting,
legal or other administrative expenses incurred by Holdings or Parent
relating to the operations of the Company in the ordinary course of
business; provided that the aggregate amount of such payments does not
exceed $1,000,000 in any fiscal year;
(i) so long as Holdings or Parent files consolidated income
tax returns which include the Company, payments to Holdings or Parent,
as the case may be, in an amount equal to the amount of income tax that
the Company would have paid if it had filed consolidated tax returns on
a separate-company basis;
(j) payments to Holdings or Parent in an amount sufficient to
pay director's fees and the reasonable expenses of its directors in an
aggregate amount not to exceed $250,000 per year;
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(k) payments to Holdings or Parent in amounts and at the times
necessary to permit payments to holders of Capital Stock thereof in
lieu of fractional shares of such Capital Stock in an aggregate amount
not to exceed $5,000,000 since the Issue Date; and
(l) so long as no Default has occurred and is continuing or
would be caused thereby, other Restricted Payments in an aggregate
amount not to exceed $15,000,000 since the Issue Date;
provided, however, that amounts expended pursuant to clauses (b)(ii) and
(c)(ii)(A) shall, in each case, be included in such calculation and amounts
expended pursuant to clauses (a), (b)(i), (c)(i), (c)(ii)(B) and (d) through (l)
shall be excluded from such calculation.
SECTION 4.04. Limitation on Indebtedness.
(a) The Company will not, and will not cause or permit any of
its Restricted Subsidiaries to, directly or indirectly, Incur any Indebtedness
(other than Permitted Indebtedness).
(b) Notwithstanding the foregoing limitations, the Company or
any of its Restricted Subsidiaries that is or, upon such Incurrence, becomes a
Guarantor may Incur Indebtedness if (i) no Default or Event of Default shall
have occurred and be continuing on the date of the proposed Incurrence thereof
or would result as a consequence of such proposed Incurrence and (ii) on the
date of such proposed Incurrence, after giving effect thereto, the Consolidated
Fixed Charge Coverage Ratio of the Company is at least equal to 2.0 to 1.0.
(c) For purposes of determining compliance with this Section
4.04, in the event that an item of proposed Indebtedness meets the criteria of
more than one of the categories described in clauses (a) through (m) of the
definition of "Permitted Indebtedness" or is entitled to be Incurred pursuant to
paragraph (b) of this Section 4.04, the Company may, in its sole discretion,
classify or reclassify such item of Indebtedness in any manner that complies
with this Section 4.04 as of the date of Incurrence or reclassification, as
applicable. Accrual of interest, the accretion of accreted value, the payment of
interest in the form of additional Indebtedness and any change in the amount of
Indebtedness outstanding due solely to the result of fluctuations in the
exchange rate of currencies will not be deemed to be an Incurrence of
Indebtedness for purposes of this Section 4.04.
SECTION 4.05. Corporate Existence.
Except as otherwise permitted by Article Five, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and the corporate, partnership or other
existence of each of its Restricted Subsidiaries in accordance with the
respective organizational documents of each Restricted Subsidiary and the rights
(charter and statutory) and material franchises of the Company and each of its
Restricted Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right or franchise, or the corporate existence of
any Restricted Subsidiary, if the Board of Directors of the Company shall
determine that the loss thereof is not, and will not be, adverse in any material
respect to the Holders.
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SECTION 4.06. Payment of Taxes and Other Claims.
The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges levied or imposed upon it or any of its
Subsidiaries or upon the income, profits or property of it or any of its
Subsidiaries and (ii) all lawful claims for labor, materials and supplies which,
in each case, if unpaid, might by law become a material liability or Lien upon
the property of it or any of its Subsidiaries; 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 (i) whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings and for which appropriate provision has been made or (ii) where the
failure to effect such payment or discharge is not adverse in any material
respect to the Holders.
SECTION 4.07. Maintenance of Properties and Insurance.
(a) The Company shall cause all material properties owned by
or leased by it or any of its Restricted Subsidiaries useful and necessary to
the conduct of its business or the business of any of its Restricted
Subsidiaries, taken as a whole, to be maintained and kept in normal condition,
repair and working order (subject to ordinary wear and tear) and shall cause to
be made all repairs, renewals, replacements and betterments thereof, all as in
its judgment may be necessary, so that the business carried on in connection
therewith may be properly conducted at all times; provided, however, that
nothing in this Section 4.07 shall prevent the Company or any of its Restricted
Subsidiaries from discontinuing the use, operation or maintenance of any of such
properties, or disposing of any of them, if such discontinuance or disposal is
in the ordinary course of business or, in the judgment of the Board of Directors
of the Company or any Restricted Subsidiary of the Company concerned, or of an
officer (or other agent employed by the Company or of any of its Subsidiaries)
of the Company or any of its Restricted Subsidiaries having managerial
responsibility for any such property, desirable in the conduct of the business
of the Company or any Restricted Subsidiary of the Company, and if such
discontinuance or disposal is not adverse in any material respect to the
Holders.
(b) The Company shall maintain, and shall cause its Restricted
Subsidiaries to maintain, insurance with responsible carriers against such risks
and in such amounts, and with such deductibles, retentions, self-insured amounts
and co-insurance provisions, as are customarily carried by similar businesses of
similar size, including property and casualty loss, workers' compensation and
interruption of business insurance, unless, in the good faith judgment of the
Board of Directors of the Company, the failure to provide such insurance would
not be adverse in any material respect to the Holders.
SECTION 4.08. Compliance Certificate; Notice of Default.
(a) The Company shall deliver to the Trustee, within 100 days
after the close of each fiscal year an Officers' Certificate stating that a
review of the activities of the Company has been made under the supervision of
the signing officers with a view to determining whether it has kept, observed,
performed and fulfilled its obligations under this Indenture and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company during such preceding fiscal year has kept, observed,
performed and fulfilled each and every such covenant and no Default or Event of
Default occurred during such year and at the date of such certificate no Default
or Event of Default has occurred and is continuing or, if such signers do know
of such Default or Event of Default, the certificate shall describe its status
with particularity. The Officers' Certificate shall also notify the Trustee
should the Company elect to change the manner in which it fixes its fiscal year
end.
(b) The annual financial statements delivered pursuant to
Section 4.10, if required by the rules and regulations of the SEC, shall be
accompanied by a written report of the Company's independent accountants (who
shall be a firm of established national reputation) that in conducting their
audit of such financial statements nothing has come to their attention that
would lead them to believe that the Company has violated any provisions of
Article Four, Five or Six of this Indenture insofar as they relate to accounting
matters or, if any such violation has occurred, specifying the nature and period
of existence thereof, it being understood that such accountants shall not be
liable directly or indirectly to any Person for any failure to obtain knowledge
of any such violation.
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(c) The Company shall deliver to the Trustee, forthwith upon
becoming aware of any Default or Event of Default in the performance of any
covenant, agreement or condition contained in this Indenture, an Officers'
Certificate specifying the Default or Event of Default and describing its status
with particularity.
SECTION 4.09. Compliance with Laws.
The Company shall comply, and shall cause each of its
Subsidiaries to comply, with all applicable statutes, rules, regulations, orders
and restrictions of the United States of America, all states and municipalities
thereof, and of any governmental department, commission, board, regulatory
authority, bureau, agency and instrumentality of the foregoing, in respect of
the conduct of their respective businesses and the ownership of their respective
properties, except for such noncompliances as would not in the aggregate have a
material adverse effect on the financial condition or results of operations of
the Company and its Subsidiaries taken as a whole.
SECTION 4.10. SEC Reports.
Whether or not required by the rules and regulations of the
SEC, so long as any Securities are outstanding, the Company will furnish the
Holders of Securities:
(i) all quarterly and annual financial information that would
be required to be contained in a filing with the SEC on Forms 10-Q and
10-K if the Company were required to file such Forms, including a
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" that describes the financial condition and
results of operations of the Company and its consolidated Subsidiaries
(showing in reasonable detail, either on the face of the financial
statements or in the footnotes thereto and in Management's Discussion
and Analysis of Financial Condition and Results of Operations, the
financial condition and results of operations of the Company and its
Restricted Subsidiaries separate from the financial condition and
results of operations of the Unrestricted Subsidiaries of the Company,
if any) and, with respect to the annual information only, a report
thereon by the Company's certified independent accounts; and
(ii) all current reports that would be required to be filed
with the SEC on Form 8-K if the Company were required to file such
reports, in each case within the time periods specified in the SEC's
rules and regulations.
In addition, following the consummation of the exchange offer contemplated by
the Registration Rights Agreement, whether or not required by the rules and
regulations of the SEC, the Company will file a copy of all such information
and reports with the SEC for public availability within the time periods
specified in the SEC's rules and regulations (unless the SEC will not accept
such a filing) and make such information available to securities analysts and
prospective investors upon request. In addition, the Company has agreed that,
for so long as any Securities remain outstanding, it will furnish to the
Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.
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SECTION 4.11. Waiver of Stay, Extension or Usury Laws.
The Company covenants (to the extent that it may lawfully do
so) that it shall not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
or any usury law or other law that would prohibit or forgive the Company from
paying all or any portion of the principal of and/or interest on the Securities
as contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture, and (to
the extent that it may lawfully do so) the Company 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 4.12. Limitation on Transactions with Affiliates.
(a) Neither the Company nor any Restricted Subsidiary of the
Company will enter into any transaction or series of transactions with or for
the benefit of any of their Affiliates (each, an "Affiliate Transaction"),
except in good faith and on terms that are no less favorable to the Company or
such Restricted Subsidiary, as the case may be, than those that could have been
obtained in a comparable transaction on an arm's-length basis from a Person not
an Affiliate of the Company or such Restricted Subsidiary.
All Affiliate Transactions (and each series of related
Affiliate Transactions which are similar or part of a common plan) involving
aggregate payments or other property with a fair market value in excess of
$2,500,000 shall be approved by the Board of Directors of the Company or such
Restricted Subsidiary, such approval to be evidenced by a Board Resolution
stating that such Board of Directors has determined that such transaction
complies with the foregoing provisions, and shall be certified by an officer of
the Company as complying with the foregoing provisions such certification to be
evidenced by an Officer's Certificate delivered to the Trustee. If the Company
or any Restricted Subsidiary of the Company enters into an Affiliate Transaction
(or a series of related Affiliate Transactions related to a common plan) that
involves an aggregate fair market value of more than $15,000,000, the Company or
such Restricted Subsidiary shall, prior to the consummation thereof, obtain a
favorable opinion from an independent Financial Advisor (and file the same with
the Trustee) as to either the fairness of such transaction or series of related
transactions to the Company or the relevant Restricted Subsidiary, as the case
may be, from a financial point of view or that such transaction is on terms no
less favorable to the Company or such Restricted Subsidiary, as the case may be,
than those that could have been obtained in a comparable transaction on an
arm's-length basis from a Person not an Affiliate of the Company or such
Restricted Subsidiary.
(b) The foregoing restrictions shall not apply to:
(i) reasonable fees and compensation paid to and
indemnity provided on behalf of, officers, directors,
employees or consultants of the Company or any Restricted
Subsidiary as determined in good faith by the Company's Board
of Directors or senior management;
(ii) transactions exclusively between or among the
Company and any of its Restricted Subsidiaries or exclusively
between or among such Restricted Subsidiaries;
(iii) any Restricted Payment made in compliance with
Section 4.03;
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(iv) any Permitted Investments;
(v) any agreement as in effect as of the Issue Date
or any amendment thereto or replacement agreement thereto so
long as any such amendment or replacement agreement taken as a
whole is not more disadvantageous to the holders of the
Securities in any material respect than such agreement;
(vi) transactions with suppliers or other purchasers
for the sale or purchase of goods in the ordinary course of
business;
(vii) the issuance of any Qualified Capital Stock of
the Company to an Affiliate of the Company or the Incurrence
of any Indebtedness to be owing to any Affiliate of the
Company to the extent such Indebtedness was incurred under the
Consolidated Fixed Charge Coverage Ratio test set forth under
clause (b) of Section 4.04;
(viii) any transactions involving the Company or any
of its Restricted Subsidiaries, on the one hand, and Bear,
Xxxxxxx & Co. Inc. or any of its Affiliates, on the other
hand, in connection with the Transactions and any amendment,
modification, supplement, extension, refinancing, replacement
and other transactions related thereto, or any management,
financial advisory, financing, underwriting or placement
services or any other investment banking, capital markets,
banking or similar services, which transactions are on terms
that are no less favorable to the Company or such Restricted
Subsidiary, as the case may be, than those that could have
been obtained in a comparable transaction on an arm's-length
basis from a Person not an Affiliate of the Company or such
Restricted Subsidiary, as determined in good faith by the
Company's Board of Directors;
(ix) any transaction between the Company or any of
its Restricted Subsidiaries, on the one hand, and any parent
of the Company that guarantees the Company's obligations under
the Securities (a "Parent Guarantor") or any of such Parent
Guarantor's subsidiaries other than the Company and its
Restricted Subsidiaries (the "Parent's Subsidiaries"), on the
other hand, relating to (i) the sale or disposition of assets
or (ii) the integration of the business and operations of the
Parent Guarantor and the Parent's Subsidiaries with that of
the Company and its Restricted Subsidiaries, including,
without limitation, the provision or receipt of services and
the use of manufacturing, office and distribution facilities
and other similar transactions, in each case so long as any
such transaction, when taken together with all other such
transactions and agreements, is fair to the Company and its
Restricted Subsidiaries (as determined by the Board of
Directors of the Company acting in good faith if the value of
such transactions exceeds $2,500,000 in any fiscal year);
(x) the issuance by the Parent Guarantor and/or any
of the Parent's Subsidiaries of a Guarantee of the Securities;
(xi) the issuance by the Company and its Restricted
Subsidiaries of guarantees of Indebtedness of the Parent
Guarantor so long as such guarantees are Incurred in
compliance with Section 4.04; or
(xii) the payment of reasonable and customary
management, consulting and advisory fees and related expenses
on the terms and in the amounts provided for in agreements in
effect on the Issue Date.
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SECTION 4.13. 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 or
permit or suffer to exist or become effective any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to:
(a) pay dividends or make any other distributions on or in
respect of its Capital Stock;
(b) make loans or advances or pay any Indebtedness or other
obligation owed to the Company or to any Restricted Subsidiary of the
Company; or
(c) transfer any of its property or assets to the Company or
to any Restricted Subsidiary of the Company
(each such encumbrance or restriction in clause (a), (b) or (c), a "Payment
Restriction"), except for such encumbrances or restrictions existing under or by
reason of:
(1) applicable law, rules or regulations;
(2) this Indenture;
(3) customary non-assignment provisions of any contract or
any lease of any Restricted Subsidiary of the Company;
(4) any instrument governing Acquired Indebtedness;
provided that such encumbrance or restriction is not, and will not
be, applicable to any Person, or the properties or assets of any
Person, other than the Person, or the property or asset of the
Person, becoming a Subsidiary of the Company;
(5) agreements existing on the Issue Date (including,
without limitation, the Senior Bank Facilities);
(6) restrictions imposed by Liens granted pursuant to
clauses (k) and (l) of the definition of Permitted Liens solely to
the extent such Liens encumber the transfer or other disposition
of the assets subject to such Liens;
(7) any contract for the sale of assets to be consummated
in accordance with the In-denture solely in respect of the assets
to be sold pursuant to such contract;
(8) any instrument governing Refinancing Indebtedness
Incurred to Refinance the Indebtedness issued, assumed or Incurred
pursuant to an agreement referred to in clauses (4), (5) (other
than the Senior Bank Facilities) or (6) above or an agreement
effecting an amendment, refinancing, replacement or substitution
of the Senior Bank Facilities or Guarantor Senior Indebtedness or
effecting an amendment, refinancing, replacement or substitution
of another agreement existing on the Issue Date; provided that the
provisions relating to such encumbrance or restriction contained
in any such Refinancing Indebtedness or agreement are no less
favorable to the Company or to the Holders in any material respect
in the reasonable and good faith judgment of the board of
directors of the Company than the provisions relating to such
encumbrance or restriction contained in agreements referred to in
such clause (4), (5) or (6);
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(9) any other agreement, instrument or document relating
to Senior Indebtedness hereafter in effect, provided that such
encumbrances or restrictions are no less favorable to the Company
in any material respect than the encumbrances or restrictions
imposed in connection with the Senior Bank Facilities as in effect
on the Issue Date;
(10) any instrument governing Indebtedness incurred by a
Subsidiary that is not a Guarantor that apply only to such
Subsidiary; or
(11) any instrument governing secured Indebtedness
otherwise permitted to be incurred under this Indenture and
incurred in connection with the acquisition of the assets securing
Indebtedness, which provisions limit the right of the debtor
thereunder to dispose of the assets securing such Indebtedness.
SECTION 4.14. Limitation on Liens.
The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
permit or suffer to exist or remain in effect any Liens upon any properties or
assets of the Company or of any of its Restricted Subsidiaries whether owned on
the Issue Date or acquired after the Issue Date, or on any income on or profits
or proceeds therefrom, or assign or otherwise convey any right to receive income
on or profits or proceeds therefrom unless:
(a) in the case of Liens securing Indebtedness that is
expressly subordinate in right of payment to the Securities, the
Securities or the Guarantee of such Guarantor, as the case may be, are
secured by a Lien on such property, assets or proceeds that ranks
senior in right of payment to such Liens and
(b) in all other cases, the Securities or the Guarantee of
such Guarantor, as the case may be, are equally and ratably secured,
other than
(i) Liens existing on the Issue Date and any
renewals, extensions or replacements thereof and
(ii) Permitted Liens.
SECTION 4.15. Change of Control.
(a) Upon the occurrence of a Change of Control, the Company
shall make an offer to purchase all outstanding Securities pursuant to
the offer described in paragraph (b) below (the "Change of Control
Offer") at a purchase price equal to 101% of the principal amount
thereof plus accrued and unpaid interest, if any, to the date of
purchase; provided, however, that, notwithstanding the occurrence of a
Change of Control, the Company shall not be obligated to make a Change
of Control Offer in the event that it has mailed the notice to exercise
its rights to redeem all of the Securities under Section 3.03 at any
time prior to the occurrence of a Change of Control. Prior to the
mailing of the notice referred to below, but in any event within 30
days following any Change of Control, the Company shall (i) repay in
full and terminate all commitments under Indebtedness under the Senior
Bank Facilities, and all other Senior Indebtedness to the extent the
terms of which require repayment upon a Change of Control, or offer to
repay in full and terminate all commitments under all Indebtedness
under the Senior Bank Facilities and all such other Senior Indebtedness
and to repay the Indebtedness owed to each lender which has accepted
such offer, or (ii) obtain the requisite consents under the Senior Bank
Facilities and all other Senior Indebtedness to permit the repurchase
of the Securities as provided below. The Company shall first comply
with the covenant in the immediately preceding sentence before it shall
be required to repurchase Securities pursuant to the provisions
described in this Section 4.15 or send the notice pursuant to the
provisions described below. The Company's failure to comply with the
covenant described in the second preceding sentence (and any failure to
send the notice referred to in the immediately succeeding paragraph as
a result of the prohibition in the second preceding sentence) may (with
notice) constitute an Event of Default under Section 6.01(3), but shall
not constitute an Event of Default under Section 6.01(2).
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(b) Within 30 days following the date upon which the Change of
Control occurred (the "Change of Control Date"), the Company must send,
by first class mail, a notice to each Holder, with a copy to the
Trustee, which notice shall govern the terms of the Change of Control
Offer. Such notice to the Holders shall contain all instructions and
materials necessary to enable such Holders to tender Securities
pursuant to the Change of Control Offer. Such notice shall state:
(1) that the Change of Control Offer is being made
pursuant to this Section 4.15 and that all Securities tendered
and not withdrawn will be accepted for payment;
(2) the purchase price (including the amount of
accrued interest) and the purchase date (which must be no
earlier than 30 days nor later than 60 days from the date such
notice is mailed, other than as may be required by law) (the
"Change of Control Payment Date"); provided that the Change of
Control Payment Date for the Securities shall be a date
subsequent to any payment dates for the purchase or other
repayment of Senior Indebtedness having similar provisions;
(3) that any Security not tendered will continue to
accrue interest;
(4) that, unless the Company defaults in making
payment therefor, any Security accepted for payment pursuant
to the Change of Control Offer shall cease to accrue interest
after the Change of Control Payment Date;
(5) that Holders electing to have a Security
purchased pursuant to a Change of Control Offer will be
required to surrender the Security, with the form entitled
"Option of Holder to Elect Purchase" on the reverse of the
Security completed, to the Paying Agent at the address
specified in the notice prior to the close of business on the
third Business Day prior to the Change of Control Payment
Date;
(6) that Holders will be entitled to withdraw their
election if the Paying Agent receives, not later than five
Business Days prior to the Change of Control Payment Date, a
telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the
Securities the Holder delivered for purchase and a statement
that such Holder is withdrawing his election to have such
Securities purchased;
(7) that Holders whose Securities are purchased only
in part will be issued new Securities in a principal amount
equal to the unpurchased portion of the Securities
surrendered; provided that each Security purchased and each
new Security issued shall be in an original principal amount
of $1,000 or integral multiples thereof; and
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(8) the circumstances and relevant facts regarding
such Change of Control.
On or before the Change of Control Payment Date, the Company
shall (i) accept for payment Securities or portions thereof tendered pursuant to
the Change of Control Offer, (ii) deposit with the Paying Agent U.S. Legal
Tender sufficient to pay the purchase price plus accrued interest, if any, of
all Securities so tendered and (iii) deliver to the Trustee Securities so
accepted together with an Officers' Certificate stating the Securities or
portions thereof being purchased by the Company. The Paying Agent shall promptly
mail to the Holders of Securities so accepted payment in an amount equal to the
purchase price plus accrued interest, if any, and the Trustee shall promptly
authenticate and mail to such Holders new Securities equal in principal amount
to any unpurchased portion of the Securities surrendered. Any Securities not so
accepted shall be promptly mailed by the Company to the Holder thereof. For
purposes of this Section 4.15, the Trustee shall act as the Paying Agent.
Any amounts remaining after the purchase of Securities
pursuant to a Change of Control Offer shall be returned by the Trustee to the
Company.
The Company will comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent such laws and regulations are applicable in connection with the
repurchase of Securities pursuant to a Change of Control Offer. To the extent
the provisions of any securities laws or regulations conflict with the
provisions under this Section 4.15, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under this Section 4.15 by virtue thereof.
SECTION 4.16. Limitation on Asset Sales.
The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, consummate any Asset Sale
unless:
(a) such Asset Sale is for at least fair market value,
(b) at least 75% of the consideration therefrom received by
the Company or such Restricted Subsidiary is in the form of cash or
Cash Equivalents or Related Business Investments; provided, however,
that (a) the amount of any liabilities (as shown on the Company's most
recent consolidated balance sheet) of the Company or any Restricted
Subsidiary (other than any liabilities that are by their terms
subordinated to the Securities or any Guarantee of a Guarantor) that
are assumed by the transferee of any such assets pursuant to an
agreement that releases the Company or such Restricted Subsidiary from
further liability shall be deemed to be cash for purposes of this
provision; and (b) the amount of any securities, notes or other
obligations received the Company or any such Restricted Subsidiary that
are converted by the Company or such Restricted Subsidiary within 90
days of such Asset Sale into cash shall be deemed to be cash for
purposes of this provision to the extent of the cash so received, and
(c) the Company or such Restricted Subsidiary shall apply the
Net Cash Proceeds of such Asset Sale within 365 days of receipt
thereof, as follows:
(1) to repay any Senior Indebtedness or Guarantor
Senior Indebtedness; provided that in the event any Net Cash
Proceeds received in respect thereof are used to repay
Indebtedness outstanding under any revolving credit facilities
(including the Revolving Credit Facility) such facility is
permanently reduced by the amounts thereof;
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(2) to make a Related Business Investment or to enter
into a legally binding written agreement to make a Related
Business Investment within 90 days of such agreement or 365
days of such Asset Sale, whichever is later; provided that if
any such legally binding agreement to make a Related Business
Investment is terminated, the Company or such Restricted
Subsidiary shall, within 90 days of such termination or within
365 days of such Asset Sale, whichever is later, apply such
Net Cash Proceeds as provided in clause (c)(1) or to make a
Related Business Investment; or
(3) a combination of repayment or investment
permitted by the foregoing clauses (c)(1) and (c)(2).
On the 366th day after the date of receipt of proceeds from an
Asset Sale or such earlier date, if any, as the senior management or the Board
of Directors of the Company or such Restricted Subsidiary determines not to
apply the Net Cash Proceeds relating to such Asset Sale as set forth in clause
(iii) above (the "Trigger Date"), such aggregate amount of Net Cash Proceeds
which have not been applied on or before the Trigger Date as permitted in clause
(iii) (the "Available Proceeds Amount") shall be applied by the Company to make
an offer to purchase (the "Asset Sale Offer") from all Holders, up to a maximum
principal amount (expressed as an integral multiple of $1,000) of Securities
equal to the Available Proceeds Amount at a purchase price equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon, if any, to
the date of purchase.
Pending the final application of the Net Cash Proceeds, the
Company and its Restricted Subsidiaries may temporarily reduce Indebtedness or
otherwise invest such Net Cash Proceeds in any manner not prohibited by this
Indenture.
If the Company commences an Asset Sale Offer, and securities
of the Company ranking pari passu in right of payment with the Securities are
outstanding at the commencement of such Asset Sale Offer that have terms
providing that a similar offer must be made with respect thereto, then the Asset
Sale Offer for the Securities shall be made concurrently with such other offer
and securities of each issue will be accepted pro rata in proportion to the
aggregate principal amount of securities of each issue which the holders of such
issue elect to have purchased.
If at any time any non-cash consideration received by the
Company or any Restricted Subsidiary of the Company, as the case may be, in
connection with any Asset Sale is converted into or sold or otherwise disposed
of for cash, then such conversion or disposition shall be deemed to constitute
an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in
accordance with this Section 4.16. The Company may defer the Asset Sale Offer
until there is an aggregate unutilized Available Proceeds Amount equal to or in
excess of $10,000,000 resulting from one or more Asset Sales (at which time, the
entire unutilized Available Proceeds Amount, and not just the amount in excess
of $10,000,000, shall be applied as required pursuant to this paragraph). To the
extent the Asset Sale Offer is not fully subscribed to by Holders, the Company
may use any remaining unutilized Available Proceeds Amount for any purpose not
prohibited by this Indenture. Upon completion of each Asset Sale Offer, the
Available Proceeds Amount will be reset to zero.
Notice of an Asset Sale Offer will be mailed to the Holders as
shown on the register of Holders not less than 30 days nor more than 60 days
before the payment date for the Asset Sale Offer, with a copy to the Trustee,
and shall comply with the procedures set forth in this Indenture. Upon receiving
notice of the Asset Sale Offer, Holders may elect to tender their Securities in
whole or in part in integral multiples of $1,000 principal amount in exchange
for cash. To the extent Holders properly tender Securities in an amount
exceeding the Available Proceeds Amount, Securities of tendering Holders will be
repurchased on a pro rata basis (based on amounts tendered). An Asset Sale Offer
shall remain open for a period of 20 Business Days or such longer period as may
be required by law.
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If an offer is made to repurchase the Securities pursuant to
an Asset Sale Offer, the Company will, and will cause its Restricted
Subsidiaries to, comply with all tender offer rules under state and Federal
securities laws, including, but not limited to, Section 14(e) under the Exchange
Act and Rule 14e-1 thereunder, to the extent applicable to such offer.
SECTION 4.17. Limitation on Preferred Stock of Subsidiaries.
The Company will not cause or permit any of its Restricted
Subsidiaries who are not Guarantors to issue any Preferred Stock (other than to
the Company or to a Wholly-Owned Restricted Subsidiary of the Company) or permit
any Person (other than the Company or a Wholly-Owned Restricted Subsidiary of
the Company) to own or hold any Preferred Stock of any Restricted Subsidiary of
the Company or any Lien or security interest in such Preferred Stock.
SECTION 4.18. Limitation on Incurrence of Senior Subordinated Debt.
The Company will not, and will not cause or permit any
Restricted Subsidiary that is a Guarantor to, directly or indirectly, Incur
Indebtedness that is both senior in right of payment to the Securities or such
Guarantor's Guarantee and subordinated in right of payment to any other
Indebtedness of the Company or such Guarantor, as the case may be. For purposes
of the foregoing, no Indebtedness will be deemed to be subordinated in right of
payment to any other Indebtedness of the Company or any Guarantor solely by
virtue of such Indebtedness being unsecured or by virtue of the fact that the
holders of such Indebtedness have entered into one or more intercreditor
agreements giving one or more of such holders priority over the other holders in
the collateral held by them.
SECTION 4.19. Limitation of Guarantees by Restricted Subsidiaries.
(a) The Company will not permit any of its Restricted Subsidiaries, directly or
indirectly, by way of the pledge of any intercompany note or otherwise, to
assume, guarantee or in any other manner become liable with respect to any
Indebtedness of the Company or any other Restricted Subsidiary (other than (A)
Permitted Indebtedness of a Restricted Subsidiary of the Company, (B)
Indebtedness under Currency Agreements in reliance on clause (d) of the
definition of Permitted Indebtedness, (C) Interest Swap Obligations incurred in
reliance on clause (e) of the definition of Permitted Indebtedness or (D)
guarantees by any foreign Subsidiary that guarantees Indebtedness only of other
foreign Subsidiaries under any Senior Bank Facilities), unless, in any such
case:
(1) such Restricted Subsidiary executes and delivers a
supplemental indenture to this Indenture providing a Guarantee and
(2) (a) if any such assumption, guarantee or other liability
of such Restricted Subsidiary is provided in respect of Senior
Indebtedness, the guarantee or other instrument provided by such
Restricted Subsidiary in respect of such Senior Indebtedness may be
superior to the Guarantee pursuant to subordination provisions no less
favorable to the Holders of the Securities than those contained in this
Indenture and (b) if such assumption, guarantee or other liability of
such Restricted Subsidiary is provided in respect of Indebtedness that
is expressly subordinated to the Securities, the guarantee or other
instrument provided by such Restricted Subsidiary in respect of such
subordinated Indebtedness shall be subordinated to the Guarantee
pursuant to subordination provisions no less favorable to the Holders
of the Securities than those contained in this Indenture.
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(b) Notwithstanding the foregoing, any such Guarantee by a
Restricted Subsidiary of the Securities shall provide by its terms that
it shall be automatically and unconditionally released and discharged,
without any further action required on the part of the Trustee or any
Holder, upon:
(1) the unconditional release of such Restricted
Subsidiary from its liability in respect of the Indebtedness
in connection with which such Guarantee was executed and
delivered pursuant to the preceding paragraph; or
(2) any sale or other disposition (by merger or
otherwise) to any Person which is not a Restricted Subsidiary
of the Company of all of the Company's Capital Stock in, or
all or substantially all of the assets of, such Restricted
Subsidiary; provided that (a) such sale or disposition of such
Capital Stock or assets is otherwise in compliance with the
terms of this Indenture and (b) such assumption, guarantee or
other liability of such Restricted Subsidiary has been
released by the holders of the other Indebtedness so
guaranteed.
The Trustee shall execute an appropriate instrument prepared by the
Company evidencing the release of a Guarantor from its obligations under its
Guarantee upon receipt of a request by the Company or such Guarantor accompanied
by an Officers' Certificate and an Opinion of Counsel certifying as to the
compliance with this Section 4.19(b); provided, however, that the legal counsel
delivering such Opinion of Counsel may rely as to matters of fact on one or more
Officers' Certificates of the Company.
Except as set forth in Articles Four and Five and this Section 4.19,
nothing contained in this Indenture or in any of the Securities shall prevent
any consolidation or merger of a Guarantor with or into the Company (in which
case such Guarantor shall no longer be a Guarantor) or another Guarantor or
shall prevent any sale or conveyance of the property of a Guarantor as an
entirety or substantially as an entirety to the Company or another Guarantor.
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Merger, Consolidation and Sale of Assets.
The Company will not, in a single transaction or series of
related transactions, consolidate or merge with or into any Person, or sell,
assign, transfer, lease, convey or otherwise dispose of (or cause or permit any
Restricted Subsidiary of the Company to sell, assign, transfer, lease, convey or
otherwise dispose of) all or substantially all of the Company's assets
(determined on a consolidated basis for the Company and the Company's Restricted
Subsidiaries) whether as an entirety or substantially as an entirety to any
Person unless:
(a) either
(i) the Company shall be the surviving or continuing
corporation or
(ii) the Person (if other than the Company) formed by
such consolidation or into which the Company is merged or the
Person which acquires by conveyance, transfer or lease the
properties and assets of the Company and of the Company's
Restricted Subsidiaries substantially as an entirety (the
"Surviving Entity")
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(x) shall be a corporation organized and
validly existing under the laws of the United States
or any State thereof or the District of Columbia and
(y) shall expressly assume, by supplemental
indenture (in form and substance satisfactory to the
Trustee), executed and delivered to the Trustee, the
due and punctual payment of the principal of, and
premium, if any, and interest on all of the
Securities and the performance of every covenant of
the Securities and this Indenture on the part of the
Company to be performed or observed;
(b) immediately after giving effect to such transaction and
the assumption contemplated by clause (a)(ii)(y) above (including
giving effect to any Indebtedness and Acquired Indebtedness Incurred or
anticipated to be Incurred in connection with or in respect of such
transaction), the Company or such Surviving Entity, as the case may be,
shall have a Consolidated Fixed Charge Coverage Ratio no worse than
that of the Company immediately prior thereto; provided that in
determining the "Consolidated Fixed Charge Coverage Ratio" of the
resulting transferee or surviving Person, such ratio shall be
calculated as if the transaction (including the Incurrence of any
Indebtedness or Acquired Indebtedness) took place on the first day of
the Four Quarter Period;
(c) immediately before and immediately after giving effect to
such transaction and the assumption contemplated by clause (a)(ii)(y)
above (including, without limitation, giving effect to any Indebtedness
and Acquired Indebtedness Incurred or anticipated to be Incurred and
any Lien granted in connection with or in respect of the transaction)
no Default and no Event of Default shall have occurred or be
continuing; and
(d) the Company or the Surviving Entity shall have delivered
to the Trustee an Officers' Certificate and an Opinion of Counsel, each
stating that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with the applicable
provisions of this Indenture and that all conditions precedent in this
Indenture relating to such transaction have been satisfied.
Notwithstanding the foregoing clauses (b) and (c), (1) any
Restricted Subsidiary may consolidate with, merge into or transfer all or part
of its properties and assets to the Company and (2) the Company may merge with
an Affiliate incorporated for the purpose of reincorporating the Company in
another jurisdiction in the United States to realize tax or other benefits.
For purposes of the foregoing, the transfer (by lease,
assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries of the Company, the Capital Stock of which
constitutes all or substantially all of the properties and assets of the
Company, shall be deemed to be the transfer of all or substantially all of the
properties and assets of the Company.
Upon any such consolidation, merger, conveyance, lease or
transfer in accordance with the foregoing, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
lease or transfer is made will succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor had been named as the Company therein, and
thereafter (except in the case of a sale, assignment, transfer, lease,
conveyance or other disposition) the predecessor corporation will be relieved of
all further obligations and covenants under this Indenture and the Securities.
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Each Guarantor (other than any Guarantor whose Guarantee is to
be released in accordance with the terms of the Guarantee and this Indenture in
connection with any transaction complying with the provisions of Section 4.16)
will not, and the Company will not cause or permit any Guarantor to, consolidate
with or merge with or into any Person other than the Company or any other
Guarantor unless:
(a) the entity formed by or surviving any such consolidation
or merger (if other than the Guarantor) or to which such sale, lease,
conveyance or other disposition shall have been made is a corporation
organized and existing under the laws of the United States or any State
thereof or the District of Columbia;
(b) such entity assumes by supplemental indenture all of the
obligations of the Guarantor on the Guarantee;
(c) immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing; and
(d) immediately after giving effect to such transaction and
the use of any net proceeds therefrom on a pro forma basis, the Company
could satisfy the provisions of clause (b) of the first paragraph of
this Section 5.01.
Any merger or consolidation of a Guarantor with and into the Company (with the
Company being the surviving entity) or another Guarantor need only comply with
clause (d) of the first paragraph of this Section 5.01.
SECTION 5.02. Successor Corporation Substituted.
Upon any such consolidation, merger, conveyance, lease or
transfer in accordance with the foregoing, the successor Person formed by such
consolidation or into which the Company is merged or to which such conveyance,
lease or transfer is made will succeed to, and be substituted for, and may
exercise every right and power of, the Company under this Indenture with the
same effect as if such successor had been named as the Company therein, and
thereafter (except in the case of a sale, assignment, transfer, lease,
conveyance or other disposition) the predecessor corporation will be relieved of
all further obligations and covenants under this Indenture and the Securities.
ARTICLE SIX
DEFAULT AND REMEDIES
SECTION 6.01. Events of Default.
An "Event of Default" occurs if:
(1) the Company fails to pay interest on any Security when the
same becomes due and payable and such failure continues for a period of
30 days (whether or not such payment shall be prohibited by Article
Eleven); or
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(2) the Company fails to pay the principal of or premium on
any Security when such principal becomes due and payable, whether at
maturity, upon redemption or otherwise (whether or not such payment
shall be prohibited by Article Eleven); or
(3) the Company defaults in the observance or performance of
any other covenant or agreement contained in this Indenture which
default continues for a period of 30 days after the Company receives
written notice specifying the default from the Trustee or from Holders
of at least 25% in principal amount of outstanding Securities (except
in the case of a default with respect to Sections 4.15 and 5.01, which
will constitute Events of Default with such notice but without passage
of time); or
(4) the Company or any Restricted Subsidiary defaults under
any mortgage, indenture, instrument or other agreement under which
there may be issued or by which there may be secured or evidenced any
Indebtedness of the Company or of any Restricted Subsidiary of the
Company (or the payment of which is guaranteed by the Company or any
Restricted Subsidiary of the Company), whether such Indebtedness or
guarantee now exists, or is created after the date of this Indenture,
which default (a) is caused by a failure to pay at final maturity the
principal amount of Indebtedness (after any applicable grace period
provided in such Indebtedness) (a "payment default") and such failure
continues for a period of 20 days or more, or (b) results in the
acceleration of the final maturity of such Indebtedness and such
acceleration is not rescinded, annulled or otherwise cured within 20
days of the earlier of the occurrence of such acceleration or the
receipt by the Company or any such Restricted Subsidiary of notice of
any such acceleration and, in each case, the principal amount of any
such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been payment default or the maturity
of which has been so accelerated, in each case for which the 20-day
period described above has passed, aggregates $10,000,000; or
(5) one or more judgments in an aggregate amount in excess of
$10,000,000 (which are not covered by third-party insurance or
indemnity as to which the insurer or indemnitor has not disclaimed
coverage) being rendered against the Company or any of its Restricted
Subsidiaries and such judgments remain undischarged, or unstayed or
unsatisfied for a period of 60 days after such judgment or judgments
become final and non-appealable; or
(6) the Company or any of its Significant Subsidiaries (A)
commences a voluntary case or proceeding under any Bankruptcy Law with
respect to itself, (B) consents to the entry of a judgment, decree or
order for relief against it in an involuntary case or proceeding under
any Bankruptcy Law, (C) consents to the appointment of a Custodian of
it or for substantially all of its property, (D) consents to or
acquiesces in the institution of a bankruptcy or an insolvency
proceeding against it, (E) makes a general assignment for the benefit
of its creditors, or (F) takes any corporate action to authorize or
effect any of the foregoing; or
(7) a court of competent jurisdiction enters a judgment,
decree or order for relief in respect of the Company or any of its
Significant Subsidiaries in an involuntary case or proceeding under any
Bankruptcy Law, which shall (A) approve as properly filed a petition
seeking reorganization, arrangement, adjustment or composition in
respect of the Company or any of its Significant Subsidiaries, (B)
appoint a Custodian of the Company or any of its Significant
Subsidiaries or for substantially all of its property or (C) order the
winding-up or liquidation of its affairs; and such judgment, decree or
order shall remain unstayed and in effect for a period of 60
consecutive days; or
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(8) any Guarantee of a Significant Subsidiary ceases to be in
full force and effect or any Guarantee of a Significant Subsidiary is
declared to be null and void and unenforceable or any Guarantee of a
Significant Subsidiary is found to be invalid or any Guarantor that is
a Significant Subsidiary denies its liability under its Guarantee
(other than by reason of release of a Guarantor in accordance with the
terms of this Indenture).
The Trustee shall, within 90 days after the occurrence of any
Default known to it, give to the holders of Securities notice of such Default;
provided that, except in the case of a Default in the payment of principal of or
premium, if any, or accrued and unpaid interest on any of the Securities, the
Trustee shall be protected in withholding such notice if it in good faith
determines that the withholding of such notice is in the interest of the Holders
of Securities.
SECTION 6.02. Acceleration.
If an Event of Default (other than an Event of Default
specified in either Section 6.01(6) or Section 6.01(7) as it relates to the
Company) occurs and is continuing, then and in every such case the Trustee or
the Holders of not less than 25% in aggregate principal amount of the then
outstanding Securities may declare the unpaid principal of, premium, if any, and
accrued and unpaid interest on, all the Securities then outstanding to be due
and payable, by a notice (an "Acceleration Notice") in writing to the Company
(and to the Trustee, if given by Holders) and upon such declaration such
principal amount, premium, if any, and accrued and unpaid interest (i) shall
become immediately due and payable or (ii) if there are any amounts outstanding
under the Senior Bank Facilities, shall become due and payable upon the first to
occur of an acceleration under the Senior Bank Facilities or five business days
after receipt by the Company and the Representative under the Senior Bank
Facilities of such Acceleration Notice but only if such Event of Default is then
continuing. Upon any such declaration, but subject to the immediately preceding
sentence, such amount shall be immediately due and payable. If an Event of
Default specified in Section 6.01(6) or (7) occurs as it relates to the Company,
all unpaid principal of, and premium, if any, and accrued and unpaid interest
on, the Securities then outstanding will ipso facto become due and payable
without any declaration or other act on the part of the Trustee or any Holder.
The Holders of a majority in principal amount of the Securities then outstanding
by notice to the Trustee may rescind an acceleration and its consequences if (i)
all existing Events of Default, other than the non-payment of the principal of
and premium, if any, and accrued and unpaid interest on the Securities which has
become due solely by such declaration of acceleration, have been cured or waived
and (ii) rescission would not conflict with any judgment or decree of a court of
competent jurisdiction.
SECTION 6.03. Other Remedies.
If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities or this Indenture.
The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Securityholder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in the Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative to the
extent permitted by law.
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SECTION 6.04. Waiver of Past Defaults.
Subject to Sections 2.09, 6.07 and 9.02, the Holders of not
less than a majority in principal amount of the outstanding Securities by notice
to the Trustee may waive an existing Default or Event of Default and its
consequences, except a Default in the payment of principal of or premium, if
any, or accrued and unpaid interest on any Security as specified in clauses (1)
and (2) of Section 6.01. The Company shall deliver to the Trustee an Officers'
Certificate stating that the requisite percentage of Holders have consented to
such waiver and attaching copies of such consents. When a Default or Event of
Default is waived, it is cured and ceases.
SECTION 6.05. Control by Majority.
Subject to Section 2.09, the Holders of not less than a
majority in principal amount of the outstanding Securities may direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on it. Subject to Section
7.01, however, the Trustee may refuse to follow any direction that conflicts
with any law or this Indenture, that the Trustee determines may be unduly
prejudicial to the rights of another Securityholder, or that may involve the
Trustee in personal liability; provided that the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction.
In the event the Trustee takes any action or follows any
direction pursuant to this Indenture, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against any loss or
expense caused by taking such action or following such direction.
SECTION 6.06. Limitation on Suits.
A Securityholder may not pursue any remedy with respect to
this Indenture or the Securities unless:
(1) the Holder gives to the Trustee written notice of a
continuing Event of Default;
(2) the Holder or Holders of at least 25% in principal amount
of the outstanding Securities make a written request to the Trustee to
pursue the remedy;
(3) such Holder or Holders offer and, if requested, provide to
the Trustee indemnity satisfactory to the Trustee against any loss,
liability or expense;
(4) the Trustee does not comply with the request within 60
days after receipt of the request and the offer and, if requested, the
provision of indemnity; and
(5) during such 60-day period the Holder or Holders of a
majority in principal amount of the outstanding Securities do not give
the Trustee a direction which, in the opinion of the Trustee, is
inconsistent with the request.
A Securityholder may not use this Indenture to prejudice the
rights of another Securityholder or to obtain a preference or priority over such
other Securityholder.
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SECTION 6.07. Rights of Holders To Receive Payment.
Notwithstanding any other provision of this Indenture, the
right of any Holder to receive payment of principal of and interest on a
Security, on or after the respective due dates expressed in such Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of the Holder.
SECTION 6.08. Collection Suit by Trustee.
If an Event of Default in payment of principal or interest
specified in clause (1) or (2) of Section 6.01 occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust
against the Company or any other obligor on the Securities for the whole amount
of principal and accrued interest remaining unpaid, together with interest on
overdue principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate per annum
borne by the Securities and 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.
SECTION 6.09. Trustee May File Proofs of Claim.
The Trustee may file such proofs of claim and 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 the
Securityholders allowed in any judicial proceedings relating to the Company, its
creditors or its property and shall be entitled and empowered to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same, and any Custodian in any such judicial proceedings
is hereby authorized by each Securityholder 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 Securityholders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agent and counsel, and any other amounts due the Trustee under
Section 7.07. Nothing herein contained shall be deemed to authorize the Trustee
to authorize or consent to or accept or adopt on behalf of any Securityholder
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 Securityholder in any such proceeding.
To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 7.07 out of the estate in any
such proceeding, shall be denied for any reason, payment of the same shall be
secured by a Lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties which the Holders of the
Securities may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Securityholder 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 Securityholder in any such proceeding.
SECTION 6.10. Priorities.
If the Trustee collects any money or property pursuant to this
Article Six, it shall pay out the money or property in the following order:
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First: to the Trustee for amounts due under Section 7.07;
Second: to Holders for amounts due and unpaid on the
Securities for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the
Securities for principal and interest, respectively; and
Third: to the Company or any other obligor on the Securities,
as their interests may appear, or as a court of competent jurisdiction
may direct.
The Trustee, upon prior notice to the Company, may fix a
record date and payment date for any payment to Securityholders pursuant to this
Section 6.10.
SECTION 6.11. Undertaking for Costs.
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 or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07, or a suit by a Holder or Holders of more than
10% in principal amount of the outstanding Securities.
ARTICLE SEVEN
TRUSTEE
SECTION 7.01. Duties of Trustee.
(a) If an Event of Default actually known to the Trustee 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 their exercise as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs. Subject to such
provisions, the Trustee will be under no obligation to exercise any of its
rights or powers under this Indenture at the request of any of the holders of
Securities, unless they shall have offered to the Trustee security and indemnity
satisfactory to the Trustee.
(b) Except during the continuance of an Event of Default
actually known to the Trustee:
(1) The Trustee will perform only those duties as are
specifically set forth herein and no others and no implied covenants or
obligations shall be read into this Indenture against the Trustee.
(2) In the absence of bad faith 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 and such other documents delivered to it pursuant to Section
14.04 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.
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(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 paragraph does not limit the effect of
paragraph (b) of this Section 7.01.
(2) The Trustee shall not be liable for any error of
judgment made in good faith by a Trust Officer, unless it is
proved that the Trustee was negligent in ascertaining the
pertinent facts.
(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 received by it pursuant to Section
6.05.
(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 to take
or omit to take any action under this Indenture or take any action at
the request or direction of Holders if it shall have reasonable grounds
for believing that repayment of such funds is not assured to it or it
does not receive an indemnity satisfactory to it in its sole discretion
against such risk, liability, loss, fee or expense which might be
incurred by it in compliance with such request or direction.
(e) Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is
subject to paragraphs (a), (b), (c) and (d) of this Section 7.01.
(f) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the
Company. Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law.
(g) Any provision hereof relating to the conduct or affecting
the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section 7.01 and, upon qualification
of this Indenture under the TIA, the TIA.
SECTION 7.02. Rights of Trustee.
Subject to Section 7.01:
(a) The Trustee may rely conclusively on and shall be
protected from acting or refraining from acting based upon any document
believed by it to be genuine and to have been signed or presented by
the proper person. The Trustee need not investigate any fact or matter
stated in the document.
(b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate and an Opinion of Counsel, which shall
conform to the provisions of Section 14.05. The Trustee shall not be
liable for any action it takes or omits to take in good faith in
reliance on such certificate or opinion.
(c) The Trustee may act through its attorneys and agents and
shall not be responsible for the misconduct or negligence of any agent
(other than an agent who is an employee of the Trustee) appointed with
due care.
(d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it reasonably believes to be
authorized or within its rights or powers conferred upon it by this
Indenture; provided, however, that the Trustee's conduct does not
constitute willful misconduct, negligence or bad faith.
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(e) The Trustee may consult with counsel and the advice or
opinion of such counsel as to matters of law shall be full and complete
authorization and protection from liability in respect of any action
taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.
(f) Subject to Section 9.02, the Trustee may (but shall not be
obligated to), without the consent of the Holders, give any consent,
waiver or approval required by the terms hereof, but shall not without
the consent of the Holders of not less than a majority in aggregate
principal amount of the Securities at the time outstanding (i) give any
consent, waiver or approval or (ii) agree to any amendment or
modification of this Indenture, in each case, that shall have a
material adverse effect on the interests of any Holder. The Trustee
shall be entitled to request and conclusively rely on an Officer's
Certificate with respect to whether any consent, waiver, approval,
amendment or modification shall have a material adverse effect on the
interests of any Holder.
SECTION 7.03. Individual Rights of Trustee.
The Trustee in its individual or any other capacity may become
the owner or pledgee of Securities and may otherwise deal with the Company, its
Subsidiaries, or their respective Affiliates with the same rights it would have
if it were not Trustee. Any Agent may do the same with like rights. However, the
Trustee must comply with Sections 7.10 and 7.11.
SECTION 7.04. Trustee's Disclaimer.
The Trustee shall not be responsible for and makes no
representation as to the validity, effectiveness or adequacy of this Indenture
or the Securities; it shall not be accountable for the Company's use of the
proceeds from the Securities or any money paid to the Company or upon the
Company or upon the Company's direction under any provision hereof, it shall not
be responsible for the use or application of any money received by any Paying
Agent other than the Trustee and it shall not be responsible for any statement
of the Company, in this Indenture or any document issued in connection with the
sale of Securities or any statement in the Securities other than the Trustee's
certificate of authentication. The Trustee shall be fully protected in relying
upon certificates and opinions delivered to it in accordance with the terms of
this Indenture.
SECTION 7.05. Notice of Default.
If a Default or an Event of Default occurs and is continuing
and the Trustee receives actual notice of such event, the Trustee shall mail to
each Securityholder, as their names and addresses appear on the Securityholder
list described in Section 2.05, notice of the uncured Default or Event of
Default within 90 days after the Trustee receives such notice. Except in the
case of a Default or an Event of Default in payment of principal of, or interest
on, any Security, including the failure to make payment on (i) the Change of
Control Payment Date pursuant to a Change of Control Offer or (ii) the payment
date for an Asset Sale Offer, or the Trustee may withhold the notice if and so
long as a committee of its Trust Officers in good faith determines that
withholding the notice is in the interest of the Securityholders. The Trustee
shall not be required to take notice or deemed to have notice of any default or
Event of Default hereunder except failure by the Company to make any required
payment to the Trustee and all notices or other instruments required by this
Indenture to be received by the Trustee must, in order to be effective, be
delivered at the designated Corporate Trust Office of the Trustee, and, in the
absence of such notice so delivered, the Trustee may conclusively assume there
is no default or Event of Default except as aforesaid.
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SECTION 7.06. Reports by Trustee to Holders.
This Section 7.06 shall not be operative as a part of this
Indenture until this Indenture is qualified under the TIA, and, until such
qualification, this Indenture shall be construed as if this Section 7.06 were
not contained herein.
Within 60 days after each July 15 beginning with the July 15
immediately following the date of this Indenture, the Trustee shall, to the
extent that any of the events described in TIA ss. 313(a) occurred within the
previous twelve months, but not otherwise, mail to each Securityholder a brief
report dated as of such date that complies with TIA ss. 313(a). The Trustee also
shall comply with TIA xx.xx. 313(b), 313(c) and 313(d).
A copy of each report at the time of its mailing to
Securityholders shall be mailed to the Company and filed with the SEC and each
securities exchange, if any, on which the Securities are listed.
The Company shall notify the Trustee if the Securities become
listed on any securities exchange or of any delisting thereof.
SECTION 7.07. Compensation and Indemnity.
The Company shall pay to the Trustee from time to time
reasonable compensation for its acceptance of this Indenture and services
hereunder. The Trustee's compensation shall not be limited by any law on
compensation of a trustee of an express trust. The Company shall reimburse the
Trustee upon request for all reasonable disbursements, expenses and advances
(including reasonable fees and expenses of counsel) incurred or made by it in
addition to the compensation for its services, except any such disbursements,
expenses and advances as may be attributable to the Trustee's negligence or bad
faith. Such expenses shall include the reasonable compensation, disbursements
and expenses of the Trustee's agents, accountants, experts and counsel and any
taxes or other expenses incurred by a trust created pursuant to Section 8.01.
The Company shall indemnify the Trustee for, and hold it
harmless against, any loss or liability incurred by the Trustee without
negligence, willful misconduct or bad faith on its part in connection with the
administration of this trust and its duties under this Indenture, including the
reasonable expenses and attorneys' fees of defending itself against any claim of
liability arising hereunder. The Trustee shall notify the Company promptly of
any claim asserted against the Trustee for which it may seek indemnity. However,
the failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder. The Company shall defend the claim and the
Trustee shall cooperate in the defense (and may employ its own counsel) at the
Company's expense. The Trustee may have separate counsel and the Company shall
pay the reasonable fees and expenses of such counsel; provided, however, that
the Company will not be required to pay such fees and expenses if it assumes the
Trustee's defense and there is no conflict of interest between the Company and
the Trustee as reasonably determined by the Trustee. The Company need not pay
for any settlement made without its written consent, which consent shall not be
unreasonably withheld. The Company need not reimburse any expense or indemnify
against any loss or liability incurred by the Trustee as a result of the
violation of this Indenture by the Trustee if such violation arose from the
Trustee's negligence, bad faith or willful misconduct.
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To secure the Company's payment obligations in this Section
7.07, the Trustee shall have a senior claim prior to the Securities against all
money or property held or collected by the Trustee, in its capacity as Trustee,
except money or property held in trust to pay principal of or interest on
particular Securities.
When the Trustee incurs expenses or renders services after an
Event of Default specified in clause (6) or (7) of Section 6.01 occurs, the
expenses (including the reasonable fees and expenses of its agents and counsel)
and the compensation for the services shall be preferred over the status of the
Holders in a proceeding under any Bankruptcy Law and are intended to constitute
expenses of administration under any Bankruptcy Law. The Company's obligations
under this Section 7.07 and any claim arising hereunder shall survive the
resignation or removal of any Trustee, the discharge of the Company's
obligations pursuant to Article Eight and any rejection or termination under any
Bankruptcy Law.
SECTION 7.08. Replacement of Trustee.
The Trustee may resign at any time by so notifying the Company
in writing. The Holders of a majority in principal amount of the outstanding
Securities may remove the Trustee by so notifying the Company and the Trustee in
writing and may appoint a successor trustee with the Company's consent. A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this section. The Company may remove the Trustee if:
(1) the Trustee fails to comply with Section 7.10;
(2) the Trustee is adjudged a bankrupt or an insolvent;
(3) a receiver or other public officer takes charge of the
Trustee or its property; or
(4) the Trustee becomes incapable of acting.
In addition, the Company may replace the Trustee at any time
prior to a Default, provided, however, that the Company concurrently appoints a
successor Trustee.
If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall notify each Holder of
such event and shall promptly appoint a successor Trustee. Within one year after
the successor Trustee takes office, the Holders of a majority in principal
amount of the Securities may, with the Company's consent, appoint a successor
Trustee to replace the successor Trustee appointed by the Company.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that,
the retiring Trustee shall transfer, after payment of all sums then owing to the
Trustee pursuant to Section 7.07, all property held by it as Trustee to the
successor Trustee, subject to the lien provided in Section 7.07, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture. A successor Trustee shall mail notice of its succession to each
Securityholder.
If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or the Holders of at least 10% in principal amount of the outstanding
Securities may petition any court of competent jurisdiction for the appointment
of a successor Trustee.
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If the Trustee fails to comply with Section 7.10, any
Securityholder may petition any court of competent jurisdiction for the removal
of the Trustee and the appointment of a successor Trustee.
Notwithstanding replacement of the Trustee pursuant to this
Section 7.08, the Company's obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee.
SECTION 7.09. Successor Trustee by Merger, Etc.
If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the resulting, surviving or transferee corporation without any
further act shall, if such resulting, surviving or transferee corporation is
otherwise eligible hereunder, be the successor Trustee.
SECTION 7.10. Eligibility; Disqualification.
The last paragraph of this Section shall not be operative as a
part of this Indenture until this Indenture is qualified under the TIA and until
such qualification this Indenture shall be construed as if said paragraph were
not contained herein.
The Trustee shall have a combined capital and surplus of at
least $100,000,000 as set forth in its most recent published annual report of
condition. This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss. 310(a)(1).
The Trustee shall comply with TIA ss. 310(b); provided,
however, that there shall be excluded from the operation of TIA ss. 310(b)(1)
any indenture or indentures under which other securities, or certificates of
interest or participation in other securities, of the Company are outstanding,
if the requirements for such exclusion set forth in TIA ss. 310(b)(1) are met.
SECTION 7.11. Preferential Collection of Claims Against Company.
The Trustee, in its capacity as Trustee hereunder, shall
comply with TIA ss. 311(a), excluding any creditor relationship listed in TIA
ss. 311(b). A Trustee who has resigned or been removed shall be subject to TIA
ss. 311(a) to the extent indicated.
SECTION 7.12. Appointment of Co-Trustee.
If the Trustee deems it necessary or desirable, the Trustee
may appoint a co-Trustee with such powers of the Trustee as may be designated by
the Trustee at the time of such appointment, and the Company shall, on request,
execute and deliver to such co-Trustee any deeds, conveyances or other
instruments required by such co-Trustee so appointed by the Trustee to more
fully and certainly vest in and confirm to such co-Trustee its rights, powers,
trusts, duties and obligations hereunder.
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ARTICLE EIGHT
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 8.01. Legal Defeasance and Covenant Defeasance.
(a) The Company may, at its option and at any time, elect to
have either paragraph (b) or paragraph (c) below be applied to the outstanding
Securities upon compliance with the applicable conditions set forth in paragraph
(d).
(b) Upon the Company's exercise under paragraph (a) of the
option applicable to this paragraph (b), the Company and each Guarantor shall be
deemed to have been released and discharged from its obligations with respect to
the outstanding Securities and Guarantees, respectively, on the date the
applicable conditions set forth below are satisfied (hereinafter, "Legal
Defeasance"). For this purpose, such Legal Defeasance means that the Company and
each Guarantor shall be deemed to have paid and discharged the entire
indebtedness represented by the outstanding Securities and the Guarantees,
respectively, which shall thereafter be deemed to be "outstanding" only for the
purposes of the Sections and matters under this Indenture referred to in (i) and
(ii) below, and to have satisfied all its other obligations under such
Securities and Guarantees, respectively, and this Indenture insofar as such
Securities and Guarantees, respectively, are concerned, except for the following
which shall survive until otherwise terminated or discharged hereunder: (i) the
rights of Holders of outstanding Securities to receive solely from the trust
fund described in paragraph (d) below and as more fully set forth in such
paragraph, payments in respect of the principal of and interest on such
Securities when such payments are due and (ii) obligations listed in Section
8.03, subject to compliance with this Section 8.01. The Company may exercise its
option under this paragraph (b) notwithstanding the prior exercise of its option
under paragraph (c) below with respect to the Securities.
(c) Upon the Company's exercise under paragraph (a) of the
option applicable to this paragraph (c), the Company and the Guarantors shall be
released and discharged from their respective obligations under any covenant
contained in Sections 4.03, 4.04, 4.06 through 4.19 and 5.01(b) and (c) with
respect to the outstanding Securities on and after the date the conditions set
forth below are satisfied (hereinafter, "Covenant Defeasance"), and the
Securities shall thereafter be deemed to be not "outstanding" for the purpose 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 outstanding
Securities, the Company may omit to comply with and shall have no liability in
respect of any term, condition or limitation set forth in any such covenant,
whether directly or indirectly, by reason of any reference elsewhere herein to
any such covenant or by reason of any reference in any such covenant 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 6.01(3), nor
shall any event referred to in Section 6.01(4), (5) or (8) thereafter constitute
a Default or an Event of Default thereunder but, except as specified above, the
remainder of this Indenture and such Securities shall be unaffected thereby.
(d) The following shall be the conditions to application of
either paragraph (b) or paragraph (c) above to the outstanding Securities:
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(1) The Company shall have irrevocably deposited in trust with
the Trustee, pursuant to an irrevocable trust and security agreement in
form and substance satisfactory to the Trustee, cash in U.S. dollars,
non-callable obligations of, or non-callable obligations guaranteed by,
the United States of America for the payment of which obligation or
guarantee the full faith and credit of the United States of America is
pledged ("U.S. Government Obligations") maturing as to principal and
interest in such amounts and at such times as are sufficient, without
consideration of the reinvestment of such interest and after payment of
all Federal, state and local taxes or other charges or assessments in
respect thereof payable by the Trustee, in the opinion of a nationally
recognized firm of independent public accountants expressed in a
written certification thereof (in form and substance reasonably
satisfactory to the Trustee) delivered to the Trustee, to pay the
principal of, premium, if any, and interest on the outstanding
Securities on the dates on which any such payments are due and payable
in accordance with the terms of this Indenture and of the Securities or
on the applicable Redemption Date, as the case may be;
(2) Such deposits shall not cause the Trustee to have a
conflicting interest as defined in and for purposes of the TIA;
(3) No Default or Event of Default (i) shall have occurred or
be continuing on the date of such deposit (other than a Default or
Event of Default resulting from the Incurrence of Indebtedness, all or
a portion of which will be used to defease the Securities concurrently
with such Incurrence and the grant of any Lien securing such
Indebtedness) or (ii) insofar as an Event of Default pursuant to either
Section 6.01(6) or Section 6.01(7) is concerned, shall occur on or
before the 91st day after the date of such deposit;
(4) Such deposit will not result in a Default under this
Indenture or a breach or violation of, or constitute a default under,
this Indenture, the Senior Bank Facilities or any other material
instrument or agreement to which the Company or any of its Subsidiaries
is a party or by which it or its property is bound (other than a
Default or Event of Default resulting from the Incurrence of
Indebtedness, all or a portion of which will be used to defease the
Securities concurrently with such Incurrence and the grant of any Lien
securing such Indebtedness); (i) in the event the Company elects
paragraph (b) hereof, the Company shall deliver to the Trustee an
Opinion of Counsel in the United States, in form and substance
reasonably satisfactory to the Trustee to the effect that (A) the
Company has received from, or there has been published by, the Internal
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 Counsel shall state
that, or (ii) in the event the Company elects paragraph (c) hereof, the
Company shall deliver to the Trustee an opinion of Counsel in the
United States, in form and substance reasonably satisfactory to the
Trustee, to the effect that, in the case of clauses (i) and (ii),
Holders of the Securities will not recognize income, gain or loss for
Federal income tax purposes as a result of such deposit and the
defeasance contemplated hereby and will be subject to Federal income
tax in the same amounts and in the same manner and at the same times as
would have been the case if such deposit and defeasance had not
occurred;
(5) The deposit shall not result in the Company, the Trustee
or the trust becoming or being deemed to be an "investment company"
under the Investment Company Act of 1940;
(6) The Holders shall have a perfected security interest under
applicable law in cash in U.S. dollars and/or U.S. Government
Obligations deposited pursuant to Section 8.01(d)(1);
(7) The Company shall have delivered to the Trustee an
Officers' Certificate, in form and substance reasonably satisfactory to
the Trustee, stating that the deposit under clause (i) was not made by
the Company with the intent of preferring the Holders of the Securities
over any other creditors of the Company or others or of defeating,
hindering, delaying or defrauding any other creditors of the Company or
others;
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(8) The Company shall have delivered to the Trustee an Opinion
of Counsel, in form and substance reasonably satisfactory to the
Trustee, to the effect that, (A) the trust funds will not be subject to
the rights of holders of Indebtedness of the Company other than the
Securities and (B) assuming no intervening bankruptcy of the Company
between the date of deposit and the 91st day following the deposit and
that no Holder of Securities is an insider of the Company, after the
91st day following the deposit, the trust funds will not be subject to
any applicable bankruptcy, insolvency, reorganization or similar law
affecting creditors' rights generally; and
(9) The Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that all conditions
precedent specified herein relating to the defeasance contemplated by
this Section 8.01 have been complied with.
In the event all or any portion of the Securities are to be
redeemed through such irrevocable trust, the Company must make arrangements
satisfactory to the Trustee, at the time of such deposit, for the giving of the
notice of such redemption or redemptions by the Trustee in the name and at the
expense of the Company.
SECTION 8.02. Satisfaction and Discharge.
In addition to the Company's rights under Section 8.01, the
Company may terminate all of its obligations under this Indenture, and the
obligations of each Guarantor shall terminate (subject to Section 8.03) when:
(1) either (a) all Securities theretofore authenticated and
delivered (other than Securities which have been destroyed, lost or
stolen and which have been replaced or paid as provided in Section 2.07
and Securities for whose payment money 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) have been
delivered to the Trustee for cancellation or (b) all such Securities
not theretofore delivered to the Trustee for cancellation (x) have
become due and payable by reason of the mailing of a notice of
redemption or otherwise or (y) will become due and payable within one
year, and the Company has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust solely for that
purpose an amount of money sufficient to pay and discharge the entire
Indebtedness on the Securities not theretofore delivered to the Trustee
for cancellation, for principal, interest and premium, if any;
(2) the Company has paid or caused to be paid all other sums
payable hereunder and under the Securities by the Company;
(3) the Company has delivered irrevocable instructions to the
Trustee to apply the deposited money toward the payment of the
Securities at maturity; and
(4) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, stating that all conditions
precedent specified herein relating to the satisfaction and discharge
of this Indenture have been complied with.
Notwithstanding the foregoing, the Opinion of Counsel required by clause (5)(i)
above need not be delivered if all Securities not heretofore delivered to the
Trustee for cancellation (1) have become due and payable or (2) will become due
and payable on the Maturity Date 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.
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SECTION 8.03. Survival of Certain Obligations.
Notwithstanding the satisfaction and discharge of this
Indenture and of the Securities referred to in Section 8.01 or 8.02, the
respective obligations of the Company and the Trustee under Sections 2.02, 2.03,
2.04, 2.05, 2.06, 2.07, 2.10, 2.12, 2.13, 4.01, 4.02, 6.07, Article Seven,
8.01(b), 8.05, 8.06 and 8.07 shall survive until the Securities are no longer
outstanding, and thereafter the obligations of the Company and the Trustee under
Sections 7.07, 8.05, 8.06 and 8.07 shall survive. Nothing contained in this
Article Eight shall abrogate any of the obligations or duties of the Trustee
under this Indenture.
SECTION 8.04. Acknowledgment of Discharge by Trustee.
Subject to Section 8.07, after (i) the conditions of Section
8.01 or 8.02 have been satisfied, (ii) the Company has paid or caused to be paid
all other sums payable hereunder by the Company and (iii) the Company has
delivered to the Trustee an Officers' Certificate and an Opinion of Counsel,
each stating that all conditions precedent referred to in clause (i) above
relating to the satisfaction and discharge of this Indenture have been complied
with, the Trustee upon written request shall acknowledge in writing the
discharge of the Company's obligations under this Indenture except for those
surviving obligations specified in Section 8.03.
SECTION 8.05. Application of Trust Moneys.
The Trustee shall hold any U.S. Legal Tender or U.S.
Government Obligations deposited with it in the irrevocable trust established
pursuant to Section 8.01. The Trustee shall apply the deposited U.S. Legal
Tender or the U.S. Government Obligations, together with earnings thereon,
through the Paying Agent, in accordance with this Indenture and the terms of the
irrevocable trust agreement established pursuant to Section 8.01, to the payment
of principal of and interest on the Securities.
SECTION 8.06. Repayment to the Company; Unclaimed Money.
Upon termination of the trust established pursuant to Section
8.01, the Trustee and the Paying Agent shall promptly pay to the Company upon
request any excess U.S. Legal Tender or U.S. Government Obligations held by
them. Additionally, if money for the payment of principal or interest remains
unclaimed for one year, the Trustee and the Paying Agents will pay the money
back to the Company at its request. After that, all liability of the Trustee and
such Paying Agents with respect to such money shall cease.
The Trustee and the Paying Agent shall pay to the Company upon
written request, and, if applicable, in accordance with the irrevocable trust
established pursuant to Section 8.01 or 8.02, any U.S. Legal Tender or U.S.
Government Obligations held by them for the payment of principal of or interest
on the Securities that remain unclaimed for one year after the date on which
such payment shall have become due. After payment to the Company, Holders
entitled to such payment must look to the Company for such payment as general
creditors unless an applicable abandoned property law designates another person.
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SECTION 8.07. Reinstatement.
If the Trustee or Paying Agent is unable to apply any U.S.
Legal Tender or U.S. Government Obligations in accordance with Section 8.01 or
8.02 by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the Company's obligations under this Indenture and
the Securities shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01 or 8.02 until such time as the Trustee or Paying Agent
is permitted to apply all such U.S. Legal Tender or U.S. Government Obligations
in accordance with Section 8.01 or 8.02; provided, however, that if the Company
has made any payment of interest on or principal of any Securities because of
the reinstatement of its obligations, the Company shall be subrogated to the
rights of the Holders of such Securities to receive such payment from the money
or United States Government Obligations held by the Trustee or Paying Agent.
ARTICLE NINE
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. Without Consent of Holders.
The Company or any Guarantor, as the case may be, when
authorized by a Board Resolution, and the Trustee, together, may amend or
supplement this Indenture, the Securities or the Guarantees, as the case may be,
without notice to or consent of any Securityholder:
(1) to cure any ambiguity, defect or inconsistency; provided
that such amendment or supplement does not adversely affect the rights
of any Holder;
(2) to comply with Article Five;
(3) to provide for uncertificated Securities in addition to or
in place of certificated Securities;
(4) to comply with any requirements of the SEC in connection
with the qualification of this Indenture under the TIA;
(5) to add a Guarantor under this Indenture;
(6) to evidence and provide for the acceptance of a successor
Trustee under this Indenture;
(7) to mortgage, pledge, hypothecate or grant a security
interest in favor of the Trustee for the benefit of Holders as security
for the payment and performance of the Company's or any Guarantor's
obligations under this Indenture, in any property or assets; or
(8) to make any other change that does not materially
adversely affect the rights of any Securityholders hereunder.
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SECTION 9.02. With Consent of Holders.
(a) With the written consent of the Holder or Holders of at
least a majority in aggregate principal amount of the then outstanding
Securities, subject to Section 6.07, the Company and the Guarantors, when
authorized by a Board Resolution, and the Trustee, together, may amend or
supplement this Indenture, the Securities or the Guarantee, without notice to
any other Securityholders. The Holder or Holders of a majority in aggregate
principal amount of the outstanding Securities may, subject to Section 6.07,
waive compliance by the Company with any provision of this Indenture or the
Securities without notice to any other Securityholder.
(b) Without the consent of each Securityholder affected,
however, no amendment, supplement or waiver, including a waiver pursuant to
Section 6.04, may:
(i) reduce the amount of Securities whose Holders must consent
to an amendment;
(ii) reduce the rate of or change the time for payment of
interest, including defaulted interest, on any Securities;
(iii) reduce the principal of or change the fixed maturity of
any Securities, or change the date on which any Securities may be
subject to redemption or repurchase, or reduce the redemption or
repurchase price therefor;
(iv) make any Securities payable in money other than that
stated in the Securities;
(v) make any change in provisions of this Indenture protecting
the right of each Holder to receive payment of principal of and premium
and interest on such Security on or after the due date thereof or to
bring suit to enforce such payment, or permitting Holders of a majority
in principal amount of the Securities to waive Defaults or Events of
Default;
(vi) after the Company's obligation to purchase Securities
thereunder arises, amend, modify or change the obligation of the
Company to make or consummate a Change of Control Offer, or, an Asset
Sale Offer, or waive any default in the performance thereof or modify
any of the provisions or definitions with respect to any Change of
Control Offer or Asset Sale Offer; or
(vii) modify the provisions or definitions with respect to
subordination or ranking of the Securities or any Guarantee in a way
that adversely affects the Holders of Securities; or
(viii) release any Guarantor that is a Significant Subsidiary
from any of its obligations under its Guarantee or this Indenture
otherwise in accordance with the terms of this Indenture.
It shall not be necessary for the consent of the Holders under
this Section to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
After an amendment, supplement or waiver under this Section
9.02 becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. 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.
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No amendment of, or supplement or waiver to, this Indenture
shall adversely affect the rights of the holders of any Senior Indebtedness or
Guarantor Senior Indebtedness under Article Eleven or Article Thirteen, as the
case may be (including any defined terms as used therein) without the consent of
each holder of Senior Indebtedness or Guarantor Senior Indebtedness affected
thereby.
SECTION 9.03. Compliance with TIA.
From the date on which this Indenture is qualified under the
TIA, every amendment, waiver or supplement of this Indenture or the Securities
shall comply with the TIA as then in effect.
SECTION 9.04. Revocation and Effect of Consents.
Until an amendment, waiver or supplement becomes effective, a
consent to it by a Holder is a continuing consent by the Holder and every
subsequent Holder of a Security or portion of a Security that evidences the same
debt as the consenting Holder's Security, even if notation of the consent is not
made on any Security. However, any such Holder or subsequent Holder may revoke
the consent as to his Security or portion of his Security by notice to the
Trustee or the Company received before the date on which the Trustee receives an
Officers' Certificate certifying that the Holders of the requisite principal
amount of Securities have consented (and not theretofore revoked such consent)
to the amendment, supplement or waiver.
The Company may, but shall not be obligated to, fix a record
date for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver, which record date shall be at least 30 days
prior to the first solicitation of such consent. If a record date is fixed, then
notwithstanding the last sentence of the immediately preceding paragraph, those
persons who were Holders at such record date (or their duly designated proxies),
and only those persons, shall be entitled to revoke any consent previously
given, whether or not such persons continue to be Holders after such record
date. No such consent shall be valid or effective for more than 90 days after
such record date.
After an amendment, supplement or waiver becomes effective, it
shall bind every Securityholder, unless it makes a change described in any of
clauses (i) through (viii) of Section 9.02(b), in which case the amendment,
supplement or waiver shall bind only each Holder of a Security who has consented
to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder's Security; provided that any
such waiver shall not impair or affect the right of any Holder to receive
payment of principal of and interest on a Security, on or after the respective
due dates expressed in such Security, or to bring suit for the enforcement of
any such payment on or after such respective dates without the consent of such
Holder.
SECTION 9.05. Notation on or Exchange of Securities.
If an amendment, supplement or waiver changes the terms of a
Security, the Trustee may require the Holder of the Security to deliver it to
the Trustee. The Trustee may place an appropriate notation on the Security about
the changed terms and return it to the Holder. Alternatively, if the Company or
the Trustee so determines, the Company in exchange for the Security shall issue
and the Trustee shall authenticate a new Security that reflects the changed
terms.
SECTION 9.06. Trustee To Sign Amendments, Etc.
The Trustee shall execute any amendment, supplement or waiver
authorized pursuant to this Article Nine; provided that the Trustee may, but
shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee's own rights, duties or immunities under this
Indenture. The Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel and an Officers' Certificate
each stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article Nine is authorized or permitted by this
Indenture and constituted the legal, valid and binding obligations of the
Company enforceable in accordance with its terms. Such Opinion of Counsel shall
not be an expense of the Trustee.
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ARTICLE TEN
APPLICATION OF TRUST MONEYS
SECTION 10.01. "Trust Moneys" Defined.
"Trust Moneys" means all cash or Cash Equivalents received by
the Trustee for application under this Article Ten as elsewhere provided in this
Indenture or whose disposition is not elsewhere otherwise specifically provided
for herein; provided, however, that Trust Moneys shall not include any property
deposited with the Trustee pursuant to Section 3.05, 4.15 or Article Eight or
delivered to or received by the Trustee for application in accordance with
Section 6.10. All Trust Moneys shall be held by the Trustee for the benefit of
the Holders and, said Trust Moneys shall be applied in accordance with Section
6.10.
SECTION 10.02. Withdrawal of Net Cash Proceeds Following an Asset Sale Offer.
To the extent that any Trust Moneys consist of Net Cash
Proceeds received by the Trustee pursuant to the provisions of Section 4.16 and
an Asset Sale Offer has been made in accordance therewith, such Trust Moneys may
be withdrawn by the Company and shall be paid by the Trustee to the Company (or
as otherwise directed by the Company) upon a Company Order to the Trustee and
upon receipt by the Trustee of the following:
(a) Officers' Certificate. An Officers' Certificate, dated not
more than five days prior to the payment date for an Asset Sale Offer
certifying:
(i) that (A) no Event of Default specified in Section
6.01(1), (2), (6) or (7) exists and (B) the withdrawal of such
Trust Moneys shall not result in a Default or Event of Default
hereunder;
(ii) (A) that such Trust Moneys constitute Net Cash
Proceeds, (B) that pursuant to and in accordance with Section
4.16, the Company has made an Asset Sale Offer, (C) the amount
of money to be applied to the repurchase of the Securities
pursuant to the Asset Sale Offer, (D) the amount of money to
be retained by the Company, and (E) the Purchase Date; and
(iii) that all conditions precedent and covenants
herein provided for relating to such application of Trust
Moneys have been complied with; and
(b) Compliance with TIA. All opinions, certificates and other
documentation required under the TIA, if any.
Upon compliance with the foregoing provisions of this Section
10.02, the Trustee shall apply the Trust Moneys as directed and specified by
such Company Order.
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SECTION 10.03. Withdrawal of Trust Moneys for a Related Business Investment.
To the extent that any Trust Moneys consist of Net Cash
Proceeds received by the Trustee pursuant to the provisions of Section 4.16 and
the Company intends to invest such Net Cash Proceeds in a Related Business
Investment consistent with the requirements of clause (ii)(A) of such Section
4.16 (the "Released Trust Moneys"), such Trust Moneys may be withdrawn by the
Company and shall be paid by the Trustee to the Company (or as otherwise
directed by the Company) upon a Company Order to the Trustee and upon receipt by
the Trustee of the following:
(a) Officers' Certificate. An Officers' Certificate certifying
that (i) the release of the Released Trust Moneys complies with the
terms and conditions of Section 4.16, (ii) no Event of Default
specified in Section 6.01(1), (2), (6) or (7) exists, (iii) the release
of the Released Trust Moneys will not result in a Default or Event of
Default hereunder and (iv) all conditions precedent to such release
have been complied with;
(b) Compliance with TIA and Other Documentation. All
certificates, opinions and other documentation required under the TIA,
if any.
Upon compliance with the foregoing provisions of this
Indenture, the Trustee shall apply the Released Trust Moneys as directed and
specified by such Company Order.
SECTION 10.04. Withdrawal of Trust Moneys on Basis of Retirement of
Securities.
Trust Moneys may be withdrawn by the Company to be applied to
the redemption and retirement of the Securities and shall be paid by the Trustee
to the Company (or as otherwise directed by the Company) upon a Company Order to
the Trustee and upon receipt by the Trustee of an Officers' Certificate, dated
not more than 30 days prior to the date of the application for the withdrawal
and payment of such Trust Moneys, certifying that (i) there is no Default or
Event of Default in effect or continuing on the date thereof and (ii) all
conditions precedent herein provided relating to such withdrawal and application
have been complied with.
Upon compliance with the foregoing provisions of this
Indenture, the Trustee shall apply the Trust Moneys as directed and specified by
such Company Order.
SECTION 10.05. Investment of Trust Moneys.
All or any part of any Trust Moneys held by the Trustee shall
from time to time be invested or reinvested by the Trustee in any Cash
Equivalents pursuant to the written direction of the Company, which shall
specify the Cash Equivalents in that such Trust Moneys shall be invested. Unless
an Event of Default occurs and is continuing, any interest on such Cash
Equivalents (in excess of any accrued interest paid at the time of purchase)
that may be received by the Trustee shall be forthwith paid to the Company. Such
Cash Equivalents shall be held by the Trustee, subject to the same provisions
hereof as the cash used by it to purchase such Cash Equivalents.
The Trustee shall not be liable or responsible for any loss
resulting from such investments or sales except only for its own negligent
action, its own negligent failure to act or its own willful misconduct in
complying with this Section 10.05.
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ARTICLE ELEVEN
SUBORDINATION
SECTION 11.01. Securities Subordinated to Senior Indebtedness.
The Company covenants and agrees, and the Trustee and each
Holder of the Securities, by its acceptance thereof, likewise covenants and
agrees, that all Securities shall be issued subject to the provisions of this
Article Eleven; and the Trustee and each Person holding any Security, whether
upon original issue or upon transfer, assignment or exchange thereof, accepts
and agrees that the payment of all Obligations on or with respect to the
Securities by the Company shall, to the extent and in the manner herein set
forth, be subordinated and junior in right of payment to the prior payment in
full when due, whether at stated maturity, by acceleration or otherwise, in cash
or Cash Equivalents of all Obligations on or with respect to the Senior
Indebtedness; that the subordination is for the benefit of, and shall be
enforceable directly by, the holders of Senior Indebtedness, and that each
holder of Senior Indebtedness whether now outstanding or hereafter created,
incurred, assumed or guaranteed shall be deemed to have acquired Senior
Indebtedness in reliance upon the covenants and provisions contained in this
Indenture and the Securities.
SECTION 11.02. No Payment on Securities in Certain Circumstances.
(a) If any default occurs and is continuing in the payment
when due, whether at maturity, upon redemption, by declaration or otherwise, of
any principal of, interest on, unpaid drawings for letters of credit issued in
respect of, or regularly accruing fees with respect to, any Senior Indebtedness,
no payment of any kind or character shall be made by, or on behalf of, the
Company or any other Person on its or their behalf with respect to any
obligations on the Securities, or to acquire any of the Securities for cash or
property or otherwise. In addition, if any other event of default occurs and is
continuing with respect to any Designated Senior Indebtedness, as such event of
default is defined in the instrument creating or evidencing such Designated
Senior Indebtedness, permitting the holders of such Designated Senior
Indebtedness then outstanding to accelerate the maturity thereof and if the
Representative for such Designated Senior Indebtedness gives written notice of
the event of default to the Trustee stating that such notice is a payment
blockage notice (a "Default Notice"), then, unless and until all events of
default have been cured or waived or have ceased to exist or the Trustee
receives notice thereof from the Representative for such Designated Senior
Indebtedness terminating the Blockage Period (as defined below), during the 180
days after the delivery of such Default Notice (the "Blockage Period"), neither
the Company nor any other Person on its behalf shall (x) make any payment of any
kind or character (other than a payment in the form of Permitted Junior
Securities) with respect to any Obligations on or with respect to the Securities
or (y) acquire any of the Securities for cash or property or otherwise.
Notwithstanding anything herein to the contrary, in no event will a Blockage
Period extend beyond 180 days from the date the payment on the Securities was
due and only one such Blockage Period may be commenced within any 360
consecutive days. No event of default which existed or was continuing on the
date of the commencement of any Blockage Period with respect to the Designated
Senior Indebtedness shall be, or be made, the basis for the commencement of a
second Blockage Period by the Representative of such Designated Senior
Indebtedness whether or not within a period of 360 consecutive days, unless such
event of default shall have 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 any financial covenants for a period commencing after the date of
commencement of such Blocking Period that, in either case, would give rise to an
event of default pursuant to any provisions under which an event of default
previously existed or was continuing shall constitute a new event of default for
this purpose).
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(b) In the event that, notwithstanding the foregoing, any
payment shall be received by the Trustee or any Holder when such payment is
prohibited by Section 11.02(a), such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the holders of Senior
Indebtedness (pro rata to such holders on the basis of the respective amount of
Senior Indebtedness held by such holders) or their respective Representatives,
as their respective interests may appear. The Trustee shall be entitled to rely
on information regarding amounts then due and owing on the Senior Indebtedness,
if any, received from the holders of Senior Indebtedness (or their
Representatives) or, if such information is not received from such holders or
their Representatives, from the Company and only amounts included in the
information provided to the Trustee shall be paid to the holders of Senior
Indebtedness.
(c) If payment of the Securities is accelerated because of an
Event of Default, the Company or the Trustee shall promptly notify the holders
of the Senior Indebtedness or the Representative of such holders of the
acceleration; provided that any failure to give such notice shall have no effect
whatsoever on the subordination provisions contained in this Article Eleven. If
any Indebtedness is outstanding under the Senior Bank Facilities, such
acceleration will not be effective until the time specified in Section 6.02.
Nothing contained in this Article Eleven 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 Section 6.02 or to pursue any rights or
remedies hereunder (subject to the rights, if any, under this Article Eleven, of
the holders of Senior Indebtedness in respect of cash or other property of the
Company received upon the exercise of such remedy); provided that all Senior
Indebtedness thereafter due or declared to be due shall first be paid in full in
cash or Cash Equivalents before the Holders are entitled to receive any payment
of any kind or character with respect to Obligations on or with respect to the
Securities.
SECTION 11.03. Payment Over of Proceeds upon Dissolution, Etc.
(a) Upon any payment or distribution of assets of the Company
of any kind or character , whether in cash, property or securities (other than a
payment in the form of Permitted Junior Securities), to creditors upon any
liquidation, dissolution, winding-up, reorganization, assignment for the benefit
of creditors or marshaling of assets of the Company or in a bankruptcy,
reorganization, insolvency, receivership or other similar proceeding relating to
the Company or its property, whether voluntary or involuntary, all Obligations
due or to become due upon all Senior Indebtedness shall first be paid in full in
cash or Cash Equivalents before any payment or distribution of any kind or
character (other than a payment in the form of Permitted Junior Securities) is
made on account of any Obligations on or with respect to the Securities, or for
the acquisition of any of the Securities for cash or property or otherwise;
provided, however, that no payment on the Guarantee shall constitute payment on
behalf of the Company for purposes of this Section 11.03(a). Upon any such
dissolution, winding-up, liquidation, reorganization, receivership or similar
proceeding, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which the Holders of the
Securities or the Trustee under this Indenture would be entitled, except for the
provisions hereof, shall be paid by the Company or by any receiver, trustee in
bankruptcy, liquidating trustee, agent or other Person making such payment or
distribution, or by the Holders or by the Trustee under this Indenture if
received by them, directly to the holders of Senior Indebtedness (pro rata to
such holders on the basis of the respective amounts of Senior Indebtedness held
by such holders) or their respective Representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness
may have been issued, as their respective interests may appear, for application
to the payment of Senior Indebtedness remaining unpaid until all such Senior
Indebtedness has been paid in full in cash or Cash Equivalents after giving
effect to any concurrent payment, distribution or provision therefor to or for
the holders of Senior Indebtedness.
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(b) To the extent any payment of Senior Indebtedness (whether
by or on behalf of the Company, as proceeds of security or enforcement of any
right of setoff or otherwise) is declared to be fraudulent or preferential, set
aside or required to be paid to any receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person under any bankruptcy, insolvency,
receivership, fraudulent conveyance or similar law, then, if such payment is
recovered by, or paid over to, such receiver, trustee in bankruptcy, liquidating
trustee, agent or other similar Person, the Senior Indebtedness or part thereof
originally intended to be satisfied shall be deemed to be reinstated and
outstanding as if such payment had not occurred. It is further agreed that any
dimunition (whether pursuant to court decree or otherwise, including, without
limitation, for any of the reasons described in the preceeding sentence) of the
Company's obligation to make any distribution or payment pursuant to any Senior
Indebtedness, except to the extent such diminution occurs by reason of the
repayment (which has not been disgorged or returned) of such Senior Indebtedness
in cash or Cash Equivalents, shall have no force or effect for purposes of the
subordination provisions contained in this Article Eleven, with any turnover of
payments as otherwise calculated pursuant to this Article Eleven to be made as
if no such diminution has occurred.
(c) In the event that, notwithstanding the foregoing, any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, shall be received by the Trustee or any
Holder when such payment or distribution is prohibited by Section 11.03(a), such
payment or distribution shall be held in trust for the benefit of, and shall be
paid over or delivered to, the holders of Senior Indebtedness (pro rata to such
holders on the basis of the respective amount of Senior Indebtedness held by
such holders) or their respective Representatives, or to the trustee or trustees
under any indenture pursuant to which any of such Senior Indebtedness may have
been issued, as their respective interests may appear, for application to the
payment of Senior Indebtedness remaining unpaid until all such Senior
Indebtedness has been paid in full in cash or Cash Equivalents, after giving
effect to any concurrent payment, distribution or provision therefor to or for
the holders of such Senior Indebtedness.
(d) The consolidation of the Company with, or the merger of
the Company with or into, another corporation or the liquidation or dissolution
of the Company following the conveyance or transfer of all or substantially all
of its assets, to another corporation upon the terms and conditions provided in
Article Five and as long as permitted under the terms of the Senior Indebtedness
shall not be deemed a dissolution, winding-up, liquidation or reorganization for
the purposes of this Section if such other corporation shall, as a part of such
consolidation, merger, conveyance or transfer, assume the Company's obligations
hereunder in accordance with Article Five.
SECTION 11.04. Payments May Be Paid Prior to Dissolution.
Nothing contained in this Article Eleven or elsewhere in this
Indenture shall prevent (i) the Company, except under the conditions described
in Sections 11.02 and 11.03, from making payments at any time for the purpose of
making payments of principal of and interest on the Securities, or from
depositing with the Trustee any moneys for such payments, or (ii) in the absence
of actual knowledge by the Trustee that a given payment would be prohibited by
Section 11.02 or 11.03, the application by the Trustee of any moneys deposited
with it for the purpose of making such payments of principal of, and interest
on, the Securities to the Holders entitled thereto unless at least one Business
Day prior to the date upon which such payment would otherwise become due and
payable, the Trustee shall have received the written notice provided for in
Section 11.02(a) or in Section 11.07; provided that, notwithstanding the
foregoing, the subordination of the Securities to Senior Indebtedness shall not
be affected and the Holders receiving any payments made in contravention of
Section 11.02 and/or Section 11.03 shall otherwise be subject to this Article
Eleven. The Company shall give prompt written notice to the Trustee of any
dissolution, winding-up, liquidation or reorganization of the Company, although
any delay or failure to give any such notice shall have no effect on the
subordination provisions of this Article Eleven.
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SECTION 11.05. Subrogation.
Subject to the payment in full in cash or Cash Equivalents of
all Senior Indebtedness, the Holders of the Securities shall be subrogated to
the rights of the holders of Senior Indebtedness to receive payments or
distributions of cash, property or securities of the Company applicable to the
Senior Indebtedness until the Securities shall be paid in full; and, for the
purposes of such subrogation, no such payments or distributions to the holders
of the Senior Indebtedness by or on behalf of the Company or by or on behalf of
the Holders by virtue of this Article Eleven which otherwise would have been
made to the Holders shall, as between the Company and the Holders of the
Securities, be deemed to be a payment by the Company to or on account of the
Senior Indebtedness, it being understood that the provisions of this Article
Eleven are and 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 the
Senior Indebtedness, on the other hand.
SECTION 11.06. Obligations of the Company Unconditional.
Nothing contained in this Article Eleven or elsewhere in this
Indenture or in the Securities is intended to or shall impair, as among the
Company, its creditors other than the holders of Senior Indebtedness, and the
Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders the principal of and any interest on the Securities as and
when the same shall become due and payable in accordance with their terms, or is
intended to or shall affect the relative rights of the Holders and creditors of
the Company other than the holders of the Senior Indebtedness, nor shall
anything herein or therein prevent the Holder of any Security or the Trustee on
its behalf from exercising all remedies otherwise permitted by applicable law
upon default under this Indenture, subject to the rights, if any, in respect of
cash, property or securities of the Company received upon the exercise of any
such remedy.
SECTION 11.07. Notice to Trustee.
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 pursuant to the provisions of
this Article Eleven, although any delay or failure to give any such notice shall
have no effect on the subordination provisions of this Article Eleven.
Regardless of anything to the contrary contained in this Article Eleven or
elsewhere in this Indenture, the Trustee shall not be charged with knowledge of
the existence of any default or event of default with respect to any Senior
Indebtedness or of any other facts which would prohibit the making of any
payment to or by the Trustee unless and until the Trustee shall have received
notice in writing from the Company, or from a holder of Senior Indebtedness or a
Representative therefor, and, prior to the receipt of any such written notice,
the Trustee shall be entitled to assume (in the absence of actual knowledge to
the contrary) that no such facts exist; provided that, notwithstanding the
foregoing, the Holders receiving any payments made in contravention of Section
11.02 and/or Section 11.03 shall otherwise be subject to the provisions of
Article Eleven.
In the event that the Trustee determines in good faith that
any 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 Eleven, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amounts 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 Eleven, 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.
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SECTION 11.08. Reliance on Judicial Order or Certificate of Liquidating
Agent.
Upon any payment or distribution of assets of the Company
referred to in this Article Eleven, the Trustee, subject to the provisions of
Article Seven, and the Holders of the Securities shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction in which
bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings
are pending, or upon a certificate of the receiver, trustee in bankruptcy,
liquidating trustee, agent or other person making such payment or distribution,
delivered to the Trustee or the Holders of the Securities, for the purpose of
ascertaining the persons entitled to participate in such distribution, the
holders of the Senior 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 Eleven.
SECTION 11.09. Trustee's Relation to Senior Indebtedness.
The Trustee and any agent of the Company or the Trustee shall
be entitled to all the rights set forth in this Article Eleven with respect to
any Senior Indebtedness which may at any time be held by it in its individual or
any other capacity to the same extent as any other holder of Senior Indebtedness
and nothing in this Indenture shall deprive the Trustee or any such agent of any
of its rights as such holder.
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 Eleven, and no implied
covenants or obligations with respect to the holders of Senior Indebtedness
shall be read into this Indenture against the Trustee. The Trustee shall not be
deemed to owe any fiduciary duty to the holders of Senior Indebtedness, and
shall not be liable to any such holders if the Trustee shall pay over or
distribute to or on behalf of Securityholders or the Company or any other person
money or assets to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article Eleven, except if such payment is made as a result of the
willful misconduct or gross negligence of the Trustee.
Whenever a distribution is to be made or a notice given to
holders or owners of Senior Indebtedness, the distribution may be made and the
notice may be given to their Representative, if any.
SECTION 11.10. Subordination Rights Not Impaired by Acts or Omissions
of the Company or Holders of Senior Indebtedness.
No right of any present or future holders of any Senior
Indebtedness to enforce subordination as provided herein 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 noncompliance by the Company with the terms of this Indenture,
regardless of any knowledge thereof which any such holder may have or otherwise
be charged with.
Without in any way limiting the generality of the foregoing
paragraph, 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, without
incurring responsibility to the Trustee or the Holders of the Securities and
without impairing or releasing the subordination provided in this Article Eleven
or the obligations hereunder of the Holders of the Securities to the holders of
the Senior Indebtedness, do any one or more of the following: (i) change the
manner, place or terms of payment or extend the time of payment of, or renew or
alter, Senior Indebtedness, or otherwise amend or supplement in any manner
Senior Indebtedness, or any instrument evidencing the same or any agreement
under which Senior Indebtedness is outstanding; (ii) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing Senior
Indebtedness; (iii) release any Person liable in any manner for the payment or
collection of Senior Indebtedness; and (iv) exercise or refrain from exercising
any rights against the Company and any other Person.
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SECTION 11.11. Holders Authorize Trustee To Effectuate Subordination of
Securities.
Each Holder of Securities by its acceptance of them authorizes
and expressly directs the Trustee on its behalf to take such action as may be
necessary or appropriate to effectuate, as between the holders of Senior
Indebtedness and the Holders of Securities, the subordination provided in this
Article Eleven, and appoints the Trustee its attorney-in-fact for such purposes,
including, in the event of any dissolution, winding-up, liquidation or
reorganization of the Company (whether in bankruptcy, insolvency, receivership,
reorganization or similar proceedings or upon an assignment for the benefit of
creditors or otherwise) tending towards liquidation of the business and assets
of the Company, the filing of a claim for the unpaid balance of its Securities
and accrued interest in the form required in those proceedings.
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 Representative are or is hereby authorized to have the
right to file and are or is 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 Indebtedness or
their Representative 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 or the holders of Senior Indebtedness or their Representative to
vote in respect of the claim of any Holder in any such proceeding.
SECTION 11.12. This Article Eleven Not To Prevent Events of Default.
The failure to make a payment on account of principal of or
interest on the Securities by reason of any provision of this Article Eleven
will not be construed as preventing the occurrence of an Event of Default.
SECTION 11.13. Trustee's Compensation Not Prejudiced.
Nothing in this Article Eleven will apply to amounts due to
the Trustee pursuant to other sections in this Indenture.
ARTICLE TWELVE
GUARANTEE
SECTION 12.01. Unconditional Guarantee.
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Each Guarantor hereby unconditionally guarantees (such
guarantee to be referred to herein as the "Guarantee"), subject to Article
Thirteen, to each Holder of a Security authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, the Securities or the
Obligations of the Company hereunder or thereunder, that: (i) the principal of
and interest on the Securities will be promptly paid in full when due, subject
to any applicable grace period, whether at maturity, by acceleration or
otherwise and interest on the overdue principal, if any, and interest on any
interest, to the extent lawful, of the Securities and all other obligations of
the Company to the Holders or the Trustee hereunder or thereunder will be
promptly paid in full or performed, all in accordance with the terms hereof and
thereof; and (ii) in case of any extension of time of payment or renewal of any
Securities or of any such other obligations, the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, subject to any applicable grace period, whether at stated maturity, by
acceleration or otherwise, subject, however, in the case of clauses (i) and (ii)
above, to the limitations set forth in Section 12.04. Each Guarantor hereby
agrees that its obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Securities or this Indenture,
the absence of any action to enforce the same, any waiver or consent by any
Holder of the Securities with respect to any provisions hereof or thereof, the
recovery of any judgment against the Company, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest, notice and all demands whatsoever and covenants
that this Guarantee will not be discharged except by complete performance of the
obligations contained in the Securities, this Indenture and in this Guarantee.
If any Securityholder or the Trustee is required by any court or otherwise to
return to the Company, any Guarantor, or any custodian, trustee, liquidator or
other similar official acting in relation to the Company or any Guarantor, any
amount paid by the Company or any Guarantor to the Trustee or such
Securityholder, this Guarantee, to the extent theretofore discharged, shall be
reinstated in full force and effect. Each Guarantor further agrees that, as
between such Guarantor, on the one hand, and the Holders and the Trustee, on the
other hand, (x) the maturity of the obligations guaranteed hereby may be
accelerated as provided in Article Six for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (y) in the
event of any acceleration of such obligations as provided in Article Six, such
obligations (whether or not due and payable) shall forthwith become due and
payable by such Guarantor for the purpose of this Guarantee.
SECTION 12.02. Subordination of Guarantee.
The obligations of each Guarantor to the Holders of Securities
and to the Trustee pursuant to the Guarantee and this Indenture are expressly
subordinate and subject in right of payment to the prior payment in full in cash
or Cash Equivalents of all Guarantor Senior Indebtedness of such Guarantor, to
the extent and in the manner provided in Article Thirteen.
SECTION 12.03. Severability.
In case any provision of this Guarantee 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 12.04. Limitation of Guarantors' Liability.
Each Guarantor and each Holder by its acceptance of a Security
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 each Guarantor
hereby irrevocably agree that the obligations of such Guarantor under the
Guarantee shall be limited to the maximum amount as will, after giving effect to
all other contingent and fixed liabilities of such Guarantor (including, but not
limited to, the Guarantor Senior Indebtedness of such Guarantor), result in the
obligations of such Guarantor under the Guarantee not constituting such
fraudulent transfer or conveyance.
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SECTION 12.05. Waiver of Subrogation.
Until all Guarantee Obligations are paid in full each
Guarantor hereby irrevocably waives any claim or other rights which it may now
or hereafter acquire against the Company that arise from the existence, payment,
performance or enforcement of such Guarantor's obligations under the Guarantee
and this Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right to participate in any
claim or remedy of any Holder of Securities against the Company, whether or not
such claim, remedy or right arises in equity, or under contract, statute or
common law, including, without limitation, the right to take or receive from the
Company, directly or indirectly, in cash or other property or by set-off or in
any other manner, payment or security on account of such claim or other rights.
If any amount shall be paid to any Guarantor in violation of the preceding
sentence and the Securities shall not have been paid in full, such amount shall
have been deemed to have been paid to such Guarantor for the benefit of, and
held in trust for the benefit of, the Holders of the Securities, and shall,
subject to the provisions of Section 12.02, Article Eleven and Article Thirteen,
forthwith be paid to the Trustee for the benefit of such Holders to be credited
and applied upon the Securities, whether matured or unmatured, in accordance
with the terms of this Indenture. Each Guarantor acknowledges that it will
receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this Section
12.05 is knowingly made in contemplation of such benefits.
SECTION 12.06. Execution of Guarantee.
To evidence its guarantee to the Securityholders set forth in
this Article Twelve, each Guarantor hereby agrees to execute the Guarantee in
substantially the form included in Exhibit A, which shall be endorsed on each
Security ordered to be authenticated and delivered by the Trustee. Each
Guarantor hereby agrees that its Guarantee set forth in this Article Twelve
shall remain in full force and effect notwithstanding any failure to endorse on
each Security a notation of such Guarantee. Each such Guarantee shall be signed
on behalf of such Guarantor by two Officers, or an Officer and an Assistant
Secretary or one Officer shall sign and one officer or an Assistant Secretary
(each of whom shall, in each case, have been duly authorized by all requisite
corporate actions) shall attest to such Guarantee prior to the authentication of
the Security on which it is endorsed, and the delivery of such Security by the
Trustee, after the authentication thereof hereunder, shall constitute due
delivery of such Guarantee on behalf of such Guarantor. Such signatures upon the
Guarantee may be by manual or facsimile signature of such officers and may be
imprinted or otherwise reproduced on the Guarantee, and in case any such officer
who shall have signed the Guarantee shall cease to be such officer before the
Security on which such Guarantee is endorsed shall have been authenticated and
delivered by the Trustee or disposed of by the Company, such Security
nevertheless may be authenticated and delivered or disposed of as though the
person who signed the Guarantee had not ceased to be such officer of such
Guarantor.
SECTION 12.07. Waiver of Stay, Extension or Usury Laws.
Each Guarantor covenants (to the extent that it may lawfully
do so) that it will not at any time insist upon, plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
or any usury law or other law that would prohibit or forgive such Guarantor from
performing its Guarantee as contemplated herein, wherever enacted, now or at any
time hereafter in force, or which may affect the covenants or the performance of
this Indenture; and (to the extent that it may lawfully do so) each Guarantor
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.
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ARTICLE THIRTEEN
SUBORDINATION OF GUARANTEE OBLIGATIONS
SECTION 13.01. Guarantee Obligations Subordinated to Senior Indebtedness.
Each Guarantor covenants and agrees, and the Trustee and each
Holder of the Securities, by its acceptance thereof, likewise covenants and
agrees, that all Guarantees shall be issued subject to the provisions of this
Article Thirteen; and the Trustee and each Person holding any Security, whether
upon original issue or upon transfer, assignment or exchange thereof, accepts
and agrees that the payment of all Obligations on with respect to the Guarantee
(the "Guarantee Obligations") by such Guarantor shall, to the extent and in the
manner herein set forth, be subordinated and junior in right of payment to the
prior payment in full when due, whether at stated maturity, by acceleration or
otherwise, in cash or Cash Equivalents of all Obligations on or with respect to
Guarantor Senior Indebtedness; that the subordination is for the benefit of, and
shall be enforceable directly by, the holders of Guarantor Senior Indebtedness,
and that each holder of Guarantor Senior Indebtedness whether now outstanding or
hereafter created, incurred, assumed or guaranteed shall be deemed to have
acquired Guarantor Senior Indebtedness in reliance upon the covenants and
provisions contained in this Indenture and the Securities.
SECTION 13.02. No Payment on Guarantee Obligations in Certain Circumstances.
(a) If any default occurs and is continuing in the payment
when due, whether at maturity, upon redemption, by declaration or otherwise, of
any principal of, interest on, unpaid drawings for letters of credit issued in
respect of, or regularly accruing fees with respect to, any Guarantor Senior
Indebtedness, no payment of any kind or character shall be made by, or on behalf
of, any Guarantor or any other Person on its or their behalf with respect to any
Guarantee Obligations, or to acquire any of the Securities for cash or property
or otherwise. In addition, at any time any Blockage Period is in existence,
neither any Guarantor nor any Person on any Guarantor's behalf (x) may make any
payment of any kind or character with respect to any Obligations on its
Guarantee or (y) acquire any of the Securities for cash, property or otherwise.
(b) In the event that, notwithstanding the foregoing, any
payment shall be received by the Trustee or any Holder when such payment is
prohibited by Section 13.02(a), such payment shall be held in trust for the
benefit of, and shall be paid over or delivered to, the holders of Guarantor
Senior Indebtedness (pro rata to such holders on the basis of the respective
amount of Guarantor Senior Indebtedness held by such holders) or their
respective Representatives, as their respective interests may appear. The
Trustee shall be entitled to rely on information regarding amounts then due and
owing on the Guarantor Senior Indebtedness, if any, received from the holders of
Guarantor Senior Indebtedness (or their Representatives) or, if such information
is not received from such holders or their Representatives, from such Guarantor
and only amounts included in the information provided to the Trustee shall be
paid to the holders of Guarantor Senior Indebtedness.
(c) If payment of the Securities or the Guarantees is
accelerated because of an Event of Default, the Guarantors or the Trustee shall
promptly notify the holders of the Guarantor Senior Indebtedness or the
Representative of such holders of the acceleration; provided that any failure to
give such notice shall have no effect whatsoever on the subordination provisions
contained in this Article Thirteen. If any Indebtedness is outstanding under the
Senior Bank Facilities, such acceleration will not be effective until the time
specified in Section 6.02.
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Nothing contained in this Article Thirteen 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 Section 6.02 or to pursue
any rights or remedies hereunder (subject to the rights, if any, under this
Article Thirteen, of the holders of Guarantor Senior Indebtedness in respect of
cash or other property of any Guarantor received upon the exercise of such
remedy); provided that all Guarantor Senior Indebtedness thereafter due or
declared to be due shall first be paid in full in cash or Cash Equivalents
before the Holders are entitled to receive any payment of any kind or character
with respect to the Guarantee Obligations.
SECTION 13.03. Payment Over of Proceeds upon Dissolution, Etc.
(a) Upon any payment or distribution of assets of any
Guarantor of any kind or character, whether in cash, property or securities, to
creditors upon any liquidation, dissolution, winding-up, reorganization,
assignment for the benefit of creditors or marshaling of assets of such
Guarantor or in a bankruptcy, reorganization, insolvency, receivership or other
similar proceeding relating to such Guarantor or its property, whether voluntary
or involuntary, all Obligations due or to become due upon all Guarantor Senior
Indebtedness shall first be paid in full in cash or Cash Equivalents, before any
payment or distribution of any kind or character is made on account of any
Guarantee Obligations, or for the acquisition of any of the Securities for cash
or property or otherwise. Upon any such dissolution, winding-up, liquidation,
reorganization, receivership or similar proceeding, any payment or distribution
of assets of such Guarantor of any kind or character, whether in cash, property
or securities, to which the Holders of the Securities or the Trustee under this
Indenture would be entitled, except for the provisions hereof, shall be paid by
such Guarantor or by any receiver, trustee in bankruptcy, liquidating trustee,
agent or other Person making such payment or distribution, or by the Holders or
by the Trustee under this Indenture if received by them, directly to the holders
of Guarantor Senior Indebtedness (pro rata to such holders on the basis of the
respective amounts of Guarantor Senior Indebtedness held by such holders) or
their respective Representatives, or to the trustee or trustees under any
indenture pursuant to which any of such Guarantor Senior Indebtedness may have
been issued, as their respective interests may appear, for application to the
payment of Guarantor Senior Indebtedness remaining unpaid until all such
Guarantor Senior Indebtedness has been paid in full in cash or Cash Equivalents
after giving effect to any concurrent payment, distribution or provision
therefor to or for the holders of Guarantor Senior Indebtedness.
(b) To the extent any payment of Guarantor Senior Indebtedness
(whether by or on behalf of any Guarantor, as proceeds of security or
enforcement of any right of setoff or otherwise) is declared to be fraudulent or
preferential, set aside or required to be paid to any receiver, trustee in
bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law,
then, if such payment is recovered by, or paid over to, such receiver, trustee
in bankruptcy, liquidating trustee, agent or other similar Person, the Guarantor
Senior Indebtedness or part thereof originally intended to be satisfied shall be
deemed to be reinstated and outstanding as if such payment had not occurred. It
is further agreed that any dimunition (whether pursuant to court decree or
otherwise, including, without limitation, for any of the reasons described in
the preceeding sentence) of any Guarantor's obligation to make any distribution
or payment pursuant to any Guarantor Senior Indebtedness, except to the extent
such diminution occurs by reason of the repayment (which has not been disgorged
or returned) of such Guarantor Senior Indebtedness in cash or Cash Equivalents,
shall have no force or effect for purposes of the subordination provisions
contained in this Article Thirteen, with any turnover of payments as otherwise
calculated pursuant to this Article Thirteen to be made as if no such diminution
has occurred.
-85-
(c) In the event that, notwithstanding the foregoing, any
payment or distribution of assets of such Guarantor of any kind or character,
whether in cash, property or securities, shall be received by the Trustee or any
Holder when such payment or distribution is prohibited by Section 13.03(a), such
payment or distribution shall be held in trust for the benefit of, and shall be
paid over or delivered to, the holders of Guarantor Senior Indebtedness (pro
rata to such holders on the basis of the respective amount of Guarantor Senior
Indebtedness held by such holders) or their respective Representatives, or to
the trustee or trustees under any indenture pursuant to which any of such
Guarantor Senior Indebtedness may have been issued, as their respective
interests may appear, for application to the payment of Guarantor Senior
Indebtedness remaining unpaid until all such Guarantor Senior Indebtedness has
been paid in full in cash or Cash Equivalents, after giving effect to any
concurrent payment, distribution or provision therefor to or for the holders of
such Guarantor Senior Indebtedness.
(d) The consolidation of any Guarantor with, or the merger of
such Guarantor with or into, another corporation or the liquidation or
dissolution of such Guarantor following the conveyance or transfer of all or
substantially all of its assets, to another corporation upon the terms and
conditions provided in Article Five and as long as permitted under the terms of
the Guarantor Senior Indebtedness shall not be deemed a dissolution, winding-up,
liquidation or reorganization for the purposes of this Section if such other
corporation shall, as a part of such consolidation, merger, conveyance or
transfer, assume such Guarantor's obligations hereunder in accordance with
Article Five.
SECTION 13.04. Payments May Be Paid Prior to Dissolution.
Nothing contained in this Article Thirteen or elsewhere in
this Indenture shall prevent (i) any Subsidiary Guarantor, except under the
conditions described in Sections 13.02 and 13.03, from making payments at any
time for the purpose of making payments of principal of and interest on the
Securities, or from depositing with the Trustee any moneys for such payments, or
(ii) in the absence of actual knowledge by the Trustee that a given payment
would be prohibited by Section 13.02 or 13.03, the application by the Trustee of
any moneys deposited with it for the purpose of making such payments of
principal of, and interest on, the Securities to the Holders entitled thereto
unless at least one Business Day prior to the date upon which such payment would
otherwise become due and payable, the Trustee shall have received the written
notice provided for in Section 13.02(a) or in Section 13.07; provided that,
notwithstanding the foregoing, the subordination of the Securities to Guarantor
Senior Indebtedness shall not be affected and the Holders receiving any payments
made in contravention of Section 13.02 and/or Section 13.03 shall otherwise be
subject to this Article Thirteen. Each Subsidiary Guarantor shall give prompt
written notice to the Trustee of any dissolution, winding-up, liquidation or
reorganization of such Subsidiary Guarantor, although any delay or failure to
give any such notice shall have no effect on the subordination provisions of
this Article Thirteen.
SECTION 13.05. Subrogation.
Subject to the payment in full in cash or Cash Equivalents of
all Guarantor Senior Indebtedness, the Holders of the Securities shall be
subrogated to the rights of the holders of Guarantor Senior Indebtedness to
receive payments or distributions of cash, property or securities of such
Guarantor applicable to the Guarantor Senior Indebtedness until the Securities
shall be paid in full; and, for the purposes of such subrogation, no such
payments or distributions to the holders of the Guarantor Senior Indebtedness by
or on behalf of any Guarantor or by or on behalf of the Holders by virtue of
this Article Thirteen which otherwise would have been made to the Holders shall,
as between such Guarantor and the Holders of the Securities, be deemed to be a
payment by such Guarantor to or on account of the Guarantor Senior Indebtedness,
it being understood that the provisions of this Article Thirteen are and 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 the Guarantor Senior
Indebtedness, on the other hand.
-86-
SECTION 13.06. Obligations of Guarantors Unconditional.
Nothing contained in this Article Thirteen or elsewhere in
this Indenture or in the Securities is intended to or shall impair, as among any
Guarantor, its creditors other than the holders of Guarantor Senior
Indebtedness, and the Holders, the obligation of such Guarantor, which is
absolute and unconditional, to make payments in respect of its Guarantee as and
when the same shall become due and payable in accordance with the terms of the
Guarantee, or is intended to or shall affect the relative rights of the Holders
and creditors of such Guarantor other than the holders of the Guarantor Senior
Indebtedness, nor shall anything herein or therein prevent the Holder of any
Security or the Trustee on its behalf from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, in respect of cash, property or securities of such Guarantor
received upon the exercise of any such remedy.
SECTION 13.07. Notice to Trustee.
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 the Securities pursuant to the
provisions of this Article Thirteen, although any delay or failure to give any
such notice shall have no effect on the subordination provisions contained
herein. Regardless of anything to the contrary contained in this Article
Thirteen or elsewhere in this Indenture, the Trustee shall not be charged with
knowledge of the existence of any default or event of default with respect to
any Guarantor Senior Indebtedness or of any other facts which would prohibit the
making of any payment to or by the Trustee unless and until the Trustee shall
have received notice in writing from such Guarantor, or from a holder of
Guarantor Senior Indebtedness or a Representative therefor, and, prior to the
receipt of any such written notice, the Trustee shall be entitled to assume (in
the absence of actual knowledge to the contrary) that no such facts exist;
provided that, notwithstanding the foregoing, the Holders receiving any payments
made in contravention of Section 13.02 and/or Section 13.03 shall otherwise be
subject to the provisions of Article Thirteen.
In the event that the Trustee determines in good faith that
any evidence is required with respect to the right of any Person as a holder of
Guarantor Senior Indebtedness to participate in any payment or distribution
pursuant to this Article Thirteen, the Trustee may request such Person to
furnish evidence to the reasonable satisfaction of the Trustee as to the amounts
of Guarantor 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 Eleven, 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 13.08. Reliance on Judicial Order or Certificate of Liquidating
Agent.
Upon any payment or distribution of assets of any Guarantor
referred to in this Article Thirteen, the Trustee, subject to the provisions of
Article Six, and the Holders of the Securities shall be entitled to rely upon
any order or decree made by any court of competent jurisdiction in which
bankruptcy, dissolution, winding-up, liquidation or reorganization proceedings
are pending, or upon a certificate of the receiver, trustee in bankruptcy,
liquidating trustee, agent or other person making such payment or distribution,
delivered to the Trustee or the Holders of the Securities, for the purpose of
ascertaining the persons entitled to participate in such distribution, the
holders of the Guarantor Senior 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
Thirteen.
-87-
SECTION 13.09. Trustee's Relation to Guarantor Senior Indebtedness.
The Trustee and any agent of any Guarantor or the Trustee
shall be entitled to all the rights set forth in this Article Thirteen with
respect to any Guarantor Senior Indebtedness which may at any time be held by it
in its individual or any other capacity to the same extent as any other holder
of Guarantor Senior Indebtedness and nothing in this Indenture shall deprive the
Trustee or any such agent of any of its rights as such holder.
With respect to the holders of Guarantor 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 Thirteen, and no
implied covenants or obligations with respect to the holders of Guarantor Senior
Indebtedness shall be read into this Indenture against the Trustee. The Trustee
shall not be deemed to owe any fiduciary duty to the holders of Guarantor Senior
Indebtedness, and shall not be liable to any such holders if the Trustee shall
pay over or distribute to or on behalf of Securityholders or the Company or any
other person money or assets to which any holders of Guarantor Senior
Indebtedness shall be entitled by virtue of this Article Thirteen, except if
such payment is made as a result of the willful misconduct or gross negligence
of the Trustee.
Whenever a distribution is to be made or a notice given to
holders or owners of Guarantor Senior Indebtedness, the distribution may be made
and the notice may be given to their Representative, if any.
SECTION 13.10. Subordination Rights Not Impaired by Acts or Omissions of
Guarantors or Holders of Guarantor Senior Indebtedness.
No right of any present or future holders of any Guarantor
Senior Indebtedness to enforce subordination as provided herein 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 noncompliance by such Guarantor with the terms of this
Indenture, regardless of any knowledge thereof which any such holder may have or
otherwise be charged with.
Without in any way limiting the generality of the foregoing
paragraph, the holders of Guarantor Senior Indebtedness may, at any time and
from time to time, without the consent of or notice to the Trustee or the
Holders, without incurring responsibility to the Trustee or the Holders of the
Securities and without impairing or releasing the subordination provided in this
Article Thirteen or the obligations hereunder of the Holders of the Securities
to the holders of the Guarantor Senior Indebtedness, do any one or more of the
following: (i) change the manner, place or terms of payment or extend the time
of payment of, or renew or alter, Guarantor Senior Indebtedness, or otherwise
amend or supplement in any manner Guarantor Senior Indebtedness, or any
instrument evidencing the same or any agreement under which Guarantor Senior
Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with
any property pledged, mortgaged or otherwise securing Guarantor Senior
Indebtedness; (iii) release any Person liable in any manner for the payment or
collection of Guarantor Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against any Guarantor and any other Person.
-88-
SECTION 13.11. Holders Authorize Trustee To Effectuate Subordination of
Guarantee.
Each Holder of Securities by its acceptance of them authorizes
and expressly directs the Trustee on its behalf to take such action as may be
necessary or appropriate to effectuate, as between the holders of Guarantor
Senior Indebtedness and the Holders of Securities, the subordination provided in
this Article Thirteen, and appoints the Trustee its attorney-in-fact for such
purposes, including, in the event of any dissolution, winding-up, liquidation or
reorganization of any Guarantor (whether in bankruptcy, insolvency,
receivership, reorganization or similar proceedings or upon an assignment for
the benefit of creditors or otherwise) tending towards liquidation of the
business and assets of such Guarantor, the filing of a claim for the unpaid
balance of its Securities and accrued interest in the form required in those
proceedings.
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 Guarantor
Senior Indebtedness or their Representative are or is hereby authorized to have
the right to file and are or is 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 Guarantor Senior
Indebtedness or their Representative 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 or the holders of Guarantor Senior
Indebtedness or their Representative to vote in respect of the claim of any
Holder in any such proceeding.
ARTICLE FOURTEEN
MISCELLANEOUS
SECTION 14.01. TIA Controls.
If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by operation of Section 3.18(c) of the TIA,
the imposed duties shall control.
SECTION 14.02. Notices.
Any notices or other communications required or permitted
hereunder shall be in writing, and shall be sufficiently given if made by hand
delivery, by telex, by telecopier or registered or certified mail, postage
prepaid, return receipt requested, addressed as follows:
if to the Company or the Guarantors:
Aearo Company I
0000 Xxxx 00xx Xxxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: Chief Financial Officer
with copies to:
O'Melveny & Xxxxx LLP
Times Square Xxxxx
Xxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxx Xxxxxxxxx
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
-89-
if to the Trustee:
X.X. Xxxxxx Trust Company, National Association
000 Xxxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Each of the Company, the Guarantors and the Trustee by written
notice to each other such person may designate additional or different addresses
for notices to such person. Any notice or communication to the Company, the
Guarantors and the Trustee, shall be deemed to have been given or made as of the
date so delivered if personally delivered; when answered back, if telexed; when
receipt is acknowledged, if telecopied; and five (5) calendar days after mailing
if sent by registered or certified mail, postage prepaid (except that a notice
of change of address shall not be deemed to have been given until actually
received by the addressee).
Any notice or communication mailed to a Securityholder shall
be mailed to him by first class mail or other equivalent means at his address as
it appears on the registration books of the Registrar and shall be sufficiently
given to him if so mailed within the time prescribed.
Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.
SECTION 14.03. Communications by Holders with Other Holders.
Securityholders may communicate pursuant to TIA ss. 312(b)
with other Securityholders with respect to their rights under this Indenture or
the Securities. The Company, the Guarantors, the Trustee, the Registrar and any
other person shall have the protection of TIA ss. 312(c).
SECTION 14.04. Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Company to the Trustee
to take any action under this Indenture, the Company shall furnish to the
Trustee at the request of the Trustee:
(1) an Officers' Certificate, in form and substance
satisfactory to the Trustee, stating that, in the opinion of the
signers, all conditions precedent to be performed or effected by the
Company or any Guarantor, if any, provided for in this Indenture
relating to the proposed action have been complied with; and
(2) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.
-90-
SECTION 14.05. Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture, other than the Officers'
Certificate required by Section 4.08, shall include:
(1) a statement that the person making such certificate or
opinion has read such covenant or condition;
(2) 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;
(3) a statement that, in the opinion of such person, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been complied with; and
(4) a statement as to whether or not, in the opinion of each
such person, such condition or covenant has been complied with;
provided, however, that with respect to matters of fact an Opinion of
Counsel may rely on an Officers' Certificate or certificates of public
officials.
SECTION 14.06. Rules by Trustee, Paying Agent, Registrar.
The Trustee, Paying Agent or Registrar may make reasonable
rules for its functions.
SECTION 14.07. Legal Holidays.
A "Legal Holiday" is any day other than a Business Day. If a
payment date is not a Business Day, payment may be made on the next succeeding
day that is a Business Day, and no interest shall accrue for the intervening
period.
SECTION 14.08. Governing Law.
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
Each of the parties hereto agrees to submit to the jurisdiction of the courts of
the State of New York in any action or proceeding arising out of or relating to
this Indenture.
SECTION 14.09. No Adverse Interpretation of Other Agreements.
This Indenture may not be used to interpret another indenture,
loan or debt agreement of any of the Company or any of its Subsidiaries. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.
SECTION 14.10. No Recourse Against Others.
A director, officer, employee, stockholder or incorporator, as
such, of the Company or any Guarantor shall not have any liability for any
obligations of the Company or any Guarantor under the Securities, the Guarantees
or this Indenture or for any claim based on, in respect of or by reason of such
obligations or their creations. Each Securityholder by accepting a Security
waives and releases all such liability. Such waiver and release are part of the
consideration for the issuance of the Securities.
-91-
SECTION 14.11. Successors.
All agreements of the Company and the Guarantors in this
Indenture and the Securities shall bind their respective successors. All
agreements of the Trustee in this Indenture shall bind its successor.
SECTION 14.12. Duplicate Originals.
All parties may sign any number of copies of this Indenture.
Each signed copy or counterpart shall be an original, but all of them together
shall represent the same agreement.
SECTION 14.13. Severability.
In case any one or more of the provisions in this Indenture or
in the Securities shall be held invalid, illegal or unenforceable, in any
respect for any reason, the validity, legality and enforceability of any such
provision in every other respect and of the remaining provisions shall not in
any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law.
-92-
SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed, as of the date first written above.
AEARO COMPANY I,
as Issuer
By: /s/ Xxxxxxx X. Xxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Chief Financial Officer
CABOT SAFETY INTERMEDIATE CORPORATION
as a Guarantor
By: /s/ Xxxxxxx X. Xxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Vice President-Finance
VH INDUSTRIES, INC.
as a Guarantor
By: /s/ Xxxxxxx X. Xxxxx
---------------------------------
Name: Xxxxxxx X. Xxxxx
Title: Secretary
X.X. XXXXXX TRUST COMPANY,
NATIONAL ASSOCIATION as
Trustee
By: /s/ Xxxxx Xxxxx
---------------------------------
Name: Xxxxx Xxxxx
Title: Vice President
-93-
EXHIBIT A
[FORM OF NOTE]
[Insert the Global Note Legend, if applicable pursuant to the provisions of the
Indenture]
[Insert the Private Placement Legend, if applicable pursuant to the provisions
of the Indenture]
AEARO COMPANY I
8 1/4% Senior Subordinated Note
due April 15, 2012
No. $
AEARO COMPANY I, a Delaware corporation (the "Company," which
term includes any successor corporation), for value received promises to pay to
or registered assigns, the principal sum of Dollars, on April 15, 2012.
Interest Payment Dates: April 15 and October 15 commencing
October 15, 2004
Record Dates: April 1 and October 1
Reference is made to the further provisions of this Security
contained herein, which will for all purposes have the same effect as if set
forth at this place.
IN WITNESS WHEREOF, the Company has caused this Security to be
signed manually or by facsimile by its duly authorized officers.
Dated:
AEARO COMPANY I
By:
-----------------------------
Name:
Title:
A-1
[FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION]
This is one of the Securities described in the
within-mentioned Indenture.
Dated: X.X. Xxxxxx Trust Company, National Association,
as Trustee
By:
----------------------
Name:
Title:
A-2
AEARO COMPANY I
8 1/4% Senior Subordinated Note
due April 15, 2012
1. Interest.
AEARO COMPANY I, a Delaware corporation (the "Company"),
promises to pay interest on the principal amount of this Security at the rate
per annum shown above. The Company will pay interest semi-annually on April 15
and October 15 of each year (each an "Interest Payment Date"), commencing
October 15, 2004. Interest on the Securities will accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from and
including the date of issuance. Interest will be computed on the basis of a
360-day year of twelve 30-day months.
The Company shall pay interest on overdue principal and on
overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the rate borne by the Securities plus 2%
per annum to the extent lawful.
2. Method of Payment.
The Company shall pay interest on the Securities (except
defaulted interest) to the persons who are the registered Holders at the close
of business on the Record Date immediately preceding the Interest Payment Date
even if the Securities are cancelled on registration of transfer or registration
of exchange after such Record Date. Holders must surrender Securities to a
Paying Agent to collect principal payments. The Company shall pay principal and
interest in money of the United States that at the time of payment is legal
tender for payment of public and private debts ("U.S. Legal Tender"). However,
the Company may pay principal and interest by wire transfer of Federal funds, or
interest by check payable in such U.S. Legal Tender. The Company may deliver any
such interest payment to the Paying Agent or to a Holder at the Holder's
registered address. Notwithstanding the foregoing, the Company shall pay or
cause to be paid all amounts payable with respect to Restricted Securities or
non-DTC eligible Securities by wire transfer of Federal funds to the account of
the Holders of such Securities.
3. Paying Agent and Registrar.
Initially, X.X. Xxxxxx Trust Company, National Association
(the "Trustee") will act as Paying Agent and Registrar. The Company may change
any Paying Agent, Registrar or co-Registrar without notice to the Holders. The
Company or any of its Subsidiaries may, subject to certain exceptions, act as
Registrar or co-Registrar.
4. Indenture and Guarantee.
The Company issued the Securities under an Indenture, dated as
of April 7, 2004 (the "Indenture"), among the Company, the Guarantors from time
to time party thereto and the Trustee. Capitalized terms herein are used as
defined in the Indenture unless otherwise defined herein. The terms of the
Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code xx.xx.
77aaa-77bbbb) (the "TIA"), as in effect on the date of the Indenture until such
time as the Indenture is qualified under the TIA, and thereafter as in effect on
the date on which the Indenture is qualified under the TIA. Notwithstanding
anything to the contrary herein, the Securities are subject to all such terms,
and Holders of Securities are referred to the Indenture and the TIA for a
statement of them. The Securities are unsecured obligations of the Company
unlimited in aggregate principal amount. Payment on each Security is guaranteed
on a senior subordinated basis by the Guarantors pursuant to Article Twelve of
the Indenture. Each Holder, by accepting a Security, agrees to be bound by all
of the terms and provisions of the Indenture, as the same may be amended from
time to time.
A-3
5. Subordination.
The Securities are subordinated and junior in right of
payment, in the manner and to the extent set forth in the Indenture, to the
prior payment in full when due, whether at stated maturity, by acceleration or
otherwise, in cash or Cash Equivalents of all Obligations on or with respect to
Senior Indebtedness of the Company, whether outstanding on the date of the
Indenture or thereafter created, incurred, assumed or guaranteed. The Guarantees
in respect of the Securities are subordinated and junior in right of payment, in
the manner and to the extent set forth in the Indenture, to the prior payment in
full when due, whether at stated maturity, by acceleration or otherwise, in cash
or Cash Equivalents of all Obligations on or with respect to Guarantor Senior
Indebtedness, whether outstanding on the date of the Indenture or thereafter
created, incurred, assumed or guaranteed. Each Holder by his acceptance hereof
agrees to be bound by such provisions and authorizes and expressly directs the
Trustee, on his behalf, to take such action as may be necessary or appropriate
to effectuate the subordination provided for in the Indenture and appoints the
Trustee his attorney-in-fact for such purposes.
6. Optional Redemption at Specified Prices.
The Securities will be redeemable, at the Company's option, in
whole at any time or in part from time to time, on and after April 15, 2008, at
the following redemption prices (expressed as percentages of the principal
amount thereof) if redeemed during the twelve-month period commencing on of the
year set forth below, plus, in each case, accrued interest to the date of
redemption:
Year Percentage
---- ----------
2008.............................................. 104.125%
2009.............................................. 102.063%
2010 and thereafter............................... 100.000%
7. Optional Redemption Upon Equity Offerings.
At any time, or from time to time, on or prior to April 15,
2007, the Company may, at its option, use the net cash proceeds of one or more
Equity Offerings to redeem (an "Equity Proceeds Redemption") up to 35% of the
aggregate principal amount of the Securities originally issued under the
Indenture at a redemption price of 108.25% of the principal amount thereof, plus
accrued interest thereon, if any, to the date of redemption; provided that:
(1) at least 65% of the initial aggregate principal amount of
Securities originally issued remains outstanding immediately after each
such redemption; and
(2) the Company makes such redemption not more than 90 days
after the consummation of any such Equity Offering.
As used in the preceding paragraph, "Equity Offering" means a
public or private offering of Qualified Capital Stock of the Company or
Holdings; provided that, in the event of an Equity Offering by Holdings,
Holdings contributes to the capital of the Company the portion of the Net Equity
Proceeds of such Equity Offering received by Holdings necessary to pay the
aggregate redemption price (plus accrued interest to the date of redemption) of
the Securities to be redeemed pursuant to the preceding paragraph.
A-4
8. Optional Redemption at a Make Whole Premium. The Securities will be
redeemable, at the Company's option, in whole at any time or in part from time
to time, at any time prior to April 15, 2008, at a redemption price equal to
o 100% of the aggregate principal amount of Securities to be
redeemed, together with accrued and unpaid interest to such
redemption date, plus
o the Make Whole Amount.
"Make Whole Amount" means, with respect to any Security at any
date of redemption, the excess, if any, of (A) an amount equal to the present
value of (1) the redemption price of such Security at April 15, 2008 plus (2)
the remaining scheduled interest payments on such Security (subject to the right
of holders on the relevant record date to receive interest due on the relevant
interest payment date) to April 15, 2008 (other than interest accrued to the
redemption date), computed using a discount rate equal to the Treasury Rate plus
50 basis points over (B) the principal amount of such Security.
"Treasury Rate" means, at the time of computation, the yield
to maturity of United States Treasury Securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release
H.15(519) which has become publicly available at least two business days prior
to the date of redemption or, if such Statistical Release is no longer
published, any publicly available source of similar market data) most nearly
equal to the period from the date of redemption to April 15, 2008; provided,
however, that if the period from the date of redemption to April 15, 2008 is not
equal to the constant maturity of a United States Treasury Security for which a
weekly average yield is given, the Treasury Rate shall be obtained by linear
interpolation (calculated to the nearest one-twelfth of a year) from the weekly
average yields of United States Treasury Securities for which such yields are
given, except that if the period from the date of redemption date to April 15,
2008 is less than one year, the weekly average yield on actually traded United
States Treasury Securities adjusted to a constant maturity of one year shall be
used.
9. Notice of Redemption.
Notice of redemption will be mailed at least 30 days but not
more than 60 days before the Redemption Date to each Holder of Securities to be
redeemed at such Holder's registered address. Securities in denominations of
$1,000 may be redeemed only in whole. The Trustee may select for redemption
portions (equal to $1,000 or any integral multiple thereof) of the principal of
Securities that have denominations larger than $1,000.
Except as set forth in the Indenture, from and after any
Redemption Date, if monies for the redemption of the Securities called for
redemption shall have been deposited with the Paying Agent for redemption on
such Redemption Date, then, unless the Company defaults in the payment of such
Redemption Price plus accrued interest, if any, interest on the Securities to be
redeemed will cease to accrue on and after the applicable Redemption Date,
whether or not such Securities are presented for payment.
A-5
10. Change of Control Offer.
Upon the occurrence of a Change of Control, the Company
(subject to the terms of the Indenture) will be required to offer to purchase
all of the outstanding Securities at a purchase price equal to 101% of the
principal amount thereof plus accrued interest to the date of repurchase.
11. Limitation on Disposition of Assets.
The Company is, subject to certain conditions, obligated to
make an offer to purchase Securities at 100% of their principal amount plus
accrued interest to the date of repurchase with the net cash proceeds of certain
sales or other dispositions of assets.
12. Denominations; Transfer; Exchange.
The Securities are in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder shall
register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay certain transfer
taxes or similar governmental charges payable in connection therewith as
permitted by the Indenture. The Registrar need not register the transfer of or
exchange any Securities or portions thereof selected for redemption.
13. Persons Deemed Owners.
The registered Holder of a Security shall be treated as the
owner of it for all purposes.
14. Unclaimed Funds.
If funds for the payment of principal or interest remain
unclaimed for one year, the Trustee and the Paying Agents will repay the funds
to the Company at its request. After that, all liability of the Trustee and such
Paying Agents with respect to such funds shall cease.
15. Legal Defeasance and Covenant Defeasance.
The Company may be discharged from its obligations under the
Indenture and the Securities, except for certain provisions thereof ("Legal
Defeasance"), and may be discharged from its obligations to comply with certain
covenants contained in the Indenture and the Securities ("Covenant Defeasance"),
in each case upon satisfaction of certain conditions specified in the Indenture.
16. Amendment; Supplement; Waiver.
Subject to certain exceptions requiring a supermajority or
unanimous vote, the Indenture, the Securities or the Guarantee may be amended or
supplemented with the written consent of the Holders of at least a majority in
aggregate principal amount of the Securities then outstanding, and any existing
Default or Event of Default or compliance with any provision may be waived with
the consent of the Holders of a majority in aggregate principal amount of the
Securities then outstanding. Without notice to or consent of any Holder, the
parties thereto may amend or supplement the Indenture, the Securities or the
Guarantees to, among other things, cure any ambiguity, defect or inconsistency,
comply with Article Five of the Indenture, provide for uncertificated Securities
in addition to or in place of certificated Securities, comply with any
requirements of the SEC in connection with the qualification of the Indenture
under the TIA, to add a Guarantor under the Indenture, to evidence and provide
for the acceptance of a successor Trustee under this Indenture, to mortgage,
pledge, hypothecate or grant a security interest in favor of the Trustee for the
benefit of Holders as security for the payment and performance of the Company's
or any Guarantor's obligations under the Indenture, in any property or assets,
or to make any other change that does not materially adversely affect the rights
of any Holder of a Security.
A-6
17. Successors.
When a successor assumes all the obligations of its
predecessor under the Securities and the Indenture, the predecessor will be
released from those obligations.
18. Defaults and Remedies.
If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in aggregate principal amount of Securities then
outstanding may declare all the Securities to be due and payable immediately in
the manner and with the effect provided in the Indenture. Holders of Securities
may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee is not obligated to enforce the Indenture or the
Securities unless it has received indemnity satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, Holders of a majority
in aggregate principal amount of the Securities then outstanding to direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Securities notice of any continuing Default or Event of Default
(except a Default in payment of principal or interest, including an accelerated
payment) if it determines that withholding notice is in their interest.
19. Trustee Dealings with Company.
The Trustee under the Indenture, in its individual or any
other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Company, its Subsidiaries or their respective Affiliates as if it
were not the Trustee.
20. No Recourse Against Others.
No director, officer, employee, incorporator or stockholder of
the Company or any Guarantor, as such, will have any liability for 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 by accepting a Security waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Securities.
21. Authentication.
This Security shall not be valid until the Trustee or
authenticating agent signs the certificate of authentication on this Security.
22. Abbreviations and Defined Terms.
Customary abbreviations may be used in the name of a Holder of
a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).
A-7
23. CUSIP and ISIN Numbers.
The Issuer has caused CUSIP and ISIN numbers to be printed on
the Notes and the Trustee may use CUSIP or ISIN numbers in notices of redemption
as a convenience to Holders. No representation is made as to the accuracy of
such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.
The Company will furnish to any Holder of a Security upon
written request and without charge a copy of the Indenture. Requests may be made
to: Aearo Company I, 0000 Xxxx 00xx Xxxxxx Xxxxxxxxxxxx, Xxxxxxx 00000,
Attention: Chief Financial Officer.
24. Registration Rights.1
Pursuant to the Registration Rights Agreement among the
Company, the Guarantors party thereto and the Initial Purchasers on behalf of
Holders of the Initial Securities, the Company will be obligated to consummate
an exchange offer pursuant to which the Holder of this Security shall have the
right to exchange this Security for the Company's 8 1/4% Senior Subordinated
Notes due 2012 (the "Exchange Notes"), which have been registered under the
Securities Act, in like principal amount and having terms identical in all
material respects as the Initial Securities. The Holders of the Initial
Securities shall be entitled to receive certain additional interest payments in
the event such exchange offer is not consummated and upon certain other
conditions, all pursuant to and in accordance with the terms of the Registration
Rights Agreement. Additional interest which may be payable pursuant to the
Registration Rights Agreement shall be payable in the same manner as set forth
herein with respect to the stated interest. The provisions of the Registration
Rights Agreement relating to such additional interest are incorporated herein by
reference and made a part hereof as if set forth herein in full.
------------------------
1 This Paragraph 24 does not appear on Exchange Notes or Private Exchange
Notes or Additional Notes unless required by the terms of such
Additional Notes.
A-8
[FORM OF NOTATION ON NOTE RELATING TO GUARANTEE]
SENIOR SUBORDINATED GUARANTEE
For value received, each of the undersigned has
unconditionally guaranteed on a senior subordinated basis (such guarantee being
referred to herein as the "Guarantee") (i) the due and punctual payment of the
principal of and interest on the Securities, whether at maturity, by
acceleration or otherwise, the due and punctual payment of interest on the
overdue principal and interest, if any, on the Securities, to the extent lawful,
and the due and punctual performance of all other obligations of the Company to
the Holders or the Trustee all in accordance with the terms set forth in Article
Twelve and Article Thirteen of the Indenture and (ii) in case of any extension
of time of payment or renewal of any Securities or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise.
The obligations of each Guarantor to the Holders of Securities
and to the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth and are expressly subordinated and subject in right of payment to the
prior payment in full in cash or Cash Equivalents of all Guarantor Senior
Indebtedness of such Guarantor, to the extent and in the manner provided in
Article Twelve and Article Thirteen of the Indenture, and reference is hereby
made to such Indenture for the precise terms of the Guarantee therein made.
No stockholder, officer, director or incorporator, as such,
past, present or future, of any Guarantor shall have any liability under the
Guarantee by reason of his or its status as such stockholder, officer, director
or incorporator.
A-9
The Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the Securities upon which the
Guarantee is noted shall have been executed by the Trustee under the Indenture
by the manual signature of one of its authorized officers.
Guarantors:
By:
---------------------------------
Name:
Title:
A-10
ASSIGNMENT FORM
I or we assign and transfer this Security to
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
(Print or type name, address and zip code of assignee)
--------------------------------------------------------------------------------
(Insert Social Security or other identifying number of assignee)
and irrevocably appoint ________________________________________________________
agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
In connection with any transfer of this Security occurring
prior to the date which is the earlier of (i) the date of the declaration by the
SEC of the effectiveness of a registration statement under the Securities Act of
1933, as amended (the "Securities Act"), covering resales of this Security
(which effectiveness shall not have been suspended or terminated at the date of
the transfer) and (ii) April 7, 2007, the undersigned confirms that it has not
utilized any general solicitation or general advertising in connection with the
transfer and that:
[Check One]
[ ] (a) this Security is being transferred in compliance with
the exemption from registration under the Securities Act
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.
A-11
If neither of the foregoing boxes is checked, the Trustee or 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 2.16 of the Indenture shall have
been satisfied.
Dated: Signed:
-----------------------------------------
(Sign exactly as name appears on the
other side of this Security)
Signature Guarantee: __________________________________________________
Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Trustee)
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 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 executive officer
A-12
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the
Company pursuant to Section 4.15 or Section 4.16 of the Indenture, check the
appropriate box:
Section 4.15 [ ] Section 4.16 [ ]
If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.15 or Section 4.16 of the
Indenture, state the amount: $
Date: _____________ Your Signature: __________________________
(Sign exactly as your name
appears on the other side
of this Security)
Signature Guarantee: _______________________________________________
Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor
program reasonably acceptable to the Trustee)
A-13
EXHIBIT B
FORM OF LEGENDS
Each Global Security and Physical Security that constitutes a
Restricted Security shall bear the following legend (the "Private Placement
Legend") on the face thereof until after the second anniversary of the Issue
Date, unless otherwise agreed by the Company and the Holder thereof or if such
legend is no longer required by Section 2.16(f) of the Indenture:
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE
OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR
BENEFIT OF, U.S. PERSONS EXCEPT 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), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES
ACT OR (C) IT IS AN ACCREDITED INVESTOR (AS DEFINED IN RULE 501(a)(1),
(2), (3), OR (7) UNDER THE SECURITIES ACT (AN "ACCREDITED INVESTOR"),
(2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL
ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS SECURITY
EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE
UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN
ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES (OR HAS
FURNISHED ON ITS BEHALF BY A U.S. BROKER-DEALER) TO THE TRUSTEE A
SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM OF
WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH
RULE 904 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE
EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES
ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN
OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), OR (G) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3)
AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN
CONNECTION WITH ANY TRANSFER OF THIS SECURITY WITHIN TWO YEARS AFTER
THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED TRANSFEREE IS
AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER,
FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL
OPINIONS OR OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE
TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS "OFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANING GIVEN
TO THEM BY REGULATION S UNDER THE SECURITIES ACT.
B-1
Any Global Security authenticated and delivered hereunder
shall bear a legend (which would be in addition to any other legends required in
the case of a Restricted Security) in substantially the following form (the
"Global Security Legend"):
THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS
NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE
(OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED
EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY 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.
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 SECTION 2.16 OF THE
INDENTURE.
B-2
EXHIBIT C
FORM OF CERTIFICATE TO BE
DELIVERED IN CONNECTION WITH
TRANSFERS TO NON-QIB INSTITUTIONAL ACCREDITED INVESTORS
__________ , ____
X.X. Xxxxxx Trust Company, National Association
000 Xxxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Ladies and Gentlemen:
In connection with our proposed purchase of 8 1/4% Senior
Subordinated Notes due 2012 (the "Notes") of AEARO COMPANY I, a Delaware
corporation (the "Issuer"), we confirm that:
1. We understand that any subsequent transfer of the Notes is
subject to certain restrictions and conditions set forth in the
Indenture relating to the Notes (the "Indenture") and the undersigned
agrees to be bound by, and not to resell, pledge or otherwise transfer
the Notes except in compliance with, such restrictions and conditions
and the Securities Act of 1933, as amended (the "Securities Act"), and
all applicable state securities laws.
2. We understand that the offer and sale of the Notes have not
been registered under the Securities Act, and that the Notes may not be
offered, sold, pledged or otherwise transferred except as permitted in
the following sentence. We agree, on our own behalf and on behalf of
any accounts for which we are acting as hereinafter stated, that if we
should sell, offer, pledge or otherwise transfer any Notes, we will do
so only (i) to the Issuer or any of its subsidiaries, (ii) inside the
United States in a transaction meeting the requirements of Rule 144A
under the Securities Act to a person who we reasonably believe to be a
"qualified institutional buyer" (as defined in Rule 144A under the
Securities Act), (iii) inside the United States to an institutional
"accredited investor" (as defined below) that is purchasing at least
$100,000 of Notes for its own account or for the account of an
institutional accredited investor and who, prior to such transfer,
furnishes (or has furnished on its behalf by a U.S. broker-dealer) to
the Trustee (as defined in the Indenture) a signed letter containing
certain representations and agreements relating to the restrictions on
transfer of the Notes (the form of which letter can be obtained from
the Trustee), (iv) outside the United States to a person that is not a
U.S. person (as defined in Rule 902 under the Securities Act) in
accordance with Regulation S promulgated under the Securities Act, (v)
pursuant to the exemption from registration provided by Rule 144 under
the Securities Act (if available) or (vi) pursuant to an effective
registration statement under the Securities Act, and we further agree
to provide to any person purchasing any of the Notes from us a notice
advising such purchaser that resales of the Notes are restricted as
stated herein.
C-1
3. We are not acquiring the Notes for or on behalf of, and
will not transfer the Notes to, any employee benefit plan subject to
Title I of the Employee Retirement Income Security Act of 1974, as
amended ("ERISA"), any plan, individual retirement accounts or other
arrangements subject to Section 4975 of the Internal Revenue Code of
1986, as amended (the "Code"), or provisions under any federal, state,
local, or non-U.S. or other laws or regulations that are similar to
such provisions of ERISA of the Code or any entity whose underlying
assets are considered to include "plan assets" of such plans, accounts
or arrangements, except as permitted in the sections entitled "Notice
to investors" of the Offering Memorandum.
4. We understand that, on any proposed resale of any Notes, we
will be required to furnish to the Trustee and the Issuer such
certification, legal opinions and other information as the Trustee and
the Issuer may reasonably require to confirm that the proposed sale
complies with the foregoing restrictions. We further understand that
the Notes purchased by us will bear a legend to the foregoing effect.
5. We are an institutional "accredited investor" (as defined
in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities
Act) and have such knowledge and experience in financial and business
matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are
acting are each able to bear the economic risk of our or their
investment, as the case may be.
6. We are acquiring the Notes purchased by us for our account
or for one or more accounts (each of which is an institutional
"accredited investor") as to each of which we exercise sole investment
discretion.
You, as Trustee, the Issuer, counsel for the Issuer and others
are entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceeding or official inquiry with respect to the matters covered hereby.
Very truly yours,
[Name of Transferee]
By: ___________________________________
Name:
Title:
C-2
EXHIBIT D
FORM OF CERTIFICATE TO BE DELIVERED
IN CONNECTION WITH TRANSFERS
PURSUANT TO REGULATION S
____________ , ___
X.X. Xxxxxx Trust Company, National Association
000 Xxxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Re: Aearo Company I (the "Issuer")
8 1/4% Senior Subordinated Notes due 2012 (the "Notes")
Ladies and Gentlemen:
In connection with our proposed sale of $ aggregate principal
amount of the Notes, we confirm that such sale has been effected pursuant to and
in accordance with Regulation S under the U.S. Securities Act of 1933, as
amended (the "Securities Act"), and, accordingly, we represent that:
(1) the offer of the Notes was not made to a person in the
United States;
(2) either (a) at the time the buy offer was originated, the
transferee was outside the United States or we and any person acting on
our behalf reasonably believed that the transferee was outside the
United States, or (b) the transaction was executed in, on or through
the facilities of a designated offshore securities market and neither
we nor any person acting on our behalf knows that the transaction has
been prearranged with a buyer in the United States;
(3) no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S, as applicable;
(4) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act; and
(5) we have advised the transferee of the transfer
restrictions applicable to the Notes.
D-1
You, as Trustee, the Issuer, counsel for the Issuer and others
are entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered
hereby. Terms used in this certificate have the meanings set forth in Regulation
S.
Very truly yours,
[Name of Transferor]
By: ________________________________
Authorized Signatory
D-2
EXHIBIT E
FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION WITH TRANSFERS
OF TEMPORARY REGULATION S GLOBAL NOTE
-------------------,-------
X.X. Xxxxxx Trust Company, National Association
000 Xxxxxxxx Xxxxxx, 00xx Xxxxx
Xxxxxxxxxxxx, Xxxxxxx 00000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Telephone: (000) 000-0000
Attention: Corporate Trust Department
Re: Aearo Company I (the "Issuer")
8 1/4% Senior Subordinated Notes due 2012 (the "Notes")
Dear Sirs:
This letter relates to U.S. $ ______________ principal amount
of Notes represented by a certificate (the "Legended Certificate") which bears a
legend outlining restrictions upon transfer of such Legended Certificate.
Pursuant to Section 2.16(c) of the Indenture (the "Indenture") dated as of April
7, 2004 relating to the Notes, we hereby certify that we are (or we will hold
such securities on behalf of) a person outside the United States (or to an
Initial Purchaser (as defined in the Indenture)) to whom the Notes could be
transferred in accordance with Rule 904 of Regulation S promulgated under the
U.S. Securities Act of 1933, as amended.
You, as Trustee, the Issuer, counsel for the Issuer and others
are entitled to rely upon this letter and are irrevocably authorized to produce
this letter or a copy hereof to any interested party in any administrative or
legal proceedings or official inquiry with respect to the matters covered
hereby. Terms used in this letter have the meanings set forth in Regulation S.
Very truly yours,
[Name of Holder]
By: _______________________________
Authorized Signature
E-1
