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Exhibit 10.6
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ANC RENTAL CORPORATION
SENIOR NOTES DUE 2007
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INDENTURE
Dated as of June 30, 2000
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THE BANK OF NEW YORK
as Trustee
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TABLE OF CONTENTS
Page
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ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE........................................................1
Section 1.1 Definitions..........................................................................1
Section 1.2 Other Definitions...................................................................30
Section 1.3 Incorporation by Reference of Trust Indenture Act...................................30
Section 1.4 Rules of Construction...............................................................31
ARTICLE 2 THE NOTES........................................................................................31
Section 2.1 Option to Exchange Rollover Term Loans for Notes....................................31
Section 2.2 Principal Amount and Maturity.......................................................32
Section 2.3 Interest Rate and Payments..........................................................32
Section 2.4 Transferability; Notice of Intent to Transfer.......................................33
Section 2.5 Form and Dating.....................................................................33
Section 2.6 Execution and Authentication........................................................35
Section 2.7 Registrar and Paying Agent..........................................................35
Section 2.8 Paying Agent to Hold Money in Trust.................................................36
Section 2.9 Holder Lists........................................................................36
Section 2.10 Transfer and Exchange...............................................................36
Section 2.11 Replacement Notes...................................................................50
Section 2.12 Outstanding Notes...................................................................50
Section 2.13 Treasury Notes......................................................................50
Section 2.14 Temporary Notes.....................................................................51
Section 2.15 Cancellation........................................................................51
Section 2.16 Defaulted Interest..................................................................51
Section 2.17 CUSIP Numbers.......................................................................51
ARTICLE 3 REDEMPTION AND PREPAYMENT........................................................................52
Section 3.1 Redemption..........................................................................52
Section 3.2 Notices to Trustee..................................................................52
Section 3.3 Notice of Redemption................................................................52
Section 3.4 Selection of Notes To Be Redeemed; Procedure for Optional Redemption................53
Section 3.5 Effect of Notice of Redemption......................................................53
Section 3.6 Deposit of Redemption Price.........................................................54
Section 3.7 Notes Redeemed in Part..............................................................54
Section 3.8 Offer to Purchase by Application of Excess Proceeds.................................54
ARTICLE 4 COVENANTS........................................................................................56
Section 4.1 Payment of Notes....................................................................56
Section 4.2 Maintenance of Office or Agency.....................................................57
Section 4.3 Reports.............................................................................57
Section 4.4 Compliance Certificate..............................................................58
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Section 4.5 Taxes...............................................................................58
Section 4.6 Stay, Extension and Usury Laws......................................................59
Section 4.7 Restricted Payments.................................................................59
Section 4.8 Indebtedness and Issuance of Preferred Stock........................................63
Section 4.9 Permitted Vehicle Indebtedness......................................................67
Section 4.10 Asset Sales.........................................................................68
Section 4.11 Liens...............................................................................70
Section 4.12 Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries...........70
Section 4.13 Change of Control...................................................................72
Section 4.14 Affiliate Transactions..............................................................73
Section 4.15 Sale and Leaseback Transactions.....................................................75
Section 4.16 Subsidiary Guarantees...............................................................76
Section 4.17 Business Activities.................................................................77
Section 4.18 Designation of an Unrestricted Subsidiary...........................................77
Section 4.19 Corporate Existence.................................................................77
Section 4.20 Payments for Consent................................................................78
ARTICLE 5 SUCCESSORS.......................................................................................78
Section 5.1 Merger, Consolidation or Sale or Lease of Assets....................................78
Section 5.2 Successor Corporation Substituted...................................................79
ARTICLE 6 EVENTS OF DEFAULT................................................................................79
Section 6.1 Events of Default...................................................................79
Section 6.2 Acceleration........................................................................81
Section 6.3 Other Remedies......................................................................82
Section 6.4 Waiver of Past Defaults.............................................................82
Section 6.5 Control of Majority.................................................................82
Section 6.6 Limitation on Suits.................................................................82
Section 6.7 Rights of Holders of Notes to Receive Payment.......................................83
Section 6.8 Collection Suit by Trustee..........................................................83
Section 6.9 Trustee May File Proofs of Claim....................................................83
Section 6.10 Priorities..........................................................................84
Section 6.11 Undertaking For Costs...............................................................84
ARTICLE 7 TRUSTEE..........................................................................................85
Section 7.1 Duties of Trustee...................................................................85
Section 7.2 Rights of Trustee...................................................................86
Section 7.3 Individual Rights of Trustee........................................................87
Section 7.4 Trustee's Disclaimer................................................................87
Section 7.5 Notice of Defaults..................................................................87
Section 7.6 Reports by Trustee to Holders of the Notes..........................................87
Section 7.7 Compensation and Indemnity..........................................................88
Section 7.8 Replacement of Trustee..............................................................89
Section 7.9 Successor Trustee by Merger, etc....................................................90
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Section 7.10 Eligibility; Disqualification.......................................................90
Section 7.11 Preferential Collection of Claims Against Company...................................90
ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE.........................................................90
Section 8.1 Option to Effect Legal Defeasance or Covenant Defeasance............................90
Section 8.2 Legal Defeasance and Discharge......................................................90
Section 8.3 Covenant Defeasance.................................................................91
Section 8.4 Conditions to Legal or Covenant Defeasance..........................................91
Section 8.5 Deposited Money and Government Securities to be held in Trust;
Other Miscellaneous Provisions..............................................93
Section 8.6 Repayment to Company................................................................94
Section 8.7 Reinstatement.......................................................................94
ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER.................................................................94
Section 9.1 Without Consent of Holders of Notes.................................................94
Section 9.2 With Consent of Holders of Notes....................................................95
Section 9.3 Compliance with Trust Indenture Act.................................................97
Section 9.4 Revocation and Effect of Consents...................................................97
Section 9.5 Notation on or Exchange of Notes....................................................97
Section 9.6 Trustee to Sign Amendments, etc.....................................................97
ARTICLE 10 SUBSIDIARY GUARANTEES...........................................................................98
Section 10.1 Guarantee...........................................................................98
Section 10.2 Limitation on Guarantor Liability...................................................99
Section 10.3 Execution and Delivery of Subsidiary Guarantee......................................99
Section 10.4 Guarantors May Consolidate, etc., on Certain Terms.................................100
Section 10.5 Releases Following Sale of Assets..................................................100
ARTICLE 11 MISCELLANEOUS..................................................................................101
Section 11.1 Indenture Act Controls.............................................................101
Section 11.2 Notices............................................................................101
Section 11.3 Communication by Holders of Notes with Other Holders of Notes......................103
Section 11.4 Certificate and Opinion as to Conditions Precedent.................................103
Section 11.5 Statements Required in Certificate or Opinion......................................103
Section 11.6 Rules by Trustee and Agents........................................................104
Section 11.7 No Personal Liability of Directors, Officers, Employees and Stockholders...........104
Section 11.8 Governing Law......................................................................104
Section 11.9 No Adverse Interpretation of Other Agreements......................................104
Section 11.10 Successors.........................................................................104
Section 11.11 Severability.......................................................................104
Section 11.12 Counterpart Originals..............................................................104
Section 11.13 Table of Contents, Headings, etc...................................................105
Section 11.14 Accounting Changes.................................................................105
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Exhibit A Form of Note
Exhibit B Form of Certificate of Transfer
Exhibit C Form of Certificate of Exchange
Exhibit D Form of Certificate From Acquiring Institutional Accredited Investor
Exhibit E Form of Subsidiary Guarantee
Exhibit F Form of Supplemental Indenture
Exhibit G Schedule of Guarantors
Exhibit H Debt Registration Rights Agreement
Schedule 4.10 Excluded Assets
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INDENTURE dated as of June 30, 2000 among ANC Rental
Corporation, a Delaware corporation (the "COMPANY"), the Guarantors listed on
Exhibit G hereto and from time to time parties hereto (the "GUARANTORS") and The
Bank of New York, a New York banking corporation, as trustee (the "TRUSTEE").
The Company, the Guarantors and the Trustee agree as follows
for the benefit of each other and for the equal and ratable benefit of the
Holders of the Senior Notes due 2007 (the "Exchange Notes" and, together with
any Subsequent Exchange Notes, the "Notes") (it being understood that none of
the restrictions or obligations or other terms herein shall be operative until
such date as Notes are issued):
ARTICLE 1
DEFINITIONS AND INCORPORATION
BY REFERENCE
SECTION 1.1 DEFINITIONS.
"ACQUIRED DEBT" means, with respect to any specified Person, (i)
Indebtedness of any other Person existing at the time such other Person is
merged with or into or became a Restricted Subsidiary of such specified Person,
including, without limitation, Indebtedness incurred in connection with, or in
contemplation of, such other Person merging with or into or becoming a
Restricted Subsidiary of such specified Person, and (ii) Indebtedness secured by
a Lien encumbering any asset acquired by such specified Person.
"ADMINISTRATIVE AGENT" means Xxxxxx Commercial Paper Inc.
"AFFILIATE" means, with respect to any specified Person, any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person. For purposes of this
definition, "control" (including, with correlative meanings, the terms
"controlling," "controlled by" and "under common control with"), as used with
respect to any Person, shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of such
Person, whether through the ownership of voting securities, by agreement or
otherwise; PROVIDED that beneficial ownership of 10% or more of the voting
securities of a Person shall be deemed to be control; provided that for purposes
of this Indenture, other than Section 4.14, AutoNation and its Affiliates (after
giving effect to the Spin-Off) shall not be deemed Affiliates of the Company or
its Subsidiaries which from time to time provide Guarantees.
"AGENT" means any Registrar, Paying Agent or co-registrar.
"APPLICABLE PROCEDURES" means, with respect to any transfer or exchange
of or for beneficial interests in any Global Note, the rules and procedures of
the Depositary, Euroclear and Clearstream that apply to such transfer or
exchange.
"ARRANGER" means Xxxxxx Brothers Inc.
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"Asset Sale" means:
(i) the sale, lease, conveyance or other disposition of any
assets, including by an Asset Swap, or rights (including, without
limitation, by way of a sale and leaseback) other than in the ordinary
course of business, PROVIDED THAT, the sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company
and its Restricted Subsidiaries taken as a whole will be governed by
the provisions of Section 4.13 hereof and the provisions of Section 5.1
hereof and not by the provisions of Section 4.10 hereof; and
(ii) the issue or sale by the Company or any of its Restricted
Subsidiaries of Equity Interests of any the Company's Restricted
Subsidiaries,
in the case of either clause (i) or (ii), whether in a single transaction or a
series of related transactions (a) that have a fair market value in excess of
$1.0 million or (b) for Net Proceeds in excess of $1.0 million.
Notwithstanding the foregoing, the following will not be
deemed to constitute an "Asset Sale":
(i) a transfer or other disposition of assets or property by
the Company to a Restricted Subsidiary of the Company or by a
Restricted Subsidiary of the Company to the Company or to a Restricted
Subsidiary of the Company;
(ii) an issuance or sale of Equity Interests by a Restricted
Subsidiary of the Company to the Company or to a Restricted Subsidiary
of the Company;
(iii) any dividend, distribution, advance, Restricted Payment
or Permitted Investment, in each case that is not prohibited by the
provisions of Section 4.7 hereof;
(iv) a sale or other disposition of Eligible Vehicles or
service vehicles in the ordinary course of business;
(v) the sale or other disposition of Cash Equivalents;
(vi) the sale or lease of obsolete or worn out equipment or
other assets that are no longer being used by the Company or any of its
Restricted Subsidiaries;
(vii) any issue or sale of directors' qualifying shares or
shares or investments required by applicable law to be held by a Person
other than the Company or a Restricted Subsidiary;
(viii) the grant of a Lien which Lien is not prohibited by
Section 4.11 hereof;
(ix) any sale, lease or other disposition of inventory or
accounts receivable in the ordinary course of business;
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(x) any foreclosure on assets in connection with Permitted
Liens;
(xi) any sale, transfer or other disposition of all or a
portion of the assets of the Company or any of its Restricted
Subsidiaries with respect to its Australian business; or
(xii) any sale, transfer or other disposition of all or a
portion of the assets of the Company or any of its Restricted
Subsidiaries with respect to the Company's Minneapolis headquarters and
other assets listed on Schedule 4.10 hereto.
"ASSET SWAP" the exchange by the Company or a Restricted Subsidiary of
all or a portion of its property, business or assets, in the ordinary course of
business, for property, businesses or assets which, or Capital Stock of a Person
all or substantially all of whose assets, are of a type used in the business of
the Company on the date of this Agreement or in a Permitted Business, or a
combination of any such property, business or assets or Capital Stock of such a
Person and cash or Cash Equivalents.
"ATTRIBUTABLE DEBT" in respect of a sale and leaseback transaction
means, at the time of determination, the present value (discounted at the rate
of interest implicit in such transaction, determined in accordance with GAAP) of
the obligation of the lessee for net rental payments during the remaining term
of the lease included in such sale and leaseback transaction (including any
period for which such lease has been extended).
"AUTONATION" means AutoNation, Inc., a Delaware corporation.
"AUTONATION REIMBURSEMENT AGREEMENT" means the AutoNation Reimbursement
Agreement and related Subordination Agreement, each entered into by the Company
and AutoNation on the Spin-Off Date, as the same may be amended, supplemented or
otherwise modified in accordance with Section 4.14 herein.
"BANKRUPTCY LAW" means Title 11, U.S. Code or any similar federal or
state law for the relief of debtors.
"BENEFITS AGREEMENT": the Benefits Agreement entered into by the
Company and AutoNation on the Spin-Off Date, as the same may be amended,
supplemented or otherwise modified in accordance with Section 4.14 herein.
"BOARD OF DIRECTORS" means, with respect to a corporation, the Board of
Directors of such corporation, or a duly constituted and acting committee of
such Board of Directors, and, with respect to any other Person, the Board of
Directors or committee of such Person serving a similar function.
"BOARD RESOLUTION" means a resolution duly adopted by the Board of
Directors.
"BORROWING BASE" means the ABorrowing Base" as defined in the New
Credit Facility.
"BUSINESS DAY" means a day other than a Saturday, Sunday or other day
on which commercial banks in New York City are authorized or required by law to
close.
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"CAPITAL LEASE OBLIGATION" means, with respect to any Person at the
time any determination thereof is to be made, the amount of the liability of
such Person in respect of a capital lease that would at such time be required to
be capitalized on a balance sheet of such Person in accordance with GAAP.
"CAPITAL STOCK" means any and all shares, interests, participations or
other equivalents, however designated, of corporate stock or other equity
participations, including partnership interests, whether general or limited, of
the Person, excluding any debt securities convertible into such Capital Stock.
"CASH EQUIVALENTS" means:
(i) securities issued or directly and fully guaranteed or
insured by the United States government or the U.K., France or Germany,
Australia, Canada, Belgium, Holland, Switzerland, Italy or Spain or any
other member state of the European Union or any agency or
instrumentality thereof, or by any European Union central bank, in each
case having maturities of not more than one year from the date of
acquisition;
(ii) certificates of deposit, time deposits and eurodollar
time deposits with maturities of not more than one year from the date
of acquisition, bankers' acceptances with maturities of not more than
one year from the date of acquisition and overnight bank deposits (or,
with respect to foreign banks, similar instruments), in each case with
any lender under the New Credit Facility or with any commercial bank
having combined capital and surplus in excess of $500.0 million (or the
foreign equivalent thereof) and whose long-term debt is rated at the
time of acquisition thereof at least "A" or the equivalent thereof by
Standard & Poor's or at least "A" or the equivalent thereof by Moody's
(or the foreign equivalents thereof);
(iii) repurchase obligations with a term of not more than 60
days for underlying securities of the types described in clauses (i)
and (ii) above entered into with any financial institution meeting the
qualifications specified in clause (ii) above;
(iv) commercial paper rated at least P-2 by Moody's or at
least A-2 by Standard & Poor's (or, in their absence, an equivalent
rating from another nationally recognized securities rating agency),
with maturities of not more than one year from the date of purchase;
(v) investments in securities with maturities of one year or
less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, or any political
subdivision or taxing authority of any such state, commonwealth or
territory, or by any foreign government, the securities of which state,
commonwealth, territory, political subdivision, taxing authority or
foreign government (as the case may be) are rated at least "A" by
Standard & Poor's or at least "A" by Moody's;
(vi) securities with maturities of one year or less from the
date of acquisition backed
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by standby letters of credit issued by any lender under the New Credit
Facility or any commercial bank satisfying the criteria of clause (iii)
of this definition;
(vii) money market funds at least 95% of the assets of which
constitute Cash Equivalents of the kinds described in clauses (i)
through (vi) of this definition; and
(viii) Investments with maturities of one year or less made by
Foreign Subsidiaries in accordance with their normal investment
practices for cash management, PROVIDED that those instruments are
rated at least "P-2" by Moody's or "A-2" by Standard & Poor's (or, in
their absence, an equivalent rating from another nationally recognized
securities rating agency).
"CLEARSTREAM" means Clearstream Banking, societe anonyme.
"CHANGE OF CONTROL" means the occurrence of any of the following:
(i) the sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of
related transactions, of all or substantially all of the assets of the
Company and its Restricted Subsidiaries, taken as a whole to any
"person" (as such term is defined in Section 13(d)(3) of the Exchange
Act);
(ii) the adoption of a plan relating to the liquidation or
dissolution of the Company other than in a transaction which complies
with the covenant described under Section 5.1 hereof;
(iii) the consummation of any transaction (including, without
limitation, any merger or consolidation) the result of which is that
any "person" (as defined above) becomes the "beneficial owners" (as
such term is defined in Rule 13d-3 and Rule 13d-5 under the Exchange
Act, directly or indirectly, of more than 50% of the total of the
Voting Stock of the Company (measured by voting power rather than
number of shares);
(iv) the first day on which a majority of the members of the
Board of Directors are not Continuing Directors; or
(v) the Company consolidates with, or merges with or into, any
Person, or sells, assigns, conveys, transfers, leases or otherwise
disposes of all or substantially all of its assets to any Person, or
any Person consolidates with, or merges with or into, the Company, in
any such event pursuant to a transaction in which any of the
outstanding Voting Stock of the Company is converted into or exchanged
for cash, securities or other property, other than any such transaction
where the Voting Stock of the Company outstanding immediately prior to
such transaction is converted into or exchanged for Voting Stock (other
than Disqualified Stock) of the surviving or transferee Person
constituting a majority of the outstanding shares of such Voting Stock
of such surviving or transferee Person (immediately after giving effect
to such issuance).
For avoidance of doubt, the Spin-Off shall not constitute a Change of
Control hereunder.
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"CLOSING DATE" means May 26, 2000, the date on which the conditions
precedent set forth in Section 4.1 of the Senior Loan Agreement were satisfied
or waived.
"COMPANY" has the meaning assigned to it in the preamble to this
Indenture.
"CONSOLIDATED CASH FLOW AFTER FLEET COSTS" means, with respect to any
Person for any period, the Consolidated Net Income of such Person for such
period plus:
(i) an amount equal to any extraordinary loss plus any net
loss realized in connection with an Asset Sale (to the extent such
losses were deducted in computing such Consolidated Net Income); plus
(ii) provision for taxes based on income or profits of such
Person and its Restricted Subsidiaries for such period, to the extent
that such provision for taxes was included in computing such
Consolidated Net Income; plus
(iii) consolidated interest expense of such Person and its
Restricted Subsidiaries for such period (except with respect to
Permitted Vehicle Indebtedness), whether paid or accrued and whether or
not capitalized (including, without limitation, amortization of debt
issuance costs and original issue discount, non-cash interest payments,
the interest component of any deferred payment obligations, the
interest component of all payments associated with Capital Lease
Obligations, commissions, discounts and other fees and charges incurred
in respect of letter of credit or bankers' acceptance financings, and
net payments (if any) pursuant to Hedging Obligations), to the extent
that any such expense was deducted in computing such Consolidated Net
Income; plus
(iv) non-vehicle related depreciation and amortization
(including amortization of goodwill and other intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period)
of such Person and its Restricted Subsidiaries for such period to the
extent that such depreciation and amortization were deducted in
computing such Consolidated Net Income; plus
(v) all one-time fees, costs and expenses (including cash
compensation payments) incurred by the Company and its Restricted
Subsidiaries in connection with the Spin-Off, plus
(vi) any non-cash compensation charge arising from the grant
or issuance of stock, stock options or other equity based awards; minus
(vii) non-vehicle related non-cash items increasing such
Consolidated Net Income for such period (other than items that were
accrued in the ordinary course of business), in each case, on a
consolidated basis and determined in accordance with GAAP.
Notwithstanding the foregoing, the provision for taxes on the income or
profits of, and the non-vehicle related depreciation and amortization and other
non-cash charges of, a Restricted Subsidiary of the Company shall be added to
Consolidated Net Income to compute Consolidated
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Cash Flow After Fleet Costs of the Company only to the extent (and in same
proportion) that the Net Income of such Restricted Subsidiary was included in
calculating the Consolidated Net Income of such Person and only if a
corresponding amount would be permitted at the date of determination to be
dividended to the Company by such Restricted Subsidiary without prior
governmental approval (that has not been obtained), and without direct or
indirect restriction pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to that Restricted Subsidiary or its stockholders.
"CONSOLIDATED NET INCOME" means, with respect to any Person for any
period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries (for such period, on a consolidated basis, determined in accordance
with GAAP); PROVIDED THAT:
(i) the Net Income (but not loss) of any Person that is not a
Restricted Subsidiary or that is accounted for by the equity method of
accounting shall be included only to the extent of the amount of
dividends or distributions paid in cash to the referent Person or a
Wholly Owned Subsidiary;
(ii) the Net Income of any Restricted Subsidiary shall be
excluded to the extent that the declaration or payment of dividends or
similar distributions by that Restricted Subsidiary of that Net Income
is not at the date of determination permitted without any prior
governmental approval (that has not been obtained) or, directly or
indirectly, by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Restricted Subsidiary or its
stockholders;
(iii) the Net Income of any Person acquired in a pooling of
interests transaction for any period prior to the date of such
acquisition shall be excluded; and
(iv) the cumulative effect of a change in accounting
principles shall be excluded.
"CONSOLIDATED TANGIBLE ASSETS" means, as applied to the Company, the
total consolidated tangible assets of the Company and its Restricted
Subsidiaries less the amount of revenue earning vehicles, net, all as calculated
on a consolidated basis in accordance with GAAP.
"CONTINUING DIRECTOR" means, as of any date of determination, any
member of the Board of Directors of the Company who (1) was a board member on
the Spin-Off Date or (2) was nominated for election or elected to such Board of
Directors with the approval of a majority of the Continuing Directors who were
members of such Board of Directors at the time of such nomination or election.
"CONTINUING OBLIGATIONS" means all obligations of the Company and its
Restricted Subsidiaries, currently existing or entered into in the future,
including reimbursement, indemnification and loan obligations, to AutoNation,
Inc. and any of its subsidiaries, as a result of payments made by AutoNation,
Inc. and any of its subsidiaries under (1) the Credit Agreement, as amended and
restated on March 26, 1999, among Republic Industries
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Autovermietung GmbH, Commerzbank AG, Bremen Branch and the other parties
thereto, (2) the Loan Note Instrument, dated October 15, 1997, by Republic
Industries (UK) PLC, with respect to Floating Rate Guaranteed Unsecured Loan
Notes 2003, (3) the leases, dated as of July 8, 1997, between Value Rent-A-Car,
Inc., as tenant, and Mitsubishi Motor Sales of America, Inc., as landlord, (4)
the Motor Vehicle Lease Agreement, dated as of July 1997, between Mitsubishi
Motor Sales of America, Inc., Value Rent-A-Car, Inc., Alamo Rent-A-Car, Inc.,
National Car Rental System, Inc., Spirit Rent-A-Car, Inc. and Republic
Industries, Inc. and (5) the General Motors Letter of Credit, each as amended
through and as in effect on the date of this Indenture.
"CONVERSION DATE" means the date, if any, on which the Initial Loans
convert to the Rollover Term Loans in accordance with Section 2.1(b) of the
Senior Loan Agreement.
"CONVERSION RATE" means, as of any date, the sum of (i) 13.5% and (ii)
the then applicable Rollover Spread.
"CORPORATE TRUST OFFICE OF THE TRUSTEE" shall be at the address of the
Trustee specified in Section 11.2 hereof or such other address as to which the
Trustee may give notice to the Company.
"CREDIT FACILITY" or "CREDIT FACILITIES" means, with respect to the
Company or a Restricted Subsidiary, one or more debt facilities (including,
without limitation, the New Credit Facility) or commercial paper facilities with
banks or other institutional lenders providing for revolving credit loans,
receivables financing (including through the sale of receivables to such lenders
or to special purpose entities formed to borrow from such lenders against such
receivables) or letters of credit, in each case, as amended, restated, modified,
renewed, restructured, extended, supplemented, refunded, replaced or refinanced
in whole or in part from time to time, including without limitation any
amendment extending the maturity of any Indebtedness incurred thereunder,
increasing the amount incurred or available thereunder in accordance with the
terms hereof or deleting, adding or substituting one or more parties thereto.
"CUSTODIAN" means the Trustee, as custodian with respect to the Notes
in global form, or any successor entity thereto.
"CUSTOMER LEASE FINANCING LOANS" has the meaning set forth in the
definition of "Specified Financing Subsidiary."
"DEBT REGISTRATION RIGHTS AGREEMENT" shall mean the agreement dated the
Spin-Off Date among ANC Rental Corporation, the Guarantors and Xxxxxx Commercial
Paper Inc. as administrative agent, as amended from time to time, relating to
the registration rights with respect to the Exchange Notes.
"DEFAULT" means any event that is or with the passage of time or the
giving of notice (or both) would be an Event of Default.
"DEFINITIVE NOTE" means a certificated Note registered in the name of
the Holder thereof and issued in accordance with Section 2.6 hereof,
substantially in the form of Exhibit A hereto,
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except that such Note shall not bear the Global Note Legend and shall not have
the "Schedule of Exchanges of Interests in the Global Note" attached thereto.
"DEPOSITARY" means, with respect to the Notes issuable or issued in
whole or in part in global form, the Person specified in Section 2.7 hereof as
the Depositary with respect to the Notes, and any and all successors thereto
appointed as depositary hereunder and having become such pursuant to the
applicable provision of this Indenture.
"DESIGNATED NONCASH CONSIDERATION" means the fair market value of
non-cash consideration received by the Company or any of its Restricted
Subsidiaries in connection with an Asset Sale that is so designated pursuant to
an officer's certificate, setting forth the basis of the valuation. The
aggregate fair market value of the Designated Noncash Consideration, taken
together with the fair market value at the time of receipt of all other
Designated Noncash Consideration received, must be less than 5% of the Company's
Consolidated Tangible Assets at the time of the receipt of the Designated
Noncash Consideration (with the fair market value being measured at the time
received and without giving effect to subsequent changes in value).
"DISQUALIFIED STOCK" means any Capital Stock that, by its terms (or by
the terms of any security into which it is convertible or for which it is
exchangeable at the option of the holder thereof), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder thereof, in
whole or in part (other than as a result of the death or disability of the
holder thereof or the termination of the employment with the Company or one of
the Company's Restricted Subsidiaries of the holder thereof), on or prior to the
date that is 91 days after the Final Maturity Date, except to the extent that
such Capital Stock is solely redeemable with, or solely exchangeable for, any
Capital Stock of such Person that is not Disqualified Stock. Notwithstanding the
preceding sentence, any Capital Stock that would constitute Disqualified Stock
solely because the holders thereof have the right to require the Company to
repurchase such Capital Stock upon the occurrence of a change of control or an
asset sale shall not constitute Disqualified Stock if the terms of such Capital
Stock provide that the Company may not repurchase or redeem any such Capital
Stock pursuant to such provisions unless such repurchase or redemption complies
with the covenant described under Section 4.7 hereof
"DISTRIBUTION COMPLIANCE PERIOD" means the 40-day distribution
compliance period as defined in Regulation S.
"DOMESTIC SUBSIDIARY" means any Subsidiary of the Company organized
under the laws of the United States or any state thereof or the District of
Columbia.
"ELIGIBLE VEHICLES" shall mean the motor vehicle inventory of the
Company and its Restricted Subsidiaries, in each case, whether held for sale,
lease or rental purposes together with service vehicles.
"EQUITY INTERESTS" means, Capital Stock and all warrants, options or
other rights to acquire Capital Stock (but excluding any debt security that is
convertible into, or exchangeable for, Capital Stock).
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"EQUITY REGISTRATION RIGHTS AGREEMENT" shall mean the agreement dated
the Spin-Off Date between the Company and the Administrative Agent, as amended
from time to time, related to the registration rights with respect to the
warrants referred to therein.
"ESCROW AGENT" shall mean The Bank of New York, as Escrow Agent
pursuant to the Escrow Agreement dated as of the Spin-Off Date among the
Company, the Administrative Agent and the Escrow Agent, as amended from time to
time in accordance with the terms thereof.
"EUROCLEAR" means Xxxxxx Guaranty Trust Company of New York, Brussels
office, as operator of the Euroclear system.
"EVENT OF DEFAULT" means any of the events specified in Article 6,
provided that all requirements for the giving of notice, lapse of time, or both,
and any other conditions, have been satisfied.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
"EXCHANGE NOTES" has the meaning specified in the preamble hereto.
"EXCHANGE OFFER" has the meaning set forth in the Debt Registration
Rights Agreement.
"EXCHANGE OFFER REGISTRATION STATEMENT" has the meaning set forth in
the Debt Registration Rights Agreement.
"EXCHANGE REQUEST" has the meaning set forth in Section 2.1(a).
"EXISTING INDEBTEDNESS" means Indebtedness of the Company and its
Restricted Subsidiaries committed or in existence on the Closing Date.
"FINAL MATURITY DATE" means the sixth anniversary of the Initial
Maturity Date.
"FIXED CHARGE COVERAGE RATIO" means with respect to any Person for any
period, the ratio of the Consolidated Cash Flow After Fleet Costs of such Person
for such period to the Fixed Charges After Fleet Costs of such Person for such
period. In the event that the Company or any of its Restricted Subsidiaries
incurs, assumes, Guarantees or repurchases, repays, defeases or otherwise
redeems any Indebtedness (other than revolving credit borrowings under any
Credit Facility unless such Indebtedness has been permanently repaid and has not
been replaced) or issues, repurchases or redeems preferred stock subsequent to
the commencement of the period for which the Fixed Charge Coverage Ratio is
being calculated but on or prior to the date on which the event for which the
calculation of the Fixed Charge Coverage Ratio is made (the "CALCULATION
DATE"), then the Fixed Charge Coverage Ratio shall be calculated giving pro
forma effect to such incurrence, assumption, Guarantee, repurchase, repayment,
defeasance or redemption of Indebtedness, or such issuance, repurchase or
redemption of preferred stock, and the use of the proceeds therefrom, including
to refinance other Indebtedness, as if the same had occurred at the beginning of
the applicable four-quarter reference period (except that, in making such
computation, the amount of Indebtedness under any revolving credit facility
shall be
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computed based on the average daily balance of such Indebtedness during such
period). In addition, for purposes of making the computation referred to above:
(i) acquisitions that have been made by the Company or any of
its Restricted Subsidiaries, including through mergers or
consolidations and including any related financing transactions, during
the four-quarter reference period or subsequent to such reference
period and on or prior to the Calculation Date shall be deemed to have
occurred on the first day of the four-quarter reference period and
Consolidated Cash Flow After Fleet Costs for such reference period
shall be calculated without giving effect to clause (iii) of the
proviso set forth in the definition of Consolidated Net Income;
(ii) the Consolidated Cash Flow After Fleet Costs directly
attributable to discontinued operations, as determined in accordance
with GAAP, and operations or businesses disposed of prior to the
Calculation Date, shall be excluded; and
(iii) the Fixed Charges After Fleet Costs directly
attributable to discontinued operations, as determined in accordance
with GAAP, and operations or businesses disposed of prior to the
Calculation Date, shall be excluded, but only to the extent that the
obligations giving rise to such Fixed Charges After Fleet Costs will
not be obligations of the referent Person or any of its Restricted
Subsidiaries following the Calculation Date.
For purposes of calculating the Fixed Charge Coverage Ratio,
(a) acquisitions, Investments and dispositions which have been made by any
Person which has become a Restricted Subsidiary of the Company or been merged
with or into the Company or any Restricted Subsidiary of the Company during the
reference period, or subsequent to the reference period but prior to the
Calculation Date, shall be calculated on a pro forma basis, including all of the
calculations referred to above, assuming that such acquisitions and dispositions
occurred on the first day of the reference period; and (b) for purposes of
determining the pro forma effect of any acquisitions referred to in (i) above,
Consolidated Cash Flow After Fleet Costs may be determined in good faith by a
responsible financial or accounting officer of the Company to give effect to the
pro forma effect of expense and cost reductions provided that such calculations
are done on a basis that is consistent with Regulation S-X under the Securities
Act.
"FIXED CHARGES AFTER FLEET COSTS" means, with respect to any Person for
any period, the sum, without duplication, of:
(i) the consolidated interest expense of such Person and its
Restricted Subsidiaries for such period (except with respect to
Permitted Vehicle Indebtedness), whether paid or accrued (including,
without limitation, amortization of debt issuance costs and original
issue discount, non-cash interest payments, the interest component of
any deferred payment obligations, the interest component of all
payments associated with Capital Lease Obligations (excluding any
interest component of a capitalized lease in respect of that portion of
a Capital Lease Obligation of a Restricted Subsidiary that is
non-recourse to such Person), commissions, discounts and other fees and
charges incurred in respect of letter of credit or bankers' acceptance
financings, and net payments, if any, pursuant to Hedging Obligations);
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(ii) the consolidated interest of such Person and its
Restricted Subsidiaries that was capitalized during such period (except
with respect to Permitted Vehicle Indebtedness);
(iii) any interest expense actually paid on Indebtedness of
another Person that is Guaranteed by such Person or one of its
Restricted Subsidiaries or secured by a Lien on assets of such Person
or one of its Restricted Subsidiaries (whether or not such Guarantee or
Lien is called upon); and
(iv) the product of (a) all dividend payments, whether or not
in cash, on any series of preferred stock of such Person or any of its
Restricted Subsidiaries, other than dividend payments on Equity
Interests payable solely in Equity Interests of the Company (other than
Disqualified Stock), multiplied by (b) a fraction, the numerator of
which is one and the denominator of which is one minus the then current
combined federal, state and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in
accordance with GAAP.
"FOREIGN ASSET SALE" means an Asset Sale in respect of the Capital
Stock or assets of a Foreign Subsidiary to the extent that the proceeds of such
Asset Sale are received by a Person subject in respect of such proceeds to the
tax laws of a jurisdiction other than the United States of America or any state
thereof or the District of Columbia.
"FOREIGN SUBSIDIARY" means any either (a) any Subsidiary of the Company
that is not a Domestic Subsidiary or (b) a Domestic Subsidiary whose only assets
are the Capital Stock of one or more Foreign Subsidiaries.
"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, the statements and pronouncements of
the Financial Accounting Standards Board and such other statements by such other
entities as have been approved by a significant segment of the accounting
profession, which are applicable (1) at the Closing Date and (2) with respect to
periodic reporting requirements, as in effect from time to time.
"GENERAL MOTORS LETTER OF CREDIT" means the letters of credit, in the
aggregate face amounts of $60,000,000 issued by Deutsche Bank and West LB for
the benefit of The Bank of New York, as agent.
"GLOBAL NOTES" means, individually and collectively, each of the
Restricted Global Notes and the Unrestricted Global Notes, substantially in the
form of Exhibit A hereto.
"GLOBAL NOTE LEGEND" means the legend set forth in Section 2.10(f)(ii),
which is required to be placed on all Global Notes issued under this Indenture.
"GOVERNMENT SECURITIES" means direct obligations of, or obligations
guaranteed by, the United States of America, and the payment for which the
United States pledges its full faith and credit.
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"GUARANTEE" means a guarantee (other than by endorsement of negotiable
instruments for collection in the ordinary course of business), direct or
indirect, in any manner (including, without limitation, letters of credit and
reimbursement agreements in respect thereof), of all or any part of any
Indebtedness. The amount of any Guarantee shall be deemed to be the lower of (a)
an amount equal to the stated or determinable amount of the primary obligation
in respect of which such Guarantee is made and (b) the maximum amount for which
such guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee, unless such primary obligation and the maximum amount
for which such guaranteeing person may be liable are not stated or determinable,
in which case the amount of such guarantee shall be such guaranteeing person's
maximum reasonably anticipated liability in respect thereof as determined by the
Company in good faith.
"GUARANTOR" means any Subsidiary as set forth in Exhibit G and any
other Subsidiary that executes a Subsidiary Guarantee in accordance with the
provisions of this Indenture, and its respective successors and assigns.
"GUARANTOR SUBORDINATED OBLIGATIONS" with respect to a Guarantor, any
Indebtedness of such Guarantor (whether outstanding on the Closing Date or
thereafter incurred) which is expressly subordinate in right of payment to the
obligations of such Guarantor under such Guarantor's Subsidiary Guarantee
pursuant to a written agreement.
"HEDGING OBLIGATIONS" means, with respect to any Person, the net
payment Obligations of such Person under:
(i) interest rate swap agreements, interest rate cap and floor
agreements and interest rate collar agreements;
(ii) foreign exchange contracts and currency swap agreements;
and
(iii) other agreements or arrangements in the ordinary course
of business designed to protect such Person against fluctuations in
commodity prices, interest rates or currency exchange rates.
"HOLDER" means the Person in whose name a Loan (and any corresponding
Note(s)) is registered.
"IAI GLOBAL NOTE" means the global Note substantially in the form of
Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of and registered in the name of the Depositary
or its nominee that will be issued in a denomination equal to the outstanding
principal amount of the Notes sold to Institutional Accredited Investors.
"INACTIVE SUBSIDIARY" means each Subsidiary of the Company that has
total net assets (as shown on the most recent balance sheet of such Subsidiary
delivered to the Agents) of $100,000 or less.
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"INDEBTEDNESS" means, with respect to any Person, any indebtedness of
such Person, whether or not contingent, in respect of borrowed money or
evidenced by bonds, notes, debentures or similar instruments or letters of
credit (or reimbursement agreements in respect thereof) or banker's acceptances
or representing Capital Lease Obligations or the balance deferred and unpaid of
the purchase price, which purchase price is due more than six months after the
date of placing such property in service or taking delivery thereof, of any
property or representing any Hedging Obligations, except any such balance that
constitutes an accrued expense or trade payable, if and to the extent any of the
foregoing indebtedness (other than letters of credit and Hedging Obligations)
appears as a liability upon a balance sheet of such Person prepared in
accordance with GAAP, as well as all Indebtedness of others secured by a Lien on
any asset of such Person (whether or not such Indebtedness is assumed by such
Person), provided that for purposes of determining the amount of any such
secured Indebtedness, the amount of such Indebtedness shall be limited to the
lesser of the fair market value of such asset or the amount of such Indebtedness
and, to the extent not otherwise included, the Guarantee by such Person of any
Indebtedness of any other Person. The amount of any Indebtedness outstanding as
of any date shall be:
(i) the accreted value thereof, in the case of any
Indebtedness that does not require current payments of interest; and
(ii) the principal amount thereof, together with any interest
thereon that is more than 45 days past due, in the case of any other
Indebtedness.
"INDENTURE" means this Indenture, as amended or supplemented from time
to time.
"INDIRECT PARTICIPANT" means a Person who holds a beneficial interest
in a Global Note through a Participant.
"INITIAL LOAN" means a loan made on the Spin-Off Date by a Lender to
the Company pursuant to the Senior Loan Agreement.
"INITIAL MATURITY DATE": means June 30, 2001.
"INSTITUTIONAL ACCREDITED INVESTOR" means an institution that is an
Aaccredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act, who are not also QIBs.
"INTEREST PAYMENT DATE" means, (a) the last day of each March, June,
September and December and (b) the date of any repayment or prepayment made in
respect of any Note.
"INVESTMENTS" means, with respect to any Person, all investments by
such Person in other Persons (including Affiliates) in the forms of direct or
indirect loans (including Guarantees of Indebtedness or other Obligations),
advances of assets or capital contributions (excluding commissions, travel and
entertainment, moving, and similar advances or loans to officers, directors,
consultants and employees made in the ordinary course of business), purchases or
other acquisitions for consideration of Indebtedness, Equity Interests or other
securities, together with all items that are or would be classified as
investments on a balance sheet prepared in accordance
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with GAAP. Investment shall exclude: (i) extensions of trade credit in the
ordinary course of business; (ii) deposits or partial payments made in
anticipation of a purchase or acquisition that would be a Permitted Investment
when consummated; (iii) security deposits or prepayments with respect to
operating leases; and (iv) payments made in connection with the renewals or
exercise of any option to renew an operating lease. If the Company or any of its
Restricted Subsidiaries sells or otherwise disposes of any Equity Interests of
any direct or indirect Restricted Subsidiary of the Company such that, after
giving effect to any such sale or disposition, such Person is no longer a direct
or indirect Restricted Subsidiary of the Company, the Company or such Restricted
Subsidiary, as the case may be, shall be deemed to have made an Investment on
the date of any such sale or disposition equal to the fair market value of the
Equity Interests of such Restricted Subsidiary not sold or disposed of in an
amount determined as provided in the penultimate paragraph of the covenant
described in Section 4.7 hereof.
"LENDERS" means the several banks and other financial institutions or
entities from time to time parties to the Senior Loan Agreement.
"LIEN" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law
(including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in any asset and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction).
"LIQUIDATED DAMAGES" means all liquidated damages then owing pursuant
to Section 3(c) of the Debt Registration Rights Agreement.
"LOANS" means any Initial Loans and Rollover Term Loans made by any
Lender pursuant to the Senior Loan Agreement.
"NET INCOME" means, with respect to any Person, the net income (loss)
of such Person, determined in accordance with GAAP and before any reduction in
respect of preferred stock dividends, excluding, however:
(i) any gain (or loss), together with any related provision
for taxes on such gain (or loss), realized in connection with:
(A) any Asset Sale (including, without limitation,
dispositions pursuant to sale and leaseback transactions); or
(B) he disposition of any securities by such Person
or any of its Restricted Subsidiaries or the extinguishment of
any Indebtedness of such Person or any of its Restricted
Subsidiaries;
(ii) any extraordinary gain (or loss), together with any
related provision for taxes on such extraordinary gain (or loss); and
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(iii) any gain or loss realized upon the termination of any
employee pension benefit plan shall be excluded.
"NET PROCEEDS" means the aggregate cash proceeds or Cash Equivalents
received by the Company or any of its Restricted Subsidiaries in respect of any
Asset Sale (including, without limitation, any cash received upon the sale or
other disposition of any non-cash consideration received in any Asset Sale), net
of
(i) all costs relating to such Asset Sale (including, without
limitation, legal, accounting, investment banking and brokers fees, and
sales and underwriting commissions) and any relocation expenses
incurred as a result thereof;
(ii) taxes paid or payable as a result thereof (after taking
into account any available tax credits or deductions and any tax
sharing arrangements);
(iii) all distributions and other payments required to be made
to minority interest holders in Restricted Subsidiaries or joint
ventures as a result of the Asset Sale;
(iv) all payments made on any Indebtedness which is secured by
any assets subject to such Asset Sale, in accordance with the terms of
any Lien upon or other security agreement of any kind with respect to
such assets, or which must by its terms, or in order to obtain a
necessary consent to such Asset Sale, or by applicable law, be repaid
out of the proceeds from such Asset Sale;
(v) appropriate amounts to be provided by the Company or any
Restricted Subsidiary thereof as a reserve in accordance with GAAP
against any liabilities associated with such assets and retained by the
Company or any Restricted Subsidiary thereof after the Asset Sale,
including without limitation liabilities under any indemnification
obligations and severance and other employee termination costs
associated with the Asset Sale; and
(vi) any portion of the purchase price from an Asset Sale
required by the terms of such Asset Sale to be placed in escrow
(whether as a reserve for a purchase price adjustment, for satisfaction
of indemnity or otherwise), provided that upon termination of such
escrow Net Proceeds will be increased by any portion of the funds
therein released to the Company or any Restricted Subsidiary of the
Company.
"NEW CREDIT FACILITY" means (a) the $175 million secured credit
facility pursuant to the Amended and Restated Credit Agreement, dated as of June
30, 2000, among the Company, the lenders parties thereto, Congress Financial
Corporation (Florida), as administrative agent, and others, including any
related notes, guarantees, collateral documents, instruments and agreements
executed in connection therewith, and in each case as amended, amended and
restated, modified, refunded, replaced or refinanced from time to time including
without limitation any amendment extending the maturity of any Indebtedness
incurred thereunder, increasing the amount incurred or available thereunder in
accordance with the terms hereof or deleting, adding or substituting one or more
parties thereto and (b) the $40 million secured credit facility pursuant to the
Amended and Restated Credit Agreement, dated as of June 30, 2000, among the
Company, the
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lenders parties thereto, Xxxxxx Commercial Paper Inc., as administrative agent,
and others, including any related notes, guarantees, collateral documents,
instruments and agreements executed in connection therewith, and in each case as
amended, amended and restated, modified, refunded, replaced or refinanced from
time to time including without limitation any amendment extending the maturity
of any Indebtedness incurred thereunder, increasing the amount incurred or
available thereunder in accordance with the terms hereof or deleting, adding or
substituting one or more parties thereto.
"NON-RECOURSE DEBT" means Indebtedness:
(i) as to which neither the Company nor any of its Restricted
Subsidiaries:
(A) provides credit support of any kind (including
any undertaking, agreement or instrument that would constitute
Indebtedness but excluding any agreement to provide managerial
support), other than a pledge of Equity Interests of any
Unrestricted Subsidiary;
(B) is directly or indirectly liable (as a guarantor
or otherwise); or
(C) constitutes the lender;
(ii) no default with respect to which (including any rights
that the holders thereof may have to take enforcement action against an
Unrestricted Subsidiary) would permit (upon notice, lapse of time or
both) any holder of any other Indebtedness (other than the Notes being
offered hereby) of the Company or any of its Restricted Subsidiaries to
declare a default on such other Indebtedness or cause the payment
thereof to be accelerated or payable prior to its stated maturity; and
(iii) as to which the lenders have been notified in writing
that they will not have any recourse to the stock or assets of the
Company or any of its Restricted Subsidiaries.
"NON-U.S. PERSON" means a Person who is not a U.S. Person.
"NOTES" the Loan Notes and the Exchange Notes, as originally executed
or as subsequently amended from time to time pursuant to the applicable
provisions hereof.
"OBLIGATIONS" means any principal, premium, if any, interest (including
interest accruing on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company or its Restricted Subsidiaries whether or
not a claim for post-filing interest is allowed in such proceeding), penalties,
fees, charges, expenses, indemnifications, reimbursement obligations, damages
(including liquidated damages, if any), guarantees and other liabilities or
amounts payable under the documentation governing any Indebtedness or in respect
thereof.
"OFFICER" means, with respect to any Person, the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Operating Officer, the
Chief Financial Officer, any Vice President, the General Counsel, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary or any Assistant
Secretary of such Person.
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"OFFICERS' CERTIFICATE" means a certificate signed on behalf of any
Person by either the principal executive officer, the principal financial
officer, the general counsel, the treasurer, the principal accounting officer, a
Senior Vice President or other Responsible Officer that meets the requirements
of Section 11.5 hereof.
"144A GLOBAL NOTE" means a global note substantially in the form of
Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend
and deposited with or on behalf of, and registered in the name of, the
Depositary or its nominee that will be issued in a denomination equal to the
outstanding principal amount of the Notes sold in reliance on Rule 144A.
"OPINION OF COUNSEL" means an opinion from legal counsel that meets the
requirements of Section 11.5 hereof. The counsel may be an employee of or
counsel to any of the Company, any Subsidiary of any of the Company or the
Trustee.
"PARTICIPANT" means, with respect to the Depositary, Euroclear or
Clearstream, a Person who has an account with the Depositary, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear and
Clearstream).
"PERMITTED BUSINESS" means the lines of business conducted by the
Company and its Restricted Subsidiaries on the date hereof and businesses
reasonably related, complimentary or ancillary thereto, including reasonably
related extensions or expansions thereof.
"PERMITTED INVESTMENTS" means:
(i) any Investment in the Company or in a Restricted
Subsidiary of the Company (including the acquisition of any Equity
Interest in a Restricted Subsidiary);
(ii) any Investment in cash or Cash Equivalents;
(iii) any Investment by the Company or any Restricted
Subsidiary of the Company in a Person engaged in a Permitted Business
if as a result of such Investment:
(A) such Person becomes a Restricted Subsidiary of
the Company; or
(B) such Person is merged, consolidated or
amalgamated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, the
Company or a Restricted Subsidiary;
(iv) any Investment made as a result of the receipt of
non-cash consideration from an Asset Sale that was made pursuant to and
in compliance with the covenant described under Section 4.10 hereof or
the disposition of assets not constituting an Asset Sale;
(v) any acquisition of Capital Stock or other securities for
consideration to the extent such consideration consists of Equity
Interests (other than Disqualified Stock) of the Company;
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(vi) other Investments by the Company or any of its Restricted
Subsidiaries in any Person having an aggregate fair market value
(measured as of the date made and without giving effect to subsequent
changes in value), when taken together with all other Investments made
pursuant to this clause (vi) that are at that time outstanding, not to
exceed 5% of the Company's Consolidated Tangible Assets;
(vii) Investments arising in connection with Hedging
Obligations that are incurred in the ordinary course of business for
the purpose of fixing or hedging currency, equity, commodity or
interest rate risk (including with respect to any floating rate
Indebtedness that is permitted by the terms of this Indenture to be
outstanding) in connection with the conduct of the business of the
Company and its Restricted Subsidiaries;
(viii) receivables owing to the Company or any Restricted
Subsidiary created or acquired in the ordinary course of business and
payable or dischargeable in accordance with customary trade terms;
provided, however, that such trade terms may include such concessionary
trade terms as the Company or any such Restricted Subsidiary deems
reasonable under the circumstances;
(ix) payroll, travel, relocation and similar advances 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;
(x) loans or advances to employees made in the ordinary course
of business of the Company or such Restricted Subsidiary;
(xi) 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 or
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of a debtor (including customers and
suppliers) or an Investment acquired by the Company or a Restricted
Subsidiary of the Company as a result of the transfer of title with
respect to any secured Investment in default as a result of a
foreclosure by the Company or any of its Restricted Subsidiaries with
respect to such secured Investment;
(xii) any Investment existing on the Closing Date and any
amendment, modification, restatement, supplement, extension, renewal,
refunding, replacement, refinancing, in whole or in part, thereof;
(xiii) guarantees of Indebtedness permitted under the covenant
described under Section 4.8 hereof;
(xiv) Investment in prepaid expenses, negotiable instruments
held for collection and lease, utility and worker's compensation,
performance and other similar deposits;
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(xv) Investments in any of the Notes;
(xvi) Investments made by any of the Company's insurance
subsidiaries in the ordinary course of their business to the extent
such Investments are not made with funds provided by the Company or any
Restricted Subsidiary solely for the purpose of making such
Investments; and
(xvii) the purchase by the Company or one of its Restricted
Subsidiaries of warrants to purchase preferred stock of E-Travel, Inc.
and the exercise of such warrants for an aggregate amount not to exceed
$1.75 million.
"Permitted Liens" means :
(i) Liens on assets of the Company or any Restricted
Subsidiary to secure Indebtedness permitted by clause (i), (ii) or (xx)
of Section 4.8(b);
(ii) Liens on the assets of the Company or any of its
Restricted Subsidiaries to secure Hedging Obligations, provided that
the Liens are only secured by property or assets that secure the
Indebtedness relating to the Hedging Obligation or the property
securing Indebtedness under any Credit Facility permitted by this
Indenture to be incurred;
(iii) Liens on property, assets or Equity Interests of a
Person existing at the time such Person is merged into or consolidated
with the Company or any Restricted Subsidiary of the Company; provided
that such Liens were in existence prior to the contemplation of such
merger or consolidation and do not extend to any assets other than
those of the Person merged into or consolidated with the Company;
(iv) Liens on property existing at the time of acquisition
thereof by the Company or any Restricted Subsidiary of the Company,
provided that, such Liens were in existence prior to the contemplation
of such acquisition and only extend to the property so acquired;
(v) Liens existing on the Closing Date;
(vi) Liens securing Permitted Refinancing Indebtedness
incurred to refinance Indebtedness that was previously so secured,
provided that any such Lien is limited to all or part of the same
property or assets (plus improvements, accessions, proceeds or
dividends or distributions in respect thereof) that secured (or, under
the written arrangements under which the original Lien arose, could
secure) the Indebtedness being refinanced or is in respect of property
that is the security for a Permitted Lien hereunder;
(vii) Liens in favor of the Company or any Restricted
Subsidiary, including Liens securing Indebtedness or other obligations
of a Restricted Subsidiary owing to the Company or Restricted
Subsidiary;
(viii) Liens to secure the performance of statutory
obligations, surety or appeal bonds,
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performance bonds, letters of credit permitted by this Indenture,
deposits to secure the performance of bids, trade contracts, government
contracts, leases or licenses or other obligations of a like nature
incurred in the ordinary course of business (including, without
limitation, landlord Liens on leased properties);
(ix) Liens for taxes, assessments or governmental charges or
claims that are not yet delinquent or that are being contested in good
faith by appropriate proceedings, provided that any reserve or other
appropriate provision as shall be required to conform with GAAP shall
have been made therefor;
(x) Liens to secure Indebtedness (including Capital Lease
Obligations) permitted by clause (iv) of Section 4.8(b) hereof covering
only the assets acquired with such Indebtedness;
(xi) liens imposed by law, such as carriers', warehousemen's,
mechanics', landlords', materialmen's, repairmen's or other like Liens,
in each case, arising in the ordinary course of business in respect of
obligations not overdue for a period in excess of 60 days or which are
being contested in good faith by appropriate proceedings promptly
instituted and diligently prosecuted; provided that any reserve or
other appropriate provision as shall be required to conform with GAAP
shall have been made therefor;
(xii) easements, rights-of-way, minor survey exceptions,
zoning and similar restrictions and other similar encumbrances or title
defects incurred, or leases or subleases granted to others, in the
ordinary course of business, which do not in any case materially
detract from the value of the property subject thereto or do not
interfere with or adversely affect in any material respect the ordinary
conduct of the business of the Company and its Restricted Subsidiaries
taken as a whole;
(xiii) Liens in favor of customs and revenue authorities to
secure payment of customs duties in connection with the importation of
goods in the ordinary course of business and other similar Liens
arising in the ordinary course of business;
(xiv) leases or subleases granted to third Persons not
interfering with the ordinary course of business of the Company or any
of its Restricted Subsidiaries and not otherwise prohibited by this
Indenture;
(xv) Liens (other than any Lien imposed by the Employee
Retirement Income Security Act of 1974, as amended, or any rule or
regulation promulgated thereunder) incurred or deposits made in the
ordinary course of business in connection with workers' compensation,
unemployment insurance, and other types of social security benefits or
obligations, public or statutory obligations or other obligations of a
like general nature incurred in the ordinary course of business;
(xvi) any attachment or judgment Lien not constituting an
Event of Default under clause (g) of the first paragraph of the section
described above under Section 6.1;
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(xvii) any interest or title of a lessor or sublessor under
any operating lease;
(xviii) Liens on any airport concession agreements or permits
to secure loans extended to finance tenant improvements used in
connection with the concession agreement or permit subject to such
Lien;
(xix) Liens on Permitted Vehicle Collateral securing Permitted
Vehicle Indebtedness and liens on cash collateral or Cash Equivalents
as permitted by the terms of the documentation governing the Permitted
Vehicle Indebtedness;
(xx) Liens securing Customer Lease Financing Loans incurred
without violation of this Indenture;
(xxi) Liens on the assets or Equity Interests of Unrestricted
Subsidiaries that secure Non-Recourse Debt of Unrestricted Subsidiaries
not otherwise prohibited by this Indenture; and
(xxii) Liens (not in respect of Indebtedness) arising from
financing statements filed under the Uniform Commercial Code for
informational purposes with respect to leases incurred in the ordinary
course of business.
(xxiii) Liens on assets so long as neither (a) the aggregate
outstanding principal amount of the obligations secured thereby nor (b)
the aggregate fair market value (determined, in the case of each such
Lien, as of the date such Lien is incurred) of the assets subject
thereto (as to the Company and all Restricted Subsidiaries) exceeds $5
million at any one time.
"PERMITTED REFINANCING INDEBTEDNESS" means any Indebtedness of the
Company or any of its Restricted Subsidiaries issued in exchange for, or the net
proceeds of which are used to extend, refinance, renew, replace, restructure,
supplement, defease or refund other Indebtedness of the Company or any of its
Restricted Subsidiaries (other than intercompany Indebtedness); PROVIDED that:
(i) principal amount (or accreted value, if applicable) of
such Permitted Refinancing Indebtedness does not exceed the principal
amount of (or accreted value, if applicable), plus accrued and unpaid
interest on, any Indebtedness so extended, refinanced, renewed,
replaced, restructured, supplemented, defeased or refunded (plus the
amount of expenses and premiums incurred in connection therewith);
(ii) such Permitted Refinancing Indebtedness has a final
maturity date later than the final maturity date of, and has a Weighted
Average Life to Maturity equal to or greater than the Weighted Average
Life to Maturity of, the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded;
(iii) if the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded is subordinated in right of payment to
the Notes, such Permitted Refinancing
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Indebtedness has a final maturity date later than the final maturity
date of, and is subordinated in right of payment to, the Notes on terms
at least as favorable to the Holders as those contained in the
documentation governing the Indebtedness being extended, refinanced,
renewed, replaced, defeased or refunded; and
(iv) such Indebtedness is incurred either by the Company or a
Restricted Subsidiary who is the obligor on the Indebtedness being
extended, refinanced, renewed, replaced, defeased or refunded or a
Guarantor.
"PERMITTED VEHICLE COLLATERAL" means, as of any Determination Date or
at any other time, the collateral securing Permitted Vehicle Indebtedness and
covering cash collateral deposits, vehicles and assets attributable to, or
directly associated with, vehicles, such as manufacturers' obligations to
repurchase such vehicles, rental receivables and receivables arising on the
disposition of vehicles, proceeds of insurance covering such vehicles, and any
other property of a type customarily securing Permitted Vehicle Indebtedness.
"PERMITTED VEHICLE INDEBTEDNESS" means (i) Indebtedness incurred by the
Company or any Restricted Subsidiary to finance or refinance, directly or
indirectly, Eligible Vehicles (but only to the extent actually used to finance
or refinance Eligible Vehicles) and (ii) Indebtedness of the Company or any
Restricted Subsidiary secured by Permitted Vehicle Collateral; provided,
however, that any Indebtedness redesignated pursuant to clause (b)(iii) of
Section 4.9 shall not constitute Permitted Vehicle Indebtedness; and provided,
further, that the Loans shall not be deemed to constitute Permitted Vehicle
Indebtedness when incurred.
"PERSON" means any individual, corporation, partnership, joint venture,
association, joint-stock company, trust, unincorporated organization, government
or any agency or political subdivision thereof or any other entity.
"PIK INTEREST AMOUNT" means the aggregate amount equal to the amount of
interest borne by the Notes in excess of 14% per annum or 16% per annum if the
interest rate borne by such notes is increased pursuant to Section 2.3(b).
"PRIVATE PLACEMENT LEGEND" means the legend set forth in Section 2.10
to be placed on all Notes issued under this Indenture except where otherwise
permitted by the provisions of this Indenture.
"QIB" means a Aqualified institutional buyer" as defined in Rule 144A.
"REDEMPTION PREMIUM" means, with respect to a Note of any series on any
redemption date, the excess, if any, of (i) the present value at such time of
(A) the principal amount of such Note plus (B) all required interest payments
that would have been payable on such Note but for such redemption (excluding any
accrued interest for the period prior to the redemption date), computed by
discounting (on a semi-annual basis) such amounts using a discount rate equal to
the Treasury Rate plus 50 basis points, over (ii) the principal amount of such
Note.
"REGULATION S" means Regulation S promulgated under the Securities Act.
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"REGULATION S GLOBAL NOTE" means a global Note bearing the Private
Placement Legend and deposited with or on behalf of the Depositary and
registered in the name of the Depositary or its nominee, issued in a
denomination equal to the outstanding principal amount of the Notes initially
sold in reliance on Rule 903 of Regulation S.
"REGULATION S PERMANENT GLOBAL NOTE" means a permanent global Note in
the form of Exhibit A hereto bearing the Global Note Legend and the Private
Placement Legend and deposited with or on behalf of and registered in the name
of the Depositary or its nominee, issued in a denomination equal to the
outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.
"REGULATION S TEMPORARY GLOBAL NOTE" means a temporary global Note in
the form of Exhibit A hereto bearing the Private Placement Legend and deposited
with or on behalf of and registered in the name of the Depositary or its
nominee, issued in a denomination equal to the outstanding principal amount of
the Notes initially sold in reliance on Rule 903 of Regulation S.
"RESPONSIBLE OFFICER" shall mean, (1) when used with respect to the
Trustee, any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant secretary,
assistant treasurer, trust officer or any other officer of the Trustee who
customarily performs functions similar to those performed by the Persons who at
the time shall be such officers, respectively, or to whom any corporate trust
matter is referred because of such person's knowledge of and familiarity with
the particular subject and who shall have direct responsibility for the
administration of this Indenture and (2) with respect to any person, any officer
who has knowledge of and familiarity with the particular subject.
"RESTRICTED DEFINITIVE NOTE" means a Definitive Note bearing the
Private Placement Legend.
"RESTRICTED GLOBAL NOTE" means a Global Note bearing the Private
Placement Legend.
"RESTRICTED INVESTMENT" means an Investment other than a Permitted
Investment.
"RESTRICTED SUBSIDIARY" means with respect to a Person, any Subsidiary
of such Person that is not an Unrestricted Subsidiary; PROVIDED that, on the
Closing Date, all Subsidiaries of the Company shall be Restricted Subsidiaries
of the Company.
"RISK MANAGEMENT SUBSIDIARY" means each of Post Retirement Liability
Management, Inc., a Florida corporation, and Rental Liability Management, Inc.,
a Florida corporation.
"ROLLOVER SPREAD" means 50 basis points during the 90-day period
commencing on the Initial Maturity Date, increasing by 50 basis points upon each
90-day anniversary of the Initial Maturity Date.
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"ROLLOVER TERM LOAN" means a loan made on the Initial Maturity Date, if
any, by a Lender to the Company pursuant to Section 2.1(b) of the Senior Loan
Agreement to refinance an Initial Loan.
"RULE 144" means Rule 144 promulgated under the Securities Act.
"RULE 144A" means Rule 144A promulgated under the Securities Act.
"RULE 903" means Rule 903 promulgated under the Securities Act.
"RULE 904" means Rule 904 promulgated the Securities Act.
"SEC" means the Securities and Exchange Commission or any successor
agency or body.
"SECURITIES ACT" means the Securities Act of 1933, as amended from time
to time.
"SENIOR LOAN AGREEMENT" means the Amended and Restated Senior Loan
Agreement, dated as of June 30, 2000, among the Company, the lenders named
therein, Xxxxxx Brothers Inc., as sole arranger, and Xxxxxx Commercial Paper
Inc., as syndication agent and administrative agent, including any related
notes, guarantees, collateral documents, instruments and agreements executed in
connection therewith, and in each case, as amended, restated, supplemented,
modified, renewed, refunded, replaced or refinanced from time to time.
"SEPARATION AND DISTRIBUTION AGREEMENT" means the Separation and
Distribution Agreement entered into by the Company and AutoNation on the
Spin-Off Date, as the same may be amended, supplemented or otherwise modified in
accordance with Section 4.14 herein.
"SERIES" means all Notes issued under Section 2.3(a) hereof with the
same Conversion Rate.
"SHELF REGISTRATION STATEMENT" means the Shelf Registration Statement
as defined in the Debt Registration Rights Agreement.
"SIGNIFICANT SUBSIDIARY" means any Subsidiary of the Company that is a
"significant subsidiary" as that term is defined under Rule 405 of the
Securities Act.
"SPECIFIED FINANCING SUBSIDIARY" means a Wholly Owned Subsidiary of
the Company (into which the Company or a Restricted Subsidiary has directly or
indirectly contributed only nominal equity) that is solely engaged in the
business of acquiring vehicles for and then leasing such vehicles to, a
specified customer (the "CUSTOMER"); provided that:
(i) such vehicles are purchased solely with the proceeds of
loans made by the Customer to such Specified Financing Subsidiary (the
"CUSTOMER LEASE FINANCING LOANS");
(ii) neither the Company nor any Restricted Subsidiary of the
Company provides the Specified Financing Subsidiary any guarantee or
credit support of any kind (including any undertaking, guarantee,
indemnity, agreement or instrument that would constitute Indebtedness)
or is directly or indirectly liable (as a guarantor or otherwise) for
such Customer Lease Financing Loans; and
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(iii) the explicit terms of such Customer Lease Financing
Loans provide that there shall be no recourse against any of the assets
of the Company or its Restricted Subsidiaries.
"SPIN-OFF" means the proposed distribution by AutoNation to its
shareholders in a tax-free spin-off of 100% of the shares of common stock of the
Company on or prior to July 31, 2000.
"SPIN-OFF DATE" means the date, on or before July 31, 2000, upon which
the the Spin-Off occurs and all of the conditions to funding set forth in
Section 4.2 of the Senior Loan Agreement have been satisfied.
"SPIN-OFF DOCUMENTS" means the AutoNation Reimbursement Agreement, the
Transitional Services Agreement, the Tax Sharing Agreement, the Separation and
Distribution Agreement and the Benefits Agreement.
"STATED MATURITY" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which such payment of
interest or principal was scheduled to be paid in the New Credit Facility or
other original documentation governing such Indebtedness, and shall not include
any contingent obligations to repay, redeem or repurchase any such interest or
principal prior to the date originally scheduled for the payment thereof.
"SUBORDINATED OBLIGATION" any Indebtedness of the Company (whether
outstanding on the date of this Indenture or thereafter incurred or arising)
which is subordinate or junior in right of payment to the Notes pursuant to a
written agreement.
"SUBSEQUENT EXCHANGE NOTES" means Exchange Notes issued by the Company
for the payment of PIK Interest Amounts under the terms of Section 2.3(a)(ii)
hereof.
"SUBSIDIARY" means, with respect to any Person:
(i) any corporation, association or other business entity of
which more than 50% of the total voting power of shares of Capital
Stock entitled (without regard to the occurrence of any contingency) to
vote in the election of directors, managers or trustees thereof is at
the time owned or controlled, directly or indirectly, by such Person
and
(ii) any partnership (a) the sole general partner or the
managing general partner of which is such Person or an entity described
in clause (i) and related to such Person or (b) the only general
partners of which are such Person or of one or more entities described
in clause (i) and related to such Person (or any combination thereof).
"SUBSIDIARY GUARANTEE" means the Guarantees by the Guarantors listed on
Exhibit G and such new Guarantors that execute the supplemental indenture in the
form of Exhibit F of all of the Company's Obligations under the Loans and the
Notes.
"TAX SHARING AGREEMENT" the Tax Sharing Agreement entered into by the
Company and AutoNation on or before the Spin-Off Date, as the same may be
amended, supplemented or otherwise modified in accordance with Section 4.14
herein.
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"TIA" means the Trust Indenture Act of 1939 (15 U.S.C. ss 77aaa-77bbbb)
as in effect on the date on which this Indenture is qualified under the TIA, as
such act may be amended from time to time.
"TRANSFER DATE" means, for any exchange of Rollover Term Loans for
Notes, the date on which such Rollover Term Loans are exchanged for Notes.
"TRANSITIONAL SERVICES AGREEMENT" the Transitional Services Agreement
entered into by the Company and AutoNation on the Spin-Off Date, as the same may
be amended, supplemented or otherwise modified in accordance with Section 4.14
herein.
"TREASURY RATE" means the yield to maturity at the time of computation
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
relevant redemption date (or, if such Statistical Release is no longer
published, any publicly available source of similar market data)) equal to the
period from the redemption date to the Final Maturity Date; PROVIDED, HOWEVER,
that if the period from the redemption date to the Final Maturity Date 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 the United States Treasury securities for the next shortest
and next longest maturities for which such yields are given.
"TRUSTEE" means the party named as such above until a successor
replaces it in accordance with the applicable provisions of this Indenture and
thereafter means the successor serving hereunder.
"UNRESTRICTED GLOBAL NOTE" means a permanent global Note substantially
in the form of Exhibit A attached hereto that bears the Global Note Legend and
that has the "Schedule of Exchanges of Interests in the Global Note" attached
thereto, and that is deposited with or on behalf of and registered in the name
of the Depositary, representing a series of Notes that do not bear the Private
Placement Legend.
"UNRESTRICTED DEFINITIVE NOTE" means one or more Definitive Notes that
do not bear and are not required to bear the Private Placement Legend.
"UNRESTRICTED SUBSIDIARY" means any Subsidiary that is designated by
the Board of Directors as an Unrestricted Subsidiary pursuant to a Board
Resolution; but only to the extent that such Subsidiary:
(i) has no Indebtedness other than Non-Recourse Debt;
(ii) is not party to any agreement, contract, arrangement or
understanding with the Company or any Restricted Subsidiary of the
Company (other than in connection with the
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pledge of the Equity Interests of an Unrestricted Subsidiary) unless
the terms of any such agreement, contract, arrangement or understanding
are no less favorable to the Company or such Restricted Subsidiary than
those that might be obtained at the time from Persons who are not
Affiliates of the Company;
(iii) is a Person with respect to which neither the Company
nor any of its Restricted Subsidiaries has any direct or indirect
obligation (x) to subscribe for additional Equity Interests or (y) to
maintain or preserve such Person's financial condition or to cause such
Person to achieve any specified levels of operating results;
(iv) has not guaranteed or otherwise directly or indirectly
provided credit support for any Indebtedness of the Company or any of
its Restricted Subsidiaries other than the Notes; and
(v) has at least one director on its board of directors that
is not a director or executive officer of the Company or any Restricted
Subsidiary and has at least one executive officer that is not a
director or executive officer of the Company or any of its Restricted
Subsidiaries;
PROVIDED that, the provisions set forth in clauses (iii) and (iv) of this
definition of "Unrestricted Subsidiary" shall not be applicable if any of the
foregoing are permitted by Section 4.7 hereof.
"U.S. PERSON" means a U.S. person as defined in Rule 902(k) under the
Securities Act.
"VOTING STOCK" of any Person as of any date, the Capital Stock of such
Person that is at the time entitled to vote in the election of the Board of
Directors of such Person.
"WEIGHTED AVERAGE LIFE TO MATURITY" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:
(i) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial
maturity or other required payments of principal, including payment at
final maturity, in respect thereof, by (b) the number of years
(calculated to the nearest one-twelfth) that will elapse between such
date and the making of such payment; by
(ii) the then outstanding principal amount of such
Indebtedness.
"WHOLLY OWNED SUBSIDIARY" means a Restricted Subsidiary, 100% of the
outstanding Capital Stock and other Equity Interests of which is directly or
indirectly owned by the Company or by one or more Wholly Owned Subsidiaries of
such Person other than director's qualifying shares or shares held by citizens
or nationals of a foreign jurisdiction pursuant to regulatory requirements.
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SECTION 1.2 OTHER DEFINITIONS.
Defined in
Term Section
---- ----------
"AFFILIATE TRANSACTION"...................................... 4.11
"ASSET SALE"................................................. 4.10
"ASSET SALE OFFER"........................................... 3.7
"AUTHENTICATION ORDER"....................................... 2.6
"CHANGE OF CONTROL OFFER".................................... 4.15
"CHANGE OF CONTROL PAYMENT".................................. 4.15
"CHANGE OF CONTROL PAYMENT DATE"............................. 4.15
"COVENANT DEFEASANCE"........................................ 8.3
"DETERMINATION DATE" 4.10
"EVENT OF DEFAULT"........................................... 6.1
"EXCESS PROCEEDS"............................................ 4.10
"EXCHANGE REQUEST"........................................... 2.1
"INCUR"...................................................... 4.9
"LEGAL DEFEASANCE"........................................... 8.2
"OFFER AMOUNT"............................................... 3.7
"OFFER PERIOD"............................................... 3.7
"PAYING AGENT"............................................... 2.7
"PAYMENT DEFAULT"............................................ 6.1
"PERMITTED DEBT"............................................. 4.9
"PURCHASE DATE".............................................. 3.7
"REDEEMED HOLDER"............................................ 3.3
"REGISTRAR".................................................. 2.7
"RESTRICTED PAYMENTS"........................................ 4.7
SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the 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:
"INDENTURE SECURITIES" means the Notes;
"INDENTURE SECURITY HOLDER" means a Holder of a Note;
"INDENTURE TO BE QUALIFIED" means this Indenture;
"INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Trustee; and
"OBLIGOR" on the Notes means the Company and any successor obligor upon
the Notes.
All other terms used in this Indenture that are defined by the TIA,
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defined by TIA reference to another statute or defined by SEC rule under the TIA
have the meanings so assigned to them.
SECTION 1.4 RULES OF CONSTRUCTION.
Unless the context otherwise requires:
(a) a term has the meaning assigned to it;
(b) an accounting term not otherwise defined when used in an accounting
context has the meaning assigned to it in accordance with GAAP;
(c) "or" is not exclusive;
(d) words in the singular include the plural, and in the plural include
the singular;
(e) provisions apply to successive events and transactions; and
(f) references to sections of or rules under the Securities Act shall
be deemed to include substitute, replacement of successor sections or rules
adopted by the SEC from time to time.
SECTION 1.5 EFFECTIVE DATE.
The provisions of this Indenture shall take effect upon the issuance of
any Notes in exchange for Rollover Term Loans pursuant to Section 2.3 of the
Senior Loan Agreement and shall have no effect until such issuance.
ARTICLE 2
THE NOTES
SECTION 2.1 OPTION TO EXCHANGE ROLLOVER TERM LOANS FOR NOTES.
(a) On any Business Day on or after the Conversion Date (if any),
subject to the prior written consent of the Administrative Agent, any Lender may
elect to exchange all or any portion of its Rollover Term Loans for Notes by
giving not less than ten Business Days' prior irrevocable written notice of such
election to the Company, the Escrow Agent, the Administrative Agent and the
Trustee specifying the principal amount of its promissory notes to be
transferred (which shall be integral multiples of $1,000), the name of the
proposed registered holder, the applicable Conversion Rate, all other terms of
the Note not specified in the form of Note and, subject to the terms of this
Indenture, the amount of each Note requested (each such notice, an "EXCHANGE
REQUEST"). Any such Lender shall deliver any promissory note evidencing the
Rollover Term Loans held by it to the Administrative Agent together with its
delivery of an Exchange Request. Loans exchanged for Notes pursuant to this
Section 2.1 shall be deemed repaid and canceled, and the Notes so issued shall
be governed by and construed in accordance with the provisions of this
Indenture.
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(b) Not later than the tenth Business Day after delivery of an Exchange
Request with respect to an exchange of all or any portion of a Rollover Term
Loan for one or more Notes to which the Administrative Agent has given its prior
written consent:
(i) the Administrative Agent shall deliver to the Escrow Agent
original promissory notes evidencing Rollover Term Loans (if any)
delivered to it by the Lender delivering the Exchange Request pursuant
to Section 2.1(a);
(ii) the Escrow Agent shall cancel each promissory note
evidencing Rollover Term Loans (if any) so delivered to it; and
(iii) the Escrow Agent shall deliver the applicable Note(s) to
the Trustee for authentication and delivery to the Holder or Holders
thereof specified in the Exchange Request.
SECTION 2.2 PRINCIPAL AMOUNT AND MATURITY.
(a) The principal amount of the Notes received by each Holder will
equal 100.0% of the aggregate principal amount of the Rollover Term Loans for
which they are exchanged pursuant to Section 2.1 hereof. If a Default (but not
an Event of Default) shall have occurred and be continuing on the date of such
exchange, any notices given or cure periods commenced while the Initial Loans or
Rollover Term Loans were outstanding shall be deemed given or commenced (as of
the actual dates thereof) for all purposes with respect to the Notes (with the
same effect as if the Notes had been outstanding as of the actual dates
thereof).
(b) All Notes will mature on the Final Maturity Date.
SECTION 2.3 INTEREST RATE AND PAYMENTS.
(a) (i) Accrued interest on the Rollover Term Loans exchanged for the
Notes shall be canceled, and the Notes received in such transfer shall bear
interest for the period from and including the most recent date to which
interest has been paid on the Rollover Term Loans for which such Notes were so
exchanged to, but excluding, the Final Maturity Date, at a fixed rate per annum
equal to the Conversion Rate then in effect (which Conversion Rate shall be
provided by the Company to the Trustee), subject to Section 2.3(a)(ii), on the
date of the applicable Exchange Request. The Conversion Rate shall be noted on
the form of the Note and notice thereof shall be given to the Holder, the
Company and the Trustee by the Holder who sold the Note.
(ii) Notwithstanding the foregoing clause (i), but subject to
Section 2.3(b), the interest rate borne by the Notes shall not exceed the lesser
of (a) 18% per annum subject to Section 2.3(b) and (b) the maximum interest rate
permitted by law. Subject to Section 2.3(b), to the extent the interest on the
Notes for any interest period exceeds a rate equal to 14% per annum (or 16% per
annum if the interest rate borne by such Notes is increased pursuant to Section
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2.3(b)), the Issuers may elect to capitalize such excess interest (or portion
thereof) as principal and thereby add such capitalized interest to the principal
amount of the Notes. Such interest capitalized as principal and thereby added to
the principal amount of the Notes shall be referred to as "PIK Interest Amount."
The Issuers may issue Subsequent Exchange Notes in an aggregate principal amount
equal to all or a portion of such PIK Interest Amount to be paid. Subsequent
Exchange Notes shall be in a form substantially similar to Exhibit A hereto and
shall bear interest and provide for redemption on the same terms as the Exchange
Notes with respect to which they were issued.
(b) If all or a portion of (i) the principal amount of any of the Notes
or (ii) any interest payable thereon shall not be paid when due (whether at the
stated maturity, by acceleration or otherwise, but taking into account any
applicable grace period under Section 6.1(a)), such overdue amount shall,
without limiting the rights of the Holders under Article 6, bear interest at a
rate per annum that is equal to the rate that would otherwise be applicable
thereto pursuant to the foregoing provisions of this Section 2.3 PLUS 2% per
annum from the date of such nonpayment until such amount is paid in full (as
well after as before judgment) and, notwithstanding anything herein to the
contrary, such additional 2% per annum shall be paid in cash.
(c) Interest shall be payable in arrears on each Interest Payment Date.
Payments made on the first Interest Payment Date after the Transfer Date with
respect to any Note shall include any interest accrued but not paid on the
Rollover Term Loans exchanged for such Note as set forth in Section 2.3(a)(i).
SECTION 2.4 TRANSFERABILITY; NOTICE OF INTENT TO TRANSFER.
Each Holder shall have an unconditional and absolute right to sell its
Notes subject to and in compliance with the provisions of this Indenture
(including any restrictions on transferability imposed by the Securities Act).
SECTION 2.5 FORM AND DATING.
(a) GENERAL. The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or usage
as well as the legends set forth herein. Each Note shall be dated the date of
its authentication. The Notes shall be in denominations of $1,000 and integral
multiples thereof.
The terms and provisions contained in the Notes shall constitute, and
are hereby expressly made, a part of this Indenture and the Company, and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby. However, to the extent any
provision of any Note conflicts with the express provisions of this Indenture,
the provisions of this Indenture shall govern and be controlling.
(b) GLOBAL NOTES. Notes issued in global form shall be substantially in
the form of Exhibit A attached hereto (including the Global Note Legend thereon
and the "Schedule of Exchanges of Interests in the Global Note" attached
thereto). Notes issued in definitive form
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shall be substantially in the form of Exhibit A attached hereto (but without the
Global Note Legend thereon and without the "Schedule of Exchanges of Interests
in the Global Note" attached thereto). Each Global Note shall represent such of
the outstanding Notes as shall be specified therein and each shall provide that
it shall represent the aggregate principal amount of outstanding Notes from time
to time endorsed thereon and that the aggregate principal amount of outstanding
Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global
Note to reflect the amount of any increase or decrease in the aggregate
principal amount of outstanding Notes represented thereby shall be made by the
Trustee or the Custodian, at the direction of the Trustee, in accordance with
instructions given by the Holder thereof as required by Section 2.10 hereof.
(c) TEMPORARY GLOBAL NOTES. Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of the Regulation S Temporary
Global Note, which shall be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee, at its New York office, as custodian for
the Depositary, and registered in the name of the Depositary or the nominee of
the Depositary for the accounts of designated agents holding on behalf of
Euroclear or Clearstream Bank, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The Restricted Period shall be terminated
upon the receipt by the Trustee of (i) a written certificate from the
Depositary, together with copies of certificates from Euroclear and Clearstream
Bank certifying that they have received certification of non-United States
beneficial ownership of 100% of the aggregate principal amount of the Regulation
S Temporary Global Note (except to the extent of any beneficial owners thereof
who acquired an interest therein during the Restricted Period pursuant to
another exemption from registration under the Securities Act and who will take
delivery of a beneficial ownership interest in a 144A Global Note or an IAI
Global Note bearing a Private Placement Legend, all as contemplated by Section
2.10(a)(ii) hereof), and (ii) an Officers' Certificate from the Company.
Following the termination of the Restricted Period, beneficial interests in the
Regulation S Temporary Global Note shall be exchanged for beneficial interests
in Regulation S Permanent Global Notes pursuant to the Applicable Procedures.
Simultaneously with the authentication of Regulation S Permanent Global Notes,
the Trustee shall cancel the Regulation S Temporary Global Note. The aggregate
principal amount of the Regulation S Temporary Global Note and the Regulation S
Permanent Global Notes may from time to time be increased or decreased by
adjustments made on the records of the Trustee and the Depositary or its
nominee, as the case may be, in connection with transfers of interest as
hereinafter provided.
(d) EUROCLEAR AND CLEARSTREAM PROCEDURES APPLICABLE. The provisions of
the "Operating Procedures of the Euroclear System" and "Terms and Conditions
Governing Use of Euroclear" and the "General Terms and Conditions of
Clearstream" and "Customer Handbook" of Clearstream shall be applicable to
transfers of beneficial interests in the Regulation S Temporary Global Note and
the Regulation S Permanent Global Notes that are held by Participants through
Euroclear or Clearstream.
SECTION 2.6 EXECUTION AND AUTHENTICATION.
Any Officer shall sign the Notes for the Company by manual or facsimile
signature. The
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Company seal may be reproduced on the Notes and may be in facsimile form. The
Notes shall be dated the date of their authentication.
If an Officer whose signature is on a Note no longer holds that office
at the time a Note is authenticated, the Note shall nevertheless be valid.
A Note shall not be valid until authenticated by the manual signature
of the Trustee. The signature shall be conclusive evidence that the Note has
been authenticated under this Indenture.
The Trustee shall, upon written orders of the Company signed, from time
to time, by any Officer (an "AUTHENTICATION ORDER"), authenticate Notes for
original issue (a) in the case of Exchange Notes, in an aggregate principal
amount equal to 100.0% of the aggregate principal amount of Rollover Term Loans
exchanged for such Exchange Notes as provided in Section 2.3 of the Senior Loan
Agreement, and (b) in the case of Subsequent Exchange Notes, in an aggregate
principal amount equal to the PIK Interest Amount that the Company has chosen to
pay in Subsequent Exchange Notes, with the interest rate, redemption features,
and other terms specified in such Authentication Order. The aggregate principal
amount of Notes outstanding at any time may not exceed such amount except as
provided in Section 2.11 hereof.
The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Notes. An authenticating agent may authenticate Notes
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 Holders or an
Affiliate of the Company.
SECTION 2.7 REGISTRAR AND PAYING AGENT.
The Company shall maintain an office or agency where Notes may be
presented for registration of transfer or for exchange ("REGISTRAR") and an
office or agency where Notes may be presented for payment ("PAYING AGENT"). The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Company may appoint one or more co-registrars and one or more additional
paying agents. The term "REGISTRAR" includes any co-registrar and the term
"PAYING AGENT" includes any additional paying agent. The Company may change any
Paying Agent or Registrar without notice to any Holder. The Company shall notify
the Trustee in writing of the name and address of any Agent not a party to this
Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of
its Subsidiaries may act as Paying Agent or Registrar.
The Company initially appoints The Depository Trust Company ("DTC") to
act as Depositary with respect to the Global Notes.
The Company initially appoints the Trustee to act as the Registrar and
Paying Agent and to act as Custodian with respect to the Global Notes.
SECTION 2.8 PAYING AGENT TO HOLD MONEY IN TRUST.
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The Company shall require each Paying Agent other than the Trustee to
agree in writing that the Paying Agent will hold in trust for the benefit of
Holders or the Trustee all money held by the Paying Agent for the payment of
principal, premium or Liquidated Damages, if any, or interest on the Notes, and
will notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee. The Company at any time may
require a Paying Agent to pay all money held by it to the Trustee. Upon payment
over to the Trustee, the Paying Agent shall have no further liability for the
money. If the Company or a Restricted Subsidiary acts as Paying Agent, it shall
segregate and hold in a separate trust fund for the benefit of the Holders all
money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee shall serve as Paying Agent for
the Notes.
SECTION 2.9 HOLDER LISTS.
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
all Holders and shall otherwise comply with TIA s 312(a). If the Trustee is not
the Registrar, the Registrar shall furnish to the Trustee at least seven
Business Days before each Interest Payment Date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders of
Notes and the Registrar shall otherwise comply with TIA s 312(a)
SECTION 2.10 TRANSFER AND EXCHANGE.
(A) TRANSFER AND EXCHANGE OF GLOBAL NOTES. A Global Note may not be
transferred as a whole except by the Depositary to a nominee of the Depositary,
by a nominee of the Depositary to the Depositary or to another nominee of the
Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes will be exchanged by
the Company for Definitive Notes if (i) the Company delivers to the Trustee
notice from the Depositary that it is unwilling or unable to continue to act as
Depositary or that it is no longer a clearing agency registered under the
Exchange Act and, in either case, a successor Depositary is not appointed by the
Company within 120 days after the date of such notice from the Depositary or
(ii) the Company in its sole discretion determines that the Global Notes (in
whole but not in part) should be exchanged for Definitive Notes and delivers a
written notice to such effect to the Trustee; provided that in no event shall
the Regulation S Temporary Global Note be exchanged by the Company for
Definitive Notes prior to (x) the expiration of the Restricted Period and (y)
the receipt by the Registrar of any certificates required pursuant to Rule
903(b)(3)(ii)(B) under the Securities Act. Upon the occurrence of either of the
preceding events in (i) or (ii) above, Definitive Notes shall be issued in such
names as the Depositary shall instruct the Trustee. Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.11 and
2.14 hereof. Every Note authenticated and delivered in exchange for, or in lieu
of, a Global Note or any portion thereof, pursuant to this Section 2.10 or
Section 2.11 or 2.14 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.10(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in
Section 2.10(b) or (c) hereof.
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(b) TRANSFER AND EXCHANGE OF BENEFICIAL INTERESTS IN THE GLOBAL NOTES.
The transfer and exchange of beneficial interests in the Global Notes shall be
effected through the Depositary, in accordance with the provisions of this
Indenture and the Applicable Procedures. Beneficial interests in the Restricted
Global Notes shall be subject to restrictions on transfer comparable to those
set forth herein to the extent required by the Securities Act. Transfers of
beneficial interests in the Global Notes also shall require compliance with
either subparagraph (i) or (ii) below, as applicable, as well as one or more of
the other following subparagraphs, as applicable:
(i) TRANSFER OF BENEFICIAL INTERESTS IN THE SAME GLOBAL NOTE.
Beneficial interests in any Restricted Global Note may be transferred
to Persons who take delivery thereof in the form of a beneficial
interest in the same Restricted Global Note in accordance with the
transfer restrictions set forth in the Private Placement Legend;
provided, however, that prior to the expiration of the Restricted
Period, transfers of beneficial interests in the Temporary Regulation S
Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person (other than the Arranger). Beneficial
interests in any Unrestricted Global Note may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers
described in this Section 2.10(b)(i).
(ii) OTHER TRANSFERS AND EXCHANGES OF BENEFICIAL INTERESTS IN
GLOBAL NOTES. In connection with all transfers and exchanges of
beneficial interests that are not subject to Section 2.10(b)(i) above,
the transferor of such beneficial interest must deliver to the
Registrar either (A) (1) a written order from a Participant or an
Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to credit or cause to be
credited a beneficial interest in another Global Note in an amount
equal to the beneficial interest to be transferred or exchanged and (2)
instructions given in accordance with the Applicable Procedures
containing information regarding the Participant account to be credited
with such increase or (B) (1) a written order from a Participant or an
Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to cause to be issued a
Definitive Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given by the Depositary
to the Registrar containing information regarding the Person in whose
name such Definitive Note shall be registered to effect the transfer or
exchange referred to in (1) above; PROVIDED that in no event shall
Definitive Notes be issued upon the transfer or exchange of beneficial
interests in the Regulation S Temporary Global Note prior to (x) the
expiration of the Restricted Period and (y) the receipt by the
Registrar of any certificates required pursuant to Rule 903 under the
Securities Act. Upon consummation of an Exchange Offer by the Company
in accordance with Section 2.10(f) hereof, the requirements of this
Section 2.10(b)(ii) shall be deemed to have been satisfied upon receipt
by the Registrar of the instructions contained in the Letter of
Transmittal delivered by the Holder of such beneficial interests in the
Restricted Global Notes. Upon satisfaction of all of the requirements
for transfer or exchange
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of beneficial interests in Global Notes contained in this Indenture and
the Notes or otherwise applicable under the Securities Act, the Trustee
shall adjust the principal amount of the relevant Global Note(s)
pursuant to Section 2.10(h) hereof.
(iii) TRANSFER OF BENEFICIAL INTERESTS TO ANOTHER RESTRICTED
GLOBAL NOTE. A beneficial interest in any Restricted Global Note may be
transferred to a Person who takes delivery thereof in the form of a
beneficial interest in another Restricted Global Note if the transfer
complies with the requirements of Section 2.10(b)(ii) above and the
Registrar receives the following:
(A) if the transferee will take delivery in the form
of a beneficial interest in the 144A Global Note, then the
transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications in item (1) thereof;
(B) if the transferee will take delivery in the form
of a beneficial interest in the Regulation S Temporary Global
Note or the Regulation S Global Note, then the transferor must
deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (2) thereof; and
(C) if the transferee will take delivery in the form
of a beneficial interest in the IAI Global Note, then the
transferor must deliver a certificate in the form of Exhibit B
hereto, including the certifications and certificates and
Opinion of Counsel required by item (3) thereof, if
applicable.
(iv) TRANSFER AND EXCHANGE OF BENEFICIAL INTERESTS IN A
RESTRICTED GLOBAL NOTE FOR BENEFICIAL INTERESTS IN THE UNRESTRICTED
GLOBAL NOTE. A beneficial interest in any Restricted Global Note may be
exchanged by any holder thereof for a beneficial interest in an
Unrestricted Global Note or transferred to a Person who takes delivery
thereof in the form of a beneficial interest in an Unrestricted Global
Note if the exchange or transfer complies with the requirements of
Section 2.10(b)(ii) above and:
(A) such exchange or transfer is effected pursuant to
the Exchange Offer in accordance with the Debt Registration
Rights Agreement and the holder of the beneficial interest to
be transferred, in the case of an exchange, or the transferee,
in the case of a transfer, certifies in the applicable Letter
of Transmittal that it is not (1) a broker-dealer, (2) a
Person participating in the distribution of the Exchange Notes
or (3) a Person who is an affiliate (as defined in Rule 144)
of the Company;
(B) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration
Rights Agreement; or
(C) such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in
accordance with the Debt Registration Rights Agreement; or
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(D) the Registrar receives the following:
(1) if the holder of such beneficial
interest in a Restricted Global Note
proposes to exchange such beneficial
interest for a beneficial interest in an
Unrestricted Global Note, a certificate from
such holder in the form of Exhibit C hereto,
including the certifications in item (1)(a)
thereof; or
(2) if the holder of such beneficial
interest in a Restricted Global Note
proposes to transfer such beneficial
interest to a Person who shall take delivery
thereof in the form of a beneficial interest
in an Unrestricted Global Note, a
certificate from such holder in the form of
Exhibit B hereto, including the
certifications in item (4) thereof;
and, in each such case set forth in this subparagraph
(D), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein
and in the Private Placement Legend are no longer
required in order to maintain compliance with the
Securities Act.
If any such transfer is effected pursuant to subparagraph (B) or (D)
above at a time when an Unrestricted Global Note has not yet been issued, the
Company shall issue and, upon receipt of an Authentication Order in accordance
with Section 2.6 hereof, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the aggregate principal
amount of beneficial interests transferred pursuant to subparagraph (B) or (D)
above.
Beneficial interests in an Unrestricted Global Note cannot be exchanged
for, or transferred to Persons who take delivery thereof in the form of, a
beneficial interest in a Restricted Global Note.
(c) TRANSFER OR EXCHANGE OF BENEFICIAL INTERESTS FOR DEFINITIVE NOTES.
(i) BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES TO
RESTRICTED DEFINITIVE NOTES. If any holder of a beneficial interest in
a Restricted Global Note proposes to exchange such beneficial interest
for a Restricted Definitive Note or to transfer such beneficial
interest to a Person who takes delivery thereof in the form of a
Restricted Definitive Note, then, upon receipt by the Registrar of the
following documentation:
(A) if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial
interest for a Restricted Definitive Note, a certificate from
such holder in the form of Exhibit C hereto, including the
certifications in item (2)(a) thereof;
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(B) if such beneficial interest is being transferred
to a QIB in accordance with Rule 144A under the Securities
Act, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (1) thereof;
(C) if such beneficial interest is being transferred
to a Non-U.S. Person in an offshore transaction in accordance
with Rule 903 or Rule 904 under the Securities Act, a
certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (2) thereof;
(D) if such beneficial interest is being transferred
pursuant to an exemption from the registration requirements of
the Securities Act in accordance with Rule 144 under the
Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(a)
thereof;
(E) if such beneficial interest is being transferred
to an Institutional Accredited Investor in reliance on an
exemption from the registration requirements of the Securities
Act other than those listed in subparagraphs (B) through (D)
above, a certificate to the effect set forth in Exhibit B
hereto, including the certifications, certificates and Opinion
of Counsel required by item (3) thereof, if applicable;
(F) if such beneficial interest is being transferred
to the Company or any of its Subsidiaries, a certificate to
the effect set forth in Exhibit B hereto, including the
certifications in item (3)(b) thereof; or
(G) if such beneficial interest is being transferred
pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(c)
thereof,
the Trustee shall cause the aggregate principal amount of the
applicable Global Note to be reduced accordingly pursuant to Section
2.10(g) hereof, and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive
Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.10(c) shall be registered in
such name or names and in such authorized denomination or denominations
as the holder of such beneficial interest shall instruct the Registrar
through instructions from the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes
to the Persons in whose names such Notes are so registered. Any
Definitive Note issued in exchange for a beneficial interest in a
Restricted Global Note pursuant to this Section 2.10(c)(i) shall bear
the Private Placement Legend and shall be subject to all restrictions
on transfer contained therein.
(ii) BENEFICIAL INTERESTS IN REGULATION S TEMPORARY GLOBAL
NOTE TO DEFINITIVE NOTES. Notwithstanding Sections 2.10(c)(i)(A) and
(C) hereof, a beneficial interest in the Regulation S Temporary Global
Note may not be exchanged for a Definitive Note or transferred to a
Person who takes delivery thereof in the form of a Definitive Note
prior
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to (x) the expiration of the Restricted Period and (y) the receipt by
the Registrar of any certificates required pursuant to Rule
903(b)(3)(ii)(B) under the Securities Act, except in the case of a
transfer pursuant to an exemption from the registration requirements of
the Securities Act other than Rule 903 or Rule 904.
(iii) BENEFICIAL INTERESTS IN RESTRICTED GLOBAL NOTES TO
UNRESTRICTED DEFINITIVE NOTES. A holder of a beneficial interest in a
Restricted Global Note may exchange such beneficial interest for an
Unrestricted Definitive Note or may transfer such beneficial interest
to a Person who takes delivery thereof in the form of an Unrestricted
Definitive Note only if:
(A) such exchange or transfer is effected pursuant to
the Exchange Offer in accordance with the Debt Registration
Rights Agreement and the holder of such beneficial interest,
in the case of an exchange, or the transferee, in the case of
a transfer, certifies in the applicable Letter of Transmittal
that it is not (1) a broker-dealer, (2) a Person participating
in the distribution of the Exchange Notes or (3) a Person who
is an affiliate (as defined in Rule 144) of the Company;
(B) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Debt
Registration Rights Agreement;
(C) such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in
accordance with the Debt Registration Rights Agreement; or
(D) the Registrar receives the following:
(1) if the holder of such beneficial
interest in a Restricted Global Note
proposes to exchange such beneficial
interest for a Definitive Note that does not
bear the Private Placement Legend, a
certificate from such holder in the form of
Exhibit C hereto, including the
certifications in item (1)(b) thereof; or
(2) if the holder of such beneficial
interest in a Restricted Global Note
proposes to transfer such beneficial
interest to a Person who shall take delivery
thereof in the form of a Definitive Note
that does not bear the Private Placement
Legend, a certificate from such holder in
the form of Exhibit B hereto, including the
certifications in item (4) thereof;
and, in each such case set forth in this subparagraph
(D), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein
and in the Private Placement Legend are no longer
required in order to maintain compliance with the
Securities Act.
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(iv) BENEFICIAL INTERESTS IN UNRESTRICTED GLOBAL NOTES TO
UNRESTRICTED DEFINITIVE NOTES. If any holder of a beneficial interest
in an Unrestricted Global Note proposes to exchange such beneficial
interest for a Definitive Note or to transfer such beneficial interest
to a Person who takes delivery thereof in the form of a Definitive
Note, then, upon satisfaction of the conditions set forth in Section
2.10(b)(ii) hereof, the Trustee shall cause the aggregate principal
amount of the applicable Global Note to be reduced accordingly pursuant
to Section 2.10(g) hereof, and the Company shall execute and the
Trustee shall authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any
Definitive Note issued in exchange for a beneficial interest pursuant
to this Section 2.10(c)(iv) shall be registered in such name or names
and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Registrar through
instructions from the Depositary and the Participant or Indirect
Participant. The Trustee shall deliver such Definitive Notes to the
Persons in whose names such Notes are so registered. Any Definitive
Note issued in exchange for a beneficial interest pursuant to this
Section 2.10(c)(iv) shall not bear the Private Placement Legend.
(d) TRANSFER AND EXCHANGE OF DEFINITIVE NOTES FOR BENEFICIAL INTERESTS.
(i) RESTRICTED DEFINITIVE NOTES TO BENEFICIAL INTERESTS IN
RESTRICTED GLOBAL NOTES. If any Holder of a Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a
Restricted Global Note or to transfer such Restricted Definitive Notes
to a Person who takes delivery thereof in the form of a beneficial
interest in a Restricted Global Note, then, upon receipt by the
Registrar of the following documentation:
(A) if the Holder of such Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a
Restricted Global Note, a certificate from such Holder in the
form of Exhibit C hereto, including the certifications in item
(2)(b) thereof;
(B) if such Restricted Definitive Note is being
transferred to a QIB in accordance with Rule 144A under the
Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (1)
thereof;
(C) if such Restricted Definitive Note is being
transferred to a Non-U.S. Person in an offshore transaction in
accordance with Rule 903 or Rule 904 under the Securities Act,
a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (2) thereof;
(D) if such Restricted Definitive Note is being
transferred pursuant to an exemption from the registration
requirements of the Securities Act in accordance with Rule 144
under the Securities Act, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in
item (3)(a) thereof;
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(E) if such Restricted Definitive Note is being
transferred to an Institutional Accredited Investor in
reliance on an exemption from the registration requirements of
the Securities Act other than those listed in subparagraphs
(B) through (D) above, a certificate to the effect set forth
in Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3)
thereof, if applicable;
(F) if such Restricted Definitive Note is being
transferred to the Company or any of its Subsidiaries, a
certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(b) thereof; or
(G) if such Restricted Definitive Note is being
transferred pursuant to an effective registration statement
under the Securities Act, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in
item (3)(c) thereof,
the Trustee shall cancel the Restricted Definitive Note, increase or
cause to be increased the aggregate principal amount of, in the case of
clause (A) above, the appropriate Restricted Global Note, in the case
of clause (B) above, the 144A Global Note, in the case of clause (C)
above, the Regulation S Global Note, and in all other cases, the IAI
Global Note.
(ii) RESTRICTED DEFINITIVE NOTES TO BENEFICIAL INTERESTS IN
UNRESTRICTED GLOBAL NOTES. A Holder of a Restricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global
Note or transfer such Restricted Definitive Note to a Person who takes
delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note only if:
(A) such exchange or transfer is effected pursuant
to the Exchange Offer in accordance with the Debt Registration
Rights Agreement and the Holder, in the case of an exchange,
or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution
of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of the Company;
(B) such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration
Rights Agreement;
(C) such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in
accordance with the Debt Registration Rights Agreement; or
(D) the Registrar receives the following:
(1) if the Holder of such Definitive Notes
proposes to exchange such Notes for a beneficial
interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C
hereto, including the certifications in item (1)(c)
thereof; or
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(2) if the Holder of such Definitive Notes
proposes to transfer such Notes to a Person who shall
take delivery thereof in the form of a beneficial
interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit B
hereto, including the certifications in item (4)
thereof;
and, in each such case set forth in this subparagraph
(D), if the Registrar so requests or if the
Applicable Procedures so require, an Opinion of
Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and
that the restrictions on transfer contained herein
and in the Private Placement Legend are no longer
required in order to maintain compliance with the
Securities Act.
Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.10(d)(ii), the Trustee shall cancel the
Definitive Notes and increase or cause to be increased the aggregate
principal amount of the Unrestricted Global Note.
(iii) UNRESTRICTED DEFINITIVE NOTES TO BENEFICIAL INTERESTS IN
UNRESTRICTED GLOBAL NOTES. A Holder of an Unrestricted Definitive Note
may exchange such Note for a beneficial interest in an Unrestricted
Global Note or transfer such Definitive Notes to a Person who takes
delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note at any time. Upon receipt of a request for
such an exchange or transfer, the Trustee shall cancel the applicable
Unrestricted Definitive Note and increase or cause to be increased the
aggregate principal amount of one of the Unrestricted Global Notes.
If any such exchange or transfer from a Definitive Note to a beneficial
interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above
at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with
Section 2.6 hereof, the Trustee shall authenticate one or more Unrestricted
Global Notes in an aggregate principal amount equal to the principal amount of
Definitive Notes so transferred.
(e) TRANSFER AND EXCHANGE OF DEFINITIVE NOTES FOR DEFINITIVE NOTES.
Upon request by a Holder of Definitive Notes and such Holder's compliance with
the provisions of this Section 2.10(e), the Registrar shall register the
transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar
the Definitive Notes duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by such Holder or
by its attorney, duly authorized in writing. In addition, the requesting Holder
shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section
2.10(e).
(i) RESTRICTED DEFINITIVE NOTES TO RESTRICTED DEFINITIVE
NOTES. Any Restricted
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Definitive Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted
Definitive Note if the Registrar receives the following:
(A) if the transfer will be made pursuant to Rule
144A under the Securities Act, then the transferor must
deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof;
(B) if the transfer will be made pursuant to Rule 903
or Rule 904, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications in
item (2) thereof; and
(C) if the transfer will be made pursuant to any
other exemption from the registration requirements of the
Securities Act, then the transferor must deliver a certificate
in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3)
thereof, if applicable.
(ii) RESTRICTED DEFINITIVE NOTES TO UNRESTRICTED DEFINITIVE
NOTES. Any Restricted Definitive Note may be exchanged by the Holder
thereof for an Unrestricted Definitive Note or transferred to a Person
or Persons who take delivery thereof in the form of an Unrestricted
Definitive Note if:
(A) such exchange or transfer is effected pursuant to
the Exchange Offer in accordance with the Debt Registration
Rights Agreement and the Holder, in the case of an exchange,
or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution
of the Exchange Notes or (3) a Person who is an affiliate (as
defined in Rule 144) of the Company;
(B) any such transfer is effected pursuant to the
Shelf Registration Statement in accordance with the
Registration Rights Agreement;
(C) any such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in
accordance with the Debt Registration Rights Agreement; or
(D) the Registrar receives the following:
(1) if the Holder of such Restricted
Definitive Notes proposes to exchange such Notes for
an Unrestricted Definitive Note, a certificate from
such Holder in the form of Exhibit C hereto,
including the certifications in item (1)(d) thereof;
or
(2) if the Holder of such Restricted
Definitive Notes proposes to transfer such Notes to a
Person who shall take delivery thereof in the form of
an Unrestricted Definitive Note, a certificate from
such Holder in the form of Exhibit B hereto,
including the certifications in item (4) thereof;
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and, in each such case set forth in this subparagraph (D), if
the Registrar so requests, an Opinion of Counsel in form
reasonably acceptable to the Company to the effect that such
exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in
the Private Placement Legend are no longer required in order
to maintain compliance with the Securities Act.
(iii) UNRESTRICTED DEFINITIVE NOTES TO UNRESTRICTED DEFINITIVE
NOTES. A Holder of Unrestricted Definitive Notes may transfer such
Notes to a Person who takes delivery thereof in the form of an
Unrestricted Definitive Note. Upon receipt of a request to register
such a transfer, the Registrar shall register the Unrestricted
Definitive Notes pursuant to the instructions from the Holder thereof.
(f) EXCHANGE OFFER. Upon the occurrence of the Exchange Offer in
accordance with the Debt Registration Rights Agreement, the Company shall issue
and, upon receipt of an Authentication Order in accordance with Section 2.6, the
Trustee shall authenticate (i) one or more Unrestricted Global Notes in an
aggregate principal amount equal to the principal amount of the beneficial
interests in the Restricted Global Notes 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 Exchange Offer and (ii) Definitive Notes in an
aggregate principal amount equal to the principal amount of the Restricted
Definitive Notes accepted for exchange in the Exchange Offer. Concurrently with
the issuance of such Notes, the Trustee shall cause the aggregate principal
amount of the applicable Restricted Global Notes to be reduced accordingly, and
the Company shall execute and the Trustee shall authenticate and deliver to the
Persons designated by the Holders of Definitive Notes so accepted Definitive
Notes in the appropriate principal amount.
(g) LEGENDS. The following legends shall appear on the face of all
Global Notes and Definitive Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.
(i) Private Placement Legend.
(A) Except as permitted by subparagraph (B) below,
each Global Note and each Definitive Note (and all Notes
issued in exchange therefor or substitution thereof) shall
bear the legend in substantially the following form.
"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
HOLDER (1) REPRESENTS THAT (A) IT IS A
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"QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE 144A UNDER THE SECURITIES
ACT) (A "QIB"), (B) IT IS NOT A U.S. PERSON, IS NOT ACQUIRING THIS NOTE FOR THE
ACCOUNT OR BENEFIT OF A U.S. PERSON AND IS ACQUIRING THIS NOTE IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT
IS AN INSTITUTIONAL AACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1), (2),
(3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) (AN "IAI"), (2) AGREES THAT
IT WILL NOT, WITHIN THE TIME PERIOD REFERRED TO UNDER RULE 144(k) (TAKING INTO
ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE SECURITIES ACT, IF APPLICABLE)
UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE OF THE TRANSFER OF THIS NOTE,
RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A) TO THE COMPANY OR ANY
SUBSIDIARY THEREOF, (B) TO A PERSON WHOM THE HOLDER REASONABLY BELIEVES IS A QIB
PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE
TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE SECURITIES ACT, (D) PURSUANT
TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT
(IF AVAILABLE), (E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE
TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
RELATING TO THE REGISTRATION OF TRANSFER OF THIS NOTE (THE FORM OF WHICH LETTER
CAN BE OBTAINED FROM THE TRUSTEE) OR (F) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS, AND (3) AGREES THAT IT WILL DELIVER TO EACH
PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS TRANSFERRED A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS USED HEREIN, THE TERMS AOFFSHORE
TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE MEANINGS GIVEN TO THEM
BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A
PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE
IN VIOLATION OF THE FOREGOING RESTRICTIONS."
(B) Notwithstanding the foregoing, any Global Note or
Definitive Note issued pursuant to subparagraphs (b)(iv),
(c)(iii), (c)(iv), (d)(ii), (d)(iii), (e)(ii) or (e)(iii) to
this Section 2.10 (and all Notes issued in exchange therefor
or substitution thereof) shall not bear the Private Placement
Legend.
(ii) GLOBAL NOTE LEGEND. Each Global Note shall bear a legend
in substantially the following form:
"THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION
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2.7 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.10(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY."
(iii) REGULATION S TEMPORARY GLOBAL NOTE LEGEND. The
Regulation S Temporary Global Note shall bear a legend in substantially
the following form:
"THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS
SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON."
(h) CANCELLATION AND/OR ADJUSTMENT OF GLOBAL NOTES. At such time as all
beneficial interests in a particular Global Note have been exchanged for
Definitive Notes or a particular Global Note has been redeemed, repurchased or
canceled in whole and not in part, each such Global Note shall be returned to or
retained and canceled by the Trustee in accordance with Section 2.15 hereof. At
any time prior to such cancellation, if any beneficial interest in a Global Note
is exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Note or for Definitive
Notes, the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global Note 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 Note, such other Global Note shall be increased accordingly
and an endorsement shall be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.
(i) GENERAL PROVISIONS RELATING TO TRANSFERS AND EXCHANGES.
(i) To permit registrations of transfers and exchanges, the
Company shall execute and the Trustee shall authenticate Global Notes
and Definitive Notes upon the Company order or at the Registrar's
request.
(ii) No service charge shall be made to a holder of a
beneficial interest in a Global Note or to a Holder of a Definitive
Note 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 (other than
any such transfer taxes or similar governmental charge payable upon
exchange or transfer pursuant to Sections 2.14, 3.6, 3.7, 4.9, 4.14 and
9.5 hereof).
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(iii) The Registrar shall not be required to register the
transfer of or exchange any Note selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part.
(iv) All Global Notes and Definitive Notes issued upon any
registration of transfer or exchange of Global Notes or Definitive
Notes shall be the valid obligations of the Company, evidencing the
same debt, and entitled to the same benefits under this Indenture, as
the Global Notes or Definitive Notes surrendered upon such registration
of transfer or exchange.
(v) The Company shall not be required (A) to issue, to
register the transfer of or to exchange any Notes during a period
beginning at the opening of business 15 days before the day of any
selection of Notes for redemption under Section 3.3 hereof and ending
at the close of business on the day of selection, (B) to register the
transfer of or to exchange any Note so selected for redemption in whole
or in part, except the unredeemed portion of any Note being redeemed in
part or (C) to register the transfer of or to exchange a Note between a
record date and the next succeeding Interest Payment Date.
(vi) Prior to due presentment for the registration of a
transfer of any Note, the Trustee, any Agent and the Company may deem
and treat the Person in whose name any Note is registered as the
absolute owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other purposes, and
none of the Trustee, any Agent or the Company shall be affected by
notice to the contrary.
(vii) The Trustee shall authenticate Global Notes and
Definitive Notes in accordance with the provisions of Section 2.6
hereof.
(viii) All certifications, certificates and Opinions of
Counsel required to be submitted to the Registrar pursuant to this
Section 2.10 to effect a registration of transfer or exchange may be
submitted by facsimile.
(ix) 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 Depositary 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.
SECTION 2.11 REPLACEMENT NOTES.
If (a) any mutilated Note is surrendered to the Trustee or the Company
or (b) the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Note, the Company shall issue and the Trustee,
upon receipt of an Authentication Order, shall authenticate a replacement Note
if the Trustee's requirements are met. If required by the Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in
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the judgment of the Trustee and the Company to protect the Company, the Trustee,
any Agent and any authenticating agent from any loss that any of them may suffer
if a Note is replaced. The Company may charge for its expenses in replacing a
Note.
Every replacement Note is an additional obligation of the Company and
shall be entitled to all of the benefits of this Indenture equally and
proportionately with all other Notes duly issued hereunder.
SECTION 2.12 OUTSTANDING NOTES.
The Notes outstanding at any time are all the Notes authenticated by
the Trustee after an Exchange Request is given, except for those canceled by it,
those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof,
and those described in this Section 2.12 as not outstanding. Except as set forth
in Section 2.13 hereof, a Note does not cease to be outstanding because the
Company or an Affiliate of the Company holds the Note.
If a Note is replaced pursuant to Section 2.11 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser.
If the principal amount of any Note is considered paid under Section
4.1 hereof, it ceases to be outstanding and interest on it ceases to accrue.
If the Paying Agent (other than the Company, a Subsidiary or an
Affiliate of any thereof) holds, on a redemption date or maturity date, money
sufficient to pay Notes payable on that date, then on and after that date such
Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest.
SECTION 2.13 TREASURY NOTES.
In determining whether the Holders of the required principal amount of
Notes have concurred in any direction, waiver or consent, Notes owned by the
Company, or by any Person directly or indirectly controlling or controlled by or
under direct or indirect common control with the Company (including for the
purposes of Section 9.2), shall be considered as though not outstanding, except
that for the purposes of determining whether the Trustee shall be protected in
relying on any such direction, waiver or consent, only Notes that the Trustee
knows are so owned shall be so disregarded.
SECTION 2.14 TEMPORARY NOTES.
Until certificates representing Notes are ready for delivery, the
Company may prepare and the Trustee, upon receipt of an Authentication Order,
shall authenticate temporary Notes. Temporary Notes shall be substantially in
the form of certificated Notes but may have variations that the Company
considers appropriate for temporary Notes and as shall be reasonably acceptable
to the Trustee. Without unreasonable delay, the Company shall prepare and the
Trustee shall authenticate definitive Notes in exchange for temporary Notes.
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Holders of temporary Notes shall be entitled to all of the benefits of
this Indenture.
SECTION 2.15 CANCELLATION.
The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and Paying Agent shall forward to the Trustee any
Notes surrendered to them for registration of transfer, exchange or payment. The
Trustee and no one else shall cancel all Notes surrendered for registration of
transfer, exchange, payment, replacement or cancellation and shall return such
canceled Notes to the Company. The Trustee shall provide the Company with a list
of all Notes that have been canceled from time to time as requested by the
Company. The Company may not issue new Notes to replace Notes that they it has
paid or that have been delivered to the Trustee for cancellation.
SECTION 2.16 DEFAULTED INTEREST.
If the Company defaults in a payment of interest on the Notes, it shall
pay the defaulted interest described in Section 2.3(b) plus, to the extent
lawful, interest payable on the defaulted interest, to the Persons who are
Holders on a subsequent special record date, in each case at the rate provided
in the Notes and in Section 4.1 hereof. The Company shall notify the Trustee in
writing of the amount of defaulted interest proposed to be paid on each Note and
the date of the proposed payment. The Company shall fix or cause to be fixed
each such special record date and payment date, PROVIDED that no such special
record date shall be less than 10 days prior to the related payment date for
such defaulted interest. At least 15 days before the special record date, the
Company (or, upon the written request of the Company, the Trustee in the name
and at the expense of the Company) shall mail or cause to be mailed to Holders a
notice that states the special record date, the related payment date and the
amount of such interest to be paid.
SECTION 2.17 CUSIP NUMBERS.
The Company in issuing the Notes may use "CUSIP" numbers (if then
generally in use) for each series of Notes and, if so, the Trustee shall use
"CUSIP" numbers in notices of redemption as a convenience to Holders; PROVIDED,
HOWEVER, that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such redemption shall not
be affected by any defect in or omission of such numbers. The Company shall
promptly notify the Trustee of any change in the "CUSIP" numbers.
ARTICLE 3
REDEMPTION AND PREPAYMENT
SECTION 3.1 REDEMPTION.
The Company may redeem the Notes of any series, in whole at any time or
in part from
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time to time on the basis provided for in Section 3.3 herein for the greater of
(i) their principal amount or (ii) their principal amount plus the Redemption
Premium for each series plus accrued and unpaid interest to the redemption date.
SECTION 3.2 NOTICES TO TRUSTEE.
If the Company elects to redeem Notes pursuant to Section 3.1 hereof,
it shall furnish to the Trustee, at least 30 days but not more than 60 days
before a redemption date, an Officers' Certificate setting forth (i) the clause
of this Indenture pursuant to which the redemption shall occur, (ii) the
redemption date, (iii) the principal amount of Notes of each series to be
redeemed and (iv) the redemption price for each series of Notes to be redeemed.
SECTION 3.3 NOTICE OF REDEMPTION.
Subject to the provisions of Section 3.9 hereof, at least 30 days but
not more than 60 days before a redemption date, the Company shall mail or cause
to be mailed, by first class mail, a notice of redemption to each Holder whose
Notes are to be redeemed at its registered address.
The notice shall identify the Notes (including CUSIP Numbers) to be
redeemed and shall state:
(a) the redemption date;
(b) the redemption price for the series of Notes to be redeemed;
(c) if any Note is being redeemed in part, the portion of the principal
amount of such Note to be redeemed and that, after the redemption date upon
surrender of such Note, a new Note or Notes in principal amount equal to the
unredeemed portion shall be issued upon cancellation of the original Note;
(d) the name and address of the Paying Agent;
(e) that Notes called for redemption must be surrendered to the Paying
Agent to collect the redemption price;
(f) that, unless the Company defaults in making such redemption
payment, interest on Notes called for redemption ceases to accrue on and after
the redemption date;
(g) the paragraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being redeemed; and
(h) that no representation is made as to the correctness or accuracy of
the CUSIP number, if any, listed in such notice or printed on the Notes.
At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at its expense; PROVIDED, HOWEVER, that the
Company shall have delivered to the Trustee, at least 45 days prior to the
redemption date, an Officers' Certificate
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requesting that the Trustee give such notice and setting forth the information
to be stated in such notice as provided in the preceding paragraph.
SECTION 3.4 SELECTION OF NOTES TO BE REDEEMED; PROCEDURE FOR OPTIONAL
REDEMPTION.
If less than all of the Notes of any series are to be redeemed or
purchased in an offer to purchase at any time, the Trustee shall select the
Notes to be redeemed or purchased among the Holders of the Notes of such series
in compliance with the requirements of the principal national securities
exchange, if any, on which the Notes are listed or, if the Notes are not so
listed, on a PRO RATA basis, by lot or in accordance with any other method the
Trustee considers fair and appropriate. In the event of partial redemption by
lot, the particular Notes of the series to be redeemed shall be selected, unless
otherwise provided herein, not less than 30 nor more than 60 days prior to the
redemption date by the Trustee from the outstanding Notes of such series not
previously called for redemption.
The Trustee shall promptly notify the Company in writing of the Notes
selected for redemption and, in the case of any Note selected for partial
redemption, the principal amount thereof to be redeemed. Notes and portions of
Notes selected shall be in amounts of $1,000 or whole multiples of $1,000;
except that if all of the Notes of a Holder are to be redeemed, the entire
outstanding amount of Notes held by such Holder, even if not a multiple of
$1,000, shall be redeemed. Except as provided in the preceding sentence,
provisions of this Indenture that apply to Notes called for redemption also
apply to portions of Notes called for redemption.
SECTION 3.5 EFFECT OF NOTICE OF REDEMPTION.
Once notice of an offer of redemption has been mailed by the Agent
under Section 3.4, Notes of Redeemed Holders that are to be redeemed in
accordance with such notice and the terms of this Article 3 shall become
irrevocably due and payable on the redemption date (except in the case of
non-redeemable Notes, which are subject to the requirements of Section 3.4).
Such notice if mailed in the manner herein provided shall be conclusively
presumed to have been given, whether or not the Holder receives such notice.
Upon surrender to the Paying Agent, such Notes shall be paid under the terms
stated in Section 3.4; PROVIDED that if the redemption date is after a record
date for the payment of interest and on or prior to the related Interest Payment
Date, the accrued interest shall be payable to the Holder of the redeemed Notes
registered on the relevant record date.
SECTION 3.6 DEPOSIT OF REDEMPTION PRICE.
Prior to 10:00 a.m. (New York City time) on the redemption date, the
Company shall deposit with the Trustee or with the Paying Agent (or, if the
Company or a Subsidiary is the Paying Agent, shall segregate and hold in trust)
money sufficient to pay the redemption price of and (except if the redemption
date shall be an interest payment date) accrued interest on all Notes to be
redeemed on that date other than Notes or portions of Notes called for
redemption which have been delivered by the Company to the Trustee for
cancellation. The Trustee or Paying Agent shall promptly return to the Company
any money deposited with the Trustee or the Paying Agent by the Company in
excess of the amounts necessary to pay the redemption price of, and accrued
interest on, all Notes to be redeemed.
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SECTION 3.7 NOTES REDEEMED IN PART.
Upon surrender of a Note that is redeemed in part, the Company shall
execute and the Trustee shall authenticate for the Holder (at the Company's
expense) a new Note equal in principal amount to the unredeemed portion of the
Note surrendered.
SECTION 3.8 OFFER TO PURCHASE BY APPLICATION OF EXCESS PROCEEDS.
In the event that, pursuant to Section 4.10 hereof, the Company shall
be required to commence an offer to all Holders to purchase Notes (an "ASSET
SALE OFFER"), it shall follow the procedures specified below.
The Asset Sale Offer shall remain open for a period of 20 Business Days
following its commencement and no longer, except to the extent that a longer
period is required by applicable law (the "OFFER PERIOD"). No later than five
Business Days after the termination of the Offer Period (the "PURCHASE DATE"),
the Company shall purchase the principal amount of Notes required to be
purchased pursuant to Section 4.10 hereof (the "OFFER AMOUNT") or, if less than
the Offer Amount has been tendered, all Notes tendered in response to the Asset
Sale Offer. Payment for any Notes so purchased shall be made in the same manner
as interest payments are made.
If the Purchase Date is on or after an interest record date and on or
before the related Interest Payment Date, any accrued and unpaid interest shall
be paid to the Person in whose name a Note is registered at the close of
business on such record date, and no additional interest shall be payable to
Holders who tender Notes pursuant to the Asset Sale Offer.
Upon the commencement of an Asset Sale Offer, the Company shall send,
by first class mail, a notice to the Trustee and each of the Holders, with a
copy to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Notes pursuant to the Asset Sale
Offer. The Asset Sale Offer shall be made to all Holders. The notice, which
shall govern the terms of the Asset Sale Offer, shall state:
(a) that the Asset Sale Offer is being made pursuant to this Section
3.8 and Section 4.10 hereof and the length of time the Asset Sale Offer shall
remain open;
(b) the Offer Amount, the purchase price and the Purchase Date;
(c) that any Note not tendered or accepted for payment shall continue
to accrete or accrue interest;
(d) that, unless the Company defaults in making such payment, any Note
accepted for payment pursuant to the Asset Sale Offer shall cease to accrete or
accrue interest after the Purchase Date;
(e) that Holders electing to have a Note purchased pursuant to an Asset
Sale Offer may elect to have Notes purchased in integral multiples of $1,000
only;
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(f) that Holders electing to have a Note purchased pursuant to any
Asset Sale Offer shall be required to surrender the Note, with the form entitled
AOption of Holder to Elect Purchase" on the reverse of the Note completed, or
transfer by book-entry transfer, to the Company, a depositary, if appointed by
the Company, or a Paying Agent at the address specified in the notice at least
three days before the Purchase Date;
(g) that Holders shall be entitled to withdraw their election if the
Company, the Depositary or the Paying Agent, as the case may be, receives, not
later than the expiration of the Offer Period, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the principal
amount of the Note the Holder delivered for purchase and a statement that such
Holder is withdrawing his election to have such Note purchased;
(h) that, if the aggregate principal amount of Notes surrendered by
Holders exceeds the Offer Amount, the Company shall select the Notes to be
purchased on a PRO RATA basis with the Rollover Term Loans (with such
adjustments as may be deemed appropriate by the Company so that only Notes in
denominations of $1,000, or integral multiples thereof, shall be purchased); and
(i) that Holders whose Notes were purchased only in part shall be
issued new Notes equal in principal amount to the unpurchased portion of the
Notes surrendered (or transferred by book-entry transfer).
On or before the Purchase Date, the Company shall, to the extent
lawful, accept for payment, on a PRO RATA basis with the Rollover Term Loans to
the extent necessary, the Offer Amount of Notes or portions thereof tendered
pursuant to the Asset Sale Offer, or if less than the Offer Amount has been
tendered, all Notes tendered, and shall deliver to the Trustee an Officers'
Certificate stating that such Notes or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.8. The
Company, the Depositary or the Paying Agent, as the case may be, shall promptly
(but in any case not later than five days after the Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase price of the
Notes tendered by such Holder and accepted by the Company for purchase, and the
Company shall promptly issue a new Note, and the Trustee, upon written request
from the Company shall authenticate and mail or deliver such new Note to such
Holder, in a principal amount equal to any unpurchased portion of the Note
surrendered. Any Note not so accepted shall be promptly mailed or delivered by
the Company to the Holder thereof. The Company shall publicly announce the
results of the Asset Sale Offer on the Purchase Date.
Other than as specifically provided in this Section 3.8, any purchase
pursuant to this Section 3.8 shall be made pursuant to the provisions of
Sections 3.1 through 3.7 hereof.
ARTICLE 4
COVENANTS
The Company hereby agrees that the Company shall comply with the
provisions of this
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Section 4 (PROVIDED that nothing contained herein shall limit the ability of the
Company and its Subsidiaries to enter into and consummate the transactions that
are set forth in or expressly permitted by the Spin-Off Documents):
SECTION 4.1 PAYMENT OF NOTES.
The Company shall pay or cause to be paid the principal of, premium, if
any, and interest and Liquidated Damages, if any, on the Notes on the dates and
in the manner provided in the Notes. Principal, premium, if any, and interest
and Liquidated Damages, if any, shall be considered paid on the date due if the
Paying Agent, if other than the Company or a Subsidiary thereof, holds as of
10:00 a.m. Eastern Time on the due date money deposited by the Company in
immediately available funds and designated for and sufficient to pay all
principal, premium, if any, and interest and Liquidated Damages, if any, then
due. The Company shall pay all Liquidated Damages, if any, in the same manner on
the dates and in the amounts set forth in the Registration Rights Agreement.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate specified
in Article 2 hereof and it shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest
and Liquidated Damages (without regard to any applicable grace period) at the
same rate to the extent lawful.
SECTION 4.2 MAINTENANCE OF OFFICE OR AGENCY.
The Company shall maintain in the Borough of Manhattan, The City of New
York, an office or agency (which may be an office of the Trustee or an affiliate
of the Trustee, Registrar or co-registrar) where Notes may be surrendered for
registration of transfer or for exchange and where notices and demands to or
upon the Company in respect of the Notes and this Indenture may be served. 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 Corporate Trust Office of the
Trustee.
The Company may also from time to time designate one or more other
offices or agencies where the Notes 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 an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company shall give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency.
The Company hereby designates the Corporate Trust Office of the Trustee
as one such office or agency of the Company in accordance with Section 2.3.
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SECTION 4.3 REPORTS.
(a) Whether or not required by the rules and regulations of the SEC, so
long as any Notes are outstanding, the Company shall furnish to the Trustee and
each of the Holders of Notes (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 financial information,
including a AManagement's Discussion and Analysis of Financial Condition and
Results of Operations" that describes the financial condition and results of
operations of the Company and any consolidated Restricted Subsidiaries and, with
respect to the annual information only, reports thereon by the Company's
certified independent accountants (which shall be firm(s) of established
national reputation) and (ii) all information 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, whether or not required by the rules and regulations of the SEC,
the Company shall 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.
Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).
(b) For so long as any Notes remain outstanding, the Company shall
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.
SECTION 4.4 COMPLIANCE CERTIFICATE.
(a) The Company shall deliver to the Trustee, within 90 days after the
end of each fiscal year of the Company an Officers' Certificate complying with
Section 314(a)(4) of the TIA, and to the effect that to the best of his or her
knowledge no Default or Event of Default shall have occurred, and if such
default has occurred, describing all such Defaults or Events of Default of which
he or she may have knowledge and what action the Company is taking or proposes
to take with respect thereto) and that to the best of his or her knowledge no
event has occurred and remains in existence by reason of which payments on
account of the principal of or interest, if any, on the Notes is prohibited or
if such event has occurred, a description of the event and what action the
Company is taking or proposes to take with respect thereto.
(b) The Company shall deliver to the Trustee and each of the Holders of
Notes, concurrently with the delivery of the year-end financial statements
referred to in Section 4.3(a), a certificate of the independent certified public
accountants reporting on such financial statements stating that in making the
examination necessary therefor no knowledge was obtained of any Default or Event
of Default, except as specified in such certificate (it being understood that
such certificate shall be limited to the items that independent certified public
accountants are permitted to cover in such certificates pursuant to their
professional standards and customs of the profession).
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(c) The Company shall, so long as any of the Notes are outstanding,
deliver to the Trustee, forthwith upon any Officer becoming aware of any Default
or Event of Default, an Officers' Certificate specifying such Default or Event
of Default and what action the Company is taking or proposes to take with
respect thereto.
SECTION 4.5 TAXES.
The Company shall pay, and shall cause each of its Subsidiaries to pay,
prior to delinquency, all material taxes, assessments, and governmental levies
except such as are contested in good faith and by appropriate proceedings or
where the failure to effect such payment is not adverse in any material respect
to the Holders of the Notes.
SECTION 4.6 STAY, EXTENSION AND 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, extension or usury law wherever
enacted, now or at any time hereafter in force, that may affect the covenants or
the performance of this Indenture; and the Company to the extent that it may
lawfully do so hereby expressly waives all benefit or advantage of any such law,
and covenants that it shall not, by resort to any such law, hinder, delay or
impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law had
been enacted.
SECTION 4.7 RESTRICTED PAYMENTS.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly:
(a) declare or pay any dividend or make any other payment or
distribution on account of the Company's or any of its Restricted Subsidiaries'
Equity Interests (including, without limitation, any payment in connection with
any merger or consolidation involving the Company) other than dividends or
distributions to the Company or any Guarantor or payable in Equity Interests
(other than Disqualified Stock) of the Company;
(b) purchase, redeem or otherwise acquire or retire for value
(including without limitation, in connection with any merger or consolidation
involving the Company) any Equity Interests of the Company, any entity that
beneficially owns a majority of the Voting Stock of the Company or any entity
through which such entity beneficially owns such stock;
(c) purchase, redeem, defease or otherwise acquire or retire for value
any Indebtedness that is subordinated in right of payment to the Notes (other
than (i) the purchase, repurchase or other acquisition of Indebtedness that is
subordinated to the Notes in anticipation of satisfying a sinking fund
obligation, principal installment or any payment at final maturity, in each
case, due within one year of the date of such purchase, repurchase or other
acquisition, and (ii) Indebtedness that is permitted under clause (iv) of the
covenant described under Section 4.8(b) of this Indenture; or
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(d) make any Restricted Investment (all such payments and other actions
set forth in clauses (a) through (d) above being collectively referred to as
"RESTRICTED PAYMENTS"), UNLESS, at the time of and after giving effect to such
Restricted Payment:
(i) no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof, and
(ii) the Company would, at the time of such Restricted Payment
and after giving pro forma effect thereto as if such Restricted Payment
had been made at the beginning of the applicable four-quarter period,
have been permitted to incur at least $1.00 of additional Indebtedness
pursuant to the Fixed Charge Coverage Ratio test set forth in Section
4.8(a); and
(iii) such Restricted Payment, together with the aggregate
amount of all other Restricted Payments made by the Company or any of
its Restricted Subsidiaries after the Initial Maturity Date (excluding
Restricted Payments permitted by clauses (ii), (iii), (iv), (vi), (ix)
or (x) of the next succeeding paragraph), is less than the sum of:
(1) 50% of the Consolidated Net Income of the Company
for the period (taken as one accounting period) from the
beginning of the first fiscal quarter immediately following
the Initial Maturity Date to the end of the Company's most
recently ended fiscal quarter for which internal financial
statements are available at the time of such Restricted
Payment (or, if such Consolidated Net Income for such period
is a deficit, less 100% of such deficit); plus
(2) 100% of the aggregate net cash proceeds or the
fair market value of property other than cash received by the
Company as a contribution to its common equity capital or from
the issue or sale since the Closing Date of Equity Interests
of the Company (other than Disqualified Stock), or of
Disqualified Stock or debt securities of the Company that have
been converted into or exchanged for such Equity Interests
(other than Equity Interests (or Disqualified Stock or
convertible debt securities) sold to a Restricted Subsidiary
of the Company and other than Disqualified Stock or
convertible debt securities that have been converted into
Disqualified Stock); plus
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(3) to the extent not already included in
Consolidated Net Income of the Company for such period without
duplication, any Restricted Investment that was made by the
Company or any of its Restricted Subsidiaries after the
Closing Date is sold for cash or otherwise liquidated or
repaid for cash, or any Unrestricted Subsidiary which is
designated as an Unrestricted Subsidiary subsequent to the
Closing Date is sold for cash or otherwise liquidated or
repaid for cash, the lesser of-
(A) the cash return of capital with respect
to such Restricted Investment or Unrestricted Subsidiary (less
the cost of disposition, if any); and
(B) the initial amount of such Restricted
Investment or designated amount of such Unrestricted
Subsidiary; plus
(4) an amount equal to the net reduction in
Investments in Unrestricted Subsidiaries resulting from
dividends, repayments of loans or advances or other transfers
of assets, in each case to the Company or any Restricted
Subsidiary from any Unrestricted Subsidiary; plus
(5) any amount which previously was treated as a
Restricted Payment on account of any Guarantee entered into by
the Company or any Restricted Subsidiary to the extent that
such Guarantee has not been called upon and the obligation
arising under such Guarantee no longer exists.
The foregoing provisions shall not prohibit:
(i) the payment of any dividend within 60 days after the date
of declaration thereof, if at said date of declaration such payment
would have complied with the provisions of this Indenture;
(ii) the redemption, repurchase, retirement, defeasance or
other acquisition of any Indebtedness to AutoNation with respect to the
General Motors Letter of Credit which is subordinated to the Notes or
Equity Interests of the Company in exchange for, or out of the net cash
proceeds of the substantially concurrent sale (other than to a
Restricted Subsidiary of the Company) of, Equity Interests of the
Company (other than any Disqualified Stock), PROVIDED that, the amount
of any such net cash proceeds that are utilized for any such
redemption, repurchase, retirement, defeasance or other acquisition
shall be excluded from clause (d)(iii)(2) of the preceding paragraph;
(iii) the defeasance, redemption, repurchase or other
acquisition of Indebtedness which is subordinated to the Notes in
exchange for or with the net cash proceeds from an incurrence of
Permitted Refinancing Indebtedness;
(iv) the payment of any dividend or distribution by a
Restricted Subsidiary of the Company to the holders of its common
Equity Interests so long as the Company or another Restricted
Subsidiary receives at least its pro rata share of such dividend or
distribution in accordance with its Equity Interests;
(v) so long as no Default or Event of Default has occurred and
is continuing, the repurchase, redemption or other acquisition or
retirement of any Equity Interests of the Company or any of its
Restricted Subsidiaries from employees, former employees, directors,
former directors, consultants and former consultants of the Company or
any of its Restricted Subsidiaries (or permitted transferees of any of
such persons), pursuant to the terms of the agreements, including
employment agreements, equity subscription
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agreements or stock option agreements, or plans or amendments thereto;
PROVIDED, HOWEVER, that the aggregate amount of such repurchases,
redemptions and other acquisitions or retirements (other than in the
case of death or disability) shall not exceed $5.0 million in any
calendar year plus the net proceeds received from the sale of Equity
Interests to employees during such twelve-month period plus the
proceeds of key person life insurance policies received after the date
of this Indenture (with amounts not used in any twelve-month period
carried forward to succeeding twelve month periods);
(vi) the repurchase, redemption, retirement, refinancing,
acquisition for value or payment of any Disqualified Stock through the
substantially concurrent issuance of new Disqualified Stock of the
Company, provided, that any such new Disqualified Stock (A) shall have
an aggregate liquidation preference that does not exceed the aggregate
liquidation preference of the amount so refinanced; (B) has a Weighted
Average Life to Stated Maturity greater than the remaining Weighted
Average Life to Stated Maturity of the Disqualified Stock being
refinanced; and (C) has a Stated Maturity later than the Stated
Maturity for the Disqualified Stock being refinanced;
(vii) so long as no Default or Event of Default has occurred
and is continuing, the repurchase of any subordinated Indebtedness of
the Company at a purchase price not greater than 101% of the principal
amount of such subordinated Indebtedness in the event of a change of
control pursuant to a provision similar to Section 4.13 PROVIDED, that
prior to consummating such repurchase, the Company has made the change
of control offer as provided in Section 4.13 and has repurchased all
securities or other Indebtedness validly tendered for payment in
connection with such change of control offer;
(viii) so long as no Default or Event of Default has occurred
and is continuing, the repurchase of any subordinated Indebtedness of
the Company at a purchase price not greater than 100% of the principal
amount of such Indebtedness in the event of an Asset Sale pursuant to a
provision similar to the covenant described under Section 4.10 hereof,
provided that prior to consummating such repurchase the Company has
made an offer to purchase the Notes as provided in such covenant and
has repurchased all Notes validly tendered for payment in connection
with such offer;
(ix) repurchases of Capital Stock (or warrants or options
convertible into or exchangeable for such Capital Stock) deemed to
occur upon exercise of stock options to the extent that shares of such
Capital Stock (or warrants or options convertible into or exchangeable
for such Capital Stock) represent a portion of the exercise price of
such options;
(x) the redemption by any Risk Management Subsidiary of the
shares of its minority shareholder to the extent required pursuant to
the charter documents (as in effect on the date hereof) governing such
Risk Management Subsidiary for cash consideration not to exceed
$1,700,000 in the aggregate.
(xi) the declaration and payment of dividends or distributions
to holders of any class or series of Disqualified Stock of the Company
or preferred stock of its Restricted
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Subsidiaries issued or incurred in accordance with the covenant
described under Section 4.8 hereof to the extent such dividends or
distributions are included in the definition of Fixed Charges After
Fleet Costs; and
(xi) other Restricted Payments in an aggregate amount since
the Closing Date not to exceed $25.0 million.
The amount of all Restricted Payments (other than cash) shall be the
fair market value on the date of the Restricted Payment of the assets or
securities proposed to be transferred or issued by the Company or such
Restricted Subsidiary of the Company pursuant to such Restricted Payment. Not
later than 10 days after the date of making any Restricted Payment in excess of
$2.5 million, the Company shall deliver to the Trustee an Officers' Certificate
stating that such Restricted Payment is permitted and setting forth the basis
upon which the calculations required by the covenant described under Section 7
hereof were computed, together with a copy of (1) a resolution of the Board of
Directors determining the fair market value of any non-cash Restricted Payment
in excess of $5.0 million and (2) an opinion or appraisal issued by an
investment banking, accounting or appraisal firm of national standing if such
fair market value exceeds $10.0 million.
If the Company makes a Restricted Payment which, at the time of the
making of such Restricted Payment, would in the good faith determination of the
Company be permitted under the requirements of this Indenture, such Restricted
Payment shall be deemed to have been made in compliance with this Indenture
notwithstanding any subsequent adjustments made in good faith to the Company's
financial statements affecting the Company's Consolidated Net Income for any
period.
SECTION 4.8 INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK.
(a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee
or otherwise become directly or indirectly liable, contingently or otherwise,
with respect to (collectively, "INCUR") any Indebtedness (including Acquired
Debt) and the Company shall not issue any Disqualified Stock and shall not
permit any of its Restricted Subsidiaries to issue any shares of preferred
stock; PROVIDED, HOWEVER, that the Company may incur Indebtedness (including
Acquired Debt) or issue shares of Disqualified Stock, and any Restricted
Subsidiary that is a Guarantor or a Foreign Subsidiary may incur Indebtedness
(including Acquired Debt) and issue shares of preferred stock if the Company's
Fixed Charge Coverage Ratio for the Company's most recently ended four full
fiscal quarters for which internal financial statements are available
immediately preceding the date on which such additional Indebtedness is incurred
or such Disqualified Stock or preferred stock is issued would have been at least
2.25 to 1, determined on a pro forma basis (including a pro forma application of
the net proceeds therefrom), as if the additional Indebtedness had been
incurred, or the Disqualified Stock had been issued, as the case may be, at the
beginning of such four-quarter period.
(b) The provisions of the foregoing paragraph (a) shall not apply to
the incurrence of any of the following items of Indebtedness (collectively,
"PERMITTED DEBT") so long as no Default has occurred and is continuing or would
be caused thereby:
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(i) the incurrence by the Company or any of its Restricted
Subsidiaries of additional Indebtedness under one or more Credit
Facilities, letters of credit and related Guarantees under the Credit
Facilities, PROVIDED that the aggregate principal amount of all
Indebtedness and letters of credit of the Company and its Restricted
Subsidiaries (with letters of credit being deemed to have a principal
amount equal to the maximum potential liability (excluding interest and
fees) of the Company and its Restricted Subsidiaries thereunder)
incurred pursuant to this clause (i) does not exceed the greater of (x)
$225.0 million and (y) the Borrowing Base, less the aggregate amount of
Asset Sale proceeds applied by the Company and its Restricted
Subsidiaries to permanently reduce the availability of any such
Indebtedness under the New Credit Facility pursuant to the provisions
described under Section 4.10 of this Indenture;
(ii) the incurrence by the Company and its Restricted
Subsidiaries of the Existing Indebtedness;
(iii) the incurrence by the Company of Indebtedness
represented by the Notes and the incurrence by the Guarantors of the
Subsidiary Guarantees;
(iv) the incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness represented by Capital Lease Obligations,
mortgage financings or purchase money obligations, in each case
incurred for the purpose of financing all or any part of the purchase
price, lease expense, cost of construction, repair or improvement of or
addition to property, plant or equipment used in the business of the
Company or such Restricted Subsidiary, or the Capital Stock of a
Restricted Subsidiary that owns such property, plant or equipment, in
an aggregate principal amount, including all Permitted Refinancing
Indebtedness incurred to refund, refinance or replace Indebtedness
incurred pursuant to this clause (iv), not to exceed $25.0 million at
any time outstanding;
(v) the incurrence by the Company or any of its Restricted
Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or
the net proceeds of which are used to refund, refinance or replace
Indebtedness (other than intercompany Indebtedness) that was incurred
under the first paragraph of this Section or clauses (ii), (iii), (iv),
(v) or (xix) of this paragraph;
(vi) the incurrence by the Company or any of its Restricted
Subsidiaries of intercompany Indebtedness between or among the Company
and any of its Restricted Subsidiaries, PROVIDED, HOWEVER, that (1) if
the Company is the obligor on such Indebtedness, such Indebtedness is
expressly subordinated to the prior payment in full in cash of all
Obligations with respect to the Loans and the Notes and this Indenture,
(2) if a Restricted Subsidiary of the Company that is a Guarantor is
the obligor on such Indebtedness, such Indebtedness is expressly
subordinated to the prior payment in full in cash of such Restricted
Subsidiary's Subsidiary Guarantee and (3) (A) any subsequent event or
issuance or transfer of Equity Interests that results in any such
Indebtedness being held by a Person other than the Company or a
Restricted Subsidiary of the
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Company and (B) any sale or other transfer of any such Indebtedness to
a Person that is not either the Company or a Restricted Subsidiary of
the Company shall be deemed, in each case, to constitute an incurrence
of such Indebtedness by the Company or such Restricted Subsidiary, as
the case may be, that was not permitted by this clause (vi);
(vii) the incurrence by the Company or any of its Restricted
Subsidiaries of Hedging Obligations that are incurred in the normal
course of business for the purpose of fixing or hedging currency,
commodity or interest rate risk (including with respect to any floating
rate Indebtedness that is permitted by the terms of this Indenture to
be outstanding in connection with the conduct of their respective
businesses and not for speculative purposes);
(viii) the Guarantee by the Company or any Restricted
Subsidiary of Indebtedness of the Company or a Restricted Subsidiary of
the Company that was permitted to be incurred by another provision of
this covenant described under this Section and is otherwise in
accordance with this Indenture;
(ix) Permitted Vehicle Indebtedness and Customer Lease
Financing Loans;
(x) Indebtedness represented by Guarantees or letters of
credit issued to airports and airport and other governmental
authorities for the construction of airport rental or related
facilities to be used by the Company or any Restricted Subsidiary in
the ordinary course of business that do not exceed for the Company and
all Restricted Subsidiaries in the aggregate $50.0 million at any time
outstanding;
(xi) Indebtedness of Foreign Subsidiaries in an aggregate
principal amount that, when taken together with the principal amount of
all other Indebtedness Incurred pursuant to this clause (xi) (and any
Indebtedness Incurred by Foreign Subsidiaries prior to the Closing Date
to finance working capital) and then outstanding, does not exceed $50.0
million;
(xii) Indebtedness incurred in respect of workers'
compensation claims, self-insurance obligations, performance, surety
and similar bonds and completion guarantees provided by the Company or
a Restricted Subsidiary in the ordinary course of business;
(xiii) Indebtedness arising from agreements of the Company or
a Restricted Subsidiary providing for indemnification, adjustment of
purchase price or similar obligations, in each case, incurred or
assumed in connection with the disposition of any business, assets or
Capital Stock of a Restricted Subsidiary or incurred in connection with
a sale of Capital Stock of the Company;
(xiv) Indebtedness arising from the honoring by a bank or
other financial institution of a check, draft or similar instrument
(except in the case of daylight overdrafts) drawn against insufficient
funds in the ordinary course of business, PROVIDED, HOWEVER, that such
Indebtedness is extinguished within five Business Days of incurrence;
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(xv) Indebtedness of a Restricted Subsidiary incurred and
outstanding on or prior to the date on which such Subsidiary was
acquired by the Company or a Restricted Subsidiary (other than
Indebtedness incurred in connection with or in contemplation of, or to
provide all or any portion of the funds or credit support utilized to
consummate, the transaction or series of related transactions pursuant
to which such Subsidiary became a Restricted Subsidiary or was acquired
by the Company or a Restricted Subsidiary), PROVIDED, HOWEVER, that on
the date of such acquisition and after giving effect thereto, the
Company would have been able to incur at least $1.00 of additional
Indebtedness pursuant to the first paragraph of this covenant;
(xvi) shares of preferred stock of a Restricted Subsidiary
issued to the Company or another Restricted Subsidiary, PROVIDED that
any subsequent transfer of any Capital Stock or any other event which
results in any such Restricted Subsidiary ceasing to be a Restricted
Subsidiary or any other subsequent transfer of any such shares of
preferred stock (except to the Company or another Restricted
Subsidiary) shall be deemed, in each case, to be an issuance of
preferred stock;
(xvii) letters of credit issued for the account of any of the
Company's insurance subsidiaries in an amount not to exceed $40.0
million in the aggregate outstanding at any one time;
(xviii) additional notes issued pursuant to and in accordance
with the Loan Note Instrument, dated October 15, 1997, by Republic
Industries (UK) PLC and Republic Industries, Inc. (n/k/a AutoNation,
Inc.), provided that such notes shall not exceed ,6,765,380 in the
aggregate;
(xix) the incurrence of Indebtedness of the Company or a
Restricted Subsidiary to AutoNation under subordinated loan,
reimbursement or indemnification obligations with respect to Continuing
Obligations; and
(xx) the incurrence by the Company or any of its Restricted
Subsidiaries of additional Indebtedness in an aggregate principal
amount (or accreted value, as applicable) at any time outstanding,
including all Permitted Refinancing Indebtedness incurred to refund,
refinance or replace any other Indebtedness incurred pursuant to this
clause (xx), not to exceed $50.0 million.
(c) Notwithstanding the foregoing, neither the Company nor any
Restricted Subsidiary shall incur any Indebtedness under Section 4.8(b) if the
proceeds thereof are used, directly or indirectly, to refinance any Subordinated
Obligations or Guarantor Subordinated Obligations unless such Indebtedness shall
be subordinated to the Loans to at least the same extent as such Subordinated
Obligations or Guarantor Subordinated Obligations.
(d) For purposes of determining compliance with this covenant, in the
event that an item of proposed Indebtedness meets the criteria of more than one
of the categories of Permitted Debt described in clauses (i) through (xx) of
Section 4.8(b) above as of the date of incurrence thereof or is entitled to be
incurred pursuant to Section 4.8(a) as of the date of incurrence thereof, the
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Company shall, in its sole discretion, classify (or later reclassify in whole or
in part, in its sole discretion) such item of Indebtedness in any manner that
complies with this covenant. Accrual of interest, accrual of dividends, the
accretion of accreted value and the payment of interest in the form of
additional Indebtedness and the payment of dividends on Disqualified Stock or
Preferred Stock in the form of additional shares of the same class of
Disqualified Stock or Preferred Stock will not be deemed to be an incurrence of
Indebtedness or an issuance of Disqualified Stock or Preferred Stock for
purposes of this covenant.
For purposes of determining compliance with any U.S. dollar-denominated
restriction on the incurrence of Indebtedness denominated in a foreign currency,
the U.S. dollar-equivalent principal amount of such Indebtedness incurred
pursuant thereto shall be calculated based on the relevant currency exchange
rate in effect on the date that such Indebtedness was incurred, provided that,
if such Indebtedness is incurred to refinance other Indebtedness denominated in
a foreign currency, and such refinancing would cause the applicable U.S.
dollar-denominated restriction to be exceeded if calculated at the relevant
currency exchange in effect on the date of such refinancing, such U.S.
dollar-denominated restriction shall be deemed not to have been exceeded so long
as the principal amount of such refinancing Indebtedness does not exceed the
principal amount of such Indebtedness being refinanced.
SECTION 4.9 PERMITTED VEHICLE INDEBTEDNESS.
The aggregate principal amount of outstanding Permitted Vehicle
Indebtedness held by Persons other than the Company and its Restricted
Subsidiaries as of the last calendar day of each month (the ADETERMINATION
DATE") shall not exceed the net book value of the Permitted Vehicle Collateral
securing Permitted Vehicle Indebtedness held by Persons other than the Company
and its Restricted Subsidiaries on such Determination Date. Notwithstanding the
foregoing, if the Company is not in compliance with the preceding sentence on
any Determination Date, the Company will not be in breach thereof so long as:
(a) within 25 days from the Determination Date (or if such day is not a
Business Day, on the next succeeding Business Day) the Company or its Restricted
Subsidiaries repay sufficient Permitted Vehicle Indebtedness or deposits as
collateral additional Permitted Vehicle Collateral so that the Company would
have been in compliance as of the Determination Date assuming such repayment or
deposit had been made on such date; or
(b) within 50 days from the Determination Date (or if such day is not a
Business Day, on the next succeeding Business Day) the Company or one or more of
its Restricted Subsidiaries:
(i) repays sufficient Permitted Vehicle Indebtedness;
(ii) deposits as collateral additional Permitted Vehicle
Collateral; or
(iii) redesignates sufficient Permitted Vehicle Indebtedness
that is not secured by an actual Lien on Permitted Vehicle Collateral
to no longer constitute Permitted Vehicle Indebtedness, in each case so
that the Company would have been in compliance as of the Determination
Date assuming such repayment, deposit or redesignation had been made
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on such date; PROVIDED, HOWEVER, that, in the case of a redesignation
pursuant to this clause (iii), on the date of such redesignation and
after giving effect thereto as if such redesignated Indebtedness were
Incurred by the Company on such date, the Company would have been able
to incur at least $1.00 of additional Indebtedness pursuant to the
Fixed Charge Coverage Ratio test set forth in Section 4.8(a) PROVIDED
FURTHER, HOWEVER, that in determining whether the Company would have
been able to incur such $1.00 of additional Indebtedness, the Company
shall be entitled to exclude an amount of such redesignated
Indebtedness equal to the amount of Indebtedness the Company could have
Incurred on such date pursuant to clause (xx) of Section 4.8(b) hereof,
and such excluded amount shall be deemed to have been Incurred pursuant
to such clause (xx) of Section 4.8(b).
SECTION 4.10 ASSET SALES.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, consummate an Asset Sale unless:
(a) the Company or such Restricted Subsidiary receives consideration at
the time of such Asset Sale at least equal to the fair market value (evidenced
by a resolution of the Board of Directors set forth in an Officers' Certificate
delivered to the Trustee to the extent such Asset Sale involves consideration in
excess of $5.0 million) of the assets or Equity Interests issued, sold,
exchanged or otherwise disposed of,
(b) with respect to Asset Sales other than Asset Swaps, at least 75% of
the consideration therefor received by the Company or such Restricted Subsidiary
is in the form of cash or Cash Equivalents; PROVIDED that the amount of-
(x) any liabilities (as shown on the Company's or
such Restricted Subsidiary's most recent balance sheet) of the
Company or any Restricted Subsidiary (other than contingent
liabilities and liabilities that are by their terms
subordinated in right of payment to the Notes or any Guarantee
thereof) that are assumed by the transferee, purchaser, a
third party on behalf of the transferee or purchaser or a
third party on behalf of the transferee or purchaser of any
such assets pursuant to an agreement that releases the Company
or such Restricted Subsidiary from further liability;
(y) any securities, notes or other obligations
received by the Company or any such Restricted Subsidiary from
such transferee that are within 180 days converted, sold or
exchanged by the Company or such Restricted Subsidiary into
cash (to the extent of the cash received); and
(z) any Designated Noncash Consideration received by
the Company or any of its Restricted Subsidiaries in the Asset
Sale,
shall be deemed to be "cash" for purposes of this provision; and
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(c) with respect to an Asset Swap constituting an Asset Sale, the
Company or any Restricted Subsidiary shall be required to receive in cash (as
such term is deemed to be defined for purposes of clause (ii) above) or Cash
Equivalents an amount equal to at least 75% of the proceeds of the Asset Sale
which do not consist of like-kind assets acquired in connection with the Asset
Swap.
Within 365 days after the receipt of any Net Proceeds from an Asset
Sale, the Company may apply such Net Proceeds, at its option:
(i) to repay Indebtedness under any Credit Facility (and to
correspondingly permanently reduce the commitments with respect thereto
in the case of revolving borrowing) or under the Senior Loan Agreement;
(ii) to repay Indebtedness of a Restricted Subsidiary of the
Company (and to correspondingly permanently reduce the commitments with
respect thereto in the case of revolving borrowings);
(iii) to the acquisition of a controlling interest in another
business, the making of a capital expenditure or the acquisition of
other assets, in each case, in or to be used in a Permitted Business;
(iv) to enter into a legally binding commitment to acquire a
controlling interest in another business or other assets in or to be
used in a Permitted Business; provided that the transaction
contemplated by such agreement must be consummated no later than 120
days after the end of such 365-day period; or
(v) to acquire Capital Stock constituting a minority interest
in any Person that at such time is a Restricted Subsidiary.
Pending the final application of any such Net Proceeds, the Company or
a Restricted Subsidiary may temporarily reduce Indebtedness under any Credit
Facility or otherwise utilize such Net Proceeds in any manner that is not
prohibited by this Indenture.
Any Net Proceeds from such Asset Sale that are not finally applied or
invested as provided in the first sentence of this paragraph will be deemed to
constitute "EXCESS PROCEEDS." Within ten days of each date on which the
aggregate amount of Excess Proceeds exceeds $10,000,000, the Company shall
commence an Asset Sale Offer pursuant to Section 3.7 to all Holders and to all
holders of other Indebtedness that is pari passu Indebtedness with the Notes at
an offer price in cash in an amount equal to 100% of the principal amount
thereof (or 100% of the accreted value thereof, in the case of Indebtedness sold
at a discount) plus accrued and unpaid interest and Liquidated Damages thereon,
if any, to the date fixed for the closing of such offer in accordance with the
procedures set forth in Section 3.7 hereof. To the extent that the aggregate
amount of Notes tendered pursuant to an Asset Sale Offer is less than the Excess
Proceeds, the Company may use any remaining Excess Proceeds for any purpose. If
the aggregate principal amount of Notes and such other Indebtedness surrendered
exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and
such other Indebtedness to be purchased on a pro
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rata basis. Upon completion of such offer to purchase, the amount of Excess
Proceeds will be deemed to be reset at zero.
To the extent that any or all of the net proceeds of any Foreign Asset
Sale are prohibited or delayed by applicable local law from being repatriated to
the United States, the portion of such Net Proceeds so affected shall not be
required to be applied at the time provided above, but may be retained by the
applicable Restricted Subsidiary so long, but only so long, as the applicable
local law will not permit repatriation to the United States. The Company will
promptly take or cause the applicable Restricted Subsidiary to promptly take all
actions required by the applicable local law to permit such repatriation. Once
repatriation of any of such affected net proceeds is permitted under the
applicable local law, the Company will immediately effect such repatriation and
such repatriated net proceeds will be applied in the manner set forth in this
provision as if such Asset Sale had occurred on the date of such repatriation.
SECTION 4.11 LIENS.
The Company will not, and will not permit any Restricted Subsidiary to,
create or cause to exist any consensual Lien (other than Permitted Liens) on any
of its property or assets (including Capital Stock), whether owned on the date
of this Agreement or thereafter acquired, securing any Indebtedness, unless
effective provision is made to secure the Loans equally and ratably with (or
prior to in the case of Liens with respect to Subordinated Obligations) such
Indebtedness for so long as such Indebtedness is so secured. Any Lien created
pursuant to the preceding sentence shall provide by its terms that such Lien
shall be automatically and unconditionally released and discharged upon the
release and discharge of the Lien on the other Indebtedness.
SECTION 4.12 DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING RESTRICTED
SUBSIDIARIES.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause to exist or
become effective any consensual encumbrance or restriction on the ability of any
Restricted Subsidiary of the Company or the Company to:
(a) (i) pay dividends or make any other distributions to the Company or
any of its Restricted Subsidiaries (1) on its Capital Stock or (2) with respect
to any other interest or participation in, or measured by, its profits; or (ii)
pay any Indebtedness owed to the Company or any of its Restricted Subsidiaries
that directly or indirectly own any Capital Stock of such Restricted Subsidiary;
(b) make loans or advances to the Company or any of its Restricted
Subsidiaries that directly or indirectly own any Capital Stock of such
Restricted Subsidiary; or
(c) transfer any of its properties or assets to the Company or any of
its Restricted Subsidiaries that directly or indirectly own any Capital Stock of
such Restricted Subsidiary,
except for such encumbrances or restrictions existing under or by reason of:
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(i) Existing Indebtedness and any agreement as in effect on
the Closing Date and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or
refinancings that are no more restrictive, taken as a whole, with
respect to dividend and other payment restrictions than those contained
in the agreements as in effect on the Closing Date;
(ii) the New Credit Facility as in effect as of the Closing
Date, and any amendments, modifications, restatements, renewals,
increases, supplements, refundings, replacements or refinancings
thereof or any other Credit Facility, PROVIDED that such amendments,
modifications, restatements, renewals, increases, supplements,
refundings, replacement or refinancings or such other Credit Facility
are no more restrictive, taken as a whole, with respect to such
dividend and other payment restrictions than those contained in the New
Credit Facility as in effect on the Closing Date;
(iii) this Indenture and the Notes;
(iv) any instrument governing Indebtedness or Capital Stock of
a Person acquired by the Company or any of its Restricted Subsidiaries
as in effect at the time of such acquisition (except to the extent such
Indebtedness was incurred or Capital Stock issued in connection with or
in contemplation of such acquisition), which encumbrance or restriction
is not applicable to any Person, or the properties or assets of any
Person, other than the Person, or the property or assets of the Person,
so acquired, PROVIDED that such Indebtedness was permitted by the terms
of the Indenture to be incurred;
(v) by reason of customary non-assignment provisions in leases
entered into in the ordinary course of business;
(vi) purchase money obligations for property acquired in the
ordinary course of business that impose restrictions of the nature
described in clause (c) above on the property so acquired;
(vii) Indebtedness of Guarantors, PROVIDED that such
Indebtedness was permitted to be incurred pursuant to the Indenture;
(viii) Permitted Refinancing Indebtedness, PROVIDED that the
restrictions contained in the agreements governing such Permitted
Refinancing Indebtedness are no more restrictive, taken as a whole,
than those contained in the agreements governing the Indebtedness being
refinanced;
(ix) restrictions imposed on the obligor of any Permitted
Vehicle Indebtedness;
(x) restrictions on any Specified Financing Subsidiary
pursuant to the terms of the Customer Lease Financing Loans under which
it is obligated;
(xi) any restriction with respect to a Restricted Subsidiary
imposed pursuant to an agreement entered into for the sale or
disposition of all or substantially all the Capital
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Stock or assets of such Restricted Subsidiary pending the closing of
such sale or disposition;
(xii) any restriction or encumbrance consisting of any
restriction on the sale or other disposition of assets or property
securing Indebtedness as a result of a Lien permitted to be Incurred
under this Indenture on such asset or property;
(xiii) customary provisions restricting dispositions of real
property interests set forth in any reciprocal easement agreements of
the Company or any Restricted Subsidiary;
(xiv) restrictions on Foreign Subsidiaries pursuant to
arrangements governing Indebtedness of such Foreign Subsidiaries
permitted pursuant to the covenant described under Section 4.8 hereof;
and
(xv) encumbrances or restrictions arising or existing by
reason of applicable law or any applicable rule, regulation or order,
including, without limitation, restrictions on the payment of dividends
on the Company's insurance Subsidiaries imposed by federal or state
government regulations.
SECTION 4.13 CHANGE OF CONTROL.
Upon a Change of Control, each Holder will have the right to require
that the Company repurchase all or any part of such Holder's Notes pursuant to
the offer described below (the "CHANGE OF CONTROL OFFER") at a purchase price in
cash equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest and Liquidated Damages thereon, if any, to the date of
repurchase (the "CHANGE OF CONTROL PAYMENT").
(a) Not later than the 30th day following any such Change of Control,
the Company will mail a notice to each Holder with a copy to the Administrative
Agent stating:
(i) that a Change of Control has occurred and that such Holder
has the right to require the Company to purchase such Holder's Notes at
a purchase price in cash equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase (subject to the right of Holders of record on a record date to
receive interest on the relevant interest payment date);
(ii) the repurchase date, which date shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed
and shall not be earlier than the date the Change of Control occurs
(the "CHANGE OF CONTROL PAYMENT DATE"); and
(iii) the procedures determined by the Company, consistent
with this Section, that a Holder must follow in order to have its Notes
purchased.
(b) Holders electing to have a Note purchased will be required to give
notice in writing to the Company at the address specified in Section 11.2 at
least three Business Days prior to the
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purchase date. Each Holder will be entitled to withdraw its election if the
Company receives, not later than one Business Day prior to the purchase date, a
telegram, telex, facsimile transmission or letter from such Holder setting forth
the name of such Holder, the principal amount of the Note which was to be
purchased and a statement that such Holder is withdrawing its election to have
such Note purchased.
(c) On the purchase date, the Company shall pay the purchase price for
the Notes to be purchased, to the Holders entitled thereto upon, in the case of
Loans evidenced by Loan Notes, surrender of such Loan Notes.
(d) The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any other securities laws
or regulations in connection with the repurchase of Notes pursuant to this
Section. To the extent that the provisions of any securities laws or regulations
conflict with provisions of this Section, the Company shall comply with the
applicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section by virtue thereof.
(e) The Company will not be required to make a Change of Control offer,
as described above, upon a Change of Control if a third party makes the Change
of Control offer in the manner, at the times and otherwise in compliance with
the requirements set forth in this Agreement applicable to a Change of Control
offer made by the Company and purchases all Notes validly tendered and not
withdrawn under such Change of Control.
SECTION 4.14 AFFILIATE TRANSACTIONS.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise
dispose of any properties or assets to, or purchase any property or assets from,
or enter into or make or amend any transaction, contract, agreement,
understanding, loan, advance or Guarantee with, or for the benefit of, any
Affiliate of any such Person (each of the foregoing, an "AFFILIATE
TRANSACTION"), unless:
(a) such Affiliate Transaction is on terms that are no less favorable
to the Company or the relevant Restricted Subsidiary than those that would have
been obtained in a comparable transaction by the Company or such Restricted
Subsidiary with an unrelated Person; and
(b) the Company delivers to the Trustee:
(i) with respect to any Affiliate Transaction or series of
related Affiliate
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Transactions involving aggregate consideration in excess of $5.0
million, a resolution of its Board of Directors set forth in an
Officers' Certificate certifying that such Affiliate Transaction
complies with clause (a) above and that such Affiliate Transaction has
been approved by a majority of the disinterested members of its Board
of Directors (or, if there is only one disinterested member of the
Board of Directors, such disinterested member); and
(ii) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in
excess of $10.0 million, an opinion as to the fairness to the Company
or such Restricted Subsidiary of such Affiliate Transaction from a
financial point of view, or an opinion that the terms of the Affiliate
Transaction are on terms that are no less favorable to the Company or
the particular Restricted Subsidiary than those that would have been
obtained by the Company or such Restricted Subsidiary with an unrelated
Person, issued by an accounting, appraisal or investment banking firm
of national standing;
The following shall be deemed not to be Affiliate Transactions
or subject to the provisions of the prior paragraph:
(1) any employment, consulting, agency or other
compensation agreement entered into or benefit plan adopted by
the Company or any of its Restricted Subsidiaries in the
ordinary course of business;
(2) transactions between or among the Company and/or
its Restricted Subsidiaries;
(3) any sale or other issuance of Equity Interests
(other than Disqualified Stock) of the Company, including the
issuance of stock options;
(4) Permitted Investments or Restricted Payments
that are permitted by Section 4.7;
(5) fees and compensation paid to members of the
Board of Directors of the Company and its Restricted
Subsidiaries;
(6) loans or advances to employees for moving,
entertainment and travel expenses, drawing accounts and
similar expenditures in the ordinary course of business;
(7) fees and compensation (including the issuance of
stock options) paid to and indemnity provided on behalf of
officers, directors, consultants or employees of the Company
or any of its Restricted Subsidiaries, pursuant to agreements,
statute, charter or by-law provision or otherwise;
(8) transactions consummated pursuant to, or
contemplated by, and the entering into of the Separation and
Distribution Agreement, Transitional Services Agreement, Tax
Sharing Agreement, the Benefits Agreement, the AutoNation
Reimbursement Agreement, leases, guarantees, parts agreements,
corporate agreements, fleet agreements, association program
agreements, association and affinity agreements, any
agreements evidencing the Continuing Obligations, and other
related agreements and other agreements ancillary to any of
the foregoing, in each case between AutoNation and its
Affiliates, on the one hand, and the Company and its
Restricted Subsidiaries, on the other hand, as such agreements
are in effect on the Spin-Off Date and as such agreements may
be amended from time to time in any manner not materially less
favorable to the Holders;
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(9) transactions and agreements in effect on the date
of this Agreement, as such agreements may be amended or
transactions modified from time to time in any manner not
materially less favorable to the Holders;
(10) customary business arrangements consistent with
past practice between the Company and its Subsidiaries, on the
one hand, and Certified Vacations, Inc. and its affiliates, on
the other hand;
(11) the purchase of revenue earning vehicles from
AutoNation, Inc., provided that (1) the purchase price for
such vehicles is no greater than the purchase price paid by
AutoNation to an unrelated Person for such vehicles and (2)
any processing or other fees paid to AutoNation in connection
with such purchase are customary and consistent with industry
practice; and
(12) any Affiliate Transaction that involves
consideration of $250,000 or less; provided that such
Affiliate Transactions do not exceed $2.5 million in any
12-month period.
(13) a registration rights agreement with Xxxxxxx X.
Xxxx and related entities in respect of the shares of common
stock of the Company distributed to him pursuant to the
Spin-Off, which registration rights agreement shall be on
terms no less favorable to the Company than the existing
registration rights agreement between AutoNation and Xxxxxxx
X. Xxxx.
SECTION 4.15 SALE AND LEASEBACK TRANSACTIONS.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any sale and leaseback transaction, PROVIDED that,
the Company or any Restricted Subsidiary may enter into a sale and leaseback
transaction if:
(a) the Company or that Restricted Subsidiary, as applicable, could
have incurred Indebtedness in an amount equal to the Attributable Debt relating
to such sale and leaseback transaction pursuant to the Fixed Charge Coverage
Ratio test set forth in the first paragraph of the covenant described above
under Section 4.8 hereof and
(b) the net cash proceeds of such sale and leaseback transaction are at
least equal to the fair market value (as determined in good faith by the Board
of Directors if in excess of $5.0 million) of the property that is the subject
of such sale and leaseback transaction; and
(c) the transfer of assets in such sale and leaseback transaction is
permitted by, and the Company applies the proceeds of such transaction in
compliance with, the covenant described above under Section 4.10 hereof.
Notwithstanding the preceding sentence, the Company or any of its
Restricted
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Subsidiaries may enter into a sale and leaseback transaction if such sale and
leaseback transaction is between the Company and any Restricted Subsidiary or
between Restricted Subsidiaries. In addition, the restrictions of this Section
4.15 shall not apply to sale and leaseback transaction with respect to revenue
earning or service vehicles.
SECTION 4.16 SUBSIDIARY GUARANTEES.
The Company will not permit any Restricted Subsidiary, directly or
indirectly, to guarantee, assume or in any other manner become liable with
respect to any Indebtedness of the Company unless:
(a) such Restricted Subsidiary simultaneously executes and delivers a
supplemental indenture to this Indenture providing for a Guarantee of all of the
Company's obligations under the Notes and this Indenture on terms substantially
similar to the guarantee of such Indebtedness; provided that if such
Indebtedness is by its express terms subordinated in right of payment to the
Notes, any such assumption, Guarantee or other liability of such Restricted
Subsidiary with respect to such Indebtedness shall be subordinated in right of
payment to such Restricted Subsidiary's assumption, Guarantee or other liability
with respect to the Notes substantially to the same extent as such Indebtedness
is subordinated to the Notes; and
(b) such Restricted Subsidiary waives, and will not in any manner
whatsoever claim to take the benefit or advantage of, any rights of
reimbursement, indemnity or subrogation or any other rights against the Company
or any other Restricted Subsidiary as a result of any payment by such Restricted
Subsidiary under its Guarantee; PROVIDED, HOWEVER, that any subsidiary may
Guarantee Permitted Vehicle Indebtedness without complying with the foregoing
covenant.
Notwithstanding the foregoing, any Guarantee of all of the Company's
obligations under the Notes and this Indenture by a Restricted Subsidiary may
provide by its terms that it will be automatically and unconditionally released
and discharged upon:
(i) any sale, exchange or transfer, to any Person not an
Affiliate of the Company, of all of the Company's and each Restricted
Subsidiary's Equity Interests in, or all or substantially all of the
assets of, such Restricted Subsidiary (which sale, exchange or transfer
is not prohibited by this Indenture); or
(ii) the release or discharge of the guarantee which resulted
in the creation of such Guarantee, except a discharge or release by or
as a result of payment under such guarantee.
SECTION 4.17 BUSINESS ACTIVITIES.
The Company will not, and the Company will not permit any of its
Restricted Subsidiaries to, directly or indirectly, engage in any line of
business other than a Permitted Business, except to such extent as would not be
material to the Company and its Restricted Subsidiaries taken as a whole.
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SECTION 4.18 DESIGNATION OF AN UNRESTRICTED SUBSIDIARY.
The Company may designate any Subsidiary to be an "Unrestricted
Subsidiary" as provided below, in which event the Subsidiary and each other
Person that is then, or thereafter becomes, a Subsidiary of the Subsidiary will
be deemed to be an "Unrestricted Subsidiary."
The Company may designate a Subsidiary to be an Unrestricted Subsidiary
if
(i) the conditions set forth in the definitions of an
"Unrestricted Subsidiary" are true on the effective date of such
designation;
(ii) the Company or the Restricted Subsidiary that owns the
Capital Stock of the Subsidiary to be designated an Unrestricted
Subsidiary could make a Restricted Payment in an amount equal to the
greater of the fair market value and the book value of the Capital
Stock of such Subsidiary under Section 4.7; and
(iii) such amount is, as of the effective date of the
designation, deemed to have been paid as a Restricted Payment under
Section 4.7.
The Company may designate an Unrestricted Subsidiary to be a Restricted
Subsidiary if
(i) the Board of Directors takes such action pursuant to a
Board Resolution;
(ii) no Default or Event of Default shall have occurred and be
continuing or would occur as a consequence thereof,
(iii) the Company and its Restricted Subsidiaries could incur
at least $1.00 of additional Indebtedness under Section 4.8(a) on a pro
forma basis after taking into account such designation; and
(iv) any Indebtedness of such Subsidiary is deemed to have
been incurred as of the effective date of such designation.
SECTION 4.19 CORPORATE EXISTENCE.
Subject to Article 5 hereof, 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
Subsidiaries, in accordance with the respective organizational documents (as the
same may be amended from time to time) of the Company or any such Subsidiary and
(ii) the rights (charter and statutory), licenses and franchises of the Company
and its Subsidiaries; PROVIDED, HOWEVER, that the Company shall not be required
to preserve any such right, license or franchise, or the corporate, partnership
or other existence of any of its Subsidiaries, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company and its Subsidiaries, taken as a whole, and that the
loss thereof is not adverse in any material respect to the Holders of the Notes.
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SECTION 4.20 PAYMENTS FOR CONSENT.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder of
any Notes for or as an inducement to any consent, waiver or amendment of any of
the terms or provisions of this Indenture or the Notes unless such consideration
is offered to be paid or is paid to all Holders of the Notes that consent, waive
or agree to amend in the time frame set forth in the solicitation documents
relating to such consent, waiver or agreement.
ARTICLE 5
SUCCESSORS
SECTION 5.1 MERGER, CONSOLIDATION OR SALE OR LEASE OF ASSETS.
The Company will not, directly or indirectly, consolidate with or merge
with or into, or convey, transfer or lease all or substantially all of its
assets to, any Person, unless:
(a) the Company is the surviving corporation, partnership, limited
liability company or other entity, or the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition shall have been made is a
corporation, partnership, limited liability company or other entity organized or
existing under the laws of the United States, any state thereof or the District
of Columbia;
(b) the Person formed by or surviving any such consolidation or merger
(if other than the Company) or the Person to which such sale, assignment,
transfer, conveyance or other disposition shall have been made assumes all the
obligations of the Company under the Notes and this Indenture pursuant to a
supplemental indenture or other agreement in a form reasonably satisfactory to
the Trustee;
(c) immediately after such transaction no Default or Event of Default
shall have occurred; and
(d) except in the case of a merger of the Company with or into a
Restricted Subsidiary of the Company, a merger of a Restricted Subsidiary with
or into the Company or the sale, assignment, transfer, conveyance, lease or
other disposition of assets or properties among the Company and its Restricted
Subsidiaries, the Company or Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such sale,
assignment, transfer, conveyance or other disposition shall have been made will
either (i) immediately after such transaction after giving pro forma effect
thereto and any related financing transactions as if the same had occurred at
the beginning of the applicable four-quarter period, be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage
Ratio test set forth in Section 5.1(a) hereof or (ii) immediately following such
transaction after giving pro forma effect thereto and to any related financing
transactions have a Fixed Charge Coverage Ratio which equals or exceeds the
Fixed Charge Coverage Ratio immediately prior to such transaction.
Notwithstanding this Section 5.1, the Company may merge with an
Affiliate incorporated solely for the purpose of reincorporating the Company in
another jurisdiction.
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SECTION 5.2 SUCCESSOR CORPORATION SUBSTITUTED.
Upon any consolidation or merger, or any sale, assignment, transfer,
lease, conveyance or other disposition of all or substantially all of the assets
of the Company in accordance with Section 5.1 hereof, the successor corporation
formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, conveyance or other disposition is made
shall succeed to, and be substituted for (so that from and after the date of
such consolidation, merger, sale, conveyance or other disposition, the
provisions of this Indenture referring to the "COMPANY" shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of the Company under this Indenture with the same effect as if such
successor Person had been named as the Company herein; PROVIDED, HOWEVER, that
the predecessor Company shall not be relieved from the obligation to pay the
principal of and interest on the Notes except in the case of a sale assignment,
transfer, conveyance or other disposition of all of the Company's assets that
meets the requirements of Section 5.1 hereof.
ARTICLE 6
EVENTS OF DEFAULT
SECTION 6.1 EVENTS OF DEFAULT.
Each of the following shall constitute an "Event of Default":
(a) default for 30 days in the payment when due of interest on, or
Liquidated Damages, if applicable, with respect to, the Notes;
(b) default in payment when due of the principal of or premium, if any,
when due at its Stated Maturity, upon optional redemption, upon required
repurchase, upon declaration or otherwise;
(c) failure by the Company or any of its Restricted Subsidiaries to
comply with the provisions described under Section 5.1 hereof;
(d) failure by the Company or any of its Restricted Subsidiaries for 45
days after notice to comply with the provisions described under Section 4.10 or
Section 4.13 hereof, in each case, other than with respect to a failure to
purchase Notes that will constitute an Event of Default under clause (b) above;
(e) failure by the Company or any of its Restricted Subsidiaries for 60
days to comply with any of its other agreements in this Indenture or the Notes
after written notice to the Company by the Trustee or to the Company and the
Trustee by the Holders of at least 25% in principal amount of the Notes then
outstanding voting as a single class;
(f) default under any mortgage, indenture or instrument under which
there may be issued
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or by which there may be secured or evidenced any Indebtedness for money
borrowed by the Company or any of its Restricted Subsidiaries (other than the
Notes) (or the payment of which is guaranteed by the Company or any of its
Restricted Subsidiaries), other than Indebtedness owed to the Company or a
Wholly-Owned Subsidiary, whether such Indebtedness or guarantee now exists, or
is created after the Closing Date, which default:
(i) is caused by a failure to pay principal of such
Indebtedness prior to the later of (1) one day following the due date
of such principal and (2) the expiration of the grace period, if any,
provided in such Indebtedness (a "PAYMENT DEFAULT"); or
(ii) has resulted in the acceleration of such Indebtedness
prior to its stated maturity
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 a
Payment Default or the maturity of which has been so accelerated, aggregates
without duplication $25.0 million or more;
(g) failure by the Company or any of its Restricted Subsidiaries to pay
final judgments aggregating in excess of $25.0 million (excluding amounts
covered by insurance), which judgments are not paid, discharged or stayed for a
period of 60 days;
(h) the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary shall commence any case, proceeding or other
action (A) under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other relief with respect to it or its debts, or (B) seeking appointment of a
receiver, trustee, custodian, conservator or other similar official for it or
for all or any substantial part of its assets, or the Company or any Significant
Subsidiary or group of Restricted Subsidiaries that, taken together (as of the
latest audited consolidated financial statements for the Company and its
Restricted Subsidiaries), would constitute a Significant Subsidiary shall make a
general assignment for the benefit of its creditors; or (ii) there shall be
commenced against the Company or a Significant Subsidiary or group of Restricted
Subsidiaries that, taken together (as of the latest audited consolidated
financial statements for the Company and its Restricted Subsidiaries), would
constitute a Significant Subsidiary any case, proceeding or other action of a
nature referred to in clause (i) above which (A) results in the entry of an
order for relief or any such adjudication or appointment or (B) remains
undismissed, undischarged or unbonded for a period of 60 days; or (iii) there
shall be commenced against the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a Significant Subsidiary any case, proceeding or
other action seeking issuance of a warrant of attachment, execution, distraint
or similar process against all or any substantial part of its assets which
results in the entry of an order for any such relief which shall not have been
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vacated, discharged, or stayed or bonded pending appeal within 60 days from the
entry thereof; or (iv) the Company or a Significant Subsidiary or group of
Restricted Subsidiaries that, taken together (as of the latest audited
consolidated financial statements for the Company and its Restricted
Subsidiaries), would constitute a significant Subsidiary shall take any action
in furtherance of, or indicating its consent to, approval of, or acquiescence
in, any of the acts set forth in clause (i), (ii), or (iii) above; or (v) the
Company or a Significant Subsidiary or group of Restricted Subsidiaries that,
taken together (as of the latest audited consolidated financial statements for
the Company and its Restricted Subsidiaries), would constitute a Significant
Subsidiary shall be generally unable to, or shall admit in writing its inability
to, pay its debts as they become due; and
(i) except as permitted by this Indenture, any Subsidiary Guarantee
shall be held in any judicial proceeding to be unenforceable or invalid or shall
cease, for any reason, to be in full force and effect or any Guarantor, or any
Person acting on behalf of any Guarantor, shall deny or disaffirm its
obligations under its Subsidiary Guarantee.
SECTION 6.2 ACCELERATION.
If any Event of Default occurs and is continuing (other than an event
described in clause (h) above), the Trustee or the Holders of at least 25% in
principal amount of the then outstanding Notes may declare all the Notes to be
due and payable immediately. In the case of an Event of Default described in
clause (h) above with respect to the Company, all outstanding Notes will become
due and payable without further action or notice. Holders of the Notes may not
enforce this Indenture or the Notes except as provided in this Indenture.
Subject to certain limitations, Holders of a majority in principal amount of the
then outstanding Notes may direct the Trustee in its exercise of any trust or
power. The Trustee may withhold from Holders of the Notes notice of any
continuing Default or Event of Default (except a Default or Event of Default
relating to the payment of principal or interest) if it determines that
withholding notice is in their interest.
Holders representing a majority in aggregate principal amount of the
Notes then outstanding, by notice to the Trustee may on behalf of the Holders of
all of the Notes waive any existing Default or Event of Default and its
consequences under this Indenture except a continuing Default or Event of
Default in the payment of interest on, or the principal of, the Notes.
SECTION 6.3 OTHER REMEDIES.
If an Event of Default occurs and is continuing, the Trustee, in its
sole discretion, may pursue any available remedy to collect the payment of
principal, premium, if any, interest and Liquidated Damages, if any, on the
Notes or to enforce the performance of any provision of the Notes or this
Indenture.
The Trustee may maintain a proceeding even if it does not possess any
of the Notes or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder of a Note 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. All remedies are
cumulative to the extent permitted by law.
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SECTION 6.4 WAIVER OF PAST DEFAULTS.
Holders of not less than a majority in aggregate principal amount of
the then outstanding Notes by written notice to the Trustee may on behalf of the
Holders of all of the Notes waive an existing Default or Event of Default and
its consequences hereunder, except a continuing Default or Event of Default in
the payment of the principal of, premium and Liquidated Damages, if any, or
interest on, the Notes (including in connection with an offer to purchase)
(PROVIDED, HOWEVER, that the Holders of a majority in aggregate principal amount
of the then outstanding Notes may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration).
Upon any such waiver, such Default shall cease to exist, and any Event of
Default arising therefrom shall be deemed to have been cured for every purpose
of this Indenture; but no such waiver shall extend to any subsequent or other
Default or impair any right consequent thereon.
SECTION 6.5 CONTROL OF MAJORITY.
Holders of a majority in principal amount of the then outstanding Notes
may direct the time, method and place of conducting any proceeding for
exercising any remedy available to the Trustee or exercising any trust or power
conferred on it. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture or that the Trustee determines may be
unduly prejudicial to the rights of other Holders of Notes or that may involve
the Trustee in personal liability. The Trustee may take any other action
consistent with this Indenture relating to any such direction.
SECTION 6.6 LIMITATION ON SUITS.
A Holder of a Note may pursue a remedy with respect to this Indenture
or the Notes only if:
(a) the Holder of a Note gives to the Trustee written notice of a
continuing Event of Default;
(b) the Holders of at least 25% in principal amount of the then
outstanding Notes make a written request to the Trustee to pursue the remedy;
(c) such Holder of a Note or Holders of Notes offer and, if requested,
provide to the Trustee security and indemnity satisfactory to the Trustee
against any loss, liability or expense;
(d) 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
security and indemnity; and
(e) during such 60-day period the Holders of a majority in principal
amount of the then outstanding Notes do not give the Trustee a direction
inconsistent with the request.
A Holder of a Note may not use this Indenture to prejudice the rights
of another Holder of a Note or to obtain a preference or priority over another
Holder of a Note.
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SECTION 6.7 RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT.
Notwithstanding any other provision of this Indenture, the right of any
Holder of a Note to receive payment of principal, premium and Liquidated
Damages, if any, and interest on the Note, on or after the respective due dates
expressed in the Note (including in connection with an offer to purchase), 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 such Holder.
SECTION 6.8 COLLECTION SUIT BY TRUSTEE.
If an Event of Default specified in Section 6.1(a) or (b) occurs and is
continuing, the Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Company for the whole amount of
principal of, premium and Liquidated Damages, if any, and interest remaining
unpaid on the Notes and interest on overdue principal and, to the extent lawful,
interest and such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, fees, expenses,
disbursements and advances of the Trustee, its agents and counsel.
SECTION 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM.
The Trustee is authorized to 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, fees, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders of the Notes allowed in any judicial proceedings relative to the Company
(or any other obligor upon the Notes), its creditors or its property and shall
be entitled and empowered to collect, receive and distribute any money or other
property payable or deliverable on any such claims and any custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee, and in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to
it for the reasonable compensation, fees, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee
under or in connection with this Indenture. To the extent that the payment of
any such compensation, fees, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under or
in connection with this Indenture 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 that the Holders may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise, and such Lien in favor of a predecessor Trustee shall
be senior to the Lien in favor of the current Trustee. Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Notes or the rights of any Holder, or to
authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.
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SECTION 6.10 PRIORITIES.
If the Trustee collects any money pursuant to this Article, it shall
pay out the money in the following order, subject to applicable law:
FIRST: to the Trustee (including any predecessor Trustee), its agents
and attorneys for amounts due under Section 7.7 hereof, including payment of all
compensation, fees, expenses and liabilities incurred, and all advances made, by
the Trustee and the costs and expenses of collection;
SECOND: to Holders of Notes for amounts due and unpaid on the Notes for
principal, premium and Liquidated Damages, if any, and interest, ratably,
without preference or priority of any kind, according to the amounts due and
payable on the Notes for principal, premium and Liquidated Damages, if any and
interest, respectively; and
THIRD: to the Company or to such party as a court of competent
jurisdiction shall direct.
The Trustee, upon prior written notice to the Company, may fix a record
date and payment date for any payment to Holders of Notes 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 a 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 does not apply to a suit by the Trustee, a suit by a Holder of a
Note pursuant to Section 6.7 hereof, or a suit by Holders of more than 10% in
principal amount of the then outstanding Notes.
ARTICLE 7
TRUSTEE
SECTION 7.1 DUTIES OF TRUSTEE.
(a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in its exercise, as a prudent person would
exercise or use under the circumstances in the conduct of such person's own
affairs.
(b) Except during the continuance of an Event of Default:
(i) the duties of the Trustee shall be determined solely by
the express provisions of this Indenture and the Trustee need perform
only those duties that are specifically set forth in this Indenture and
no others, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and
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(ii) 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 furnished to the Trustee and conforming to the requirements of
this Indenture.
(c) The Trustee may not be relieved from liabilities for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(i) this paragraph does not limit the effect of paragraph (b)
of this Section;
(ii) the Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer, unless it is proved that
the Trustee was negligent in ascertaining the pertinent facts; and
(iii) 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 6.5 hereof.
(d) 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), and (c) of this Section.
(e) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or incur any liability. The Trustee shall be under no
obligation to exercise any of its rights and powers under this Indenture at the
request of any Holders, unless such Holder shall have offered to the Trustee
security and indemnity satisfactory to it against any loss, liability, claim,
damage or expense.
(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.
SECTION 7.2 RIGHTS OF TRUSTEE.
(a) The Trustee may conclusively rely 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 or an Opinion of Counsel or both. The Trustee shall not be
liable for any action it takes or omits to take in good faith in reliance on
such Officers' Certificate or Opinion of Counsel. The Trustee may consult with
counsel of its selection and the written advice of such counsel or any Opinion
of Counsel shall be full and complete authorization and protection from
liability in respect of any action taken, suffered or omitted by it hereunder in
good faith and in reliance thereon. For purposes of the release of Exchange
Notes pursuant to Section 2(a) of the Escrow Agreement dated as of the Spin-Off
Date among the Company, the Administrative Agent and the Escrow Agent, the
Trustee shall be entitled to rely on the Officers' Certificate delivered by the
Company, dated the Spin-Off Date, pursuant to Section 2(a) of the Escrow
Agreement.
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(c) The Trustee may act through its attorneys and agents and shall not
be responsible for the misconduct or negligence of any agent appointed with due
care.
(d) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the rights or
powers conferred upon it by this Indenture.
(e) Unless otherwise specifically provided in this Indenture, any
demand, request, direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.
(f) The Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders unless such Holders shall have offered to the Trustee
security or indemnity reasonably satisfactory to it against the costs, expenses
and liabilities that might be incurred by it in compliance with such request or
direction.
(g) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture,
note, other evidence of indebtedness or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to
make such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company, personally or by agent or attorney
at the sole cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.
(h) The Trustee shall not be deemed to have notice of any Default or
Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Notes and this Indenture.
(i) The rights, privileges, protections, immunities and benefits given
to the Trustee, including, without limitation, its right to be indemnified, are
extended to, and shall be enforceable by, the Trustee in each of its capacities
hereunder, and to each agent, custodian and other person employed to act
hereunder.
SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE.
The Trustee in its individual or any other capacity may become the
owner or pledgee of Notes and may otherwise deal with the Company or any
Affiliate of the Company with the same rights it would have if it were not
Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for
permission to continue as trustee or resign. Any Agent may do the same with like
rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.
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SECTION 7.4 TRUSTEE'S DISCLAIMER.
The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company's use of the proceeds from the Notes or any money
paid to the Company or upon the Company's direction under any provision of this
Indenture, 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 or recital herein or any statement in the Notes or
any other document in connection with the sale of the Notes or pursuant to this
Indenture other than its certificate of authentication.
SECTION 7.5 NOTICE OF DEFAULTS.
If a Default or Event of Default occurs and is continuing and if it is
actually known to a Responsible Officer of the Trustee, the Trustee shall mail
to Holders of Notes a notice of the Default or Event of Default within 90 days
after it obtains knowledge of such Default or Event of Default. Except in the
case of a Default or Event of Default in payment of principal of, premium, if
any, or interest on any Note, the Trustee may withhold the notice if and so long
as a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes.
SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES.
Within 60 days after each December 15 beginning with the December 15
following the date this Indenture becomes effective pursuant to Section 1.5
hereof, and for so long as Notes remain outstanding, the Trustee shall mail to
the Holders of the Notes a brief report dated as of such reporting date that
complies with TIA ss 313(a) (but if no event described in TIA ss 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted). The Trustee also shall comply with TIA ss 313(b)(2). The
Trustee shall also transmit by mail all reports as required by TIA ss 313(c).
A copy of each report at the time of its mailing to the Holders of
Notes shall be mailed to the Company and filed with the SEC and each stock
exchange on which the Notes are listed in accordance with TIA ss 313(d). The
Company shall promptly notify the Trustee when the Notes are listed on any stock
exchange or delisted therefrom.
SECTION 7.7 COMPENSATION AND INDEMNITY.
The Company shall pay to the Trustee from time to time such
compensation as agreed upon in writing from time to time 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 promptly upon request for all reasonable
disbursements, advances and expenses incurred or made by it in addition to the
reasonable compensation for its services, except any such expense, disbursement
or advance as may arise from its negligence, willful misconduct or bad faith.
Such expenses shall include the reasonable compensation, disbursements and
expenses of the Trustee's agents and counsel. The Trustee shall provide the
Company reasonable notice of any expenditure not in the ordinary course of
business provided the prior approval by the Company of any such expenditure
shall not be a requirement for the making of such expenditure nor for
reimbursement by the Company thereof.
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The Company shall indemnify the Trustee and any predecessor Trustee
against any and all losses, liabilities, claims, damages or expenses (other than
taxes based on the compensation of the Trustee hereunder) incurred by it arising
out of or in connection with the acceptance or administration of its duties
under this Indenture, including the costs and expenses of enforcing this
Indenture against the Company (including this Section 7.7) and defending itself
against any claim (whether asserted by the Company or any Holder or any other
person) or liability in connection with the exercise or performance of any of
its powers or duties hereunder, except to the extent any such loss, liability or
expense may be attributable to its negligence, willful misconduct or bad faith.
The Trustee shall notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company shall not relieve the
Company of its obligations hereunder, except to the extent that the Company is
materially prejudiced thereby. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel
and the Company shall pay the reasonable fees and expenses of such counsel. The
Company need not pay for any settlement made without its consent, which consent
shall not be unreasonably withheld.
The obligations of the Company under this Section 7.7 shall survive the
satisfaction and discharge of this Indenture.
To secure the Company's payment obligations in this Section, the
Trustee shall have a Lien prior to the Notes on all money or property held or
collected by the Trustee, except that held in trust to pay principal and
interest on particular Notes. Such Lien shall survive the satisfaction and
discharge of this Indenture.
When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1(h) hereof occurs, the expenses and the
compensation for the services (including the fees and expenses of its agents and
counsel) are intended to constitute expenses of administration under any
Bankruptcy Law.
The Trustee shall comply with the provisions of TIA ' 313(b)(2) to the
extent applicable.
SECTION 7.8 REPLACEMENT OF TRUSTEE.
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 Trustee may resign in writing at any time and be discharged from
the trust hereby created by so notifying the Company. The Holders of a majority
in principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company in writing. The Company may remove the
Trustee if:
(a) the Trustee fails to comply with Section 7.10 hereof;
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(b) the Trustee is adjudged a bankrupt or an insolvent or an order for
relief is entered with respect to the Trustee under any Bankruptcy Law;
(c) a custodian or public officer takes charge of the Trustee or its
property; or
(d) the Trustee becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company 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 then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.
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 then outstanding Notes
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.
If the Trustee, after written request by any Holder who has been a
Holder for at least six months, fails to comply with Section 7.10, such Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Thereupon, 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. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, PROVIDED all sums owing to the
Trustee hereunder have been paid and subject to the Lien provided for in Section
7.7 hereof. Notwithstanding replacement of the Trustee pursuant to this Section
7.8, the Company's obligations under Section 7.7 hereof shall continue for the
benefit of the retiring Trustee.
SECTION 7.9 SUCCESSOR TRUSTEE BY MERGER, ETC.
If the Trustee consolidates, merges or converts into, or transfers all
or substantially all of its corporate trust business or assets to, another
corporation, the successor corporation without any further act shall be the
successor Trustee, provided that such corporation shall be eligible under TIA '
310(a) and this Article 7.
SECTION 7.10 ELIGIBILITY; DISQUALIFICATION.
There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities and that has a combined capital and surplus of at least $50 million
as set forth in its most recent published annual report of condition.
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This Indenture shall always have a Trustee who satisfies the
requirements of TIA ss 310(a)(1), (2) and (5). The Trustee is subject to TIA
ss 310(b).
SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.
The Trustee is subject to 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 therein.
ARTICLE 8
LEGAL DEFEASANCE AND COVENANT DEFEASANCE
SECTION 8.1 OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE.
The Company may, at its option and at any time, elect to have either
Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon compliance
with the conditions set forth below in this Article 8.
SECTION 8.2 LEGAL DEFEASANCE AND DISCHARGE.
Upon the Company's exercise under Section 8.1 hereof of the option
applicable to this Section 8.2, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.4 hereof, be deemed to have been
discharged from its obligations with respect to all outstanding Notes on the
date the conditions set forth below are satisfied (hereinafter, "LEGAL
DEFEASANCE"). For this purpose, Legal Defeasance means that the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which shall thereafter be deemed to be "outstanding" only for
the purposes of Section 8.5 hereof and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), except for the following provisions which shall survive
until otherwise terminated or discharged hereunder: (i) the rights of Holders of
outstanding Notes to receive payments in respect of the principal of, premium,
if any, and interest and Liquidated Damages, if any, on such Notes when such
payments are due from the trust referred to below; (ii) the Company's
obligations with respect to the Notes concerning issuing temporary Notes,
registration of Notes, mutilated, destroyed, lost or stolen Notes and the
maintenance of an office or agency for payment and money for security payments
held in trust; (iii) the rights, powers, trusts, duties and immunities of the
Trustee, and the Company's obligations in connection therewith; and (iv) this
Article 8. Subject to compliance with this Article 8, the Company may exercise
its option under this Section 8.2 notwithstanding the prior exercise of its
option under Section 8.3 hereof.
SECTION 8.3 COVENANT DEFEASANCE.
Upon the Company's exercise under Section 8.1 hereof of the option
applicable to this Section 8.3, the Company shall, subject to the satisfaction
of the conditions set forth in Section 8.4 hereof, be released from its
obligations under the covenants contained in Sections 4.3, 4.4,
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4.5, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17 and 4.18 and
clause (d) of Section 5.1 hereof with respect to the outstanding Notes on and
after the date the conditions set forth in Section 8.4 are satisfied
(hereinafter, "COVENANT DEFEASANCE"), and the Notes shall thereafter be deemed
not "outstanding" for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed "OUTSTANDING"
for all other purposes hereunder (it being understood that such Notes shall not
be deemed outstanding for accounting purposes). For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, 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 6.1 hereof, but, except as specified above,
the remainder of this Indenture and such Notes shall be unaffected thereby. In
addition, upon the Company's exercise under Section 8.1 hereof of the option
applicable to this Section 8.3 hereof, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, Sections 6.1(d) through 6.1(g)
hereof shall not constitute Events of Default.
SECTION 8.4 CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.
The following shall be the conditions to the application of either
Section 8.2 or 8.3 hereof to the outstanding Notes:
In order to exercise either Legal Defeasance or Covenant Defeasance:
(a) the Company must irrevocably deposit or cause to be
deposited with the Trustee, in trust, for the benefit of the Holders,
cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, in the
opinion of a nationally recognized firm of independent public
accountants, investment bank, appraisal firm or other similar entity
with experience in similar or related matters, to pay the principal of,
premium, if any, and interest and Liquidated Damages, if any, on the
outstanding Notes on the stated maturity or on the applicable
redemption date, as the case may be, and the Company must specify
whether the Notes are being defeased to maturity or to a particular
redemption date;
(b) in the case of Legal Defeasance, the Company shall have
delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee (who may be regular counsel to the
Company or internal counsel of the Company), confirming that:
(A) The Company has received from, or there has been
published by, the Internal Revenue Service a ruling; or
(B) since the Closing 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 confirm that, the Holders of the outstanding Notes will
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not recognize income, gain or loss for federal income tax
purposes as a result of such Legal Defeasance and will be
subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if
such Legal Defeasance had not occurred;
(c) in the case of Covenant Defeasance, the Company shall have
delivered to the Trustee an opinion of counsel in the United States
reasonably acceptable to the Trustee (who may be regular counsel to the
Company or internal counsel of the Company), confirming that the
Holders of the outstanding Notes will not recognize income, gain or
loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if such Covenant Defeasance had not occurred;
(d) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit (other than a Default or Event
of Default resulting from the borrowing of funds to be applied to such
deposit) or insofar as Events of Default from bankruptcy or insolvency
events are concerned, at any time in the period ending on the 91st day
after the date of deposit;
(e) such Legal Defeasance or Covenant Defeasance will not
result in a breach or violation of, or constitute a default under any
material agreement or instrument (other than the Indenture) to which
the Company or any of its Restricted Subsidiaries is a party or by
which the Company or any of its Restricted Subsidiaries is bound;
(f) the Company must have delivered to the Trustee an opinion
of counsel to the effect that after the 91st day following the deposit,
the trust funds will not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally;
(g) the Company must deliver to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders over the other creditors of the
Company with the intent of defeating, hindering, delaying or defrauding
creditors of the Company; and
(h) the Company must deliver to the Trustee an Officers'
Certificate and an opinion of counsel (who may be regular counsel to
the Company or internal counsel of the Company), each stating that all
conditions precedent provided for or relating to the Legal Defeasance
or the Covenant Defeasance have been complied with (other than
conditions which by their nature cannot be satisfied for 90 or 91
days).
Opinions of Counsel required to be delivered under this Section may
have qualifications customary for opinions of the type required and counsel
delivering such Opinions of Counsel may rely on certificates of the Company or
government or other officials customary for opinions of the type required,
including certificates certifying as to matters of fact, including that various
financial covenants have been complied with.
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SECTION 8.5 DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER
MISCELLANEOUS PROVISIONS.
Subject to Section 8.6 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.5, the
"TRUSTEE") pursuant to Section 8.4 hereof in respect of the outstanding Notes
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent), to the
Holders of such Notes of all sums due and to become due thereon in respect of
principal, premium, if any, and interest, but such money need not be segregated
from other funds except to the extent required by law.
The Company agrees to pay and indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against the cash or non-callable
Government Securities deposited pursuant to Section 8.4 hereof or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.
Anything in this Article 8 to the contrary notwithstanding, the Trustee
shall deliver or pay to the Company from time to time upon the request of the
Company any money or non-callable Government Securities held by it as provided
in Section 8.4 hereof which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section
8.4(a) hereof), are in excess of the amount thereof that would then be required
to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.
SECTION 8.6 REPAYMENT TO COMPANY.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company in trust for the payment of the principal of, premium, if any,
Liquidated Damages, if any, or interest on any Note and remaining unclaimed for
two years after such principal, and premium, if any, Liquidated Damages, if any,
or interest has become due and payable shall be paid to the Company on its
request or (if then held by the Company) shall be discharged from such trust;
and the Holder of such Note shall thereafter, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in The New York Times and The
Wall Street Journal (national edition), notice that such money remains unclaimed
and that, after a date specified therein, which shall not be less than 30 days
from the date of such notification or publication, any unclaimed balance of such
money then remaining will be repaid to the Company.
SECTION 8.7 REINSTATEMENT.
If the Trustee or Paying Agent is unable to apply any United States
dollars or noncallable
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Government Securities in accordance with Section 8.2 or 8.3 hereof, as the case
may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the Company's obligations under this Indenture and the Notes shall be revived
and reinstated as though no deposit had occurred pursuant to Section 8.2 or 8.3
hereof until such time as the Trustee or Paying Agent is permitted by such court
or governmental authority to apply all such money in accordance with Section 8.2
or 8.3 hereof, as the case may be; PROVIDED, HOWEVER, that, if the Company makes
any payment of principal of, premium, if any, Liquidated Damages, if any, or
interest on any Note following the reinstatement of its obligations, the Company
shall be subrogated to the rights of the Holders of such Notes to receive such
payment from the money held by the Trustee or Paying Agent.
ARTICLE 9
AMENDMENT, SUPPLEMENT AND WAIVER
SECTION 9.1 WITHOUT CONSENT OF HOLDERS OF NOTES.
Notwithstanding Section 9.2 of this Indenture, the Company and the
Trustee, at any time and from time to time, may amend or supplement this
Indenture or the Notes without the consent of any Holder of a Note:
(a) to cure any ambiguity, omission, defect or inconsistency;
(b) to provide for uncertificated Notes in addition to or in place of
certificated Notes or to alter the provisions of Article 2 hereof (including the
related definitions) in a manner that does not adversely affect any Holders;
(c) to provide for the assumption of the Company's obligations to the
Holders of the Notes in case of a merger, consolidation or sale of all or
substantially all of the Company's assets;
(d) to make any change that would provide any additional rights or
benefits to the Holders of the Notes or that does not adversely affect the legal
rights hereunder of any Holder of the Notes;
(e) to comply with requirements of the SEC in order to effect or
maintain the qualification of this Indenture under the TIA;
(f) to add a Guarantor with respect to the Notes; or
(g) to evidence and provide the acceptance of the appointment of a
successor trustee.
Upon the request of the Company accompanied by a Board Resolution
authorizing the execution of any such amended or supplemental Indenture, and
upon receipt by the Trustee of the documents described in Section 7.2 hereof,
the Trustee shall join with the Company in the execution of any amended or
supplemental Indenture authorized or permitted by the terms of this Indenture
and to make any further appropriate agreements and stipulations that may be
therein
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contained, but the Trustee shall not be obligated to enter into such amended or
supplemental Indenture that affects its own rights, duties or immunities under
this Indenture or otherwise.
SECTION 9.2 WITH CONSENT OF HOLDERS OF NOTES.
Except as provided below in this Section 9.2, the Company and the
Trustee may amend or supplement this Indenture and the Notes may be amended or
supplemented with the consent of the Holders of at least a majority in principal
amount of the Notes then outstanding voting as a single class (including,
without limitation, consents obtained in connection with a purchase of, or
tender offer or exchange offer for the Notes), and subject to Sections 6.4 and
6.7 hereof, any existing default or compliance with any provision of this
Indenture, the Notes or the Guarantees may be waived with the consent of the
Holders of a majority in principal amount of the then outstanding Notes voting
as a single class (including consents obtained in connection with a tender offer
or exchange offer for or purchase of the Notes). Section 2.12 hereof shall
determine which Notes are considered to be Aoutstanding" for purposes of this
Section 9.2.
Upon the request of the Company accompanied by a Board Resolution
authorizing the execution of any such amended or supplemental Indenture, and
upon receipt by the Trustee of evidence satisfactory to the Trustee of the
consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of
the documents described in Section 7.2 hereof, the Trustee shall join with the
Company in the execution of such amended or supplemental Indenture unless such
amended or supplemental Indenture directly affects the Trustee's own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its discretion, but shall not be obligated to, enter into such
amended or supplemental Indenture.
It shall not be necessary for the consent of the Holders of Notes under
this Section 9.2 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.
After an amendment, supplement or waiver under this Section becomes
effective, the Company shall mail to the Holders of Notes 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 amended or supplemental
Indenture or waiver. Subject to Sections 6.4 and 6.7 hereof, the Holders of a
majority in aggregate principal amount of the Notes then outstanding voting as a
single class may waive compliance in a particular instance by the Company with
any provision of this Indenture or the Notes. However, without the consent of
each Holder affected, an amendment or waiver under this Section 9.2 may not
(with respect to any Notes held by a non-consenting Holder):
(a) reduce the principal amount of Notes whose Holders must consent to
an amendment, supplement or waiver;
(b) reduce the principal of or change the fixed maturity of any Note or
alter the dates and premiums with respect to the redemption of the Notes (other
than provisions relating to the covenants described above under Sections 4.10
and 4.13 hereof);
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(c) reduce the rate of or change the time for payment of interest on
any Note;
(d) waive a Default or Event of Default in the payment of principal of
or premium, if any, or interest on the Notes (except a rescission of
acceleration of the Notes by the Holders of at least a majority in aggregate
principal amount of the then outstanding Notes and a waiver of the payment
default that resulted from such acceleration);
(e) make any Note payable in money other than that stated in the Notes;
(f) make any change in the provisions of this Indenture relating to
waivers of past Defaults or the rights of Holders to receive payments of
principal of or premium, if any, or interest on the Notes;
(g) waive a redemption payment with respect to any Note (other than a
payment required by one of the covenants described above under Sections 4.10 and
4.13 hereof);
(h) make any change to the ranking of the Notes that would adversely
affect the noteholders; or
(i) make any change in the foregoing amendment and waiver provisions
which require each Holder's consent.
SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE ACT.
Every amendment or supplement to this Indenture or the Notes shall be
set forth in a amended or supplemental Indenture that complies with the TIA as
then in effect, if required.
SECTION 9.4 REVOCATION AND EFFECT OF CONSENTS.
Until an amendment, supplement or waiver becomes effective, a consent
to it by a Holder of a Note is a continuing consent by the Holder of a Note and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder's Note, even if notation of the consent is not
made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written
notice of revocation before the date the waiver, supplement or amendment becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.
SECTION 9.5 NOTATION ON OR EXCHANGE OF NOTES.
The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. The Company in
exchange for all Notes may issue and the Trustee shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.
Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.
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SECTION 9.6 TRUSTEE TO SIGN AMENDMENTS, ETC.
The Trustee shall sign any amended or supplemental Indenture authorized
pursuant to this Article Nine if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company
may not sign an amendment or supplemental Indenture until the Board of Directors
approves it. In executing any amended or supplemental indenture, the Trustee
shall be entitled to receive and (subject to Section 7.1 hereof) shall be fully
protected in relying upon an Officers' Certificate and an Opinion of Counsel
stating that the execution of such amended or supplemental indenture is
authorized or permitted by this Indenture.
ARTICLE 10
SUBSIDIARY GUARANTEES
SECTION 10.1 GUARANTEE.
Subject to this Article 10, each of the Guarantors hereby, jointly and
severally, unconditionally guarantees to each Holder of a Note authenticated and
delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture, the Notes or
the obligations of the Company hereunder or thereunder, that: (a) the principal
of and interest on the Notes will be promptly paid in full when due, whether at
maturity, by acceleration, redemption or otherwise, and interest on the overdue
principal of and interest on the Notes, if any, if lawful, 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 (b) in case of any extension of time of payment or
renewal of any Notes or any of such other obligations, that 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.
Failing payment when due of any amount so guaranteed or any performance so
guaranteed for whatever reason, the Guarantors shall be jointly and severally
obligated to pay the same immediately. Each Guarantor agrees that this is a
guarantee of payment and not a guarantee of collection.
The Guarantors hereby agree that their obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of the
Notes or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes 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 covenant that this Subsidiary Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and this
Indenture.
If any Holder or the Trustee is required by any court or otherwise to
return to the Company, the Guarantors or any custodian, trustee, liquidator or
other similar official acting in
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relation to either the Company or the Guarantors, any amount paid by either to
the Trustee or such Holder, this Subsidiary Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect.
Each Guarantor agrees that it shall not be entitled to any right of
subrogation in relation to the Holders in respect of any obligations guaranteed
hereby until payment in full of all obligations guaranteed hereby. Each
Guarantor further agrees that, as between the Guarantors, 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 6 hereof
for the purposes of this Subsidiary 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 declaration of
acceleration of such obligations as provided in Article 6 hereof, such
obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantors for the purpose of this Subsidiary Guarantee. The
Guarantors shall have the right to seek contribution from any non-paying
Guarantor so long as the exercise of such right does not impair the rights of
the Holders under the Guarantee.
SECTION 10.2 LIMITATION ON GUARANTOR LIABILITY.
Each Guarantor, and by its acceptance of Notes, each Holder, hereby
confirms that it is the intention of all such parties that the Subsidiary
Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance
for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar federal or state law to the
extent applicable to any Subsidiary Guarantee. To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor will, after giving effect to such maximum
amount and all other contingent and fixed liabilities of such Guarantor that are
relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any
other Guarantor in respect of the obligations of such other Guarantor under this
Article 10, result in the obligations of such Guarantor under its Subsidiary
Guarantee not constituting a fraudulent transfer or conveyance.
SECTION 10.3 EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEE.
To evidence its Subsidiary Guarantee set forth in Section 10.1, each
Guarantor hereby agrees that a notation of such Subsidiary Guarantee
substantially in the form included in Exhibit C shall be endorsed by an Officer
of such Guarantor on each Note authenticated and delivered by the Trustee and
that this Indenture shall be executed on behalf of such Guarantor by its
President, Treasurer or one of its Vice Presidents.
Each Guarantor hereby agrees that its Subsidiary Guarantee set forth in
Section 10.1 shall remain in full force and effect notwithstanding any failure
to endorse on each Note a notation of such Subsidiary Guarantee.
If an Officer whose signature is on this Indenture or on the Subsidiary
Guarantee no longer holds that office at the time the Trustee authenticates the
Note on which a Subsidiary Guarantee is endorsed, the Subsidiary Guarantee shall
be valid nevertheless.
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The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Subsidiary Guarantee set
forth in this Indenture on behalf of the Guarantors.
In the event that the Company creates or acquires any new Subsidiaries
subsequent to the date of this Indenture, if (and only if) required by Section
4.16 hereof the Company shall within 10 days of such creation or acquisition
cause such Subsidiaries to execute supplemental indentures to this Indenture and
Subsidiary Guarantees in accordance with Section 4.16 hereof and this Article
10, to the extent applicable.
SECTION 10.4 GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS.
Except as otherwise provided in this Section 10.4, no Guarantor may
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person whether or not affiliated with such Guarantor
unless:
(a) subject to this Section 10.4, the Person formed by or surviving any
such consolidation or merger (if other than a Guarantor or the Company)
unconditionally assumes all the obligations of such Guarantor, pursuant to a
supplemental indenture in form and substance reasonably satisfactory to the
Trustee, under the Notes, the Indenture and the Subsidiary Guarantee on the
terms set forth herein or therein; and
(b) immediately after giving effect to such transaction, no Default or
Event of Default exists.
In case of any such consolidation, merger, sale or conveyance and upon
the assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the
Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of this Indenture to be
performed by the Guarantor, such successor Person shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor Person thereupon may cause to be signed
any or all of the Subsidiary Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee. All the Subsidiary Guarantees so issued shall in
all respects have the same legal rank and benefit under this Indenture as the
Subsidiary Guarantees theretofore and thereafter issued in accordance with the
terms of this Indenture as though all of such Subsidiary Guarantees had been
issued at the date of the execution hereof.
Except as set forth in Articles 4 and 5 hereof, and notwithstanding
clauses (a) and (b) above, nothing contained in this Indenture or in any of the
Notes shall prevent any consolidation or merger of a Guarantor with or into the
Company 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.
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SECTION 10.5 RELEASES FOLLOWING SALE OF ASSETS.
In the event of a sale or other disposition of all of the assets of any
Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all of the capital stock of any Guarantor, in each case to a
Person that is not (either before or after giving effect to such transactions) a
Subsidiary of the Company, then such Guarantor (in the event of a sale or other
disposition, by way of merger, consolidation or otherwise, of all of the capital
stock of such Guarantor) or the corporation acquiring the property (in the event
of a sale or other disposition of all or substantially all of the assets of such
Guarantor) will be released and relieved of any obligations under its Subsidiary
Guarantee; PROVIDED that the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of this Indenture,
including without limitation Section 4.10 hereof. Upon delivery by the Company
to the Trustee of an Officers' Certificate and an Opinion of Counsel to the
effect that such sale or other disposition was made by the Company in accordance
with the provisions of this Indenture, including without limitation Section 4.10
hereof, the Trustee shall execute any documents reasonably required in order to
evidence the release of any Guarantor from its obligations under its Subsidiary
Guarantee.
Any Guarantor not released from its obligations under its Subsidiary
Guarantee shall remain liable for the full amount of principal of and interest
on the Notes and for the other obligations of any Guarantor under this Indenture
as provided in this Article 10.
ARTICLE 11
MISCELLANEOUS
SECTION 11.1 INDENTURE ACT CONTROLS.
If any provision of this Indenture limits, qualifies or conflicts with
the duties imposed by TIA ss 318(c), the imposed duties shall control.
SECTION 11.2 NOTICES.
Any notice or communication by the Company or the Trustee to the others
is duly given if in writing and delivered in Person or mailed by first class
mail, postage prepaid, telecopier (with the original to follow by mail) or
overnight air courier guaranteeing next day delivery, to the others' address:
If to the Company:
ANC Rental Corporation
000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxxxxxxx, Xxxxxxx 00000
Attention: Chief Financial Officer
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With a copy to:
Fried, Frank, Harris, Xxxxxxx & Xxxxxxxx
Xxx Xxx Xxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Xxxxxxx Xxxx Jacob, Esq.
If to the Trustee:
The Bank of New York
000 Xxxxxxx Xxxxxx, Xxxxx 00 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Telecopier No.: (000) 000-0000
Attention: Corporate Trust Administration
The Company or the Trustee, by notice to the others may designate
additional or different addresses for subsequent notices or communications.
All notices and communications (other than those sent to Holders) shall
be deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.
Any notice or communication to a Holder shall be mailed by first class
mail, certified or registered, return receipt requested, or by overnight air
courier guaranteeing next day delivery to its address shown on the register kept
by the Registrar. Any notice or communication shall also be so mailed to any
Person described in TIA ss 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it shall not affect
its sufficiency with respect to other Holders.
If a notice or communication is mailed in the manner provided above
within the time prescribed, it is duly given, whether or not the addressee
receives it.
If the Company mails a notice or communication to Holders, it shall
mail a copy to the Trustee and each Agent at the same time.
Where this Indenture provides for notice in any manner, such notice may
be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in
reliance upon such waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Trustee shall
constitute a sufficient notification for ever purpose hereunder.
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Where this Indenture provides for Notice of any event to a Holder of a
Global Note, such notice shall be sufficiently given if given to the Depositary
for such Note (or its designee), pursuant to its Applicable Procedures, not
later than the latest date (if any), and not earlier than the earliest date (if
any) prescribed for the giving of such notice.
SECTION 11.3 COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES.
Holders may communicate pursuant to TIA ss 312(b) with other Holders
with respect to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA
ss 312(c).
SECTION 11.4 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, if
requested by the Trustee:
(a) an Officers' Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements set forth in
Section 11.5 hereof) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the
proposed action have been satisfied; and
(b) an Opinion of Counsel in form and substance reasonably satisfactory
to the Trustee (which shall include the statements set forth in Section 11.5
hereof; except that, in the case of any such application or request as to which
the furnishing of such documents, certificates and/or opinions is specifically
required by any provision of this Indenture relating to such particular request,
no additional certificates or opinions shall be required) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been
satisfied.
Opinions of Counsel required to be delivered under this Section may
have qualifications customary for opinions of the type required and counsel
delivering such Opinions of Counsel may rely on certificates of the Company or
government or other officials customary for opinions of the type required,
including certificates certifying as to matters of fact, including that various
financial covenants have been complied with.
SECTION 11.5 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 a certificate provided
pursuant to TIA ss 314(a)(4)) shall comply with the provisions of TIA ss 314(e)
and shall include:
(a) a statement that the Person making such certificate or opinion has
read such covenant or condition;
(b) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
(c) a statement that, in the opinion of such Person, he or she has made
such examination
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or investigation as is necessary to enable him to express an informed opinion as
to whether or not such covenant or condition has been satisfied; and
(d) a statement as to whether or not, in the opinion of such Person,
such condition or covenant has been satisfied.
SECTION 11.6 RULES BY TRUSTEE AND AGENTS.
The Trustee may make reasonable rules for action by or at a meeting of
Holders subject to the consent of the Company. The Registrar or Paying Agent may
make reasonable rules and set reasonable requirements for its functions.
SECTION 11.7 NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND
STOCKHOLDERS.
No past, present or future director, officer, employee, member,
manager, incorporator, control person or stockholder of the Company or any
Guarantor, as such, shall have any liability for any obligations of the Company
under the Notes, this Indenture or the Senior Loan Agreement or any related
documents or for any claim based on, in respect of, or by reason of, such
obligations or their creation. Each Holder by accepting a Note waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.
SECTION 11.8 GOVERNING LAW.
THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE AND THE NOTES WITHOUT GIVING AFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
SECTION 11.9 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.
This Indenture may not be used to interpret any other indenture, loan
or debt agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.
SECTION 11.10 SUCCESSORS.
All agreements of the Company in this Indenture and the Notes shall
bind its successors. All agreements of the Trustee in this Indenture shall bind
its successors.
SECTION 11.11 SEVERABILITY.
In case any provision in this Indenture or in the Notes 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.
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SECTION 11.12 COUNTERPART ORIGINALS.
The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.
SECTION 11.13 TABLE OF CONTENTS, HEADINGS, ETC.
The Table of Contents, Cross-Reference Table and Headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part of this Indenture and shall in
no way modify or restrict any of the terms or provisions hereof.
SECTION 11.14 ACCOUNTING CHANGES.
In the event that any "Accounting Change" (as defined below) shall
occur and such change results in a change in the method of calculation of
financial covenants, standards or terms in this Indenture, then the Company may,
by notice to the Trustee, request that such provisions of this Indenture be
interpreted so as to equitably reflect such Accounting Change with the desired
result that the criteria for evaluating the Company's financial condition shall
be the same after such Accounting Change as if such Accounting Change had not
been made. Until such time as such notice shall have been delivered by the
Company, all financial covenants, standards and terms in this Indenture shall
continue to be calculated or construed as if such Accounting Change had not
occurred. "Accounting Change" refers to any change in accounting principles
required by the promulgation of any rule, regulation, pronouncement or opinion
by the Financial Accounting Standards Board of the American Institute of
Certified Public Accountants, or, if applicable, the SEC.
[Signatures on following page]
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SIGNATURES
Dated as of June 30, 2000
ANC RENTAL CORPORATION
By: /s/ Xxxxxx X. Xxxxxx
-----------------------------------------
Xxxxxx X. Xxxxxx
Vice President and Treasurer
ALAMO RENT-A-CAR (CANADA), INC.
ALAMO RENT-A-CAR, LLC
LIABILITY MANAGEMENT COMPANIES
HOLDING, INC.
NATIONAL CAR RENTAL LICENSING, INC.
NATIONAL CAR RENTAL SYSTEM, INC.
REPUBLIC XXX XXXXXX PARTNER, INC.
REPUBLIC INDUSTRIES AUTOMOTIVE
RENTAL GROUP (BELGIUM) INC.
SPIRIT RENT-A-CAR, INC.
By: /s/ Xxxxxx X. Xxxxxx
----------------------------------------
Xxxxxx X. Xxxxxx
Vice President and Treasurer
ALAMO RENT-A-CAR MANAGEMENT, LP
By: ARC-GP, Inc., its general partner
ANC COLLECTOR CORPORATION
ANC FINANCIAL, LP
By: ANC Financial GP Corporation, its general
partner
ARC-GP, INC.
ARC-TM, INC.
NCR AFFILIATE SERVICER, INC.
NCRAS MANAGEMENT, LP
By: NCRAS-GP, Inc., its general partner
NCRAS-GP, INC.
SRAC MANAGEMENT, LP
By: SRAC-GP, Inc., its general partner
SRAC-GP, INC.
SRAC-TM, INC.
By: /s/ O. Xxxxx Xxxxx, XX
----------------------------------------
O. Xxxxx Xxxxx, XX
Vice President and Assistant Secretary
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THE BANK OF NEW YORK, as Trustee
By: /s/ Xxxxxxx Xxx
--------------------------------------
Name: Xxxxxxx Xxx
Title: Vice President
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EXHIBIT A
[FORM OF FACE OF NOTE]
[LEGENDS, IF APPLICABLE]1 2 3
--------
1. (Only to be printed on Global Notes)
"THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES
EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED
PURSUANT TO SECTION 2.7 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED
IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS
GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION
2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY."
2. (Only to be printed on Regulation S Temporary Global Notes)
"THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE
CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS
SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE
BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED
TO RECEIVE PAYMENT OF INTEREST HEREON."
3. (Only to be printed on Restricted Notes)
"THIS NOTE HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD,
PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR THE
ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE FOLLOWING
SENTENCE.
BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN RULE
144A UNDER THE SECURITIES ACT) (A "QIB"), (B) IT IS NOT A U.S. PERSON, IS NOT
ACQUIRING THIS NOTE FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON AND IS ACQUIRING
THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE
SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL "ACCREDITED INVESTOR" (AS
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CUSIP:
No. $
___ % Senior Note Due 2007
ANC RENTAL CORPORATION
Promises to pay to _________, or registered
assigns, the principal sum of Dollars on
[May __], 2007.
Interest Payment Dates: March 31, June 30,
September 30, December 31
--------------------------------------------------------------------------------
DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES
ACT) (AN "IAI"), (2) AGREES THAT IT WILL NOT, WITHIN THE TIME PERIOD REFERRED TO
UNDER RULE 144(k) (TAKING INTO ACCOUNT THE PROVISIONS OF RULE 144(d) UNDER THE
SECURITIES ACT, IF APPLICABLE) UNDER THE SECURITIES ACT AS IN EFFECT ON THE DATE
OF THE TRANSFER OF THIS NOTE, RESELL OR OTHERWISE TRANSFER THIS NOTE EXCEPT (A)
TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) TO A PERSON WHOM THE HOLDER
REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT
OF A QIB IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (D) PURSUANT TO THE EXEMPTION FROM REGISTRATION PROVIDED BY RULE
144 UNDER THE SECURITIES ACT (IF AVAILABLE), (E) TO AN IAI THAT, PRIOR TO SUCH
TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE REGISTRATION OF TRANSFER OF THIS
NOTE (THE FORM OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE) OR (F) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH
CASE, IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, AND (3) AGREES THAT
IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS USED HEREIN,
THE TERMS "OFFSHORE TRANSACTION," "UNITED STATES" AND "U.S. PERSON" HAVE THE
MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE
INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY
TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING RESTRICTIONS."
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Record Dates: March 15, June 15,
September 15, December 15
Additional provisions of this Note are set forth on
the other side of this Note.
Dated:
ANC RENTAL CORPORATION
by__________________________________
by__________________________________
TRUSTEE'S CERTIFICATE OF
AUTHENTICATION
Dated: ____________
THE BANK OF NEW YORK
as Trustee, certifies that this is one of the
Notes referred to in the Indenture.
by____________________________
Authorized Signatory
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[FORM OF REVERSE SIDE OF NOTE]
__% Senior Note Due 2007
1. INTEREST
The Company promises to pay interest on the unpaid principal
of this Note at __% per annum in accordance with the terms of Section 2.3 of the
indenture described below.
The Company will pay interest on each Interest Payment Date.
"Interest Payment Date" shall mean each March 31, June 30, September 30 and
December 31 to occur after the Loans are made and the Final Maturity Date.
Interest will be computed on the basis of a 360-day year for
the actual days elapsed. The Company shall pay interest on overdue principal at
the rate borne by the Notes plus 2% per annum, and they shall pay interest on
overdue installments of interest at the same rate to the extent lawful.
2. METHOD OF PAYMENT
The Company will pay interest on the Note (except defaulted
interest) and Liquidated Damages, if any, to the Persons who are registered
Holders at the close of business on the March 15, June 15, September 15 and
December 15, as applicable, next preceding the Interest Payment Date even if
Notes are canceled after the record date and on or before the Interest Payment
Date. The Notes will be payable as to principal, premium and Liquidated Damages,
if any, and interest at the office or agency of the Company maintained for such
purpose within the City and State of New York, or, at the option of the Company,
payment of interest and Liquidated Damages, if any, may be made by check mailed
to the Holders at their addresses set forth in the register of Holders, and
provided that all payments of $1,000 or more principal, premium, if any,
interest and Liquidated Damages, if any, with respect to Notes the Holders of
which have given wire transfer instructions to the Company at least ten Business
Days prior to the applicable payment date will be required to be made by wire
transfer of immediately available funds to the accounts specified by the Holders
thereof. Such payment shall be in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and
private debts subject to the right of the Company to pay all or any part of the
PIK Interest Amount in Subsequent Exchange Notes.
3. PAYING AGENT AND REGISTRAR
Initially, The Bank of New York, a New York banking
corporation ("Trustee"), will act as Paying Agent and Registrar. The Company may
appoint and change any
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Paying Agent, Registrar or co-registrar without notice. The Company or any of
their Restricted Subsidiaries may act as Paying Agent, Registrar or
co-registrar.
4. INDENTURE
This is one of the Senior Notes issued by the Company under an
Indenture dated as of June __, 2000 ("Indenture"), among the Company, the
Guarantors and the Trustee. The terms of this Note 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.C. ss 77aaa-77bbbb) as in effect on the date of
the Indenture (the "Act"). Terms defined in the Indenture and not defined herein
have the meanings ascribed thereto in the Indenture. The Notes are subject to
all such terms, and Holders are referred to the Indenture and the Act for a
statement of those terms.
The Notes are general unsecured obligations of the Company.
The Indenture imposes certain limitations on the incurrence of Indebtedness by
the Company and certain of their Subsidiaries, investments, the payment of
dividends and other distributions and acquisitions or retirements of the Capital
Stock of the Company and certain of their Subsidiaries, the sale or transfer of
assets and Subsidiary stock, transactions with Affiliates, and the ability of
the Company to merge with or into or sell all or substantially all of their
assets to another entity. In addition, the Indenture limits the ability of the
Company and the Subsidiaries to restrict distributions and dividends from
Subsidiaries and requires the Company, under certain circumstances, to offer to
purchase Notes. The limitations are subject to a number of important
qualifications and exceptions.
5. OPTIONAL REDEMPTION
The Company may redeem the Notes in whole at any time or in
part from time to time at a redemption price equal to the sum of (A) the
principal amount of the Note; (B) accrued interest and Liquidated Damages, if
any, on the Note; and (C) a premium equal to the Redemption Premium.
6. 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 whose Notes are to
be redeemed at its registered address. Notes in denominations larger than $1,000
may be redeemed in part but only in whole multiples of $1,000, unless all of the
Notes held by a Holder are to be redeemed. On and after the redemption date
interest ceases to accrue on Notes or portions thereof called for redemption.
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7. MANDATORY REDEMPTION
Except as set forth in paragraph 8 below, the Company shall
not be required to make mandatory redemption or sinking fund payments with
respect to the Notes.
8. REPURCHASE AT OPTION OF HOLDER
(a) Upon the occurrence of a Change of Control, each Holder
will have the right to require the Company to make an offer (a "Change of
Control Offer") to repurchase all or any part of such Holder's Notes at an offer
price in cash equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest and Liquidated Damages thereon, if any, to the date
of repurchase (the "Change of Control Payment"). Within 30 days following any
Change of Control, the Company shall mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control and offering
to repurchase Notes on the date specified in such notice, which date shall be no
earlier than 30 days and no later than 60 days from the date such notice is
mailed (the "Change of Control Payment Date"), pursuant to the procedures
required by the Indenture and described in such notice.
(b) If the Company or a Restricted Subsidiary consummates any
Asset Sale, within five days of each date on which the aggregate amount of
Excess Proceeds exceeds $10.0 million, the Company shall commence an offer to
all Holders of Notes pursuant to Section 3.7 of the Indenture to purchase or
redeem with the proceeds of sales of assets (an "Asset Sale Offer") the maximum
principal amount of Notes and such that may be purchased out of the proceeds, at
an offer price in cash in an amount equal to 100% of the principal amount
thereof plus accrued and unpaid interest and Liquidated Damages thereon, if any,
to the date of repurchase, in accordance with the procedures set forth in the
Indenture. To the extent that the aggregate amount of Notes tendered pursuant to
an Asset Sale Offer is less than the Excess Proceeds, the Company (or such
Subsidiary) may use such deficiency for general corporate purposes. If the
aggregate principal amount of Notes surrendered by Holders thereof exceeds the
amount of Excess Proceeds, the Trustee shall select the Notes to be purchased on
a PRO RATA basis. Holders of Notes that are the subject of an offer to purchase
will receive an Asset Sale Offer from the Company prior to any related purchase
date and may elect to have such Notes purchased by completing the form entitled
"Option of Holder to Elect Purchase" on the reverse of the Notes.
9. DENOMINATIONS; TRANSFER; EXCHANGE
The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The
Registrar and the Trustee may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and the Company may require a
Holder to pay any taxes and fees required by law or permitted by the Indenture.
The Company need not exchange or register the transfer of any Note or portion of
a Note selected for redemption, except for the unredeemed portion of any Note
being redeemed in part. Also, the Company need not exchange or register the
transfer of any Notes for a period of
X-0
000
00 days before a selection of Notes to be redeemed or during the period between
a record date and the next succeeding Interest Payment Date.
10. PERSONS DEEMED OWNERS
The registered Holder of a Note may be treated as its owner
for all purposes.
11. DISCHARGE AND DEFEASANCE
Subject to certain conditions, the Company at any time may
terminate some or all of its obligations under the Notes and the Indenture if
the Company deposits with the Trustee money or U.S. Government Obligations for
the payment of principal and interest on the Notes to redemption or maturity, as
the case may be.
12. AMENDMENT, WAIVER
Subject to certain exceptions, the Indenture or the Notes may
be amended or supplemented with the consent of the Holders of at least a
majority in principal amount of the then outstanding Notes voting as a single
class, and any existing default or compliance with any provision of the
Indenture or the Notes may be waived with the consent of the Holders of a
majority in principal amount of the then outstanding Notes voting as a single
class. Without the consent of any Holder of a Note, the Indenture or the Notes
may be amended or supplemented to, among other things, cure any ambiguity,
omission, defect or inconsistency, to provide for uncertificated Notes in
addition to or in place of certificated Notes, to provide for the assumption of
the Company's obligations to Holders of the Notes in case of a merger or
consolidation, to add additional guarantees with respect to the Notes, to make
any change that would provide any additional rights or benefits to the Holders
of the Notes or that does not adversely affect the legal rights under the
Indenture of any such Holder, or to comply with the requirements of the SEC in
order to effect or maintain the qualification of the Indenture under the Trust
Indenture Act, as further described in Section 9.1 of the Indenture.
13. DEFAULTS AND REMEDIES
Under the Indenture, Events of Default include: (i) default
for 30 days in the payment when due of interest on, or Liquidated Damages, if
applicable, with respect to, the Notes; (ii) default in payment when due of the
principal of or premium, if any, when due at its Stated Maturity, upon optional
redemption, upon required repurchase, upon declaration or otherwise; (iii)
failure by the Company or any of its Restricted Subsidiaries to comply with the
provisions described under Section 5.1 of the Indenture; (iv) failure by the
Company or any of its Restricted Subsidiaries for 45 days after notice to comply
with the provisions described under Section 4.10 or Section 4.13 of the
Indenture, in each case, other than with respect to a failure to purchase Notes
that will constitute an Event of Default under clause (ii) above; (v) failure by
the Company or any of its Restricted Subsidiaries for 60 days to comply with any
of its other agreements in the Indenture or the Notes after written notice to
the Company by the Trustee or to
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the Company and the Trustee by the Holders of at least 25% in principal amount
of the Notes then outstanding voting as a single class; (vi) certain payment
defaults or accelerations of other Indebtedness of the Company if the amount
unpaid or accelerated exceeds $25,000,000; (vii) certain judgments or decrees
for payment of money in excess of $25,000,000; (viii) certain events of
bankruptcy or insolvency with respect to the Company and its Significant
Subsidiaries, and (ix) except as permitted by this Indenture, any Subsidiary
Guarantee shall be held in any judicial proceeding to be unenforceable or
invalid or shall cease for any reason to be in full force and effect or any
Guarantor, or any Person acting on behalf of any Guarantor, shall deny or
disaffirm its obligations under its Subsidiary Guarantee. If an Event of Default
(other than certain events of bankruptcy or insolvency with respect to the
Company) occurs and is continuing, the Trustee or the Holders holding at least
25% in principal amount of the Notes, may declare all of the Notes to be due and
payable immediately. Certain events of bankruptcy or insolvency are Events of
Default which will result in the Notes being due and payable immediately upon
the occurrence of such Events of Default.
Holders may not enforce the Indenture or the Notes except as
provided in the Indenture.
14. TRUSTEE DEALINGS WITH THE COMPANY
Subject to certain limitations imposed by the Act, the Trustee
under the Indenture, in its individual or any other capacity, may become the
owner or pledgee of Notes and may otherwise deal with the Company or its
Affiliates with the same rights it would have if it were not Trustee.
15. NO RECOURSE AGAINST OTHERS
A director, officer, employee, member, manager, incorporator
or stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Notes or the Indenture or any related
document for any claim based on, in respect of or by reason of such obligations
or their creation. By accepting a Note, each Holder shall waive and release all
and all such liability. The waiver and release shall be part of the
consideration for the issue of the Notes.
16. AUTHENTICATION
This Note shall not be valid until an authorized signatory of
the Trustee (or an authenticating agent) manually signs the certificate of
authentication on the other side of this Note.
X-0
000
00. ABBREVIATIONS
Customary abbreviations may be used in the name of a Holder or
an assignee, such as TEN COM (=tenants in common), TEN ENT (=tenants by the
entireties), JT TEN (=joint tenants with rights of survivorship and not as
tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to Minors
Act).
18. CUSIP NUMBERS
Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures the Company may use CUSIP numbers in
issuing the Notes and, if so, the Trustee has agreed to use CUSIP 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 UPON WRITTEN REQUEST
AND WITHOUT CHARGE TO THE HOLDER A COPY OF THE INDENTURE. REQUESTS MAY BE MADE
TO:
ATTENTION OF: ANC RENTAL CORPORATION
000 XXXXX XXXXXXX XXXXXX
XXXX XXXXXXXXXX, XXXXXXX 00000
ATTENTION: SECRETARY
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ASSIGNMENT FORM
To assign this Note, fill in the form below:
(I) or (we) assign and transfer this Note to:___________________________________
(Insert assignee's legal name)
________________________________________________________________________________
(Insert assignee's soc. sec. or tax I.D. no.)
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type assignee's name, address and zip code)
and irrevocably appoint_________________________________________________________
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.
Date:____________________________
Your Signature:_____________________________________________
(Sign exactly as your name appears on the face of this Note)
Signature Guarantee*:____________________________
* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).
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OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Note purchased by the Company
pursuant to Section 4.10 or 4.13 of the Indenture, check the appropriate box
below:
[ ] Section 4.10
[ ] Section 4.13
If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.10 or Section 4.13 of the Indenture, state the
amount you elect to have purchased:
$____________________
Date:____________________________
Your Signature:_____________________________________________
(Sign exactly as your name appears on the face of this Note)
Tax Identification No.:_____________________________________
Signature Guarantee*:__________________________
* Participant in a recognized Signature Guarantee Medallion Program.
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SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE*
The following exchanges of a part of this Global Note for an interest
in another Global Note or for a Definitive Note, or exchanges of a part of
another Global Note or Definitive Note for an interest in this Global Note, have
been made:
Principal Amount Signature of
Amount of decrease in Amount of increase in of authorized signatory
Principal Amount Principal Amount this Global Note of
of of following such decrease Trustee or Note
Date of Exchange this Global Note this Global Note (or increase) Custodian
---------------- ---------------------- --------------------- ----------------------- --------------------
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EXHIBIT B
FORM OF CERTIFICATE OF TRANSFER
ANC Rental Corporation
000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxxxxxxx, Xxxxxxx 00000
Attention: Chief Financial Officer
The Bank of New York
000 Xxxxxxx Xxxxxx, Xxxxx 00 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust Administration
Re: Senior Notes due 2007
Reference is hereby made to the Indenture, dated as of [May __],
2000 (the "INDENTURE"), among ANC Rental Corporation, a Delaware corporation
(the "Company"), the Guarantors and The Bank of New York, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.
___________________, (the "TRANSFEROR") owns and proposes to
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in
the principal amount of $___________ in such Note[s] or interests (the
"TRANSFER"), to __________________________ (the "TRANSFEREE"), as further
specified in Annex A hereto. In connection with the Transfer, the Transferor
hereby certifies that:
[CHECK ALL THAT APPLY]
1. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE 144A GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO RULE 144A. The
Transfer is being effected pursuant to and in accordance with Rule 144A under
the United States Securities Act of 1933, as amended (the ASecurities Act"),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect to
which such Person exercises sole investment discretion, and such Person and each
such account is a Aqualified institutional buyer" within the meaning of Rule
144A in a transaction meeting the requirements of Rule 144A and such Transfer is
in compliance with any applicable blue sky securities laws of any state of the
United States. Upon consummation of the proposed Transfer in accordance with the
terms of the
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Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the 144A Global Note and/or the Definitive Note and in the
Indenture and the Securities Act.
2. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN THE TEMPORARY REGULATION S GLOBAL NOTE, THE REGULATION S GLOBAL NOTE
OR A DEFINITIVE NOTE PURSUANT TO REGULATION S. The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act
and, accordingly, the Transferor hereby further certifies that (i) the Transfer
is not being made to a person in the United States and (x) at the time the buy
order was originated, the Transferee was outside the United States or such
Transferor and any Person acting on its behalf reasonably believed and believes
that the Transferee was outside the United States or (y) the transaction was
executed in, on or through the facilities of a designated offshore securities
market and neither such Transferor nor any Person acting on its behalf knows
that the transaction was prearranged with a buyer in the United States, (ii) no
directed selling efforts have been made in contravention of the requirements of
Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the
transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being
made prior to the expiration of the Restricted Period, the transfer is not being
made to a U.S. Person or for the account or benefit of a U.S. Person. Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on Transfer enumerated in the Private Placement
Legend printed on the Regulation S Global Note, the Temporary Regulation S
Global Note and/or the Definitive Note and in the Indenture and the Securities
Act.
3. [ ] CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A
BENEFICIAL INTEREST IN THE IAI GLOBAL NOTE OR A DEFINITIVE NOTE PURSUANT TO ANY
PROVISION OF THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The
Transfer is being effected in compliance with the transfer restrictions
applicable to beneficial interests in Restricted Global Notes and Restricted
Definitive Notes and pursuant to and in accordance with the Securities Act and
any applicable blue sky securities laws of any state of the United States, and
accordingly the Transferor hereby further certifies that (check one):
(a) [ ] such Transfer is being effected pursuant to and in
accordance with Rule 144 under the Securities Act;
or
(b) [ ] such Transfer is being effected to the Company or a
subsidiary thereof;
or
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(c) [ ] such Transfer is being effected pursuant to an effective
registration statement under the Securities Act and in compliance with the
prospectus delivery requirements of the Securities Act;
or
(d) [ ] such Transfer is being effected to an Institutional
Accredited Investor and pursuant to an exemption from the registration
requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904,
and the Transferor hereby further certifies that it has not engaged in any
general solicitation within the meaning of Regulation D under the Securities Act
and the Transfer complies with the transfer restrictions applicable to
beneficial interests in a Restricted Global Note or Restricted Definitive Notes
and the requirements of the exemption claimed, which certification is supported
by (1) a certificate executed by the Transferee in the form of Exhibit D to the
Indenture and (2) if such Transfer is in respect of a principal amount of Notes
at the time of transfer of less than $250,000, an Opinion of Counsel provided by
the Transferor or the Transferee (a copy of which the Transferor has attached to
this certification), to the effect that such Transfer is in compliance with the
Securities Act. Upon consummation of the proposed transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the IAI Global Note and/or the Definitive Notes and
in the Indenture and the Securities Act.
4. [ ] CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL
INTEREST IN AN UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED DEFINITIVE NOTE.
(a) [ ] CHECK IF TRANSFER IS PURSUANT TO RULE 144. (i) The
Transfer is being effected pursuant to and in accordance with Rule 144 under the
Securities Act and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the United
States and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.
(b) [ ] CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and in compliance with the transfer restrictions
contained in the Indenture and any applicable blue sky securities laws of any
state of the United States and (ii) the restrictions on transfer contained in
the Indenture and the Private Placement Legend are not required in order to
maintain compliance with the Securities Act. Upon consummation of the proposed
Transfer in accordance with the terms of the Indenture, the transferred
beneficial interest or Definitive Note will no longer be
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subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the Restricted Global Notes, on Restricted Definitive Notes
and in the Indenture.
(c) [ ] CHECK IF TRANSFER IS PURSUANT TO OTHER EXEMPTION. (i) The
Transfer is being effected pursuant to and in compliance with an exemption from
the registration requirements of the Securities Act other than Rule 144, Rule
903 or Rule 904 and in compliance with the transfer restrictions contained in
the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes or Restricted Definitive Notes and in the Indenture.
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company.
________________________________________
[Insert Name of Transferor]
By:
------------------------------------
Name:
Title:
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ANNEX A TO CERTIFICATE OF TRANSFER
1. The Transferor owns and proposes to transfer the following:
[CHECK ONE OF (a) OR (b)]
(a) [ ] a beneficial interest in the:
(1) [ ] 144A Global Note (CUSIP ), or
-----------------------
(2) [ ] Regulation S Global Note (CUSIP ), or
-----------------
(3) [ ] IAI Global Note (CUSIP ); or
------------------------
(b) [ ] a Restricted Definitive Note.
2. After the Transfer the Transferee will hold:
[CHECK ONE]
(a) [ ] a beneficial interest in the:
(1) [ ] 144A Global Note (CUSIP ), or
------------------------
(2) [ ] Regulation S Global Note (CUSIP ), or
----------------
(3) [ ] IAI Global Note (CUSIP ); or
------------------------
(4) [ ] Unrestricted Global Note (CUSIP ); or
----------------
(b) [ ] a Restricted Definitive Note; or
(c) [ ] an Unrestricted Definitive Note,
in accordance with the terms of the Indenture.
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EXHIBIT C
FORM OF CERTIFICATE OF EXCHANGE
ANC Rental Corporation
000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxxxxxxx, Xxxxxxx 00000
Attention: Chief Financial Officer
The Bank of New York
000 Xxxxxxx Xxxxxx, Xxxxx 00 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust Administration
Re: Senior Notes due 2007
Reference is hereby made to the Indenture, dated as of [May __], 2000
(the "INDENTURE"), among ANC Rental Corporation (the "COMPANY"), the Guarantors
and The Bank of New York, as trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.
__________________________, (the "OWNER") owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $____________ in such Note[s] or interests (the "EXCHANGE"). In
connection with the Exchange, the Owner hereby certifies that:
1. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN A RESTRICTED GLOBAL NOTE FOR UNRESTRICTED DEFINITIVE NOTES OR BENEFICIAL
INTERESTS IN AN UNRESTRICTED GLOBAL NOTE
(a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In
connection with the Exchange of the Owner's beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest is
being acquired for the Owner's own account without transfer, (ii) such Exchange
has been effected in compliance with the transfer restrictions applicable to the
Global Notes and pursuant to and in accordance with the United States Securities
Act of 1933, as amended (the "SECURITIES ACT"), (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.
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(b) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO UNRESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for an
Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Definitive Note is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.
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(c) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with the
Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an
Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner's own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to Restricted Definitive Notes and pursuant to and in accordance with
the Securities Act, (iii) the restrictions on transfer contained in the
Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any state
of the United States.
(d) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
UNRESTRICTED DEFINITIVE NOTE. In connection with the Owner's Exchange of a
Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby
certifies (i) the Unrestricted Definitive Note is being acquired for the Owner's
own account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions on
transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Unrestricted Definitive Note is being acquired in compliance with any applicable
blue sky securities laws of any state of the United States.
2. EXCHANGE OF RESTRICTED DEFINITIVE NOTES OR BENEFICIAL INTERESTS
IN RESTRICTED GLOBAL NOTES FOR RESTRICTED DEFINITIVE NOTES OR BENEFICIAL
INTERESTS IN RESTRICTED GLOBAL NOTES
(a) [ ] CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A
RESTRICTED GLOBAL NOTE TO RESTRICTED DEFINITIVE NOTE. In connection with the
Exchange of the Owner's beneficial interest in a Restricted Global Note for a
Restricted Definitive Note with an equal principal amount, the Owner hereby
certifies that the Restricted Definitive Note is being acquired for the Owner's
own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note
issued will continue to be subject to the restrictions on transfer enumerated in
the Private Placement Legend printed on the Restricted Definitive Note and in
the Indenture and the Securities Act.
(b) [ ] CHECK IF EXCHANGE IS FROM RESTRICTED DEFINITIVE NOTE TO
BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE. In connection with the Exchange
of the Owner's Restricted Definitive Note for a beneficial interest in the
[CHECK ONE] G 144A Global Note, G Regulation S Global Note, G IAI Global Note
with an equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner's own account without transfer and (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to the Restricted Global Notes and pursuant to and in accordance with
the Securities Act, and in compliance with any applicable blue sky securities
laws of any state of the United States. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the
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beneficial interest issued will be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the relevant Restricted
Global Note and in the Indenture and the Securities Act.
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company.
___________________________________
[Insert Name of Transferor]
By:
-------------------------------
Name:
Title:
Dated: ____________________________________
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EXHIBIT D
FORM OF CERTIFICATE FROM
ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR
ANC Rental Corporation
000 Xxxxx Xxxxxxx Xxxxxx
Xxxx Xxxxxxxxxx, Xxxxxxx 00000
Attention: Chief Financial Officer
The Bank of New York
000 Xxxxxxx Xxxxxx, Xxxxx 00 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Corporate Trust Administration
Re: SENIOR NOTES DUE 2007
Reference is hereby made to the Indenture, dated as of [May __], 2000
(the "INDENTURE"), among ANC Rental Corporation (the "COMPANY") and The Bank of
New York, as trustee. Capitalized terms used but not defined herein shall have
the meanings given to them in the Indenture.
In connection with our proposed purchase of $____________ aggregate
principal amount of:
(a) [ ] a beneficial interest in a Global Note, or
(b) [ ] a Definitive Note,
we confirm that:
1. We understand that any subsequent transfer of the Notes or any
interest therein is subject to certain restrictions and conditions set forth in
the Indenture and the undersigned agrees to be bound by, and not to resell,
pledge or otherwise transfer the Notes or any interest therein except in
compliance with, such restrictions and conditions and the United States
Securities Act of 1933, as amended (the "SECURITIES ACT").
2. We understand that the offer and sale of the Notes have not been
registered under the Securities Act, and that the Notes and any interest therein
may not be offered or sold except as permitted in the following sentence. We
agree, on our own behalf and on behalf of any accounts
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for which we are acting as hereinafter stated, that if we should sell the Notes
or any interest therein, we will do so only (A) to the Company or any subsidiary
thereof, (B) in accordance with Rule 144A under the Securities Act to a
"qualified institutional buyer" (as defined therein), (C) to an institutional
"accredited investor" (as defined below) that, prior to such transfer, furnishes
(or has furnished on its behalf by a U.S. broker-dealer) to you and to the
Company a signed letter substantially in the form of this letter and, if such
transfer is in respect of a principal amount of Notes, at the time of transfer
of less than $250,000, an Opinion of Counsel in form reasonably acceptable to
the Company to the effect that such transfer is in compliance with the
Securities Act, (D) outside the United States in accordance with Rule 904 of
Regulation S under the Securities Act, (E) pursuant to the provisions of Rule
144(k) under the Securities Act or (F) pursuant to an effective registration
statement under the Securities Act, and we further agree to provide to any
person purchasing the Definitive Note or beneficial interest in a Global Note
from us in a transaction meeting the requirements of clauses (A) through (E) of
this paragraph a notice advising such purchaser that resales thereof are
restricted as stated herein.
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133
3. We understand that, on any proposed resale of the Notes or
beneficial interest therein, we will be required to furnish to you and the
Company such certifications, legal opinions and other information as you and the
Company 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.
4. 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 its investment.
5. We are acquiring the Notes or beneficial interest therein
purchased by us for our own 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 and the Company 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.
____________________________________________
[Insert Name of Accredited Investor]
By:
----------------------------------------
Name:
Title:
Dated: ____________________________________
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EXHIBIT E
FORM OF NOTATION OF GUARANTEE
For value received, each Guarantor (which term includes any successor
Person under the Indenture) has, jointly and severally, unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture dated as of [May ___], 2000 (the "INDENTURE") among
the Company, the Guarantors listed on Exhibit G thereto and [The Bank of New
York], as trustee (the "TRUSTEE"), (a) the due and punctual payment of the
principal of, premium, if any, and interest on the Notes (as defined in the
Indenture) when due, whether at maturity, by acceleration, redemption or
otherwise, the due and punctual payment of interest on overdue principal and
premium, and, to the extent permitted by law, interest, 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 of the Indenture and (b) in case of any
extension of time of payment or renewal of any Notes 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 the Guarantors to the
Holders of Notes and to the Trustee pursuant to the Subsidiary Guarantee and the
Indenture are expressly set forth in Article 10 of the Indenture and reference
is hereby made to the Indenture for the precise terms of the Subsidiary
Guarantee. Each Holder of a Note, by accepting the same, agrees to and shall be
bound by such provisions.
ALAMO RENT-A-CAR (CANADA), INC.
ALAMO RENT-A-CAR, LLC
LIABILITY MANAGEMENT COMPANIES
HOLDING, INC.
NATIONAL CAR RENTAL LICENSING, INC.
NATIONAL CAR RENTAL SYSTEM, INC.
REPUBLIC XXX XXXXXX PARTNER, INC.
REPUBLIC INDUSTRIES AUTOMOTIVE
RENTAL GROUP (BELGIUM) INC.
SPIRIT RENT-A-CAR, INC.
By: /s/ Xxxxxx X. Xxxxxx
-------------------------------
Xxxxxx X. Xxxxxx
Vice President and Treasurer
X-0
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XXXXX RENT-A-CAR MANAGEMENT, LP
By: ARC-GP, Inc., its general partner
ANC COLLECTOR CORPORATION
ANC FINANCIAL, LP
By: ANC Financial GP Corporation, its
general partner
ARC-GP, INC.
ARC-TM, INC.
NCR AFFILIATE SERVICER, INC.
NCRAS MANAGEMENT, LP
By: NCRAS-GP, Inc., its general partner
NCRAS-GP, INC.
SRAC MANAGEMENT, LP
By: SRAC-GP, Inc., its general partner
SRAC-GP, INC.
SRAC-TM, INC.
By: /s/ O. Xxxxx Xxxxx, XX
--------------------------------------
O. Xxxxx Xxxxx, XX
Vice President and Assistant Secretary
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EXHIBIT F
[FORM OF SUPPLEMENTAL INDENTURE
TO BE DELIVERED BY SUBSEQUENT GUARANTORS]
SUPPLEMENTAL INDENTURE (this "SUPPLEMENTAL INDENTURE"), dated as of
________ __, among __________________ (the "GUARANTEEING SUBSIDIARY"), a
subsidiary of ANC Rental Corporation (or its permitted successor), a Delaware
corporation (the "COMPANY"), the Company, the other Guarantors (as defined in
the Indenture referred to herein) and [The Bank of New York], as trustee under
the indenture referred to below (the "TRUSTEE").
W I T N E S S E T H
WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture (the "INDENTURE"), dated as of [June __], 2000 providing
for the issuance of an aggregate principal amount of up to $225,000,000 of __%
Senior Notes due 2007 (the "NOTES");
WHEREAS, the Indenture provides that under certain circumstances the
Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental
indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally
guarantee all of the Company's Obligations under the Notes and the Indenture on
the terms and conditions set forth herein (the "SUBSIDIARY GUARANTEE"); and
WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.
NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:
1. CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.
2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees as
follows:
(a) Along with all Guarantors named in the Indenture, to
jointly and severally Guarantee to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and
assigns, the Notes or the obligations of the Company hereunder or
thereunder, that:
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(i) the principal of and interest on the Notes will
be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the
overdue principal of and interest on the Notes, if any, if
lawful, 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 Notes or any of such other obligations, that
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. Failing
payment when due of any amount so guaranteed or any
performance so guaranteed for whatever reason, the Guarantors
shall be jointly and severally obligated to pay the same
immediately.
(b) The obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Notes
or the Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Notes 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.
(c) The following is hereby waived: 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.
(d) This Subsidiary Guarantee shall not be discharged except
by complete performance of the obligations contained in the Notes and
the Indenture, and the Guaranteeing Subsidiary accepts all obligations
of a Guarantor under the Indenture.
(e) If any Holder or the Trustee is required by any court or
otherwise to return to the Company, the Guarantors, or any Custodian,
Trustee, liquidator or other similar official acting in relation to
either the Company or the Guarantors, any amount paid by either to the
Trustee or such Holder, this Subsidiary Guarantee, to the extent
theretofore discharged, shall be reinstated in full force and effect.
(f) The Guaranteeing Subsidiary shall not be entitled to any
right of subrogation in relation to the Holders in respect of any
obligations guaranteed hereby until payment in full of all obligations
guaranteed hereby.
(g) As between the Guarantors, 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
6 of the Indenture for the purposes of this Subsidiary 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 declaration of
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acceleration of such obligations as provided in Article 6 of the
Indenture, such obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantors for the purpose of
this Subsidiary Guarantee.
(h) The Guarantors shall have the right to seek contribution
from any non-paying Guarantor so long as the exercise of such right
does not impair the rights of the Holders under the Guarantee.
(i) Pursuant to Section 10.2 of the Indenture, after giving
effect to any maximum amount and any other contingent and fixed
liabilities that are relevant under any applicable Bankruptcy or
fraudulent conveyance laws, and after giving effect to any collections
from, rights to receive contribution from or payments made by or on
behalf of any other Guarantor in respect of the obligations of such
other Guarantor under Article 10 of the Indenture, this new Subsidiary
Guarantee shall be limited to the maximum amount permissible such that
the obligations of such Guarantor under this Subsidiary Guarantee will
not constitute a fraudulent transfer or conveyance.
3. EXECUTION AND DELIVERY. Each Guaranteeing Subsidiary agrees that the
Subsidiary Guarantees shall remain in full force and effect notwithstanding any
failure to endorse on each Note a notation of such Subsidiary Guarantee.
4. GUARANTEEING SUBSIDIARY MAY CONSOLIDATE, ETC. ON CERTAIN TERMS.
(a) The Guaranteeing Subsidiary may not consolidate with or merge with
or into (whether or not such Guarantor is the surviving Person) another
corporation, Person or entity whether or not affiliated with such Guarantor
unless:
(i) subject to Sections 10.3 and 10.4 of the Indenture, the
Person formed by or surviving any such consolidation or merger (if
other than a Guarantor or the Company) unconditionally assumes all the
obligations of such Guarantor, pursuant to a supplemental indenture in
form and substance reasonably satisfactory to the Trustee, under the
Notes, the Indenture and the Subsidiary Guarantee on the terms set
forth herein or therein; and
(ii) immediately after giving effect to such transaction, no
Default or Event of Default exists.
(b) In case of any such consolidation, merger, sale or conveyance and
upon the assumption by the successor corporation, by supplemental indenture,
executed and delivered to the Trustee and satisfactory in form to the Trustee,
of the Subsidiary Guarantee endorsed upon the Notes and the due and punctual
performance of all of the covenants and conditions of the Indenture to be
performed by the Guarantor, such successor corporation shall succeed to and be
substituted for the Guarantor with the same effect as if it had been named
herein as a Guarantor. Such successor corporation thereupon may cause to be
signed any or all of the Subsidiary Guarantees to be endorsed upon all of the
Notes issuable hereunder which theretofore shall not
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have been signed by the Company and delivered to the Trustee. All the Subsidiary
Guarantees so issued shall in all respects have the same legal rank and benefit
under the Indenture as the Subsidiary Guarantees theretofore and thereafter
issued in accordance with the terms of the Indenture as though all of such
Subsidiary Guarantees had been issued at the date of the execution hereof.
(c) Except as set forth in Articles 4 and 5 and Section 10.4 of Article
10 of the Indenture, and notwithstanding clauses (a) and (b) above, nothing
contained in the Indenture or in any of the Notes shall prevent any
consolidation or merger of a Guarantor with or into the Company 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.
5. RELEASES.
(a) In the event of a sale or other disposition of all of the assets of
any Guarantor, by way of merger, consolidation or otherwise, or a sale or other
disposition of all to the capital stock of any Guarantor, in each case to a
Person that is not (either before or after giving effect to such transaction) a
Subsidiary of the Company, then such Guarantor (in the event of a sale or other
disposition, by way of merger, consolidation or otherwise, of all of the capital
stock of such Guarantor) or the corporation acquiring the property (in the event
of a sale or other disposition of all or substantially all of the assets of such
Guarantor) will be released and relieved of any obligations under its Subsidiary
Guarantee; PROVIDED that the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of the Indenture, including
without limitation Section 4.10 of the Indenture. Upon delivery by the Company
to the Trustee of an Officers' Certificate and an Opinion of Counsel to the
effect that such sale or other disposition was made by the Company in accordance
with the provisions of the Indenture, including without limitation Section 4.10
of the Indenture, the Trustee shall execute any documents reasonably required in
order to evidence the release of any Guarantor from its obligations under its
Subsidiary Guarantee.
(b) Any Guarantor not released from its obligations under its
Subsidiary Guarantee shall remain liable for the full amount of principal of and
interest on the Notes and for the other obligations of any Guarantor under the
Indenture as provided in Article 10 of the Indenture.
6. NO RECOURSE AGAINST OTHERS. No past, present or future director,
officer, employee, incorporator, stockholder or agent of the Guaranteeing
Subsidiary, as such, shall have any liability for any obligations of the Company
or any Guaranteeing Subsidiary under the Notes, any Subsidiary Guarantees, the
Indenture or this Supplemental Indenture or for any claim based on, in respect
of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and
release are part of the consideration for issuance of the Notes. Such waiver may
not be effective to waive liabilities under the federal securities laws and it
is the view of the SEC that such a waiver is against public policy.
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7. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK
SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE.
8. COUNTERPARTS The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.
9. EFFECT OF HEADINGS. The Section headings herein are for convenience
only and shall not affect the construction hereof.
10. THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Guaranteeing Subsidiary and the Company.
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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above
written.
Dated: ________ __, ____.
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EXHIBIT G
SCHEDULE OF GUARANTORS
The following schedule lists each Guarantor under the Indenture as of
the Closing Date
SUBSIDIARY GUARANTORS
Alamo Rent-A-Car (Canada), Inc., a Florida corporation
Alamo Rent-A-Car, LLC, a Delaware limited liability company
Alamo Rent-A-Car Management, LP, a Delaware Limited partnership
ANC Collector Corporation, a Delaware corporation
ANC Financial, LP, a Delaware limited partnership
ARC-GP, Inc., a Delaware corporation
ARC-TM, Inc. a Delaware corporation
Liability Management Companies Holding, Inc. a Delaware corporation
National Car Rental Licensing, Inc., a Delaware corporation
National Car Rental System, Inc., a Delaware corporation
NCR Affiliate Servicer, Inc., a Delaware corporation
NCRAS Management, LP, a Delaware limited partnership
NCRAS-GP, Inc., a Delaware corporation
Republic Xxx Xxxxxx Partner, Inc., a Florida corporation
Republic Industries Automotive Rental Group (Belgium) Inc., a Florida
corporation
Spirit Rent-A-Car, Inc., an Ohio corporation
SRAC Management, LP, a Delaware limited partnership
SRAC-GP, Inc., a Delaware corporation
SRAC-TM, Inc., a Florida corporation
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