Exhibit 4-NN
EXECUTION COPY
XXXX CORPORATION,
as Issuer,
and
CITIBANK, N.A.,
as Trustee, Registrar and Paying Agent
--------------------------------------
INDENTURE
Dated as of March 11, 2002
--------------------------------------
10-1/8 % Notes due 2010
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE............................................................. 1
SECTION 1.1. Definitions.............................................................................. 1
SECTION 1.2. Other Definitions........................................................................ 31
SECTION 1.3. Incorporation by Reference of Trust Indenture Act........................................ 32
SECTION 1.4. Rules of Construction.................................................................... 33
ARTICLE II THE SECURITIES........................................................................................ 33
SECTION 2.1. Form, Dating and Terms................................................................... 33
SECTION 2.2. Execution and Authentication............................................................. 39
SECTION 2.3. Registrar and Paying Agent............................................................... 40
SECTION 2.4. Paying Agent To Hold Money in Trust...................................................... 40
SECTION 2.5. Securityholder Lists..................................................................... 41
SECTION 2.6. Transfer and Exchange.................................................................... 41
SECTION 2.7. Form of Certificate to be Delivered in Connection with Transfers to Institutional
Accredited Investors........................................................................... 43
SECTION 2.8. Form of Certificate to be Delivered in Connection with Transfers
Pursuant to Regulation S....................................................................... 45
SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities.......................................... 47
SECTION 2.10. Temporary Securities.................................................................... 47
SECTION 2.11. Cancellation............................................................................ 48
SECTION 2.12. Payment of Interest; Defaulted Interest................................................. 48
SECTION 2.13. Computation of Interest................................................................. 49
SECTION 2.14. CUSIP, ISIN and Common Code Numbers..................................................... 49
ARTICLE III COVENANTS............................................................................................ 50
SECTION 3.1. Application of Certain Covenants......................................................... 50
SECTION 3.2. Payment of Principal, Premium, if any, and Interest...................................... 50
SECTION 3.3. Maintenance of Office or Agency.......................................................... 50
SECTION 3.4. Money for Securities Payments to be Held in Trust; Unclaimed Money....................... 51
SECTION 3.5. Corporate Existence...................................................................... 52
SECTION 3.6. Reports by the Company................................................................... 52
SECTION 3.7. Annual Certificate....................................................................... 53
SECTION 3.8. Books of Record and Account.............................................................. 53
SECTION 3.9. Limitation on Liens...................................................................... 53
SECTION 3.10. Limitation on Incurrence of Indebtedness and Issuance of Preferred Stock................ 54
SECTION 3.11. Limitation on Restricted Payments....................................................... 57
SECTION 3.12. Limitation on Certain Asset Dispositions................................................ 61
SECTION 3.13. Limitation on Sale and Leaseback Transactions........................................... 63
SECTION 3.14. Limitation on Payment Restrictions Affecting Restricted Subsidiaries.................... 64
SECTION 3.15. Limitation on Transactions with Affiliates.............................................. 65
SECTION 3.16. Limitation on Guarantees by Restricted Subsidiaries..................................... 66
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SECTION 3.17. Offer to Repurchase Upon a Change of Control............................................ 67
SECTION 3.18. Payments for Consents................................................................... 69
SECTION 3.19. Further Instruments and Acts............................................................ 69
ARTICLE IV MERGER, CONSOLIDATION OR SALE BY THE COMPANY.......................................................... 69
SECTION 4.1. Merger, Consolidation, Etc............................................................... 69
ARTICLE V REDEMPTION OF SECURITIES............................................................................... 70
SECTION 5.1. Applicability of Article................................................................. 70
SECTION 5.2. Election to Redeem; Notice to Trustee.................................................... 70
SECTION 5.3. Selection of Securities to be Redeemed................................................... 71
SECTION 5.4. Notice of Redemption..................................................................... 71
SECTION 5.5. Deposit of Redemption Price.............................................................. 72
SECTION 5.6. Securities Payable on Redemption Date.................................................... 72
SECTION 5.7. Securities Redeemed in Part.............................................................. 72
SECTION 5.8. Optional Redemption...................................................................... 73
ARTICLE VI DEFAULTS AND REMEDIES................................................................................. 73
SECTION 6.1. Events of Default........................................................................ 73
SECTION 6.2. Acceleration; Rescission and Annulment................................................... 75
SECTION 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee.......................... 75
SECTION 6.4. Trustee May File Proofs of Claim......................................................... 76
SECTION 6.5. Trustee May Enforce Claims Without Possession of Securities.............................. 76
SECTION 6.6. Delay or Omission Not Waiver............................................................. 76
SECTION 6.7. Waiver of Past Defaults.................................................................. 76
SECTION 6.8. Control by Majority...................................................................... 76
SECTION 6.9. Limitation on Suits by Holders........................................................... 77
SECTION 6.10. Rights of Holders to Receive Payment.................................................... 77
SECTION 6.11. Application of Money Collected.......................................................... 77
SECTION 6.12. Restoration of Rights and Remedies...................................................... 78
SECTION 6.13. Rights and Remedies Cumulative.......................................................... 78
SECTION 6.14. Waiver of Usury, Stay or Extension Laws................................................. 78
SECTION 6.15. Undertaking for Costs................................................................... 78
ARTICLE VII TRUSTEE.............................................................................................. 79
SECTION 7.1. Certain Duties and Responsibilities of the Trustee....................................... 79
SECTION 7.2. Rights of Trustee........................................................................ 79
SECTION 7.3. Trustee May Hold Securities.............................................................. 80
SECTION 7.4. Money Held in Trust...................................................................... 80
SECTION 7.5. Trustee's Disclaimer..................................................................... 80
SECTION 7.6. Notice of Defaults....................................................................... 81
SECTION 7.7. Reports by Trustee to Holders............................................................ 81
SECTION 7.8. Securityholder Lists..................................................................... 81
SECTION 7.9. Compensation and Indemnity............................................................... 81
SECTION 7.10. Replacement of Trustee.................................................................. 82
SECTION 7.11. Acceptance of Appointment by Successor.................................................. 83
SECTION 7.12. Eligibility; Disqualification........................................................... 84
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SECTION 7.13. Merger, Conversion, Consolidation or Succession to Business............................. 84
SECTION 7.14. Appointment of Authenticating Agent..................................................... 84
ARTICLE VIII DISCHARGE OF INDENTURE; DEFEASANCE.................................................................. 86
SECTION 8.1. Termination of Company's Obligations Under this Indenture................................ 86
SECTION 8.2. Application of Trust Funds............................................................... 87
SECTION 8.3. Company's Option to Effect Defeasance or Covenant Defeasance............................. 87
SECTION 8.4. Defeasance and Discharge................................................................. 87
SECTION 8.5. Covenant Defeasance...................................................................... 87
SECTION 8.6. Conditions to Defeasance or Covenant Defeasance.......................................... 88
SECTION 8.7. Deposited Money and U.S. Government Obligations to Be Held in Trust...................... 89
SECTION 8.8. Repayment to Company..................................................................... 89
SECTION 8.9. Indemnity for U.S. Government Obligations................................................ 90
SECTION 8.10. Reinstatement........................................................................... 90
ARTICLE IX SUPPLEMENTAL INDENTURES............................................................................... 90
SECTION 9.1. Supplemental Indentures Without Consent of Holders....................................... 90
SECTION 9.2. Supplemental Indentures with Consent of Holders.......................................... 91
SECTION 9.3. Compliance with Trust Indenture Act...................................................... 92
SECTION 9.4. Execution of Supplemental Indentures..................................................... 92
SECTION 9.5. Effect of Supplemental Indentures........................................................ 92
ARTICLE X MISCELLANEOUS.......................................................................................... 93
SECTION 10.1. Trust Indenture Act Controls............................................................ 93
SECTION 10.2. Notices................................................................................. 93
SECTION 10.3. Communication by Holders with other Holders............................................. 94
SECTION 10.4. Certificate and Opinion as to Conditions Precedent...................................... 94
SECTION 10.5. Statements Required in Certificate or Opinion........................................... 94
SECTION 10.6. When Securities Disregarded............................................................. 94
SECTION 10.7. Rules by Trustee, Registrars and Paying Agents.......................................... 95
SECTION 10.8. Legal Holidays.......................................................................... 95
SECTION 10.9. GOVERNING LAW........................................................................... 95
SECTION 10.10. No Recourse Against Others............................................................. 95
SECTION 10.11. Successors............................................................................. 95
SECTION 10.12. Multiple Originals..................................................................... 95
SECTION 10.13. Qualification of Indenture............................................................. 95
SECTION 10.14. Table of Contents; Headings............................................................ 95
SECTION 10.15. Separability........................................................................... 96
SECTION 10.16. Benefits of Indenture.................................................................. 96
EXHIBIT A.........Form of the Initial Securities
EXHIBIT B.........Form of the Exchange Securities
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INDENTURE, dated as of March 11, 2002, between Xxxx
Corporation, a Virginia corporation (the "Company") and Citibank, N.A., a
national banking association, as trustee (the "Trustee"), registrar and paying
agent.
Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of (i) the Company's
$250,000,000 10-1/8 % Notes due 2010 issued on the Issue Date (the "Initial
Securities"), (ii) if and when issued, additional 10 -1/8% Notes due 2010 that
may be offered from time to time subsequent to the Issue Date (the "Additional
Securities"), (iii) if and when issued in exchange for, or upon registered
resale of, Initial Securities or Additional Securities as provided in a
Registration Rights Agreement (as hereinafter defined), the Company's 10-1/8 %
Notes due 2010 (the "Exchange Securities"). The Initial Securities, the
Additional Securities and the Exchange Securities are collectively referred to
herein as the "Securities".
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.1. Definitions
"Acquired Indebtedness" of any specified Person means Indebtedness of
any other Person and its Restricted Subsidiaries existing at the time such other
Person merged with or into or became a Restricted Subsidiary of such specified
Person or assumed by the specified Person in connection with the acquisition of
assets from such other Person and not incurred by the specified Person in
connection with or in anticipation of (a) such other Person and its Restricted
Subsidiaries being merged with or into or becoming a Restricted Subsidiary of
such specified Person or (b) such acquisition by the specified Person.
"Additional Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.
"Affiliate" means, when used with reference to any Person, any other
Person directly or indirectly controlling, controlled by, or under direct or
indirect common control with, the referent Person, as the case may be. For the
purposes of this definition, "control" when used with respect to any specified
Person means the power to direct or cause the direction of management or
policies of the referent Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise; and the terms
"controlling" and "controlled" have meanings correlative of the foregoing.
"Agent" means any Registrar, Paying Agent, Authenticating Agent or
co-Registrar.
"Applicable Procedure" means the rules and procedures of DTC, Euroclear
and Clearstream, in each case to the extent applicable.
"Asset Disposition" means any sale, transfer or other disposition
(including, without limitation, by merger, consolidation or Sale and Leaseback
Transaction) of:
(1) shares of Capital Stock of a Restricted Subsidiary of the
Company (other than directors' qualifying shares) or
(2) property or assets of the Company or any of its Restricted
Subsidiaries.
Notwithstanding the foregoing, an Asset Disposition shall not
include:
(1) a disposition by a Restricted Subsidiary to the Company or
by the Company or a Restricted Subsidiary to a Restricted Subsidiary;
(2) the sale of Cash Equivalents in the ordinary course of
business;
(3) a disposition of inventory in the ordinary course of
business;
(4) a disposition of obsolete or worn out property or property
that is no longer useful in the conduct of the business of the Company
and its Restricted Subsidiaries and that is disposed of in each case in
the ordinary course of business;
(5) transactions permitted under Section 4.1 hereof;
(6) an issuance of Capital Stock by a Restricted Subsidiary of
the Company to the Company or to a Restricted Subsidiary;
(7) for purposes of Section 3.12 hereof only, the making of a
Permitted Investment or a disposition subject to Section 3.11 hereof;
(8) an Asset Swap effected in compliance with Section 3.12
hereof;
(9) any sale, transfer or other disposition of defaulted
receivables for collection;
(10) the grant in the ordinary course of business of any
license of patents, trademarks, registrations therefor and other
similar intellectual property;
(11) the granting of any Lien (or foreclosure thereon)
securing Indebtedness to the extent that such Lien is granted in
compliance with Section 3.9 hereof and dispositions in connection with
Permitted Liens;
(12) sales of accounts receivable in connection with the
Receivables Facility;
(13) sales of accounts receivable, equipment and related
assets (including contract rights) of the type specified in the
definition of "Qualified Securitization Transaction" to a
Securitization Subsidiary for the fair market value thereof, including
cash in an amount at least equal to 90% of the fair market value
thereof as determined in accordance with GAAP;
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(14) transfers of accounts receivable, equipment and related
assets (including contract rights) of the type specified in the
definition of "Qualified Securitization Transaction" (or a fractional
undivided interest therein) by a Securitization Subsidiary in a
Qualified Securitization Transaction; and
(15) any isolated sale, transfer or other disposition that
does not (together with all related sales, transfers or dispositions)
involve aggregate consideration in excess of $10.0 million.
An "Associate" of, or a Person "associated" with, any Person,
means:
(1) any trust or other estate in which such Person has a
substantial beneficial interest or as to which such Person serves as
trustee or in a similar fiduciary capacity; and
(2) any relative or spouse of such Person, or any relative of
such spouse, who has the same home as such Person.
"Asset Swap" means the concurrent purchase and sale or exchange of
Related Business Assets between the Company or any of its Restricted
Subsidiaries and another Person; provided that any cash received must be applied
in accordance with Section 3.12 hereof.
"Attributable Indebtedness" in respect of a Sale and Leaseback
Transaction means, as at the time of determination, the present value
(discounted at the interest rate borne by the Securities, compounded annually)
of the total obligations of the lessee for 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).
"Authenticating Agent" means any authenticating agent appointed by the
Trustee pursuant to Section 7.14 hereof.
"Average Life" means, as of the date of determination, with respect to
any Indebtedness or Preferred Stock, the quotient obtained by dividing
(1) the sum of the products of the number of years from the
date of determination to the dates of each successive scheduled
principal payment of such Indebtedness or redemption or similar payment
with respect to such Preferred Stock multiplied by the amount of such
payment, by
(2) the sum of all such payments.
"Bankruptcy Law" means Title 11, U.S. Code, or any similar federal or
state bankruptcy, insolvency, reorganization or other law for the relief of
debtors.
"Beneficial Owner" has the meaning assigned to such term in Rule 13d-3
and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular "person" (as that term is used in Section 13(d)(3)
of the Exchange Act), such "person" shall be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire by conversion or
exercise of other securities, whether such right is currently exercisable or is
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exercisable only upon occurrence of a subsequent condition (other than a
condition that the Holders waive one or more provisions of this Indenture).
"Board of Directors" means, as to any Person, the board of directors of
such Person or any duly authorized committee thereof.
"Board Resolution" means a copy of a resolution of the Board of
Directors of the Company or the equivalent body of any Restricted Subsidiary, as
applicable, certified by the Secretary or an Assistant Secretary of the Company,
or the equivalent officer of any Restricted Subsidiary, as applicable, to have
been duly adopted by the Board of Directors of the Company or the Restricted
Subsidiary, as applicable, and to be in full force and effect on the date of the
certificate, and delivered to the Trustee.
"Book-Entry Interest" means a depositary interest representing 100%
beneficial interest in a Global Security.
"Business Day," means a day (other than Saturday or Sunday) on banks
are not permitted or required to be closed in New York City.
"Capital Stock" of any Person means any and all shares, interests,
rights to purchase, warrants, options, participation or other equivalents of or
interests in (however designated) equity of such Person, including any Preferred
Stock, but excluding any debt securities convertible into such equity.
"Capitalized Lease Obligation" means an obligation that is required to
be classified and accounted for as a capitalized lease for financial reporting
purposes in accordance with GAAP, and the amount of Indebtedness represented by
such obligation will be the capitalized amount of such obligation at the time
any determination thereof is to be made as determined in accordance with GAAP,
and the Stated Maturity thereof will be the date of the last payment of rent or
any other amount due under such lease before the first date such lease may be
terminated without penalty.
"Cash Equivalents" means:
(1) securities issued or directly and fully guaranteed or
insured by the United States Government or any agency or
instrumentality of the United States (provided that the full faith and
credit of the United States is pledged in support thereof), having
maturities of not more than one year from the date of acquisition;
(2) marketable general obligations issued by any state of the
United States of America or any political subdivision of any such state
or any public instrumentality thereof maturing within one year from the
date of acquisition thereof and, at the time of acquisition, having a
credit rating of "A" or better from either S&P or Moody's;
(3) certificates of deposit, time deposits, eurodollar time
deposits, overnight bank deposits or bankers' acceptances having
maturities of not more than one year from the date of acquisition
thereof issued by any commercial bank the long-term debt of which is
rated at the time of acquisition thereof at least "A" or the equivalent
thereof by
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S&P or "A" or the equivalent thereof by Moody's, and having combined
capital and surplus in excess of $500.0 million;
(4) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clauses (1),
(2) and (3) entered into with any bank meeting the qualifications
specified in clause (3) above;
(5) commercial paper rated at the time of acquisition thereof
at least "A-2" or the equivalent thereof by S&P or "P-2" or the
equivalent thereof by Moody's, or carrying an equivalent rating by a
nationally recognized rating agency, if both of the two named rating
agencies cease publishing ratings of investments, and in any case
maturing within one year after the date of acquisition thereof; and
(6) interests in any investment company or money market fund
which invests solely in instruments of the type specified in clauses
(1) through (5) above.
"Change of Control" means the occurrence of one or more of the
following events:
(1) any "person" or "group" (as such terms are used in Section
13(d) and 14(d) of the Exchange Act), other than employee or retiree
benefit plans or trusts sponsored or established by the Company, is or
becomes the "beneficial owner" (as defined in Rule 13d-3 under the
Exchange Act), directly or indirectly, of securities of the Company
representing 35% or more of the combined voting power of the Company's
then outstanding Voting Stock;
(2) the following individuals cease for any reason to
constitute more than two-thirds of the number of directors then serving
on the Board of Directors of the Company: individuals who, on the Issue
Date, constitute the Board of Directors of the Company and any new
director (other than a director whose initial assumption of the office
is in connection with an actual or threatened election contest,
including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by
the Board of Directors of the Company or nomination for election by the
Company's stockholders was approved by the vote of at least a majority
of the directors then still in office or whose appointment, election or
nomination was previously so approved or recommended;
(3) the shareholders of the Company shall approve any Plan of
Liquidation (whether or not otherwise in compliance with the provisions
of this Indenture);
(4) the Company or any Restricted Subsidiary of the Company,
directly or indirectly, sells, assigns, conveys, transfers, leases or
otherwise disposes of, in one transaction or a series of related
transactions, all or substantially all of the property or assets of the
Company and the Restricted Subsidiaries of the Company (determined on a
consolidated basis) to any Person; provided, that neither the merger of
a Restricted Subsidiary of the Company into the Company or into any
Restricted Subsidiary of the Company nor a sale, assignment,
conveyance, transfer, lease or other disposition of all or
substantially all of the property or assets of a Restricted Subsidiary
of the Company into
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the Company or into any Restricted Subsidiary of the Company shall be
deemed to be a Change of Control.
For purposes of the foregoing, the transfer (by lease, assignment, sale
or otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted
Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.
"Clearstream" means Clearstream Banking, societe anonyme, and any
successor thereto.
"Code" means the Internal Revenue Code of 1986, as amended.
"Commission" means the Securities and Exchange Commission, as from time
to time constituted, created under the Exchange Act, or, if at any time after
the execution of this Indenture such Commission is not existing and performing
the duties now assigned to it under the Trust Indenture Act, then the body
performing such duties at such time.
"Common Stock" means with respect to any Person, any and all shares,
interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of such Person's common stock, whether or not
outstanding on the Issue Date, and includes, without limitation, all series and
classes of such common stock.
"Company" means Xxxx Corporation, a Virginia corporation, or a
successor corporation.
"Company Order" and "Company Request" mean, respectively, a written
order or request signed in the name of the Company by two Officers, one of whom
must be the Chairman of the Board, the President, the Chief Financial Officer,
any Executive Vice President, Senior Vice President or Vice President, the
Treasurer, any Assistant Treasurer or the Controller of the Company.
"Consolidated Coverage Ratio" means as of any date of determination,
with respect to any Person, the ratio of (x) the aggregate amount of
Consolidated EBITDA of such Person for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such determination for
which financial statements are in existence to (y) Consolidated Interest Expense
for such four fiscal quarters, provided, however, that:
(1) if the Company or any Restricted Subsidiary:
(a) has incurred any Indebtedness since the beginning
of such four fiscal quarters that remains outstanding on such
date of determination or if the transaction giving rise to the
need to calculate the Consolidated Coverage Ratio is an
incurrence of Indebtedness, Consolidated EBITDA and
Consolidated Interest Expense for such period will be
calculated after giving effect on a pro forma basis to such
Indebtedness as if such Indebtedness had been Incurred on the
first day of such period (except that in making such
computation, the amount of Indebtedness under any revolving
credit facility outstanding on the date of such calculation
will be computed based on (i) the average daily balance of
such Indebtedness during
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such four fiscal quarters or such shorter period for which
such facility was outstanding or (ii) if such facility was
created after the end of such four fiscal quarters, the
average daily balance of such Indebtedness during the period
from the date of creation of such facility to the date of such
calculation) and to the discharge of any other Indebtedness
repaid, repurchased, defeased or otherwise discharged with the
proceeds of such new Indebtedness as if such discharge had
occurred on the first day of such period; or
(b) has repaid, repurchased, defeased or otherwise
discharged any Indebtedness since the beginning of the period
that is no longer outstanding on such date of determination or
if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of
Indebtedness (in each case other than Indebtedness incurred
under any revolving credit facility unless such Indebtedness
has been permanently repaid and the related commitment
terminated), Consolidated EBITDA and Consolidated Interest
Expense for such period will be calculated after giving effect
on a pro forma basis to such discharge of such Indebtedness,
including with the proceeds of such new Indebtedness, as if
such discharge had occurred on the first day of such period;
(2) if since the beginning of such period the Company or any
Restricted Subsidiary will have made any Asset Disposition or if the
transaction giving rise to the need to calculate the Consolidated
Coverage Ratio is an Asset Disposition:
(a) the Consolidated EBITDA for such period will be
reduced by an amount equal to the Consolidated EBITDA (if
positive) directly attributable to the assets which are the
subject of such Asset Disposition for such period or increased
by an amount equal to the Consolidated EBITDA (if negative)
directly attributable thereto for such period; and
(b) Consolidated Interest Expense for such period
will be reduced by an amount equal to the Consolidated
Interest Expense directly attributable to any Indebtedness of
The Company or any Restricted Subsidiary repaid, repurchased,
defeased or otherwise discharged with respect to the Company
and its continuing Restricted Subsidiaries in connection with
such Asset Disposition for such period (or, if the Capital
Stock of any Restricted Subsidiary is sold, the Consolidated
Interest Expense for such period directly attributable to the
Indebtedness of such Restricted Subsidiary to the extent the
Company and its continuing Restricted Subsidiaries are no
longer liable for such Indebtedness after such sale);
(3) if since the beginning of such period the Company or any
Restricted Subsidiary (by merger or otherwise) will have made an
Investment in any Restricted Subsidiary (or any Person which becomes a
Restricted Subsidiary or is merged with or into the Company) or an
acquisition of assets, including any acquisition of assets occurring in
connection with a transaction causing a calculation to be made
hereunder, which constitutes all or substantially all of an operating
unit, division or line of business, Consolidated EBITDA and
Consolidated Interest Expense for such period will be calculated after
giving pro forma effect thereto (including the incurrence of any
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Indebtedness) as if such Investment or acquisition occurred on the
first day of such period; and
(4) if since the beginning of such period any Person (that
subsequently became a Restricted Subsidiary or was merged with or into
the Company or any Restricted Subsidiary since the beginning of such
period) will have made any Asset Disposition or any Investment or
acquisition of assets that would have required an adjustment pursuant
to clause (2) or (3) above if made by the Company or a Restricted
Subsidiary during such period, Consolidated EBITDA and Consolidated
Interest Expense for such period will be calculated after giving pro
forma effect thereto as if such Asset Disposition or Investment or
acquisition of assets occurred on the first day of such period.
For purposes of this definition, whenever pro forma effect is to be given to any
calculation under this definition, the pro forma calculations will be determined
in good faith by a responsible financial or accounting officer of the Company
(including pro forma expense and cost reductions calculated on a basis
consistent with Regulation S-X under the Securities Act). If any Indebtedness
bears a floating rate of interest and is being given pro forma effect, the
interest expense on such Indebtedness will be calculated as if the rate in
effect on the date of determination had been the applicable rate for the entire
period (taking into account any Interest Rate Protection Agreement applicable to
such Indebtedness if such Interest Rate Protection Agreement has a remaining
term in excess of 12 months).
"Consolidated EBITDA" for any period means, without duplication, the
Consolidated Net Income for such period, plus the following to the extent
deducted in calculating such Consolidated Net Income:
(1) Consolidated Interest Expense;
(2) Consolidated Income Taxes;
(3) consolidated depreciation expense;
(4) consolidated amortization of intangibles; and
(5) other non-cash charges reducing Consolidated Net Income
(excluding any such non-cash charge to the extent it represents an
accrual of or reserve for cash charges in any future period or
amortization of a prepaid cash expense that was paid in a prior period
not included in the calculation).
"Consolidated Income Taxes" means, with respect to any Person for any
period, taxes imposed upon such Person or other payments required to be made by
such Person by any governmental authority which taxes or other payments are
calculated by reference to the income or profits of such Person or such Person
and its Restricted Subsidiaries (to the extent such income or profits were
included in computing Consolidated Net Income for such period), regardless of
whether such taxes or payments are required to be remitted to any governmental
authority.
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"Consolidated Interest Expense" means, for any period, the total
interest expense of the Company and its consolidated Restricted Subsidiaries,
whether paid or accrued, plus, to the extent not included in such interest
expense:
(1) interest expense attributable to Capitalized Lease Obligations and
the interest portion of rent expense associated with Attributable
Indebtedness in respect of the relevant lease giving rise thereto,
determined as if such lease were a capitalized lease in accordance with
GAAP and the interest component of any deferred payment obligations;
(2) amortization of debt discount;
(3) non-cash interest expense;
(4) commissions, discounts and other fees and charges owed with respect
to letters of credit and bankers' acceptance financing;
(5) the interest expense 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;
(6) net costs associated with Hedging Obligations (including
amortization of fees);
(7) the consolidated interest expense of such Person and its Restricted
Subsidiaries that was capitalized during such period;
(8) the product of (a) all dividends paid or payable in cash, Cash
Equivalents or Indebtedness or accrued during such period on any series
of Disqualified Stock of such Person or on Preferred Stock of its
Restricted Subsidiaries payable to a party other than the Company or a
Restricted Subsidiary, times (b) a fraction, the numerator of which is
one and the denominator of which is one minus the then current combined
federal, state, provincial and local statutory tax rate of such Person,
expressed as a decimal, in each case, on a consolidated basis and in
accordance with GAAP; and
(9) the cash contributions to any employee stock ownership plan or
similar trust to the extent such contributions are used by such plan or
trust to pay interest or fees to any Person (other than the Company) in
connection with Indebtedness Incurred by such plan or trust; provided,
however, that there will be excluded therefrom any such interest
expense of any Unrestricted Subsidiary to the extent the related
Indebtedness is not Guaranteed or paid by the Company or any Restricted
Subsidiary.
For purposes of the foregoing, total interest expense will be
determined after giving effect to any net payments made or received by
the Company and its Subsidiaries with respect to Interest Rate
Protection Agreements.
"Consolidated Net Income" means, for any period, the net income (loss)
of the Company and its consolidated Restricted Subsidiaries determined in
accordance with GAAP; provided, however, that there will not be included in such
Consolidated Net Income:
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(1) any net income (loss) of any Person if such Person is not a
Restricted Subsidiary, except that:
(a) subject to the limitations contained in clauses (4), (5)
and (6) below, the Company's equity in the net income of any such
Person for such period will be included in such Consolidated Net Income
up to the aggregate amount of cash actually distributed by such Person
during such period to the Company or a Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or
other distribution to a Restricted Subsidiary, to the limitations
contained in clause (3) below); and
(b) the Company's equity in a net loss of any such Person
(other than an Unrestricted Subsidiary) for such period will be
included in determining such Consolidated Net Income to the extent such
loss has been funded with cash from the Company or a Restricted
Subsidiary;
(2) any net income (loss) of any Person acquired by the Company or a
Subsidiary in a pooling of interests transaction for any period before the date
of such acquisition;
(3) any net income (but not loss) of any Restricted Subsidiary if such
Subsidiary is subject to restrictions, directly or indirectly, on the payment of
dividends or the making of distributions by such Restricted Subsidiary, directly
or indirectly, to the Company, except that:
(a) subject to the limitations contained in clauses (4), (5)
and (6) below, the Company's equity in the net income of any such
Restricted Subsidiary for such period will be included in such
Consolidated Net Income up to the aggregate amount of cash that could
have been distributed by such Restricted Subsidiary during such period
to the Company or another Restricted Subsidiary as a dividend (subject,
in the case of a dividend to another Restricted Subsidiary, to the
limitation contained in this clause); and
(b) the Company's equity in a net loss of any such Restricted
Subsidiary for such period will be included in determining such
Consolidated Net Income;
(4) any gain (loss) realized upon the sale or other disposition of any
property, plant or equipment of the Company or its consolidated Restricted
Subsidiaries (including pursuant to any Sale and Leaseback Transaction) which is
not sold or otherwise disposed of in the ordinary course of business (provided
that sales of equipment and related assets (including contract rights) or
Receivables or interests therein pursuant to Qualified Securitization
Transactions shall be deemed to be in the ordinary course) and any gain (loss)
realized upon the sale or other disposition of any Capital Stock of any Person;
(5) any extraordinary gain or loss; and
(6) the cumulative effect of a change in accounting principles.
"Consolidated Net Tangible Assets" means the total assets (less
applicable reserved and other properly deductible items) on the balance sheet of
the Company and its consolidated Subsidiaries for the most recent fiscal
quarter, less (i) all current liabilities and (ii) goodwill,
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trade names, patents, organization expenses and other like intangibles of the
Company and its consolidated Subsidiaries.
"Consolidated Tangible Assets" means the total assets (less applicable
reserved and other properly deductible items) on the balance sheet of the
Company and its consolidated Subsidiaries for the most recent fiscal quarter,
less goodwill, trade names, patents, organization expenses and other like
intangibles of the Company and its consolidated Subsidiaries.
"Corporate Trust Office" means the office of the Trustee in which at
any particular time its corporate trust business shall be principally
administered, which office at the date hereof is located at 000 Xxxx Xxxxxx,
00xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, Attention: Citibank Agency & Trust.
"Credit Facilities" means (i) the 364-Day Credit Agreement dated as of
December 19, 2001, as amended by Amendment No. 1 dated February 1, 2002, among
Xxxx, as borrower, the initial lenders named therein, as initial lenders, and
Citibank, N.A., as Administrative Agent, Deutsche Banc Alex. Xxxxx Inc. and Bank
of America, N.A., as Syndication Agents, JPMorgan Chase Bank, as Documentation
Agent and Xxxxxxx Xxxxx Xxxxxx Inc., as Lead Arranger and Book Manager,
including any related notes, (ii) the Five-Year Credit Agreement dated as of
November 15, 2000, as amended by Amendment No. 1 dated February 9, 2001,
Amendment No. 2 dated as of December 19, 2001 and Amendment No. 3 dated February
1, 2002, among Xxxx, as borrower, the initial lenders named therein, as initial
lenders, and Citibank, N.A., as Administrative Agent, Deutsche Bank, AG, New
York Branch and Bank of America, N.A., as Syndication Agents, JPMorgan Chase
Bank, as Documentation Agent and Xxxxxxx Xxxxx Xxxxxx Inc., as Lead Arranger and
Book Manager, including any related notes, and (iii) the Receivables Facility,
each as amended to the Issue Date and as such Facilities may from time to time
thereafter be amended, restated, supplemented or otherwise modified, including
any refinancing, refunding, replacement or extension thereof and whether by the
same or any other lender or group of lenders; provided that no amendment,
restatement, supplement or other modification to such facilities shall permit a
Restricted Subsidiary to be a borrower thereunder except to the extent permitted
under clause (16) of Section 3.10 hereof or provide for the granting of a Lien
other than as permitted by Section 3.9 hereof; and provided, further, that in no
event shall the amount of Indebtedness which the Company may incur under the
Credit Facilities, including any refinancing, refunding, replacement or
extension thereof, exceed $1.56 billion.
"Currency Agreement" means any foreign exchange contract, currency swap
agreement or other similar agreement or arrangement designed to protect the
Company or any of its Restricted Subsidiaries against fluctuations in currency
values to or under which the Company or any of its Restricted Subsidiaries is a
party or a beneficiary on the date of this Indenture or becomes a party or a
beneficiary thereafter.
"Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.
"Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
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"Depositary" means DTC, and its successors and assigns.
"Depositary Interest" means a certificate or depositary interest
representing 100% beneficial interest in a Global Security.
"Disqualified Capital Stock" means, with respect to any Person, any
Capital Stock of such Person which by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable) or upon the
happening of any event:
(1) matures or is mandatorily redeemable pursuant to a sinking fund
obligation or otherwise;
(2) is convertible or exchangeable for Indebtedness or Disqualified
Stock (excluding Capital Stock which is convertible or exchangeable solely at
the option of the Company or a Restricted Subsidiary); or
(3) is redeemable at the option of the holder of the Capital Stock, in
whole or in part,
in each case on or prior to the date that is 91 days after the date (a) on which
the Securities mature, or (b) on which there are no Securities outstanding,
provided that only the portion of Capital Stock which so matures or is
mandatorily redeemable, is so convertible or exchangeable or is so redeemable at
the option of the holder thereof before such date will be deemed to be
Disqualified Stock; provided, further that 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 asset sale (each defined in a substantially identical
manner to the corresponding definitions in this Indenture) shall not constitute
Disqualified Stock if the terms of such Capital Stock (and all such securities
into which it is convertible or for which it is redeemable or exchangeable)
provide that the Company may not repurchase or redeem any such Capital Stock
(and all such securities into which it is convertible or for which it is
redeemable or exchangeable) pursuant to such provision prior to compliance by
the Company with the provisions of Section 3.12 and Section 3.17 hereof and such
repurchase complies with Section 3.11 hereof.
"DTC" means The Depository Trust Company, its nominees and their
respective successors and assigns, or such other depositary institution
hereinafter appointed by the Company.
"Euroclear" means Euroclear Bank S.A./N.V., as operator of the
Euroclear system, and any successor thereto.
"Event of Default" has the meaning set forth in Section 6.1 hereof.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Exchange Offer" shall have the meaning set forth in the Registration
Rights Agreement.
"Exchange Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.
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"Funded Debt" means indebtedness for borrowed money owed or guaranteed
by the Company or any consolidated Restricted Subsidiary, and any other
indebtedness which under GAAP would appear as debt on the Company's consolidated
balance sheet, which matures by its terms more than twelve months from the date
as of which Funded Debt is to be determined or is extendible or renewable at the
option of the obligor to a date more than twelve months from the date as of
which Funded Debt is to be determined.
"GAAP" means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the accounting
profession of the United States, which are in effect as of the Issue Date.
"guarantee" means any obligation, contingent or otherwise, of any
Person directly or indirectly guaranteeing any Indebtedness of any other Person
and, without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person:
(1) to purchase or pay (or advance or supply funds for the
purchase or payment of) such Indebtedness of such other Person (whether
arising by virtue of partnership arrangements, or by agreement to
keepwell, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or
otherwise); or
(2) entered into for purposes of assuring in any other manner
the obligee of such Indebtedness of the payment thereof or to protect
such obligee against loss in respect thereof (in whole or in part),
provided that the term "guarantee" shall not include endorsements for
collection or deposit in the ordinary course of business. The term
"guarantee" used as a verb has a corresponding meaning.
"Hedging Obligations" of any Person means the obligations of such
Person pursuant to any Interest Rate Protection Agreement or Currency Agreement.
"Holder" or "Securityholder" means the Person in whose name a Security
is registered in a Security Register.
"incur" means, with respect to any Indebtedness or other obligation of
any Person, to create, issue, incur (by conversion, exchange or otherwise),
assume, guarantee or otherwise become liable in respect of such Indebtedness or
other obligation or the recording, as required pursuant to GAAP or otherwise, of
any such Indebtedness or other obligation on the balance sheet of such Person
(and "incurrence," "incurred," "incurable" and "incurring" shall have meanings
correlative to the foregoing), provided that the accrual of interest (whether
such interest is payable in cash or in kind) and the accretion of original issue
discount shall not be deemed an incurrence of Indebtedness, provided, further,
that:
(1) any Indebtedness or Capital Stock of a Person existing at
the time such Person becomes (after the Issue Date) a Restricted
Subsidiary (whether by merger, consolidation, acquisition or otherwise)
of the Company shall be deemed to be incurred or issued, as the case
may be, by such Restricted Subsidiary at the time it becomes a
Restricted Subsidiary of the Company; and
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(2) any amendment, modification or waiver of any document
pursuant to which Indebtedness was previously incurred shall not be
deemed to be an incurrence of Indebtedness unless and then only to the
extent such amendment, modification or waiver increases the principal
or premium thereof or interest rate thereon (including by way of
original issue discount).
"Indebtedness" means, with respect to any Person, at any date, any of
the following, without duplication:
(1) any liability, contingent or otherwise, of such Person (a)
for borrowed money (whether or not the recourse of the lender is to the
whole of the assets of such Person or only to a portion thereof), (b)
evidenced by a note, bond, debenture or similar instrument or letters
of credit (including a purchase money obligation) or (c) for the
payment of money relating to a Capitalized Lease Obligation or other
obligation (whether issued or assumed) relating to the deferred
purchase price of property, but excluding trade accounts payable of
such Person arising in the ordinary course of business;
(2) all conditional sale obligations and all obligations under
any title retention agreement (even if the rights and remedies of the
seller under such agreement in the event of default are limited to
repossession or sale of such property), but excluding trade accounts
payable of such Person arising in the ordinary course of business;
(3) all obligations for the reimbursement of any obligor on
any letter of credit, banker's acceptance or similar credit transaction
entered into in the ordinary course of business;
(4) all Indebtedness of others secured by (or for which the
holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien on any asset or property
(including, without limitation, leasehold interests and any other
tangible or intangible property) of such Person, whether or not such
Indebtedness is assumed by such Person or is not otherwise such
Person's legal liability; provided, that if the obligations so secured
have not been assumed by such Person or are otherwise not such Person's
legal liability, the amount of such Indebtedness for the purposes of
this definition shall be limited to the lesser of the amount of such
Indebtedness secured by such Lien or the fair market value of the
assets or property securing such Lien;
(5) all Indebtedness of others (including all dividends of
other Persons the payment of which is) guaranteed, directly or
indirectly, by such Person or that is otherwise its legal liability or
which such Person has agreed to purchase or repurchase or in respect of
which such Person has agreed contingently to supply or advance funds;
(6) all Disqualified Stock issued by such Person with the
amount of Indebtedness represented by such Disqualified Capital Stock
being equal to the greater of its voluntary or involuntary liquidation
preference and its maximum fixed repurchase price, but excluding
accrued dividends if any;
(7) all obligations under Currency Agreements and Interest
Rate Protection Agreements; and
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(8) all Attributable Indebtedness in respect of Sale and
Leaseback Transactions entered into by such person.
For purposes hereof, the "maximum fixed repurchase price" of any
Disqualified Capital Stock which does not have a fixed repurchase price shall be
calculated in accordance with the terms of such Disqualified Capital Stock as if
such Disqualified Capital Stock were purchased on any date on which Indebtedness
shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified
Capital Stock, such fair market value shall he determined reasonably and in good
faith by the Board of Directors of the issuer of such Disqualified Capital
Stock.
The amount of Indebtedness of any Person at any date shall be the
outstanding balance without duplication at such date of all unconditional
obligations as described above and the maximum liability, upon the occurrence of
the contingency giving rise to the obligation, of any contingent obligations at
such date, provided that the amount outstanding at any time of any Indebtedness
issued with original issue discount is the full amount of such Indebtedness less
the remaining unamortized portion of the original issue discount of such
Indebtedness at such time as determined in accordance with GAAP.
For the avoidance of doubt, neither the Operating Agreement nor the
obligations thereunder shall constitute "Indebtedness" for the purposes of this
Indenture or the Securities.
"Indenture" means this Indenture as originally executed or as amended
or supplemented from time to time and shall include the forms and terms of the
Securities established as contemplated hereunder.
"Indirect Participant" means a person who holds an interest through a
Participant.
"Initial Global Securities" means the Regulation S Global Securities
and the Rule 144A Global Securities, each of which contains a Restricted
Securities Legend.
"Initial Securities" has the meaning ascribed to it in the second
introductory paragraph of this Indenture.
"interest", when used in this Indenture, includes additional interest
which may be payable pursuant to a Registration Rights Agreement.
"Interest Rate Protection Agreement" means any interest rate protection
agreement, interest rate future agreement, interest rate option agreement,
interest rate swap agreement, interest rate cap agreement, interest rate collar
agreement, interest rate hedge agreement or other similar agreement or
arrangement designed to protect a Person or any Restricted Subsidiary against
fluctuations in interest rates to or under which such Person or any Restricted
Subsidiary of such Person is a party or a beneficiary on the Issue Date or
becomes a party or a beneficiary thereafter.
"Investment" means, with respect to any Person, all investments by such
Person in other Persons (including Affiliates) in the form of any direct or
indirect advance, loan (other than advances to customers in the ordinary course
of business) or other extension of credit (including
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by way of guarantee or similar arrangement, but excluding any debt or extension
of credit represented by a bank deposit other than a time deposit) or capital
contribution to (by means of any transfer of cash or other property to others or
any payment for property or services for the account or use of others), or any
purchase or acquisition of Capital Stock, Indebtedness or other similar
instruments issued by, such Person and all other items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP;
provided that none of the following will be deemed to be an Investment:
(1) Hedging Obligations entered into in the ordinary course of
business and in compliance with this Indenture;
(2) endorsements of negotiable instruments and documents in
the ordinary course of business; and
(3) an acquisition of assets, Capital Stock or other
securities by the Company or a Subsidiary for consideration to the
extent such consideration consists of common equity securities of the
Company.
For purposes of Section 3.11 hereof,
(1) "Investment" will include the portion (proportionate to
the Company's equity interest in a Restricted Subsidiary to be
designated as an Unrestricted Subsidiary) of the fair market value of
the net assets of such Restricted Subsidiary of the Company at the time
that such Restricted Subsidiary is designated an Unrestricted
Subsidiary; provided, however, that upon a redesignation of such
Subsidiary as a Restricted Subsidiary, the Company will be deemed to
continue to have a permanent "Investment" in an Unrestricted Subsidiary
in an amount (if positive) equal to (a) the Company's "Investment" in
such Subsidiary at the time of such redesignation less (b) the portion
(proportionate to the Company's equity interest in such Subsidiary) of
the fair market value of the net assets (as conclusively determined by
the Board of Directors of the Company in good faith) of such Subsidiary
at the time that such Subsidiary is so re-designated a Restricted
Subsidiary; and
(2) any property transferred to or from an Unrestricted
Subsidiary will be valued at its fair market value at the time of such
transfer, in each case as determined in good faith by the Board of
Directors of the Company. If the Company or any Restricted Subsidiary
of the Company sells or otherwise disposes of any Voting Stock of any
Restricted Subsidiary of the Company such that, after giving effect to
any such sale or disposition, such entity is no longer a Subsidiary of
the Company, the Company shall be deemed to have made an Investment on
the date of any such sale or disposition equal to the fair market value
(as conclusively determined by the Board of Directors of the Company in
good faith) of the Capital Stock of such Subsidiary not sold or
disposed of.
"Investment Grade" means:
(1) with respect to S&P, any of the rating categories from and
including AAA to and including BBB-; and
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(2) with respect to Moody's, any of the rating categories from
and including Aaa to and including Baa3.
"Issue Date" means the date of this Indenture.
"Lien" means, with respect to any Person, any mortgage, pledge, lien,
encumbrance, easement, restriction, covenant, right-of-way, charge or adverse
claim affecting title or resulting in an encumbrance against real or personal
property of such Person, or a security interest of any kind, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option, right of first refusal or other similar agreement to sell,
in each case securing obligations of such Person and any filing of or agreement
to give any financing statement under the Uniform Commercial Code (or equivalent
statute or statutes) of any jurisdiction but excluding any such filing or
agreement which reflects ownership by a third party of
(1) property leased to the referent Person or any of its
Restricted Subsidiaries under a lease that is not in the nature of a
conditional sale or title retention agreement or
(2) accounts, general intangibles or chattel paper sold to the
referent Person.
"Material Subsidiary" means, at any date of determination, any
Subsidiary of the Company that, together with its Subsidiaries,
(1) for the most recent fiscal year of the Company accounted
for more than 5% of the consolidated revenues of the Company or
(2) as of the end of such fiscal year, was the owner of more
than 5% of the consolidated assets of the Company, all as set forth on
the most recently available consolidated financial statements of the
Company and its consolidated Subsidiaries for such fiscal year prepared
in conformity with GAAP.
"Maturity Date" means March 15, 2010.
"Moody's" means Xxxxx'x Investors Service, Inc. and its successors.
"Net Available Proceeds" from any Asset Disposition by any Person means
cash or readily marketable Cash Equivalents received (including by way of sale
or discounting of a note, installment receivable or other receivable, but
excluding any other consideration received in the form of assumption by the
acquirer of Indebtedness or other obligations relating to such properties or
assets or received in any other non-cash form) therefrom by such Person,
including any cash received by way of deferred payment or upon the monetization
or other disposition of any non-cash consideration (including notes or other
securities) received in connection with such Asset Disposition, net of:
(1) all legal, title and recording tax expenses, commissions
and other fees and expenses incurred (including, without limitation,
fees and expenses of accountants, brokers, printers and other similar
entities) and all federal, state, foreign and local taxes required to
be accrued as a liability as a consequence of such Asset Disposition;
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(2) all payments made by such Person or its Restricted
Subsidiaries on any Indebtedness which is secured by such assets in
accordance with the terms of any Lien upon or with respect to such
assets or which must by the terms of such Lien, or in order to obtain a
necessary consent to such Asset Disposition or by applicable law, be
repaid out of the proceeds from such Asset Disposition;
(3) all payments made with respect to liabilities associated
with the assets which are the subject of the Asset Disposition,
including, without limitation, trade payables and other accrued
liabilities;
(4) appropriate amounts to be provided by such Person or any
Restricted Subsidiary thereof, as the case may be, as a reserve in
accordance with GAAP against any liabilities associated with such
assets and retained by such Person or any Restricted Subsidiary
thereof, as the case may be, after such Asset Disposition, including,
without limitation, liabilities under any indemnification obligations
and severance and other employee termination costs associated with such
Asset Disposition, until such time as such amounts are no longer
reserved or such reserve is no longer necessary (at which time any
remaining amounts will become Net Available Proceeds to be allocated in
accordance with the provisions of clause (3) of Section 3.12 hereof;
and
(5) all distributions and other payments, made to minority
interest holders, if any, in Restricted Subsidiaries of such Person or
joint ventures as a result of such Asset Disposition.
"Non-U.S. Person" means a person who is not a U.S. person, as defined
in Regulation S under the Securities Act.
"Offer to Purchase" means a written offer (the "Offer") sent by the
Company by first class mail, postage prepaid, to each Holder at its address
appearing in the Securities Register on the date of the Offer, offering to
purchase up to the principal amount of the Securities in such Offer at the
purchase price specified in such Offer (as determined pursuant to this
Indenture). Unless otherwise required by applicable law, the Offer shall specify
an expiration date (the "Expiration Date") of the Offer to Purchase which shall
be not less than 30 days nor more than 60 days after the date of such Offer and
a settlement date (the "Purchase Date") for purchase of such Securities within
five Business Days after the Expiration Date. The Company shall notify the
Trustee at least 15 Business Days (or such shorter period as is acceptable to
such Trustee) prior to the mailing of the Offer of the Company's obligation to
make an Offer to Purchase, and the Offer shall be mailed by the Company or, at
the Company's request, by the Trustee in the name and at the expense of the
Company. The Offer shall contain all the information required by applicable law
to be included therein. The Offer shall contain all instructions and materials
necessary to enable such Holders to tender such Securities pursuant to the Offer
to Purchase. The Offer shall also state:
(1) the section of this Indenture pursuant to which the Offer
to Purchase is being made;
(2) the Expiration Date and the Purchase Date;
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(3) the aggregate principal amount of the outstanding
Securities offered to be purchased by the Company pursuant to the Offer
to Purchase (including, if less than 100%, the manner by which such
amount has been determined pursuant to the section of this Indenture
requiring the Offer to Purchase) (the "Purchase Amount");
(4) the purchase price to be paid by the Company for each
$1,000 aggregate principal amount of Securities accepted for payment
(as specified pursuant to this Indenture) (the "Purchase Price");
(5) that the Holder may tender all or any portion of the
Securities registered in the name of such Holder and that any portion
of a Security tendered must be tendered in an integral multiple of
$1,000 principal amount;
(6) the place or places where Securities are to be surrendered
for tender pursuant to the Offer to Purchase;
(7) that interest on any Security not tendered or tendered but
not purchased by the Company pursuant to the Offer to Purchase will
continue to accrue;
(8) that on the Purchase Date the Purchase Price will become
due and payable upon each Security being accepted for payment pursuant
to the Offer to Purchase and that interest thereon shall cease to
accrue on and after the Purchase Date;
(9) that each Holder electing to tender all or any portion of
a Security pursuant to the Offer to Purchase will be required to
surrender such Security at the place or places specified in the Offer
prior to the close of business on the Expiration Date (such Security
being, if the Company or the Trustee so requires, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to
the Company and the Trustee duly executed by the Holder thereof or his
attorney duly authorized in writing);
(10) that Holders will be entitled to withdraw all or any
portion of Securities tendered if the Company (or its Paying Agent)
receives, not later than the close of business on the fifth Business
Day next preceding the Expiration Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder, the
principal amount of the Securities the Holder tendered, the certificate
number of the Security the Holder tendered and a statement that such
Holder is withdrawing all or a portion of his tender;
(11) that (I) if Securities in an aggregate principal amount
less than or equal to the Purchase Amount are duly tendered and not
withdrawn pursuant to the Offer to Purchase, the Company shall purchase
all such Securities and (II) if Securities in an aggregate principal
amount in excess of the Purchase Amount are tendered and not withdrawn
pursuant to the Offer to Purchase, the Company shall purchase
Securities having an aggregate principal amount equal to the Purchase
Amount on a pro rata basis (with such adjustments as may be deemed
appropriate so that only Securities in denominations of $1,000 or
integral multiples thereof shall be purchased); and
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(12) that in the case of any Holder whose Security is
purchased only in part, the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without
service charge, a new Security or Securities of any authorized
denomination as requested by such Holder, in an aggregate principal
amount equal to and in exchange for the unpurchased portion of the
Security or Securities so tendered.
An Offer to Purchase shall be governed by and effected in accordance
with the provisions above pertaining to any Offer.
"Officer" means the Chairman of the Board, the President, the Chief
Financial Officer, any Executive Vice President, Senior Vice President or Vice
President, the Treasurer, any Assistant Treasurer, the Controller, the Secretary
or any Assistant Secretary.
"Officer's Certificate," when used with respect to the Company, means a
certificate signed by an Officer who must be the Chairman of the Board, the
President, the Chief Financial Officer, any Executive Vice President, Senior
Vice President or Vice President, the Treasurer, any Assistant Treasurer or the
Controller of the Company.
"Operating Agreement" means the Operating Agreement dated as of May 23,
1995, between the Company and Xxxx Credit Corporation, as amended.
"Opinion of Counsel" means a written opinion from legal counsel who is
reasonably acceptable to the Trustee. Such counsel may be an employee of or
counsel to the Company.
"Outstanding," when used with respect to Securities, means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(1) Securities theretofore cancelled by the Trustee or
delivered to the Trustee for cancellation;
(2) Securities, or portions thereof, for whose payment or
redemption money or U.S. Government Obligations, in the necessary
amount has been theretofore deposited with the Trustee or any Paying
Agent (other than the Company) in trust or set aside and segregated in
trust (if the Company shall act as its own Paying Agent) for the
Holders of such Securities; provided that, if such Securities are to be
redeemed, notice of such redemption has been duly given pursuant to
this Indenture or provisions therefor satisfactory to the Trustee have
been made;
(3) Securities, except to the extent provided in Sections 8.4
and 8.5 hereof, with respect to which the Company has effected
defeasance and/or covenant defeasance as provided in Article VIII
hereof; and
(4) Securities which have been paid pursuant to Section 2.12
hereof or in exchange for or in lieu of which other Securities have
been authenticated and delivered pursuant to this Indenture, other than
any such Securities in respect of which there shall have been presented
to the Trustee proof satisfactory to it that such Securities are held
by a bona fide purchaser in whose hands such Securities are valid
obligations of the Company; provided, however, that in determining
whether the Holders of the requisite
-20-
principal amount of the Outstanding Securities have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
or whether sufficient funds are available for redemption or for any
other purpose and for the purpose of making the calculations required
by Section 313 of the Trust Indenture Act, Securities owned by the
Company or any other obligor upon the Securities or any Affiliate of
the Company or of such other obligor shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee
shall be protected in making such calculation or in relying upon any
such request, demand, authorization, direction, notice, consent or
waiver, only Securities which a Responsible Officer of the Trustee
actually knows to be so owned shall be so disregarded. Securities so
owned which have been pledged in good faith may be regarded as
Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee's right so to act with respect to such Securities
and that the pledgee is not the Company or any other obligor upon the
Securities or any Affiliate of the Company or of such other obligor.
"Participant" means, with respect to DTC, a Person who has an account
with DTC.
"Paying Agent" has the meaning provided in Section 2.3 hereof, except
that, for the purposes of Article Eight, the Paying Agent shall not be the
Company or a Subsidiary of the Company or an Affiliate of any of them.
"Permitted Investments" means:
(1) Investments in marketable, direct obligations issued or
guaranteed by the United States of America, or any governmental entity
or agency or political subdivision thereof (provided, that the good
faith and credit of the United States of America is pledged in support
thereof), maturing within one year of the date of purchase;
(2) Investments in commercial paper issued by corporations or
financial institutions maturing within 180 days from the date of the
original issue thereof, and rated "P-1" or better by Moody's or "A-1"
or better by S&P or an equivalent rating or better by any other
nationally recognized securities rating agency;
(3) Investments in certificates of deposit issued or
acceptances accepted by or guaranteed by any bank or trust company
organized under the laws of the United States of America or any state
thereof or the District of Columbia, in each case having capital,
surplus and undivided profits totaling more than $500,000,000, maturing
within one year of the date of purchase;
(4) deposits, including interest-bearing deposits, maintained
in the ordinary course of business in banks;
(5) any acquisition of the Capital Stock of any Person;
provided, that after giving effect to any such acquisition such Person
shall become a Restricted Subsidiary of the Company;
-21-
(6) trade receivables and prepaid expenses, in each case
arising in the ordinary course of business; provided, that such
receivables and prepaid expenses would be recorded as assets of such
Person in accordance with GAAP;
(7) endorsements for collection or deposit in the ordinary
course of business by such Person of bank drafts and similar negotiable
instruments of such other Person received as payment for ordinary
course of business trade receivables;
(8) any interest swap or hedging obligation with an
unaffiliated Person otherwise permitted by this Indenture (including,
without limitation, any Currency Agreement and any Interest Rate
Protection Agreement otherwise permitted by this Indenture);
(9) Investments received as consideration for an Asset
Disposition in compliance with Section 3.12 hereof;
(10) Investments for which the sole consideration provided is
Qualified Capital Stock of the Company; provided, that the issuance of
such Qualified Capital Stock is not included in the calculation set
forth in clause (3) of the first paragraph of Section 3.11 hereof;
(11) loans and advances to employees made in the ordinary
course of business;
(12) Investments outstanding on the Issue Date;
(13) Investments in the Company or a Restricted Subsidiary;
(14) Investments in securities of trade creditors, suppliers
or customers received pursuant to any plan of reorganization or similar
arrangement upon bankruptcy or insolvency of such trade creditor,
supplier or customer;
(15) Investments made by the Company in Xxxx Credit
Corporation required pursuant to the Operating Agreement;
(16) Investments in any Person after the Issue Date in an
aggregate amount not in excess of $150.0 million at any one time
outstanding; and
(17) Investments in publicly traded equity or publicly traded
Investment Grade debt obligations issued by a corporation (other than
the Company or an affiliate of the Company) organized under the laws of
any State of the United States of America and subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act in an aggregate
amount not in excess of $10.0 million at any one time outstanding.
"Permitted Joint Venture" means any Person which is not a Restricted
Subsidiary and which is, directly or indirectly, through its subsidiaries or
otherwise, engaged principally in a Related Business, and the Capital Stock of
which is owned by the Company or its Restricted Subsidiaries, on the one hand,
and one or more Persons other than the Company or any Affiliate of the Company,
on the other hand.
-22-
"Permitted Liens" mean:
(1) Liens for taxes, assessments and governmental charges
(other than any Lien imposed by the Employee Retirement Income Security
Act of 1974, as amended) that are not yet delinquent or are being
contested in good faith by appropriate proceedings promptly instituted
and diligently conducted and for which adequate reserves have been
established or other provisions have been made in accordance with
generally accepted accounting principles;
(2) statutory mechanics', workmen's, materialmen's, operators'
or similar Liens imposed by law and arising in the ordinary course of
business for sums which are not yet due or are being contested in good
faith by appropriate proceedings promptly instituted and diligently
conducted and for which adequate reserves have been established or
other provisions have been made in accordance with generally accepted
accounting principles;
(3) minor imperfections of, or encumbrances on, title that do
not impair the value of property for its intended use;
(4) Liens (other than any Lien under the Employee Retirement
Income Security Act of 1974, as amended) incurred or deposits made in
the ordinary course of business in connection with workers'
compensation, unemployment insurance and other types of social
security;
(5) Liens incurred or deposits made to secure the performance
of tenders, bids, leases, statutory or regulatory obligations, bankers'
acceptances, surety and appeal bonds, government contracts, performance
and return of money bonds and other obligations of a similar nature
incurred in the ordinary course of business (exclusive of obligations
for the payment of borrowed money);
(6) easements, rights-of-way, municipal and zoning ordinances
and similar charges, encumbrances, title defects or other
irregularities that do not materially interfere with the ordinary
course of business of the Company or of any of its Restricted
Subsidiaries;
(7) Liens (including extensions and renewals thereof) upon
real or tangible personal property acquired after the Issue Date;
provided, that
(a) such Lien is created solely for the purpose of
securing Indebtedness that is incurred in accordance with this
Indenture to finance the cost (including the cost of
improvement or construction) of the item of property or assets
subject thereto and such Lien is created prior to, at the time
of or within 180 days after the later of the acquisition, the
completion of construction or the commencement of full
operation of such property,
(b) the principal amount of the Indebtedness secured
by such Lien does not exceed 100% of such cost and
-23-
(c) any such Lien shall not extend to or cover any
property or assets of the Company or of any Restricted
Subsidiary of the Company other than such item of property or
assets and any improvements on such item;
(8) leases or subleases granted to others that do not
materially interfere with the ordinary course of business of the
Company or of any Restricted Subsidiary of the Company;
(9) any interest or title of a lessor in the property subject
to any Capitalized Lease Obligation, provided that any transaction
related thereto otherwise complies with this Indenture;
(10) Liens arising from filing Uniform Commercial Code
financing statements regarding leases;
(11) Liens arising from the rendering of a final judgment or
order against the Company or any Restricted Subsidiary of the Company
that does not give rise to an Event of Default;
(12) Liens securing reimbursement obligations with respect to
letters of credit incurred in accordance with this Indenture that
encumber documents and other property relating to such letters of
credit and the products and proceeds thereof;
(13) Liens in favor of the Trustee arising under this
Indenture;
(14) any lien existing on property, shares of stock or
Indebtedness of a Person at the time such Person becomes a Restricted
Subsidiary of the Company or is merged with or consolidated into the
Company or a Restricted Subsidiary of the Company or at the time of
sale, lease or other disposition of the properties of any Person as an
entirety or substantially as an entirety to the Company or any
Restricted Subsidiary of the Company;
(15) Liens on property of any Subsidiary of the Company to
secure Indebtedness for borrowed money owed to the Company or to
another Restricted Subsidiary of the Company;
(16) Liens in favor of the Company or any Restricted
Subsidiary;
(17) Liens existing on the Issue Date;
(18) Liens in favor of custom and revenue authorities arising
as a matter of law to secure payment of nondelinquent customs duties in
connection with the importation of goods;
(19) Liens encumbering customary initial deposits and margin
deposits, and other Liens incurred in the ordinary course of business
that are within the general parameters customary in the industry, in
each case securing Indebtedness under an Interest Rate Protection
Agreement;
-24-
(20) Liens encumbering deposits made in the ordinary course of
business to secure nondelinquent obligations arising from statutory,
regulatory, contractual or warranty requirements of the Company or its
Restricted Subsidiaries for which a reserve or other appropriate
provision, if any, as shall be required by GAAP shall have been made;
(21) Liens arising out of consignment or similar arrangements
for the sale of goods entered into by the Company or any Restricted
Subsidiary in the ordinary course of business in accordance with
industry practice;
(22) Liens securing Indebtedness which is incurred to
refinance Indebtedness which had been secured by a Lien or Liens
permitted under Section 3.9 hereof and which is incurred in accordance
with the provisions of Section 3.10 hereof; provided that such Liens do
not extend to or cover any property or assets of the Company or any of
its Restricted Subsidiaries not securing the Indebtedness so
refinanced;
(23) Liens securing the Receivables Facility;
(24) Liens granted in connection with any Qualified
Securitization Transaction;
(25) Liens securing Indebtedness incurred by Restricted
Subsidiaries incurred in accordance with the provisions of Section 3.10
hereof; and
(26) in addition to the items referred to in clauses (1)
through (25) above, Liens of the Company and its Restricted
Subsidiaries in an aggregate amount which, when taken together with the
aggregate amount of all other Liens incurred pursuant to this clause
(26) and then outstanding, will not exceed 5% of Consolidated Tangible
Assets.
"Permitted Secured Debt" means (1) Secured Debt existing at the date of
this Indenture; (2) liens on real or personal property acquired, constructed or
improved by the Company or a Restricted Subsidiary after the date of this
Indenture which are created contemporaneously with, or within 12 months after,
the acquisition, construction or improvement to secure all or any part of the
purchase price of such property or the cost of such construction or improvement;
(3) mortgages on property of the Company or a Restricted Subsidiary created
within 12 months of the completion of construction or improvement of any new
plant(s) on such property to secure the cost of such construction or
improvement; (4) liens on property existing at the time the property was
acquired by the Company or any Restricted Subsidiary; (5) liens on the
outstanding shares or indebtedness of a corporation existing at the time such
corporation becomes a Subsidiary; (6) liens on stock (except stock of
Subsidiaries) acquired after the date of this Indenture if the aggregate cost
thereof does not exceed 15% of Consolidated Net Tangible Assets; (7) liens
securing indebtedness of a successor corporation to the Company to the extent
permitted by this Indenture; (8) liens securing indebtedness of a Restricted
Subsidiary at the time it became such; (9) liens securing indebtedness of any
entity outstanding at the time it merged with, or substantially all of its
properties were acquired by, the Company or any Restricted Subsidiary; (10)
liens created, incurred or assumed in connection with an industrial revenue
bond, pollution control bond or similar financing arrangement between the
Company or any Restricted Subsidiary and any federal, state or municipal
government or other governmental
-25-
body or quasi-governmental agency; (11) liens in connection with government or
other contracts to secure progress or advance payments; (12) liens in connection
with taxes or legal proceedings to the extent such taxes or legal proceedings
are being contested or appealed in good faith or are incurred for the purpose of
obtaining a stay or discharge in the course of such proceedings; (13) liens
consisting of mechanics' or materialmen's or similar liens incurred in the
ordinary course of business and easements, rights of way, zoning restrictions,
restrictions on the use of real property and defects and irregularities in title
thereto; (14) liens made in connection with or to secure payment of workers'
compensation, unemployment insurance, or social security obligations; (15) liens
in connection with the Sale and Leaseback Transactions which are not subject to
the limitations set forth in Section 3.13 hereof; (16) mortgages to secure debt
of a Restricted Subsidiary to the Company or to another Restricted Subsidiary;
(17) extensions, renewals or replacements of the foregoing permitted liens to
the extent of the original amounts thereof; and (18) Secured Debt of the Company
and its Restricted Subsidiaries not otherwise permitted or excepted if the sum
of such Secured Debt plus the aggregate value of Sale and Leaseback Transactions
subject to the limitations set forth in Section 3.13(b) hereof, does not exceed
15% of the Consolidated Net Tangible Assets.
"Person" means any individual, corporation, partnership, joint venture,
trust, estate, unincorporated organization, or government or any agency or
political subdivision thereof.
"Place of Payment," when used with respect to the Securities, means the
place or places where the principal of, premium, if any, and interest, if any,
and any other payments on such Securities are payable as specified as
contemplated by Section 2.3 hereof.
"Plan of Liquidation" means, with respect to any Person, a plan
(including by operation of law) that provides for, contemplates or the
effectuation of which is preceded or accompanied by (whether or not
substantially contemporaneously):
(1) the sale, lease, conveyance or other disposition of all or
substantially all of the assets of the referent Person; and
(2) the distribution of all or substantially all of the
proceeds of such sale, lease, conveyance or other disposition and all
or substantially all of the remaining assets of the referent Person to
holders of Capital Stock of the referent Person.
"Preferred Stock" means, as applied to the Capital Stock of any Person,
the Capital Stock of such Person (other than the Common Stock of such Person) of
any class or classes (however designated) that ranks prior, as to the payment of
dividends or as to the distribution of assets upon any voluntary or involuntary
liquidation, dissolution or winding-up of such Person, to shares of Capital
Stock of any other class of such Person.
"Principal Property" means any real property (including building and
other improvements) of the Company or any Restricted Subsidiary, owned currently
or hereafter acquired (other than any pollution control facility, cogeneration
facility or small power production facility) which has a book value in excess of
2% of Consolidated Net Tangible Assets.
-26-
"Qualified Capital Stock" means, with respect to any Person, any
Capital Stock of such Person that is not Disqualified Capital Stock or
convertible into or exchangeable or exercisable for Disqualified Capital Stock.
"Qualified Securitization Transaction" means any transaction or series
of transactions that have been or may be entered into by any of the Restricted
Subsidiaries of the Company in connection with or reasonably related to a
transaction or series of transactions in which any of the Restricted
Subsidiaries of the Company may sell, convey or otherwise transfer to
(1) a Securitization Subsidiary or
(2) any other Person, or may grant a security interest in, any
equipment and related assets (including contract rights) or Receivables
or interests therein secured by the goods or services financed thereby
(whether such Receivables are then existing or arising in the future)
of any of the Restricted Subsidiaries of the Company, and any assets
related thereto including, without limitation, all security or
ownership interests in goods or services financed thereby, the proceeds
of such Receivables, and other assets which are customarily sold or in
respect of which security interests are customarily granted in
connection with securitization transactions involving such assets.
"QIB" means any "qualified institutional buyer", as defined in Rule
144A under the Securities Act.
"Rating Agency" means each of (1) S&P and (2) Moody's.
"Receivables" means any right of payment from or on behalf of any
obligor, whether constituting an account, chattel paper, instrument, general
intangible or otherwise, arising from the financing by any Restricted Subsidiary
of the Company of goods or services, and monies due thereunder, security or
ownership interests in the goods and services financed thereby, records related
thereto, and the right to payment of any interest or finance charges and other
obligations with respect thereto, proceeds from claims on insurance policies
related thereto, any other proceeds related thereto, and any other related
rights.
"Receivables Facility" means the Receivables Purchase Agreement dated
as of March 29, 2001, among Xxxx Asset Funding LLC, as the Seller, Corporate
Receivables Corporation, Twin Towers Inc., Falcon Asset Securitization
Corporation and Park Avenue Receivables Corporation, as Investors, Citibank,
N.A., Deutsche Bank AG, New York Branch, Bank One, NA (Main Office Chicago) and
The Chase Manhattan Bank, as Banks, Citicorp North America, Inc., as Program
Agent, Deutsche Bank AG, New York Branch, as Administrative Agent, Citicorp
North America, Inc., Deutsche Bank AG, New York Branch, Bank One, NA (Main
Office Chicago) and The Chase Manhattan Bank, as Investor Agents, the Company,
as Collection Agent and an Originator and certain subsidiaries of the Company
parties thereto, as Originators; the Purchase and Contribution Agreement, dated
as of March 29, 2001, among the Company and certain of its subsidiaries parties
thereto, as Sellers, and Xxxx Asset Funding LLC, as Purchaser; the Originator
Purchase Agreement Performance Guaranty dated as of March 29, 2001, by the
Company in favor of Xxxx Asset Funding LLC; the Seller Purchase Agreement
Performance Guaranty dated as of March 29, 2001, made by the Company in favor of
Citibank North
-27-
America, Inc., as Program Agent; and related agreements and instruments, each as
amended to the Issue Date and as such agreements and instruments may from time
to time thereafter be amended, restated, supplemented, or otherwise modified,
including any refinancing, refunding, replacement or extension thereof, whether
by the same or any other group of parties.
"Redemption Date," when used with respect to any Security to be
redeemed, means the date fixed for such redemption by or pursuant to this
Indenture.
"Redemption Price," when used with respect to any Security to be
redeemed, in whole or in part, means the price at which it is to be redeemed
pursuant to this Indenture.
"Registration Rights Agreement" means the Registration Rights
Agreement, dated March 6, 2002, as amended from time to time, between Xxxxxxx
Xxxxx Xxxxxx Inc. and the several other parties named therein as initial
purchasers, as initial purchasers, and the Company, and with respect to any
Additional Securities, one or more substantially similar registration rights
agreements as may be entered into between the Company and the other parties
thereto, as such agreement(s) may be amended from time to time.
"Related Business" means any business which is the same as or related,
ancillary or complementary to any of the businesses of the Company and its
Subsidiaries on the date of this Indenture.
"Related Business Assets" means assets used or useful in a Related
Business.
"Remaining Scheduled Payments" means, with respect to each Security to
be redeemed, the remaining scheduled payments of the principal thereof and
interest thereon that would be due after the related Redemption Date if such
Security were not redeemed. However, if such Redemption Date is not an interest
payment date with respect to such Security, the amount of the next succeeding
scheduled interest payment thereon will be reduced by the amount of interest
accrued thereon to such Redemption Date.
"Responsible Officer," when used with respect to the Trustee, shall
mean any officer within the corporate trust department of the Trustee, including
any vice president, any assistant vice president, any trust officer, or any
other officer of the Trustee customarily performing 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 officer's
knowledge of and familiarity with a particular subject and who shall have direct
responsibility for the administration of this Indenture.
"Restricted Securities Legend" means the legend set forth in clause (A)
of Section 2.1(c) hereof.
"Restricted Subsidiary" means any Subsidiary of the Company that is not
an Unrestricted Subsidiary.
"S&P" means Standard & Poor's Ratings Services, a division of The
XxXxxx-Xxxx Companies, Inc., and its successors.
-28-
"Secured Debt" means indebtedness (other than indebtedness among the
Company and Restricted Subsidiaries) for money borrowed, or other indebtedness
on which interest is paid or payable, which is secured by (1) a Lien on any
Principal Property of the Company or a Restricted Subsidiary or on the stock or
indebtedness of a Restricted Subsidiary, or (2) any guarantee of indebtedness of
the Company by a Restricted Subsidiary.
"Securities" has the meaning ascribed to it in the second introductory
paragraph of this Indenture.
"Securities Act" means the Securities Act of 1933, as amended.
"Securitization Subsidiary" means a Subsidiary of the Company which
engages in no activities other than those reasonably related to or in connection
with the entering into of securitization transactions and which is designated by
the Board of Directors of the Company (as provided below) as a Securitization
Subsidiary:
(1) no portion of the Indebtedness or any other obligations
(contingent or otherwise) of which
(a) is guaranteed by the Company or any Restricted
Subsidiary of the Company,
(b) is recourse to or obligates the Company or any
Restricted Subsidiary of the Company in any way other than
pursuant to representations, warranties and covenants
(including those related to servicing) entered into in the
ordinary course of business in connection with a Qualified
Securitization Transaction or
(c) subjects any property or asset of the Company or
any Restricted Subsidiary of the Company (other than those of
a Securitization Subsidiary), directly or indirectly,
continently or otherwise, to any Lien or to the satisfaction
thereof, other than pursuant to representations, warranties
and covenants (including those related to servicing) entered
into in the ordinary course of business in connection with a
Qualified Securitization Transaction;
(2) with which neither the Company nor any Restricted
Subsidiary of the Company
(a) provides any credit support or
(b) has any contract, agreement, arrangement or
understanding other than on terms that are fair and reasonable
and that are no less favorable to the Company or such
Restricted Subsidiary than could be obtained from an unrelated
Person (other than, in the case of subclauses (a) and (b) of
this clause (2), representations, warranties and covenants
(including those relating to servicing) entered into in the
ordinary course of business in connection with a Qualified
Securitization Transaction and intercompany notes relating to
the sale of Receivables to such Securitization Subsidiary);
and
-29-
(3) with which neither the Company nor any Restricted
Subsidiary of the Company has any obligation to maintain or preserve
such Subsidiary's financial condition or to cause such Subsidiary to
achieve certain levels of operating results. Any such designation by
the Board of Directors of the Company shall be evidenced to the Trustee
by filing with the Trustee a certified copy of the resolutions of the
Board of Directors of the Company giving effect to such designation.
"Security Register" means the register of Securities maintained by the
Registrar pursuant to Section 2.3 hereof.
"Shelf Registration Statement" shall have the meaning set forth in the
Registration Rights Agreement.
"Stated Maturity" means, with respect to any security or Indebtedness
of a Person, the date specified therein as the fixed date on which any principal
of such security or Indebtedness is due and payable, including pursuant to any
mandatory redemption provision (but excluding any provision providing for the
repurchase thereof at the option of the holder thereof).
"Subsidiary" of any Person means
(1) a corporation a majority of whose Voting Stock is at the
time, directly or indirectly, owned by such Person, by one or more
Restricted Subsidiaries of such Person or by such Person and one or
more Restricted Subsidiaries of such Person or
(2) any other Person in which such Person, a Restricted
Subsidiary of such Person or such Person and one or more Restricted
Subsidiaries of such Person, directly or indirectly, at the date of
determination thereof, have at least a majority ownership interest.
"TIA" or "Trust Indenture Act" means the Trust Indenture Act of 1939
as in effect on the date of this Indenture, except as provided in Section 9.3
hereof.
"Trustee" means the party named as such in the first paragraph of this
Indenture until a successor Trustee replaces it pursuant to the applicable
provisions of this Indenture, and thereafter means such successor Trustee.
"U.S. Government Obligations" means securities which are (i) direct
obligations of the United States, for the payment of which its full faith and
credit is pledged or (ii) obligations of a Person controlled or supervised by
and acting as an agency or instrumentality of the United States, the payment of
which is unconditionally guaranteed as a full faith and credit obligation by the
United States, which are not callable or redeemable at the option of the issuer
thereof, and shall also include a depositary receipt issued by a bank or trust
company as custodian with respect to any such U.S. Government Obligation or a
specific payment of interest on or principal of any such U.S. Government
Obligation held by such custodian for the account of the holder of a depositary
receipt, provided that (except as required by law) such custodian is not
authorized to make any deduction from the amount payable to the holder of such
depositary receipt from any amount received by the custodian in respect of the
U.S. Government Obligation evidenced by such depositary receipt.
-30-
"United States" means the United States of America (including the
States and the District of Columbia), its territories, its possessions and other
areas subject to its jurisdiction.
"Unrestricted Global Securities" means one or more Global Securities
that do not and are not required to be bear the Restricted Securities Legend.
"Unrestricted Securities" means the Securities that do not and are not
required to bear the Restricted Securities Legend.
"Unrestricted Subsidiary" means:
(1) each of Xxxx Credit Corporation, Diamond Financial
Holdings, Inc., Xxxx Commercial Credit (UK) Limited, DCC Leasing GmbH
and Xxxxxxx Properties Gmbh and their respective Subsidiaries until
such time as it is designated a Restricted Subsidiary pursuant to the
second succeeding sentence;
(2) any Subsidiary of the Company that at the time of
determination shall be designated an Unrestricted Subsidiary by the
Board of Directors of the Company in the manner provided below; and
(3) any Subsidiary of an Unrestricted Subsidiary.
The Board of Directors of the Company may designate any Subsidiary of
the Company (including any newly acquired or newly formed Subsidiary) to be an
Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns
any Capital Stock of, or holds any Lien on any property of, the Company or any
other Restricted Subsidiary of the Company; provided, that either
(1) the Subsidiary to be so designated has total assets of
$1,000 or less or
(2) if such Subsidiary has assets greater than $1,000, such
designation would be permitted under Section 3.11 hereof to the extent
then applicable.
The Board of Directors of the Company may designate any Unrestricted
Subsidiary to be a Restricted Subsidiary; provided, that immediately after
giving effect to such designation (a) if such Unrestricted Subsidiary at such
time has Indebtedness, the Company could incur $1.00 of additional Indebtedness
under clause (1) of Section 3.10 hereof and (b) no Default shall have occurred
and be continuing. Any such designation by the Board of Directors of the Company
shall be evidenced by the Company to the Trustee by promptly filing with the
Trustee a copy of the Board Resolution giving effect to such designation and an
Officer's Certificate certifying that such designation complied with the
foregoing provisions.
"Voting Stock" means, with respect to any Person, securities of any
class or classes of Capital Stock in such Person entitling the holders thereof
(whether at all times or only so long as no senior class of stock has voting
power by reason of any contingency) to vote in the election of members of the
Board of Directors or other governing body of such Person.
SECTION 1.2. Other Definitions
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Term Defined in Section
"Affiliate Transaction"........................................ 3.15
"Asset Sale Offer Trigger Date"................................ 3.12
"Change of Control Offer"...................................... 3.17
"Change of Control Payment".................................... 3.17
"Change of Control Payment Date"............................... 3.17
"Covenant Defeasance".......................................... 8.5
"Defaulted Interest"........................................... 2.12
"Defeasance"................................................... 8.4
"Definitive Securities"........................................ 2.1(a)
"Exchange Global Security"..................................... 2.1(a)
"Global Securities"............................................ 2.1(a)
"IAI Certificate".............................................. 2.7
"IAI Definitive Securities".................................... 2.1(a)
"IAIs"......................................................... 2.1(a)
"IAI Security"................................................. 2.1(a)
"Initial Purchasers"........................................... 2.1(a)
"Investment Grade Rating Event"................................ 3.1
"Legal Holiday"................................................ 10.8
"Registrar".................................................... 2.3
"Regulation S"................................................. 2.1(a)
"Regulation S Certificate"..................................... 2.8
"Regulation S Definitive Securities"........................... 2.1(a)
"Regulation S Global Security"................................. 2.1(a)
"Regulation S Security"........................................ 2.1(a)
"Resale Restriction Termination Date".......................... 2.1(c)
"Restricted Payment"........................................... 3.11(a)
"Rule 144A".................................................... 2.1(a)
"Rule 144A Definitive Securities".............................. 2.1(a)
"Rule 144A Global Security".................................... 2.1(a)
"Rule 144A Security"........................................... 2.1(a)
"Sale and Leaseback Transaction"............................... 3.13
"Special Record Date".......................................... 2.12(a)
"Standard No. 76".............................................. 8.8
"Subsidiary Guarantee"......................................... 3.16(a)
"Subsidiary Guarantor"......................................... 3.16(a)
"Unutilized Net Available Proceeds"............................ 3.12
SECTION 1.3. Incorporation by Reference of Trust Indenture Act. This
Indenture is subject to the mandatory provisions of the TIA which are
incorporated by reference in and made a part of this Indenture. The following
TIA terms have the following meanings:
"indenture securities" means the Securities.
"indenture security holder" means a Securityholder.
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"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Trustee.
"obligor" on the indenture securities means the Company and any other
obligor on the indenture securities.
All other TIA terms used in this Indenture that are defined by the TIA,
defined in the TIA by reference to another statute or defined by the Commission
rules have the meanings assigned to them by such definitions.
SECTION 1.4. Rules of Construction. For all purposes of this Indenture,
except as otherwise expressly provided or unless the context otherwise requires:
(a) a term has the meaning assigned to it;
(b) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;
(c) "or" is not exclusive;
(d) "including" means including without limitation;
(e) words in the singular include the plural and words in the plural
include the singular; and
(f) the words "herein," "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.
ARTICLE II
THE SECURITIES
SECTION 2.1. Form, Dating and Terms
(a) The Initial Securities are being offered and sold by the Company
pursuant to a Purchase Agreement, dated March 6, 2002, between Xxxxxxx Xxxxx
Xxxxxx Inc. and the several other initial purchasers named therein, as initial
purchasers (collectively, the "Initial Purchasers") and the Company. The Initial
Securities issued on the date hereof will be in an aggregate principal amount of
$250,000,000. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture, Additional Securities. The
Initial Securities and Additional Securities will be resold initially only to
(A) QIBs in reliance on Rule 144A under the Securities Act ("Rule 144A") and (B)
Non-U.S. Persons in reliance on Regulation S under the Securities Act
("Regulation S"). Such Initial Securities and Additional Securities may
thereafter be transferred to, among others, QIBs, Non-U.S. Persons and
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institutional "accredited investors" (as defined in Rules 501(a)(1), (2), (3)
and (7) under the Securities Act who are not QIBs ("IAIs")) in accordance with
the procedures set forth herein.
Initial Securities and Additional Securities offered and sold to QIBs
in the United States in reliance on Rule 144A (each, a "Rule 144A Security")
will be issued in the form of a global Security, without interest coupons,
substantially in the form of Exhibit A hereto, which is hereby incorporated by
reference and made a part of this Indenture, including appropriate legends as
set forth in Section 2.1(c) hereof (a "Rule 144A Global Security"), deposited
with DTC (or to or for the benefit of its nominee), duly executed by the Company
and authenticated by the Trustee as hereinafter provided. The Rule 144A Global
Securities representing the Initial Securities or Additional Securities may be
represented by more than one certificate, if so required by DTC's rules
regarding the maximum principal amount to be represented by a single
certificate. The aggregate principal amount of the Rule 144A Global Security may
from time to time be increased or decreased by adjustments made on the records
of DTC as hereinafter provided.
Initial Securities and Additional Securities offered and sold outside
the United States in reliance on Regulation S (each, a "Regulation S Security")
will be issued in the form of a global Security, without interest coupons,
substantially in the form set forth in Exhibit A hereto, including appropriate
legends as set forth in Section 2.1(c) hereof (a "Regulation S Global
Security"), deposited with DTC (or to or for the benefit of its nominee), duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The Regulation S Global Securities representing the Initial Securities
or Additional Securities may be represented by more than one certificate, if so
required by the Depositary's rules regarding the maximum principal amount to be
represented by a single certificate. The aggregate principal amount of the
Regulation S Global Security may from time to time be increased or decreased by
adjustments made on the records of Depositary as hereinafter provided.
Securities that may be resold to IAIs in the United States (each, an
"IAI Security"), will be issued in the form of definitive fully registered
Securities, without interest coupons, substantially in the form set forth in
Exhibit A hereto, including appropriate legends as set forth in Section 2.1(c)
hereof, duly executed by the Company and authenticated by the Trustee as
hereinafter provided and delivered to the respective IAIs.
Exchange Securities exchanged for interests in the Rule 144A Security,
the Regulation S Security and the IAI Security, if any, will be issued in the
form of a permanent global Security substantially in the form of Exhibit B
hereto, which is hereby incorporated by reference and made a part of this
Indenture, deposited with DTC (or to or for the benefit of its nominee), as
hereinafter provided, including the appropriate legend set forth in Section
2.1(c) hereof each, an "Exchange Global Security"). The Exchange Global
Securities may be represented by more than one certificate, if so required by
the Depositary's rules regarding the maximum principal amount to be represented
by a single certificate. The aggregate amount of the Exchange Global Security
may from time to time be increased or decreased by adjustments made on the
records of the Depositary as hereinafter provided.
Each Rule 144A Global Security, each Regulation S Global Security and
each Exchange Global Security are sometimes collectively herein referred to as
the "Global Securities."
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Securities issued pursuant to Section 2.1(d)(vii) hereof in exchange
for or upon transfer of beneficial interests in a Global Security may be in the
form of permanent certificated Securities, without interest coupons, in
substantially the form set forth in Exhibit A or Exhibit B, as appropriate,
including appropriate legends set forth in Section 2.1(c) hereof (the
"Definitive Securities"). Definitive Securities issued in exchange for
beneficial interests in the Rule 144A Global Security as hereinafter referred to
as "Rule 144A Definitive Securities." Definitive Securities issued in exchange
for beneficial interests in the Regulation S Global Security are hereinafter
referred to as "Regulation S Definitive Securities." Definitive Securities
issued to IAIs are hereinafter referred to as "IAI Definitive Securities."
The Securities may have notations, legends or endorsements required by
law, stock exchange rule or usage, in addition to those set forth on Exhibits A
and B hereto and in Section 2.1(c) hereof. The Company and the Trustee shall
approve the forms of the Securities and any notation, endorsement or legend on
them. Each Security shall be dated the date of its authentication. The terms of
the Securities set forth in Exhibits A and B hereto are part of the terms of
this Indenture and, to the extent applicable, the Company and the Trustee, by
their execution and delivery of this Indenture, expressly agree to be bound by
such terms.
(b) Denominations. The Securities shall be issuable only in
fully registered form, without interest coupons, and in denominations of $1,000
and integral multiples of $1,000 in excess thereof.
(c) Restrictive Legends. Unless and until (i) an Initial
Security or an Additional Security is sold under an effective registration
statement or (ii) an Initial Security or an Additional Security is exchanged for
an Exchange Security in connection with an effective registration statement, in
each case pursuant to a Registration Rights Agreement or a similar agreement,
(A) each Rule 144A Global Security, each Regulation S Global
Security and each IAI Security shall bear the following legend (the "Restricted
Securities Legend") on the face thereof:
"THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OR OTHER JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH
REGISTRATION UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
SUCH REGISTRATION. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF
AGREES, ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR
WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER
SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION
DATE") THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE
HEREOF AND THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE
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ISSUER WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH
SECURITY), ONLY (A) TO THE ISSUER, (B) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT,
(C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES
IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF
A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS
AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF
REGULATION S UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL
"ACCREDITED INVESTOR" WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR
(7) UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED
INVESTOR, IN EACH CASE IN A TRANSACTION INVOLVING A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT
WITH A VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION
IN VIOLATION OF THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE TRUSTEE'S RIGHT PRIOR
TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES (D), (E) AND
(F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL
BE REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION
TERMINATION DATE", and
(B) The Global Securities shall bear the following legend on the face
thereof:
"THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO. UNLESS THIS CERTIFICATE IS PRESENTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR ITS AGENT
FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
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TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR
SUCH SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE
RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF."
(d) Book-Entry Provisions for Global Securities.
(i) The Global Securities initially shall (A) be
registered in the name of the Depositary or the nominee of
such Depositary, (B) be deposited with, or on behalf of, the
Depositary or with the Trustee, as custodian for the
Depositary, (C) bear the Global Security legends set forth in
Section 2.1(c). The Depositary shall be DTC unless the Company
appoints a successor Depositary by delivery of a Company Order
to the Trustee specifying such successor Depositary.
(ii) The Depositary or its nominee shall be the
Holder of the Global Securities, and owners of beneficial
interests in the Securities represented by the Global
Securities shall hold such interest pursuant to the Applicable
Procedures. Any such owner's beneficial ownership of any such
Securities will be shown only on, and the transfer of such
ownership interest shall be effected only through, records
maintained by the Depositary or its nominee.
(iii) All payments on a Global Security will be made
to the Depositary or its nominee, as the case may be, as the
registered owner and Holder of such Global Security. The
Company will be fully discharged by payment to or to the order
of such Depositary from any responsibility or liability in
respect of each amount so paid.
(iv) Unless and until it is exchanged in whole or in
part for a Global Security in certificated form, a Global
Security may not be transferred except as a whole by the
Depositary or nominee thereof to another nominee of the
Depositary or to a successor of Depositary or a nominee of
such successor.
(v) Owners of beneficial interests in Global
Securities shall be entitled or required, as the case may be,
but only under the circumstances described in Section
2.1(d)(vii), to receive physical delivery of physical
Securities.
(vi) Securities issued in exchange for a Global
Security or any portion thereof pursuant to subsection (vii)
of this Section shall be issued in definitive, fully
registered form, without interest coupons, shall have an
aggregate principal amount equal to that of such Global
Security or portion thereof to be so exchanged, shall be
registered in such names and be in such authorized
denominations as the Depositary shall designate and shall bear
any legends required hereunder. Any Global Security to be
exchanged in whole shall be surrendered by the Depositary to
the Trustee, as Registrar. With regard to any
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Global Security to be exchanged in part, either such Global
Security shall be so surrendered for exchange or, if the
Trustee is acting as custodian for the Depositary or its
nominee with respect to such Global Security, the principal
amount thereof shall be reduced, by an amount equal to the
portion thereof to be so exchanged, by means of an appropriate
adjustment made on the records of the Trustee. Upon any such
surrender or adjustment, the Trustee shall authenticate and
delivery the Security issuable on such exchange to or upon the
order of the Depositary or an authorized representative
thereof. In the event of the occurrence of any of the events
specified in Section 2.1(d)(vii), the Company will promptly
make available to the Trustee a reasonable supply of
Definitive Securities in definitive form.
(vii) Definitive Securities shall be transferred to
all beneficial owners in exchange for their beneficial
interests in a Global Security, (A) if DTC notifies the
Company that it is unwilling or unable to continue to act as a
clearing agency for the Global Security or ceases to be a
"Clearing Agency" registered under the Exchange Act or (B) if
the Depositary or the owner of a Book-Entry Interest so
requests such exchange in writing delivered through the
applicable Depositary following an Event of Default. In
connection with a transfer of an entire Global Security to
beneficial owners pursuant to this subsection (vii), the
applicable Global Security shall be deemed to be surrendered
to the Trustee for cancellation, and the Company shall
execute, and the Trustee shall authenticate and deliver, to
each beneficial owner identified by the applicable Depositary
in exchange for its beneficial interest in the applicable
Global Security, an equal aggregate principal amount of
Definitive Securities, as the case may be, of authorized
denominations. Definitive Securities shall also be issued in
exchange for interests in Global Securities in connection with
resales of Initial Securities or Additional Securities to
IAIs. Upon any issuance of Definitive Securities in respect of
less than the entire principal amount of a Global Security,
the Depositary shall decrease the aggregate principal amount
of such Global Security by making appropriate notations in its
records and on such Global Security so as to reflect a
decrease equal to the principal amount of Definitive
Securities issued in relation to the interests formerly
represented by such Global Security.
(viii) Any beneficial interest in one of the Global
Securities that is transferred to a person who takes delivery
in the form of an interest in another Global Security will,
upon transfer, cease to be an interest in such Global Security
and become an interest in the other Global Security and,
accordingly, will thereafter be subject to all transfer
restrictions, if any, and other procedures applicable to
beneficial interests in such other Global Security for as long
as it remains such an interest.
(ix) Any Definitive Securities delivered in exchange
for an interest in a Global Security pursuant to subsection
(vii) above shall, except as otherwise provided in Section 2.6
hereof, bear the Restricted Securities Legend, unless such
exchange is made on or after (A) an Initial Security or an
Additional Security is sold pursuant to an effective
registration statement, pursuant to the Registration
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Rights Agreement, (B) an Initial Security or an Additional
Security is exchanged for an Exchange Security in the Exchange
Offer under an effective registration statement, pursuant to
the Registration Rights Agreement, or (C) the Resale
Restriction Termination Date.
(e) Definitive Securities. Except as provided in Section
2.1(d) hereof, owners of beneficial interests in Global Securities will not be
entitled to receive Definitive Securities.
SECTION 2.2. Execution and Authentication. One Officer shall sign the
Securities for the Company by manual or facsimile signature. If an Officer whose
signature is on a Security no longer holds that office at the time the Trustee
authenticates the Security, the Security shall be valid nevertheless, after
giving effect to any exchange of Initial Securities for Exchange Securities.
A Security shall not be valid until an authorized signatory of the
Trustee authenticates the Security manually or by facsimile. The signature of
the Trustee on a Security shall be conclusive evidence that such Security has
been duly and validly authenticated and issued under this Indenture. Securities
shall be dated the date of their authentication.
At any time and from time to time after the execution and delivery of
this Indenture, the Trustee shall authenticate and make available for delivery:
(1) the Initial Securities for issue on the Issue Date in an aggregate principal
amount of $250,000,000, (2) the Additional Securities in an aggregate principal
amount to be determined by the Company, and (3) Exchange Securities for issue
only in an Exchange Offer or registered resale, in each case pursuant to the
Registration Rights Agreement, and only in exchange for the applicable Initial
Securities or the Additional Securities, as the case may be, of the same series
of an equal principal amount, in each case upon a Company Order. Such Company
Order shall specify the amount of the Securities to be authenticated, the date
on which the original issue of Securities are to be authenticated and whether
the Securities are to be Initial Securities, Additional Securities or Exchange
Securities.
With respect to any Additional Securities, the Company shall set forth
in a resolution of its Board of Directors and an Officer's Certificate, the
following information:
(i) the aggregate principal amount of such Additional
Securities to be authenticated and delivered pursuant to this
Indenture; and
(ii) the issue price and the issue date of the
Additional Securities.
All Securities issued under the Indenture (whether Initial Securities,
Additional Securities or Exchange Securities) will be treated as a single series
for all purposes under this Indenture, including, without limitation, waivers,
amendments, redemptions and offers to purchase.
In case the Company, pursuant to Article IV hereof, shall be
consolidated or merged with or into any other Person or shall transfer or lease
all or substantially all of its assets to any Person, and the successor Person
formed by or surviving any such consolidation or any such merger, or to which
such transfer or lease shall have been made, shall have executed an indenture
supplemental hereto with the Trustee pursuant to Article IV hereof, any of the
Securities authenticated or delivered prior to such consolidation, merger,
conveyance, transfer or lease may,
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from time to time, at the request of the successor Person, be exchanged for
other Securities executed in the name of the successor Person with such changes
in phraseology and form as may be appropriate, but otherwise in substance of
like tenor as the Securities surrendered for such exchange and of like principal
amount; and the Trustee, upon Company Order of the successor Person, shall
authenticate and deliver Securities as specified in such order for the purpose
of such exchange. If Securities shall at any time be authenticated and delivered
in any new name of a successor Person pursuant to this Section 2.2 hereof in
exchange or substitution for or upon registration of transfer of any Securities,
such successor Person, at the option of the Holders but without expense to them,
shall provide for the exchange of all Securities at the time Outstanding for
Securities authenticated and delivered in such new name.
SECTION 2.3. Registrar and Paying Agent. The Company shall maintain an
office or agency where Securities may be presented for registration of transfer
or for exchange (the "Registrar") and offices or agencies where Securities may
be presented for payment (the "Paying Agents"). The Registrar shall keep a
register of the Securities and of their transfer and exchange. The Company may
have one or more co-registrars for the Securities. The Company shall cause the
Registrar to maintain an office or agency in the Borough of Manhattan, The City
of New York. The Company shall maintain a Paying Agent for the Securities in the
Borough of Manhattan, The City of New York. The Company may have one or more
additional paying agents. The term "Paying Agent" includes any additional paying
agent.
The Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent or co-registrar not a party to this Indenture, which
shall incorporate the terms of the TIA. The agreement shall implement the
provisions of this Indenture that relate to such agent. The Company shall notify
the Trustee of the name and address of each such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such and shall be
entitled to appropriate compensation therefor pursuant to Section 7.9. The
Company or any wholly owned Subsidiary may act as Paying Agent, Registrar,
co-registrar or transfer agent.
The Company initially appoints the Trustee in New York as the Paying
Agent and Registrar for the Securities.
SECTION 2.4. Paying Agent To Hold Money in Trust. Prior to 10:00 a.m.,
New York City time, on each due date of the principal of or interest on any
Security, the Company shall deposit with the Paying Agents a sum sufficient to
pay such principal or interest when due. The Company shall require each Paying
Agent (other than the Trustee) to agree in writing that such Paying Agent shall
hold in trust for the benefit of Securityholders or the Trustee all money held
by such Paying Agent for the payment of principal of or interest on the
Securities and shall notify the Trustee in writing of any default by the Company
in making any such payment. If the Company acts as Paying Agent, it shall
segregate the money held by it as Paying Agent and hold it as a separate trust
fund. The Company at any time may require a Paying Agent (other than the
Trustee) to pay all money held by it to the Trustee and to account for any funds
disbursed by such Paying Agent. Upon complying with this Section, the Paying
Agent (if other than the Company) shall have no further liability for the money
delivered to the Trustee. Upon any bankruptcy, reorganization or similar
proceeding with respect to the Company, the Trustee shall serve as Paying Agent
for the Securities.
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SECTION 2.5. Securityholder 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 Securityholders. If the Trustee is not the
Registrar, or to the extent otherwise required under the TIA, the Company shall
furnish to the Trustee, in writing 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 Securityholders.
SECTION 2.6. Transfer and Exchange.
(a) The following provisions shall apply with respect to any
proposed transfer of a Security (which is not an Exchange Security) or a
beneficial interest therein prior to the date which is two years after the later
of the date of its original issue and the last date on which the Company or any
affiliate of the Company was the owner of such Securities (or any predecessor
thereto) (the "Resale Restriction Termination Date"):
(i) a transfer of a Security or a beneficial interest
therein to a QIB shall be made upon the representation of the
transferee in the form as set forth on the reverse of the
Security that it is purchasing for its own account or an
account with respect to which it exercises sole investment
discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A, and is
aware that the sale to it is being made in reliance on Rule
144A and acknowledges that it has received such information
regarding the Company as the undersigned has requested
pursuant to Rule 144A or has determined not to request such
information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim
the exemption from registration provided by Rule 144A;
(ii) a transfer of a Security or a beneficial
interest therein to an IAI shall be made upon receipt by the
Trustee or its agent of a certificate substantially in the
form set forth in Section 2.7 hereof from the proposed
transferee and, if requested by the Company, the delivery of
an opinion of counsel, certification and/or other information
satisfactory to it;
(iii) a transfer of a Security or a beneficial
interest therein to a Non-U.S. Person in reliance upon
Regulation S shall be made upon receipt by the Trustee or its
agent of a certificate substantially in the form set forth in
Section 2.8 hereof from the proposed transferee and, if
requested by the Company, the delivery of an opinion of
counsel, certification and/or other information satisfactory
to it.
(b) Adjustments to Principal Amounts of Global Securities.
Upon any transfer of an interest in a Regulation S Global Security for an
interest in a Rule 144A Global Security, the aggregate principal amount of the
Regulation S Global Security will be decreased by an amount equal to the
interest being transferred and the aggregate principal amount of the Rule 144A
Global Security will be increased by a corresponding amount by adjustments made
on the records maintained by the relevant Depositary. Upon any transfer of an
interest in a Rule 144A Global Security for an interest in a Regulation S Global
Security, the aggregate principal amount of the Rule 144A Global Security will
be decreased by an amount equal to the interest
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being transferred and the aggregate principal amount of the Regulation S Global
Security will be increased by a corresponding amount by adjustments made on the
records maintained by the relevant Depositary. Upon the transfer of Securities
represented by a Global Security to an IAI, the aggregate principal amount of
the relevant Global Security shall be decreased by an amount equal to the
principal amount being transferred which shall be represented by newly issued
Definitive Securities by adjustments made on the records maintained by the
relevant Depositary. Upon the transfer of Definitive Securities by an IAI to a
Person which is a QIB or Non-U.S. person wishing to have such Securities
included in the relevant Global Security, such Definitive Securities shall be
cancelled and the aggregate principal amount of the relevant Global Security
shall be increased by an amount equal to the principal amount of the cancelled
Definitive Securities by adjustments made on the records maintained by the
relevant Depositary
(c) Restricted Securities Legend. Upon the transfer, exchange
or replacement of Securities not bearing a Restricted Securities Legend, the
Registrar shall deliver Securities that do not bear a Restricted Securities
Legend. Upon the transfer, exchange or replacement of Securities bearing a
Restricted Securities Legend, the Registrar shall deliver only Securities that
bear a Restricted Securities Legend unless such Securities are sold under an
effective registration statement under the Securities Act or there is delivered
to the Registrar an Opinion of Counsel to the effect that neither such legend
nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act.
(d) Registrar's Records. The Registrar shall retain copies of
all letters, notices and other written communications received pursuant to
Section 2.1 hereof or this Section 2.6. The Company shall have the right to
inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable prior
written notice to the Registrar.
(e) Obligations with Respect to Transfers and Exchanges of
Securities.
(i) To permit registrations of transfers and
exchanges, the Company shall, subject to the other terms and
conditions of this Article II, execute and the Trustee shall
authenticate Definitive Securities and Global Securities at
the request of the Registrar or any co-registrar.
(ii) No service charge shall be made to a Holder for
any registration of transfer or exchange, but the Company may
require payment of a sum sufficient to cover any transfer tax,
assessments, or similar governmental charge payable in
connection therewith (other than any such transfer taxes,
assessments or similar governmental charges payable upon
exchange or transfer.
(iii) A Registrar or co-registrar shall not be
required to register the transfer of or exchange of any
Security for a period beginning (1) 15 days before the mailing
of a notice of an offer to repurchase or redeem Securities and
ending at the close of business on the day of such mailing or
(2) 15 days before an interest payment date and ending on such
interest payment date.
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(iv) Prior to the due presentation for registration
of transfer of any Security, the Company and the Trustee and
each Paying Agent and Registrar or any co-registrar may deem
and treat the person in whose name a Security is registered as
the absolute owner of such Security for the purpose of
receiving payment of principal of and interest on such
Security and for all other purposes whatsoever, whether or not
such Security is overdue, and none of the Company, the
Trustee, the Paying Agents, the Registrar or any co-registrar
shall be affected by notice to the contrary.
(v) All Securities issued upon any transfer or
exchange pursuant to the terms of this Indenture shall
evidence the same debt and shall be entitled to the same
benefits under this Indenture as the Securities surrendered
upon such transfer or exchange.
(f) No Obligation of the Trustee. (i) The Trustee shall have
no responsibility or obligation to any beneficial owner of a Global Security, a
member of, or a participant in, any Depositary or other Person with respect to
the accuracy of the records of any Depositary or their nominees or of any
participant or member thereof, with respect to any ownership interest in the
Securities or with respect to the delivery to any participant, member,
beneficial owner or other Person (other than the Depositary) or any notice
(including any notice of redemption) or the payment of any amount or delivery of
any Securities (or other security or property) under or with respect to such
Securities. All notices and communications to be given to the Holders and all
payments to be made to Holders in respect of the Securities shall be given or
made only to or upon the order of the registered Holders (which shall be the
Depositary or its nominees in the case of Global Securities). The rights of
beneficial owners in any Global Security shall be exercised only through the
Depositary subject to the Applicable Procedures. The Trustee may conclusively
rely and shall be fully protected in relying upon information furnished by the
Depositary with respect to its members, participants and any beneficial owners.
(ii) The Trustee shall have no obligation or duty to
monitor, determine or inquire as to compliance with any restrictions on transfer
imposed under this Indenture or under applicable law with respect to any
transfer of any interest in any Security (including any transfers between or
among, participants, members or beneficial owners of the Depositary 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 2.7. Form of Certificate to be Delivered in Connection with
Transfers to Institutional Accredited Investors.
IAI Certificate
CUSIP __________
ISIN __________
Xxxx Corporation
x/x Xxxxxxxx, N.A., as Trustee
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000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Citibank Agency & Trust
Re: Xxxx Corporation
10-1/8% Notes due 2010
Dear Sirs:
This certificate is delivered to request a transfer of $___________
principal amount of the 10-1/8% Notes due 2010 (the notes) of Xxxx Corporation
(the Company).
Upon transfer, the notes would be registered in the name of the new
beneficial owner as follows:
Name:
Address:
Taxpayer ID Number:
The undersigned Transferee represents and warrants to you that:
1. We are an institutional "accredited investor" (as defined in Rule
50l(a)(l), (2), (3) or (7) under the Securities Act of 1933, as amended (the
Securities Act)), purchasing for our own account or for the account of such an
institutional "accredited investor" in each case in a minimum principal amount
of notes of $250,000 and we are acquiring the notes for investment purposes and
not with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act. We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risk of our investment in the notes and we invest in or purchase securities
similar to the notes in the normal course of our business. We and any accounts
for which we are acting are each able to bear the economic risk of our or their
investment.
2. We understand that the notes have not been registered under the
Securities Act and, unless so registered, may not be offered, sold or otherwise
transferred except as permitted in the following sentence. We agree on our own
behalf and on behalf of any investor account for which we are purchasing notes
to offer, sell or otherwise transfer such notes prior to the date which is two
years after the later of the date of original issue and the last date on which
the Company or any affiliate of the Company was the owner of such notes (or any
predecessor thereto) (the Resale Restriction Termination Date) only (a) to the
Company, (b) pursuant to a registration statement which has been declared
effective under the Securities Act, (c) in a transaction complying with the
requirements of Rule 144A under the Securities Act (Rule 144A), to a person we
reasonably believe is a qualified institutional buyer under Rule 144A (QIB) that
purchases for its own account or for the account of a QIB and to whom notice is
given that the transfer is being made in reliance on Rule 144A, (d) pursuant to
offers and sales to that occur outside the United States within the meaning of
Regulation S under the Securities Act, (e) to an institutional "accredited
investor" (within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
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Securities Act) that is purchasing for its own account or for the account of
such institutional "accredited investor," in each case in a minimum principal
amount of notes of $250,000, for investment purposes and not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act, or (f) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of our property
or the property of such investor account or accounts be at all times within our
or their control and in compliance with any applicable state securities laws.
The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the notes is
proposed to be made pursuant to clause (e) above prior to the Resale Restriction
Termination Date, the transferor shall deliver a letter from the transferee
substantially in the form of this letter to the Company and the Trustee, which
shall provide, among other things, that the transferee is an institutional
"accredited investor" (within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act) that it is acquiring such notes for investment
purposes and not for distribution in violation of the Securities Act. Each
purchaser acknowledges that the Company and the Trustee reserve the right prior
to any offer, sale or other transfer of the notes prior to the Resale
Restriction Termination Date pursuant to clauses (d), (e) and (f) above to
require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Trustee.
3. You are entitled to rely upon this letter, and you are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the
matters covered hereby.
Transferee: Transferor:
By:__________________________ By:________________________
Date: Date:
SECTION 2.8. Form of Certificate to be Delivered in Connection with
Transfers Pursuant to Regulation S.
Regulation S Certificate
CUSIP _________
ISIN __________
Xxxx Corporation
x/x Xxxxxxxx, N.A., as Trustee
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Citibank Agency & Trust
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Re: Xxxx Corporation
10-1/8% Notes due 2010
Ladies and Gentlemen:
This certificate is delivered to request a transfer of $___________
principal amount of the 10-1/8% Notes due 2010 (the notes) of Xxxx Corporation
(the Company).
Upon transfer, the notes would be registered in the name of the new
beneficial owner as follows:
Name:
Address:
Taxpayer ID Number:
In connection with our proposed sale of $__________ aggregate principal
amount of the Securities, we confirm that such sale has been effected pursuant
to and in accordance with Regulation S under the Securities Act of 1933, as
amended (the Securities Act), and, accordingly, we represent that:
(a) the offer of the Securities was not made to a person in the United
States;
(b) either (i) at the time the buy order was originated, the transferee
was outside the United States or we and any person acting on our behalf
reasonably believed that the transferee was outside the United States or (ii)
the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither we nor any person acting on our behalf
knows that the transaction has been pre-arranged with a buyer in the United
States;
(c) neither we, any of our affiliates, nor any person acting on our or
their behalf has made any directed selling efforts in the United States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; and
(d) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.
In addition, if the sale is made during a restricted period and the
provisions of Rule 903(c)(3) or Rule 904(c)(l) of Regulation S are applicable
thereto, we confirm that such sale has been made in accordance with the
applicable provisions of Rule 903(c)(3) or Rule 904(c)(l), as the case may be.
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. Terms used in this certificate have the
meanings set forth in Regulation S.
Transferor:
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By: __________________________
Date:
SECTION 2.9. Mutilated, Destroyed, Lost or Stolen Securities. If a
mutilated Security is surrendered to the Registrar or if the Holder of a
Security claims that such Security has been lost, destroyed or wrongfully taken,
the Company shall issue and the Trustee shall authenticate a replacement
Security of the same series if the requirements of Section 8-405 of the Uniform
Commercial Code are met and the Holder satisfies any other reasonable
requirements of the Trustee. If required by the Trustee or the Company, such
Holder shall furnish an indemnity bond sufficient in the judgment of the Company
and the Trustee to protect the Company, the Trustee, the Paying Agent, the
Registrar and any co-registrar from any loss which any of them may suffer if a
Security is replaced, and, in the absence of notice to the Company or the
Trustee that such Security has been acquired by a bona fide purchaser, the
Company shall execute and upon Company Order the Trustee shall authenticate and
make available for delivery, in exchange for any such mutilated Security or in
lieu of any such destroyed, lost or stolen Security, a new Security of like
class, tenor and principal amount, bearing a number not contemporaneously
outstanding.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Security, pay such Security.
Upon the issuance of any new Security under this Section, the Company
may require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) in connection
therewith.
Every new Security issued pursuant to this Section in lieu of any
mutilated, destroyed, lost or stolen Security shall constitute an original
additional contractual obligation of the Company, any Subsidiary Guarantor (if
applicable) and any other obligor upon the Securities, whether or not the
mutilated, destroyed, lost or stolen Security shall be at any time enforceable
by anyone, and shall be entitled to all benefits of this Indenture equally and
proportionately with any and all other Securities duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Securities.
SECTION 2.10. Temporary Securities. Until Definitive Securities are
ready for delivery, the Company may prepare and the Trustee shall authenticate
temporary Securities. Temporary Securities shall be substantially in the form of
Definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate Definitive Securities. After
the preparation of Definitive Securities, the temporary Securities shall be
exchangeable for such Definitive Securities of the same series upon surrender of
such temporary
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Securities at any office or agency maintained by the Company for that purpose
and such exchange shall be without charge to the Holder. Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute,
and the Trustee shall authenticate and make available for delivery in exchange
therefor, one or more Definitive Securities representing an equal principal
amount of Securities of the same class. Until so exchanged, the Holder of
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as a holder of Definitive Securities.
SECTION 2.11. Cancellation. The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the Paying Agents
shall forward to the Trustee any Securities surrendered to them for registration
of transfer, exchange or payment. The Trustee and no one else shall cancel and
return to the Company all Securities surrendered for registration of transfer,
exchange, payment or cancellation. The Company may not issue new Securities to
replace Securities it has paid or delivered to the Trustee for cancellation for
any reason other than in connection with a transfer or exchange.
SECTION 2.12. Payment of Interest; Defaulted Interest. The principal of
(and premium, if any) and interest on the Securities shall be payable at the
office or agency of the Company maintained for such purpose in the Borough of
Manhattan in the City of New York, or at such other office or agency of the
Company as may be maintained for such purpose pursuant to Section 2.3 hereof;
provided, however, that, at the option of the Company, each installment of
interest may be paid by check mailed to addresses of the Persons entitled
thereto as such addresses shall appear on the Security Register and; provided,
further, that all payments with respect to the Securities, the Holders of which
have given wire transfer instructions to the Company and the Paying Agent prior
to the applicable record date for such payment, will be required to be made by
wire transfer of immediately available funds to the accounts specified by the
Holders thereof. Payments in respect of Securities represented by a Global
Security (including principal, premium and interest) will be made by wire
transfer of immediately available funds to the accounts specified by the
Depositary.
Interest on any Security which is payable, and is punctually paid or
duly provided for, on any interest payment date shall be paid to the Person in
whose name such Security (or one or more predecessor Securities) is registered
at the close of business on the regular record date for such interest at the
office or agency of the Company maintained for such purpose pursuant to Section
2.3 hereof.
Any interest on any Security which is payable, but is not punctually
paid or duly provided for when the same becomes due and payable, shall forthwith
cease to be payable to the Holder on the relevant regular record date by virtue
of having been such a Holder, and such defaulted interest and (to the extent
lawful) interest on such defaulted interest at the rate borne by the Securities
(such defaulted interest and interest thereon herein collectively called
"Defaulted Interest") shall be paid by the Company, at its election in each
case, as provided in clause (a) or (b) below:
(a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities (or their respective
predecessor Securities) as to which the Defaulted Interest relates are
registered at the close of business on a Special Record Date (as
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defined below) for the payment of such Defaulted Interest, which shall be fixed
in the following manner. The Company shall deposit with the Trustee an amount of
money equal to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such
Defaulted Interest as in this clause (a) provided. Thereupon the Trustee shall
fix a record date (the "Special Record Date") for the payment of such Defaulted
Interest that shall be not more than 15 days and not less than 10 days prior to
the date of the proposed payment and not less than 10 days after the receipt by
the Trustee of the notice of the proposed payment. The Trustee shall promptly
notify the Company of such Special Record Date, and in the name and at the
expense of the Company, shall cause notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor to be given in the
manner provided for in Section 10.2 hereof, not less than 10 days prior to such
Special Record Date. Notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor having been so given, such Defaulted
Interest shall be paid to the Persons in whose names the Securities (or their
respective predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the
following clause (b).
(b) The Company may make payment of such Defaulted Interest to
the Persons in whose names the Securities as to which the Defaulted Interest
relates are registered at the close of business on a specified date in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which such Securities may be listed, and upon such notice as may be required
by such exchange, if, after notice given by the Company to the Trustee of the
proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.
(c) Subject to the foregoing provisions of this Section, each
Security delivered under this Indenture upon registration of, transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.
SECTION 2.13. Computation of Interest. Interest on the Securities shall
be computed on the basis of a 360-day year of twelve 30-day months.
SECTION 2.14. CUSIP and ISIN Numbers. The Company in issuing the
Securities shall use "CUSIP" or "ISIN" numbers (if then generally in use) and,
if so, the Trustee shall use "CUSIP" or "ISIN" 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 Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on the
Securities, 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" or "ISIN" numbers for the Securities.
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ARTICLE III
COVENANTS
SECTION 3.1. Application of Certain Covenants. After such time as:
(1) the Securities have been assigned an Investment Grade
rating by both Rating Agencies;
(2) if the Investment Grade rating is BBB-, in the case of
S&P, or Baa3, in the case of Xxxxx'x, it shall not be accompanied by
either (i) in the case of S&P, a negative outlook, creditwatch negative
or the equivalent thereof or (ii) in the case of Xxxxx'x, a negative
outlook, a review for possible downgrade or the equivalent thereof; and
(3) no Default under this Indenture has occurred and is
continuing,
(all such events collectively constituting an "Investment Grade Rating Event")
and notwithstanding that the Securities may later cease to have an Investment
Grade rating by either or both Rating Agencies or that the Investment Grade
rating may later be accompanied by either or both items (i) or (ii) set forth in
paragraph (2) above, the Company and its Restricted Subsidiaries will not be
subject to Sections 3.10, 3.11, 3.12, 3.14, 3.15, 3.16, 3.17, paragraph (a) of
Section 3.9, paragraph (a) of Section 3.13 and clause (c) of Section 4.1 hereof,
and paragraph (b) of Section 3.9 and paragraph (b) of Section 3.13 hereof shall
become effective and apply to the Company and its Restricted Subsidiaries.
Notice of the occurrence of an Investment Grade Rating Event shall be delivered
by the Company to the Trustee for delivery to the holders of the Securities.
A change in the rating on the Securities by either Rating Agency shall
be deemed to have occurred on the date that such Rating Agency shall have
publicly announced the change.
SECTION 3.2. Payment of Principal, Premium, if any, and Interest. The
Company will pay the principal of, premium, if any, and interest on the
Securities on the dates and in the manner provided in the Securities and in this
Indenture. Principal, premium, if any, and interest shall be considered paid on
the date due if on such date the Trustee or the relevant Paying Agents hold in
accordance with this Indenture money sufficient to pay all principal, premium
and interest then due and the Trustee or such Paying Agents, as the case may be,
are not prohibited from paying such money to the Securityholders on that date.
The Company shall pay interest on overdue principal at the rate
specified therefor in the Securities, and it shall pay interest on overdue
installments of interest at the same rate to the extent lawful.
SECTION 3.3. Maintenance of Office or Agency. The Company will maintain
in each Place of Payment for the Securities an office or agency where the
Securities may be presented or surrendered for payment, where the Securities may
be surrendered for registration of transfer or exchange and where notices and
demands to or upon the Company in respect of the Securities and this Indenture
may be served. The Corporate Trust Office of the Trustee shall be such an
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office or agency of the Company as shall be the offices specified in Section 2.3
hereof. In addition, the Company may designate and maintain some other office or
agency for one or more of such purposes. The Company will give prompt written
notice to the Trustee of any change in the location of any such offices or
agencies. 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, and the Company hereby appoints the
Trustee as its agent to receive all such presentations, surrenders, notices and
demands.
The Company may also from time to time designate one or more other
offices or agencies where the Securities may be presented or surrendered for any
or all such purposes and may from time to time rescind any such designation;
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 each
Place of Payment for the Securities for such purposes. The Company will give
prompt written notice to the Trustee of any such designation or rescission and
any change in the location of any such other office or agency.
SECTION 3.4. Money for Securities Payments to be Held in Trust;
Unclaimed Money. If the Company should at any time act as its own Paying Agent
with respect to the Securities, it will, on or before each due date of the
principal of, premium, if any, or interest on the Securities, segregate and hold
in trust for the benefit of the Persons entitled thereto sums sufficient to pay
the principal, premium, if any, or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
will promptly notify the Trustee in writing of its action or failure so to act.
The Company will cause each Paying Agent other than the Trustee to
execute and deliver to the Trustee an instrument in which such Paying Agent
shall agree with the Trustee, subject to the provisions of this Section, that
such Paying Agent will:
(a) hold all sums held by it for the payment of the principal
of, premium, if any, or interest on the Securities in trust for the benefit of
the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;
(b) give the Trustee notice of any default by the Company or
any Subsidiary Guarantor (or any other obligor upon the Securities) in the
making of any payment of principal, premium, if any, or interest on the
Securities; and
(c) at any time during the continuance of any such default,
upon the written request of the Trustee, forthwith pay to the Trustee all sums
so held in trust by such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge or defeasance of this Indenture or for any other
purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee
all sums held in trust by the Company or such Paying Agent, such sums to be held
by the Trustee upon the same terms as those upon which such sums were held by
the Company or such Paying Agent; and, upon such payment by any
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Paying Agent to the Trustee, such Paying Agent shall be released from all
further liability with respect to such money.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of any principal, premium or interest
on any Security and remaining unclaimed for two years after such principal,
premium, if any, or interest has become due and payable shall be paid to the
Company on Company Request or (if then held by the Company) shall be discharged
from such trust, unless otherwise required by certain provisions of applicable
law; and the Holder of such Security shall thereafter, as an unsecured general
creditor, look only to the Company for payment thereof, and all liability of the
Trustee or such Paying Agents 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 Agents, before being required to make
any such repayment, may at the expense of the Company cause to be published
once, in a newspaper published in the English language, customarily published on
each Business Day and of general circulation in The City of New York, or cause
to be mailed to such Holder, notice that such money remains unclaimed and that,
after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining
will be repaid to the Company.
SECTION 3.5. Corporate Existence. Subject to Article IV hereof, the
Company will at all times do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and its
rights; provided, however, that the Company shall not be required to preserve
any rights if the Board of Directors of the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the business of
the Company and its Subsidiaries and that the loss thereof is not materially
disadvantageous to the Company and its Subsidiaries, taken as a whole.
SECTION 3.6. Reports by the Company. So long as any Security is
outstanding, the Company will file with the Securities and Exchange Commission
("SEC") and, within 15 days after it files them with the SEC, file with the
Trustee and mail or cause to be mailed to the Holders at their addresses as set
forth in the Security Register, copies of the annual reports and of the
information, documents and other reports which the Company is required to file
with the Commission pursuant to Section 13 or 15(d) of the Exchange Act or which
the Company would be required to file with the Commission if the Company then
had a series of securities registered under the Exchange Act. In addition, the
Company shall cause its annual report to stockholders and any quarterly or other
financial reports furnished to its stockholders generally to be filed with the
Trustee and mailed, no later than the date such materials are mailed or made
available to the Company's stockholders, to the Holders at their addresses as
set forth in the Security Register.
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 information
concerning the Company's compliance with any of its covenants hereunder,
provided that the foregoing shall not relieve the Trustee of any of its
responsibilities hereunder.
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SECTION 3.7. Annual Certificate. The Company covenants and agrees to
deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officer's Certificate from the principal executive officer,
principal financial officer or principal accounting officer as to his or her
knowledge of the Company's compliance with all conditions and covenants under
the Indenture and stating that in the course of the performance by the signer of
his or her duties as an Officer of the Company he or she would normally have
knowledge of any Default or Event of Default and whether or not the signer knows
of any Default or Event of Default that occurred during such period. If he or
she does, the certificate shall describe the Default or Event of Default, its
status and what action the Company is taking or proposes to take with respect
thereto. The Company also shall comply with TIA Section 314(a)(4).
SECTION 3.8. Books of Record and Account. The Company will keep proper
books of record and account, either on a consolidated or individual basis. The
Company shall cause its books of record and account to be examined either on a
consolidated or individual basis, by one or more firms of independent public
accountants not less frequently than annually. The Company shall prepare its
financial statements in accordance with generally accepted accounting principles
as in effect from time to time.
SECTION 3.9. Limitation on Liens. (a) The Company will not, and will
not cause or permit any of its Restricted Subsidiaries to, create, incur, assume
or suffer to exist any Liens upon any of their respective properties or assets
(including, without limitation, any asset in the form of the right to receive
payments, fees or other consideration or benefits) whether owned on the Issue
Date or acquired after the Issue Date, other than:
(1) Liens granted by the Company on property or assets of the
Company securing Indebtedness of the Company that is permitted by this
Indenture and that is pari passu with the Securities; provided, that
the Securities are secured on an equal and ratable basis with such
Liens;
(2) Liens granted by the Company on property or assets of the
Company securing Indebtedness of the Company that is permitted by this
Indenture and that is subordinated to the Securities; provided, that
the Securities are secured by Liens ranking prior to such Liens;
(3) Permitted Liens;
(4) Liens in respect of Acquired Indebtedness permitted by
this Indenture; provided, that the Liens in respect of such Acquired
Indebtedness secured such Acquired Indebtedness at the time of the
incurrence of such Acquired Indebtedness and such Liens and the
Acquired Indebtedness were not incurred by the Company or by the Person
being acquired or from whom the assets were acquired in connection
with, or in anticipation of, the incurrence of such Acquired
Indebtedness by the Company, and provided, further that such Liens in
respect of such Acquired Indebtedness do not extend to or cover any
property or assets of the Company or of any Restricted Subsidiary of
the Company other than the property or assets that secured the Acquired
Indebtedness prior to the time such Indebtedness became Acquired
Indebtedness of the Company; and
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(5) Liens arising from claims of holders of Indebtedness
against funds held in a defeasance trust for the benefit of such
holders.
(b) In the event that paragraph (a) of this Section 3.9 no longer
applies to the Company and its Restricted Subsidiaries in light of the
circumstances set forth in Section 3.1 hereof, except with respect to
Indebtedness between the Company and any Restricted Subsidiaries, the Company
will not incur or guarantee (or permit Restricted Subsidiaries to incur or
guarantee) any Secured Debt other than Permitted Secured Debt without equally
and ratably securing the Securities.
SECTION 3.10. Limitation on Incurrence of Indebtedness and Issuance of
Preferred Stock. The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to incur, directly or indirectly, any Indebtedness, and
the Company will not cause or permit any of its Restricted Subsidiaries to issue
any Preferred Stock, except:
(1) Indebtedness of the Company, if immediately after giving
effect to the incurrence of such Indebtedness and the receipt and
application of the net proceeds thereof, the Consolidated Coverage
Ratio of the Company for the four full fiscal quarters for which
quarterly or annual financial statements are available next preceding
the incurrence of such Indebtedness would be greater than 2.25 to 1.00;
(2) Indebtedness outstanding on the Issue Date;
(3) Indebtedness under the Credit Facilities in an amount not
to exceed $1.56 billion;
(4) Indebtedness owed by the Company to any Restricted
Subsidiary of the Company or Indebtedness owed by a Subsidiary of the
Company to the Company or a Restricted Subsidiary of the Company;
provided, that, upon either
(a) the transfer or other disposition by such
Restricted Subsidiary or the Company of any Indebtedness so
permitted under this clause (4) to a Person other than the
Company or another Restricted Subsidiary of the Company or
(b) the issuance (other than directors' qualifying
shares), sale, transfer or other disposition of shares of
Capital Stock or other ownership interests (including by
consolidation or merger) of such Restricted Subsidiary to a
Person other than the Company or another such Restricted
Subsidiary of the Company as a result of which such Restricted
Subsidiary ceases to be a Restricted Subsidiary of the
Company,
the provisions of this clause (4) shall no longer be applicable to such
Indebtedness and such Indebtedness shall be deemed to have been
incurred at the time of any such issuance, sale, transfer or other
disposition, as the case may be;
(5) Indebtedness of the Company or its Restricted Subsidiaries
under any Interest Rate Protection Agreement or Currency Agreement to
the extent entered into to hedge any other Indebtedness permitted under
this Indenture;
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(6) Acquired Indebtedness to the extent the Company could have
incurred such Indebtedness in accordance with clause (1) above on the
date such Indebtedness became Acquired Indebtedness;
(7) Indebtedness incurred by the Company or any of its
Restricted Subsidiaries constituting reimbursement obligations with
respect to letters of credit issued in the ordinary course of business,
including, without limitation, letters of credit in response to
worker's compensation claims or self-insurance;
(8) Indebtedness arising from agreements of the Company or a
Restricted Subsidiary of the Company providing for indemnification,
adjustment of purchase price, earn-out or other similar obligations, in
each case, incurred or assumed in connection with the disposition of
any business, assets or a Subsidiary of the Company;
(9) Obligations in respect of performance and surety bonds and
completion guarantees provided by the Company or any Restricted
Subsidiary of the Company in the ordinary course of business;
(10) Indebtedness consisting of notes issued to employees,
officers or directors in connection with the redemption or repurchase
of Capital Stock held by such Persons in an aggregate amount not in
excess of $10.0 million at any time outstanding;
(11) Guarantees by the Company or any of its Restricted
Subsidiaries of Indebtedness of the Company or any Restricted
Subsidiary permitted to be incurred under another provision of this
Section 3.10; provided that any Guarantee by a Restricted Subsidiary is
given in compliance with Section 3.16 hereof;
(12) Indebtedness of the Company under the Initial Securities
and the Exchange Securities related thereto;
(13) Indebtedness incurred to renew, extend or refinance
(collectively for purposes of this clause (13) to "refinance") any
Indebtedness incurred pursuant to clauses (1), (2) or (12) of this
Section 3.10; provided, that:
(a) such Indebtedness does not exceed the principal
amount (or accreted amount, if less) of Indebtedness so
refinanced plus the amount of any premium required to be paid
in connection with such refinancing pursuant to the terms of
the Indebtedness refinanced or the amount of any premium
reasonably determined by the Company as necessary to
accomplish such refinancing by means of a tender offer,
exchange offer, or privately negotiated repurchase, plus the
expenses of the Company or such Restricted Subsidiary incurred
in connection therewith and
(b) (I) in the case of any refinancing of
Indebtedness that is pari passu with the Securities such
refinancing Indebtedness is made pari passu with or
subordinate in right of payment to the Securities, and, in the
case of any refinancing of Indebtedness that is subordinate in
right of payment to the Securities, such refinancing
Indebtedness is subordinate in right of payment to the
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Securities on terms no less favorable to the Holders than
those contained in the Indebtedness being refinanced,
(II) in either case, the refinancing
Indebtedness by its terms, or by the terms of any agreement or
instrument pursuant to which such Indebtedness is issued does
not have an Average Life that is less than the remaining
Average Life of the Indebtedness being refinanced and does not
permit redemption or other retirement (including pursuant to
any required offer to purchase to be made by the Company or
any of its Restricted Subsidiaries) of such Indebtedness at
the option of the holder thereof prior to the final Stated
Maturity of the Indebtedness being refinanced, other than a
redemption or other retirement at the option of the holder of
such Indebtedness (including pursuant to a required offer to
purchase made by the Company or any of its Restricted
Subsidiaries) which is conditioned upon a change of control of
the Company pursuant to provisions substantially similar to
those contained in Section 3.17 hereof and
(III) Indebtedness of a Restricted
Subsidiary may not be incurred to refinance any Indebtedness
of the Company unless otherwise permitted pursuant to clause
(16) below; and
provided, further, that any Indebtedness incurred pursuant to
clauses (1) or (2) above may be refinanced pursuant to this
clause (13) provided that such refinancing occurs not later
than three months after the repayment of the Indebtedness
being refinanced, notwithstanding an initial repayment of the
Indebtedness being refinanced using the Company's available
cash resources.
(14) Indebtedness consisting of take-or-pay obligations contained in
supply agreements entered into by the Company or its Restricted Subsidiaries in
the ordinary course of business;
(15) Preferred Stock of Restricted Subsidiaries issued to the Company
or any of its Restricted Subsidiaries, provided, that, upon either
(a) the transfer or other disposition by such Restricted
Subsidiary or the Company of any Preferred Stock so permitted under
this clause (15) to a Person other than the Company or another
Restricted Subsidiary of the Company or
(b) the issuance (other than directors' qualifying shares),
sale, transfer or other disposition of shares of Capital Stock or other
ownership interests (including by consolidation or merger) of such
Restricted Subsidiary to a Person other than the Company or another
such Restricted Subsidiary of the Company as a result of which such
Restricted Subsidiary ceases to be a Subsidiary of the Company,
the provisions of this clause (15) shall no longer be applicable to such
Preferred Stock and such Preferred Stock shall be deemed to have been issued at
the time of any such issuance, sale, transfer or other disposition, as the case
may be;
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(16) Indebtedness incurred by Restricted Subsidiaries to Persons
other than the Company and its Restricted Subsidiaries and Preferred Stock
of Restricted Subsidiaries issued to Persons other than the Company and
its Restricted Subsidiaries, provided that (i) the principal amount of
such Indebtedness plus (ii) the stated liquidation preference of such
Preferred Stock shall not exceed in the aggregate $250.0 million;
(17) the consummation of any Qualified Securitization Transaction;
and
(18) Indebtedness of the Company or its Restricted Subsidiaries, not
otherwise permitted to be incurred pursuant to clauses (1) through (17) of
this Section 3.10, which, together with any other outstanding Indebtedness
incurred pursuant to this clause (18), has an aggregate principal amount
not in excess of $100.0 million at any time outstanding.
Accrual of interest, accrual of dividends, the accretion of accreted
value, the payment of interest in the form of additional Indebtedness and the
payment of dividends in the form of additional shares of Preferred Stock will
not be deemed to be an incurrence of Indebtedness for purposes of this covenant.
The amount of any Indebtedness outstanding as of any date shall be (i) the
accreted value of the Indebtedness in the case of any Indebtedness issued with
original issue discount and (ii) the principal amount or liquidation preference
thereof, together with any interest thereon that is more than 30 days past due,
in the case of any other Indebtedness.
For purposes of determining compliance with any U.S. dollar-denominated
restriction on the incurrence of Indebtedness, the U.S. dollar-equivalent
principal amount of Indebtedness denominated in a foreign currency shall be
calculated based on the relevant currency exchange rate in effect on the date
such Indebtedness was incurred, in the case of term Indebtedness, or first
committed, in the case of revolving credit Indebtedness; 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 rate 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. Notwithstanding any
other provision of this covenant, the maximum amount of Indebtedness that the
Company may incur pursuant to this covenant shall not be deemed to be exceeded
solely as a result of fluctuations in the exchange rate of currencies. The
principal amount of any Indebtedness incurred to refinance other Indebtedness,
if incurred in a different currency from the Indebtedness being refinanced,
shall be calculated based on the currency exchange rate applicable to the
currencies in which such refinancing Indebtedness is denominated that is in
effect on the date of such refinancing.
SECTION 3.11. Limitation on Restricted Payments.
The Company will not, and will not cause or permit any of its Restricted
Subsidiaries to directly or indirectly:
(A) declare or pay any dividend, or make any distribution of any
kind or character (whether in cash, property or securities), in respect of
any class of its Capital
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Stock or to the holders thereof in their capacity as stockholders,
excluding any (a) dividend or distributions payable solely in shares of
its Qualified Capital Stock or in options, warrants or other rights to
acquire its Qualified Capital Stock or (b) in the case of any Restricted
Subsidiary of the Company, dividends or distributions payable to the
Company or a Restricted Subsidiary of the Company;
(B) purchase, redeem, or otherwise acquire or retire for value
shares of Capital Stock of the Company or a Restricted Subsidiary of the
Company, any securities convertible or exchangeable into shares of Capital
Stock of the Company or a Restricted Subsidiary of the Company or any
options, warrants or rights to purchase or acquire shares of Capital Stock
of the Company or a Restricted Subsidiary of the Company, excluding any
such shares of Capital Stock, options, warrants, rights or securities
which are owned by the Company or a Restricted Subsidiary of the Company;
(C) make any Investment (other than a Permitted Investment) in any
Person; or
(D) redeem, defease, repurchase, retire or otherwise acquire or
retire for value, prior to any scheduled maturity, repayment or sinking
fund payment, Indebtedness which is subordinate in right of payment to the
Securities (each of the transactions described in clauses (A) through (D)
(other than any exception to any such clause) being a "Restricted
Payment"),
if at the time thereof:
(1) an Event of Default, or an event that with the passing of time
or giving of notice, or both, would constitute an Event of Default, shall
have occurred and be continuing, or
(2) upon giving effect to such Restricted Payment, the Company could
not incur at least $1.00 of additional Indebtedness pursuant to clause (1)
of Section 3.10 hereof, or
(3) upon giving effect to such Restricted Payment, the aggregate of
all Restricted Payments made on or after the Issue Date exceeds the sum
(without duplication) of:
(a) 50% of Consolidated Net Income of the Company (or, in the
case cumulative Consolidated Net Income of the Company shall be
negative, less 100% of such deficit) for the period (treated as an
accounting period) from the Issue Date through the last day of the
Company's most recently ended fiscal quarter for which financial
statements are available; plus
(b) 100% of the aggregate net cash proceeds received after the
Issue Date, including the fair market value of readily marketable
securities from the issuance of Qualified Capital Stock of the
Company and warrants, rights or options on Qualified Capital Stock
of the Company (other than in respect of any such issuance to a
Subsidiary of the Company) and the principal amount of
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Indebtedness of the Company or a Subsidiary of the Company that has
been converted into or exchanged for Qualified Capital Stock of the
Company which Indebtedness was incurred after the Issue Date; plus
(c) in the case of the disposition or repayment of any
Investment constituting a Restricted Payment made after the Issue
Date, an amount equal to the lesser of the return of capital with
respect to such Investment and the cost of such Investment, in
either case, less the cost of the disposition of such Investment;
plus
(d) an amount equal to the sum of (I) the net reduction in
Investments in Unrestricted Subsidiaries resulting from the receipt
of dividends, repayments of loans or advances or other transfers of
assets or proceeds from the disposition of Capital Stock or other
distributions or payments, in each case to the Company or any
Restricted Subsidiary from, or with respect to, interests in
Unrestricted Subsidiaries, and (II) the portion (proportionate to
the Company's equity interest in such Subsidiary) of the fair market
value of the net assets of an Unrestricted Subsidiary at the time
such Unrestricted Subsidiary is designated a Restricted Subsidiary;
provided, that the foregoing sum shall not exceed, in the case of
any Unrestricted Subsidiary, the amount of Investments previously
made (and treated as a Restricted Payment) by the Company or any
Restricted Subsidiary in such Unrestricted Subsidiary subsequent to
the Issue Date; plus
(e) solely in connection with the payment of ordinary
quarterly dividends on the Company's common stock, an aggregate of
$270.0 million.
For purposes of determining the amount expended for Restricted
Payments under this clause (3), property other than cash shall be
valued at its fair market value.
Notwithstanding the foregoing, the provisions set forth in the immediately
preceding paragraph will not prohibit:
(1) any dividend on any class of Capital Stock of the Company or any
of its Restricted Subsidiaries paid within 70 days after the declaration
thereof if, on the date when the dividend was declared, the Company or any
of its Restricted Subsidiaries, as the case may be, could have paid such
dividend in accordance with the provisions of this Indenture;
(2) the renewal, extension or refinancing of any Indebtedness
otherwise permitted pursuant to the terms of clause (13) of Section 3.10
hereof;
(3) the exchange or conversion of any Indebtedness of the Company or
any of its Restricted Subsidiaries for or into Qualified Capital Stock of
the Company;
(4) any Restricted Payments, including loans or other advances made
pursuant to any employee benefit plans (including plans for the benefit of
directors) or employment agreements or other compensation arrangements or
plans, in each case as
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such agreement, arrangement or plan is approved by the Board of Directors
of the Company in its good faith judgment;
(5) so long as no Default or Event of Default has occurred and is
continuing, any Investment made with the proceeds of a substantially
concurrent sale of Qualified Capital Stock of the Company; provided, that
the proceeds of such sale of Qualified Capital Stock shall not be (and
have not been) included in clause (3) of the preceding paragraph;
(6) the redemption, repurchase, retirement or other acquisition of
any Capital Stock 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 Qualified Capital Stock of the Company;
provided, that the proceeds of such sale of Capital Stock shall not be
(and have not been) included in clause (3) of the preceding paragraph;
(7) so long as no Event of Default has occurred and is continuing,
the redemption, repurchase, retirement or other acquisition of any
subordinated Indebtedness of the Company in exchange for or out of the net
cash proceeds of the substantially concurrent sale (other than to a
Subsidiary of the Company) of Qualified Capital Stock of the Company;
provided, that the proceeds of such sale of Qualified Capital Stock shall
not be (and have not been) included in clause (3) of the preceding
paragraph;
(8) so long as no Event of Default has occurred and is continuing,
any purchase or redemption or other retirement for value of Capital Stock
of the Company required pursuant to any shareholders agreement, management
agreement or employee stock option or restricted stock agreement in
accordance with the provisions of any such arrangement in an amount not to
exceed $5.0 million in the aggregate;
(9) repurchases of Capital Stock deemed to occur upon the exercise
of stock options if such Capital Stock represents a portion of the
exercise price thereof;
(10) so long as no Event of Default has occurred and is continuing,
the redemption of any stock purchase rights under a rights plan in an
aggregate amount not to exceed $5.0 million;
(11) so long as no Event of Default has occurred and is continuing,
Investments in Permitted Joint Ventures; provided, that after giving pro
forma effect to such Investment, the Company could incur at least $1.00 of
additional Indebtedness pursuant to clause (1) of Section 3.10;
(12) Investments by the Company in Xxxx Credit Corporation made in
the ordinary course of business for periods not exceeding 30 days at any
time and in amounts not exceeding $20.0 million at any time outstanding;
and
(13) Restricted Payments by the Company or its Restricted
Subsidiaries, not otherwise permitted to be made pursuant to clauses (1)
through (12) above, in an aggregate amount not to exceed $75.0 million.
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Each Restricted Payment described in clauses (1), (4) and (8) of the
previous sentence shall be taken into account (and the Restricted Payments
described in the remaining clauses shall not be taken into account) for purposes
of computing the aggregate amount of all Restricted Payments made pursuant to
clause (3) of the preceding paragraph.
SECTION 3.12. Limitation on Certain Asset Dispositions. (a) The Company
will not, and will not cause or permit any of its Restricted Subsidiaries to,
directly or indirectly, make one or more Asset Dispositions unless:
(1) the Company or the Restricted Subsidiary, as the case may be,
receives consideration for such Asset Disposition at least equal to the
fair market value of the assets sold or disposed of (as determined in good
faith by the Company);
(2) not less than 75% of the consideration for the disposition
consists of cash or readily marketable Cash Equivalents or the assumption
of Indebtedness (other than non-recourse Indebtedness or any Indebtedness
subordinated to the Securities) of the Company or such Restricted
Subsidiary or other obligations relating to such assets (and release of
the Company or such Restricted Subsidiary from all liability on the
Indebtedness or other obligations assumed); and
(3) all Net Available Proceeds, less any amounts invested or
committed to be invested within 360 days of such Asset Disposition in
Related Business Assets (including capital expenditures or the Capital
Stock of another Person (other than the Company); provided, that
immediately after giving effect to any such investment such Person shall
be a Restricted Subsidiary of the Company), are applied, on or prior to
the 360th day after such Asset Disposition (unless and to the extent that
the Company shall determine to make an Offer to Purchase), either to
(a) the permanent reduction and prepayment of any Indebtedness
of the Company (other than Indebtedness which is expressly
subordinate to the Securities) then outstanding (including a
permanent reduction of commitments in respect thereof) or
(b) the permanent reduction and repayment of any Indebtedness
of any Restricted Subsidiary of the Company then outstanding
(including a permanent reduction of commitments in respect thereof).
The 361st day after such Asset Disposition shall be deemed to be the
"Asset Sale Offer Trigger Date," and the amount of Net Available Proceeds from
Asset Dispositions otherwise subject to the preceding provisions not so applied
or as to which the Company has determined not to so apply shall be referred to
as the "Unutilized Net Available Proceeds." Within fifteen days after the Asset
Sale Offer Trigger Date, the Company shall make an Offer to Purchase the
outstanding Securities in the aggregate amount of the Unutilized Net Available
Proceeds at a purchase price in cash equal to 100% of their principal amount
plus any accrued and unpaid interest thereon to the Purchase Date.
Notwithstanding the foregoing, the Company may defer making any Offer to
Purchase outstanding Securities until there are aggregate Unutilized Net
Available Proceeds equal to or in excess of $25.0 million (at which time, the
entire Unutilized
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Net Available Proceeds, and not just the amount in excess of $25.0 million,
shall be applied as required pursuant to this paragraph). Pending application of
the Unutilized Net Available Proceeds pursuant to this covenant, such Unutilized
Net Available Proceeds shall be invested in Permitted Investments of the types
described in clauses (1), (2) and (3) of the definition of "Permitted
Investments."
If any Indebtedness of the Company or any of its Restricted Subsidiaries
ranking pari passu with the Securities requires that prepayment of, or an offer
to prepay, such Indebtedness be made with any Net Available Proceeds, the
Company may apply such Net Available Proceeds pro rata (based on the aggregate
principal amount of the Securities then outstanding and the aggregate principal
amount (or accreted value, if less) of all such other Indebtedness then
outstanding) to the making of an Offer to Purchase the Securities in accordance
with the foregoing provisions and the prepayment or the offer to prepay such
pari passu Indebtedness. Any remaining Net Available Proceeds following the
completion of the required Offer to Purchase may be used by the Company for any
other purpose (subject to the other provisions of this Indenture) and the amount
of Net Available Proceeds then required to be otherwise applied in accordance
with this covenant shall be reset to zero, subject to any subsequent Asset
Disposition. These provisions will not apply to a transaction consummated in
compliance with the provisions of Section 4.1 hereof.
(b) The Company will not, and will not permit any Restricted
Subsidiary to, engage in any Asset Swaps, unless:
(1) at the time of entering into such Asset Swap and immediately
after giving effect to such Asset Swap, no Default or Event of Default
shall have occurred and be continuing or would occur as a consequence
thereof;
(2) in the event such Asset Swap involves the transfer by the
Company or any Restricted Subsidiary of assets having an aggregate fair
market value, as determined by the Board of Directors of the Company in
good faith, in excess of $20.0 million, the terms of such Asset Swap have
been approved by a majority of the members of the Board of Directors of
the Company or such Restricted Subsidiary, as the case may be, as being
fair to the Company or such Restricted Subsidiary, as the case may be,
from a financial point of view; and
(3) in the event such Asset Swap involves the transfer by the
Company or any Restricted Subsidiary of assets having an aggregate fair
market value, as determined by the Board of Directors of the Company in
good faith, in excess of $500.0 million, the Company has received a
written opinion from an independent investment banking firm of nationally
recognized standing that such Asset Swap is fair to the Company or such
Restricted Subsidiary, as the case may be, from a financial point of view.
(c) In the event that the Company makes an Offer to Purchase the
Securities pursuant to this Section 3.12, the Company shall comply with any
applicable securities laws and regulations, including any applicable
requirements of Section 14(e) of, and Rule 14e-1 under, the Exchange Act and any
violation of the provisions of the indenture relating to such Offer to Purchase
occurring as a result of such compliance shall not be deemed an Event of Default
or an
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event that with the passing of time or giving of notice, or both, would
constitute an Event of Default.
SECTION 3.13. Limitation on Sale and Leaseback Transactions. (a) The
Company will not, and will not cause or permit any Restricted Subsidiary to,
enter into any Sale and Leaseback Transaction with respect to any property
unless:
(1) the Company or such Restricted Subsidiary, as the case may be,
receives consideration at the time of such Sale and Leaseback Transaction
at least equal to the fair market value (as determined by the Board of
Directors of the Company or such Restricted Subsidiary, as the case may
be, if the fair market value exceeds $20.0 million) of the property
subject to such transaction;
(2) the Company or such Restricted Subsidiary could have incurred
Indebtedness in an amount equal to the Attributable Indebtedness in
respect of such Sale and Leaseback Transaction pursuant to Section 3.10
hereof; and
(3) the Sale and Leaseback Transaction is treated as an Asset
Disposition and all of the conditions of Section 3.12 hereof (including
the provisions concerning the application of Net Available Proceeds after
the Sale and Leaseback Transaction) are satisfied at the time required to
be satisfied pursuant to that covenant with respect to such Sale and
Leaseback Transaction, treating all of the cash consideration (with the
items constituting cash consideration to be determined in accordance with
Section 3.12 hereof) received in such Sale and Leaseback Transaction as
Net Available Proceeds for purposes of such covenant.
For the purposes of this paragraph (a), the term "Sale and Leaseback
Transaction" means an arrangement relating to property now owned or hereafter
acquired whereby the Company or a Restricted Subsidiary transfers such property
to a person and the Company or a Restricted Subsidiary leases it from such
Person.
(b) In the event that paragraph (a) of this covenant no longer applies to
the Company and its Restricted Subsidiaries in light of the circumstances set
forth in Section 3.1 hereof, the Company will not engage in any Sale and
Leaseback Transactions (except leases for a temporary period not exceeding 36
months) involving any Principal Property, or permit any of its Restricted
Subsidiaries which has been in operation for more than 180 days to do so, unless
(1) the Company or such Restricted Subsidiary would be entitled to
incur Secured Debt on such Principal Property equal to the amount
realizable upon such sale or transfer as if such amount were secured by a
mortgage, without equally and ratably securing the Securities; or
(2) an amount equal to the greater of the net proceeds of the sale
or the fair value of such Principal Property is applied within 180 days
either to (A) the retirement of indebtedness of the Company that was
Funded Debt at the time it was created or (B) the purchase of other
Principal Property having a value at least equal to the greater of such
amounts; or
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(3) the Sale and Leaseback Transaction involved an industrial
revenue bond, pollution control bond or other similar financing
arrangement between the Company or any Restricted Subsidiary and any
federal, state or municipal government or other governmental body or
agency.
For the purposes of this paragraph (b), the term "Sale and Leaseback
Transaction" means any arrangement with any person or entity providing for the
leasing by the Company or any Restricted Subsidiary of any Principal Property
whereby such Principal Property has been or is to be sold or transferred by the
Company or a Restricted Subsidiary to such person or entity; provided, however,
that the foregoing shall not apply to any such arrangement involving a lease for
a term, including renewal rights, of not more than three years.
SECTION 3.14. Limitation on Payment Restrictions Affecting Restricted
Subsidiaries.
(a) The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, create or suffer to exist or
allow to become effective any consensual encumbrance or restriction of any kind
on the ability of any such Restricted Subsidiary to:
(1) pay dividends, in cash or otherwise, or make other payments or
distributions on its Capital Stock or any other equity interest or
participation in, or measured by, its profits, owned by the Company or by
any Restricted Subsidiary of the Company, or make payments on any
Indebtedness owed to the Company or to any Restricted Subsidiary of the
Company;
(2) make loans or advances to the Company or to any Restricted
Subsidiary of the Company; or
(3) transfer any of their respective property or assets to the
Company or to any Restricted Subsidiary of the Company.
(b) The restrictions in paragraph (a) above, however, will not apply
to encumbrances or restrictions existing under or by reason of:
(1) applicable law or regulations;
(2) customary provisions restricting subletting or assignment of any
lease governing a leasehold interest of any Restricted Subsidiary of the
Company;
(3) any agreement in effect on the Issue Date as any such agreement
is in effect on such date;
(4) any agreement relating to any Indebtedness incurred by such
Restricted Subsidiary prior to the date on which such Restricted
Subsidiary became a Subsidiary of the Company and outstanding on such date
and not incurred in anticipation or contemplation of becoming a Subsidiary
of the Company, provided, such encumbrance or restriction shall not apply
to any assets of the Company or its Restricted Subsidiaries other than
such Restricted Subsidiary;
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(5) any agreement effecting a refinancing of Indebtedness incurred
pursuant to an agreement referred to in clause (3) or (4) of this
paragraph (b) or this clause (5) or contained in any amendment to an
agreement referred to in clause (3) or (4) of this paragraph (b) or this
clause (5); provided, however, that the encumbrances and restrictions
contained in any such agreement or amendment are no less favorable in any
material respect to the Holders of the Securities than the encumbrances
and restrictions contained in such agreements referred to in clauses (3)
and (4) of this paragraph (b);
(6) Indebtedness or any other contractual requirements (including
pursuant to any corporate governance documents in the nature of a charter
or by-laws) of a Securitization Subsidiary arising in connection with a
Qualified Securitization Transaction, provided, that any such encumbrances
and restrictions apply only to such Securitization Subsidiary; or
(7) this Indenture.
SECTION 3.15. Limitation on Transactions with Affiliates.
(a) The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to:
(1) sell, lease, transfer or otherwise dispose of any of its
property or assets to any Affiliate of the Company or of any Subsidiary,
(2) purchase any property or assets from any Affiliate of the
Company or of any Subsidiary,
(3) make any Investment in any Affiliate of the Company or of any
Subsidiary, or
(4) enter into or amend or extend any contract, agreement or
understanding with or for the benefit of, any Affiliate of the Company or
of any Subsidiary (each of (1) through (4) being an "Affiliate
Transaction"),
other than Affiliate Transactions that are on terms that are no less favorable
to the Company or such Restricted Subsidiary of the Company than those that
could be obtained in a comparable arm's length transaction by the Company or
such Restricted Subsidiary of the Company from an unaffiliated party; provided,
that if the Company or any Restricted Subsidiary of the Company enters into an
Affiliate Transaction or series of Affiliate Transactions involving or having an
aggregate value of more than $20.0 million, a majority of the disinterested
members of the Board of Directors of the Company or a committee thereof shall,
prior to the consummation of such Affiliate Transaction, have determined (as
evidenced by a resolution thereof) that such Affiliate Transaction meets the
foregoing standard.
(b) The restrictions in paragraph (a) above shall not apply to:
(1) any transaction between Restricted Subsidiaries of the Company,
or between the Company and any Restricted Subsidiary of the Company if
such transaction is not otherwise prohibited by the terms of this
Indenture;
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(2) transactions entered into in the ordinary course of business;
(3) reasonable fees and compensation paid to and advances of
expenses to and indemnity provided on behalf of officers, directors,
employees or consultants of the Company or any Subsidiary as determined in
good faith by the Company's Board of Directors or senior management;
(4) any Qualified Securitization Transactions;
(5) any agreement as in effect as of the Issue Date (including,
without limitation, the Operating Agreement, the agreements relating to
the Receivables Facility and the Tax Sharing Agreement between the Company
and Xxxx Credit Corporation) or any amendment thereto or any transaction
contemplated thereby (including pursuant to any amendment thereto) or in
any replacement agreement thereto so long as any such replacement
agreement is not more disadvantageous to the Holders in any material
respect than the original agreement as in effect on the Issue Date;
(6) Restricted Payments permitted by this Indenture;
(7) loans or advances to employees or consultants in the ordinary
course of business;
(8) joint venture partners or purchasers or sellers of goods or
services, in each case in the ordinary course of business (including,
without limitation, pursuant to joint venture agreements) and otherwise in
compliance with the terms of this Indenture which are fair to the Company
or its Restricted Subsidiaries, in the reasonable determination of the
senior management of the Company, or are on terms at least as favorable as
might reasonably have been obtained at such time from an unaffiliated
party; and
(9) any employment or compensation arrangement entered into by the
Company or any of its Restricted Subsidiaries in the ordinary course of
business that is not otherwise prohibited by this Indenture.
SECTION 3.16. Limitation on Guarantees by Restricted Subsidiaries.
(a) The Company will not cause or permit any of its Restricted
Subsidiaries, directly or indirectly, to guarantee the payment of any
Indebtedness of the Company unless such Restricted Subsidiary of the Company
simultaneously executes and delivers a supplemental indenture to this Indenture
providing for the guarantee of payment of the Securities (each a "Subsidiary
Guarantee") by such Restricted Subsidiary of the Company (a "Subsidiary
Guarantor"); provided, any guarantee by a Subsidiary Guarantor of such other
Indebtedness:
(1) (a) (I) is unsecured or (II) is secured and (A) in the case of
any such guarantee of Indebtedness of the Company ranking pari passu with
the Securities, the relevant Subsidiary Guarantees are secured equally and
ratably with any Liens securing such guarantee and (B) in the case of any
such guarantee of Indebtedness of the Company subordinated to the
Securities, the relevant Subsidiary Guarantees are secured on a basis
ranking prior to the Liens securing such guarantee and
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(b) (I) in the case of any such guarantee of Indebtedness of the
Company subordinated or junior to the Securities (whether pursuant to its
terms or by operation of law), such guarantee is subordinated pursuant to
a written agreement to the relevant Subsidiary Guarantees at least to the
same extent and in the same manner as such other Indebtedness is
subordinated to the Securities, or (II) the Subsidiary Guarantees are not
subordinated or junior to any Indebtedness of such Subsidiary Guarantor;
and
(2) such Subsidiary Guarantor waives, and agrees it will not in any
manner whatsoever claim or take the benefit or advantage of, any rights of
reimbursement, indemnity or subrogation or any other rights against the
Company or any other Subsidiary of the Company as a result of any payment
by it under such Subsidiary Guarantees.
(b) Notwithstanding the provisions of paragraph (a) of this Section
3.16, any Subsidiary Guarantee shall provide by its terms that it shall be
automatically and unconditionally released and discharged upon either (i) the
unconditional release or discharge of such Subsidiary Guarantor's guarantees of
all other Indebtedness of the Company (other than a release resulting from
payment under such Subsidiary Guarantor's guarantees) or (ii) any sale, exchange
or transfer, to any Person not an Affiliate of the Company, of all (but not less
than all) of the Capital Stock of such Subsidiary Guarantor, or all or
substantially all of the assets of such Subsidiary Guarantor, pursuant to a
transaction which is in compliance with all of the terms of this Indenture.
(c) The provisions of paragraph (a) and (b) of this Section 3.16
shall not apply with respect to
(1) guarantees by Restricted Subsidiaries outstanding on the Issue
Date;
(2) guarantees of Acquired Indebtedness outstanding at the time that
a Restricted Subsidiary becomes a Subsidiary of the Company; and
(3) guarantees by Restricted Subsidiaries of Indebtedness to the
extent such Indebtedness could have been incurred by such Restricted
Subsidiaries pursuant to clause (16) of Section 3.10 hereof (without
duplication in the case of the same Indebtedness being guaranteed by one
or more Restricted Subsidiaries).
SECTION 3.17. Offer to Repurchase Upon a Change of Control.
(a) Upon the occurrence of a Change of Control, each Holder shall
have the right to require the Company to repurchase all or any part (equal to
$1,000 or an integral multiple thereof) of that Holder's Securities pursuant to
the Change of Control offer on the terms set forth in this Indenture (a "Change
of Control Offer") at an offer price in cash equal to 101% of the aggregate
principal amount of Securities repurchased plus accrued and unpaid interest on
the Securities repurchased to the date of purchase (the "Change of Control
Payment"). Within 30 days following any Change of Control, the Company shall
mail a notice to each Holder stating:
(1) the transaction or transactions that constitute the Change of
Control;
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(2) that the Change of Control Offer is being made pursuant to this
Section 3.17 and that all Securities tendered shall be accepted for
payment;
(3) the purchase price and the purchase date, which date shall be no
earlier than 30 days and no later than 60 days from the date the notice is
mailed (the "Change of Control Payment Date");
(4) that any Security not tendered or properly withdrawn shall
continue to accrue interest;
(5) that, unless the Company defaults in the payment of the Change
of Control Payment, all Securities accepted for payment pursuant to the
Change of Control Offer shall cease to accrue interest after the Change of
Control Payment Date;
(6) that Holders electing to have any Securities purchased pursuant
to a Change of Control Offer shall be required to surrender the
Securities, with the form entitled "Option of Holder to Elect Purchase" on
the reverse of the Securities completed, to a Paying Agent at the
addresses specified in the notice prior to the close of business on the
third Business Day preceding the Change of Control Payment Date;
(7) that Holders shall be entitled to withdraw their election if the
applicable Paying Agent receives, not later than the close of business on
the second Business Day preceding the Change of Control Payment Date, a
telegram, telex, facsimile transmission or letter setting forth the name
of the Holder, the principal amount of Securities delivered for purchase,
and a statement that such Holder is withdrawing his election to have the
Securities purchased; and
(8) that Holders whose Securities are being purchased only in part
shall be issued new Securities equal in principal amount to the
unpurchased portion of the Securities surrendered, which unpurchased
portion must be equal to $1,000 in principal amount or an integral
multiple thereof.
(b) On the Change of Control Payment Date, the Company shall, to the
extent lawful:
(1) accept for payment all Securities or portions of Securities
validly tendered and not properly withdrawn pursuant to the Change of
Control Offer;
(2) deposit with the Paying Agents, an amount equal to the Change of
Control Payment in respect of all Securities or portions of Securities
properly tendered and not properly withdrawn pursuant to the Change of
Control Offer; and
(3) deliver or cause to be delivered to the Trustee the Securities
so accepted together with an Officer's Certificate stating the aggregate
principal amount of Securities or portions of Securities being purchased
by the Company.
(c) The Paying Agents shall promptly mail to each Holder of
Securities validly tendered and not properly withdrawn the Change of Control
Payment for such Securities,
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and the Trustee shall promptly authenticate and mail (or cause to be transferred
by book entry) to each Holder a new Security equal in principal amount to any
unpurchased portion of the Securities surrendered, if any; provided that each
new Security will be in a principal amount of $1,000 or an integral multiple
thereof.
(d) The Company shall publicly announce the results of the Change of
Control Offer on or as soon as practicable after the Change of Control Payment
Date.
(e) The Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Change of Control Offer
made by the Company and purchases all Securities validly tendered and not
properly under such Change of Control Offer.
(f) The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with the
repurchase of the Securities as a result of a Change of Control. To the extent
that the provisions of any securities laws or regulations conflict with the
Change of Control provisions of this Indenture, the Company shall comply with
the applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 3.17 by virtue of such conflict.
SECTION 3.18. Payments for Consents. Neither the Company nor any of its
Restricted Subsidiaries will, directly or indirectly, pay or cause to be paid
any consideration, whether by way of interest, fees or otherwise, to any Holder
for or as an inducement to any consent, waiver or amendment of any of the terms
or provisions of this Indenture or the Securities unless such consideration is
offered to be paid or is paid to all Holders that consent, waive or agree to
amend in the time frame set forth in the solicitation documents relating to such
consent, waiver or amendment.
SECTION 3.19. Further Instruments and Acts. Upon request of the Trustee or
as otherwise necessary, the Company will execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purpose of this Indenture.
ARTICLE IV
MERGER, CONSOLIDATION OR SALE BY THE COMPANY
SECTION 4.1. Merger, Consolidation, Etc.. The Company will not consolidate
with or merge with or into any other Person, or transfer (by lease, assignment,
sale, or otherwise) all or substantially all of its properties and assets to
another Person unless:
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(a) either (1) the Company shall be the continuing or surviving
Person in such a consolidation or merger or (2) the Person (if other than the
Company) formed by such consolidation or into which the Company is merged or to
which all or substantially all of the properties and assets of the Company are
transferred (the Company or such other Person being referred to as the
"Surviving Person") shall be a corporation organized and validly existing under
the laws of the United States, any state thereof, or the District of Columbia,
and shall expressly assume, by a supplemental indenture, all the obligations of
the Company under the Securities and this Indenture;
(b) immediately after the transaction and the incurrence or
anticipated incurrence of any Indebtedness to be incurred in connection
therewith, no Event of Default will exist;
(c) immediately after giving effect to such transaction and the
assumption contemplated by clause (a) above (including giving effect to any
Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred in
connection with or in respect of such transaction), the Surviving Person could
incur at least $1.00 of additional Indebtedness pursuant to clause (1) of
Section 3.10 hereof; and
(d) an Officer's Certificate has been delivered to the Trustee to
the effect that the conditions set forth in the preceding clauses (a), (b) and,
to the extent then applicable, (c) have been satisfied and an Opinion of Counsel
(from a counsel who shall not be an employee of the Company) has been delivered
to the Trustee to the effect that the conditions set forth in the preceding
clause (a) and, to the extent then applicable, clause (c), have been satisfied.
Upon any consolidation, merger or transfer in accordance with the
foregoing, the Surviving Person will succeed to and be substituted for the
Company with the same effect as if it had been named herein as a party hereto,
and thereafter the predecessor corporation will be relieved of all obligations
and covenants under the Securities and this Indenture.
ARTICLE V
REDEMPTION OF SECURITIES
SECTION 5.1. Applicability of Article. The Securities shall be redeemable
in accordance with their terms and in accordance with this Article.
SECTION 5.2. Election to Redeem; Notice to Trustee. The election of the
Company to redeem any Securities shall be evidenced by or pursuant to a Board
Resolution. In the case of any redemption at the election of the Company of less
than all the Securities, the Company shall, not less than 5 days prior to giving
the notice of redemption contemplated by Section 5.4 (unless a shorter notice
shall be satisfactory to the Trustee), notify the Trustee of such Redemption
Date, Redemption Price, and the principal amount of Securities to be redeemed.
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SECTION 5.3. Selection of Securities to be Redeemed. If less than all the
Securities are to be redeemed, the particular Securities to be redeemed will be
selected not more than 60 days prior to the Redemption Date by the Trustee in
compliance with any applicable rules of the securities exchange, if any, on
which the Securities are listed or, if the Securities are not listed on a
securities exchange or if there are no applicable rules, on a pro rata basis, by
lot or by such other method as the Trustee deems appropriate and fair; provided
that the unredeemed portion of the principal amount of any Security shall be in
an authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. If less than all of the Securities are to be
redeemed, the Trustee shall make the selection from the Securities that have not
previously been called for redemption and may provide for the selection for
redemption of portions (equal to the minimum authorized denomination for the
Securities, or any integral multiple of $1,000 in excess thereof) of the
principal amount of the Securities of a denomination larger than the minimum
authorized denomination for Securities.
The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption and, in the case of any Securities selected for partial
redemption, the principal amount thereof to be redeemed. If the Company shall so
direct, Securities registered in the name of the Company, any Affiliate of the
Company or any Subsidiary of the Company thereof shall not be included in the
Securities selected for redemption.
For purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Securities shall relate, in the case of
any Securities redeemed or to be redeemed only in part, to the portion of the
principal amount of such Securities which has been or is to be redeemed.
SECTION 5.4. Notice of Redemption. Notice of redemption shall be given in
the manner provided for in Section 10.2 not less than 30 nor more than 60 days
prior to the Redemption Date, to each Holder of Securities to be redeemed. The
Trustee shall give notice of redemption in the Company's name and at the
Company's expense; provided, however, that the Company shall deliver to the
Trustee, at least 5 days prior to day on which the Company wishes for the notice
of redemption to be given, an Officer's Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in such notice
as provided in the following items.
All notices of redemption shall state:
(a) the Redemption Date;
(b) the Redemption Price and the amount of accrued interest to the
Redemption Date payable as provided in Section 5.5 hereof;
(c) if less than all of the Outstanding Securities are to be
redeemed, the identification (and in the case of partial redemption, the
principal amounts) of the particular Security or Securities to be redeemed;
(d) in case any Security is to be redeemed in part only, the notice
which relates to such Security shall state that on and after the Redemption
Date, upon surrender of such
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Security, the Holder will receive, without charge, a new Security or Securities
of authorized denominations for the principal amount thereof remaining
unredeemed;
(e) the Place of Payment where such Securities are to be surrendered
for payment for the Redemption Price;
(f) that Securities called for redemption must be surrendered to the
applicable Paying Agent to collect the Redemption Price;
(g) that, on the Redemption Date, the Redemption Price will become
due and payable upon each such Security, or the portion thereof, to be redeemed
and, if applicable, that interest thereon will cease to accrue on and after said
date; and
(h) the CUSIP and ISIN numbers, if any, of the Securities being
redeemed.
Notice of redemption of Securities to be redeemed shall be given by the
Company or, at the Company's request, by the Trustee in the name and at the
expense of the Company.
SECTION 5.5. Deposit of Redemption Price. On or prior to any Redemption
Date, the Company shall deposit with the Trustee or with the applicable Paying
Agent (or, if the Company is acting as its own Paying Agent, segregate and hold
in trust as provided in Section 3.4) an amount of money sufficient to pay on the
Redemption Date the Redemption Price of, and (unless the Redemption Date shall
be an interest payment date) interest accrued and unpaid to the Redemption Date
on, all Securities or portions thereof which are to be redeemed on that date.
SECTION 5.6. Securities Payable on Redemption Date. Notice of redemption
having been given as aforesaid, the Securities so to be redeemed shall, on the
Redemption Date, become due and payable at the Redemption Price therein
specified, and from and after such date (unless the Company shall default in the
payment of the Redemption Price and accrued and unpaid interest thereon) such
Securities shall cease to bear interest. Upon surrender of any such Security for
redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the
Redemption Date; provided, however, that installments of interest whose Stated
Maturity is on or prior to the Redemption Date shall be payable to the Holders
of such Securities, or one or more predecessor Securities, registered as such at
the close of business on the relevant record dates according to their terms.
If any Security called for redemption shall not be so paid upon surrender
thereof for redemption, the principal (and premium, if any) shall, until paid,
bear interest from the Redemption Date at the rate prescribed therefor in the
Security.
SECTION 5.7. Securities Redeemed in Part. Upon surrender of a Security
that is redeemed in part at the office or agency of the Company maintained for
such purpose pursuant to Section 3.2 hereof (with, if the Company or the Trustee
so requires, due endorsement by, or a written instrument of transfer in form
satisfactory to the Company and the Trustee duly executed by, the Holder thereof
or his attorney duly authorized in writing), the Company shall execute and the
Trustee shall authenticate and deliver to the Holder of that Security, without
service charge, a new Security or Securities, having the same form, terms and
Stated Maturity, in any authorized
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denomination equal in aggregate principal amount to the unredeemed portion of
the principal amount of the Security surrendered.
SECTION 5.8. Optional Redemption. The Company may, at its option, redeem
the Securities in whole, or from time to time in part, at any time after March
15, 2006. Any redemption pursuant to this Section 5.8 shall be made pursuant to
the provisions of Section 5.1 through 5.7 hereof. The Notes shall be redeemable
at the following Redemption Prices (expressed as percentages of the principal
amount) plus accrued and unpaid interest, if any, to but excluding the
Redemption Date, if redeemed during the 12-month period commencing on or after
March 15 of the years set forth below:
REDEMPTION
YEAR PRICE
---- -----
2006.......................................... 105.063%
2007.......................................... 102.531%
2008 and thereafter........................... 100.000%
Notwithstanding the foregoing, if a redemption date is on or after an interest
record date and on or before the related interest payment date, the accrued and
unpaid interest, if any, will be paid to the Person in whose name the Note being
redeemed is registered at the close of business on such record date, and no
additional interest will be payable to holders whose Notes will be subject to
redemption by the Company.
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.1. Events of Default. An "Event of Default" occurs with respect
to the Securities if any of the following events occur (whatever the reason for
such Event of Default and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment, decree or order of any
court or any order, rule or regulation of any administrative or governmental
body):
(a) default in the payment of principal of, or premium, if any, on
any Security when due at maturity, upon repurchase, upon acceleration or
otherwise, including, without limitation, failure of the Company to repurchase
any Security on the date required following a Change of Control; or
(b) default in the payment of any installment of interest on any
Security (including any additional interest to be paid as required by the
Registration Rights Agreement), when due and continuance of such Default for 30
days or more; or
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(c) failure to observe, perform or comply with any of the applicable
provisions of Section 4.1;
(d) default (other than a default set forth in paragraphs (a), (b)
and (c) above) in the performance of, or breach of, any other applicable
covenant or warranty of the Company or of any Restricted Subsidiary in this
Indenture and failure to remedy such default or breach within a period of 60
days after written notice from the Trustee or the Holders of at least 25% in
aggregate principal amount of the then Outstanding Securities;
(e) default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by the Company or any Restricted Subsidiary of
the Company (or the payment of which is guaranteed by the Company or any
Restricted Subsidiary of the Company), which default results in the acceleration
of such Indebtedness prior to its express maturity and the principal amount of
any such Indebtedness, together with the principal amount of any other such
Indebtedness the maturity of which has been so accelerated, aggregates $100.0
million or more and such acceleration has not been rescinded or annulled or such
Indebtedness discharged in full within 30 days;
(f) the entry by a court of competent jurisdiction of one or more
judgments, orders or decrees against the Company or any Restricted Subsidiary of
the Company or any of their respective property or assets in an aggregate amount
in excess of $100.0 million, which judgments, orders or decrees have not been
vacated, discharged, satisfied or stayed pending appeal within 30 days from the
entry thereof and with respect to which legal enforcement proceedings have been
commenced;
(g) the Company or a Material Subsidiary, pursuant to or within the
meaning of any Bankruptcy Law, (i) commences a voluntary case or proceeding,
(ii) consents to the entry of an order for relief against it in an involuntary
case or proceeding, (iii) consents to the appointment of a Custodian of it or
for all or substantially all of its property, (iv) makes a general assignment
for the benefit of its creditors, (v) makes an admission in writing of its
inability to pay its debts generally as they become due or (vi) takes corporate
action in furtherance of any such action; or
(h) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that (i) is for relief against the Company or a
Material Subsidiary, in an involuntary case, (ii) adjudges the Company or a
Material Subsidiary as bankrupt or insolvent, or approves as properly filed a
petition seeking reorganization, arrangement, and adjustment or composition of
or in respect of the Company or a Material Subsidiary, or appoints a Custodian
of the Company or a Material Subsidiary, or for all or substantially all of its
property, or (iii) orders the liquidation of the Company or a Material
Subsidiary and, in any such case, the decree remains unstayed and in effect for
60 days.
The Company shall deliver to the Trustee, as soon as practicable (and in
any event no later than the fifth Business Day after any Officer obtains
knowledge of such Default), written notice, in the form of an Officer's
Certificate, of any Default, its status and what action the Company is taking or
proposes to take with respect thereto.
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SECTION 6.2. Acceleration; Rescission and Annulment. If an Event of
Default (other than an Event of Default specified in Section 6.1(g) or (h) above
involving the Company) occurs and is continuing, then and in every such case the
Trustee or the Holders of not less than 25% in aggregate principal amount of the
then Outstanding Securities may, and the Trustee shall upon the request of
Holders of not less than 25% in aggregate principal amount of the Securities
then Outstanding, declare the unpaid principal of, premium, if any, and accrued
and unpaid interest on all the Securities then Outstanding to be due and
payable, by a notice in writing to the Company (and to the Trustee, if given by
Holders) and upon such declaration such principal amount, premium, if any, and
accrued and unpaid interest will become immediately due and payable,
notwithstanding anything contained in this Indenture or the Securities to the
contrary. If an Event of Default specified in Section 6.1(g) or (h) above
involving the Company occurs, all unpaid principal of, and premium, if any, and
accrued and unpaid interest on the Securities then Outstanding will ipso facto
become due and payable without any declaration or other act on the part of any
Trustee or any Holder.
The Holders of a majority in aggregate principal amount of the Securities
then Outstanding by notice to the Trustee may rescind an acceleration of the
Securities and its consequences if all existing Events of Default (other than
the nonpayment of principal of and premium, if any, and interest on the
Securities which has become due solely by virtue of such acceleration) have been
cured or waived and if the rescission would not conflict with any judgment or
decree. No such rescission shall affect any subsequent Default or impair any
right consequent thereto.
SECTION 6.3. Collection of Indebtedness and Suits for Enforcement by
Trustee. The Company covenants that if:
(a) default is made in the payment of any interest on any Security,
if any, when such interest becomes due and payable and such default continues
for a period of 30 days, or
(b) default is made in the payment of the principal of (or premium,
if any, on) any Security at the Maturity thereof,
the Company will, upon demand of the Trustee, pay to it, for the benefit of the
Holder of such Security, the whole amount then due and payable on such Security
for principal, premium, if any, and interest and, to the extent that payment of
such interest shall be legally enforceable, interest on any overdue principal,
premium, if any, and on any overdue interest, at the rate or rates prescribed
therefor in such Security and, in addition thereto, such further amount as shall
be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
If an Event of Default with respect to the Securities occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its
rights and the rights of the Holders of such Securities by such appropriate
judicial proceedings as the Trustee shall deem necessary to protect and enforce
any such rights, whether for the specific enforcement of any covenant or
agreement in this Indenture or in aid of the exercise of any power granted
herein, or to secure any other proper remedy.
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SECTION 6.4. Trustee May File Proofs of Claim. The Trustee may file such
proofs of claim and other papers or documents and take such actions authorized
under the Trust Indenture Act as may be necessary or advisable in order to have
the claims of the Trustee and the Holders of Securities allowed in any judicial
proceedings relating to the Company (or any other obligor upon the Securities),
its creditors or its property. In particular, the Trustee shall be authorized to
collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute the same; and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.9 hereof.
SECTION 6.5. Trustee May Enforce Claims Without Possession of Securities.
All rights of action and claims under this Indenture or the Securities may be
prosecuted and enforced by the Trustee, in its own name as an express trust,
without the possession of any of the Securities or the production thereof in any
proceeding relating thereto and any recovery of judgment shall, after provision
for the reasonable fees and expenses of the Trustee and its counsel, be for the
ratable benefit of the Holders of the Securities in respect to which judgment
was recovered.
SECTION 6.6. Delay or Omission Not Waiver. No delay or omission by the
Trustee or any Holder of any Securities to exercise any right or remedy accruing
upon an Event of Default shall impair any such right or remedy or constitute a
waiver of or acquiescence in any such Event of Default.
SECTION 6.7. Waiver of Past Defaults. In addition to the provisions of
Section 6.2 hereof, the Holders of a majority in aggregate principal amount of
the Securities then Outstanding by written notice to the Trustee may waive on
behalf of the Holders of all Securities a past Default or Event of Default as it
relates to the Securities and its consequences except (i) a Default or Event of
Default in the payment of the principal of, or premium, if any, or interest, if
any, on any Security or (ii) an Event of Default resulting from the breach of a
covenant or provision hereof which pursuant to Section 9.2 hereof cannot be
amended or modified without the consent of the Holder of each Outstanding
Security adversely affected. 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.
SECTION 6.8. Control by Majority. The Holders of a majority in aggregate
principal amount of the then Outstanding Securities shall have the right to
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on it with
respect to the Securities; provided, however, that (a) the Trustee may refuse to
follow any direction that conflicts with law or this Indenture (b) the Trustee
may refuse to follow any direction that is prejudicial to the rights of the
Holders of Securities not consenting or that would in the good faith judgment of
the Trustee have a substantial likelihood of involving the Trustee in personal
liability and (c) the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction. Prior to the taking of
any action hereunder, the Trustee shall be entitled to reasonable
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indemnification satisfactory to the Trustee against all losses and expenses
caused by taking or not taking such action. This paragraph shall be in lieu of
Section 316(a)(1)(A) of the Trust Indenture Act and such Section 316(a)(1)(A) is
hereby expressly excluded from this Indenture, as permitted by the Trust
Indenture Act.
SECTION 6.9. Limitation on Suits by Holders. No Holder of any Security
shall have any right to institute any proceeding, judicial or otherwise, with
respect to this Indenture, or for the appointment of a receiver or trustee, or
for any other remedy hereunder, unless:
(a) the Holder has previously given written notice to the Trustee of
a continuing Event of Default with respect to the Securities;
(b) the Holders of at least 25% in aggregate principal amount of the
Outstanding Securities have made a written request to the Trustee to institute
proceedings in respect of such Event of Default in its own name as Trustee
hereunder;
(c) such Holder or Holders have offered to the Trustee indemnity
satisfactory to the Trustee against any loss, liability or expense to be, or
which may be, incurred by the Trustee in pursuing the remedy;
(d) the Trustee for 60 days after its receipt of such notice,
request and the offer of indemnity has failed to institute any such proceedings;
and
(e) during such 60 day period, the Holders of a majority in
aggregate principal amount of the Outstanding Securities have not given to the
Trustee a direction inconsistent with such written request.
No one or more Holders shall have any right in any manner whatever by
virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to
obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all of such Holders.
SECTION 6.10. Rights of Holders to Receive Payment. Notwithstanding any
other provision of this Indenture, but subject to Section 3.2 hereof, the right
of any Holder of a Security to receive payment of principal of, premium, if any,
and, subject to Sections 2.1, 2.3 and 2.13 hereof, interest, on the Security, on
or after the respective due dates expressed in the Security (or, in case of
redemption, on the Redemption Dates), or, subject to Section 6.9 hereof, 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 6.11. Application of Money Collected. If the Trustee collects any
money pursuant to this Article, it shall pay out the money in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal, premium, if any, or
interest, if any, upon presentation of the Securities and the notation thereon
of the payment if only partially paid and upon surrender thereof if fully paid:
First: to the Trustee for amounts due under Section 7.9 hereof;
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Second: to Holders of Securities in respect of which or for the benefit of
which such money has been collected for amounts due and unpaid on such
Securities for principal of, premium, if any, and interest, ratably, without
preference or priority of any kind, according to the amounts due and payable on
such Securities for principal, premium, if any, and interest, respectively; and
Third: to the Company.
The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.11. At least 15 days before such record date,
the Trustee shall mail to each Holder and the Company a notice that states the
record date, the payment date and the amount to be paid.
SECTION 6.12. Restoration of Rights and Remedies. If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any reason,
or has been determined adversely to the Trustee or to such Holder, then and in
every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to
their former positions hereunder and thereafter all rights and remedies of the
Trustee and the Holders shall continue as though no such proceeding had been
instituted.
SECTION 6.13. Rights and Remedies Cumulative. Except as otherwise provided
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities in the last paragraph of Section 2.10 hereof, no right or
remedy herein conferred upon or reserved to the Trustee or the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any existing right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.
SECTION 6.14. Waiver of Usury, Stay or Extension Laws. The Company
covenants (to the extent that it may lawfully do so) that it will not at any
time insist upon, or plead, or in any manner whatsoever claim or take the
benefit or advantage of, any usury, stay or extension law wherever enacted, now
or at any time hereafter in force, which 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 will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.
SECTION 6.15. Undertaking for Costs. In any suit for the enforcement of
any right or remedy under this Indenture or in any suit against the Trustee for
any action taken or omitted by it as Trustee, a court in its discretion may
require the filing by any party litigant in the suit of an undertaking to pay
the costs of the suit, and the court in its discretion may assess reasonable
costs, including reasonable attorneys' fees and expenses, 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.
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ARTICLE VII
TRUSTEE
SECTION 7.1. Certain Duties and Responsibilities of the Trustee.
(a) Except during the continuance of an Event of Default, the
Trustee's duties and responsibilities under this Indenture shall be governed by
Section 315(a) of the Trust Indenture Act.
(b) In case an Event of Default has occurred and is continuing with
respect to the Securities, the Trustee shall exercise the rights and powers
vested in it by this Indenture with respect to such Securities, and shall use
the same degree of care and skill in their exercise, as a prudent person would
exercise or use under the circumstances in the conduct of his own affairs.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that this subsection shall not be
construed to limit the effect of subsection (a) of this Section; the Trustee
shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts; and the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good faith in
accordance with the direction of the Holders in accordance with Section 6.8
hereof relating to the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
upon the Trustee, under this Indenture.
SECTION 7.2. Rights of Trustee. Subject to the provisions of the Trust
Indenture Act:
(a) the Trustee may conclusively rely and shall be protected in
acting or refraining from acting upon any document (whether in its original or
facsimile form) believed by it to be genuine and to have been signed or
presented by the proper party or parties. The Trustee need not investigate any
fact or matter stated in the document;
(b) any request or direction of the Company mentioned herein shall
be sufficiently evidenced by a Company Request or Company Order and any
resolution of a Board of Directors may be sufficiently evidenced by a Board
Resolution;
(c) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officer's Certificate;
(d) the Trustee may consult with counsel of its selection and the
advice of such counsel or any Opinion of Counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;
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(e) the Trustee may act through agents or attorneys and shall not be
responsible for the misconduct or negligence of any agent or attorney appointed
with due care;
(f) the Trustee shall not be liable for any action it takes or omits
to take in good faith which it believes to be authorized or within its rights or
powers;
(g) the Trustee shall not be required to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of
its duties hereunder, or in the exercise of its rights or powers;
(h) 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 expense of the Company and shall incur no liability of any
kind by reason of such inquiry or investigation;
(i) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction of
any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity satisfactory to the
Trustee against the costs, expenses and liabilities which might be incurred by
it in compliance with such request or direction;
(j) whether or not therein expressly so provided, every provision of
this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this
Section 7.2;
(k) 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. Trustee May Hold Securities. The Trustee, any Paying Agent,
any Registrar or any other agent of the Company in its individual or any other
capacity, may become the owner or pledgee of Securities and, subject to Sections
310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company,
an Affiliate of the Company or Subsidiary of the Company with the same rights it
would have if it were not Trustee, Paying Agent, Registrar or such other agent.
SECTION 7.4. Money Held in Trust. Money held by the Trustee in trust
hereunder need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed upon in writing with the
Company.
SECTION 7.5. Trustee's Disclaimer. The recitals contained herein and in
the Securities, except the Trustee's certificate of authentication, shall be
taken as the statements of
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the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities or any coupon. The Trustee shall not be accountable
for the Company's use of the proceeds from the Securities or for monies paid
over to the Company pursuant to the Indenture.
SECTION 7.6. Notice of Defaults. If a Default occurs and is continuing
with respect to the Securities and if it is actually known to a Responsible
Officer of the Trustee, the Trustee shall, within 90 days after it occurs,
transmit by mail to the relevant Holders of Securities, in the manner and to the
extent provided in Section 313(c) of the Trust Indenture Act, notice of all
Defaults known to it unless such Default shall have been cured or waived;
provided, however, that except for a Default or Event of Default (i) in payment
on the Securities or (ii) that resulted from the failure of the Company to
comply with the provisions of Section 4.1 or Section 3.17 hereof , the Trustee
may withhold the notice if and so long as its board of directors, its executive
committee or a committee of its Responsible Officers in good faith determines
that withholding such notice is in the interests of the relevant Holders of
Securities.
SECTION 7.7. Reports by Trustee to Holders. Within 60 days after each May
15 of each year commencing with the first May 15 after the Issue Date, the
Trustee shall transmit by mail to all Holders of Securities as provided in
Section 313(c) of the Trust Indenture Act a brief report dated as of such May 15
if required by and in compliance with Section 313(a) of the Trust Indenture Act.
The Trustee shall also comply with Section 313(b) of the Trust Indenture Act, if
applicable. A copy of each such report required pursuant to Section 313(a) or
313(b) of the Trust Indenture Act shall, at the time of such transmission to
Holders, be filed by the Trustee with each stock exchange, if any, upon which
the Securities are listed, with the Commission and with the Company. The Company
will promptly notify the Trustee when the Securities are listed on, or delisted
from, any stock exchange.
SECTION 7.8. Securityholder 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 Holders of the Securities. If the Trustee is not
the Registrar for the Securities, the Company shall furnish to the Trustee
semiannually on or before the last day of June and December in each year, 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 containing all the
information in the possession or control of the Registrar, the Company or any of
its Paying Agents other than the Trustee as to the names and addresses of
Holders of the Securities.
SECTION 7.9. Compensation and Indemnity.
(a) The Company shall pay to the Trustee from time to time such
reasonable compensation for its services as the Company and the Trustee shall
agree in writing from time to time. The Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company
shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred by it in connection with the performance of its duties under
this Indenture. Such expenses shall include the reasonable compensation and
expenses of the Trustee's agents and counsel.
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(b) The Company shall fully indemnify the Trustee or any predecessor
Trustee and their agents for, and hold them harmless against, any and all loss,
liability, damage, claim or expense including reasonable legal fees and expenses
and taxes (other than taxes based upon or determined or measured by the income
of the Trustee) incurred by it arising out of or in connection with its
acceptance or administration of the trust or trusts hereunder, including the
reasonable costs and expenses of defending itself against any claim or liability
in connection with the exercise or performance of any of its powers or duties
hereunder. The Trustee shall notify the Company promptly of any claim of which a
Responsible Officer has received written notice for which it may seek indemnity.
The Company shall defend the claim and the Trustee shall cooperate in the
defense; provided that the Company shall pay the reasonable fees and expenses of
separate counsel, if any, of the Trustee in connection with such defense only if
the actual or potential defendants in such claim include both the Trustee and
the Company, and the Trustee shall have reasonably concluded that there may be
defenses available to it which are different from or in addition to the defenses
which may be available to the Company or there otherwise exists a conflict of
interest. The Company need not pay for any settlement made without its consent,
which consent shall not be unreasonably withheld.
(c) The Company need not reimburse any expense or indemnify against
any loss, liability, damage or claim incurred by the Trustee as determined by a
court of competent jurisdiction to have been caused by its own gross negligence
or bad faith or willful misconduct.
(d) To secure the payment obligations of the Company pursuant to
this Section, the Trustee shall have a lien prior to the Securities on all money
or property held or collected by the Trustee, except that held in trust to pay
principal, premium, if any, and interest on particular Securities.
When the Trustee incurs expenses or renders services in connection with an
Event of Default specified in Sections 6.1(g) or (h) hereof, the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any applicable Federal or state bankruptcy, insolvency or
other similar law.
The provisions of this Section shall survive the termination of this
Indenture and the resignation or removal of the Trustee.
SECTION 7.10. Replacement of Trustee.
(a) The resignation or removal of the Trustee and the appointment of
a successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in Section 7.11 hereof.
(b) The Trustee may resign at any time with respect to the
Securities by giving written notice thereof to the Company.
(c) The Holders of a majority in aggregate principal amount of the
Outstanding Securities may remove the Trustee by so notifying the Trustee and
the Company and may appoint a successor Trustee with the Company's consent.
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(d) If at any time:
(i) the Trustee fails to comply with Section 310(b) of the
Trust Indenture Act after written request therefor by the Company or
by any Holder who has been a bona fide Holder of a Security for at
least six months; or
(ii) the Trustee shall cease to be eligible under Section 7.12
hereof or Section 310(a) of the Trust Indenture Act and shall fail
to resign after written request therefor by the Company or by any
Holder of a Security who has been a bona fide Holder of a Security
for at least six months; or
(iii) the Trustee becomes incapable of acting, is adjudged a
bankrupt or an insolvent or a receiver or public officer takes
charge of the Trustee or its property or affairs for the purpose of
rehabilitation, conservation or liquidation, then, in any such case,
(A) the Company by or pursuant to a Board Resolution may remove the
Trustee with respect to all Securities, or (B) subject to Section
315(e) of the Trust Indenture Act, any Holder who has been a bona
fide Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of
competent jurisdiction for the removal of the Trustee with respect
to all Securities and the appointment of a successor Trustee or
Trustees.
(e) If the instrument of acceptance by a successor Trustee required
by Section 7.11 hereof shall not have been delivered to the Trustee within 30
days after the giving of such notice of resignation or removal, the Trustee
resigning or being removed may petition, at the expense of the Company, any
court of competent jurisdiction for the appointment of a successor Trustee with
respect to the Securities.
(f) If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company, by or pursuant to a Board
Resolution, shall promptly appoint a successor Trustee and shall comply with the
applicable requirements of Section 7.11 hereof. If, within one year after such
resignation, removal or incapability, or the occurrence of such vacancy, a
successor Trustee shall be appointed by the Holders of a majority in principal
amount of the Outstanding Securities delivered to the Company and the retiring
Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section
7.11 hereof, become the successor Trustee with respect to the Securities and to
that extent supersede the successor Trustee appointed by the Company. If no
successor Trustee shall have been so appointed by the Company or the Holders and
accepted appointment in the manner required by Section 7.11 hereof, any Holder
who has been a bona fide Holder of a Security for at least six months may, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction for the appointment of a successor Trustee.
SECTION 7.11. Acceptance of Appointment by Successor.
(a) In case of the appointment hereunder of a successor Trustee,
every such successor Trustee shall execute, acknowledge and deliver to the
Company and to the retiring
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Trustee an instrument accepting such appointment. Thereupon, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee, without further act, deed or conveyance, shall become vested with all
the rights, powers and duties of the retiring Trustee; but, on the request of
the Company or the successor Trustee, such retiring Trustee shall, upon payment
of its charges, execute and deliver an instrument transferring to such successor
Trustee all the rights, powers and trusts of the retiring Trustee and shall duly
assign, transfer and deliver to such successor Trustee all property and money
held by such retiring Trustee hereunder.
(b) Upon request of any such successor Trustee, the Company shall
execute any and all instruments for more fully and certainly vesting in and
confirming to the successor Trustee all such rights, powers and trusts referred
to in paragraph (a) of this Section 7.11.
(c) No successor Trustee shall accept its appointment unless at the
time of such acceptance such successor Trustee shall be qualified and eligible
under the Trust Indenture Act.
(d) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor Trustee in the manner
provided for notices to the Holders of Securities in Section 10.2 hereof. Each
notice shall include the name of the successor Trustee and the address of its
Corporate Trust Office.
SECTION 7.12. Eligibility; Disqualification. There shall at all times be a
Trustee hereunder which shall be eligible to act as Trustee under Section
310(a)(1) of the Trust Indenture Act and shall have a combined capital and
surplus of at least $50,000,000. If such corporation publishes reports of
condition at least annually, pursuant to law or the requirements of Federal,
State, Territorial or District of Columbia supervising or examining authority,
then, for the purposes of this Section 7.12, the combined capital and surplus of
such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time the
Trustee shall cease to be eligible in accordance with the provisions of this
Section 7.12, it shall resign immediately in the manner and with the effect
heretofore specified in this Article.
SECTION 7.13. Merger, Conversion, Consolidation or Succession to Business.
Any corporation into which the Trustee may be merged or converted or with which
it may be consolidated, or any corporation resulting from any merger, conversion
or consolidation to which the Trustee shall be a party, or any corporation
succeeding to all or substantially all the corporate trust business of the
Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto. In case any Securities shall have been authenticated,
but not delivered, by the Trustee then in office, any successor by merger,
conversion or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.
SECTION 7.14. Appointment of Authenticating Agent. The Trustee may appoint
an Authenticating Agent with respect to the Securities which shall be authorized
to act on behalf of the Trustee to authenticate Securities issued upon original
issue, exchange, registration of
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transfer or partial redemption thereof, and Securities so authenticated shall be
entitled to the benefits of this Indenture and shall be valid and obligatory for
all purposes as if authenticated by the Trustee hereunder. Any such appointment
shall be evidenced by an instrument in writing signed by a Responsible Officer
of the Trustee, a copy of which instrument shall be promptly furnished to the
Company. Wherever reference is made in this Indenture to the authentication and
delivery of Securities by the Trustee or the Trustee's certificate of
authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate
of authentication executed on behalf of the Trustee by an Authenticating Agent.
Each Authenticating Agent shall be acceptable to the Company.
Any corporation into which an Authenticating Agent may be merged or
converted or with which it may be consolidated, or any corporation resulting
from any merger, conversion or consolidation to which such Authenticating Agent
shall be a party, or any corporation succeeding to the corporate agency or
corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible
under this Section, without the execution or filing of any paper or further act
on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of an Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Company. Upon receiving such
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease to be eligible in accordance with the
provisions of this Section 7.14, the Trustee may appoint a successor
Authenticating Agent which shall be acceptable to the Company and shall give
notice of such appointment to all Holders of Securities with respect to which
such Authenticating Agent will serve in the manner set forth in Section 10.2
hereof. Any successor Authenticating Agent upon acceptance of its appointment
hereunder shall become vested with all the rights, powers and duties of its
predecessor hereunder, with like effect as if originally named as an
Authenticating Agent herein. No successor Authenticating Agent shall be
appointed unless eligible under the provisions of this Section 7.14.
The Company agrees to pay to each Authenticating Agent from time to time
reasonable compensation including reimbursement of its reasonable expenses
(including legal fees) for its services under this Section 7.14.
If an appointment is made pursuant to this Section 7.14, the Securities
may have endorsed thereon, in addition to or in lieu of the Trustee's
certificate of authentication, an alternate certificate of authentication
substantially in the following form:
This is one of the Securities described in the within-mentioned Indenture.
[_________________________________
as Trustee]
[by_________________________________
as Authenticating Agent]
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by_________________________________
Name:
Title:
Dated:______________________________
ARTICLE VIII
DISCHARGE OF INDENTURE; DEFEASANCE
SECTION 8.1. Termination of Company's Obligations Under this Indenture.
This Indenture shall upon a Company Request cease to be of further effect with
respect to the Securities (except as to any surviving rights of registration of
transfer or exchange of such Securities and replacement of such Securities which
may have been lost, stolen or mutilated as herein expressly provided for) and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to such
Securities when
(a) either
(i) all such Securities previously authenticated and delivered
(other than (A) such Securities which have been lost, stolen or
destroyed and which have been replaced or paid, as provided in
Section 2.10 hereof, and (B) such Securities for whose payment money
has theretofore been deposited in trust or segregated and held in
trust by the Company and thereafter repaid to the Company or
discharged from such trust as provided in Section 3.4 hereof) have
been delivered to the Trustee for cancellation; or
(ii) all Securities not theretofore delivered to the Trustee
for cancellation have become due and payable and the Company has
irrevocably deposited or caused to be deposited with the Trustee
funds in an amount sufficient to pay and discharge the entire
Indebtedness of the Securities issued hereunder not theretofore
delivered to the Trustee for cancellation, for principal of,
premium, if any, and interest on the Securities issued hereunder to
the date of deposit together with irrevocable instructions from the
Company directing the Trustee to apply such funds to the payment
thereof at maturity; or
(b) the Company has paid or caused to be paid all other sums payable
hereunder by the Company; and
(c) the Company delivered to the Trustee an Officer's Certificate
and an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with.
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Notwithstanding the satisfaction and discharge of this Indenture, the obligation
of the Company to the Trustee and any predecessor Trustee under Section 7.9
hereof, the obligations of the Company to any Authenticating Agent under Section
7.14 hereof and, if money shall have been deposited with the Trustee pursuant to
subclause (ii) of paragraph (a) of this Section, the obligations of the Trustee
under Section 7.2 hereof and the last paragraph of Section 3.4 hereof shall
survive such satisfaction and discharge.
SECTION 8.2. Application of Trust Funds. Subject to the provisions of the
last paragraph of Section 3.4 hereof, all money deposited with the Trustee
pursuant to Section 8.1 hereof shall be held in trust and applied by it, in
accordance with the provisions of the Securities and this Indenture, to the
payment, either directly or through any Paying Agent (excluding the Company
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal, premium, if any, and interest for whose
payment such money has been deposited with or received by the Trustee, but such
money need not be segregated from other funds except to the extent required by
law.
SECTION 8.3. Company's Option to Effect Defeasance or Covenant Defeasance.
The Company may at its option by or pursuant to Board Resolution, at any time,
elect to have Sections 8.4 or 8.5 hereof be applied to Outstanding Securities
upon compliance with the conditions set forth below in this Article.
SECTION 8.4. Defeasance and Discharge. Upon the Company's exercise of the
option specified in Section 8.3 above applicable to this Section, the Company
shall be deemed to have been discharged from its obligations with respect to the
Securities on and after the date the conditions set forth in Section 8.6 hereof
are satisfied (hereinafter "defeasance"), subject to reinstatement pursuant to
Section 8.10. For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by such
Securities which shall thereafter be deemed to be "Outstanding" only for the
purposes of Section 8.7 hereof and the other Sections of this Indenture referred
to in clause (b) of this Section, and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, at the expense of the Company, shall on a
Company Order execute proper instruments acknowledging the same), except the
following, which shall survive until otherwise terminated or discharged
hereunder: (a) the rights of Holders of such Securities to receive, solely from
the trust funds described in Section 8.6(a) hereof and as more fully set forth
in such Section, payments in respect of the principal of, premium, if any, and
interest on such Securities when such payments are due; (b) the Company's
obligations with respect to such Securities under Sections 2.2, 2.3, 2.4, 2.6,
2.10, 2.12, 3.2, 3.3 and 6.10 hereof; (c) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and (d) this Article VIII. Subject to
compliance with this Article VIII, the Company may exercise its option under
this Section with respect to the Securities notwithstanding the prior exercise
of its option under Section 8.5 hereof with respect to such Securities.
Following a defeasance, payment of such Securities may not be accelerated
because of an Event of Default.
SECTION 8.5. Covenant Defeasance. Upon the Company's exercise of the
option specified in Section 8.3 hereof applicable to this Section, the Company
shall be released from its obligations under Article III (other than under
Sections 3.2, 3.3, 3.5, 3.7 and 3.19) and Article IV hereof with respect to the
Securities on and after the date the conditions set forth in Section 8.6
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hereof are satisfied (hereinafter, "covenant defeasance"), and such Securities
shall thereafter be deemed to be not "Outstanding" for the purposes of any
direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with Article III (other than under
Sections 3.2, 3.3, 3.5, 3.7 and 3.19) and Article IV hereof, but shall continue
to be deemed "Outstanding" for all other purposes hereunder. For this purpose,
such covenant defeasance means that the Company may omit to comply with and
shall have no liability in respect of any term, condition or limitation set
forth in under Article III (other than under Sections 3.2, 3.3, 3.5, 3.7 and
3.19) and Article IV, but, except as specified above, the remainder of this
Indenture and such Securities shall be unaffected thereby.
SECTION 8.6. Conditions to Defeasance or Covenant Defeasance. The
following shall be the conditions to the application of Sections 8.4 or 8.5
hereof to any Securities:
(a) The Company shall have deposited or caused to be deposited
irrevocably with the Trustee (or another trustee satisfying the requirements of
Section 7.12 hereof who shall agree to comply with, and shall be entitled to the
benefits of, the provisions of Sections 8.3 through 8.9 inclusive and the last
paragraph of Section 8.3 hereof applicable to the Trustee, for purposes of such
Sections also a "Trustee") as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the Holders of such
Securities, with instructions to the Trustee as to the application thereof, cash
in United States dollars, U.S. Government Obligations which through the payment
of interest, if any, and principal in respect thereof in accordance with their
terms will provide, not later than one day before the due date of any payment
referred to in this Section 8.6(a), money in an amount or a combination thereof
in an amount sufficient, without reinvestment, in the opinion of a nationally
recognized firm of independent public accountants, to pay and discharge, and
which shall be applied by the Trustee to pay and discharge the principal of,
premium, if any, and interest on such Securities on the maturity of such
principal or installment of principal or interest. Before making such a deposit,
the Company may make arrangements satisfactory to the Trustee for the redemption
or purchase of Securities at a future date or dates in accordance with Article V
which shall be given effect in applying the foregoing.
(b) In the case of an election under Section 8.4 hereof, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Company has received from, or there has been published by, the Internal Revenue
Service a ruling to the effect that, and based thereon such opinion shall
confirm that, the Holders of such Securities will not recognize income, gain or
loss for Federal income tax purposes as a result of such defeasance and will be
subject to Federal income tax on the same amount and in the same manner and at
the same times, as would have been the case if such deposit, defeasance and
discharge had not occurred.
(c) In the case of an election under Section 8.5 hereof, the Company
shall have delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of such Securities will not recognize income, gain or loss for Federal
income tax purposes as a result of such covenant defeasance and will be subject
to Federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such covenant defeasance had not occurred.
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(d) No Default or Event of Default under this Indenture shall have
occurred and be continuing immediately after giving effect to the deposit
pursuant to Section 8.6(a) above.
(e) Such defeasance or covenant defeasance shall not cause the
Trustee to have a conflicting interest with respect to any securities of the
Company.
(f) Such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a default under, any material agreement or
instrument to which the Company is a party or by which it is bound.
(g) The Company shall 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 cred-itors' rights
generally.
(h) The Company shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that all conditions
precedent under this Indenture to either defeasance or covenant defeasance, as
the case may be, have been complied with.
SECTION 8.7. Deposited Money and U.S. Government Obligations to Be Held in
Trust. Subject to the provisions of the last paragraph of Section 3.4 hereof,
all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee pursuant to Section 8.6 hereof in respect of any
Securities shall be held in trust and applied by the Trustee, in accordance with
the provisions of such Securities and this Indenture, to the payment, either
directly or through any Paying Agent (excluding the Company acting as its own
Paying Agent) as the Trustee may determine, to the Holders of such Securities of
all sums due and to become due thereon in respect of principal, premium, if any,
and interest but such money need not be segregated from other funds except to
the extent required by law.
SECTION 8.8. Repayment to Company. To the extent permitted by the
Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 76, as amended or interpreted by the Financial Accounting Standards Board
from time to time, or any successor thereto ("Standard No. 76"), or to the
extent permitted by the Commission, the Trustee shall, from time to time, take
one or more of the following actions as specified in a Company Request: (a)
retransfer, reassign and deliver to the Company any securities deposited with
the Trustee pursuant to Section 8.6(a) hereof, provided that the Company shall,
in substitution therefor, simultaneously transfer, assign and deliver to the
Trustee other U.S. Governmental Obligations appropriate to satisfy the Company's
obligations in respect of the Securities; and (b) the Trustee and Paying Agent
shall promptly pay to the Company upon Company Request any excess money or
securities held by them at any time, including, without limitation, any assets
deposited with the Trustee pursuant to Section 8.6(a) exceeding those necessary
for the purposes of Section 8.6(a) hereof. The Trustee shall not take the
actions described in subsections (a) and (b) of this Section 8.8 hereof unless
it shall have first received a written report of a nationally recognized firm of
independent public accountants, (i) expressing their opinion that the
contemplated action is permitted by Standard No. 76 or the Commission for
transactions accounted for as extinguishment of debt under the circumstances
described in paragraph 3.c of Standard No. 76 or any successor provision, and
(ii) verifying the accuracy, after giving effect to such action or
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actions, of the computations which demonstrate that the amounts remaining to be
earned on the U.S. Government Obligations deposited with the Trustee pursuant to
Section 8.6(a) will be sufficient for purposes of Section 8.6(a) hereof.
SECTION 8.9. Indemnity for U.S. Government Obligations. The Company shall
pay, and shall indemnify the Trustee against, any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations deposited pursuant to
this Article or the principal and interest, if any, and any other amount
received on such U.S. Government Obligations.
SECTION 8.10. Reinstatement. If the Trustee or any Paying Agent is unable
to apply any money or U.S. Government Securities in accordance with this Article
VIII by reason of any legal proceeding or by reason of any order or judgment of
any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, the obligations of the Company under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article VIII until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Securities in accordance with this Article VIII; provided, however, that, if the
Company has made any payment of interest on or principal of any Securities
because of the reinstatement of its obligations, the Company shall be subrogated
to the rights of the Holders of such Securities to receive such payment from the
money or U.S. Government Securities held by the Trustee or any Paying Agent.
The Trustee's rights under this Article VIII shall survive
termination of this Indenture and the resignation or removal of the Trustee.
ARTICLE IX
SUPPLEMENTAL INDENTURES
SECTION 9.1. Supplemental Indentures Without Consent of Holders. Without
the consent of any Holders, the Company, when authorized by or pursuant to a
Board Resolution, and the Trustee at any time and from time to time, may enter
into indentures supplemental hereto, in form reasonably satisfactory to the
Trustee, for any of the following purposes:
(a) to evidence the succession of another corporation to the Company
and the assumption by any such successor of the covenants and obligations of the
Company herein and in the Securities; or
(b) to add to the covenants of the Company for the benefit of the
Holders of the Securities or to surrender any right or power herein conferred
upon the Company; provided, however, that in respect of any such additional
covenant such supplemental indenture may provide for a particular period of
grace after Default (which period may be shorter or longer than that allowed in
the case of other Defaults) or may limit the remedies available to the Trustee
upon such Default; or
(c) to add any additional Events of Default with respect to the
Securities; or
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(d) to secure the Securities; or
(e) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the
administration of the trust hereunder by the Trustee, pursuant to the
requirements of Section 7.11 hereof; or
(f) to correct or supplement any provision herein which may be
inconsistent with any other provision herein or to make any other provisions
with respect to matters or questions arising under this Indenture, provided such
action shall not adversely affect the interests of the Holders of Securities
affected thereby; or
(g) to cure an ambiguity or correct any mistake or inconsistency,
provided such action shall not adversely affect the interests of the Holders of
Securities; or
(h) to add a Subsidiary Guarantor pursuant to Section 3.16 and
Article X herein or remove a Subsidiary Guarantor, which, in accordance with the
terms of this Indenture, ceases to be liable in respect of its Subsidiary
Guarantee.
SECTION 9.2. Supplemental Indentures with Consent of Holders. The Company,
the and the Trustee may supplement and amend this Indenture or the Securities
with the written consent of the Holders of at least a majority in principal
amount of the Securities affected thereby then Outstanding (including, without
limitation, consents obtained in connection with a purchase of, or tender offer
or exchange offer for, Securities). However, without the consent of each
Securityholder affected, a supplement or amendment may not:
(a) change the maturity of the principal of or any installment of
interest on any such Security or alter the optional redemption or repurchase
provisions of any such Security or this Indenture in a manner adverse to the
Holders of such Securities;
(b) reduce the principal amount of (or the premium) of any such
Security;
(c) reduce the rate of or extend the time for payment of interest on
any Security;
(d) change the place or currency of payment of principal of (or
premium) or interest on any such Security;
(e) modify any provisions of this Indenture relating to the waiver
of past defaults (other than to add sections to this Indenture or the Securities
which do not adversely affect the Holders of Securities) or the right of the
Holders of Securities Outstanding thereunder to institute suit for the
enforcement of any payment on or with respect to any Securities or the
modification and amendment of this Indenture and any Securities (other than to
add sections to this Indenture or the Securities which may not be amended,
supplemented or waived without the consent of each Holder affected);
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(f) reduce the percentage of the principal amount of Outstanding
Securities necessary for amendment to or waiver of compliance with any provision
of the Indenture or the Securities, or for waiver of any Default in respect
thereof;
(g) waive a default in the payment of principal of, interest on, or
redemption payment with respect to, such Security (except a rescission of
acceleration of the relevant Securities by the Holders thereof as provided in
this Indenture and a waiver of the payment default that resulted from such
acceleration);
(h) modify the ranking or priority of the Securities; or
(i) modify the provisions relating to any Offer to Purchase required
under the covenants set forth in Section 3.12 or Section 3.17 hereof in a manner
materially adverse to the Holders of Securities affected thereby.
It is not necessary under this Section 9.2 for the Holders to consent to
the particular form of any proposed supplemental indenture, but it is sufficient
if they consent to the substance thereof.
Upon the request of the Company, accompanied by an Officer's Certificate
and a Board Resolution of the Company authorizing the execution of any such
supplemental indenture, and upon the filing with the Trustee of evidence of the
consent of Holders as aforesaid, the Trustee shall join with the Company in the
execution of such supplemental indenture unless such supplemental indenture
affects the Trustee's own rights, duties or immunities under this Indenture or
otherwise, in which case the Trustee may, but shall not be obligated to, enter
into such supplemental indenture.
SECTION 9.3. Compliance with Trust Indenture Act. Every amendment to this
Indenture or the Securities shall be set forth in a supplemental indenture that
complies with the Trust Indenture Act as then in effect.
SECTION 9.4. Execution of Supplemental Indentures. In executing, or
accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modification thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel stating that the execution of
such supplemental indenture is authorized or permitted by this Indenture. The
Trustee may, but shall not be obligated to, enter into any such supplemental
indenture which affects the Trustee's own rights, duties or immunities under
this Indenture or otherwise.
SECTION 9.5. Effect of Supplemental Indentures. Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in
accordance therewith and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or
thereafter authenticated and delivered hereunder shall be bound thereby.
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ARTICLE X
MISCELLANEOUS
SECTION 10.1. Trust Indenture Act Controls. If any provision of this
Indenture limits, qualifies or conflicts with another provision which is
required to be included in this Indenture by the TIA, the provision required by
the TIA shall control.
SECTION 10.2. Notices. Any notice or communication shall be in writing, in
the English language and delivered in person or mailed by first-class mail or
transmitted by facsimile (with written confirmation of receipt) addressed as
follows:
if to the Company:
Xxxx Corporation
0000 Xxxx Xxxxxx
Xxxxxx, Xxxx 00000
Attention: Treasurer
Facsimile: 000-000-0000
if to the Trustee:
Citibank, N.A.
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Citibank Agency & Trust
Facsimile: (000) 000-0000
A party by notice to the other parties may designate additional or
different addresses for subsequent notices or communications.
Where this Indenture provides for notice to Securityholders of any event,
such notice shall be sufficiently given (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to each
Securityholder affected by such event, at its address as it appears in the
Security Register, not later than the latest date (if any), and not earlier than
the earliest date (if any), prescribed for the giving of such notice.
In any case where notice to Securityholders is given by mail, neither the
failure to mail a notice or communication to a Securityholder nor any defect in
any notice so mailed shall affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it. If by reason
of the suspension of regular mail service or by reason of any other cause it
shall be impracticable to give such notice as provided above, then such
notification as shall be made with the approval of the Trustee shall constitute
a sufficient notification for every purpose hereunder.
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SECTION 10.3. Communication by Holders with other Holders. Securityholders
may communicate pursuant to TIA Section 3l2(b) with other Securityholders with
respect to their rights under this Indenture or the Securities. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA
Section 312(c).
SECTION 10.4. Certificate and Opinion as to Conditions Precedent. Upon any
request or application by the Company to the Trustee to take or refrain from
taking any action under this Indenture, the Company shall furnish to the
Trustee:
(a) an Officer's Certificate in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and
(b) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee stating that, in the opinion of such counsel, all
such conditions precedent have been complied with except that in the case of any
such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such
particular application or request, no additional certificate or opinion need be
furnished.
SECTION 10.5. Statements Required in Certificate or Opinion. Each
certificate or opinion with respect to compliance with a covenant or condition
provided for in this Indenture shall include:
(a) a statement that the individual 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 individual, he has made
such examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and
(d) a statement as to whether or not, in the opinion of such
individual, such covenant or condition has been complied with.
In giving such Opinion of Counsel, counsel may rely as to factual matters
on an Officer's Certificate or on certificates of public officials.
SECTION 10.6. When Securities Disregarded. In determining whether the
Holders of the required principal amount of Securities have concurred in any
direction, waiver or consent, Securities owned by the Company or by any Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company shall be disregarded and deemed not to be
Outstanding, except that, for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which the Trustee knows are so owned shall be so disregarded. Also,
subject to the foregoing, only Securities Outstanding at the time shall be
considered in any such determination.
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SECTION 10.7. Rules by Trustee, Registrar and Paying Agents. The Trustee
may make reasonable rules for action by, or a meeting of, Securityholders. The
Registrar and the Paying Agents may make reasonable rules for their functions.
SECTION 10.8. Legal Holidays. In any case where any interest payment date,
Redemption Date, repurchase date or Stated Maturity of any Security shall not be
a Business Day (each, a "Legal Holiday"), then (notwithstanding any other
provision of this Indenture or of any Security) payment of principal, premium,
if any, or interest, if any, need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as if made on
such date; provided that no interest shall accrue on the amount so payable for
the period from and after such interest payment date, Redemption Date,
repurchase date or Stated Maturity, as the case may be, if the payment is made
on the next succeeding Business Day.
SECTION 10.9. GOVERNING LAW. THIS INDENTURE, THE SECURITIES AND ANY
SUBSIDIARY GUARANTEES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. THE COMPANY AGREES TO SUBMIT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, COUNTY OF NEW YORK, IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE AND THE
SECURITIES.
SECTION 10.10. No Recourse Against Others. An incorporator, director,
officer, employee, stockholder or controlling person, as such, of each of the
Company or any of its Subsidiaries shall not have any liability for any
obligations of the Company under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. By accepting a Security, each Securityholder shall waive and release
all such liability. The waiver and release shall be part of the consideration
for the issue of the Securities.
SECTION 10.11. Successors. All agreements of the Company in this Indenture
and the Securities shall bind its successors. All agreements of the Trustee in
this Indenture shall bind its successors.
SECTION 10.12. Multiple 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. One signed copy is enough to prove this
Indenture.
SECTION 10.13. Qualification of Indenture. The Company shall qualify this
Indenture under the TIA in accordance with the terms and conditions of the
Registration Rights Agreement and shall pay all reasonable costs and expenses
(including attorneys' fees and expenses for the Company and the Trustee)
incurred in connection therewith, including, but not limited to, costs and
expenses of qualification of this Indenture and the Securities and printing this
Indenture and the Securities. The Trustee shall be entitled to receive from the
Company any such Officer's Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.
SECTION 10.14. Table of Contents; Headings. The table of contents,
cross-reference sheet and headings of the Articles and Sections of this
Indenture have been inserted for
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convenience of reference only, are not intended to be considered a part hereof
and shall not modify or restrict any of the terms or provisions hereof.
SECTION 10.15. Separability. In case any provision of this Indenture or
the Securities shall be invalid, illegal or unenforceable, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.
SECTION 10.16. Benefits of Indenture. Nothing in this Indenture or in the
Securities, expressed or implied, shall give to any Person, other than the
parties hereto and their successors hereunder and the Holders, any benefit or
any legal or equitable right, remedy or claim under this Indenture.
* * * *
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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed, all
as of the day and year first above written.
XXXX CORPORATION, as issuer
By: /s/ A. Xxxxx Xxxxx
------------------------------------
Name: A. Xxxxx Xxxxx
Title: Vice President - Treasurer
CITIBANK, N.A., as
Trustee and as Registrar and Paying Agent
for the Securities
By: /s/ Xxxxxxx XxXxxxxx
-------------------------------
Name: Xxxxxxx XxXxxxxx
Title: Vice President
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EXHIBIT A
THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY
BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY
BY ITS ACCEPTANCE HEREOF AGREES, ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR
ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE "RESALE RESTRICTION TERMINATION
DATE") THAT IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND
THE LAST DATE ON WHICH THE ISSUER OR ANY AFFILIATE OF THE ISSUER WAS THE OWNER
OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY), ONLY (A) TO THE ISSUER,
(B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY
BELIEVES IS A "QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A UNDER THE
SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE
SECURITIES ACT, (E) TO AN INSTITUTIONAL "ACCREDITED INVESTOR" WITHIN THE MEANING
OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES ACT THAT IS ACQUIRING
THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL
ACCREDITED INVESTOR, IN EACH CASE IN A TRANSACTION INVOLVING A MINIMUM PRINCIPAL
AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A
VIEW TO OR FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF
THE SECURITIES ACT, OR (F) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE ISSUER'S AND THE
TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSES
(D), (E) AND (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION
AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE
REMOVED UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION
DATE.
[in the case of Global Securities, insert: THIS SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER,
A-1
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT
NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.]
A-2
XXXX CORPORATION
10-1/8 % Note due 2010
No. __ $______
ISIN: __________
CUSIP: ________
XXXX CORPORATION, a Virginia corporation (the "Company," which term
includes any successor under the Indenture hereinafter referred to), for value
received, promises to pay ____________, or its registered assigns, the principal
sum of _____________ [in the case of Global Securities insert: subject to such
changes as shall be indicated on the Schedule of Increases or Decreases in
Security attached hereto], on March 15, 2010.
Interest Payment Dates: March 15 and September 15, commencing September
15, 2002.
Regular Record Dates: March 1 and September 1.
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
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IN WITNESS WHEREOF, the Company has caused this Security to be executed
manually or by facsimile by its duly authorized officer.
Dated: XXXX CORPORATION
By:
---------------------------------
Name:
Title:
Certificate of Authentication:
This is one of the Securities described in the within-mentioned Indenture.
CITIBANK, N.A. , as Trustee
By:
---------------------------------
Name:
Title:
Dated:
-------------------------------
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[REVERSE SIDE OF SECURITY]
XXXX CORPORATION
10-1/8 % Note due 2010
Capitalized terms used herein but not defined shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.
1. Principal and Interest.
Xxxx Corporation, a Virginia corporation (such corporation and its
successors and assigns under the Indenture hereinafter referred to, being herein
called the "Company"), promises to pay interest on the principal amount of this
Security at a rate of 10-1/8 % per annum from the Issue Date (as defined in the
Indenture referred to below) until repayment at maturity or redemption. The
Company will pay interest semiannually on March 15 and September 15 of each year
(each, an "Interest Payment Date"), commencing September 15, 2002. Interest on
the Securities will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the Issue Date. Interest will be
computed on the basis of a 360-day year of twelve 30-day months.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand, to the extent permitted by law, at the rate borne
by this Security; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent permitted by law.
2. Method of Payment.
The Company will pay interest on the principal amount of the Securities as
provided above on each Interest Payment Date, commencing September 15, 2002, to
the persons which are Holders (as reflected in the Register at the close of
business on the March 1 or September 1 immediately preceding the Interest
Payment Date), in each case, even if the Security is canceled on registration of
transfer or registration of exchange after such record date; provided that, with
respect to the payment of principal, the Company will make payment to the Holder
that surrenders this Security to a Paying Agent on or after March 15, 2010.
The Company will pay principal, premium, if any, and interest in U.S.
Dollars. If a payment date is a date other than a Business Day at a place of
payment, payment may be made at that place on the next succeeding day that is a
Business Day and no interest shall accrue for the intervening period.
Principal of, and premium, if any, and interest on, Definitive Securities
will be payable, and Definitive Securities may be presented for registration of
transfer or exchange, at the office or agency of the Company maintained for such
purpose. Principal of, and premium, if any, and interest on, Global Securities
will be payable by the Company through the Trustee to the Depositary in
immediately available funds. Holders of Definitive Securities will be entitled
to
A-5
receive interest payments by wire transfer in immediately available funds if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 days prior to the applicable Interest Payment Date.
Such wire instructions, upon receipt by the Trustee, shall remain in effect
until revoked by such Holder. If wire instructions have not been received by the
Trustee with respect to any Holder of a Definitive Security, payment of interest
may be made by check in immediately available funds mailed to such Holder at the
address set forth upon the Register maintained by the Registrar for these
Securities.
3. Paying Agents and Registrar.
Initially, Citibank, N.A., the Trustee under the Indenture, will act as
Trustee, Paying Agent in New York City and Registrar. The Company may appoint
and change the Paying Agent or transfer agent without notice to any Holder. The
Company may also appoint one or more additional Paying Agents without notice to
any Holder. The Company or any wholly owned Subsidiary may act as a Paying
Agent, Registrar, co-registrar or transfer agent, subject to certain
limitations.
4. Indenture.
The Company issued the Initial Securities under an Indenture dated as of
March 11, 2002 (the "Indenture"), between the Company and Citibank, N.A., as
trustee (the "Trustee"), and registrar and a paying agent for the Securities.
The terms of the Initial Securities include those stated in the Indenture and
those made part of the Indenture by reference to the Trust Indenture Act of
1939, as amended ("TIA"). The Initial Securities are subject to all such terms,
and Holders are referred to the Indenture and the TIA for a statement of all
such terms. To the extent permitted by applicable law, in the event of any
inconsistency between the terms of this Security and the terms of the Indenture,
the terms of the Indenture shall control.
5. Exchange Offer.
In accordance with the terms of the Registration Rights Agreement dated
March 6, 2002, between Xxxxxxx Xxxxx Xxxxxx Inc. and the several other initial
purchasers named therein, as initial purchasers, and the Company (the
"Registration Rights Agreement"), if the Exchange Offer contemplated thereby is
not completed on or before the date that is nine months after the Closing Date,
the annual interest rate borne by this Security will be increased by 1.0% per
annum until the exchange offer is completed. In addition, in the event that a
shelf registration statement contemplated thereby is not declared effective
within the time periods specified therein, the annual interest rate borne by
this Security will be increased by 1.0% per annum until such shelf registration
statement is declared effective. Whenever there is mentioned herein, in any
context, the payment of interest on this Security, such mention shall be deemed
to include mention of the payment of any additional interest to the extent that,
in such context, any such additional interest is, was or would be payable in
respect thereof pursuant to the provisions of this Security, the Indenture and
the Registration Rights Agreement and express mention of the payment of
additional interest (if applicable) in any provisions hereof shall not be
construed as excluding additional interest in those provisions hereof where such
express mention is not made.
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Notwithstanding any other provision of the Indenture or this Security: (i)
accrued and unpaid interest on the Initial Securities at the time such Initial
Securities are exchanged in the Exchange Offer shall be due and payable on the
next Interest Payment Date for the Exchange Securities following completion of
the Exchange Offer and shall be paid to the Holder on the relevant record date
of the Exchange Securities issued in respect of the Initial Securities
exchanged, and (ii) interest on the Exchange Securities issued in the Exchange
Offer shall accrue from the most recent date to which interest has been paid on
the Initial Securities or, if no interest has been paid, from the Issue Date.
6. Redemption.
(a) Optional Redemption. The Company may, at its option, redeem the Securities
in whole, or from time to time in part, at any time after March 15, 2006 upon
not less than 30 or not more than 60 days' prior notice mailed to each Holder to
be so redeemed at such Holders' registered address. The Notes shall be redeemed
at the following Redemption Prices (expressed as percentages of the principal
amount) plus accrued and unpaid interest, if any, to but excluding the date of
redemption, if redeemed during the 12-month period commencing on or after March
15 of the years set forth below:
REDEMPTION
YEAR PRICE
---- -----
2006.......................................... 105.063%
2007.......................................... 102.531%
2008 and thereafter........................... 100.000%
Notwithstanding the foregoing, if a redemption date is on or after an interest
record date and on or before the related interest payment date, the accrued and
unpaid interest, if any, will be paid to the Person in whose name the Note being
redeemed is registered at the close of business on such record date, and no
additional interest will be payable to holders whose Notes will be subject to
redemption by the Company.
(b) In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee in compliance with the
requirements of the securities exchange, if any, on which the Securities are
listed or, if the Securities are not so listed, then on a pro rata basis, by lot
or by such other method as the Trustee shall deem to be fair and appropriate
(and in such manner as complies with applicable legal requirements) provided
that (i) Securities and portions thereof that the Trustee selects shall be in
amounts of $1,000 or an integral multiple of $1,000 and (ii) no such partial
redemption shall reduce the portion of the principal amount of a Security not
redeemed to less than $1,000. If any Security is to be redeemed in part only,
the notice of redemption relating to such Security shall state the portion of
the principal amount thereof to be redeemed. A new Security in principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. On and after the Redemption
Date, interest will cease to accrue on Securities or portions thereof called for
redemption as long as the Company has deposited with the Trustee or with a
Paying Agent (or, if applicable, segregated and held in trust) money sufficient
to pay the
A-7
Redemption Price of, and accrued and unpaid interest on, all the Securities
which are to be redeemed on such date.
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 Securities.
8. Repurchase at Option of Holder.
If a Change of Control occurs, each Holder shall have the right to require
the Company to repurchase all or any part (equal to $1,000 or an integral
multiple of $1,000) of that Holder's Securities pursuant to the Change of
Control offer on the terms set forth in this Indenture (a "Change of Control
Offer"). In the Change of Control Offer, the Company shall offer a Change of
Control Payment in cash equal to 101% of the aggregate principal amount of
Securities repurchased plus accrued and unpaid interest on the Securities
repurchased to the date of purchase. Within 30 days following any Change of
Control, the Company shall mail a notice to each Holder as set forth in the
Indenture.
In the event of certain Asset Dispositions and subject to certain
limitations set forth in the Indenture, the Company shall make an Offer to
Purchase the outstanding applicable issue of Securities at a purchase price in
cash equal to 100% of their principal amount plus any accrued and unpaid
interest thereon to the purchase date.
9. Denominations; Transfer; Exchange.
The Securities are in registered form without coupons in denominations of
$1,000 of principal amount and integral multiples of $1,000 in excess thereof. A
Holder may register the transfer or exchange of Securities in accordance with
the Indenture. The Registrar 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 Registrar need not register the transfer or exchange of any
Securities selected for redemption. Also, it need not register the transfer or
exchange of any Securities for a period beginning at the opening of 15 calendar
days before the day of any selection of Securities for redemption under
paragraph 6 hereof and ending at the close of business on the day of selection.
10. Persons Deemed Owners.
The registered Holder of a Security shall be treated as its owner for all
purposes.
11. Unclaimed Money.
If money for the payment of principal, premium, if any, or interest
remains unclaimed for two years, the Trustee and the Paying Agents will pay the
money back to the Company at its request. After that, Holders entitled to the
money must look to the Company for payment, unless an abandoned property law
designates another Person, and all liability of the Trustee and such Paying
Agents with respect to such money shall cease.
A-8
12. Discharge Prior to Redemption or Maturity.
Subject to certain conditions contained in the Indenture, at any time some
or all of the obligations under the Securities and the Indenture may be
terminated if the Company deposits with the Trustee money and/or U.S. Government
Obligations sufficient to pay the principal of, and premium, if any, and
interest on, the Securities to redemption or stated maturity, as the case may
be.
13. Amendment; Supplement; Waiver.
Subject to certain exceptions as set forth in the Indenture, with the
written consent of the Holders of a majority of the aggregate principal amount
of the Outstanding Securities adversely affected by such supplemental indenture,
the Company, when authorized by or pursuant to a Board Resolution, and the
Trustee may enter into an indenture or supplemental indentures to add any
provisions to or to change or eliminate any provisions of this Indenture or of
any other supplemental indenture or to modify the rights of the Holders of such
Securities. Without the consent of any Holders, the Company, when authorized by
or pursuant to a Board Resolution and the Trustee at any time and from time to
time, may enter into supplemental indentures, in form reasonably satisfactory to
the Trustee, to, among other things, cure any ambiguity, mistake or
inconsistency provided that such action does adversely affect the rights of any
Holder. The Holders of a majority in aggregate principal amount of Outstanding
Securities by written notice to the Trustee may waive on behalf of the Holders
of all Securities a past Default or Event of Default and its consequences except
(i) a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest, if any, on any Security or (ii) an Event of
Default resulting from the breach of a covenant or provision hereof which
pursuant to the Indenture cannot be amended or modified without the consent of
the Holder of each Outstanding Security adversely affected.
14. Restrictive Covenants.
The Indenture imposes certain limitations on the ability of the Company
and its Restricted Subsidiaries, among other things, to create Liens, incur
Indebtedness and issue Preferred Stock, make Restricted Payments and make Asset
Dispositions. In addition, the Indenture imposes certain limitations on the
ability of the Company to engage in mergers and consolidations or transfers of
all or substantially all of its assets. The Indenture requires the Company to
deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officer's Certificate stating that in the course of the performance
by the signer of his duties as an Officer of the Company he would normally have
knowledge of any Default or Event of Default and whether or not the signer knows
of any Default or Event of Default that occurred during such period. If he does,
the certificate shall describe the Default or Event of Default, its status and
what action the Company is taking or proposes to take with respect thereto.
After such time as: (1) the Securities have been assigned an Investment
Grade rating by both Rating Agencies; (2) if the Investment Grade rating is
BBB-, in the case of S&P, or Baa3, in the case of Xxxxx'x, it shall not be
accompanied by either (i) in the case of S&P, a negative outlook, creditwatch
negative or the equivalent thereof or (ii) in the case of Xxxxx'x, a negative
A-9
outlook, a review for possible downgrade or the equivalent thereof; and (3) no
Default under the Indenture has occurred and is continuing, and notwithstanding
that the Securities may later cease to have an Investment Grade rating by either
or both Rating Agencies or that the Investment Grade rating may later be
accompanied by either or both items (2)(i) or (2)(ii) above, the Company and its
Restricted Subsidiaries will not be subject to certain covenants.
15. Defaults and Remedies.
The Indenture specifies certain Events of Default and remedies. If an
Event of Default occurs and is continuing, the principal amount hereof may be
declared due and payable in the manner and with the effect provided in the
Indenture. Upon such a declaration, such principal amount, premium, if any, and
accrued and unpaid interest will become immediately due and payable. In the
event of certain Events of Default relating to Bankruptcy Law, all unpaid
principal of, premium, if any, and accrued and unpaid interest on the Securities
then outstanding will ipso facto become due and payable.
16. Trustee Dealings with the Company.
Subject to certain limitations set forth in the Indenture, the Trustee
under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from and perform services for the Company or its Affiliates and
may otherwise deal with the Company or its Affiliates as if it were not the
Trustee.
17. No Recourse Against Others.
An incorporator, director, officer, employee, stockholder or controlling
person, as such, of each of the Company or its Subsidiaries shall not have any
liability for any obligations of the Company under the Securities, this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be part
of the consideration for the issue of the Securities.
18. Authentication.
This Security shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this
Security.
19. 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 right of survivorship and not as
tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors
Act).
20. Additional Rights of Holders of Transfer Restricted Securities.
In addition to the rights provided to Holders under the Indenture, Holders
of Transfer Restricted Securities shall have all the rights set forth in the
Registration Rights Agreement.
A-10
21. GOVERNING LAW.
THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK. THE COMPANY AGREES TO SUBMIT TO THE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK, COUNTY OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY.
22. Successor Corporation.
In the event a successor corporation assumes all the obligations of the
Company under the Securities and the Indenture, pursuant to the terms thereof,
the Company will be released from all such obligations.
The Company will furnish to any Holder upon written request and without
charge to the Holder a copy of the Indenture which has in it the text of this
Security. Requests may be made to:
Xxxx Corporation
0000 Xxxx Xxxxxx
Xxxxxx, Xxxx 00000
Attention: Treasurer
A-11
ASSIGNMENT FORM
To assign this Security, fill in the form below and have your signature
guaranteed: (I) or (we) assign and transfer this Security to:
--------------------------------------------------------------------------------
(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 Security on the books of the Company.
The agent may substitute another to act for him.
Dated:
---------------------
Your Name:
-------------------------------------
Print your name exactly as it appears
on the face of this Security)
Your Signature:
-------------------------------------
(Sign exactly as your name appears on
the face of this Security)
Signature Guarantee*:
---------------------------------
* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).
A-12
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Company pursuant
to Section 3.12 or Section 3.17 of the Indenture, please check the appropriate
box:
[ ] Section 3.12 [ ] Section 3.17
If you want to elect to have only part of the Security purchased by the
Company pursuant to Section 3.12 or Section 3.17 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 Security)
Tax Identification No.:__________________________
Signature Guarantee*: __________________
* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).
A-13
Form of Certificate to be Delivered in Connection with Transfers to
Institutional Accredited Investors Pursuant to Section 2.7 of the Indenture.
IAI Certificate
CUSIP __________
ISIN __________
Xxxx Corporation
x/x Xxxxxxxx, N.A., as Trustee
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Citibank Agency & Trust
Re: Xxxx Corporation
10-1/8 % Notes due 2010
Dear Sirs:
This certificate is delivered to request a transfer of $___________
principal amount of the 10-1/8 % Notes due 2010 (the notes) of Xxxx Corporation
(the Company).
Upon transfer, the notes would be registered in the name of the new
beneficial owner as follows:
Name:
Address:
Taxpayer ID Number:
The undersigned Transferee represents and warrants to you that:
1. We are an institutional "accredited investor" (as defined in Rule
50l(a)(l), (2), (3) or (7) under the Securities Act of 1933, as amended (the
Securities Act)), purchasing for our own account or for the account of such an
institutional "accredited investor" in each case in a minimum principal amount
of notes of $250,000 and we are acquiring the notes for investment purposes and
not with a view to, or for offer or sale in connection with, any distribution in
violation of the Securities Act. We have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risk of our investment in the notes and we invest in or purchase securities
similar to the notes in the normal course of our business. We and any accounts
for which we are acting are each able to bear the economic risk of our or their
investment.
2. We understand that the notes have not been registered under the
Securities Act and, unless so registered, may not be offered, sold or otherwise
transferred except as permitted in the following sentence. We agree on our own
behalf and on behalf of any investor account for which we are purchasing notes
to offer, sell or otherwise transfer such notes prior to the date
A-14
which is two years after the later of the date of original issue and the last
date on which the Company or any affiliate of the Company was the owner of such
notes (or any predecessor thereto) (the Resale Restriction Termination Date)
only (a) to the Company, (b) pursuant to a registration statement which has been
declared effective under the Securities Act, (c) in a transaction complying with
the requirements of Rule 144A under the Securities Act (Rule 144A), to a person
we reasonably believe is a qualified institutional buyer under Rule 144A (QIB)
that purchases for its own account or for the account of a QIB and to whom
notice is given that the transfer is being made in reliance on Rule 144A, (d)
pursuant to offers and sales to that occur outside the United States within the
meaning of Regulation S under the Securities Act, (e) to an institutional
"accredited investor" (within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act) that is purchasing for its own account or for the
account of such institutional "accredited investor," in each case in a minimum
principal amount of notes of $250,000, for investment purposes and not with a
view to, or for offer or sale in connection with, any distribution in violation
of the Securities Act, or (f) pursuant to any other available exemption from the
registration requirements of the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of our property
or the property of such investor account or accounts be at all times within our
or their control and in compliance with any applicable state securities laws.
The foregoing restrictions on resale will not apply subsequent to the Resale
Restriction Termination Date. If any resale or other transfer of the notes is
proposed to be made pursuant to clause (e) above prior to the Resale Restriction
Termination Date, the transferor shall deliver a letter from the transferee
substantially in the form of this letter to the Company and the Trustee, which
shall provide, among other things, that the transferee is an institutional
"accredited investor" (within the meaning of Rule 501(a)(1), (2), (3) or (7)
under the Securities Act) that it is acquiring such notes for investment
purposes and not for distribution in violation of the Securities Act. Each
purchaser acknowledges that the Company and the Trustee reserve the right prior
to any offer, sale or other transfer of the notes prior to the Resale
Restriction Termination Date pursuant to clauses (d), (e) and (f) above to
require the delivery of an opinion of counsel, certifications and/or other
information satisfactory to the Company and the Trustee.
3. You are entitled to rely upon this letter, and you are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the
matters covered hereby.
Transferee: Transferor:
By:__________________________ By:________________________
Date: Date:
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Form of Certificate to be Delivered in Connection with Transfers Pursuant to
Regulation S Pursuant to Section 2.8 of the Indenture.
Regulation S Certificate
CUSIP _________
ISIN __________
Xxxx Corporation
x/x Xxxxxxxx, N.A., as Trustee
000 Xxxx Xxxxxx, 00xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attention: Citibank Agency & Trust
Re: Xxxx Corporation
10-1/8 % Notes due 2010
Ladies and Gentlemen:
This certificate is delivered to request a transfer of $___________
principal amount of the 10-1/8 % Notes due 2010 (the notes) of Xxxx Corporation
(the Company).
Upon transfer, the notes would be registered in the name of the new
beneficial owner as follows:
Name:
Address:
Taxpayer ID Number:
In connection with our proposed sale of $__________ aggregate principal
amount of the Securities, we confirm that such sale has been effected pursuant
to and in accordance with Regulation S under the Securities Act of 1933, as
amended (the Securities Act), and, accordingly, we represent that:
(a) the offer of the Securities was not made to a person in the United
States;
(b) either (i) at the time the buy order was originated, the transferee
was outside the United States or we and any person acting on our behalf
reasonably believed that the transferee was outside the United States or (ii)
the transaction was executed in, on or through the facilities of a designated
offshore securities market and neither we nor any person acting on our behalf
knows that the transaction has been pre-arranged with a buyer in the United
States;
(c) neither we, any of our affiliates, nor any person acting on our or
their behalf has made any directed selling efforts in the United States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S,
as applicable; and
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(d) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.
In addition, if the sale is made during a restricted period and the
provisions of Rule 903(c)(3) or Rule 904(c)(l) of Regulation S are applicable
thereto, we confirm that such sale has been made in accordance with the
applicable provisions of Rule 903(c)(3) or Rule 904(c)(l), as the case may be.
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. Terms used in this certificate have the
meanings set forth in Regulation S.
Transferor:
By: __________________________
Date:
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[in the case of Global Securities, insert:
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY
The initial principal amount of this Global Security is $________. The
following increases or decreases in this Global Security have been made:
Amount of Amount of
decrease in increases in Principal Amount of
Principal Principal Amount this Global Security Signature of
Amount of of following such authorized officer of
Date of This Global this Global decrease (or Trustee or
Exchange Security Security increase) Depositary
-------- -------- -------- --------- ----------
A-18
EXHIBIT B
[in the case of Global Securities, insert: THIS SECURITY IS A GLOBAL SECURITY
WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION ("DTC"), NEW YORK, NEW YORK, TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT
NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR'S
NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERRED TO ON THE REVERSE HEREOF.]
XXXX CORPORATION
10-1/8 % Note due 2010
No. __ $______
ISIN: ___________
CUSIP: ________
XXXX CORPORATION, a Virginia corporation (the "Company," which term
includes any successor under the Indenture hereinafter referred to), for value
received, promises to pay ___________________, or its registered assigns, the
principal sum of ___________________ [in the case of Global Securities insert:
subject to such changes as shall be indicated on the Schedule of Increases or
Decreases in Security attached hereto], on March 15, 2010.
Interest Payment Dates: March 15 and September 15, commencing September
15, 2002.
B-1
Regular Record Dates: March 1 and September 1.
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
B-2
IN WITNESS WHEREOF, the Company has caused this Security to be executed
manually or by facsimile by its duly authorized officer.
Dated: XXXX CORPORATION
By:
-----------------------------------
Name:
Title:
Certificate of Authentication:
This is one of the Securities described in the within-mentioned Indenture.
CITIBANK, N.A. , as Trustee
By:
-----------------------------------
Name:
Title:
Dated:
---------------------------------
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[REVERSE SIDE OF SECURITY]
XXXX CORPORATION
10-1/8% Note due 2010
Capitalized terms used herein but not defined shall have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.
1. Principal and Interest.
Xxxx Corporation, a Virginia corporation (such corporation and its
successors and assigns under the Indenture hereinafter referred to, being herein
called the "Company"), promises to pay interest on the principal amount of this
Security at a rate of 10-1/8 % per annum from the most recent date to which
interest has been paid on the Initial Securities in respect of which this
Security has been issued in exchange or, if no interest has been paid, from the
Issue Date (as defined in the Indenture referred to below) until repayment at
maturity or redemption. The Company will pay interest semiannually on March 15
and September 15 of each year (each, an "Interest Payment Date"), commencing
September 15, 2002. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal and premium, if any,
from time to time on demand, to the extent permitted by law, at the rate borne
by this Security; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent permitted by law.
2. Method of Payment.
The Company will pay interest on the principal amount of the Securities as
provided above on each Interest Payment Date, commencing September 15, 2002, to
the persons which are Holders (as reflected in the Register at the close of
business on the March 1 or September 1 immediately preceding the Interest
Payment Date), in each case, even if the Security is canceled on registration of
transfer or registration of exchange after such record date; provided that, with
respect to the payment of principal, the Company will make payment to the Holder
that surrenders this Security to a Paying Agent on or after March 15, 2010.
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The Company will pay principal, premium, if any, and interest in U.S.
Dollars. If a payment date is a date other than a Business Day at a place of
payment, payment may be made at that place on the next succeeding day that is a
Business Day and no interest shall accrue for the intervening period.
Principal of, and premium, if any, and interest on, Definitive Securities
will be payable, and Definitive Securities may be presented for registration of
transfer or exchange, at the office or agency of the Company maintained for such
purpose. Principal of, and premium, if any, and interest on, Global Securities
will be payable by the Company through the Trustee to the Depositary in
immediately available funds. Holders of Definitive Securities will be entitled
to receive interest payments by wire transfer in immediately available funds if
appropriate wire transfer instructions have been received in writing by the
Trustee not less than 15 days prior to the applicable Interest Payment Date.
Such wire instructions, upon receipt by the Trustee, shall remain in effect
until revoked by such Holder. If wire instructions have not been received by the
Trustee with respect to any Holder of a Definitive Security, payment of interest
may be made by check in immediately available funds mailed to such Holder at the
address set forth upon the Register maintained by the Registrar for these
Securities.
3. Paying Agents and Registrar.
Initially, Citibank, N.A., the Trustee under the Indenture, will act as
Trustee, Paying Agent in New York City and Registrar. The Company may appoint
and change the Paying Agent or transfer agent without notice to any Holder. The
Company may also appoint one or more additional Paying Agents without notice to
any Holder. The Company or any wholly owned Subsidiary may act as a Paying
Agent, Registrar, co-registrar or transfer agent, subject to certain
limitations.
4. Indenture.
The Company issued the Securities under an Indenture dated as of March 11,
2002 (the "Indenture"), between the Company, Citibank, N.A., as trustee (the
"Trustee"), and registrar and a paying agent for the Securities. The terms of
the Securities include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended ("TIA").
The Securities are subject to all such terms, and Holders are referred to the
Indenture and the TIA for a statement of all such terms. To the extent permitted
by applicable law, in the event of any inconsistency between the terms of this
Security and the terms of the Indenture, the terms of the Indenture shall
control.
B-5
5. Redemption.
(a) Optional Redemption. The Company may, at its option, redeem the
Securities in whole, or from time to time in part, at any time after March 15,
2006 upon not less than 30 or not more than 60 days' prior notice mailed to each
Holder to be so redeemed at such Holders' registered address. The Notes shall be
redeemed at the following Redemption Prices (expressed as percentages of the
principal amount) plus accrued and unpaid interest, if any, to but excluding the
date of redemption, if redeemed during the 12-month period commencing on or
after March 15 of the years set forth below:
YEAR REDEMPTION
PRICE
2006.......................................... 105.063%
2007.......................................... 102.531%
2008 and thereafter........................... 100.000%
Notwithstanding the foregoing, if a redemption date is on or after an interest
record date and on or before the related interest payment date, the accrued and
unpaid interest, if any, will be paid to the Person in whose name the Note being
redeemed is registered at the close of business on such record date, and no
additional interest will be payable to holders whose Notes will be subject to
redemption by the Company.
(b) In the case of any partial redemption, selection of the
Securities for redemption will be made by the Trustee in compliance with the
requirements of the securities exchange, if any, on which the Securities are
listed or, if the Securities are not so listed, then on a pro rata basis, by lot
or by such other method as the Trustee shall deem to be fair and appropriate
(and in such manner as complies with applicable legal requirements) provided
that (i) Securities and portions thereof that the Trustee selects shall be in
amounts of $1,000 or an integral multiple of $1,000 and (ii) no such partial
redemption shall reduce the portion of the principal amount of a Security not
redeemed to less than $1,000. If any Security is to be redeemed in part only,
the notice of redemption relating to such Security shall state the portion of
the principal amount thereof to be redeemed. A new Security in principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. On and after the Redemption
Date, interest will cease to accrue on Securities or portions thereof called for
redemption as long as the Company has deposited with the Trustee or with a
Paying Agent (or, if applicable, segregated and held in trust) money sufficient
to pay the Redemption Price of, and accrued and unpaid interest on, all the
Securities which are to be redeemed on such date.
B-6
6. Mandatory Redemption.
Except as set forth in paragraph 7 below, the Company shall not be
required to make mandatory redemption or sinking fund payments with respect to
the Securities.
7. Repurchase at Option of Holder.
If a Change of Control occurs, each Holder shall have the right to require
the Company to repurchase all or any part (equal to $1,000 or an integral
multiple of $1,000) of that Holder's Securities pursuant to the Change of
Control offer on the terms set forth in this Indenture (a "Change of Control
Offer"). In the Change of Control Offer, the Company shall offer a Change of
Control Payment in cash equal to 101% of the aggregate principal amount of
Securities repurchased plus accrued and unpaid interest on the Securities
repurchased to the date of purchase. Within 30 days following any Change of
Control, the Company shall mail a notice to each Holder as set forth in the
Indenture.
In the event of certain Asset Dispositions and subject to certain
limitations set forth in the Indenture, the Company shall make an Offer to
Purchase the outstanding applicable issue of Securities at a purchase price in
cash equal to 100% of their principal amount plus any accrued and unpaid
interest thereon to the purchase date.
8. Denominations; Transfer; Exchange.
The Securities are in registered form without coupons in denominations of
$1,000 of principal amount and integral multiples of $1,000 in excess thereof. A
Holder may register the transfer or exchange of Securities in accordance with
the Indenture. The Registrar 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 Registrar need not register the transfer or exchange of any
Securities selected for redemption. Also, it need not register the transfer or
exchange of any Securities for a period beginning at the opening of 15 calendar
days before the day of any selection of Securities for redemption under
paragraph 6 hereof and ending at the close of business on the day of selection.
9. Persons Deemed Owners.
The registered Holder of a Security shall be treated as its owner for all
purposes.
10. Unclaimed Money.
If money for the payment of principal, premium, if any, or interest
remains unclaimed for two years, the Trustee and the Paying Agents will pay the
money back to the Company at its
B-7
request. After that, Holders entitled to the money must look to the Company for
payment, unless an abandoned property law designates another Person, and all
liability of the Trustee and such Paying Agents with respect to such money shall
cease.
11. Discharge Prior to Redemption or Maturity.
Subject to certain conditions contained in the Indenture, at any time some
or all of the obligations under the Securities and the Indenture may be
terminated if the Company deposits with the Trustee money and/or U.S. Government
Obligations sufficient to pay the principal of, and premium, if any, and
interest on, the Securities to redemption or stated maturity, as the case may
be.
12. Amendment; Supplement; Waiver.
Subject to certain exceptions as set forth in the Indenture, with the
written consent of the Holders of a majority of the aggregate principal amount
of the Outstanding Securities adversely affected by such supplemental indenture,
the Company, when authorized by or pursuant to a Board Resolution, and the
Trustee may enter into an indenture or supplemental indentures to add any
provisions to or to change or eliminate any provisions of this Indenture or of
any other supplemental indenture or to modify the rights of the Holders of such
Securities. Without the consent of any Holders, the Company, when authorized by
or pursuant to a Board Resolution and the Trustee at any time and from time to
time, may enter into supplemental indentures, in form reasonably satisfactory to
the Trustee, to, among other things, cure any ambiguity, mistake or
inconsistency provided that such action does adversely affect the rights of any
Holder. The Holders of a majority in aggregate principal amount of Outstanding
Securities by written notice to the Trustee may waive on behalf of the Holders
of all Securities a past Default or Event of Default and its consequences except
(i) a Default or Event of Default in the payment of the principal of, or
premium, if any, or interest, if any, on any Security or (ii) an Event of
Default resulting from the breach of a covenant or provision hereof which
pursuant to the Indenture cannot be amended or modified without the consent of
the Holder of each Outstanding Security adversely affected.
13. Restrictive Covenants.
The Indenture imposes certain limitations on the ability of the Company
and its Restricted Subsidiaries, among other things, to create Liens, incur
Indebtedness and issue Preferred Stock, make Restricted Payments and make Asset
Dispositions. In addition, the Indenture imposes certain limitations on the
ability of the Company to engage in mergers and consolidations or transfers of
all or substantially all of its assets. The Indenture requires the Company to
deliver to the Trustee, within 120 days after the end of each fiscal year of the
Company, an Officer's Certificate stating that in the course of the performance
by the signer of
B-8
his duties as an Officer of the Company he would normally have knowledge of any
Default or Event of Default and whether or not the signer knows of any Default
or Event of Default that occurred during such period. If he does, the
certificate shall describe the Default or Event of Default, its status and what
action the Company is taking or proposes to take with respect thereto.
After such time as: (1) the Securities have been assigned an Investment
Grade rating by both Rating Agencies; (2) if the Investment Grade rating is
BBB-, in the case of S&P, or Baa3, in the case of Xxxxx'x, it shall not be
accompanied by either (i) in the case of S&P, a negative outlook, creditwatch
negative or the equivalent thereof or (ii) in the case of Xxxxx'x, a negative
outlook, a review for possible downgrade or the equivalent thereof; and (3) no
Default under the Indenture has occurred and is continuing, and notwithstanding
that the Securities may later cease to have an Investment Grade rating by either
or both Rating Agencies or that the Investment Grade rating may later be
accompanied by either or both items (2)(i) or (2)(ii) above, the Company and its
Restricted Subsidiaries will not be subject to certain covenants.
14. Defaults and Remedies.
The Indenture specifies certain Events of Default and remedies. If an
Event of Default occurs and is continuing, the principal amount hereof may be
declared due and payable in the manner and with the effect provided in the
Indenture. Upon such a declaration, such principal amount, premium, if any, and
accrued and unpaid interest will become immediately due and payable. In the
event of certain Events of Default relating to Bankruptcy Law, all unpaid
principal of, premium, if any, and accrued and unpaid interest on the Securities
then outstanding will ipso facto become due and payable.
15. Trustee Dealings with the Company.
Subject to certain limitations set forth in the Indenture, the Trustee
under the Indenture, in its individual or any other capacity, may make loans to,
accept deposits from and perform services for the Company or its Affiliates and
may otherwise deal with the Company or its Affiliates as if it were not the
Trustee.
16. No Recourse Against Others.
An incorporator, director, officer, employee, stockholder or controlling
person, as such, of each of the Company or its Subsidiaries shall not have any
liability for any obligations of the Company under the Securities, this
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Security, each Securityholder
shall waive and release all such liability. The waiver and release shall be part
of the consideration for the issue of the Securities.
B-9
17. Authentication.
This Security shall not be valid until the Trustee (or authenticating
agent) executes the certificate of authentication on the other side of this
Security.
18. 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 right of survivorship and not as
tenants in common), CUST (= Custodian) and U/G/M/A (= Uniform Gifts to Minors
Act).
19. Additional Rights of Holders of Transfer Restricted Securities.
In addition to the rights provided to Holders under the Indenture, Holders
of Transfer Restricted Securities shall have all the rights set forth in the
Registration Rights Agreement.
20. GOVERNING LAW.
THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK. THE COMPANY AGREES TO SUBMIT TO THE JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK, COUNTY OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITY.
21. Successor Corporation.
In the event a successor corporation assumes all the obligations of the
Company under the Securities and the Indenture, pursuant to the terms thereof,
the Company will be released from all such obligations.
The Company will furnish to any Holder upon written request and without
charge to the Holder a copy of the Indenture which has in it the text of this
Security. Requests may be made to:
Xxxx Corporation
0000 Xxxx Xxxxxx
Xxxxxx, Xxxx 00000
Attention: Treasurer
B-10
ASSIGNMENT FORM
To assign this Security, fill in the form below and have your signature
guaranteed: (I) or (we) assign and transfer this Security to:
--------------------------------------------------------------------------------
(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 Security on the books of the Company.
The agent may substitute another to act for him.
Dated:
------------------
Your Name:
--------------------------------------
(Print your name exactly as it appears
on the face of this Security)
Your Signature:
--------------------------------------
(Sign exactly as your name appears on
the face of this Security)
Signature Guarantee*:
---------------------
* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).
B-11
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Company pursuant
to Section 3.12 or Section 3.17 of the Indenture, please check the appropriate
box:
[ ] Section 3.12 [ ] Section 3.17
If you want to elect to have only part of the Security purchased by the
Company pursuant to Section 3.12 or Section 3.17 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 Security)
Tax Identification No.: ____________________________________
Signature Guarantee*: __________________
* Participant in a recognized Signature Guarantee Medallion Program (or other
signature guarantor acceptable to the Trustee).
B-12
[in the case of Global Securities, insert:
SCHEDULE OF INCREASES OR DECREASES IN GLOBAL SECURITY
The initial principal amount of this Global Security is $________. The
following increases or decreases in this Global Security have been made:
Amount of Amount of
decrease in increases in Principal Amount of
Principal Principal Amount this Global Security Signature of
Amount of of following such authorized officer of
Date of This Global this Global decrease (or Trustee or
Exchange Security Security increase) Depositary
-------- -------- -------- --------- ----------
B-13
