EXHIBIT 4.1
INDENTURE, dated as of August 1, 2003 (this "Indenture"),
between Rural Cellular Corporation, a corporation organized and existing under
the laws of the State of Minnesota (herein called the "Company"), having its
principal office at 0000 Xxxxxx Xxxxxx X.X., Xxxxxxxxxx, XX 00000, and U.S. Bank
National Association, as trustee (herein called the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the creation of an issue of
its 9 7/8% Senior Notes due 2010 (the "Original Securities"), and 9 7/8% Series
B Senior Notes due 2010 (the "Exchange Securities," and together with the
Original Securities, the "Securities") of substantially the tenor and amount
hereinafter set forth, and to provide therefor the Company has duly authorized
the execution and delivery of this Indenture.
All things necessary to make the Securities, when executed by
the Company and authenticated and delivered hereunder and duly issued by the
Company, the valid obligations of the Company, and to make this Indenture a
valid agreement of the Company, in accordance with their and its terms, have
been done.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of
the Securities by the Holders thereof, it is mutually covenanted and agreed, for
the equal and proportionate benefit of all Holders of the Securities, as
follows:
ARTICLE I
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
Section 1.01 Definitions.
For all purposes of this Indenture, except as otherwise
expressly provided or unless the context otherwise requires:
(1) the terms defined in this Article have the meanings
assigned to them in this Article and include the plural as well as the singular;
(2) all other terms used herein which are defined in the
Trust Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(3) all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with GAAP (whether or not such
is indicated herein);
(4) unless otherwise specifically set forth herein, all
calculations or determinations of a Person shall be performed or made on a
consolidated basis in accordance with GAAP but shall not include the assets and
liabilities of Unrestricted Subsidiaries, except to the extent of dividends and
distributions actually paid to the Company or one of its Wholly Owned Restricted
Subsidiaries; and
(5) 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; and
(6) the term "on a pro forma basis" means on a pro forma
basis as calculated in accordance with Regulation S-X, as amended, under the
Securities Act.
"Acquired Indebtedness" means Indebtedness of a Person
(including an Unrestricted Subsidiary) (1) existing at the time such Person
becomes a Restricted Subsidiary or (2) assumed in connection with the
acquisition of assets from such Person, in the case of both of the preceding
clause (1) and clause (2), other than Indebtedness incurred in connection with,
or in contemplation of, such Person becoming a Restricted Subsidiary or such
acquisition. Acquired Indebtedness shall be deemed to be Incurred on the date of
the related acquisition of assets from any Person or the date the acquired
Person becomes a Restricted Subsidiary.
"Acquired Person" has the meaning specified in the definition
of Permitted Investments.
"Act" when used with respect to any Holder, has the meaning
specified in Section 1.04.
"Additional Securities" has the meaning specified in Section
3.01.
"Additional Senior Subordinated Exchange Debentures" means the
senior subordinated debentures that may be issued by the Company in accordance
with the terms of the Junior Exchangeable Preferred Stock in effect on the Issue
Date.
"Administrative Agent" means the Person or Persons designated
as such under the Credit Agreement.
"Affiliate" of any Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such Person. For the purposes of this definition, "control" when
used with respect to any Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership
of voting securities, by contract, or otherwise; provided, that beneficial
ownership of 10% or more of the Voting Power of a Person will be deemed to be
control. The terms "controlling" and "controlled" have meanings correlative to
the foregoing.
"Agent Member" means any member of, or participant in, the
Depositary.
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"Applicable Procedures" means, with respect to any transfer or
transaction involving a Global Security or beneficial interest therein, the
rules and procedures of the Depositary for such Security, Euroclear and
Clearstream, in each case to the extent applicable to such transaction and as in
effect from time to time.
"Asset Sale" means, in any one transaction or a series of
related transactions, the conveyance, sale, transfer, assignment or other
disposition, directly or indirectly, of any of the Company's or a Restricted
Subsidiary's property, business or assets, including any sale or other transfer
or issuance of any Capital Stock of any Restricted Subsidiary of the Company,
whether owned on the Issue Date or thereafter acquired.
Notwithstanding the foregoing, none of the following items
will be deemed an Asset Sale:
(1) an issuance of Capital Stock by a Restricted
Subsidiary of the Company to the Company or to a Wholly Owned Restricted
Subsidiary of the Company;
(2) the sale or other disposition of cash or Cash
Equivalents;
(3) the surrender or waiver of contract rights or
settlement, release or surrender of a contract, tort or other litigation claim
in the ordinary course of business;
(4) the lease, sublease or licensing of any property in
the ordinary course of business;
(5) a Restricted Payment (other than a Permitted
Investment) that is not prohibited by Section 10.10 or a Permitted Investment
pursuant to clauses (9), (11) and (12) of the definition thereof;
(6) the sale of inventory in the ordinary course of
business;
(7) any issuance of employee stock options or stock
awards by the Company pursuant to benefit plans in existence on the Issue Date;
and
(8) the granting of Liens not prohibited by this
Indenture.
"Asset Sale Offer Period" has the meaning specified in Section
10.14.
"Asset Sale Offer Amount" has the meaning specified in Section
10.14.
"Asset Sale Purchase Date" has the meaning specified in
Section 10.14.
"Attributable Debt" in respect of a Sale and Leaseback
Transaction means, at the time of determination, the present value of the total
obligations of the lessee for net rental payments during the remaining term of
the lease included in such Sale and Leaseback Transaction. Such present value
shall be calculated using a discount rate equal
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to the rate of interest implicit in such Sale and Leaseback Transaction,
determined in accordance with GAAP.
"Authenticating Agent" means any Person authorized by the
Trustee to act on behalf of the Trustee to authenticate Securities.
"Average Life" means, as of any date of determination, with
respect to any Indebtedness or Preferred Stock, the quotient obtained by
dividing:
(1) the sum of the product of (x) the number of years
from such date of determination to the date of each successive scheduled
amortization, redemption or principal payment of such Indebtedness (or similar
payment with respect to such Preferred Stock), times (y) the amount of such
payment; by
(2) the sum of all such payments.
"Bankruptcy Law" has the meaning specified in Section 5.01(h).
"Board of Directors" of a Person which is a corporation, means
either the board of directors of that Person or any duly authorized committee of
that board.
"Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the Company to have been duly adopted
by the Board of Directors of the Company, to be in full force and effect on the
date of such certification and delivered to the Trustee.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday
and Friday which is not a day on which banking institutions in New York City or
the State of Minnesota are authorized or obligated by law or executive order to
close.
"Capital Lease Obligation" means that portion of any
obligation of a Person as lessee under a lease which is required to be
capitalized on the balance sheet of such lessee in accordance with GAAP.
"Capital Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated,
including voting and non-voting) of equity of such Person; provided, that in no
event shall "Capital Stock" of any Person include any debt security convertible
or exchangeable into equity of such Person until conversion or exchange, as
applicable.
"Cash Equivalents" means:
(1) securities issued or directly and fully guaranteed or
insured by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is
pledged in support thereof), in each case, maturing within one year after the
date of acquisition;
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(2) time deposits, certificates of deposit, banker's
acceptances, money market deposits and commercial paper issued by, or deposited
with, any domestic bank or trust company of recognized standing having capital
and surplus in excess of $200 million and commercial paper issued by others
rated at least A-2 or the equivalent thereof by S&P or at least P-2 or the
equivalent thereof by Xxxxx'x and in each case maturing within one year after
the date of acquisition;
(3) repurchase obligations with a term of not more than
seven days for underlying securities of the types described in (1) and (2) above
entered into with any financial institution meeting the qualifications specified
in clause (2) above; and
(4) investments in money market funds substantially all
of whose assets comprise securities of the types described in clauses (2) and
(3) above.
"Change of Control" means:
(1) directly or indirectly a merger, sale, transfer or other
conveyance of all or substantially all the assets of the Company, on a
consolidated basis, to any "person" or "group" (as such terms are used for
purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not
applicable), excluding transfers or conveyances to or among the Company's
current or newly-formed Wholly Owned Restricted Subsidiaries, as an entirety or
substantially as an entirety in one transaction or series of related
transactions, in each case with the effect that any Person or group of Persons
beneficially owns more than 50% of the total Voting Power entitled to vote in
the election of directors, managers or trustees of the transferee entity
immediately after such transaction;
(2) any "person" or "group" (as such terms are used for
purposes of Sections 13(d) and 14(d) of the Exchange Act, whether or not
applicable) is or becomes the beneficial owner, directly or indirectly, of more
than 50% of the total Voting Power of the Company;
(3) during any period of 24 consecutive months, individuals
who at the beginning of such period constituted the Board of Directors of the
Company (together with any new directors whose election by such Board or whose
nomination for election by the shareholders of the Company was approved by a
vote of a majority of the directors then still in office who were either
directors at the beginning of such period or whose election or nomination for
election was previously so approved), cease for any reason to constitute a
majority of the Board of Directors of the Company then in office;
(4) the adoption of a plan relating to the liquidation or
dissolution of the Company; or
(5) any transaction constituting a "change of control" under
the instruments governing any Subordinated Indebtedness or Preferred Stock of
the Company, if such "change of control" would provide a holder of such
Subordinated Indebtedness or Preferred Stock with a right to require the Company
to repurchase or redeem such Subordinated Indebtedness or Preferred Stock in an
aggregate principal
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amount (or liquidation value, in the case of Preferred Stock) in excess of $20.0
million and such right has not been waived pursuant to the terms thereof.
For purposes of this definition, the terms "beneficially own,"
"beneficial owner" and "beneficial ownership" shall have the meanings used in
Rules 13d-3 and 13d-5 under the Exchange Act, whether or not applicable, except
that a Person shall be deemed to have "beneficial ownership" of all shares that
any such Person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time.
"Change of Control Offer" has the meaning specified in Section
10.16.
"Change of Control Offer Period" has the meaning specified in
Section 10.16.
"Change of Control Purchase Date" has the meaning specified in
Section 10.16.
"Change of Domicile" means a transaction or series of related
transactions, including without limitation (1) a merger, amalgamation,
combination or consolidation of the Company with or into another Person, (2) the
acquisition of all the Capital Stock of the Company or (3) the sale, transfer or
other conveyance of all or substantially all the assets of the Company on a
consolidated basis to another Person, the sole purpose of which is to
reincorporate the Company under the laws of the United States, in another State
of the United States or in the District of Columbia.
"Clearstream" means Clearstream Banking, a societe anonyme (or
any successor securities clearing agency).
"Commission" means the United States Securities and Exchange
Commission.
"Company" means the Person named as the "Company" in the first
paragraph of this instrument until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture and thereafter "Company"
shall mean such successor Person.
"Company Request" or "Company Order" means a written request
or order signed in the name of the Company by its Chief Executive Officer, its
President or any Vice President, and by its Chief Financial Officer, Treasurer,
an Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered
to the Trustee.
"Consolidated Indebtedness" of any Person means at any date of
determination, the Indebtedness of such Person and its Restricted Subsidiaries
at such date, on a consolidated basis.
"Consolidated Interest Expense" of any Person means for any
period the interest expense included in an income statement of such Person and
its Restricted
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Subsidiaries, on a consolidated basis, for such period, including without
limitation or duplication (or, to the extent not so included, with the addition
of),
(1) the portion of any rental obligation in respect of
any Capital Lease Obligation allocable to interest expense in accordance with
GAAP;
(2) the amortization of Indebtedness discounts;
(3) any payments or fees, other than reimbursement or
similar obligations, with respect to letters of credit, bankers' acceptances or
similar facilities;
(4) net payment obligations under Hedge Agreements;
(5) the portion other than Attributable Debt of any
rental obligations in respect of any Sale and Leaseback Transaction; and
(6) Preferred Stock dividends accrued or payable other
than dividends on Qualified Capital Stock of such Person.
Notwithstanding the foregoing:
(a) in the event that any of the Company's Qualified
Capital Stock is classified as indebtedness because of SFAS 150 or a change in
GAAP occurring after the Issue Date, dividend payments on such Qualified Capital
Stock will not be included in "Consolidated Interest Expense;" and
(b) for purposes of Section 10.10, "Consolidated Interest
Expense" shall exclude any non-cash charges resulting from the write-down of
unamortized security issuance costs, to the extent included in "Consolidated
Interest Expense."
"Consolidated Net Income" of any Person means for any period
the net income (or loss) of such Person and its Restricted Subsidiaries for such
period determined on a consolidated basis in accordance with GAAP; provided that
there shall be excluded therefrom (to the extent included and without
duplication):
(1) the net income (or loss) of any Person, other than
such Person, that is not a Restricted Subsidiary of such Person except to the
extent of the amount of dividends or other distributions actually paid to such
Person or a Restricted Subsidiary of such Person by such other Person during
such period,
(2) gains or losses from sales of assets other than sales
of inventory in the ordinary course of business,
(3) in the event that any of the Company's Qualified
Capital Stock is classified as indebtedness because of SFAS 150 or a change in
GAAP occurring after the Issue Date, dividend payments thereon, to the extent
they are treated as interest expense under GAAP,
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(4) for purposes of Section 10.10, the net income, if
positive, of any Restricted Subsidiary to the extent that the declaration or
payment of dividends or similar distributions by such Restricted Subsidiary of
such net income is not at that time permitted by the operation of the terms of
its charter or any agreement, instrument, judgment, decree, order, statute,
rule, or governmental regulations applicable to such Restricted Subsidiary,
except to the extent such restrictions with respect to the payment of dividends
or similar distributions have been validly waived, and
(5) all extraordinary gains and extraordinary losses.
"Consolidated Net Worth" of any Person means the consolidated
shareholders' equity of such Person, determined on a consolidated basis in
accordance with GAAP; provided, that such computation shall exclude (1) any
amounts attributable to Redeemable Stock or any equity security convertible into
or exchangeable for Indebtedness, the cost of treasury stock and the principal
amount of any promissory notes receivable from the sale of the Capital Stock of
the Company or any of its Restricted Subsidiaries and (2) Unrestricted
Subsidiaries.
"Cooperative Bank Equity" means non-voting equity interests in
Cooperative Banks.
"Cooperative Banks" means lenders under the Credit Agreement
which are cooperative banks.
"Corporate Trust Office" means the principal office of the
Trustee at 000 Xxxx 0xx Xxxxxx, Xx. Xxxx, XX 00000, if on or before August 11,
2003, and if after August 11, 2003, at 00 Xxxxxxxxxx Xxxxxx, XX-XX-XX0X, Xx.
Xxxx, XX 00000-0000 at which at any particular time its corporate trust business
shall be administered or such other location designated by the Trustee in a
report pursuant to Section 7.03(a) or other notice delivered to the Holders by
the Trustee.
"covenant defeasance" has the meaning specified in Section
12.03.
"Covenant Suspension" has the meaning specified in Section
10.20(a).
"Credit Agreement" means the Third Amended and Restated Loan
Agreement, dated as of June 29, 2000 as amended through and including the date
hereof, among the Company, Toronto Dominion (Texas), Inc., as Administrative
Agent, TD Securities (USA) Inc., as Book Runner and Lead Arranger, and First
Union National Bank and PNC Bank, as Co-Syndication Agents, and the other
lenders party to such Agreement, as such agreement may be further amended,
supplemented, restated, refunded, replaced, renewed, extended, refinanced,
increased or otherwise modified, in whole or in part, from time to time.
"Cumulative Interest Expense" means the total amount of
Consolidated Interest Expense of the Company and its Restricted Subsidiaries for
the period beginning on the first day of the completed fiscal quarter
immediately preceding January 16, 2002,
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through and including the end of the last completed fiscal quarter preceding the
date of any proposed Restricted Payment.
"Cumulative Operating Cash Flow" means Operating Cash Flow of
the Company and its Restricted Subsidiaries for the period beginning on the
first day of the completed fiscal quarter immediately preceding January 16,
2002, through and including the end of the last fiscal quarter preceding the
date of any proposed Restricted Payment.
"Default" means any event that is, or with the passage of time
or the giving of notice or both would be, an Event of Default.
"Defaulted Interest" has the meaning specified in Section
3.08.
"defeasance" has the meaning specified in Section 12.02.
"Depositary" means a clearing agency registered under the
Exchange Act that is designated to act as Depositary for the Securities until a
successor Depositary shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter "Depositary" shall mean such
successor Depositary. The Depositary shall initially be DTC.
"Distribution Compliance Period" means, with respect to the
Regulation S Securities, the "distribution compliance period" required by Rule
903(b)(2) of Regulation S applicable to such Securities.
"DTC" means The Depository Trust Company, a New York
corporation.
"DWAC" has the meaning specified in Section 3.06(b)(i)(E).
"Equity Offering" means any public or private sale of
Qualified Capital Stock by the Company for the account of the Company.
"Euroclear" means the Euroclear Clearance System (or any
successor securities clearing agency).
"Event of Default" has the meaning specified in Section 5.01.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended.
"Exchange Indentures" means the indentures under which the
Senior Subordinated Exchange Debentures and the Additional Senior Subordinated
Exchange Debentures may be issued.
"Exchange Offer" means an offer made pursuant to an effective
registration statement under the Securities Act by the Company to exchange all
or a portion of the Outstanding Securities (except for the differences provided
for herein) for Exchange Securities.
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"Exchange Registration Statement" means a registration
statement of the Company under the Securities Act registering Exchange
Securities for distribution pursuant to an Exchange Offer.
"Exchange Securities" means the Securities designated as such
in the first paragraph of the recitals of the Company, all of which are to be
issued pursuant to an Exchange Offer or sold pursuant to a Shelf Registration
Statement and their Successor Securities.
"Exchangeable Preferred Stock" means the 11 3/8% Senior
Exchangeable Preferred Stock of the Company.
"Existing Indebtedness" has the meaning specified in Section
10.08(f).
"Existing Liens" has the meaning specified in Section 10.12.
"Existing Preferred Stock" has the meaning specified in
Section 10.09(a).
"Expiration Date" has the meaning specified in the definition
of "Offer to Purchase."
"FCC" has the meaning specified in the definition of Wireless
Communications Business.
"Fair Market Value" means, with respect to any assets or
Person, the price which could be negotiated in an arm's-length free market
transaction between a willing seller and a willing buyer, neither of whom is
under undue pressure or compulsion to complete the transaction. Fair Market
Value will be determined (1) if such Person or assets have a Fair Market Value
of up to $2.5 million, by any executive officer of the Company and evidenced by
an Officers' Certificate, dated within 30 days of the relevant transaction, (2)
if such Person or assets have a Fair Market Value equal to or in excess of $2.5
million but not in excess of $10 million, by a majority of the Board of
Directors of the Company and evidenced by a Board Resolution, dated within 30
days of the relevant transaction or (3) if such Person or assets have a Fair
Market Value in excess of $10 million, by a majority of the Board of Directors
of the Company and evidenced by a Board Resolution, dated within 30 days of the
relevant transaction, based on an appraisal of an independent appraiser of
national reputation.
"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 or entities as have been approved by a
significant segment of the accounting profession in the United States, which are
in effect from time to time.
"Global Securities" has the meaning specified in Section 2.01.
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"Hedge Agreements" means any interest rate or currency
exchange rate swap, cap, collar, floor, caption or swaption agreements, or any
similar arrangements arising at any time between the Company or any Restricted
Subsidiary, on the one hand, and any Person, on the other hand, as such
agreement or arrangement may be modified, supplemented and in effect from time
to time.
"Holder" means a Person in whose name a Security is registered
in the 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," "Incurrable" and "Incurring" shall
have meanings correlative to the foregoing).
"Indebtedness" means (without duplication), with respect to
any Person:
(1) every obligation of such Person for money borrowed,
(2) every obligation of such Person evidenced by bonds,
debentures, notes, or similar instruments, including obligations Incurred in
connection with the acquisition of property, assets or businesses,
(3) every reimbursement or similar obligation of such
Person with respect to letters of credit, bankers' acceptances or similar
facilities issued for the account of such Person,
(4) every obligation of such Person issued or assumed as
the deferred and unpaid purchase price of property or services (but excluding
trade accounts payable or accrued liabilities arising in the ordinary course of
business),
(5) every Capital Lease Obligation of such Person,
(6) the maximum fixed redemption or repurchase price of
Redeemable Stock of such Person at the time of determination,
(7) Attributable Debt of such Person with respect to any
Sale and Leaseback Transaction to which such Person is a party,
(8) all obligations under Hedge Agreements,
(9) every obligation of the type referred to in clauses
(1) through (8) of another Person and all dividends of another Person the
payment of which, in either case, such Person has guaranteed or is responsible
or liable, directly or indirectly, as obligor, guarantor, or otherwise or for
which such Person provides any form of credit support, and if such credit
support takes the form of a Lien on any assets of the specified Person
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(which Lien is permitted to be Incurred by this Indenture) where such
Indebtedness is without recourse to such Person, the amount of such Indebtedness
will be the lesser of (A) the Fair Market Value of such assets as of the date of
determination and (B) the amount of such Indebtedness, and
(10) the liquidation value of Preferred Stock of a
Subsidiary of such Person issued and outstanding, except for Preferred Stock
held by such Person (or one of its Wholly Owned Restricted Subsidiaries);
provided, that for all purposes of this Indenture,
(A) the amount outstanding at any time of any
Indebtedness issued with original issue discount is the face amount of such
Indebtedness less the unamortized portion of the original issue discount of such
Indebtedness at the time of its issuance as determined in conformity with GAAP,
(B) Indebtedness shall not include any liability for
federal, state, local, or other taxes, and
(C) in the event that any of the Company's Qualified
Capital Stock is classified as indebtedness because of SFAS 150 or a change in
GAAP occurring after the Issue Date, such Qualified Capital Stock shall not be
included in "Indebtedness."
For purposes of this Indenture, the amount of any Indebtedness
under any Hedge Agreement shall be the amount determined in respect thereof as
of the end of the then most recently ended fiscal quarter of such Person, based
on the assumption that such Hedge Agreement had terminated at the end of such
fiscal quarter, and in making such determination, if such Hedge Agreement or any
related agreement provides for the netting of amounts payable by and to such
Person thereunder or if any such agreement provides for the simultaneous payment
of amounts by and to such Person, then in each such case, the amount of such
obligations shall be the net amount so determined, unless the counterparty under
such agreement is in default under such agreement or defaults in making the
corresponding payment to such Person.
"Indenture" means this instrument as originally executed or as
it may from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof or
restated.
"Initial Purchasers" means (1) with respect to the Original
Securities issued on the Issue Date, Xxxxxx Brothers Inc. and Xxxxxx Xxxxxxx &
Co. Incorporated and (2) with respect to Original Securities issued after the
Issue Date, the initial purchasers of such Securities from the Company in
connection with an exempt offering of Securities to "qualified institutional
buyers" (as such term is defined in Rule 144A) and to other persons.
"Intercompany Indebtedness" has the meaning specified in
Section 10.08.
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"Interest Payment Date" means the Stated Maturity of an
installment of interest on the Securities.
"Investment" by any Person in any other Person means (without
duplication):
(1) the acquisition (whether by purchase, merger,
consolidation, or otherwise) by such Person (whether for cash, property,
services, securities, or otherwise) of Capital Stock, bonds, notes, debentures,
partnership or other ownership interests or other securities of such other
Person;
(2) the making by such Person of any deposit with, or
advance, loan or other extension of credit to, such other Person or any
commitment to make any such advance, loan or extension;
(3) the entering into by such Person of any guarantee of,
or other contingent obligation with respect to, Indebtedness or other liability
of such other Person;
(4) the making of any capital contribution by such Person
to such other Person; and
(5) the designation by the Board of Directors of the
Company of any Person to be an Unrestricted Subsidiary.
For purposes of Section 10.10:
(A) "Investment" shall include and be valued at the Fair
Market Value of such Person's pro rata interest in the net assets of any
Restricted Subsidiary at the time that such Restricted Subsidiary is designated
an Unrestricted Subsidiary and shall exclude the lesser of (x) the Fair Market
Value of such Person's pro rata interest in the net assets of any Unrestricted
Subsidiary at the time that such Unrestricted Subsidiary is designated a
Restricted Subsidiary and (y) the Fair Market Value of the amount of such
Person's Investments (other than Permitted Investments) made in (net of cash
distributions received from) such Unrestricted Subsidiary since the Issue Date,
and
(B) the amount of any Investment shall be the Fair Market
Value of such Investment at the time any such Investment is made.
"Investment Grade" means a rating of the relevant debt
obligation of a Person by both S&P and Moody's, any such rating being in one of
such agency's four highest generic rating categories that signifies investment
grade (i.e., currently BBB- (or the equivalent) or higher by S&P and Baa3 (or
the equivalent) or higher by Moody's); provided in each case such ratings are
publicly available; provided that in the event either S&P or Xxxxx'x is no
longer in existence for purposes of determining whether such debt obligations
are rated "Investment Grade," such organization may be replaced by a nationally
recognized statistical rating organization (as defined in Rule 436 under the
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Securities Act) designated by the Company, written notice of which shall be
given to the Trustee.
"Issue Date" means the time and date of the first issuance of
the Original Securities.
"Junior Exchangeable Preferred Stock" means the 12 1/4% Junior
Exchangeable Preferred Stock of the Company.
"Lien" means, with respect to any property or assets, any
mortgage or deed of trust, pledge, hypothecation, assignment, deposit
arrangement, security interest, lien, charge, easement (other than an easement
not materially impairing usefulness or marketability), encumbrance, preference,
priority or other security agreement or preferential arrangement of any kind or
nature whatsoever on or with respect to such property or assets (including,
without limitation, any conditional sale or other title retention agreement
having substantially the same economic effect as any of the foregoing).
"Liquidated Damages" means the liquidated damages payable
under the Registration Rights Agreement.
"Marketable Securities" has the meaning specified in Section
10.14.
"Maturity" means, when used with respect to any Security, the
date on which the principal of such Security becomes due and payable, whether at
the Stated Maturity or by declaration of acceleration, call for redemption or
otherwise.
"Moody's" means Xxxxx'x Investors Service, Inc. and its
successors.
"Net Cash Proceeds" means the aggregate amount of cash and
Cash Equivalents received by the Company and its Restricted Subsidiaries in
respect of an Asset Sale (including upon the conversion to cash or Cash
Equivalents of (a) any note or installment receivable at any time or (b) any
other property as and when any cash and Cash Equivalents are received in respect
of any property received in an Asset Sale but only to the extent such cash or
Cash Equivalents are received within one year after such Asset Sale), less the
sum of (1) all out-of-pocket fees, commissions, and other expenses incurred in
connection with such Asset Sale, including the amount (estimated in good faith
by the Board of Directors of the Company) of income, franchise, sales, and other
applicable taxes required to be paid by the Company or any Restricted Subsidiary
of the Company in connection with such Asset Sale and (2) the aggregate amount
of cash so received which is used to retire any existing Senior Indebtedness of
the Company or Indebtedness of any Restricted Subsidiary; provided, that
Indebtedness ranking pari passu in right of payment with the Securities which is
issued pursuant to documentation providing for the making of an offer to
repurchase or repay such Indebtedness in connection with an Asset Sale shall be
treated as provided in Section 10.14 .
14
"Non-Recourse Debt" means Indebtedness:
(1) as to which neither the Company nor any of its
Restricted Subsidiaries:
(a) provides credit support of any kind
(including any undertaking, agreement or instrument that would constitute
Indebtedness);
(b) is directly or indirectly liable, as a
guarantor or otherwise; or
(c) constitutes the lender, other than with
respect to amounts that are lent by the Company or one of its Restricted
Subsidiaries to an Unrestricted Subsidiary in compliance with Sections 10.10 and
10.13 hereof and are otherwise permitted by this Indenture;
(2) no default with respect to which, including any
rights that the holders of such Indebtedness may have to take enforcement action
against an Unrestricted Subsidiary, would permit (upon notice, lapse of time or
both) any holder of any other Indebtedness of the Company or any of its
Restricted Subsidiaries to declare a default on that other Indebtedness or cause
the payment of that other Indebtedness to be accelerated or payable prior to its
stated maturity; and
(3) as to which the lenders will not have any recourse to
the assets of the Company or the stock or assets of any of its Restricted
Subsidiaries.
"Notice of Default" has the meaning specified in Section
5.01(e).
"Offer" has the meaning specified in the definition of Offer
to Purchase.
"Offer to Purchase" means a written offer (the "Offer") sent
by the Company to each Holder at his address appearing in the Security Register
on the date of the Offer offering to purchase up to the principal amount of
Securities specified in such Offer at the purchase price specified in such
Offer. Unless otherwise required by applicable law, the Offer shall specify an
expiration date (the "Expiration Date") of the Offer to Purchase which, subject
to any contrary requirements of applicable law, shall be not less than 30 days
nor more than 60 days after the date of such Offer to Purchase (or, in the case
of any Offer to Purchase made prior to the occurrence of the Change of Control
and contingent upon such occurrence, the later of (x) 60 days after the date of
such Offer to Purchase and (y) the date of occurrence of such Change of Control)
and a settlement date (the "Purchase Date") for purchase of Securities within
five Business Days after the Expiration Date.
The Offer shall also state:
(1) the Section of this Indenture pursuant to which the
Offer to Purchase is being made;
15
(2) the Expiration Date and the Purchase Date;
(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 has been
determined pursuant to the Section hereof 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 on the Purchase Date the Purchase Price will
become due and payable upon each Security accepted for payment pursuant to the
Offer to Purchase and that interest thereon shall cease to accrue on and after
the Purchase Date;
(8) that each Holder electing to tender 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);
(9) 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 Expiration Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of the Security 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;
(10) that (a) 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 (b) 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
(11) 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
16
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 so tendered.
"Offering Memorandum" means the Offering Memorandum, dated
July 23, 2003, with respect to the offering of the Original Securities to be
issued on the Issue Date.
"Officers' Certificate" means a certificate signed by two
officers at least one of whom shall be the principal executive officer,
principal accounting officer or principal financial officer of the Company and
delivered to the Trustee.
"Operating Cash Flow" for any Person for any period means:
(1) the Consolidated Net Income of such Person for such
period, plus
(2) the sum, without duplication (and only to the extent
such amounts are deducted in determining such Consolidated Net Income), of:
(a) the provisions for income taxes for such period for
such Person and its Restricted Subsidiaries, determined on a consolidated basis
in accordance with GAAP,
(b) depreciation, amortization and other non-cash charges
of such Person and its Restricted Subsidiaries, determined on a consolidated
basis in accordance with GAAP, and
(c) Consolidated Interest Expense, to the extent that any
such expense was deducted in computing such Consolidated Net Income, of such
Person for such period,
less the amount of all cash payments made during such period
by such Person and its Restricted Subsidiaries to the extent such payments
relate to non-cash charges that were added back in determining Operating Cash
Flow for such period or for any prior period (and only to the extent such
amounts are included in determining such Consolidated Net Income).
In the case of a Restricted Subsidiary that is not a Wholly
Owned Restricted Subsidiary, the determination of the percentage of the
Operating Cash Flow of such Restricted Subsidiary that is to be included in the
calculation of the Company's Operating Cash Flow shall be made on a pro forma
basis on the assumption that the percentage of the Company's common equity
interest in such Restricted Subsidiary throughout the applicable Reference
Period was equivalent to its common equity interest on the date of the
determination.
"Operating Cash Flow Ratio" means, on any date (the
"Transaction Date"), with respect to any Person, the ratio of
17
(1) Consolidated Indebtedness of such Person and its
Restricted Subsidiaries on the Transaction Date (after giving pro forma effect
to the Incurrence of any Indebtedness and the application of the proceeds
thereof on such Transaction Date) divided by
(2) the aggregate amount of Operating Cash Flow of such
Person;
provided, that for purposes of such computation, in
calculating Operating Cash Flow and Consolidated Indebtedness:
(A) the transaction giving rise to the need to calculate
the Operating Cash Flow Ratio will be assumed to have occurred (on a pro forma
basis) on the first day of the Reference Period;
(B) acquisitions that have been made by such Person or
any of its Restricted Subsidiaries, including through consolidations,
amalgamations, combinations or mergers during the Reference Period or subsequent
thereto and on or prior to the Transaction Date will be given effect (on a pro
forma basis) as if they had occurred on the first day of the Reference Period;
(C) businesses disposed of by such Person or any of its
Restricted Subsidiaries during the Reference Period or subsequent thereto and on
or prior to the Transaction Date will be given effect (on a pro forma basis) as
if they had occurred on the first day of the Reference Period; and
(D) the Indebtedness of any Restricted Subsidiary that is
not a Wholly Owned Restricted Subsidiary shall be determined in accordance with
the actual percentage of the Person's common equity interest in such Restricted
Subsidiary on the date of determination of the Operating Cash Flow Ratio (thus,
for example, in the case of a Restricted Subsidiary in which such Person owns a
51% common equity interest, 51% of such Subsidiary's Indebtedness would be
included in the calculation of such Person's aggregate Indebtedness).
"Opinion of Counsel" means a written opinion of counsel, who
may be counsel for the Company, and who shall be reasonably acceptable to the
Trustee, delivered to the Trustee.
"Original Securities" means the Securities designated in the
first paragraph of the recitals of 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:
(i) Securities theretofore canceled by
the Trustee or delivered to the Trustee for cancellation;
18
(ii) Securities for whose payment or
redemption money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company) in trust or set aside and
segregated in trust by the Company (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 provision therefor satisfactory to the Trustee has been made; and
(iii) Securities which have been replaced
pursuant to Section 3.07 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
principal amount of the Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or waiver hereunder, 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 relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Securities which the Trustee knows to be so owned shall
be so disregarded. Securities so owned which have been pledged in good faith may
be regarded as Outstanding if the 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.
"pari passu," when used with respect to the ranking of any
Indebtedness of any Person in relation to other Indebtedness of such Person,
means that each such Indebtedness (a) either (i) is not subordinated in right of
payment to any other Indebtedness of such Person or (ii) is subordinate in right
of payment to the same Indebtedness of such Person as is the other and is so
subordinate to the same extent and (b) is not subordinate in right of payment to
the other or to any Indebtedness of such Person as to which the other is not so
subordinate.
"Paying Agent" means any Person authorized by the Company to
pay the principal of (and premium, if any), interest (and Liquidated Damages, if
any), on any Securities on behalf of the Company.
"Payment Default" has the meaning specified in Section
5.01(f).
"Permitted Investments" means:
(1) Investments in Cash Equivalents;
(2) Investments in the Company or a Restricted
Subsidiary;
19
(3) Investments in a Person substantially all of whose
assets are of a type generally used in a Wireless Communications Business (an
"Acquired Person") if, as a result of such Investments, (A) the Acquired Person
immediately thereupon becomes a Restricted Subsidiary or (B) the Acquired Person
immediately thereupon either (a) is merged or consolidated with or into the
Company or any Restricted Subsidiary or (b) transfers or conveys all or
substantially all of its assets to, or is liquidated into, the Company or any of
its Restricted Subsidiaries;
(4) Investments in accounts and notes receivable acquired
in the ordinary course of business;
(5) any securities received in connection with an Asset
Sale and any Investment with the Net Cash Proceeds from any Asset Sale in
Capital Stock of a Person, all or substantially all of whose assets are of a
type used in a Wireless Communications Business, that complies with Section
10.14;
(6) advances and prepayments for asset purchases in the
ordinary course of business in a Wireless Communications Business of the Company
or a Restricted Subsidiary;
(7) customary loans or advances made in the ordinary
course of business to officers, directors, or employees of the Company or any of
its Restricted Subsidiaries for travel, entertainment, and moving and other
relocation expenses not to exceed $5.0 million at any one time outstanding;
(8) the purchase of Cooperative Bank Equity in
Cooperative Banks to the extent required by the charter documents of such
Cooperative Banks in connection with the Incurrence of any Indebtedness which is
provided by such Cooperative Banks under the Credit Agreement, provided that
such Incurrence is permitted under the terms of this Indenture;
(9) Investments in Wireless Alliance not exceeding $10.0
million in the aggregate made after January 16, 2002;
(10) Investments received in satisfaction of judgments,
settlements of debt or compromises of obligations incurred in the ordinary
course of business, including pursuant to any plan of reorganization or similar
arrangement upon the bankruptcy or insolvency of any trade creditor or customer;
(11) Investments arising from Hedge Agreements permitted
to be Incurred pursuant to clause (e) of the second paragraph under Section
10.08;
(12) Investments in any Person, which Investments have an
aggregate Fair Market Value, measured on the date each such Investment is made
and without giving effect to subsequent changes in value, when taken together
with all other Investments made pursuant to this clause (12) since the Issue
Date not exceeding $15.0 million;
20
(13) receivables owing to the Company or any Restricted
Subsidiary if created or acquired in the ordinary course of business and payable
or dischargeable in accordance with customary trade terms;
(14) Investments that are deemed to have been made as a
result of the acquisition of a Person that at the time of such acquisition held
instruments constituting Investments that were not acquired in contemplation of
the acquisition of such Person (only to the extent that the making of such
Investment through the acquisition of such Person was already deemed to be a
Restricted Payment made pursuant to Section 10.10 as of the date of such
acquisition); and
(15) Investments in prepaid expenses and lease, utility
and workers' compensation performance and other similar deposits.
"Person" means any individual, corporation, partnership, joint
venture, trust, unincorporated organization or government or any agency or
political subdivision thereof.
"Predecessor Security" of any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced
by such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 3.07 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.
"Preferred Stock" means, with respect to any Person, any and
all shares of Capital Stock of such Person that have preferential rights to any
other Capital Stock of such Person with respect to dividends or redemptions or
upon liquidation.
"Purchase Agreement" means (1) with respect to the Original
Securities issued on the Issue Date, the Purchase Agreement, dated as of July
23, 2003, among the Company and the Initial Purchasers, as such agreement may be
amended from time to time and (2) with respect to the Original Securities issued
after the Issue Date, the purchase agreement relating to the issuance of such
Securities among the Company and the Initial Purchasers, as such agreement may
be amended from time to time.
"Purchase Amount" has the meaning specified in the definition
of Offer to Purchase.
"Purchase Date" has the meaning specified in the definition of
Offer to Purchase.
"Purchase Price" has the meaning specified in the definition
of Offer to Purchase.
"Qualified Capital Stock" means, with respect to any Person,
any and all shares of Capital Stock other than Redeemable Stock.
21
"Qualified Capital Stock Proceeds" means, with respect to any
Person,
(1) in the case of any sale of Qualified Capital Stock,
the aggregate net cash proceeds received by such Person (plus 70% of the Fair
Market Value of long-term assets that are used or usable in a Wireless
Communications Business), after payment of expenses, commissions, and the like
incurred by such Person in connection therewith, and net of Indebtedness that
such Person Incurred, guaranteed or otherwise became liable for in connection
with the issuance or acquisition of such Capital Stock; and
(2) in the case of any exchange, exercise, conversion, or
surrender of any Redeemable Stock or Indebtedness of such Person issued (other
than to any Subsidiary) for cash after January 16, 2002 for or into shares of
Qualified Capital Stock of such Person, the liquidation value of the Redeemable
Stock or the net book value of such Indebtedness as adjusted on the books of
such Person to the date of such exchange, exercise, conversion, or surrender,
plus any additional amount paid by the securityholders to such Person upon such
exchange, exercise, conversion, or surrender and less any and all payments made
to the securityholders, and all other expenses, commissions and the like
incurred by such Person or any Subsidiary in connection therewith.
"Redeemable Stock" of any Person means any Capital Stock that,
by its terms (or by the terms of any security into which it is convertible, or
for which it is exchangeable, in each case at the option of the holder of the
Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation, is required to be redeemed
prior to the 91st day after the final Stated Maturity of the Securities or is
redeemable at the option of the holder thereof at any time prior to the 91st day
after the final Stated Maturity of the Securities, except to the extent such
Capital Stock is solely redeemable with any Capital Stock that is not Redeemable
Stock; provided that:
(1) only the portion of the Capital Stock which is
mandatorily redeemable or is so redeemable at the option of the holder prior to
such date shall be deemed Redeemable Stock;
(2) if such Capital Stock is issued in the ordinary
course of business to any employee or to any plan for the benefit of employees
of the Company or its Subsidiaries or by any such plan to such employees, such
Capital Stock shall not constitute Redeemable Stock solely because it may be
required to be repurchased by the Company or any of its Subsidiaries in order to
satisfy applicable statutory or regulatory obligations or as a result of such
employee's termination, death or disability; and
(3) any Capital Stock that would not constitute
Redeemable Stock but for provisions in it giving holders thereof the right to
require such Person to repurchase or redeem such Capital Stock upon the
occurrence of a "change of control" or "asset sale" occurring prior to the final
Stated Maturity of the Securities shall not constitute Redeemable Stock if the
"change of control" or "asset sale" provisions applicable to such Capital Stock
are no more favorable to the holders of such Capital Stock than the provisions
of Sections 10.14 or 10.16, as applicable, in this Indenture and such Capital
22
Stock specifically provides that such Person will not repurchase or redeem any
such Capital Stock pursuant to such provision prior to the Company's repurchase
of the Securities as required pursuant to Sections 10.14 or 10.16, as
applicable.
"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, means the price at which it is to be redeemed pursuant to the terms
of the Securities or this Indenture.
"Reference Period" with regard to any Person means the last
four completed fiscal quarters of such Person immediately preceding any date
upon which any determination is to be made pursuant to the terms of the
Securities or this Indenture.
"Registered Securities" means the Exchange Securities and all
other Securities sold or otherwise disposed of pursuant to an effective
registration statement under the Securities Act, together with their respective
Successor Securities.
"Registration Rights Agreement" means (1) with respect to the
Original Securities issued on the Issue Date, the Registration Rights Agreement,
dated as of August 1, 2003, by and among the Company and the Initial Purchasers,
as such agreement may be amended from time to time, and (2) with respect to
Original Securities issued after the Issue Date, any Registration Rights
Agreement among the Company and the Initial Purchasers providing for the
issuance of Exchange Securities in an Exchange Offer registered on an Exchange
Registration Statement and the registration of the resale of Securities under a
Shelf Registration Statement, as each such agreement may be amended from time to
time.
"Regular Record Date" for the interest payable on any Interest
Payment Date means the January 15 or July 15 (whether or not a Business Day), as
the case may be, next preceding such Interest Payment Date.
"Regulation S" means Regulation S under the Securities Act (or
any successor provision), as it may be amended from time to time.
"Regulation S Global Security" has the meaning specified in
Section 2.01.
"Regulation S Securities" means the Securities, if any, issued
in reliance on Regulation S.
"Restricted Global Security" has the meaning specified in
Section 2.01.
"Restricted Payment" means, with respect to any Person:
(1) any declaration or payment of a dividend or making
any other payment or other distribution (including, without limitation, any
payment in connection
23
with any merger or consolidation involving such Person or any Restricted
Subsidiary of such Person) on or on account of any shares of Capital Stock of
such Person or any Restricted Subsidiary of such Person (other than a dividend
payable solely in shares of the Qualified Capital Stock of such Person or
options, warrants, or other rights to acquire the Qualified Capital Stock of
such Person and other than any declaration or payment of a dividend or other
distribution by a Restricted Subsidiary to the Company or another Wholly Owned
Restricted Subsidiary of the Company);
(2) any payment on account of the purchase, redemption,
retirement, or acquisition (including by way of issuing any Indebtedness or
Redeemable Stock in exchange for Qualified Capital Stock) of (A) any shares of
Capital Stock of such Person or any Subsidiary of such Person held by Persons
other than such Person or any of its Restricted Subsidiaries or any shares of
Capital Stock of the direct or indirect parent of such Person or (B) any option,
warrant, or other right to acquire shares of Capital Stock of such Person or any
Restricted Subsidiary of such Person or any of its Restricted Subsidiaries, in
each case, other than pursuant to the cashless exercise of options, warrants or
other rights to acquire Capital Stock of such Person;
(3) any Investment (other than a Permitted Investment)
made by such Person; and
(4) any payment on or with respect to any Subordinated
Indebtedness of such Person, or any redemption, defeasance, repurchase, or other
acquisition or retirement for value prior to any scheduled maturity, repayment,
or sinking fund payment, of any Subordinated Indebtedness of such Person, except
a payment of interest or principal at the Stated Maturity thereof;
provided, that the term "Restricted Payment" does not include
the payment of a dividend or other distribution by any Restricted Subsidiary on
shares of its Capital Stock that is paid pro rata to all holders of such Capital
Stock.
"Restricted Subsidiary" of any Person means any Subsidiary of
such Person other than an Unrestricted Subsidiary of such Person.
"Rule 144" means Rule 144 under the Securities Act (or any
successor provision) as it may be amended from time to time.
"Rule 144A" means Rule 144A under the Securities Act (or any
successor provision), as it may be amended from time to time.
"Rule 144A Securities" means the Securities purchased by the
Initial Purchasers from the Company pursuant to the Purchase Agreement, other
than the Regulation S Securities.
"S&P" means Standard & Poor's Ratings Services and its
successors.
24
"Sale and Leaseback Transaction" of any Person means an
arrangement with any lender or investor or to which such lender or investor is a
party providing for the leasing by such Person of any property or asset of such
Person which has been or is being sold or transferred by such Person more than
270 days after the acquisition thereof or the completion of construction or
commencement of operation thereof to such lender or investor or to any Person to
whom funds have been or are to be advanced by such lender or investor on the
security of such property or asset. The stated maturity of such arrangement
shall be the date of the last payment of rent or any other amount due under such
arrangement prior to the first date on which such arrangement may be terminated
by the lessee without payment of a penalty.
"Securities" means securities designated in the first
paragraph of the recitals of the Company and includes the Exchange Securities.
"Securities Act" means the Securities Act of 1933, as amended.
"Securities Act Legend" means a legend substantially in the
form of the legend required in the form of Security set forth in Section 2.02 to
be placed upon a Rule 144A Security or an Regulation S Security.
"Security Registrar" and "Security Register" have the
respective meanings specified in Section 3.06.
"Senior Indebtedness" means all unsubordinated Indebtedness of
the Company or of any Restricted Subsidiary, whether outstanding on the Issue
Date or thereafter Incurred, including, without limitation, the Securities and
all Indebtedness outstanding under the Credit Agreement on the Issue Date after
giving effect to the offering and the application of the proceeds from it.
"Senior Operating Cash Flow Ratio" means, on any date (the
"Senior Transaction Date"), with respect to any Person, the ratio of
(1) consolidated Senior Indebtedness of such Person and
its Restricted Subsidiaries on the Senior Transaction Date (after giving pro
forma effect to the Incurrence of any Indebtedness and the application of the
proceeds thereof on such Senior Transaction Date) divided by
(2) the aggregate amount of Operating Cash Flow of such
Person;
provided, that for purposes of such computation, in
calculating Operating Cash Flow and consolidated Senior Indebtedness:
(A) the transaction giving rise to the need to calculate
the Senior Operating Cash Flow Ratio will be assumed to have occurred (on a pro
forma basis) on the first day of the Reference Period;
25
(B) acquisitions that have been made by such Person or
any of its Restricted Subsidiaries, including through consolidations,
amalgamations, combinations or mergers during the Reference Period or subsequent
thereto and on or prior to the Senior Transaction Date will be given effect (on
a pro forma basis) as if they had occurred on the first day of the Reference
Period;
(C) businesses disposed of by such Person or any of its
Restricted Subsidiaries during the Reference Period or subsequent thereto and on
or prior to the Transaction Date will be given effect (on a pro forma basis) as
if they had occurred on the first day of the Reference Period; and
(D) the Indebtedness of any Restricted Subsidiary that is
not a Wholly Owned Restricted Subsidiary shall be determined in accordance with
the actual percentage of the Person's common equity interest in such Restricted
Subsidiary on the date of determination of the Operating Cash Flow Ratio (thus,
for example, in the case of a Restricted Subsidiary in which such Person owns a
51% common equity interest, 51% of such Subsidiary's Indebtedness would be
included in the calculation of such Person's aggregate Indebtedness).
"Senior Subordinated Exchange Debentures" means the senior
subordinated debentures, that may be issued by the Company in accordance with
the terms of the Exchangeable Preferred Stock in effect on the Issue Date.
"Senior Transaction Date" has the meaning specified in the
definition of Senior Operating Cash Flow Ratio.
"SFAS 150" means Statement No. 150, "Accounting for Certain
Financial Instruments with Characteristics of both Liabilities and Equity," of
the Financial Accounting Standards Board.
"Shelf Registration Statement" means a "shelf" registration
statement under which resales of Securities by the holders thereof are
registered under the Securities Act pursuant to a Registration Rights Agreement.
"Significant Subsidiary" means any Restricted Subsidiary of
the Company that is a "significant subsidiary" as defined in Article 1-02(w) of
Regulation S-X under the Securities Act.
"Special Record Date" has the meaning specified in Section
3.08(a).
"Stated Maturity," when used with respect to any Security or
any installment of interest thereon, means the date specified in such Security
as the date on which the principal of such Security or such installment of
interest is due and payable.
"Subordinated Indebtedness" means Indebtedness of the Company
or any Restricted Subsidiary of the Company, whether outstanding on the date
hereof or hereafter Incurred, which is by its terms expressly subordinate or
junior in right of
26
payment to any other Indebtedness of the Company or a Restricted Subsidiary, as
the case may be.
"Subsidiary" means, as applied to any Person, (1) any
corporation of which more than fifty percent (50%) of the outstanding Capital
Stock (other than directors' qualifying shares) having ordinary Voting Power to
elect its board of directors, regardless of the existence at the time of a right
of the holders of any class or classes of securities of such corporation to
exercise such Voting Power by reason of the happening of any contingency, or any
entity other than a corporation of which more than fifty percent (50%) of the
outstanding ownership interests, is at the time owned directly or indirectly by
such Person, or by one or more Subsidiaries of such Person, or by such Person
and one or more Subsidiaries of such Person, or (2) any other entity which is
directly or indirectly controlled by such Person, or by one or more Subsidiaries
of such Person, or by such Person and one or more Subsidiaries of such Person.
"Successor Company" has the meaning specified in Section
8.01(b).
"Successor Security" of any particular Security means every
Security issued after, and evidencing all or a portion of the same debt as that
evidenced by, such particular Security; and, for the purposes of this
definition, any Security authenticated and delivered under Section 3.07 in
exchange for or in lieu of a mutilated, destroyed, lost or stolen Security shall
be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen
Security.
"Telecommunications Business" means the business of (1)
transmitting, or providing services relating to the transmission of, voice,
video or data through owned or leased wireline or wireless transmission
facilities, (2) creating, developing, constructing, installing, repairing,
maintaining or marketing communications-related systems, network equipment and
facilities, software and other products, or (3) evaluating, owning, operating,
participating in or pursuing any other business that is primarily related to
those identified in clauses (1) or (2) above (in the case of this clause (3),
however, in a manner consistent with the Company's manner of business on the
Issue Date), and shall, in any event, include all businesses in which the
Company or any of its Subsidiaries is engaged on the Issue Date or has entered
into agreements to engage in or to acquire a company to engage in or contemplate
engaging in, as expressly set forth in the Offering Memorandum; provided that
the determination of what constitutes a Telecommunications Business shall be
made in good faith by the Company's Board of Directors.
"Total Assets" means the total assets of the Company and its
Restricted Subsidiaries on a consolidated basis determined in accordance with
GAAP, as shown on the most recently available consolidated balance sheet of the
Company.
"Trust Indenture Act" means the Trust Indenture Act of 1939 as
in force at the date as of which this instrument was executed, except as
provided in Section 9.05; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, "Trust Indenture Act" means,
to the extent required by any such amendment, the Trust Indenture Act of 1939 as
so amended.
27
"Trustee" means the Person named as the "Trustee" in the first
paragraph of this instrument until a successor Trustee shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Trustee" shall mean such successor Trustee.
"U.S. Government Obligations" has the meaning specified in
Section 12.04(a).
"Unrestricted Subsidiary" of any Person means (1) any
Subsidiary of such Person that at the time of determination shall be designated
an Unrestricted Subsidiary by the Board of Directors of such Person in the
manner provided below and (2) any Subsidiary of an Unrestricted Subsidiary. Any
Subsidiary of the Company may be designated by the Board of Directors of the
Company as an Unrestricted Subsidiary by a Board Resolution, but only if the
Subsidiary:
(1) has no Indebtedness other than Non-Recourse
Debt;
(2) is not party to any agreement, contract,
arrangement or understanding with the Company or any Restricted Subsidiary of
the Company, unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or the Restricted Subsidiary
than those that might be obtained at the time from Persons who are not
Affiliates of the Company;
(3) is a Person with respect to which neither
the Company nor any of its Restricted Subsidiaries has any direct or indirect
obligation
(a) to subscribe for additional Capital
Stock or
(b) to maintain or preserve that
Person's financial condition or to cause that Person to achieve any specified
levels of operating results; and
(4) has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Company that does
not constitute Senior Indebtedness.
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 Board
Resolution giving effect to that designation and an Officers' Certificate
certifying that that designation complied with the preceding conditions and was
permitted by Section 10.10. If, at any time, any Unrestricted Subsidiary would
fail to meet the preceding requirements as an Unrestricted Subsidiary, it shall,
after that time, cease to be an Unrestricted Subsidiary for purposes of this
Indenture, and any Indebtedness of that Subsidiary shall be deemed to be
incurred by a Restricted Subsidiary of the Company as of that date (and, if that
Indebtedness is not permitted to be incurred as of that date under Section
10.08, the Company shall be in default of that covenant). The Board of Directors
of the Company may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided that the designation shall be deemed to be an
incurrence of Indebtedness by a Restricted
28
Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
Subsidiary, and that designation shall only be permitted if:
(A) the Indebtedness is permitted under Section
10.08 of this Indenture, calculated on a pro forma basis as if that designation
had occurred at the beginning of the Reference Period, and
(B) no Default or Event of Default would occur
or be in existence following that designation.
Wireless Alliance shall be deemed an Unrestricted Subsidiary as of the Issue
Date and shall thereafter remain an Unrestricted Subsidiary unless and until
designated by the Board of Directors as a Restricted Subsidiary in accordance
with the terms of this Indenture.
"Voting Power" of any Person means the aggregate number of
votes of all classes of Capital Stock of such Person which ordinarily have
voting power for the election of directors of such Person.
"Wholly Owned Restricted Subsidiary" of any Person means a
Restricted Subsidiary of such Person all of the outstanding Capital Stock or
other ownership interests of which (other than directors' qualifying shares)
shall at the time be owned by such Person or by one or more Wholly Owned
Restricted Subsidiaries of such Person or by such Person and one or more Wholly
Owned Restricted Subsidiaries of such Person.
"Wireless Alliance" means Wireless Alliance LLC, a Minnesota
limited liability company.
"Wireless Communications Business" means any business
substantially related to the ownership, development, operation or acquisition of
wireless communications services permitted under the Federal Communications
Commission's (the "FCC") Commercial Mobile Radio Services rules (and the related
provisions of the FCC's Public Mobile Services and Personal Communications
Services rules), and other related telecommunications business services.
Section 1.02 Compliance Certificates and Opinions.
Upon any application or request by the Company to the Trustee
to take any action under any provision of this Indenture, the Company shall
furnish to the Trustee such certificates and opinions as may be required under
the Trust Indenture Act. Each such certificate or opinion shall be given in the
form of an Officers' Certificate, if to be given by an officer of the Company,
or an Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirement set forth in
this Indenture.
29
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(1) a statement that each individual signing such
certificate or opinion has read such covenant or condition and the definitions
herein relating thereto;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(3) a statement that, in the opinion of each such
individual, he or she has made such examination or investigation as in his or
her reasonable judgment is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been complied with;
and
(4) a statement as to whether or not, in the opinion of
each such individual, such condition or covenant has been complied with.
Section 1.03 Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified
by, or covered by an opinion of, any specified Person, it is not necessary that
all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an officer of the Company may be
based, insofar as it relates to legal matters, upon a certificate or opinion of,
or representations by, counsel, unless such officer knows that the certificate
or opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. Any certificate or opinion of
counsel may be based, insofar as it relates to factual matters, upon a
certificate or opinion of, or representations by, an officer or officers of the
Company stating that the information with respect to such factual matters is in
the possession of the Company, unless such counsel knows that the certificate or
opinion or representations with respect to such matters are erroneous.
Where any Person is required to make, give or execute two or
more applications, requests, consents, certificates, statements, opinions or
other instruments under this Indenture, they may, but need not, be consolidated
and form one instrument.
Section 1.04 Acts of Holders; Record Date.
(a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to
be given or taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar
30
tenor signed by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are received by the Trustee and,
where it is hereby expressly required, by the Company. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the "Act" of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 6.01) conclusive in favor of the Trustee and the
Company, if made in the manner provided in this Section 1.04.
(b) The fact and date of the execution by any
Person of any such instrument or writing may be proved by the affidavit of a
witness of such execution or by a certificate of a notary public or other
officer authorized by law to take acknowledgments of deeds, certifying that the
individual signing such instrument or writing acknowledged to him the execution
thereof. Where such execution is by a signer acting in a capacity other than his
individual capacity, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any
such instrument or writing, or the authority of the Person executing the same,
may also be proved in any other manner which the Trustee reasonably deems
sufficient.
(c) The Company may, in the circumstances
permitted by the Trust Indenture Act, fix any day as the record date for the
purpose of determining the Holders entitled to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action, or to vote on
any action, authorized or permitted to be given or taken by Holders. If not set
by the Company prior to the first solicitation of a Holder made by any Person in
respect of any such action, or, in the case of any such vote, prior to such
vote, the record date for any such action or vote shall be the 30th day (or, if
later, the date of the most recent list of Holders required to be provided
pursuant to Section 7.01) prior to such first solicitation or vote, as the case
may be. With regard to any record date, only the Holders on such date (or their
duly designated proxies) shall be entitled to give or take, or vote on, the
relevant action.
(d) The ownership of Securities shall be proved
by the Security Register.
(e) Any request, demand, authorization,
direction, notice, consent, waiver or other Act of the Holder of any Security
shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustee or the Company in reliance thereon, whether or not
notation of such action is made upon such Security.
Section 1.05 Notices, Etc., to Trustee and Company.
Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by
this Indenture to be made upon, given or furnished to, or filed with,
31
(1) the Trustee by any Holder or by the Company shall be
sufficient for every purpose hereunder if made, given, furnished or filed in
writing to or with the Trustee at its Corporate Trust Office, Attention: Trust
Officer, or
(2) the Company by the Trustee or by any Holder shall be
sufficient for every purpose hereunder (unless otherwise herein expressly
provided) if in writing and mailed, first-class postage prepaid, to the Company,
Attention: Chief Executive Officer, addressed to it at the address of its
principal office specified in the first paragraph of this instrument or at any
other address previously furnished in writing to the Trustee by the Company.
Section 1.06 Notice to Holders; Waiver.
Where this Indenture provides for communication with or notice
to Holders, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class postage prepaid, to
each Holder, at his 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 Holders is
given by mail, neither the failure to mail such notice, nor any defect in any
notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders. Where this Indenture provides for notice
in any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or
by reason of any other cause it shall be impracticable to give such notice by
mail, then such notification as shall be made with the approval of the Trustee
shall constitute a sufficient notification for every purpose hereunder.
Section 1.07 Conflict with Trust Indenture Act.
If any provision hereof limits, qualifies or conflicts with a
provision of the Trust Indenture Act that is required under such act to be part
of and govern this Indenture, the provisions of the Trust Indenture Act shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the provision of
this Indenture shall be deemed to apply.
Section 1.08 Effect of Headings and Table of Contents.
The Article and Section headings herein and the Table of
Contents are for convenience only and shall not affect the construction hereof.
32
Section 1.09 Successors and Assigns.
All covenants and agreements in this Indenture by the Company
shall bind its successors and assigns, whether so expressed or not.
Section 1.10 Separability Clause.
In case any provision in this Indenture or in 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 1.11 Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or
implied, shall give to any Person, other than the parties hereto and their
successors hereunder, the Holders of Securities, any benefit or any legal or
equitable right, remedy or claim under this Indenture.
Section 1.12 Governing Law.
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS THEREUNDER THAT WOULD INDICATE THE APPLICABILITY
OF THE LAWS OF ANY OTHER JURISDICTION.
Section 1.13 Legal Holidays.
In any case where any Interest Payment Date, Redemption Date,
Purchase Date or Stated Maturity of any Security is not a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of interest, Liquidated Damages, if any, or principal (and premium, if
any) need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment
Date, Redemption Date or Purchase Date, or at the Stated Maturity, provided,
that no interest shall accrue for the period from and after such Interest
Payment Date, Redemption Date, Purchase Date or Stated Maturity, as the case may
be, if such payment is made on such next succeeding Business Day.
Section 1.14 No Personal Liability of Directors, Officers,
Employees, and Shareholders
No director, officer, employee, incorporator, or shareholder
of the Company or its Subsidiaries, as such, shall 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, those obligations or their
creation. Each Holder of Securities, by accepting a Security, waives and
releases all such liability. The waiver and release are part of the
consideration for issuance of the Securities.
33
Section 1.15 Counterparts
This instrument may be executed in any number of counterparts,
each of which so executed shall be deemed to be an original, and all of which
counterparts shall together constitute but one and the same instrument.
ARTICLE II
SECURITY FORMS
Section 2.01 Forms Generally.
The Securities and the Trustee's certificates of
authentication shall be in substantially the forms set forth in this Article II,
with such appropriate insertions, omissions, substitutions and other variations
as are required or permitted by this Indenture, and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange
or as may, consistently herewith, be determined by the officers executing such
Securities, as evidenced by their execution of the Securities.
The definitive Securities shall be printed, lithographed or
engraved or produced by any combination of these methods on steel engraved
borders or may be produced in any other manner permitted by the rules of any
securities exchange on which the Securities may be listed, all as determined by
the officers executing such Securities, as evidenced by their execution of such
Securities.
The Rule 144A Securities shall initially be represented by one
or more Securities in registered, global form without coupons (collectively, the
"Restricted Global Security"). The Regulation S Securities shall be represented
by one or more Securities in registered, global form without interest coupons
(collectively, the "Regulation S Global Security" and, together with the
Restricted Global Security, the "Global Securities"). The Global Securities
shall be deposited upon issuance with the Trustee as custodian for DTC and
registered in the name of DTC or its nominee, in each case for credit to an
account of a direct or indirect participant in DTC as described below.
Section 2.02 Form of Face of Security
Rule 144A Securities and the Regulation S Securities
(including beneficial interests in the Global Securities and, subject to Section
3.06(c), their Successor Securities) shall be subject to certain restrictions on
transfer and shall bear a legend in substantially the following form:
"THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER XXXXXXX 0 XX
XXX XXXXXX XXXXXX SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND THE
SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE
34
ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE
SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY
EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY
MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1) (a) TO A PERSON WHO
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, (b) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE
SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT, OR
(d) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO
REQUESTS), (2) TO THE COMPANY OR ITS SUBSIDIARIES, OR (3) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER
APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS
REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF
THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE."
[IF THE SECURITY IS A GLOBAL SECURITY, THEN INSERT -- THIS
SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF.
THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY
REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE
REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE
THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.]
[IF THE SECURITY IS A GLOBAL SECURITY AND THE DEPOSITORY TRUST
COMPANY IS TO BE THE DEPOSITARY THEREFOR, THEN INSERT -- UNLESS THIS CERTIFICATE
IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION ("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF
TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
35
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]
9 7/8% [SERIES B](1) SENIOR NOTES DUE 2010
No. ________ $________
[If Restricted Global Security - CUSIP Number 781904 AG 2]
[If Regulation S Global Security - CUSIP Number U74991 AC 1]
[If Exchange Security - CUSIP Number 781904 AH 0]
Rural Cellular Corporation, a corporation duly organized and
existing under the laws of Minnesota (herein called the "Company," which term
includes any successor Person under the Indenture hereinafter referred to), for
value received, hereby promises to pay to _______________, or its registered
assigns, the principal sum of ___________ Dollars [IF THE SECURITY IS A GLOBAL
SECURITY, THEN INSERT -- , or such other principal amount as may be set forth in
the records of the Trustee hereinafter referred to in accordance with the
Indenture,] on February 1, 2010.
The Company shall pay interest in cash on the principal amount
hereof from August 1, 2003 or from the most recent Interest Payment Date to
which interest has been paid or duly provided for, at the rate of 9 7/8% per
annum, until the principal amount hereof is paid or made available for payment.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) in cash (to the extent that the payment of
such interest shall be legally enforceable) at a rate of 9 7/8% per annum on any
overdue principal and premium, if any, and on any overdue installment of
interest and Liquidated Damages (without regard to any applicable grace
periods), if any, until paid. The Company shall pay Liquidated Damages, if any,
in cash as provided in the Registration Rights Agreement. The Company shall pay
interest and Liquidated Damages, if any, semi-annually on February 1 and August
1 in each year, commencing February 1, 2004.
The interest so payable, and punctually paid or duly provided
for, on any Interest Payment Date shall, as provided in such Indenture, be paid
to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest, which shall be January 15 or July 15 (whether or not a
Business Day), as the case may be, next preceding such Interest Payment Date [IF
THE SECURITY IS AN ORIGINAL SECURITY, THEN INSERT --, provided that any accrued
and unpaid interest (including Liquidated Damages, if any) on this Security upon
the issuance of an Exchange Security in exchange for this Security shall cease
to be payable to the Holder hereof and shall be payable on the next Interest
Payment Date for such Exchange Security to the Holder thereof on the related
Regular Record Date]. Any such interest or Liquidated Damages not so punctually
paid or duly provided for shall forthwith cease to be payable to the Holder on
such Regular Record
------------------------
(1) Include only for Exchange Securities.
36
Date and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest to be fixed by the
Trustee, notice of which shall be given to Holders of Securities not less than
10 days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by such exchange, all as more fully provided in the Indenture.
Payment of the principal of (and premium, if any) and interest
(and Liquidated Damages, if any), on this Security shall be made at the
Corporate Trust Office or at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, New York City, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however, that at the
option of the Company payment of interest or Liquidated Damages, if any, may be
made by check mailed to the address of the Person entitled thereto as such
address shall appear in the Security Register. Notwithstanding the foregoing, if
a Holder has given wire transfer instructions to the Company, the Company shall
pay all principal, interest, premium, if any, or Liquidated Damages, if any, on
that Holder's Securities in accordance with those instructions.
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.
Unless the certificate of authentication hereon has been
executed by the Trustee referred to on the reverse hereof by manual signature,
this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
IN WITNESS WHEREOF, the Company has caused this instrument to
be duly executed.
Dated:
RURAL CELLULAR CORPORATION
By:_____________________________
Name:
Title:
Section 2.03 Form of Reverse of Security.
This Security is one of a duly authorized issue of securities
of the Company designated as its 9 7/8% [Series B](2) Senior Notes due 2010
(herein called the
------------------------
(2) Include only for Exchange Securities.
37
"Securities") issued and to be issued under an Indenture, dated as of August 1,
2003 (herein called the "Indenture"), between the Company and U.S. Bank National
Association, as Trustee (herein called the "Trustee," which term includes any
successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Securities and of the terms upon which the
Securities are, and are to be, authenticated and delivered.
On or after August 1, 2007, the Securities may be redeemed at
any time at the option of the Company, in whole or from time to time in part, at
the following Redemption Prices (expressed as percentages of the principal
amount thereof), if redeemed during the 12-month period beginning August 1 of
the years indicated,
Year Redemption Price
---- ----------------
2007 104.938%
2008 102.469%
2009 and thereafter 100.000%
together in the case of any such redemption with accrued and unpaid interest and
Liquidated Damages, if any, to but excluding the Redemption Date, but any
interest installment whose Stated Maturity is on or prior to such Redemption
Date will be payable to the Holders of such Securities, or one or more
Predecessor Securities, of record at the close of business on the relevant
Record Dates referred to on the face hereof, all as provided in the Indenture.
Notwithstanding the foregoing, at any time prior to August 1,
2006, the Company may, in one or more transactions, redeem up to a total of 35%
of the aggregate principal amount of Securities actually issued under the
Indenture (including Additional Securities, if any) from the net cash proceeds
of an Equity Offering at a Redemption Price equal to 109.875% of the aggregate
principal amount thereof, together with accrued and unpaid interest and
Liquidated Damages, if any, on the Securities redeemed to but excluding the
Redemption Date; provided, that at least 65% in aggregate principal amount of
Securities issued under the Indenture (including Additional Securities, if any)
remains outstanding immediately following such redemption. Any such redemption
must be made within 45 days after the related Equity Offering.
Notice of any optional redemption of the Securities (or
portion thereof) will be given by first-class mail to the Holders at their
addresses appearing in the Security Register not less than 30 nor more than 60
days prior to the Redemption Date. The notice of redemption shall state the
Redemption Date, the Redemption Price, if less than all the Outstanding
Securities are to be redeemed, principal amounts of the particular Securities to
be redeemed, that on the Redemption Date the Redemption Price will become due
and payable upon each Security to be redeemed and the place or places where such
Securities are to be surrendered for payment of the Redemption Price.
38
If less than all the Securities are to be redeemed at any
time, the Trustee will select Securities for redemption as follows:
(1) if the Securities are listed on any securities
exchange, in compliance with the requirements of the principal securities
exchange on which the Securities are listed; or
(2) if the Securities are not listed on any securities
exchange, on a pro rata basis, by lot or by such method as the Trustee deems
fair and appropriate.
The Securities do not have the benefit of any sinking fund
obligations.
In the event of redemption or purchase pursuant to an Offer to
Purchase of this Security in part only, a new Security or Securities for the
unredeemed or unpurchased portion hereof will be issued in the name of the
Holder hereof upon the cancellation hereof.
If an Event of Default shall occur and be continuing, the
principal of all the Securities may be declared, or may automatically become,
due and payable in the manner and with the effect provided in the Indenture.
The Indenture provides that, subject to certain conditions, if
(i) certain Net Cash Proceeds are available to the Company as a result of Asset
Sales or (ii) a Change of Control occurs, the Company shall be required to make
an Offer to Purchase for the Securities.
The Indenture contains provisions for defeasance at any time
of (i) the entire indebtedness of this Security or (ii) certain restrictive
covenants and Events of Default with respect to this Security, in each case upon
compliance with certain conditions set forth therein.
The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Securities under
the Indenture at any time by the Company and the Trustee with the consent of the
Holders of a majority in aggregate principal amount of the Securities at the
time Outstanding. The Indenture also contains provisions permitting the Holders
of specified percentages in aggregate principal amount of the Securities at the
time Outstanding, on behalf of the Holders of all the Securities, to waive
compliance by the Company with certain provisions of the Indenture and certain
past defaults under the Indenture and their consequences. Any such consent or
waiver by the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this
Security.
No reference herein to the Indenture and no provision of this
Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and
39
unconditional, to pay the principal of (and premium, if any), interest (and
Liquidated Damages, if any), on this Security at the time, place and rate, and
in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in
the Security Register, upon surrender of this Security for registration of
transfer at the Corporate Trust Office or at the office or agency of the Company
in the Borough of Manhattan, New York City, duly endorsed by, or accompanied by
a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities, of authorized
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.
The Securities are issuable only in registered form without
coupons in denominations of $1,000 and any integral multiple thereof. As
provided in the Indenture and subject to certain limitations therein set forth,
the Securities are exchangeable for a like aggregate principal amount of
Securities of a different authorized denomination, as requested by the Holder
surrendering the same.
No service charge shall be made for any such registration of
transfer or exchange, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charges or fees required by law payable in
connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner
hereof for all purposes, whether or not this Security be overdue, and neither
the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.
Interest on this Security shall be computed on the basis of a
360-day year of twelve 30-day months [IF THE SECURITY IS AN ORIGINAL SECURITY,
THEN INSERT-- ; provided, however, that any Liquidated Damages shall be computed
on the basis of a 7-day week, and the number of days actually elapsed].
All terms used in this Security which are not defined herein
but which are defined in the Indenture shall have the meanings assigned to them
in the Indenture. In the event that any provision in this Security conflicts
with any provision in the Indenture, the provision contained in the Indenture
shall control.
The Indenture and this Security shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of laws thereunder that would indicate the
applicability of the laws of any other jurisdiction.
40
OPTION OF HOLDER TO ELECT PURCHASE
CHOOSE ONE:
If you want to elect to have this Security purchased in its
entirety by the Company pursuant to Section 10.14 or 10.16 of the Indenture,
check the box: [ ]
If you want to elect to have only a part of this Security
purchased by the Company pursuant to Section 10.14 or 10.16 of the Indenture,
state the amount: $_______
Dated: Your Signature:_________________________________
(Sign exactly as name appears on
the other side of this Security)
Signature Guarantee:________________________________________
(Signature must be guaranteed
by a member firm of the New York
Stock Exchange or a commercial
bank or trust company)
Section 2.04 Form of Trustee's Certificate of Authentication.
This is one of the Securities referred to in the
within-mentioned Indenture.
U.S. Bank National Association,
as Trustee
By:______________________________________
Authorized Officer
ARTICLE III
THE SECURITIES
Section 3.01 Title and Terms.
Subject to Section 3.03, the Trustee shall authenticate
Original Securities for original issue on the date of this Indenture in the
aggregate principal amount of $325,000,000. With respect to any securities
issued after the date of this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of,
Original Securities pursuant to this Indenture), there shall be established in
or pursuant to a resolution of the Board of Directors of the Company, and
subject to Section 3.03, set forth, or determined in the manner provided in an
Officers'
41
Certificate, or established in one or more indentures supplemental hereto, prior
to the issuance of such Securities ("Additional Securities"):
(1) the aggregate principal amount of such Additional
Securities that may be authenticated and delivered under this Indenture;
(2) the issue price and issuance date of such Additional
Securities that may be authenticated and delivered under this Indenture; and
(3) that such Additional Securities shall be issuable in the
same form as the then Outstanding Securities and having the same terms (other
than with respect to transfer restrictions and registration rights) as the then
Outstanding Securities and the same depositaries.
The Original Securities shall be known and designated as the
"9 7/8% Senior Notes due 2010" and the Exchange Securities shall be known and
designated as the "9 7/8% Series B Senior Notes due 2010," in each case, of the
Company. Their Stated Maturity shall be February 1, 2010 and they shall bear
interest at the rate of 9 7/8% per annum, from August 1, 2003 or from the most
recent Interest Payment Date to which interest has been paid in cash or duly
provided for, as the case may be, payable semi-annually on February 1, and
August 1 commencing on February 1, 2004, to the Holders of record on the
immediately preceding January 15 and July 15, until the principal thereof is
paid or made available for payment; provided, however, that the Original
Securities shall be subject to the payment of Liquidated Damages, if any, as set
forth in the Registration Rights Agreement. The Liquidated Damages, if any, so
payable, and punctually paid or duly provided for in respect of any Security, on
any Interest Payment Date shall, as provided in this Indenture and the
Registration Rights Agreement, 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, which shall be January 15 or July
15 (whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Accrued Liquidated Damages, if any, shall be paid in cash
in arrears semi-annually on February 1 and August 1, in each year and the amount
of accrued Liquidated Damages shall be determined on the basis of the number of
days actually elapsed and computed as provided in Section 3.11.
The principal of (and premium, if any) and interest (and
Liquidated Damages, if any), on the Securities shall be payable at the Corporate
Trust Office or at the office or agency of the Company in the City and State of
New York maintained for such purpose; provided, however, that at the option of
the Company payment of interest and Liquidated Damages, if any, may be made by
check mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register. Notwithstanding the foregoing, if a Holder has
given wire transfer instructions to the Company, the Company shall pay all
principal, interest, premium, if any, and Liquidated Damages, if any, on that
Holder's Securities in accordance with those instructions.
The Securities shall be subject to repurchase by the Company
pursuant to an offer to purchase the securities as provided in Sections 10.14
and 10.16.
42
The Securities shall be redeemable as provided in Article XI.
The Securities shall be subject to defeasance at the option of
the Company as provided in Article XII.
Section 3.02 Denominations.
The Securities issued pursuant to this Indenture shall be
treated as a single class for all purposes of the Indenture. The Securities
shall be issuable only in registered form without coupons and only in
denominations of $1,000 and any integral multiples thereof.
Section 3.03 Execution, Authentication, Delivery and Dating.
The Securities shall be executed on behalf of the Company by
its Chief Executive Officer, its President or one of its Vice Presidents. The
signature of any of these officers on the Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of
individuals who were at any time the proper Officers of the Company shall bind
the Company, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Securities or
did not hold such offices at the date of such Securities.
At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities executed by the
Company to the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities; and the Trustee in accordance
with such Company Order shall authenticate and deliver such Securities as
provided in this Indenture and not otherwise.
At any time and from time to time after the execution and
delivery of this Indenture and after the effectiveness of a registration
statement under the Securities Act with respect thereto, the Company may deliver
Exchange Securities executed by the Company to the Trustee for authentication,
together with a Company Order for the authentication and delivery of such
Exchange Securities and a like principal amount of Original Securities for
cancellation in accordance with Section 3.10 of this Indenture, and the Trustee
in accordance with the Company Order shall authenticate and deliver such
Securities. Prior to authenticating such Exchange Securities, and accepting any
additional responsibilities under this Indenture in relation to such Securities,
the Trustee shall be entitled to receive, if requested, and (subject to Section
6.01) shall be fully protected in relying upon, an Opinion of Counsel stating in
substance:
(a) that all conditions hereunder precedent to
the authentication and delivery of such Exchange Securities have been complied
with and that such Exchange Securities, when such Securities have been duly
authenticated and delivered by the Trustee (and subject to any other conditions
specified in such Opinion of Counsel), have been duly issued and delivered and
will constitute valid and legally binding
43
obligations of the Company enforceable in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors' rights
and to general equity principles; and
(b) that the issuance of the Exchange Securities
in exchange for Original Securities has been effected in compliance with the
Securities Act.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such
Security a certificate of authentication substantially in the form provided for
herein executed by the Trustee by manual signature, and such certificate upon
any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder.
Section 3.04 Temporary Securities.
Pending the preparation of definitive Securities, the Company
may execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities that are printed, lithographed, typewritten, mimeographed
or otherwise produced, in any authorized denomination, substantially of the
tenor of the definitive Securities in lieu of which they are issued and with
such appropriate insertions, omissions, substitutions and other variations as
the officers executing such Securities may determine, as evidenced by their
execution of such Securities.
If temporary Securities are issued, the Company will cause
definitive Securities to be prepared without unreasonable delay. After the
preparation of definitive Securities, the temporary Securities shall be
exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Company designated pursuant to Section
10.02, 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 deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.
Section 3.05 Global Securities.
(a) Each Global Security authenticated under
this Indenture shall be registered in the name of the Depositary designated by
the Company for such Global Security or a nominee thereof and delivered to such
Depositary or a nominee thereof or custodian therefor, and each such Global
Security shall constitute a single Security for all purposes of this Indenture.
(b) Notwithstanding any other provision in this
Indenture, no Global Security may be exchanged in whole or in part for
Securities registered, and no
44
transfer of a Global Security in whole or in part may be registered, in the name
of any Person other than the Depositary for such Global Security or a nominee
thereof unless (i) such Depositary (A) has notified the Company that it is
unwilling or unable to continue as Depositary for such Global Security or (B)
has ceased to be a clearing agency registered as such under the Exchange Act
and, in either case, a successor Depository is not appointed by the Company
within 90 days, (ii) there shall have occurred and be continuing a Default or
Event of Default with respect to such Global Security or (iii) the Company
executes and delivers to the Trustee a Company Order stating that it elects to
cause the issuance of the Securities in certificated form and that all Global
Securities shall be exchanged in whole for Securities that are not Global
Securities (in which case such exchange shall be effected by the Trustee).
(c) If any Global Security is to be exchanged
for other Securities or canceled in whole, it shall be surrendered by or on
behalf of the Depositary or its nominee to the Trustee, as Security Registrar,
for exchange or cancellation as provided in this Article III. If any Global
Security is to be exchanged for other Securities or canceled in part, or if
another Security is to be exchanged in whole or in part for a beneficial
interest in any Global Security, then either (i) such Global Security shall be
so surrendered for exchange or cancellation as provided in this Article III or
(ii) the principal amount thereof shall be reduced or increased by an amount
equal to the portion thereof to be so exchanged or canceled, or equal to the
principal amount of such other Security to be exchanged for a beneficial
interest therein, as the case may be, by means of an appropriate adjustment made
on the records of the Trustee, as Security Registrar, whereupon the Trustee, in
accordance with the Applicable Procedures, shall instruct the Depositary or its
authorized representative to make a corresponding adjustment to its records.
Upon any such surrender or adjustment of a Global Security, the Trustee shall,
subject to Section 3.05(b) and as otherwise provided in this Article III,
authenticate and deliver any Securities issuable in exchange for such Global
Security (or any portion thereof) to or upon the order of, and registered in
such names as may be directed by, the Depositary or its authorized
representative. Upon the request of the Trustee in connection with the
occurrence of any of the events specified in the preceding paragraph, the
Company shall promptly make available to the Trustee a reasonable supply of
Securities that are not in the form of Global Securities. The Trustee shall be
entitled to rely upon any order, direction or request of the Depositary or its
authorized representative which is given or made pursuant to this Article III if
such order, direction or request is given or made in accordance with the
Applicable Procedures.
(d) Every Security authenticated and delivered
upon registration of transfer of, or in exchange for or in lieu of, a Global
Security or any portion thereof, whether pursuant to this Article III, Section
9.06, 10.14, 10.16 or 11.08 or otherwise, shall be authenticated and delivered
in the form of, and shall be, a Global Security, unless such Security is
registered in the name of a Person other than the Depositary for such Global
Security or a nominee thereof.
(e) The Depositary or its nominee, as registered
owner of a Global Security, shall be the Holder of such Global Security for all
purposes under this Indenture and the Securities, and owners of beneficial
interests in a Global Security shall hold such interests pursuant to the
Applicable Procedures. Accordingly, any such
45
owner's beneficial interest in a Global Security shall be shown only on, and the
transfer of such interest shall be effected only through, records maintained by
the Depositary or its nominee or its Agent Members.
Section 3.06 Registration; Registration of Transfer and
Exchange Generally; Certain Transfers and
Exchanges; Securities Act Legends.
(a) Registration; Registration of Transfer and
Exchange Generally. The Company shall cause to be kept at the Corporate Trust
Office a register (the register maintained in such office and in any other
office or agency designated pursuant to Section 10.02 being herein sometimes
collectively referred to as the "Security Register") in which, subject to such
reasonable regulations as it may prescribe, the Company shall provide for the
registration of Securities and of transfers and exchanges of Securities. The
Trustee is hereby appointed "Security Registrar" for the purpose of registering
Securities and transfers and exchanges of Securities as herein provided. Such
Security Register shall distinguish between Original Securities and Exchange
Securities.
Upon surrender for registration of transfer of any Security at
an office or agency of the Company designated pursuant to Section 10.02 for such
purpose, the Company shall execute, and the Trustee shall authenticate and
deliver, in the name of the designated transferee or transferees, one or more
new Securities of any authorized denominations, of a like aggregate principal
amount and bearing such restrictive legends as may be required by this
Indenture.
At the option of the Holder, Securities may be exchanged for
new Securities of any authorized denominations, of a like aggregate principal
amount and bearing such restrictive legends as may be required by this
Indenture, upon surrender of the Securities to be exchanged at such office or
agency. Whenever any Securities are so surrendered for exchange, the Company
shall execute, and the Trustee shall authenticate and deliver, the Securities
that the Holder making the exchange is entitled to receive.
All Securities issued upon any registration of transfer or
exchange of Securities shall be the valid Obligations of the Company, evidencing
the same debt, and (except for the differences between Original Securities and
Exchange Securities provided for herein) entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer
or exchange.
Every Security presented or surrendered for registration of
transfer or for exchange shall (if so required by the Company or the Trustee) be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed, by the
Holder thereof or his attorney duly authorized in writing.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charges or fees required by
law that may be imposed
46
in connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 3.04, 3.05, 3.06, 9.06, 10.14, 10.16 or 11.08
not involving any transfer.
The Company shall not be required (i) to issue, register the
transfer of or exchange (x) any Security during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of Securities selected for redemption under Section 11.04 and ending
at the close of business on the day of such mailing or (y) any Security tendered
by the Holder thereof (and not withdrawn) in connection with any Offer to
Purchase as provided in Sections 10.14 and 10.16, or (ii) to register the
transfer of or exchange any Security so selected for redemption, in whole or in
part, except the unredeemed portion of any Security being redeemed in part.
The provisions of the "Operating Procedures of the Euroclear
System," the "Terms and Conditions Governing Use of Euroclear," the "General
Terms and Conditions of Clearstream Banking" and the "Customer Handbook" of
Clearstream shall be applicable to transfers of beneficial interests in the
Regulation S Global Notes that are held through Euroclear or Clearstream.
(b) Certain Transfers and Exchanges.
Notwithstanding any other provision of this Indenture or the Securities,
transfers and exchanges of Securities and beneficial interests in a Global
Security of the kinds specified in this Section 3.06(b) shall be made only in
accordance with this Section 3.06(b).
(i) Exchanges Between the Restricted
Global Security and the Regulation S Global Security.
(A) Beneficial interests in
the Restricted Global Security may be exchanged for beneficial
interests in the Regulation S Global Security and vice versa only in
connection with a transfer of such interest. Such transfers are subject
to compliance with the certification requirements described below.
(B) A beneficial interest in
the Restricted Global Security may be transferred to a Person who takes
delivery in the form of an interest in the Regulation S Global
Security, whether before or after the expiration of the Distribution
Compliance Period, only upon receipt by the Trustee of a written
certification on behalf of the transferor to the effect that such
transfer is being made in accordance with Rule 904 of Regulation S or
(if available) Rule 144 under the Securities Act.
(C) Prior to the expiration of
the Distribution Compliance Period, a beneficial interest in the
Regulation S Global Security may be transferred to a person who takes
delivery in the form of an interest in the Restricted Global Security
only if such transfer is made pursuant to Rule 144A and the transferor
first delivers to the Trustee a written certification on behalf of the
transferor to the effect that such transfer is being made to a person
who the transferor reasonably believes is a qualified institutional
buyer acquiring for its
47
own account or the account of a qualified institutional buyer in a
transaction complying with Rule 144A and any applicable securities laws
of the states of the United States and other jurisdictions. After the
expiration of the Distribution Compliance Period, this certification
requirement shall no longer apply to such transfers.
(D) Any beneficial interest in
one of the Global Securities that is exchanged for an interest in the
other Global Security shall cease to be an interest in such Global
Security and shall become an interest in the other Global Security.
Accordingly, such interest shall thereafter be subject to all transfer
restrictions and other procedures applicable to beneficial interests in
such other Global Security for as long as it remains such an interest.
(E) Any exchange of a
beneficial interest in the Regulation S Global Security for a
beneficial interest in the Restricted Global Security or vice versa
will be effected in DTC by means of an instruction originated by the
Trustee through the DTC Deposit/Withdrawal at Custodian ("DWAC")
system.
(ii) Exchanges of Global Securities for
Certificated Securities. A beneficial interest in a Global Security may not be
exchanged for a Security in certificated form except as provided in Section
3.05(b). Any certificated Security issued in exchange for an interest in a
Global Security shall bear the legend restricting transfers that is borne by
such Global Security. Any such exchange shall be effected only through the DWAC
System, and an appropriate adjustment shall be made in the records of the
Security Register to reflect a decrease in the principal amount of the relevant
Global Security.
(c) Securities Act Legends. Rule 144A Securities
and their respective Successor Securities shall bear a Securities Act Legend,
and Regulation S Securities and their Successor Securities shall bear a
Securities Act Legend, subject to the following:
(i) subject to the following clauses of
this Section 3.06(c), a Security or any portion thereof which is exchanged, upon
transfer or otherwise, for a Global Security or any portion thereof shall bear
the Securities Act Legend borne by such Global Security while represented
thereby;
(ii) subject to the following clauses of
this Section 3.06(c), a new Security which is not a Global Security and is
issued in exchange for another Security (including a Global Security) or any
portion thereof, upon transfer or otherwise, shall bear the Securities Act
Legend borne by such other Security;
(iii) Registered Securities shall not
bear a Securities Act Legend;
(iv) in connection with a transfer or
exchange of Securities or beneficial interests therein, (1) a new Security not
bearing a Securities Act Legend may be issued in exchange for or in lieu of a
Security (other than a Global
48
Security) or any portion thereof bearing such a legend and (2) beneficial
interests in a Security bearing a Securities Act Legend may be exchanged for
beneficial interests in a Security not bearing such a legend, in each case, only
if:
(A) such transfer or exchange
is effected pursuant to an Exchange Offer in accordance with a
Registration Rights Agreement, and the recipient of such Securities or
beneficial interests certifies that it is not (1) a broker-dealer, (2)
a Person participating in a distribution of the Exchange Securities or
(3) a Person who is an affiliate (as defined in Rule 144) of the
Company;
(B) such transfer or exchange
is effected pursuant to a Shelf Registration Statement in accordance
with a Registration Rights Agreement;
(C) such transfer or exchange
is effected by a broker-dealer registered under the Exchange Act
pursuant to an Exchange Registration Statement;
(D) in the case of a transfer
of a Security or beneficial interest therein, (1) the transferor
certifies in writing to the Security Registrar that (I) the
restrictions on transfer contained in the Securities Act Legend are not
required to maintain compliance with the Securities Act, (II) such
transfer is being effected pursuant to (x) Rule 144, (y) Rule 903 or
904 of Regulation S or (z) another exemption from registration under
the Securities Act and (III) such transfer is in compliance with all
applicable state securities laws, and (2) if the Security Registrar so
requests (or if required by any Applicable Procedures), the Security
Registrar has received an Opinion of Counsel in form reasonably
acceptable to the Security Registrar that such transfer is in
compliance with the Securities Act, and the restrictions on transfer
contained in the Securities Act Legend are not required to maintain
compliance with the Securities Act; or
(E) in the case of an exchange
by an owner of a Security with a Securities Act Legend (or beneficial
interest therein) for a Security without a Securities Act Legend (or
beneficial interest therein), (1) such owner certifies in writing to
the Security Registrar that (I) the restrictions on transfer contained
in the Securities Act Legend are not required to maintain compliance
with the Securities Act, (II) the Security (or beneficial interest
therein) being received in the exchange by such owner is being acquired
for such owner's own account without transfer, (III) such exchange is
being effected in compliance with the Securities Act and with all
transfer restrictions applicable to the Security (or beneficial
interest therein) contained in this Indenture, and (IV) such transfer
is in compliance with all applicable state securities laws, and (2) if
the Security Registrar so requests (or if required by any Applicable
Procedures), the Security Registrar has received an Opinion of Counsel
in form reasonably acceptable to the Security Registrar that such
transfer is in compliance with the Securities Act, and the restrictions
on transfer contained in the Securities Act Legend are not required to
maintain compliance with the Securities Act; and
49
(v) notwithstanding the foregoing
provisions of this Section 3.06(c), a Successor Security of a Security that does
not bear a particular form of Securities Act Legend shall bear a Securities Act
Legend if the Company has reasonable cause to believe that such Successor
Security is a "restricted security" within the meaning of Rule 144, in which
case the Trustee, at the direction of the Company, shall authenticate and
deliver a new Security bearing a Securities Act Legend in exchange for such
Successor Security as provided in this Article III.
Section 3.07 Mutilated, Destroyed, Lost and Stolen Securities.
If any mutilated Security is surrendered to the Trustee, the
Company shall execute and the Trustee shall authenticate and deliver in exchange
therefor a new Security of like tenor and principal amount and bearing a number
not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i)
evidence to their satisfaction of the destruction, loss or theft of any Security
and (ii) such security or indemnity as may be required by them to save each of
them and any agent of either of them harmless, then, 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 its request the Trustee shall
authenticate and deliver, in lieu of any such destroyed, lost or stolen
Security, a new Security of like tenor and principal amount and 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 3.07,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charges or fees required by law that may be imposed in
relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.
Every new Security issued pursuant to this Section in lieu of
any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or
stolen Security is at any time enforceable by anyone, and shall be entitled to
all the 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 3.08 Payment of Interest; Interest Rights Preserved.
Interest or Liquidated Damages, if any, on any Security that
are payable, and are punctually paid or duly provided for, on any Interest
Payment Date shall be paid
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to the Person in whose name that Security (or one or more Predecessor
Securities) is registered at the close of business on the Regular Record Date
for such interest or Liquidated Damages, if any.
Any interest or Liquidated Damages on any Security that are
payable, but are not punctually paid or duly provided for, on any Interest
Payment Date (herein called "Defaulted Interest") shall forthwith cease to be
payable to the Holder on the relevant Regular Record Date by virtue of having
been held by such Holder, and such Defaulted Interest may 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) are registered at the close of business on a
date (a "Special Record Date") for the payment of such Defaulted Interest, which
shall be fixed in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each Security
and the date of the proposed payment, and at the same time the Company shall
deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the 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 provided in this
clause. Thereupon the Trustee shall fix a Special Record Date for the payment of
such Defaulted Interest which shall be not more than 15 days and not less than
10 days prior to the date of the 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
mailed, first-class postage prepaid, to each Holder at his address as it appears
in the Security Register, not less than 10 days prior to such Special Record
Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, 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 any
Defaulted Interest in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Securities may be listed,
and upon such notice as may be required by 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.
Subject to the foregoing provisions of this Section 3.08, 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
or Liquidated Damages, if any, accrued and unpaid, and to accrue interest and
Liquidated Damages, if any, which were carried by such other Security.
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Section 3.09 Persons Deemed Owners.
Prior to due presentment of a Security for registration of
transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name such Security is registered as the owner of
such security for the purpose of receiving payment of principal of (and premium,
if any) and (subject to Section 3.08) interest (and Liquidated Damages, if any),
on such Security and for all other purposes whatsoever, whether or not such
Security be overdue, and neither the Company, the Trustee nor any agent of the
Company or the Trustee shall be affected by notice to the contrary.
None of the Company, the Trustee, any Paying Agent or the
Security Registrar will have any responsibility or liability for (i) any aspect
of the records relating to or payments made on account of beneficial ownership
interests of a Global Security, (ii) for maintaining, supervising or reviewing
any records relating to such beneficial ownership interests or (iii) for any
other matters relating to the actions or practices of the Depository.
Section 3.10 Cancellation.
All Securities surrendered for payment, redemption,
registration of transfer or exchange or for credit against any Offer to
Purchase, pursuant to Section 10.14 or 10.16, shall, if surrendered to any
Person other than the Trustee, be delivered to the Trustee and shall be promptly
canceled by it. The Company may at any time deliver to the Trustee for
cancellation any Securities previously authenticated and delivered hereunder
which the Company may have acquired in any manner whatsoever, and all Securities
so delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section 3.10, except as expressly permitted by this Indenture. All
canceled Securities held by the Trustee shall (subject to the record-retention
requirements of the Exchange Act) be disposed of as directed by a Company Order.
Section 3.11 Computation of Interest.
Interest on the Securities shall be computed on the basis of a
360-day year of twelve 30-day months; provided, however, that any Liquidated
Damages on Original Securities shall be computed on the basis of a 7-day week,
and the number of days actually elapsed.
ARTICLE IV
SATISFACTION AND DISCHARGE
Section 4.01 Satisfaction and Discharge of Indenture.
This Indenture shall cease to be of further effect (except as
to any surviving rights of registration of transfer or exchange of Securities
herein expressly
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provided for), and the Trustee, on demand of and at the expense of the Company,
shall execute proper instruments acknowledging satisfaction and discharge of
this Indenture, when
(a) either
(i) all Securities theretofore
authenticated and delivered (other than (A) Securities which have been
destroyed, lost or stolen and which have been replaced or paid as provided in
Section 3.07 and (B) 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
10.03) have been delivered to the Trustee for cancellation; or
(ii) all such Securities not theretofore
delivered to the Trustee for cancellation have become due and payable,
and the Company, in the case of (i) or (ii) above, has deposited or caused to be
deposited with the Trustee as trust funds in trust for the purpose an amount
sufficient to pay and discharge the entire indebtedness on such Securities not
theretofore delivered to the Trustee for cancellation, for principal (and
premium, if any) and interest (and Liquidated Damages, if any), to the date of
such deposit (in the case of Securities which have become due and payable) or to
the Stated Maturity or Redemption Date, as the case may be;
(b) the Company has paid or caused to be paid
all other sums payable hereunder by the Company; and
(c) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that all
conditions precedent herein provided that relate to the satisfaction and
discharge of this Indenture have been satisfied.
Notwithstanding the satisfaction and discharge of this
Indenture pursuant to this Article IV, the obligations of the Company to the
Trustee under Section 6.07, the Obligations of the Trustee to any Authenticating
Agent under Section 6.14 and, if money has been deposited with the Trustee
pursuant to subclause (ii) of clause (a) of this Section, the obligations of the
Trustee under Section 4.02 and the last paragraph of Section 10.03 shall
survive.
Section 4.02 Application of Trust Money.
Subject to the provisions of the last paragraph of Section
10.03, all money deposited with the Trustee pursuant to Section 4.01 shall be
held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal (and
premium, if any) and interest (and Liquidated Damages, if any), for whose
payment such money has been deposited with the Trustee.
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ARTICLE V
REMEDIES
Section 5.01 Events of Default.
"Event of Default," wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
(a) failure to pay the principal of (or premium,
if any, on) any Security at its Maturity;
(b) failure to pay any interest or Liquidated
Damages, if any, upon any Security for a period of 30 consecutive days or more
after any such amounts become due and payable;
(c) failure to offer to purchase or to purchase
Securities, in the time periods required by this Indenture, required to be
purchased by the Company pursuant to Section 10.14 or 10.16;
(d) failure to perform or comply with, or breach
of, Article VIII;
(e) failure to perform, or breach of, any
covenant or agreement of the Company in this Indenture (other than a covenant or
agreement a default in whose performance or whose breach is elsewhere in this
Section 5.01 specifically addressed), and continuance of such failure or breach
for a period of 30 days after there has been given, by registered or certified
mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in aggregate principal amount of the Outstanding
Securities a written notice specifying such failure or breach and requiring it
to be remedied and stating that such notice is a "Notice of Default" hereunder;
(f) a 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 of its
Restricted Subsidiaries (or the payment of which is guaranteed by the Company or
any of its Restricted Subsidiaries) whether such Indebtedness or guarantee now
exists, or is created after the Issue Date, if that default: (A) is caused by a
failure to pay principal of, or interest or premium, if any, on such
Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a "Payment Default"); or (B) results
in the acceleration of such Indebtedness prior to its express maturity, and, in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a
Payment Default or the maturity of which has been so accelerated, aggregates
$20.0 million or more;
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(g) a final judgment or final judgments for the
payment of money are entered against the Company or any Restricted Subsidiary of
the Company in an aggregate amount in excess of $20.0 million, excluding amounts
covered by insurance, which judgments remain undischarged, unstayed or unbonded
for a period (during which execution shall not be effectively stayed) of 60 days
after the right to appeal has expired;
(h) the entry by a court having jurisdiction in
the premises of (A) a decree or order for relief in respect of the Company or
any Significant Subsidiary of the Company in an involuntary case or proceeding
under any applicable Federal or state bankruptcy, insolvency, reorganization or
other similar law (a "Bankruptcy Law") or (B) a decree or order adjudging the
Company or any such Significant Subsidiary bankrupt or insolvent, or approving
as properly filed a petition seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company or any such Significant Subsidiary
under any applicable Federal or state law, or appointing a custodian, receiver,
liquidator, assignee, trustee, sequestrator or other similar official of the
Company or any such Significant Subsidiary or of any substantial part of the
property of the Company or any such Significant Subsidiary, or ordering the
winding up or liquidation of the affairs of the Company or any such Significant
Subsidiary, and the continuance of any such decree or order for relief or any
such other decree or order unstayed and in effect for a period of 60 consecutive
days; or
(i) the commencement by the Company or any
Significant Subsidiary of a voluntary case or proceeding under any applicable
Bankruptcy Law or of any other case or proceeding to be adjudicated bankrupt or
insolvent, or the consent by the Company or any such Significant Subsidiary to
the entry of a decree or order for relief in respect of the Company or any
Significant Subsidiary in an involuntary case or proceeding under any applicable
Bankruptcy Law, or to the commencement of any bankruptcy or insolvency case or
proceeding against the Company or any Significant Subsidiary, or the filing by
the Company or any such Significant Subsidiary of a petition or answer or
consent seeking reorganization or relief under any applicable Federal or State
law, or the consent by the Company or any such Significant Subsidiary to the
filing of such petition or to the appointment of or taking possession by a
custodian, receiver, liquidator, assignee, trustee, sequestrator or similar
official of the Company or any Significant Subsidiary or of any substantial part
of the property of the Company or any Significant Subsidiary, or the making by
the Company or any Significant Subsidiary of the Company of an assignment for
the benefit of creditors, or the admission by the Company or any such
Significant Subsidiary in writing of its inability to pay its debts generally as
they become due, or the taking of corporate action by the Company or any such
Significant Subsidiary in furtherance of any such action.
Section 5.02 Acceleration of Maturity; Rescission and
Annulment.
If an Event of Default (other than an Event of Default
specified in Section 5.01(h) or (i)) 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 Outstanding Securities may declare the principal of all the
Securities to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by Holders), and upon any such declaration
such principal (and premium, if any), any
55
accrued interest and Liquidated Damages, if any, shall become immediately due
and payable. If an Event of Default specified in Section 5.01(h) or (i) occurs,
the principal of (and premium, if any), any accrued interest and Liquidated
Damages, if any, on the Securities then Outstanding shall ipso facto become
immediately due and payable without any declaration or other Act on the part of
the Trustee or any Holder.
At any time after such a declaration of acceleration has been
made and before a judgment or decree based on acceleration for payment of the
money due has been obtained by the Trustee as hereinafter provided in this
Article V, the Holders of a majority in aggregate principal amount of the
Outstanding Securities, by written notice to the Company and the Trustee, may
rescind and annul such declaration of acceleration and its consequences if:
(a) the Company has paid or deposited with the
Trustee a sum sufficient to pay:
(i) all Defaulted Interest on all
Securities;
(ii) the principal of (and premium, if
any, on) any Securities which have become due otherwise than by such declaration
of acceleration (including any Securities required to have been purchased on the
Purchase Date pursuant to an Offer to Purchase made by the Company) and, to the
extent that payment of such interest is lawful, interest thereon at the rate
provided by the Securities;
(iii) to the extent that payment of such
interest is lawful, interest upon Defaulted Interest, at the rate provided by
the Securities; and
(iv) all sums paid or advanced by the
Trustee hereunder and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel;
and
(b) all Defaults and Events of Default, other
than the non-payment of the principal of Securities which have become due solely
by such declaration of acceleration, have been cured or waived as provided in
Section 5.13.
No such rescission shall affect any subsequent default or impair any right
consequent thereon.
In the case of any Event of Default occurring by reason of any
willful action or inaction taken or not taken by or on behalf of the Company
with the intention of avoiding payment of the premium that the Company would
have had to pay if it then had elected to redeem the Securities pursuant to the
optional redemption provisions of this Indenture, an equivalent premium will
also become and be immediately due and payable to the extent permitted by law
upon the acceleration of the Securities. If an Event of Default occurs prior to
August 1, 2007 by reason of any willful action or inaction taken or not taken by
or on behalf of the Company with the intention of avoiding the prohibition
56
on redemption of the Securities prior to August 1, 2007, then, upon acceleration
of the Securities, an additional premium shall also become and be immediately
due and payable at an amount, for each of the years beginning August 1 of each
of the years set forth below, as set forth below (expressed as a percentage of
the principal amount of each Security):
YEAR PERCENTAGE
---- ----------
2003........................................ 14.813%
2004........................................ 12.344%
2005........................................ 9.875%
2006........................................ 7.406%
Section 5.03 Collection of Indebtedness and
Suits for Enforcement by Trustee.
If an Event of Default specified in Section 5.01(a), (b) or
(c) occurs and is continuing, the Trustee is authorized to recover judgment in
its own name and as Trustee of an express trust against the Company for the
whole amount of principal of, premium and Liquidated Damages, if any, and
interest remaining unpaid on the Notes and interest on overdue principal and, to
the extent lawful, interest and such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel.
Section 5.04 Trustee May File Proofs of Claim.
In case of any judicial proceeding relative to the Company (or
any other obligor upon the Securities), its property or its creditors, the
Trustee shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. 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 6.07.
No provision of this Indenture shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement adjustment or composition
affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of
57
the Holders, vote for the election of a trustee in bankruptcy or similar
official and may be a member of the creditors committee.
Section 5.05 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 without the possession
of any of the Securities or the production thereof in any proceeding relating
thereto, and any such proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall,
after provision for the payment of the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
Section 5.06 Application of Money Collected.
Any money collected by the Trustee pursuant to this Article
shall be applied 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
(or premium, if any) or interest (or Liquidated Damages, 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 payment of all amounts due the Trustee under
Section 6.07;
SECOND: To the payment of the amounts then due and unpaid for
principal of (and premium, if any) and interest (and Liquidated Damages, if
any), on the Securities in respect of which or for the benefit of which such
money has been collected, ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for principal (and
premium, if any) and interest (and Liquidated Damages, if any), respectively;
and
THIRD: To the Company or to such party as a court of competent
jurisdiction shall direct.
Section 5.07 Limitation on Suits.
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) such Holder has previously given written
notice to the Trustee of an Event of Default;
(b) the Holders of not less than 25% in
aggregate principal amount of the Outstanding Securities shall have made written
request to the Trustee to
58
institute proceedings in respect of such Event of Default in its own name as
Trustee hereunder;
(c) if requested by the Trustee, such Holder or
Holders have offered to the Trustee reasonable indemnity against the costs,
expenses and liabilities to be incurred in compliance with such request; and
(d) no direction inconsistent with such written
request has been given to the Trustee during such 60-day period by the Holders
of a majority in aggregate principal amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever, by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders,
or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.
Section 5.08 Unconditional Right of Holders to Receive
Principal, Premium, Interest and Liquidated
Damages.
Notwithstanding any other provision in this Indenture, the
Holder of any Security shall have the right, which is absolute and
unconditional, to receive payment of the principal of (and premium, if any),
(subject to Section 3.08) interest and Liquidated Damages, if any, on such
Security on the respective Stated Maturities expressed in such Security (or, in
the case of redemption, on the Redemption Date or, in the case of an Offer to
Purchase made by the Company and required to be accepted as to such Security, on
the Purchase Date) and to institute suit for the enforcement of any such
payment, on or after such respective dates and such rights shall not be impaired
without the consent of such Holder.
Section 5.09 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 5.10 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 3.07, no right or remedy herein conferred upon or reserved
to the Trustee or to the Holders is intended to be exclusive of any other right
or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and
59
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder,
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
Section 5.11 Delay or Omission Not Waiver.
No delay or omission of the Trustee or of any Holder of any
Security to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. Every right and remedy given by this
Article V or by law to the Trustee or to the Holders may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.
Section 5.12 Control by Holders.
The Holders of a majority in aggregate principal amount of the
Outstanding Securities shall have the right to direct the time, method and place
of conducting any proceeding for any remedy available to the Trustee or
exercising any trust or power conferred on the Trustee; provided that:
(a) such direction shall not be in conflict with
any rule of law or with this Indenture;
(b) the Trustee may take any other action deemed
proper by the Trustee in furtherance of or consistent with, such direction; and
(c) subject to the provisions of Section 6.01,
the Trustee shall have the right to decline to follow any such direction if the
Trustee, being advised by counsel, determines that the action or proceeding so
directed may not lawfully be taken or if the Trustee in good faith determines
that the action or proceedings so directed might involve the Trustee in personal
liability or if the Trustee in good faith shall so determine that the actions or
forbearances specified in or pursuant to such direction shall be unduly
prejudicial to the interest of Holders of the Securities not joining in the
giving of said direction, it being understood that the Trustee shall have no
duty to ascertain whether or not such actions or forbearances are unduly
prejudicial to such Holders.
Section 5.13 Waiver of Past Defaults.
The Holders of not less than a majority in aggregate principal
amount of the Outstanding Securities may on behalf of the Holders of all the
Securities waive any past default hereunder and its consequences, except a
default:
(a) in the payment of the principal of (or
premium, if any) or interest (or Liquidated Damages, if any), on any Security
(including any Security which is required to have been purchased pursuant to an
Offer to Purchase which has been made by the Company); or
60
(b) in respect of a covenant or provision hereof
which under Article IX cannot be modified or amended without the consent of the
Holder of each Outstanding Security 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; but no such waiver shall extend to any
subsequent or other default or impair any right consequent thereon.
Section 5.14 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,
suffered or omitted by it as Trustee, a court may require any party litigant in
such suit to file an undertaking to pay the costs of such suit, and may assess
costs against any such party litigant, in the manner and to the extent provided
in the Trust Indenture Act. This Section 5.14 does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 5.08 or a suit by the Holders of
more than 10% in aggregate principal amount of the Securities.
Section 5.15 Waiver of 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 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.
ARTICLE VI
THE TRUSTEE
Section 6.01 Certain Duties and Responsibilities.
(a) The duties and responsibilities of the
Trustee shall be as provided in this Indenture and by the Trust Indenture Act.
Notwithstanding the foregoing, no provision of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for
believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it. If a Default or an Event of
Default has occurred and is continuing, the Trustee shall exercise the rights
and powers vested in it by this Indenture and use the same degree of care and
skill in their exercise as a prudent person would exercise or use under the
circumstances in the conduct of such person's own affairs. Whether or not
therein expressly so provided, every provision of this
61
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
6.01.
(b) The Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its
own willful misconduct, except that:
(i) this Section 6.01(b) does not limit
the effect of Section 6.03;
(ii) the Trustee shall not be liable for
any error of judgment made in good faith by a trust officer unless it is proved
that the Trustee was negligent in ascertaining the pertinent facts; and
(iii) the Trustee shall not be liable
with respect to any action it takes or omits to take in good faith in accordance
with a direction received by it pursuant to Section 5.12.
Section 6.02 Notice of Defaults.
The Trustee shall give the Holders notice of any Default
hereunder within 90 days after the occurrence thereof as and to the extent
provided by the Trust Indenture Act. Except in the case of a Default or an Event
of Default in payment of principal of (and premium, if any, on) or interest (or
Liquidated Damages, if any), on any Securities, the Trustee may withhold the
notice to the Holders if and so long as a committee of its trust officers in
good faith determines that withholding such notice is in the interests of the
Holders.
Section 6.03 Certain Rights of Trustee.
Subject to the provisions of Section 6.01:
(a) except during the continuance of a Default
or an Event of Default the Trustee shall undertake to perform such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee;
(b) except during the continuance of a Default
or an Event of Default, in the absence of bad faith in its part, the Trustee may
rely and shall be protected in acting or refraining from acting upon any
resolution, certificate, Officers' Certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, note, other
evidence of Indebtedness or other paper or document believed by it to be genuine
and to have been signed or presented by the proper party or parties; provided
that the Trustee shall examine all Officers' Certificates, opinions and other
documents produced pursuant to the requirements of this Indenture to determine
whether or not they conform to the requirements of this Indenture;
(c) any request or direction of the Company
mentioned herein shall be sufficiently evidenced by a Company Request or Company
Order and any
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resolution of the Board of Directors of the Company may be sufficiently
evidenced by a Board Resolution;
(d) 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, rely upon an Officers' Certificate; provided
that the Trustee shall examine such Officer's Certificate to determine whether
or not it conforms to the requirements of this Indenture;
(e) before the Trustee acts or refrains from
acting, the Trustee may consult with counsel and the written 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;
(f) the Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Indenture at the
request or direction of any of the Holders pursuant to this Indenture, unless
such Holders shall have offered to the Trustee reasonable security or indemnity
against the costs, expenses and liabilities which might be incurred by it in
compliance with such request or direction;
(g) the Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document unless requested to do so by the Holders of not less than a 10% of the
aggregate principal amount of the Securities then Outstanding, 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;
(h) the Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with due
care by it hereunder;
(i) the Trustee shall not be required to give
any bond or surety in respect of the performance of its powers and duties
hereunder;
(j) the Trustee shall not be bound to ascertain
or inquire as to the performance or observance of any covenants, conditions or
agreements on the part of the Company, except as otherwise provided herein, but
the Trustee may require of the Company full information and advice as to the
performance of the covenants, conditions and agreements contained herein and
shall be entitled in connection herewith to examine the books, records and
premises of the Company; and
(k) except for (i) a default under Sections
5.01(a), (b) or (c) hereof, or (ii) any other Default or Event of Default of
which the Trustee has "actual knowledge" the Trustee shall not be deemed to have
notice of any Default or Event of
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Default unless specifically notified in writing of such Default or Event of
Default. As used herein, the term "actual knowledge" means the actual fact or
statement of knowing, without any duty to make any investigation with regard
thereto.
Section 6.04 Not Responsible for Recitals or Issuance of
Securities.
The recitals contained herein and in the Securities, except
the Trustee's certificates of authentication, shall be taken as the statements
of the Company, and the Trustee assumes no responsibility for their correctness.
The Trustee makes no representations as to the validity or sufficiency of this
Indenture or of the Securities. The Trustee shall not be accountable for the use
or application by the Company of Securities or the proceeds thereof.
Section 6.05 May Hold Securities.
The Trustee, any Authenticating Agent, any Paying Agent, any
Security 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 6.08 and 6.13, may otherwise deal with the Company with the same rights
it would have if it were not Trustee, Authenticating Agent, Paying Agent,
Security Registrar or such other agent.
Section 6.06 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 with the Company.
Section 6.07 Compensation and Reimbursement.
The Company agrees:
(a) to pay to the Trustee from time to time, and
the Trustee shall be entitled to, reasonable compensation for all services
rendered by it hereunder (which compensation shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust);
(b) except as otherwise expressly provided
herein, to reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture, including costs of collection (including the
reasonable compensation and the expenses and disbursements of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or willful misconduct; and
(c) to indemnify the Trustee for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or
willful misconduct on its part, arising out of or in connection with the
acceptance or administration of this trust, including the costs and expenses of
defending itself against or investigating any
64
claim or liability in connection with the exercise or performance of any of its
powers or duties hereunder.
The obligations of the Company under this Section 6.07 shall
survive the satisfaction and discharge of this Indenture. As security for the
performance of such obligations of the Company, the Trustee shall have a claim
prior to the Securities upon all property and funds held or collected by the
Trustee as such, except funds held in trust for the payment of principal of (and
premium, if any) and interest (and Liquidated Damages, if any), on particular
Securities. When the Trustee incurs expenses or renders services in connection
with an Event of Default specified in Article V hereof, the expenses (including
reasonable fees and expenses of its counsel) and the compensation for the
services in connection therewith are intended to constitute expense of
administration under any applicable bankruptcy law.
Section 6.08 Disqualification; Conflicting Interests.
If the Trustee has or acquires a "conflicting interest" within
the meaning of the Trust Indenture Act, the Trustee shall either eliminate such
conflicting interest or resign, to the extent and in the manner provided by, and
subject to the provisions of, the Trust Indenture Act and this Indenture.
Neither the Company nor any Affiliate of the Company shall serve as the Trustee.
The Trustee is subject to Section 310(b) of the Trust Indenture Act.
Section 6.09 Corporate Trustee Required; Eligibility.
There shall at all times be a Trustee hereunder which shall be
a Person that is eligible pursuant to the Trust Indenture Act (including,
without limitation, Sections 310(a)(1), (2) and (5) thereof) to act as such and
has (or in the case of a Person included in a bank holding company system, the
related bank holding company shall have) a combined capital and surplus of at
least $100.0 million and its Corporate Trust Office in New York City or
Minneapolis. If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section 6.09, the combined capital and
surplus of such Person 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 ceases to be eligible in accordance with the provisions of this
Section 6.09, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article VI.
Section 6.10 Resignation and Removal; Appointment of
Successor.
(a) No resignation or removal of the Trustee and
no appointment of a successor Trustee pursuant to this Article VI shall become
effective until the acceptance of appointment by the successor Trustee under
Section 6.11.
(b) The Trustee may resign at any time by giving
written notice thereof to the Company. If an instrument of acceptance by a
successor Trustee shall not have been delivered to the Trustee within 30 days
after the giving of such notice of
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resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee.
(c) The Trustee may be removed at any time by
Act of the Holders of a majority in principal amount of the Outstanding
Securities, delivered to the Trustee and to the Company.
(d) If at any time:
(i) the Trustee fails to comply with
Section 6.08 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 (6) months, or
(ii) the Trustee ceases to be eligible
under Section 6.09 and fails to resign after written request therefor by the
Company or by any Holder who has been a bona fide Holder of a Security for at
least six (6) months, or
(iii) the Trustee becomes incapable of
acting or is adjudged bankrupt or insolvent or a receiver of the Trustee or of
its property is appointed or any public officer takes charge or control of the
Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation,
then, in any such case, (A) the Company by a Board Resolution may remove the
Trustee, or (B) subject to Section 5.14, any Holder who has been a bona fide
Holder of a Security for at least six (6) months may, on behalf of himself and
all others similarly situated, petition any court of competent jurisdiction for
the removal of the Trustee and the appointment of a successor Trustee.
(e) If the Trustee resigns, is removed or
becomes incapable of acting, or if a vacancy occurs in the office of Trustee for
any cause, the Company, by a Board Resolution, shall promptly appoint a
successor Trustee. If, within one year after such resignation, removal or
incapability, or the occurrence of such vacancy, a successor Trustee is
appointed by Act of 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, become the successor Trustee and supersede the successor Trustee
appointed by the Company. If no successor Trustee has been so appointed by the
Company or the Holders and accepted appointment in the manner hereinafter
provided, any Holder who has been a bona fide Holder of a Security for at least
six (6) months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor
Trustee.
(f) The Company shall give notice of each
resignation and each removal of the Trustee and each appointment of a successor
Trustee to all Holders in the manner provided in Section 1.06. Each notice shall
include the name of the successor Trustee and the address of its Corporate Trust
Office.
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Section 6.11 Acceptance of Appointment by Successor.
Every successor Trustee appointed hereunder shall execute,
acknowledge and deliver to the Company and to the retiring Trustee an instrument
accepting such appointment, and thereupon the resignation or removal of the
retiring trustee shall become effective and such successor Trustee, without any
further act, deed or conveyance, shall become vested with all the rights,
powers, trusts and duties of the retiring Trustee; but, on 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. Upon request of any such successor
Trustee, the Company shall execute any and all instruments for more fully and
certainly vesting in and confirming to such successor Trustee all such rights,
powers and trusts.
No successor Trustee shall accept its appointment unless at
the time of such acceptance such successor Trustee is qualified and eligible
under this Article VI.
Section 6.12 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 VI, 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 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 6.13 Preferential Collection of Claims Against
Company.
If and when the Trustee shall be or become a creditor,
directly or indirectly, secured or unsecured, of the Company (or any other
obligor upon the Securities), the Trustee shall be subject to the provisions of
the Trust Indenture Act regarding the collection of claims against the Company
(or any such other obligor). The Trustee is subject to Section 311(a) of the
Trust Indenture Act, excluding any creditor relationship listed in Section
311(b) of the Trust Indenture Act. A Trustee who has resigned or been replaced
shall be subject to Section 311(a) of the Trust Indenture Act to the extent
indicated therein.
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Section 6.14 Appointment of Authenticating Agent.
The Trustee may appoint an Authenticating Agent or Agents
which shall be authorized to act on behalf of the Trustee to authenticate
Securities issued upon original issue and upon exchange, registration of
transfer or partial redemption or pursuant to Section 3.07, 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. 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 and shall at all
times be a corporation organized and doing business under the laws of the United
States of America, any state thereof or the District of Columbia, authorized
under such laws to act as Authenticating Agent, having (or in the case of a
corporation included in a bank holding company system, the related bank holding
company having) a combined capital and surplus of not less than $100.0 million
and subject to supervision or examination by Federal or state authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant
to law or to the requirements of said supervising or examining authority, then
for the purposes of this Section, the combined capital and surplus of such
Authenticating Agent 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 an
Authenticating Agent ceases to be eligible in accordance with the provisions of
this Section 6.14, such Authenticating Agent shall resign immediately in the
manner and with the effect specified in this Section 6.14.
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 is 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 6.14, without the execution or filing of any paper
or any further act on the part of the Trustee or the Authenticating Agent.
An Authenticating Agent may resign at any time by giving
written notice thereof to the Trustee and to the Company. The Trustee may at any
time terminate the agency of an Authenticating Agent by giving written notice
thereof to such Authenticating Agent and to the Company. Upon receiving such a
notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent ceases to be eligible in accordance with the provisions of
this Section 6.14, the Trustee may appoint a successor Authenticating Agent
which shall be acceptable to the Company and shall mail written notice of such
appointment by first-class mail, postage prepaid, to all Holders as their names
and addresses appear in the Security Register. 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
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named as an Authenticating Agent. No successor Authenticating Agent shall be
appointed unless it is eligible under the provisions of this Section 6.14.
The Trustee agrees to pay to each Authenticating Agent from
time to time reasonable compensation for its services under this Section 6.14,
and the Trustee shall be entitled to be reimbursed for such payments, subject to
the provisions of Section 6.07.
If an appointment is made pursuant to this Section 6.14, the
Securities may have endorsed thereon, in addition to the Trustee's certificate
of authentication, an alternative certificate of authentication in the following
form:
This is one of the Securities described in the
within-mentioned Indenture.
U.S. Bank National Association,
As Trustee
By:_________________________________________
As Authenticating Agent
By:_________________________________________
Authorized Officer
ARTICLE VII
HOLDERS' LISTS AND REPORTS
BY TRUSTEE AND COMPANY
Section 7.01 Company to Furnish Trustee
Names and Addresses of Holders.
The Company shall furnish or cause to be furnished to the
Trustee
(a) semi-annually, not more than 15 days after
each Regular Record Date, a list, in such form as the Trustee may reasonably
require, of the names and addresses of the Holders as of such Regular Record
Date, and
(b) at such other times as the Trustee may
request in writing, within 30 days after the receipt by the Company of any such
request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished;
excluding from any such list names and addresses received by the Trustee in its
capacity as Security Registrar.
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Section 7.02 Preservation of Information; Communications to
Holders.
(a) The Trustee shall preserve, in as current a
form as is reasonably practicable, the names and addresses of Holders contained
in the most recent list furnished to the Trustee as provided in Section 7.01 and
the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided
in Section 7.01 upon receipt of a new list so furnished.
(b) The rights of Holders to communicate with
other Holders with respect to their rights under this Indenture or under the
Securities and the corresponding rights and duties of the Trustee, shall be as
provided by the Trust Indenture Act.
(c) Every Holder of Securities, by receiving and
holding the same, agrees with the Company and the Trustee that neither the
Company nor the Trustee nor any agent of either of them shall be held
accountable by reason of any disclosure of information as to the names and
addresses of Holders made pursuant to the Trust Indenture Act.
Section 7.03 Reports by Trustee.
(a) The Trustee shall transmit to the Holders
such reports required pursuant to the Trust Indenture Act as promptly as
practicable after each May 15 and beginning on May 15, 2004, or at such other
time as may be provided in the Trust Indenture Act, in the manner provided in
the Trust Indenture Act.
(b) A copy of each such report shall, at the
time of such transmission to Holders, be filed by the Trustee with each stock
exchange upon which the Securities are listed, with the Commission and with the
Company. The Company will notify the Trustee when the Securities are listed on
any stock exchange.
Section 7.04 Reports by Company.
(a) The Company shall file with the Commission,
and provide to the Trustee and the Holders, annual reports and such other
information, documents and other reports, and such summaries thereof, as may be
required pursuant to the Trust Indenture Act at the times and in the manner
provided pursuant to the Trust Indenture Act.
(b) Whether or not required by the rules and
regulations of the Exchange Act or the Commission, so long as any of the
Securities remain outstanding, the Company shall:
(i) furnish to the Holders and the
Trustee
(A) all quarterly and annual
financial information that would be required to be contained in a
filing with the Commission on Form 10-Q and Form 10-K if the Company
were required to file
70
such reports, including a "Management's Discussion and Analysis of
Financial Condition and Results of Operations" and, with respect to the
annual information only, a report on the annual financial statements by
the Company's certified independent accountants; and
(B) all current reports that
would be required to be filed with the Commission on Form 8-K of the
Exchange Act if the Company were required to file such reports; and
(ii) file a copy of all such information
and reports referred to in (i)(A) and (i)(B) above with the Commission for
public availability within the time periods specified in the Commission's rules
and regulations, unless the Commission does not accept such filings, and make
such information and reports available to securities analysts and prospective
investors upon request.
(c) If the Company at any time is not subject to
the reporting requirements of Section 13 or Section 15(d) of the Exchange Act
(or any successor provisions) at any time while any Security constitutes a
"restricted security" within the meaning of Rule 144, the Company shall take all
actions necessary to permit resales of the Original Securities (or any Successor
Securities) to be made pursuant to Rule 144A, including furnishing to any holder
of such a Security (or a beneficial interest therein), or to any prospective
purchaser designated by such holder, upon the request of such holder, such
financial and other information as may be required to be delivered under
paragraph (d)(4) of Rule 144A to permit such resales and such information that
would be required if the Company were subject to the informational requirements
of Sections 13 or 15(d) of the Exchange Act.
ARTICLE VIII
CONSOLIDATION, MERGER,
CONVEYANCE, TRANSFER OR LEASE
Section 8.01 Company May Consolidate, Etc. Only on Certain
Terms.
The Company shall not, directly or indirectly, consolidate
with or merge into any other Person, shall not permit any other Person to
consolidate with or merge into the Company, and shall not, directly or
indirectly, transfer, sell, convey, lease or otherwise dispose of all or
substantially all of its properties and assets to any Person (in one transaction
or a series of related transactions); unless:
(a) immediately after giving effect to such
transaction and treating any Indebtedness Incurred by the Company or a
Restricted Subsidiary as a result of such transaction as having been Incurred by
the Company or such Restricted Subsidiary at the time of such transaction, no
Default or Event of Default shall have occurred and be continuing;
(b) (i) the Company is the surviving entity or
(ii) the Person formed by such consolidation or into which the Company is merged
or the Person which acquires by transfer, conveyance, sale, lease or other
disposition all or substantially all of
71
the properties and assets of the Company as an entirety (a "Successor Company")
is a corporation that is organized and validly existing under the laws of the
United States of America, any state thereof or the District of Columbia and, by
an indenture supplemental hereto executed and delivered to the Trustee, in form
satisfactory to the Trustee, expressly assumes the due and punctual payment of
the principal of (and premium, if any) and interest on all the Securities and
the performance of every covenant of this Indenture on the part of the Company
to be performed or observed;
(c) immediately after giving effect to such
transaction, the Consolidated Net Worth of the Company or, if applicable, the
Successor Company shall be not less than 100% of the Consolidated Net Worth of
the Company immediately prior to such transaction;
(d) (1) immediately after giving effect to such
transaction, and treating any Indebtedness Incurred by the Company or any
Restricted Subsidiary as a result of such transaction as having been Incurred at
the time of such transaction, the Company or the Successor Company would be
permitted to Incur at least $1.00 of additional Indebtedness pursuant to the
first paragraph of Section 10.08 or (2) the Operating Cash Flow Ratio for the
Company, or its permitted successor or transferee, will, on the date of such
transaction after giving pro forma effect thereto and any related financing
transactions as if the same had occurred at the beginning of the Reference
Period, not be greater than such Operating Cash Flow Ratio for the Company
immediately prior to such transaction; and
(e) the Company has delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer, lease or disposition and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture, complies with this Article VIII and that all conditions
precedent herein provided for relating to such transaction have been complied
with, and, with respect to such Officers' Certificate, setting forth the manner
of determination of the Company's (or the Successor Company's, as the case may
be) Consolidated Net Worth in accordance with clause (c) of this Section 8.01
and ability to Incur Indebtedness in accordance with clause (d) of this Section
8.01, except as provided below.
Notwithstanding the foregoing, the Company may do the
following without complying with clause (d) above: (1) any Change of Domicile
transaction or (2) the creation of, or the merger, amalgamation, combination or
consolidation of the Company with or into a Wholly Owned Restricted Subsidiary
for the purpose of forming, a holding company whose only substantial asset is
the Capital Stock of the Company, with any such holding company structure being
disregarded.
Section 8.02 Successor Substituted.
Upon any consolidation of the Company with, or merger of the
Company into, any other Person or any transfer, conveyance, sale, lease or other
disposition of all or substantially all of the properties and assets of the
Company as an entirety in accordance with Section 8.01, the successor Company
shall succeed to, and be substituted
72
for, and may exercise every right and power of, the Company under this Indenture
with the same effect as if such successor Person had been named as the Company
herein, and thereafter, except in the case of a lease, the predecessor Person
shall be relieved of all obligations and covenants under this Indenture and the
Securities.
ARTICLE IX
SUPPLEMENTAL INDENTURES
Section 9.01 Supplemental Indentures Without Consent of
Holders.
Without the consent of any Holders, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to
time, may enter into one or more indentures supplemental hereto, in form
satisfactory to the Trustee, for any of the following purposes:
(1) to cure any ambiguity, defect or inconsistency;
(2) to provide for uncertificated Securities in addition
to or in place of Certificated Securities;
(3) to provide for the assumption of the Company's
obligations to Holders of Securities in the case of a consolidation,
amalgamation, combination or merger or sale of all or substantially all of the
Company's assets in accordance with the provisions described in Article VIII;
(4) to make any change that would provide any additional
rights or benefits to the Holders of Securities or that does not adversely
affect the legal rights under this Indenture of any such Holder;
(5) to comply with requirements of the Commission in
order to effect or maintain the qualification of this Indenture under the Trust
Indenture Act;
(6) to evidence and provide for the acceptance of
appointment of a successor Trustee; or
(7) to provide for the issuance of Additional Securities
in accordance with this Indenture.
Section 9.02 Supplemental Indentures with Consent of Holders.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Securities, by Act of said Holders delivered
to the Company and the Trustee, the Company, when authorized by a Board
Resolution, and the Trustee may enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to or changing in
any manner or eliminating any of the provisions of this Indenture or of
modifying in any manner the rights of the Holders under this Indenture;
73
provided, however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Security affected thereby:
(a) change the Stated Maturity of the principal
of, or any installment of interest or Liquidated Damages, if any, on, any
Security;
(b) reduce the principal amount of, or premium,
if any, or interest or Liquidated Damages, if any, on any Security;
(c) change the place or currency of payment of
principal of, or premium, if any, or interest or Liquidated Damages, if any, on
any Security;
(d) impair the right to institute suit for the
enforcement of any payment on or with respect to any Security, except a
rescission of acceleration of the Securities pursuant to Section 5.02;
(e) reduce the percentage in aggregate principal
amount of the Outstanding Securities, the consent of whose Holders is required
to amend this Indenture or for any such supplemental indenture, or the consent
of whose Holders is required for any waiver provided for in this Indenture;
(f) modify any of the provisions of this Section
9.02, Section 5.13 or Section 10.18, except to increase any percentage specified
in any such provision or to provide that additional provisions of this Indenture
cannot be modified or waived without the consent of the Holder of each
Outstanding Security affected thereby;
(g) modify or add any provision of this
Indenture affecting the ranking of the Securities in a manner that adversely
affects the Holders of the Securities; or
(h) following the mailing of an Offer to
Purchase Securities pursuant to Sections 10.14 or 10.16, modify the provisions
of this Indenture with respect to such Offer to Purchase in a manner adverse to
such Holder; or
(i) alter the Redemption Price specified in the
form of Security set forth in Article II or waive a redemption payment with
respect to any Security thereunder.
The modification of a definition in this Indenture, to the
extent such modification affects the interpretation of any provision whose
modification is restricted as provided in clauses (a) through (i) above, shall
be deemed to be a modification of such provision.
It shall not be necessary for any Act of Holders under this
Section 9.02 to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance
thereof.
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Section 9.03 Execution of Supplemental Indentures.
In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article IX or the modifications
thereby of the trusts created by this Indenture, the Trustee shall be entitled
to receive, and (subject to Section 6.01) shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental
indenture is authorized pursuant to, is permitted by, and that all conditions
precedent have been met under, 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 9.04 Effect of Supplemental Indentures.
Upon the execution of any supplemental indenture under this
Article IX, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes and
every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.
Section 9.05 Conformity with Trust Indenture Act.
Every supplemental indenture executed pursuant to this Article
IX shall conform to the requirements of the Trust Indenture Act.
Section 9.06 Reference in Securities to Supplemental
Indentures.
Securities authenticated and delivered after the execution of
any supplemental indenture pursuant to this Article IX may bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental
indenture. If the Company shall so determine, new Securities so modified as to
conform, in the opinion of the Trustee and the Company, to any such supplemental
indenture may be prepared and executed by the Company and authenticated and
delivered by the Trustee in exchange for Outstanding Securities.
Section 9.07 Notice of Supplemental Indenture.
Promptly after the execution by the Company and the Trustee of
any supplemental indenture pursuant to Section 9.02, the Company shall transmit
to the Holders a notice setting forth the substance of such supplemental
indenture.
ARTICLE X
COVENANTS
Section 10.01 Payment of Principal, Premium and Interest.
The Company shall duly and punctually pay the principal of
(and premium, if any), and interest (and Liquidated Damages, if any) on the
Securities in
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accordance with the terms of the Securities, this Indenture and the Registration
Rights Agreement.
The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at the
rate equal to the then applicable interest rate on the Securities, to the extent
lawful. The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on Defaulted Interest (without regard to
any applicable grace period) at the same rate, to the extent lawful.
Section 10.02 Maintenance of Office or Agency.
The Company shall maintain in the Borough of Manhattan, New
York City, an office or agency where Securities may be presented or surrendered
for payment, where 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 Company shall give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency. If at any time the Company fails to maintain any such
required office or agency or fails 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 (in or outside the Borough of Manhattan, New York
City) where the Securities may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligation to maintain an office or agency in the Borough of Manhattan,
New York City, for such purposes. The Company shall give prompt written notice
to the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.
Section 10.03 Money for Security Payments to be Held in Trust.
If the Company at any time acts as its own Paying Agent, it
shall, on or before each due date of the principal of (or premium, if any) or
interest (or Liquidated Damages, if any) on any of the Securities segregate and
hold in trust for the benefit of the Persons entitled thereto a sum sufficient
to pay such amounts so becoming due until such sums shall be paid to such
Persons or otherwise disposed of as herein provided and shall promptly notify
the Trustee of its action or failure so to act. The Company hereby appoints the
Trustee as the Paying Agent as of the Issue Date.
Whenever the Company has one or more Paying Agents, other than
the Company, it shall, prior to each due date of the principal of (and premium,
if any), or interest (and Liquidated Damages, if any) on any Securities, deposit
to such Paying Agent a sum sufficient to pay such amounts so becoming due, such
sum to be held in trust for
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the benefit of the Persons entitled to such principal, premium, interest or
Liquidated Damages, and (unless such Paying Agent is the Trustee) the Company
shall promptly notify the Trustee of its action or failure so to act.
The Company shall cause each Paying Agent other than the
Trustee to execute and deliver to the Trustee an instrument in which such Paying
Agent agrees with the Trustee, subject to the provisions of this Section 10.03,
that such Paying Agent shall:
(a) hold all sums held by it for the payment of
the principal of (or premium, if any) or interest (or Liquidated Damages, if
any) on Securities in trust for the benefit of the Persons entitled thereto
until such sums are paid to such Persons or otherwise disposed of as herein
provided;
(b) give the Trustee prompt written notice of
any default by the Company (or any other obligor upon the Securities) in the
making of any payment of principal, if any, Liquidated Damages, if any, or
interest; 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 of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to
such sums.
Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of (and
premium, if any), Liquidated Damages, if any, or interest on any Security and
remaining unclaimed for two years after such principal (and premium, if any),
Liquidated Damages, if any, or interest has become due and payable shall be paid
to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security shall thereafter, as
an unsecured general creditor, look only to the Company for payment thereof, and
all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Company as trustee thereof, shall thereupon
cease; provided, however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be publicly disseminated, 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
shall be repaid to the Company.
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Section 10.04 Existence.
The Company shall do or cause to be done all things necessary
to preserve and keep in full force and effect its existence, rights (charter and
statutory) and franchises; provided, however, that the Company shall not be
required to preserve any such right or franchise if the preservation thereof is
no longer desirable in the conduct of the business of the Company and its
Restricted Subsidiaries, taken as a whole, and the loss thereof is not
materially adverse to the Holders of the Securities; provided further, that this
Section 10.04 does not prohibit any transaction permitted by Section 10.14 or
Article VIII.
Section 10.05 Maintenance of Properties.
The Company shall cause all properties used or useful in the
conduct of its business or the business of any Restricted Subsidiary of the
Company to be maintained and kept in good condition, repair and working order
and supplied with all necessary equipment and shall cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof,
all as in the judgment of the Company may be necessary so that the business
carried on in connection therewith may be properly and advantageously conducted
at all times; provided, however, that nothing in this Section shall prevent the
Company from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, as determined by the Board of Directors of
the Company in good faith, desirable in the conduct of its business or the
business of any such Restricted Subsidiary and not disadvantageous in any
material respect to the Holders.
Section 10.06 Payment of Taxes.
The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (l) all material taxes,
assessments and governmental charges levied or imposed upon the Company or any
of its Restricted Subsidiaries or upon the income, profits or property of the
Company or any of its Restricted Subsidiaries, and (2) all lawful claims for
labor, materials and supplies which, if unpaid, might by law become a lien upon
the property of the Company or any of its Restricted Subsidiaries; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings.
Section 10.07 Maintenance of Insurance.
The Company shall, and shall cause its Restricted Subsidiaries
to, keep at all times all of their properties which are of an insurable nature
insured against loss or damage with insurers believed by the Company to be
responsible to the extent that property of similar character is usually so
insured by corporations similarly situated and owning like properties in
accordance with good business practice.
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Section 10.08 Limitation on Consolidated Indebtedness.
The Company shall not, and shall not cause or permit any
Restricted Subsidiary to, directly or indirectly, Incur any Indebtedness,
including Acquired Indebtedness, except that the Company may Incur Indebtedness,
if the Company's Operating Cash Flow Ratio would have been less than 7.0 to 1.0,
and if such Indebtedness proposed to be Incurred is Senior Indebtedness, then
the Company's Senior Operating Cash Flow Ratio would also have been less than
4.75 to 1.0.
Notwithstanding the above, the Company and its Restricted
Subsidiaries may Incur the following Indebtedness without regard to the above
limitations:
(a) Indebtedness evidenced by the Securities on
the Issue Date and a like principal amount of Exchange Securities to be issued
pursuant to the terms of the Registration Rights Agreement;
(b) Indebtedness, letters of credit and bankers'
acceptances Incurred by the Company under the Credit Agreement in an aggregate
principal amount not to exceed $600,724,446 at any time outstanding, reduced by
the amount of repayments and permanent reductions of Indebtedness Incurred under
this clause (b) due to the application of Net Cash Proceeds after the Issue Date
pursuant to Section 10.14;
(c) Indebtedness of the Company or any of its
Restricted Subsidiaries owing to the Company or any of its Restricted
Subsidiaries ("Intercompany Indebtedness"); provided that (A) in the case of any
such Indebtedness of the Company, such obligations will be unsecured and
subordinated by their terms in all respects to the Holders' rights pursuant to
the Securities, and (B) if any event occurs that causes a Person that is a
Restricted Subsidiary to no longer be a Restricted Subsidiary, then this clause
(c) will no longer be applicable to such Indebtedness of that Person;
(d) Indebtedness of the Company or any
Restricted Subsidiary issued in exchange for, or to renew, replace, extend,
refinance or refund, any Indebtedness of the Company or such Restricted
Subsidiary Incurred pursuant to clauses (a), (d), (f), (h), (k) or (n) of this
Section 10.08 or pursuant to the first paragraph of this Section 10.08, which
Indebtedness was outstanding or committed on the date of exchange, renewal,
replacement, extension, refinancing or refunding; provided, however, that:
(A) such Indebtedness does not exceed the
principal amount (or in the case of Redeemable Stock or Preferred Stock that
constitutes Indebtedness, the aggregate redemption or repurchase price or
liquidation value) of outstanding or committed Indebtedness so exchanged,
renewed, replaced, extended, refinanced or refunded plus all accrued interest,
dividends and premiums on the Indebtedness and all fees, expenses, penalties and
premiums incurred in connection therewith;
(B) such exchanging, renewing, replacing,
extending, refinancing or refunding Indebtedness has (x) a final maturity that
is later than the final
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maturity of the Indebtedness being so exchanged, renewed, replaced, extended,
refinanced or refunded, and (y) an Average Life, at the time of such exchange,
renewal, replacement, extension, refinancing or refunding of such Indebtedness,
that is equal to or greater than the Average Life of the Indebtedness being so
exchanged, renewed, replaced, extended, refinanced or refunded;
(C) in the case of any exchanging, renewing,
replacing, extending, refinancing or refunding of Indebtedness subordinated to
the Securities (or Preferred Stock that constitutes Indebtedness), the
exchanging, renewing, replacing, extending, refinancing or refunding
Indebtedness ranks subordinate in right of payment to the Securities to
substantially the same extent as, or to a greater extent than, the Indebtedness
so exchanged, renewed, replaced, extended, refinanced or refunded; and
(D) no Indebtedness of the Company may be
exchanged, renewed, replaced, extended, refinanced or refunded by the Incurrence
of Indebtedness or the issuance of Capital Stock by any Restricted Subsidiary;
(e) Indebtedness Incurred by the Company or any
of its Restricted Subsidiaries under Hedge Agreements to protect the Company or
any of its Restricted Subsidiaries from interest or foreign currency risk on
Indebtedness permitted to be Incurred by this Indenture or to manage such risk;
provided, that the notional principal amount of any such Hedge Agreements does
not exceed the principal amount of Indebtedness to which such Hedge Agreements
relate, and such Hedge Agreements are not for speculative purposes;
(f) Indebtedness of the Company and its
Restricted Subsidiaries existing on the Issue Date (other than Indebtedness
Incurred under clause (c) of this Section 10.08) ("Existing Indebtedness");
(g) any guarantee by any Restricted Subsidiary
of any Indebtedness Incurred under the Credit Agreement under clause (b) of this
Section 10.08;
(h) Acquired Indebtedness of the Company;
provided that, on a pro forma basis after giving effect to the Incurrence of
such Acquired Indebtedness, the Company would be able to Incur at least $1.00 of
additional Indebtedness pursuant to the provisions described under the first
paragraph of this Section 10.08, and if such Acquired Indebtedness is Senior
Indebtedness, the Company would also be able to Incur at least $1.00 of
additional Senior Indebtedness pursuant to the provisions described under the
first paragraph of this Section 10.08;
(i) Indebtedness of the Company or any of its
Restricted Subsidiaries in respect of performance, bid, surety, appeal or
similar bonds or completion or performance guarantees provided in the ordinary
course of business;
(j) Indebtedness of the Company or any of its
Restricted Subsidiaries arising from agreements providing for indemnification,
adjustment of purchase price or similar obligations, or from guarantees or
letters of credit, surety bonds or performance bonds securing any obligations of
the Company or any of its Restricted
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Subsidiaries pursuant to such agreements, in any case Incurred in connection
with the disposition of any business, assets or Subsidiary of the Company (other
than guarantees of, or similar obligations under, Indebtedness Incurred by any
Person acquiring all or any portion of such business, assets or Restricted
Subsidiary of the Company for the purpose of financing such acquisition), in an
amount not to exceed the gross proceeds actually received by the Company or any
Restricted Subsidiary in connection with such disposition;
(k) Indebtedness of the Company or any of its
Restricted Subsidiaries represented by Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, Incurred for the purpose
of financing all or any part of the purchase price or cost of construction or
improvement of property, plant or equipment used in the business of the Company
or any of its Restricted Subsidiaries, in an aggregate principal amount,
including all Indebtedness Incurred pursuant to clause (d) of this Section 10.08
above in exchange for, or to renew, replace, extend, refinance or refund any
Indebtedness Incurred pursuant to this clause (k), not to exceed the greater of
1.0% of Total Assets at any time outstanding and $12.0 million;
(l) Indebtedness of the Company or any of its
Restricted Subsidiaries owed to, including obligations in respect of letters of
credit for the benefit of, any Person in connection with workers' compensation,
health, disability or other employee benefits or property, casualty or liability
insurance provided by such Person to the Company or any of its Restricted
Subsidiaries, in each case Incurred in the ordinary course of business;
(m) Indebtedness of the Company or any of its
Restricted Subsidiaries arising from the honoring by a bank or other financial
institution of a check, draft or similar instrument drawn against insufficient
funds in the ordinary course of business; provided, that such Indebtedness is
extinguished within two Business Days after its Incurrence; and
(n) Indebtedness of the Company or any of its
Restricted Subsidiaries, other than Indebtedness permitted pursuant to clauses
(a) through (m) of this Section 10.08, which does not exceed $35 million at any
time outstanding including all Indebtedness Incurred pursuant to clause (d) of
this Section 10.08, in exchange for, or to renew, replace, extend, refinance or
refund any such Indebtedness.
For the avoidance of doubt, all Indebtedness outstanding under
the Credit Agreement on the Issue Date, after application of the net proceeds
from the issuance of the Securities (other than Additional Securities), shall be
deemed to have been Incurred under clause (b) of this Section 10.08. For
purposes of determining compliance with this Section 10.08, in the event that an
item of proposed Indebtedness meets the criteria of more than one of the
categories described in clause (a) and clauses (c) through (n) of this Section
10.08, or is entitled to be Incurred pursuant to the first paragraph of this
Section 10.08, the Company, in its sole discretion, will be permitted to
classify such item of Indebtedness on the date of its Incurrence, or later
reclassify such item of Indebtedness, in any manner that complies with this
Section 10.08.
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The accrual of interest, the accretion or amortization of
original issue discount, the payment of interest on any Indebtedness in the form
of additional Indebtedness with the same terms and payments of dividends on
Redeemable Stock or Preferred Stock in the form of additional shares of the same
class of Redeemable Stock or Preferred Stock will not be deemed to be an
Incurrence of Indebtedness or an issuance of Redeemable Stock or Preferred Stock
for the purposes of this Section 10.08.
Section 10.09 Limitation on Preferred Stock of Restricted
Subsidiaries.
The Company shall not permit any Restricted Subsidiary of the
Company to create or issue any Preferred Stock except:
(a) Preferred Stock outstanding on the Issue
Date ("Existing Preferred Stock");
(b) Preferred Stock issued to and held by the
Company or any Wholly Owned Restricted Subsidiary of the Company;
(c) Preferred Stock issued by a Person prior to
the time such Person became a Restricted Subsidiary of the Company; and
(d) Preferred Stock issued by a Restricted
Subsidiary in exchange for, or the proceeds of which are used to refinance
outstanding Preferred Stock of a Restricted Subsidiary; provided that (i) the
liquidation value of the refinancing Preferred Stock does not exceed the
liquidation value so refinanced plus financing fees and other expenses,
penalties and premiums associated with such refinancing and all accrued
dividends on such Preferred Stock and (ii) such refinancing Preferred Stock has
no mandatory redemptions prior to (and in no greater amounts than) the Preferred
Stock being refinanced.
The payment of dividends on Preferred Stock in the form of
additional shares of the same class of Preferred Stock shall not be deemed to be
a creation or issuance of Preferred Stock for purposes of this Section 10.09.
Section 10.10 Limitation on Restricted Payments.
The Company shall not, and shall not permit any Restricted
Subsidiary of the Company to make, directly or indirectly, any Restricted
Payment, unless after giving effect to the Restricted Payment:
(a) no Default or Event of Default has occurred
and is continuing;
(b) the Company would be permitted to Incur an
additional $1.00 of Indebtedness pursuant to the Operating Cash Flow Ratio test
set forth in the first paragraph of Section 10.08; and
(c) the total of all Restricted Payments made on
or after January 16, 2002 does not exceed the sum, without duplication, of (1)
Cumulative
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Operating Cash Flow less 1.60 times Cumulative Interest Expense, (2) 100% of the
aggregate Qualified Capital Stock Proceeds of the Company after January 16,
2002, (3) 100% of the cash proceeds received from an Unrestricted Subsidiary to
the extent of Investments (other than Permitted Investments) made in such
Unrestricted Subsidiary since January 16, 2002, and (4) to the extent that any
Investment, other than a Permitted Investment, that was made after the Issue
Date is sold or otherwise liquidated or repaid, or the Person in whom such
Investment was made subsequently becomes a Restricted Subsidiary of the Company,
the lesser of (x) the cash or Cash Equivalents received upon the sale,
liquidation or repayment of such Investment, less the cost of disposition, if
any, or the cash plus the Fair Market Value of any assets other than cash held
by such Person on the date it becomes a Restricted Subsidiary of the Company, as
applicable, and (y) the initial amount of such Investment.
The foregoing provision shall not be violated by reason of:
(1) the payment of any dividend within 60 days after
declaration thereof if at the declaration date such payment would have complied
with the preceding provision;
(2) any refinancing of any Indebtedness otherwise
permitted under clauses (b) or (d) of Section 10.08;
(3) (a) the issuance of the Senior Subordinated Exchange
Debentures in exchange for the Exchangeable Preferred Stock in accordance with
the terms of the Exchangeable Preferred Stock in effect on the Issue Date;
provided, that after giving effect thereto, the Company's Operating Cash Flow
Ratio, would have been less than 6.5 to 1.0, or (b) the issuance of Additional
Senior Subordinated Exchange Debentures in exchange for the Junior Exchangeable
Preferred Stock in accordance with the terms of the Junior Exchangeable
Preferred Stock in effect on the Issue Date; provided, that after giving effect
thereto, the Company's Operating Cash Flow Ratio would have been less than 6.5
to 1.0;
(4) the purchase, redemption or other acquisition or
retirement for value of Capital Stock of any Restricted Subsidiary held by
Persons other than the Company or any of its Restricted Subsidiaries;
(5) the making of any Investment other than a Permitted
Investment or the payment, redemption, defeasance, repurchase or other
acquisition or retirement of any Capital Stock of the Company or any
Subordinated Indebtedness prior to its scheduled maturity or the payment of
dividends on any Capital Stock of the Company either 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 amount of any such net cash proceeds that are utilized for any such
Investment, payment, redemption, defeasance, repurchase or other acquisition,
retirement or dividend will be excluded from clause (c)(2) of this Section
10.10;
(6) the repurchase, redemption, acquisition or other
retirement for value of any Capital Stock of the Company or any of its
Restricted Subsidiaries held by any employee benefit plans of the Company or any
of its Restricted Subsidiaries, any
83
current or former employees or directors of the Company or any of its Restricted
Subsidiaries or pursuant to any management equity subscription agreement or
stock option agreement of the Company or any of its Restricted Subsidiaries;
provided, that the aggregate price paid for all such repurchased, redeemed,
acquired or retired Capital Stock shall not exceed $1.0 million in any 12-month
period;
(7) the payment of dividends on either the Senior
Exchangeable Preferred Stock or on the Junior Exchangeable Preferred Stock after
February 15, 2005, which dividends do not exceed $30.0 million in the aggregate
since January 16, 2002; provided, that in no event may any such payment be made
unless the Operating Cash Flow Ratio of the Company, calculated on the basis
that the Preferred Stock on which such dividends are proposed to be paid
constitutes Indebtedness, is less than 7.0 to 1.0;
(8) the distribution, as a dividend or otherwise, of
Capital Stock of, or Indebtedness owed to the Company or a Restricted Subsidiary
by, any Unrestricted Subsidiary;
(9) any purchase, redemption, retirement, defeasance or
other acquisition for value of any Subordinated Indebtedness pursuant to the
provisions of such Subordinated Indebtedness upon an Asset Sale or a Change of
Control after the Company shall have complied with the provisions of this
Indenture as set forth in Section 10.14 or Section 10.16, as the case may be; or
(10) Restricted Payments, in addition to Restricted
Payments permitted pursuant to clauses (1) through (9) of this paragraph, not in
excess of $25 million in the aggregate after the Issue Date;
provided, that with respect to clauses (3) through (10) above, no Default or
Event of Default shall have occurred and be continuing, and the payments
described in clauses (1), (6), (7), (9) and (10) of this paragraph shall
constitute Restricted Payments for the calculation under the first paragraph of
this Section 10.10.
In determining whether any Restricted Payment is permitted by
this Section 10.10, the Company may allocate all or any portion of such
Restricted Payment among the categories described in clauses (1) through (10) of
the immediately preceding paragraph or among such categories and the types of
Restricted Payments described in the first paragraph of this Section 10.10;
provided, that at the time of such allocation, all such Restricted Payments, or
allocated portions thereof, would be permitted under the various provisions of
this Section 10.10.
Section 10.11 Limitations Concerning Distributions
and Transfers By Restricted Subsidiaries.
The Company shall not, and shall not permit any Restricted
Subsidiary of the Company to, create or otherwise cause or suffer to exist or
become effective any consensual restriction or prohibition on the ability of any
Restricted Subsidiary of the Company to:
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(a) pay dividends on, or make other
distributions in respect of, its Capital Stock, or any other ownership interest
or participation in, or measured by, its profits, to the Company or any
Restricted Subsidiary or pay any Indebtedness or other obligation owed to the
Company or any Restricted Subsidiary;
(b) make any loans or advances to the Company or
any Restricted Subsidiary; or
(c) transfer any of its property or assets to
the Company or any Restricted Subsidiary.
Notwithstanding the foregoing, the Company may, and may permit
any Restricted Subsidiary to, suffer to exist any such restriction or
prohibition:
(1) pursuant to this Indenture, the Securities, the
Exchange Securities to be issued pursuant to the terms of the Registration
Rights Agreement, the Credit Agreement, any other agreement in effect on the
Issue Date and, if executed and delivered, the Exchange Indenture; provided,
that any such restriction or prohibition in the Exchange Indenture is no more
restrictive than that contained in this Indenture;
(2) pursuant to an agreement relating to any Indebtedness
or Capital Stock of such Restricted Subsidiary which was outstanding or
committed prior to the date on which such Restricted Subsidiary became a
Restricted Subsidiary of the Company other than restrictions or prohibitions
adopted in anticipation of becoming a Restricted Subsidiary; provided, that such
restriction or prohibition shall not apply to any property or assets of the
Company or any Restricted Subsidiary other than the property or assets of such
Restricted Subsidiary and its Subsidiaries;
(3) existing under or by reason of applicable law, rule,
regulation or order;
(4) pursuant to customary provisions restricting
subletting or assignment of any lease governing any leasehold interest of any
Restricted Subsidiary;
(5) pursuant to purchase money obligations for property
acquired in the ordinary course of business that impose restrictions of the type
referred to in clause (c) of this Section 10.11;
(6) pursuant to restrictions of the type referred to in
clause (c) of this Section 10.11 contained in security agreements securing
Indebtedness of a Restricted Subsidiary to the extent that such Liens were
otherwise Incurred in accordance with Section 10.12 and restrict the transfer of
property subject to such agreements;
(7) pursuant to any agreement for the sale or other
disposition of all or substantially all of the Capital Stock or assets of a
Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending its sale or disposition;
85
(8) pursuant to customary provisions in joint venture
agreements and other similar agreements entered into in the ordinary course of
business; and
(9) pursuant to an agreement effecting an amendment,
modification, restatement, supplement, renewal, increase, extension,
refinancing, replacement or refunding of any agreement described in clauses (1),
(2) and (8) above; provided, that the provisions contained in such amendment,
modification, restatement, supplement, renewal, increase, extension,
refinancing, replacement or refunding agreement relating to such restriction or
prohibition are not materially more restrictive, taken as a whole, than the
provisions contained in the agreement which is the subject thereof.
Section 10.12 Limitations on Liens.
The Company shall not, and shall not permit any Restricted
Subsidiary of the Company to, Incur or suffer to exist any Lien on or with
respect to any property or assets now owned or hereafter acquired securing any
obligation without making, or causing such Restricted Subsidiary to make,
effective provision for securing the Securities:
(a) equally and ratably with such obligation as
to such property for so long as such obligation will be so secured; or
(b) in the event such obligation is Indebtedness
of the Company or a Restricted Subsidiary which is subordinate by its terms in
right of payment to the Securities, prior to such obligation as to such property
for so long as such obligation will be so secured.
The foregoing restrictions shall not apply to:
(1) Liens existing on the Issue Date securing obligations
of the Company or any of its Restricted Subsidiaries outstanding on the Issue
Date, other than Indebtedness under the Credit Agreement ("Existing Liens");
(2) Liens securing Indebtedness of the Company or any
Restricted Subsidiary under the Credit Agreement, which Indebtedness is
permitted to be Incurred under clauses (b) or (g) of the of Section 10.08;
(3) Liens in favor of the Company or any of its
Restricted Subsidiaries;
(4) Liens to secure Indebtedness of the Company or a
Restricted Subsidiary outstanding or committed for the purpose of financing all
or any part of the purchase price or the cost of construction or improvement of
the equipment or other property subject to such Liens; provided, however, that
(a) the principal amount of any Indebtedness secured by such a Lien does not
exceed 100% of such purchase price or cost, (b) such Lien does not extend to or
cover any property other than such item of
86
property or any improvements on such item and (c) the Incurrence of such
Indebtedness is otherwise permitted by this Indenture;
(5) (a) Liens on property existing immediately prior to
the time of acquisition thereof (and not Incurred in anticipation of the
financing of such acquisition) by the Company or any Restricted Subsidiary and
(b) Liens in respect of Acquired Indebtedness existing at the time of the
relevant acquisition by the Company; provided, that such Liens do not extend to
any assets of the Company other than the assets being acquired and as long as
such Liens were not Incurred in anticipation of such acquisition;
(6) Liens to secure Indebtedness to extend, renew,
refinance or refund (or successive extensions, renewals, refinancings or
refundings), in whole or in part, Indebtedness secured by any Lien referred to
in the foregoing clauses (1), (2), (4) and (5) so long as such Liens do not
extend to any other property and the principal amount of Indebtedness so secured
is not increased;
(7) Liens on any Permitted Investment in Cooperative Bank
Equity in favor of any Cooperative Banks;
(8) Liens Incurred or deposits made to secure the
performance of statutory or regulatory obligations, surety or appeal bonds,
performance bonds, deposits to secure the performance of tenders, bids, trade
contracts, government contracts, import duties, payment of rent, leases or
licenses or other obligations of a like nature incurred in the ordinary course
of business, including, without limitation, landlord Liens on leased properties;
(9) Liens for taxes, assessments or governmental charges
or claims that are not yet delinquent, that are not yet subject to penalties or
interest for non-payment or that are being contested in good faith by
appropriate proceedings; provided, that any reserve or other appropriate
provision as is required in conformity with GAAP has been made therefor;
(10) carriers', warehousemen's, mechanics', landlords',
materialmen's, repairmen's, suppliers' or other like Liens arising in the
ordinary course of business and deposits made to obtain the release of such
Liens and with respect of obligations not overdue for a period in excess of 60
days or which are being contested in good faith by appropriate proceedings;
provided, that any reserve or other appropriate provision as shall be required
to conform with GAAP shall have been made therefor;
(11) easements, rights-of-way, zoning ordinances and
similar charges, restrictions, exceptions or other irregularities, reservations
of, or rights of others for: licenses, sewers, electric lines, telegraph and
telephone lines, and other similar encumbrances or title defects incurred, or
leases or subleases granted to others, in the ordinary course of business, which
do not in any case materially detract from the value of the property subject
thereto or do not materially interfere with the ordinary conduct of the business
of the Company or any of its Restricted Subsidiaries;
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(12) Liens in favor of customs and revenue authorities to
secure payment of customs duties in connection with the importation of goods in
the ordinary course of business and other similar Liens arising in the ordinary
course of business;
(13) leases or subleases granted in the ordinary course of
business to third Persons not materially interfering with the ordinary course of
business of the Company or any of its Restricted Subsidiaries;
(14) Liens (other than any Lien imposed by ERISA or any
rule or regulation promulgated thereunder) Incurred or pledges or deposits made
in the ordinary course of business, in connection with workers' compensation,
unemployment insurance and other types of social security;
(15) deposits made in the ordinary course of business to
secure liability to insurance carriers;
(16) any attachment, appeal or judgment Lien not
constituting an Event of Default under clause (g) of Section 5.01;
(17) Liens under licensing agreements for use of
intellectual property entered into in the ordinary course of business;
(18) any interest or title of a lessor or lessee or
sublessor or sublessee under any operating lease entered into by the Company and
its Restricted Subsidiaries in the ordinary course of business;
(19) Liens arising from Uniform Commercial Code financing
statement filings regarding operating leases entered into by the Company and its
Restricted Subsidiaries in the ordinary course of business;
(20) rights of set-off of as to deposit accounts or other
funds maintained with a depository or other financial institution;
(21) Liens on property subject to capital leases to the
extent the related Capital Lease Obligation is permitted to be Incurred pursuant
to clause (k) of Section 10.08;
(22) Liens securing Hedge Agreements permitted to be
Incurred pursuant to clause (e) of Section 10.08, so long as the related
Indebtedness is, and this Indenture permits such Indebtedness to be, secured by
a Lien on the same property securing such Hedge Agreements;
(23) Liens securing Indebtedness permitted to Incurred
pursuant to clause (j), (l), (m) and (n) of Section 10.08; and
(24) any other Liens in respect of any Indebtedness, which
Indebtedness does not exceed $10.0 million in the aggregate.
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Section 10.13 Limitation on Transactions with Affiliates.
The Company shall not, and shall not permit any Restricted
Subsidiary to, make any payment to, or sell, lease, transfer or otherwise
dispose of any of its properties or assets to, or purchase any property or
assets from, or enter into or make or amend any transaction, contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate, other than the Company or a Restricted Subsidiary (each of
the foregoing transactions, an "Affiliate Transaction"), unless:
(a) such Affiliate Transaction is on terms that
are no less favorable to the Company or the relevant Restricted Subsidiary than
those that would have been obtained in a comparable transaction by the Company
or such Restricted Subsidiary with an unrelated Person; and
(b) the Company delivers to the Trustee:
(1) with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $7.5 million, a determination by the Board of Directors of the Company
set forth in a Board Resolution and an Officers' Certificate certifying that
each such Affiliate Transaction complies with clause (a) above and that each
such Affiliate Transaction has been approved by a majority of the disinterested
members of the Board of Directors of the Company; and
(2) with respect to any Affiliate Transaction or
series of related Affiliate Transactions involving aggregate consideration in
excess of $15.0 million, an opinion as to the fairness to the Company of the
financial terms of such Affiliate Transaction or series or related Affiliate
Transactions from a financial point of view issued by an accounting, appraisal
or investment banking firm of national standing.
This Section 10.13 shall not limit, or be applicable to any
agreement in effect on the Issue Date, and any amendments, extensions or
renewals of any such agreement, so long as any such amendment, extension or
renewal is not materially more disadvantageous, taken as a whole, to the Company
or to any Restricted Subsidiary as the original agreement in effect on the Issue
Date. In addition, the following items will not be deemed to be Affiliate
Transactions:
(1) any employment, service or termination agreement
entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business;
(2) transactions between or among the Company and/or its
Restricted Subsidiaries;
(3) transactions with a Person that is an Affiliate of
the Company solely because the Company owns Capital Stock in, or controls, such
Person;
(4) reasonable and customary fees and compensation paid
to, and indemnity provided on behalf of, officers, directors and employees of
the Company or
89
any Restricted Subsidiary of the Company, as determined by the Board of
Directors of the Company;
(5) sales or issuances of Qualified Capital Stock to
Affiliates or employees of the Company and its Subsidiaries at Fair Market
Value; and
(6) Restricted Payments that are not prohibited by
Section 10.10 and Permitted Investments.
Section 10.14 Limitation on Asset Sales and Sales of
Subsidiary Stock.
Following the Issue Date, the Company shall not, and shall not
permit any Restricted Subsidiary of the Company to engage in an Asset Sale
unless (a) such Asset Sale is for Fair Market Value, (b) at least 75% of the
value of the consideration for such Asset Sale consists of (1) cash or Cash
Equivalents, (2) the assumption by the transferee (and release of the Company or
the relevant Restricted Subsidiary, as the case may be) of Senior Indebtedness
of the Company or Indebtedness of any Restricted Subsidiary, or (3) notes,
obligations or other marketable securities (collectively "Marketable
Securities") that are converted within 30 days after the consummation of such
Asset Sale into cash or Cash Equivalents and (c) the Net Cash Proceeds therefrom
are, at the Company's option and, to the extent it so elects, applied on or
prior to the date that is 365 days after the date of such Asset Sale: (1) to the
repayment of Indebtedness under the Credit Agreement (which payment permanently
reduces the commitment thereunder); (2) to the repurchase of the Securities or
other Senior Indebtedness of the Company or Indebtedness of any Restricted
Subsidiary containing similar provisions with respect to the repurchase of such
Indebtedness with the net proceeds of asset sales, pursuant to an offer to
purchase (an "Asset Sale Offer") described below; (3) to the making of capital
expenditures or other acquisitions of long-term assets (other than Capital
Stock) that are used or useful in a Wireless Communications Business that is
owned wholly by the Company or any of its Restricted Subsidiaries; (4) to the
acquisition of all or substantially all of the assets of, or Capital Stock
representing a majority of the Voting Power of, an entity engaged primarily in a
Wireless Communications Business; or (5) any combination of the foregoing.
Notwithstanding the foregoing paragraph:
(1) the conveyance, sale, transfer or other disposition
of all or substantially all the assets of the Company on a consolidated basis
will be governed by the provisions of Section 10.16 and/or the provisions of
Article VIII and not by this Section 10.14;
(2) any Restricted Subsidiary of the Company may convey,
sell, lease, transfer or otherwise dispose of any or all of its assets (upon
voluntary liquidation or otherwise) to the Company or any of its Wholly Owned
Restricted Subsidiaries;
(3) the Company and its Restricted Subsidiaries may, in
the ordinary course of business, (A) convey, sell, lease, transfer, assign or
otherwise dispose of assets; provided that if such conveyance, sale, lease,
transfer, assignment or other disposition is
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to a Person other than a Restricted Subsidiary, the consideration received
reflects the Fair Market Value of such assets and (B) exchange assets for either
assets or equity interests in Wireless Communications Businesses; provided that
(a) the assets or equity interests received have a Fair Market Value
substantially equal to the assets exchanged and (b) the assets received by the
Company are controlled by the Company with respect to voting rights and
day-to-day operations, or the equity interests received by the Company represent
a controlling interest in the total Voting Power and day-to-day operations of a
Person that is the issuer of such equity interests;
(4) the Company and its Restricted Subsidiaries may make
an exchange of assets where the Company and/or its Restricted Subsidiaries
receive consideration for such assets at least 75% of which consists of (a)
cash, (b) long-term assets (other than Capital Stock) at Fair Market Value that
are used or useful in a Wireless Communications Business or (c) any combination
thereof (it being understood that any net cash proceeds shall be treated as Net
Cash Proceeds under clause (c) of the preceding paragraph of this Section
10.14);
(5) the Company and its Restricted Subsidiaries may sell,
exchange or dispose of damaged, worn out or other obsolete property in the
ordinary course of business or other property no longer necessary for the proper
conduct of the business of the Company or any of its Restricted Subsidiaries;
and
(6) in addition to Asset Sales permitted by the foregoing
clauses (1) through (5), without compliance with the restrictions set forth in
the immediately preceding paragraph, the Company may consummate any single Asset
Sale or series of related Asset Sales with respect to assets the Fair Market
Value of which does not exceed $10.0 million in the aggregate after the Issue
Date.
The Company may defer an Asset Sale Offer until the accumulated Net Cash
Proceeds not applied to the uses set forth in Subsections (c)(1) through (c)(5)
in the first paragraph of this Section 10.14, exceed $10.0 million. Pending the
final application of any such Net Cash Proceeds, the Company may temporarily
reduce revolving credit borrowings or otherwise invest such Net Cash Proceeds in
any manner that is not prohibited by this Indenture.
An Asset Sale Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the "Asset Sale Offer
Period"). To the extent that any Senior Indebtedness of the Company or
Indebtedness of any Restricted Subsidiary requires the Company or that
Subsidiary to make an offer similar to an Asset Sale Offer, the Company and each
such Restricted Subsidiary may make simultaneous offers, with such offer being
limited to proceeds not used in such Asset Sale Offer to repurchase such
Indebtedness of the Company or such Restricted Subsidiary. No later than five
Business Days after the termination of the Asset Sale Offer Period (the "Asset
Sale Purchase Date"), the Company shall purchase the principal amount of
Securities required to be purchased pursuant to this Section 10.14 (the "Asset
Sale Offer Amount") at a purchase
91
price equal to 100% of the principal amount of the Securities plus accrued and
unpaid interest and Liquidated Damages, if any, to but excluding the date of the
purchase or, if less than the Asset Sale Offer Amount has been tendered, all
Securities tendered in response to the Asset Sale Offer.
If the Asset Sale Purchase Date is on or after a Regular
Record Date and on or before the related Interest Payment Date, any accrued and
unpaid interest will be paid to the Person in whose name a Security is
registered at the close of business on such Regular Record Date, and no
additional interest will be payable to Holders who tender Securities pursuant to
the Asset Sale Offer.
On or before the Asset Sale Purchase Date, the Company shall,
to the extent lawful, accept for payment, on a pro rata basis to the extent
necessary, the Asset Sale Offer Amount of Securities or portions thereof
tendered pursuant to the Asset Sale Offer, or if less than the Asset Sale Offer
Amount has been tendered, all Securities tendered, and shall deliver to the
Trustee an Officers' Certificate stating that such Securities or portions
thereof were accepted for payment by the Company in accordance with the terms of
this covenant. The Company, the Depositary or the Paying Agent, as the case may
be, will promptly (but in any case not later than five days after the Asset Sale
Purchase Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Securities tendered by such Holder and accepted by the
Company for purchase, and the Company shall promptly issue new Securities, and
the Trustee, upon written request from the Company, shall authenticate and mail
or deliver such new Securities to such Holder, in a principal amount equal to
any unpurchased portion of the Securities surrendered. Any Securities not so
accepted shall be promptly mailed or delivered by the Company to the Holder
thereof. The Company shall publicly announce the results of the Asset Sale Offer
on the Asset Sale Purchase Date. Upon completion of each Asset Sale Offer, the
amount of accumulated Net Cash Proceeds not applied to the uses set forth in
subsections (c)(1) through (c)(5) in the first paragraph of this Section 10.14
shall be reset to zero, and the Company and its Restricted Subsidiaries may use
such amount for any purpose not otherwise prohibited by this Indenture.
The Company shall comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act and any applicable other
securities laws or regulations applicable to any Asset Sale Offer. To the extent
that the provisions of any securities laws or regulations conflict with the
provisions of this Section 10.14, the Company will comply with the applicable
securities laws and regulations and will not be deemed to have breached its
obligations under the provisions of this Section 10.14 by virtue of such
conflict; provided, that the Company shall not be relieved of its obligation to
make an offer to repurchase the Securities pursuant to this Section 10.14 by
reason of such conflict.
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Section 10.15 Limitation on Activities of the Company and its
Restricted Subsidiaries.
The Company shall not, and shall not permit any Restricted
Subsidiary to, engage in any business other than the Telecommunications
Business, except to the extent such business is not material to the Company and
its Restricted Subsidiaries, taken as a whole.
Section 10.16 Change of Control.
(a) Upon the occurrence of a Change in Control,
each Holder of a Security shall have the right to request to have such Security
repurchased by the Company on the terms and conditions set forth in this Section
10.16 and this Indenture. The Company shall, within 30 days following the date
of the consummation of a transaction resulting in a Change of Control, mail to
each Holder an Offer to Purchase all Outstanding Securities at a purchase price
in cash equal to 101% of the aggregate principal amount thereof plus accrued and
unpaid interest and Liquidated Damages, if any, to but excluding the Purchase
Date (a "Change of Control Offer").
The Company or a third party on its behalf may, but shall not
be required to, satisfy the Company's obligations under this Section 10.16 by
mailing such an Offer to Purchase prior to, and contingent upon, the anticipated
consummation of a transaction resulting in a Change of Control; provided that
the Company and any such third party shall comply with all applicable laws and
regulations, including Rule 14e-1 under the Exchange Act, and the Offer to
Purchase shall not close unless the transaction resulting in a Change of Control
also occurs. A Change of Control Offer shall remain open for a period of 20
Business Days following its commencement and no longer, except to the extent
that a longer period is required by applicable law (the "Change of Control Offer
Period"). No later than five Business Days after the termination of the Change
of Control Offer Period (the "Change of Control Purchase Date"), the Company
shall purchase all Securities tendered in response to the Change of Control
Offer. Payment for any Securities so purchased shall be made in the same manner
as interest payments are made.
If the Change of Control Purchase Date is on or after a
Regular Record Date and on or before the related Interest Payment Date, any
accrued and unpaid interest, and Liquidated Damages, if any, shall be paid to
the Person in whose name a Security is registered at the close of business on
such Regular Record Date, and no additional interest or Liquidated Damages will
be payable to Holders who tender Securities pursuant to the Change of Control
Offer.
On or before the Change of Control Purchase Date, the Company
shall, to the extent lawful, accept for payment all Securities or portions
thereof tendered, and shall deliver to the Trustee an Officers' Certificate
stating that such Securities or portions thereof were accepted for payment by
the Company in accordance with the terms of this Section 10.16. The Company, the
Depositary or the Paying Agent, as the case may be, shall promptly (but in any
case not later than five days after the Change of Control Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase
93
price of the Securities tendered by such Holder and accepted by the Company for
purchase, and the Company shall promptly issue new Securities, and the Trustee,
upon written request from the Company shall authenticate and mail or deliver
such new Securities to such Holder, in a principal amount equal to any
unpurchased portion of the Securities surrendered. Any Securities not so
accepted will be promptly mailed or delivered by the Company to the Holder
thereof. The Company shall publicly announce the results of the Change of
Control Offer on the Change of Control Purchase Date.
(b) The Company shall comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange Act and any
other securities laws or regulations applicable to any Offer to Purchase. To the
extent that the provisions of any applicable securities laws or regulations
conflict with the provisions of this Section 10.16, the Company will comply with
the applicable securities laws and regulations and will not be deemed to have
breached its obligations under the provisions of this Section 10.16 by virtue of
such conflict; provided, that the Company shall not be relieved of its
obligation to make an offer to repurchase the Securities pursuant to this
Section 10.16 by reason of such conflict.
Section 10.17 Statement by Officers as to Default; Compliance
Certificates.
(a) The Company shall deliver to the Trustee,
within 90 days after the end of each fiscal year, an Officers' Certificate
stating that a review of the activities of the Company, the Restricted
Subsidiaries and their respective Subsidiaries, as applicable, during the
preceding fiscal year has been made under the supervision of the signing
officers with a view to determining whether the Company and its Restricted
Subsidiaries have kept, observed, performed and fulfilled their obligations
under this Indenture, and further stating, as to each such officer signing such
certificate, that to the best of his or her knowledge the Company and its
Restricted Subsidiaries have kept, observed, performed and fulfilled each and
every covenant contained in this Indenture and are not in default in the
performance or observance of any of the terms, provisions and conditions of this
Indenture (or, if a Default or Event of Default shall have occurred, describing
all such Defaults or Events of Default of which he or she may have knowledge and
what action the Company and its Restricted Subsidiaries are taking or propose to
take with respect thereto).
(b) So long such practice is not contrary to the
then current recommendations of the American Institute of Certified Public
Accountants, the year-end financial statements delivered pursuant to Section
7.04(b)(i)(A) above shall be accompanied by a written statement of the Company's
independent public accountants (who shall be a firm of established national
reputation) that in making the examination necessary for certification of such
financial statements, nothing has come to their attention that would lead them
to believe that the Company or any Restricted Subsidiary has violated any
provisions of Article VIII or Article X hereof or, if any such violation has
occurred, specifying the nature and period of existence thereof, it being
understood that such accountants shall not be liable directly or indirectly to
any Person for any failure to obtain knowledge of any such violation.
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(c) The Company shall, so long as any of the
Securities are outstanding, upon any officer of the Company becoming aware of
any Default or Event of Default, deliver to the Trustee, no later than 10 days
after such officer becomes aware of such Default or Event of Default, an
Officers' Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect thereto.
Section 10.18 Waiver of Certain Covenants.
The Company and its Restricted Subsidiaries may omit in any
particular instance to comply with any covenant or condition set forth in
Sections 8.01, 10.14 and 10.16, if before the time for such compliance the
Holders of at least a majority in aggregate principal amount of the Outstanding
Securities, by Act of such Holders, either waive such compliance in such
instance or generally waive compliance with such covenant or condition, but no
such waiver shall extend to or affect such covenant or condition, except to the
extent expressly waived, and, until such waiver becomes effective, the
obligations of the Company and its Restricted Subsidiaries and the duties of the
Trustee in respect of any such covenant or condition shall remain in full force
and effect; provided, however, with respect to an Offer to Purchase as to which
an Offer has been mailed, no such waiver may be made or shall be effective
against any Holders tendering Securities pursuant to such Offer, and the Company
may not omit to comply with the terms of such Offer as to such Holder.
Section 10.19 Payments for Consent.
The Company shall not, and shall not permit any of its
Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration to or for the benefit of any Holder of Securities for or as an
inducement to, any consent, waiver or amendment of any of the terms or
provisions of this Indenture unless such consideration is offered to be paid and
is paid to all Holders of the Securities that consent, waive or agree to amend
in the time frame set forth in the solicitation documents relating to such
consent, waiver or agreement.
Section 10.20 Covenants upon Attainment and
Maintenance of an Investment Grade Rating.
(a) The provisions of Sections 10.08, 10.09,
10.10, 10.11, 10.12, 10.13 and 10.14 (including, to the extent applicable, those
portions of such other sections in this Indenture which make reference to
provisions contained in Sections 10.08, 10.09, 10.10, 10.11, 10.12, 10.13 and
10.14) shall not be applicable in the event, and only for so long as, the
Securities are rated Investment Grade and no Default or Event of Default has
occurred and is continuing (a "Covenant Suspension").
(b) In the event the Company's obligations under
this Indenture have been assumed or fully and unconditionally guaranteed on a
senior basis by a Person whose senior and unsecured Indebtedness is rated
Investment Grade, Section 7.04(b) shall not be applicable.
95
In addition to the foregoing and notwithstanding any other
provision of this Indenture, in the event of a Covenant Suspension, whose
duration is not less than six consecutive months, shall have occurred but
terminates because the Securities cease to be rated Investment Grade then:
(1) All Indebtedness Incurred by the
Company and its Restricted Subsidiaries during the Covenant Suspension that
would not have been permitted to be Incurred pursuant to Section 10.08, had
Section 10.08 been applicable during the Covenant Suspension, shall be deemed to
be "Existing Indebtedness."
(2) All Liens incurred by the Company
and its Restricted Subsidiaries during the Covenant Suspension that would not
have been permitted to be incurred pursuant to Section 10.12, had Section 10.12
been applicable during the Covenant Suspension, shall be deemed to be "Existing
Liens."
(3) All Preferred Stock issued by the
Company's Restricted Subsidiaries during the Covenant Suspension that would not
have been permitted to be issued pursuant to Section 10.09, had such section
been applicable during the Covenant Suspension, shall be deemed to be "Existing
Preferred Stock."
(4) All Restricted Payments made by the
Company or any of its Restricted Subsidiaries during the Covenant Suspension
that would not have been permitted to be Incurred pursuant to Section 10.10, had
such section been applicable during the Covenant Suspension, shall not be deemed
to cause a Default or Event of Default pursuant to Section 10.10; provided,
however, that all Restricted Payments made during the Covenant Suspension shall
count as Restricted Payments for the calculation made under the first paragraph
of Section 10.10.
ARTICLE XI
REDEMPTION OF SECURITIES
Section 11.01 Right of Redemption.
The Securities may be redeemed at the election of the Company,
as a whole or from time to time in part, at the Redemption Prices specified in
the form of Security set forth in Article II together with accrued and unpaid
interest, and Liquidated Damages, if any, to but excluding the Redemption Date.
Section 11.02 Applicability of Article XI.
Redemption of Securities at the election of the Company, as
permitted by any provision of this Indenture, shall be made in accordance with
such provision and this Article XI.
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Section 11.03 Election to Redeem; Notice to Trustee.
The election of the Company to redeem any Securities pursuant
to Section 11.01 shall be evidenced by a Board Resolution. In case of any
redemption at the election of the Company of less than all the Securities, the
Company shall, at least 60 days prior to the Redemption Date fixed by the
Company (unless a shorter notice shall be satisfactory to the Trustee), notify
the Trustee of such Redemption Date and of the aggregate principal amount of
Securities to be redeemed.
Section 11.04 Selection by Trustee of Securities to Be
Redeemed.
If less than all the Securities are to be redeemed at any
time, the Trustee will select Securities for redemption as follows: (1) if the
Securities are listed on any securities exchange, in compliance with the
requirements of the principal securities exchange on which the Securities are
listed; or (2) if the Securities are not listed on any securities exchange, on a
pro rata basis, by lot or by such method as the Trustee deems fair and
appropriate. In any proration pursuant to this Section 11.04, the Trustee shall
make such adjustments, reallocations and eliminations as it shall deem proper
(and in compliance with the requirements of the principal national securities
exchange, if any, on which the Securities are listed) to the end that the
principal amount of Securities so prorated shall be $1,000 or a multiple
thereof, by increasing or decreasing or eliminating the amount which would be
allocable to any Holder on the basis of exact proportion by an amount not
exceeding $1,000.
The Trustee shall promptly notify the Company and each
Security Registrar in writing of the Securities selected for redemption and, in
the case of any Securities selected for partial redemption, the principal amount
thereof to be redeemed.
For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to 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 11.05 Notice of Redemption.
Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of securities to be redeemed, at his or her
address appearing in the Security Register.
All notices of redemption shall state:
(1) the Redemption Date;
(2) the Redemption Price;
97
(3) if less than all the Outstanding Securities are to be
redeemed, the identification (and, in the case of partial redemption, the
principal amounts) of the particular Securities to be redeemed;
(4) that on the Redemption Date the Redemption Price will
become due and payable upon each such Security to be redeemed and that interest,
and Liquidated Damages, if any, thereon will cease to accrue on and after said
date; and
(5) the place or places where such Securities are to be
surrendered for payment of the Redemption Price.
Notice of redemption of Securities to be redeemed at the
election of the Company shall be given by the Company or, at the Company's
request, by the Trustee in the name and at the expense of the Company.
Section 11.06 Deposit of Redemption Price.
On or before any Redemption Date, the Company shall deposit
with the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 10.03) an
amount of money sufficient to pay the Redemption Price of, and (except if the
Redemption Date is an Interest Payment Date) accrued and unpaid interest, and
Liquidated Damages, if any, on, all the Securities which are to be redeemed on
that date.
Section 11.07 Securities Payable on Redemption Date.
If a notice of redemption has been given as aforesaid, the
Securities 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 defaults in the payment of the Redemption Price, accrued interest,
and Liquidated Damages) such Securities shall cease to bear interest or
Liquidated Damages. 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, and Liquidated Damages, if
any, to, but excluding the Redemption Date; provided, however, that installments
of interest or Liquidated Damages, 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 and the provisions of Section
3.08.
If any Security called for redemption is not so paid upon
surrender thereof for redemption, the principal (and premium, if any) shall,
until paid, bear interest and Liquidated Damages, if any, from the Redemption
Date at the rate provided by the Security.
98
Section 11.08 Securities Redeemed in Part.
Any Security which is to be redeemed only in part shall be
surrendered at any office or agency of the Company designated for that purpose
pursuant to Section 10.02 (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), and the Company shall execute, and the Trustee
shall authenticate and deliver to the Holder of such Security without service
charge, a new Security or Securities, of any authorized denomination as
requested by such Holder, in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Security so surrendered.
ARTICLE XII
DEFEASANCE AND COVENANT DEFEASANCE
Section 12.01 Company's Option to Effect
Defeasance or Covenant Defeasance.
The Company may at its option by Board Resolution, at any
time, elect to have either Section 12.02 or Section 12.03 applied to the
Outstanding Securities upon compliance with the conditions set forth below in
this Article XII.
Section 12.02 Defeasance and Discharge.
Upon the Company's exercise of the option provided in Section
12.01 applicable to this Section 12.02, the Company shall be deemed to have been
discharged from its obligations with respect to the Outstanding Securities, on
the date the conditions set forth below are satisfied (hereinafter,
"defeasance"). For this purpose, such defeasance means that the Company shall be
deemed to have paid and discharged the entire indebtedness represented by the
Outstanding Securities, which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 12.05 and the other Sections of this Indenture
referred to in clauses (A) and (B) below, and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights of
Holders of such Securities to receive, solely from the trust fund described in
Section 12.04 and as more fully set forth in such Section, payments in respect
of the principal of (and premium, if any) Liquidated Damages, if any, and
interest on such Securities when such payments are due, (B) the Company's
obligations with respect to such Securities under Sections 3.04, 3.05, 3.06,
3.07, 10.02 and 10.03, (C) the rights, powers, trusts, duties and immunities of
the Trustee hereunder and (D) this Article XII. The Company may exercise its
option under this Section 12.02 notwithstanding the prior exercise of its option
under Section 12.03.
99
Section 12.03 Covenant Defeasance.
Upon the Company's exercise of the option provided in Section
12.01 applicable to this Section, (i) the Company shall be released from its
obligations under Sections 10.05 through 10.16, inclusive, and clauses (c), (d)
and (e) of Section 8.01 and (ii) the occurrence of an event specified in
Sections 5.01(c), 5.01(d) (with respect to clauses (a), (c), (d) or (e) of
Section 8.01), 5.01(e) (with respect to any of Sections 10.05 through 10.16,
inclusive), 5.01(f) and 5.01(g) shall not be deemed to be an Event of Default
(hereinafter, "covenant defeasance"). 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 any such Section,
clause or Article or by reason of any reference in any such Section, clause or
Article to any other provision herein or in any other document, but the
remainder of this Indenture and such Securities shall be unaffected thereby.
Section 12.04 Conditions to Defeasance or Covenant Defeasance.
The following shall be the conditions to application of either
Section 12.02 or Section 12.03 to the then Outstanding Securities:
(a) The Company shall irrevocably have deposited
or caused to be deposited with the Trustee (or another trustee satisfying the
requirements of Section 6.09 who shall agree to comply with the provisions of
this Article XII applicable to it) as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and
dedicated solely to, the benefit of the Holders of such Securities, (A) money in
an amount, or (B) U.S. Government Obligations which through the scheduled
payment of principal and interest in respect thereof in accordance with their
terms, without the need for reinvestment, will provide, not later than one day
before the due date of any payment, money in an amount, or (C) a combination
thereof, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge, and which shall be applied by
the Trustee (or other qualifying trustee) to pay and discharge, the principal of
(and premium, if any,) and each installment of interest, if any, on the
Outstanding Securities on the Stated Maturity of such principal or installment
of interest in accordance with the terms of this Indenture and of such
Securities. For this purpose, "U.S. Government Obligations" means securities
that are (x) direct obligations of the United States of America for the payment
of which its full faith and credit is pledged or (y) obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of the
United States of America the payment of which is unconditionally guaranteed as a
full faith and credit obligation by the United States of America, which, in
either case, are not callable or redeemable at the option of the issuer thereof,
and shall also include a depository receipt issued by a bank (as defined in
Section 3(a)(2) of the Securities Act) as custodian with respect to any such
U.S. Government Obligation or a specific payment of principal of or interest on
any such U.S. Government Obligation held by such custodian for the account of
the holder of such depository receipt; provided that (except as required by law)
such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment
of
100
principal of or interest on the U.S. Government Obligation evidenced by such
depository receipt.
(b) In the case of an election under Section
12.02, the Company shall have delivered to the Trustee an Opinion of Counsel
stating that (x) the Company has received from, or there has been published by,
the Internal Revenue Service a ruling, or (y) since the date of this Indenture
there has been a change in the applicable federal income tax law, in either case
to the effect that, and based thereon such opinion shall confirm that, the
Holders of the Outstanding Securities will not recognize gain or loss for
federal income tax purposes as a result of such deposit, defeasance and
discharge and will be subject to federal income tax on the same amount, 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
12.03, the Company shall have delivered to the Trustee an Opinion of Counsel to
the effect that the Holders of the Outstanding Securities will not recognize
gain or loss for federal income tax purposes as a result of such deposit and
covenant defeasance and will be subject to federal income tax on the same
amount, in the same manner and at the same times as would have been the case if
such deposit covenant defeasance and discharge had not occurred.
(d) The Company shall have delivered to the
Trustee an Officers' Certificate to the effect that the Securities, if then
listed on any securities exchange, will not be delisted as a result of such
deposit.
(e) Such defeasance or covenant defeasance shall
not cause the Trustee to have a conflicting interest as defined in Section 6.08
and for purposes of the Trust Indenture Act with respect to any securities of
the Company.
(f) No Default or Event of Default shall have
occurred and be continuing on the date of such deposit (other than an Event of
Default resulting from the borrowing of funds to be applied to such deposit) or,
insofar as Section 5.01(h) is concerned, at any time during the period ending on
the 91st day after the date of such deposit (it being understood that this
condition shall not be deemed satisfied until the expiration of such period).
(g) Such defeasance or covenant defeasance shall
not result in a breach or violation of, or constitute a default under, any other
agreement or instrument to which the Company is a party or by which it is bound.
(h) The Company shall have delivered to the
Trustee an Officers' Certificate and an Opinion of Counsel, each stating that
all conditions precedent relating to either the defeasance under Section 12.02
or the covenant defeasance under Section 12.03 (as the case may be) have been
satisfied.
(i) Such defeasance or covenant defeasance shall
not result in the trust arising from such deposit constituting an investment
company as defined in the
101
Investment Company Act of 1940, as amended, or such trust shall be qualified
under such act or exempt from regulation thereunder.
Section 12.05 Deposited Money and U.S. Government Obligations
to be Held in Trust; Other Miscellaneous
Provisions.
Subject to the provisions of the last paragraph of Section
10.03, all money and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee --
collectively, for purposes of this Section 12.05, the "Trustee") pursuant to
Section 12.04 in respect of the 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
(including 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 (and premium, if any) or Liquidated Damages, if
any, and interest, but such money need not be segregated from other funds except
to the extent required by law.
The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the U.S. Government
Obligations deposited pursuant to Section 12.04 or the principal and interest
received in respect thereof other than any such tax, fee or other charge which
by law is for the account of the Holders of the Outstanding Securities.
Anything in this Article XII to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon Company
Request any money or U.S. Government Obligations held by it as provided in
Section 12.04 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect an equivalent defeasance or covenant
defeasance.
Section 12.06 Reinstatement.
If the Trustee or the Paying Agent is unable to apply any
money in accordance with Section 12.02 or 12.03 by reason of any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Company's obligations under
this Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to this Article XII until such time as the Trustee
or Paying Agent is permitted to apply all such money in accordance with Section
12.02 or 12.03; provided, however, that if the Company makes any payment of
principal of (and premium, if any) or Liquidated Damages, if any, or interest on
any Security following 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 held by the Trustee or the Paying Agent.
102
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, all as of the day and year first above written.
RURAL CELLULAR CORPORATION
By:______________________________________
Name: Xxxxxx X. Xxxxxxx
Title: Executive Vice President & Chief
Financial Officer
U.S. BANK NATIONAL ASSOCIATION
By:______________________________________
Name: Xxxxxxx Xxxxxxxx
Title: Vice President
(Authorized Officer)
103
Reconciliation and tie between Trust Indenture Act of
1939 and Indenture, dated as of August 1, 2003.
Trust Indenture Indenture
Act Section Section
--------------------- ---------------
Section 310(a)(1) .................................. 6.09
(a)(2) .................................. 6.09
(a)(3) .................................. Not applicable
(a)(4) .................................. Not applicable
(a)(5) .................................. 6.08
6.09
(b) .................................. 6.08
6.10
(c) .................................. Not applicable
Section 311(a) .................................. 6.13
(b) .................................. 6.13
(c) .................................. Not applicable
Section 312(a) .................................. 7.01
7.02(a)
(b) .................................. 7.02(b)
(c) .................................. 7.02(c)
Section 313(a) .................................. 7.03(a)
(b)(1) .................................. Not applicable
(b)(2) .................................. 7.03(a)
(c) .................................. 7.03(a)
1.06
(d) .................................. 7.03(b)
Section 314(a) .................................. 7.04
10.17
(b) .................................. Not applicable
(c)(1) .................................. 1.02
(c)(2) .................................. 1.02
(c)(3) .................................. Not applicable
(d) .................................. Not applicable
(e) .................................. 1.02
Section 315(a) .................................. 6.01
6.03
(b) .................................. 6.02
1.06
(c) .................................. 6.01(a)
(d) .................................. 6.01(b)
(e) .................................. 5.14
Section 316(a)(last
sentence) .................................. 1.01
(a)(1)(A) .................................. 5.12
(a)(1)(B) .................................. 5.13
(a)(2) .................................. Not applicable
(b) .................................. 5.08
A-1
Section 317(a)(1) .................................. 5.03
(a)(2) .................................. 5.04
(b) .................................. 10.03
Section 318(a) .................................. 1.07
This Reconciliation and tie shall not, for any purpose, be
deemed to be a part of the Indenture.
A-2
EXECUTION COPY
RURAL CELLULAR CORPORATION
TO
U.S. BANK NATIONAL ASSOCIATION,
as Trustee
INDENTURE
Dated as of August 1, 2003
$325,000,000
9 7/8%..... Senior Notes due 2010
9 7/8% Series B Senior Notes due 2010
TABLE OF CONTENTS
Page
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ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION........................ 1
Section 1.01 Definitions.................................................................... 1
Section 1.02 Compliance Certificates and Opinions........................................... 29
Section 1.03 Form of Documents Delivered to Trustee......................................... 30
Section 1.04 Acts of Holders; Record Date................................................... 30
Section 1.05 Notices, Etc., to Trustee and Company.......................................... 31
Section 1.06 Notice to Holders; Waiver...................................................... 32
Section 1.07 Conflict with Trust Indenture Act.............................................. 32
Section 1.08 Effect of Headings and Table of Contents....................................... 32
Section 1.09 Successors and Assigns......................................................... 33
Section 1.10 Separability Clause............................................................ 33
Section 1.11 Benefits of Indenture.......................................................... 33
Section 1.12 Governing Law.................................................................. 33
Section 1.13 Legal Holidays................................................................. 33
Section 1.14 No Personal Liability of Directors, Officers, Employees, and
Shareholders................................................................... 33
Section 1.15 Counterparts................................................................... 34
ARTICLE II SECURITY FORMS................................................................. 34
Section 2.01 Forms Generally................................................................ 34
Section 2.02 Form of Face of Security....................................................... 34
Section 2.03 Form of Reverse of Security.................................................... 37
Section 2.04 Form of Trustee's Certificate of Authentication................................ 41
ARTICLE III THE SECURITIES................................................................. 41
Section 3.01 Title and Terms................................................................ 41
Section 3.02 Denominations.................................................................. 43
Section 3.03 Execution, Authentication, Delivery and Dating................................. 43
Section 3.04 Temporary Securities........................................................... 44
Section 3.05 Global Securities.............................................................. 44
Section 3.06 Registration; Registration of Transfer and Exchange Generally; Certain
Transfers and Exchanges; Securities Act Legends................................ 46
Section 3.07 Mutilated, Destroyed, Lost and Stolen Securities............................... 50
Section 3.08 Payment of Interest; Interest Rights Preserved................................. 50
Section 3.09 Persons Deemed Owners.......................................................... 52
Section 3.10 Cancellation................................................................... 52
Section 3.11 Computation of Interest........................................................ 52
ARTICLE IV SATISFACTION AND DISCHARGE..................................................... 52
Section 4.01 Satisfaction and Discharge of Indenture........................................ 52
Section 4.02 Application of Trust Money..................................................... 53
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Page
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ARTICLE V REMEDIES....................................................................... 54
Section 5.01 Events of Default.............................................................. 54
Section 5.02 Acceleration of Maturity; Rescission and Annulment............................. 55
Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee................ 57
Section 5.04 Trustee May File Proofs of Claim............................................... 57
Section 5.05 Trustee May Enforce Claims Without Possession of Securities.................... 58
Section 5.06 Application of Money Collected................................................. 58
Section 5.07 Limitation on Suits............................................................ 58
Section 5.08 Unconditional Right of Holders to Receive Principal, Premium, Interest
and Liquidated Damages......................................................... 59
Section 5.09 Restoration of Rights and Remedies............................................. 59
Section 5.10 Rights and Remedies Cumulative................................................. 59
Section 5.11 Delay or Omission Not Waiver................................................... 60
Section 5.12 Control by Holders............................................................. 60
Section 5.13 Waiver of Past Defaults........................................................ 60
Section 5.14 Undertaking for Costs.......................................................... 61
Section 5.15 Waiver of Stay or Extension Laws............................................... 61
ARTICLE VI THE TRUSTEE.................................................................... 61
Section 6.01 Certain Duties and Responsibilities............................................ 61
Section 6.02 Notice of Defaults............................................................. 62
Section 6.03 Certain Rights of Trustee...................................................... 62
Section 6.04 Not Responsible for Recitals or Issuance of Securities......................... 64
Section 6.05 May Hold Securities............................................................ 64
Section 6.06 Money Held in Trust............................................................ 64
Section 6.07 Compensation and Reimbursement................................................. 64
Section 6.08 Disqualification; Conflicting Interests........................................ 65
Section 6.09 Corporate Trustee Required; Eligibility........................................ 65
Section 6.10 Resignation and Removal; Appointment of Successor.............................. 65
Section 6.11 Acceptance of Appointment by Successor......................................... 67
Section 6.12 Merger, Conversion, Consolidation or Succession to Business.................... 67
Section 6.13 Preferential Collection of Claims Against Company.............................. 67
Section 6.14 Appointment of Authenticating Agent............................................ 68
ARTICLE VII HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY.............................. 69
Section 7.01 Company to Furnish Trustee Names and Addresses of Holders...................... 69
Section 7.02 Preservation of Information; Communications to Holders......................... 70
Section 7.03 Reports by Trustee............................................................. 70
Section 7.04 Reports by Company............................................................. 70
ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE........................... 71
Section 8.01 Company May Consolidate, Etc. Only on Certain Terms............................ 71
ii
Page
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Section 8.02 Successor Substituted.......................................................... 72
ARTICLE IX SUPPLEMENTAL INDENTURES........................................................ 73
Section 9.01 Supplemental Indentures Without Consent of Holders............................. 73
Section 9.02 Supplemental Indentures with Consent of Holders................................ 73
Section 9.03 Execution of Supplemental Indentures........................................... 75
Section 9.04 Effect of Supplemental Indentures.............................................. 75
Section 9.05 Conformity with Trust Indenture Act............................................ 75
Section 9.06 Reference in Securities to Supplemental Indentures............................. 75
Section 9.07 Notice of Supplemental Indenture............................................... 75
ARTICLE X COVENANTS...................................................................... 75
Section 10.01 Payment of Principal, Premium and Interest..................................... 75
Section 10.02 Maintenance of Office or Agency................................................ 76
Section 10.03 Money for Security Payments to be Held in Trust................................ 76
Section 10.04 Existence...................................................................... 78
Section 10.05 Maintenance of Properties...................................................... 78
Section 10.06 Payment of Taxes............................................................... 78
Section 10.07 Maintenance of Insurance....................................................... 78
Section 10.08 Limitation on Consolidated Indebtedness........................................ 79
Section 10.09 Limitation on Preferred Stock of Restricted Subsidiaries....................... 82
Section 10.10 Limitation on Restricted Payments.............................................. 82
Section 10.11 Limitations Concerning Distributions and Transfers By Restricted
Subsidiaries................................................................... 84
Section 10.12 Limitations on Liens........................................................... 86
Section 10.13 Limitation on Transactions with Affiliates..................................... 89
Section 10.14 Limitation on Asset Sales and Sales of Subsidiary Stock........................ 90
Section 10.15 Limitation on Activities of the Company and its Restricted Subsidiaries........ 93
Section 10.16 Change of Control.............................................................. 93
Section 10.17 Statement by Officers as to Default; Compliance Certificates................... 94
Section 10.18 Waiver of Certain Covenants.................................................... 95
Section 10.19 Payments for Consent........................................................... 95
Section 10.20 Covenants upon Attainment and Maintenance of an Investment Grade Rating........ 95
ARTICLE XI REDEMPTION OF SECURITIES....................................................... 96
Section 11.01 Right of Redemption............................................................ 96
Section 11.02 Applicability of Article XI.................................................... 96
Section 11.03 Election to Redeem; Notice to Trustee.......................................... 97
Section 11.04 Selection by Trustee of Securities to Be Redeemed.............................. 97
Section 11.05 Notice of Redemption........................................................... 97
Section 11.06 Deposit of Redemption Price.................................................... 98
Section 11.07 Securities Payable on Redemption Date.......................................... 98
Section 11.08 Securities Redeemed in Part.................................................... 99
ARTICLE XII DEFEASANCE AND COVENANT DEFEASANCE............................................. 99
Section 12.01 Company's Option to Effect Defeasance or Covenant Defeasance................... 99
iii
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Section 12.02 Defeasance and Discharge....................................................... 99
Section 12.03 Covenant Defeasance............................................................ 100
Section 12.04 Conditions to Defeasance or Covenant Defeasance................................ 100
Section 12.05 Deposited Money and U.S. Government Obligations to be Held in Trust;
Other Miscellaneous Provisions................................................. 102
Section 12.06 Reinstatement.................................................................. 102
iv
