EXECUTION COPY
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XXXXXXX COMPANIES, INC.
ISSUER
TO
MANUFACTURERS AND TRADERS TRUST COMPANY
TRUSTEE
THE SUBSIDIARY GUARANTORS NAMED HEREIN
GUARANTORS
____________________
INDENTURE
Dated as of July 25, 1997
_____________________
$250,000,000
10 1/2% Senior Subordinated Notes due 2004
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XXXXXXX COMPANIES, INC.
RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT
OF 1939 AND INDENTURE, DATED AS OF JULY 25, 1997
TRUST INDENTURE
ACT SECTION INDENTURE SECTION
Section 310(a)(1)....................................... 607(a)
(a)(2)....................................... 607(a)
(b).......................................... 607(b), 608
Section 312(c).......................................... 701
Section 314(a).......................................... 703
(a)(4)....................................... 1008(a)
(c)(1)....................................... 102
(c)(2)....................................... 102
(e).......................................... 102
Section 315(b).......................................... 601
Section 316(a)(last
sentence).................................... 101 ("Outstanding")
(a)(1)(A).................................... 502, 512
(a)(1)(B).................................... 513
(b).......................................... 508
(c).......................................... 104(d)
Section 317(a)(1)....................................... 503
(a)(2)....................................... 504
(b).......................................... 1003
Section 318(a).......................................... 111
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Note: This reconciliation and tie shall not, for any purpose, be deemed to
be a part of the Indenture.
TABLE OF CONTENTS
SECTION PAGE
PARTIES....................................................................... 1
RECITALS OF THE COMPANY....................................................... 1
ARTICLE ONE
Definitions and Other Provisions
of General Application
SECTION 101. Definitions.................................................... 2
"Acquired Indebtedness"........................................ 2
"Act".......................................................... 2
"Affiliate".................................................... 3
"Asset Sale"................................................... 3
"Average Life to Stated Maturity".............................. 3
"Bankruptcy Law"............................................... 3
"Banks"........................................................ 3
"Board of Directors"........................................... 3
"Board Resolution"............................................. 4
"Borrowing Base Amount"........................................ 4
"Business Day"................................................. 4
"Capital Lease Obligation"..................................... 4
"Capital Stock"................................................ 4
"Change of Control"............................................ 4
"Change of Control Purchase Date".............................. 5
"Change of Control Purchase Offer"............................. 5
"Change of Control Purchase Price"............................. 5
"Change of Control Triggering Event"........................... 5
"Commission"................................................... 5
"Common Stock"................................................. 5
"Company"...................................................... 5
"Company Request" or "Company Order"........................... 6
"Consolidated"................................................. 6
"Consolidated Fixed Charge Coverage Ratio"..................... 6
"Consolidated Income Tax Expense".............................. 6
"Consolidated Interest Expense"................................ 6
"Consolidated Net Income"...................................... 7
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NOTE: THIS TABLE OF CONTENTS SHALL NOT, FOR ANY PURPOSE, BE DEEMED TO BE A
PART OF THE INDENTURE.
ii
SECTION PAGE
"Consolidated Net Sales"....................................... 7
"Consolidated Net Worth"....................................... 7
"Consolidated Non-Cash Charges"................................ 8
"Consolidated Tangible Assets"................................. 8
"Consolidated Total Assets".................................... 8
"Corporate Trust Office"....................................... 8
"Currency Agreements".......................................... 8
"Custodian".................................................... 8
"Default"...................................................... 8
"Defaulted Interest"........................................... 8
"Depositary"................................................... 9
"Designated Senior Indebtedness"............................... 9
"Disinterested Director"....................................... 9
"Equity Interest".............................................. 9
"Event of Default"............................................. 9
"Exchange Act"................................................. 9
"Exchange Notes"............................................... 9
"Exchange Offer"............................................... 9
"Exchange Offer Registration Statement"........................ 9
"Excluded Non-Cash Charges".................................... 9
"Fair Market Value"............................................10
"Fixed Rate Senior Note Indenture".............................10
"Fixed Rate Senior Notes"......................................10
"Floating Rate Senior Note Indenture"..........................10
"Floating Rate Senior Notes"...................................10
"Generally Accepted Accounting Principles" or "GAAP"...........10
"Guaranteed Debt"..............................................10
"Guaranteed Obligations".......................................10
"Holder".......................................................11
"Indebtedness".................................................11
"Indenture"....................................................11
"Initial Notes"................................................11
"Interest Payment Date"........................................12
"Interest Rate Agreements".....................................12
"Investee Store"...............................................12
"Investment"...................................................12
"Investment Grade".............................................12
"Joint Venture"................................................12
"Lien".........................................................13
"Liquidated Damages"...........................................13
"Maturity".....................................................13
"Medium-Term Notes"............................................13
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SECTION PAGE
"Medium-Term Notes Indenture"..................................13
"Moody's"......................................................13
"Net Proceeds".................................................13
"Net Property and Equipment"...................................13
"New Credit Agreement".........................................13
"9 1/2% Debentures"............................................14
"9 1/2% Debentures Indenture"..................................14
"Non-Payment Default"..........................................14
"Non-Recourse Debt"............................................14
"Note Guarantee"...............................................14
"Notes"........................................................14
"Notes due 2007"...............................................14
"Notes due 2007 Indenture".....................................14
"Obligations"..................................................14
"Offering".....................................................15
"Officers' Certificate"........................................15
"Opinion of Counsel"...........................................15
"Outstanding"..................................................15
"PARI PASSU Indebtedness"......................................16
"Paying Agent".................................................16
"Payment Blockage Notice"......................................16
"Payment Default"..............................................16
"Permitted Consideration"......................................16
"Permitted Indebtedness".......................................16
"Permitted Investment".........................................19
"Permitted Junior Securities"..................................20
"Permitted Liens"..............................................20
"Permitted Receivables Financing"..............................22
"Person".......................................................22
"Predecessor Note".............................................22
"Preferred Stock"..............................................22
"Prior Indentures".............................................22
"Public Equity Offering".......................................22
"Qualified Capital Stock"......................................23
"Qualified Finance Subsidiary".................................23
"Qualified TIPS Transaction"...................................23
"Qualified Subordinated Indebtedness"..........................23
"Rating Agency"................................................23
"Rating Category"..............................................23
"Rating Decline"...............................................24
"Redeemable Capital Stock".....................................24
"Redemption Date"..............................................24
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SECTION PAGE
"Redemption Price".............................................24
"Registration Rights Agreement"................................24
"Regular Record Date"..........................................24
"Regulation S".................................................24
"Regulation S Global Note".....................................24
"Responsible Officer"..........................................24
"Restricted Global Note".......................................25
"Restricted Subsidiary"........................................25
"Rule 144A"....................................................25
"Securities Act"...............................................25
"Security Register" and "Security Registrar"...................25
"Senior Indebtedness"..........................................25
"Senior Note Guarantees".......................................26
"Significant Subsidiary".......................................26
"S&P"..........................................................26
"Special Record Date"..........................................26
"Stated Maturity"..............................................26
"Subordinated Indebtedness"....................................26
"Subsidiary"...................................................26
"Subsidiary Guarantor".........................................26
"Tangible Assets"..............................................26
"Temporary Cash Investments"...................................27
"Transferred Receivables"......................................27
"Trust Indenture Act" or "TIA".................................27
"Trustee"......................................................27
"Unrestricted Subsidiary"......................................27
"U.S. Government Obligations"..................................28
"Vice President"...............................................29
"Voting Stock".................................................29
"Wholly Owned Restricted Subsidiary"...........................29
102. Compliance Certificates and Opinions...........................29
103. Form of Documents Delivered to Trustee.........................30
104. Acts of Holders................................................30
105. Notices, Etc., to Trustee, Company and Subsidiary
Guarantors...................................................32
106. Notice to Holders; Waiver......................................32
107. Effect of Headings and Table of Contents.......................33
108. Successors and Assigns.........................................33
109. Separability Clause............................................33
110. Benefits of Indenture..........................................33
111. Governing Law..................................................33
112. Legal Holidays.................................................33
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SECTION PAGE
ARTICLE TWO
Note Forms
201. Forms Generally.............................................. 34
202. Restrictive Legends.......................................... 35
203. Form of Face of Note......................................... 37
204. Form of Reverse of Note...................................... 38
205. Form of Trustee's Certificate of Authentication.............. 42
ARTICLE THREE
The Notes
301. Title and Terms.............................................. 42
302. Denominations................................................ 43
303. Execution, Authentication, Delivery and Dating............... 43
304. Temporary Notes.............................................. 44
305. Registration, Registration of Transfer and Exchange.......... 45
306. Mutilated, Destroyed, Lost and Stolen Notes.................. 46
307. Payment of Interest; Interest Rights Preserved............... 47
308. Persons Deemed Owners........................................ 48
309. Cancellation................................................. 48
310. Computation of Interest...................................... 49
311. Book-Entry Provisions for Global Notes....................... 49
312. Transfer and Exchange........................................ 50
313. CUSIP Numbers................................................ 54
ARTICLE FOUR
Satisfaction and Discharge
401. Satisfaction and Discharge of Indenture...................... 54
402. Application of Trust Money................................... 55
ARTICLE FIVE
Remedies
501. Events of Default............................................ 56
502. Acceleration of Maturity; Rescission and Annulment........... 58
503. Collection of Indebtedness and Suits for Enforcement by
Trustee.................................................... 59
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SECTION PAGE
504. Trustee May File Proofs of Claim............................. 60
505. Trustee May Enforce Claims Without Possession of Notes....... 61
506. Application of Money Collected............................... 61
507. Limitation on Suits.......................................... 61
508. Unconditional Right of Holders to Receive Principal,
Premium and Interest....................................... 62
509. Restoration of Rights and Remedies........................... 62
510. Rights and Remedies Cumulative............................... 63
511. Delay or Omission Not Waiver................................. 63
512. Control by Holders........................................... 63
513. Waiver of Past Defaults...................................... 64
514. Waiver of Stay or Extension Laws............................. 64
515. Notice of Defaults........................................... 64
ARTICLE SIX
The Trustee
601. Notice of Defaults........................................... 65
602. Certain Rights of Trustee.................................... 65
603. Trustee Not Responsible for Recitals or Issuance of Notes.... 66
604. May Hold Notes............................................... 67
605. Money Held in Trust.......................................... 67
606. Compensation and Reimbursement............................... 67
607. Corporate Trustee Required; Eligibility...................... 68
608. Resignation and Removal; Appointment of Successor............ 68
609. Acceptance of Appointment by Successor....................... 69
610. Merger, Conversion, Consolidation or Succession to Business.. 70
ARTICLE SEVEN
Holders' Lists and Reports by Trustee, Company and Subsidiary Guarantors
701. Disclosure of Names and Addresses of Holders................. 70
702. Reports by Trustee........................................... 71
703. Reports by Company and Subsidiary Guarantors................. 71
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SECTION PAGE
ARTICLE EIGHT
Consolidation, Merger, Sale of Assets
801. Company May Consolidate, Etc., Only on Certain Terms......... 72
802. Successor Substituted........................................ 74
803. Notes to Be Secured in Certain Events........................ 74
ARTICLE NINE
Supplemental Indentures
901. Supplemental Indentures Without Consent of Holders........... 74
902. Supplemental Indentures with Consent of Holders.............. 75
903. Execution of Supplemental Indentures......................... 76
904. Effect of Supplemental Indentures............................ 77
905. Conformity with Trust Indenture Act.......................... 77
906. Reference in Notes to Supplemental Indentures................ 77
907. Notice of Supplemental Indentures............................ 77
ARTICLE TEN
Covenants
1001. Payment of Principal, Premium, If Any, and Interest......... 78
1002. Maintenance of Office or Agency............................. 78
1003. Money for Note Payments to Be Held in Trust................. 79
1004. Corporate Existence......................................... 80
1005. Payment of Taxes and Other Claims........................... 80
1006. Maintenance of Properties................................... 81
1007. Insurance................................................... 81
1008. Statement by Officers as to Default......................... 81
1009. Purchase of Notes upon a Change of Control Triggering Event. 81
1010. Limitation on Indebtedness.................................. 83
1011. Limitation on Restricted Payments........................... 83
1012. Limitation on Layering Indebtedness......................... 86
1013. Limitation on Transactions with Affiliates.................. 86
1014. Limitation on Liens Securing PARI PASSU Indebtedness or
Subordinated Indebtedness................................. 87
1015. Limitation on Dividend and Other Payment Restrictions
Affecting Subsidiaries.................................... 88
1016. Limitation on Sale of Assets................................ 89
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SECTION PAGE
1017. Limitation on Issuances and Sales of Capital Stock of
Subsidiaries.............................................. 91
1018. Additional Guarantees....................................... 91
1019. Provision of Financial Statements; Rule 144A Information.... 92
1020. Payment for Consent......................................... 92
1021. Termination of Certain Covenants in Event of Investment
Grade Rating.............................................. 92
1022. Waiver of Certain Covenants................................. 93
ARTICLE ELEVEN
Redemption of Notes
1101. Right of Redemption......................................... 93
1102. Applicability of Article.................................... 94
1103. Election to Redeem; Notice to Trustee....................... 94
1104. Selection by Trustee of Notes to Be Redeemed................ 94
1105. Notice of Redemption........................................ 94
1106. Deposit of Redemption Price................................. 95
1107. Notes Payable on Redemption Date............................ 95
1108. Notes Redeemed in Part...................................... 96
ARTICLE TWELVE
Note Guarantees
1201. Note Guarantees............................................. 96
1202. Execution and Delivery of Note Guarantee.................... 98
1203. Obligations of the Subsidiary Guarantors Unconditional...... 98
1204. Ranking of Note Guarantees.................................. 99
1205. Limitation of Note Guarantees............................... 99
1206. Release of Subsidiary Guarantors............................ 99
1207. Subsidiary Guarantors May Consolidate, Etc. on Certain
Terms..................................................... 100
ARTICLE THIRTEEN
Defeasance and Covenant Defeasance
1301. Company's Option to Effect Defeasance or Covenant
Defeasance................................................ 101
1302. Defeasance and Discharge.................................... 101
1303. Covenant Defeasance......................................... 101
1304. Conditions to Defeasance or Covenant Defeasance............. 102
1305. Deposited Money and U.S. Government Obligations to Be
Held in Trust; Other Miscellaneous Provisions............. 103
1306. Reinstatement............................................... 104
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SECTION PAGE
ARTICLE FOURTEEN
Subordination of Notes
1401. Notes Subordinate to Senior Indebtedness.................... 105
1402. Payment Over of Proceeds upon Dissolution, Etc. ............ 105
1403. Suspension of Payment When Senior Indebtedness in
Default................................................... 106
1404. Payment Permitted If No Default............................. 107
1405. Subrogation to Rights of Holders of Senior
Indebtedness.............................................. 107
1406. Provisions Solely to Define Relative Rights................. 107
1407. Trustee to Effectuate Subordination......................... 108
1408. No Waiver of Subordination Provisions....................... 108
1409. Notice to Trustee........................................... 109
1410. Reliance on Judicial Order or Certificate of Liquidating
Agent..................................................... 109
1411. Rights of Trustee As a Holder of Senior Indebtedness;
Preservation of Trustee's Rights.......................... 110
1412. Article Applicable to Paying Agents......................... 110
1413. No Suspension of Remedies................................... 110
1414. Trustee Not Fiduciary for Holders of Senior Indebtedness.... 110
EXHIBIT A Certificate to Be Delivered upon Registration of
Exchange or Transfer of Notes......................... A-1
EXHIBIT B Form of Note Guarantee................................ B-1
EXHIBIT C Form of Institutional Accredited Investor Letter...... C-1
Schedule A Indebtedness Outstanding on the Date of the Indenture
Schedule B Leases with PDM, Inc. Outstanding on the Date of
the Indenture
Schedule C Dividend and Other Payment Restrictions in Existence
on the Date of the Indenture
INDENTURE, dated as of July 25, 1997 among XXXXXXX COMPANIES, INC., a
corporation duly organized and existing under the laws of the State of Oklahoma
(herein called, the "Company"), having its principal office at 0000 Xxxxxxxxx
Xxxxxxxxx, P.O. Box 26647, Xxxxxxxx Xxxx, Xxxxxxxx 00000, each of the Subsidiary
Guarantors (as hereinafter defined), and Manufacturers and Traders Trust
Company, a New York banking corporation and trust company, trustee (herein
called, the "Trustee").
RECITALS OF THE COMPANY
The Company has duly authorized the creation of an issue of 10 1/2%
Senior Subordinated Notes due 2004 (the "Initial Notes") and 10 1/2% Series B
Senior Subordinated Notes due 2004 (the "Exchange Notes", and together with the
Initial Notes, the "Notes"), 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.
Upon the issuance of the Exchange Notes, if any, or the effectiveness
of the Shelf Registration Statement, this Indenture shall be subject to and
governed by the provisions of the Trust Indenture Act of 1939, as amended.
The Company, directly or indirectly, owns beneficially and of record
100% of the Capital Stock of the Subsidiary Guarantors; the Company and the
Subsidiary Guarantors are members of the same consolidated group of companies;
the Subsidiary Guarantors will derive direct and indirect economic benefit from
the issuance of the Notes; accordingly, the Subsidiary Guarantors have each duly
authorized the execution and delivery of this Indenture to provide for the
guarantee by each of them with respect to the Notes as set forth in this
Indenture.
All things necessary have been done to make the Notes, when executed
by the Company and authenticated and delivered hereunder and duly issued by the
Company, the valid obligations of the Company, to make the Note Guarantees of
each of the Subsidiary Guarantors, when executed by the respective Subsidiary
Guarantors and delivered hereunder, the valid obligations of the respective
Subsidiary Guarantors, and to make this Indenture a valid agreement of the
Company and each of the Subsidiary Guarantors, in accordance with their and its
terms.
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the Notes
by the Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders of the Notes, as follows:
2
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS
OF GENERAL APPLICATION
SECTION 101. DEFINITIONS.
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned to
them in this Article, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein, and the terms "cash transaction" and
"self-liquidating paper", as used in TIA Section 311, shall have the
meanings assigned to them in the rules of the Commission adopted under the
Trust Indenture Act;
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles, and, except as otherwise herein expressly provided, the term
"generally accepted accounting principles" with respect to any computation
required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation; PROVIDED, HOWEVER,
that with respect to any computation required pursuant to Sections 1009,
1010, 1011 and 1014, such term shall mean such accounting principles as are
generally accepted as of the date of this Indenture; and
(d) the words "herein", "hereof" and "hereunder" and other words of
similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision.
"Acquired Indebtedness" means Indebtedness of a Person (i) existing at
the time such Person becomes a Restricted Subsidiary of the Company or
(ii) assumed in connection with the acquisition of assets from such Person, in
each case, other than Indebtedness incurred in connection with, or in
contemplation of, such Person becoming a Restricted Subsidiary of the Company or
such acquisition.
"Act", when used with respect to any Holder, has the meaning specified
in Section 104.
3
"Affiliate" means, with respect to any specified Person, (i) any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person or (ii) any other Person that
owns, directly or indirectly, 5% or more of such Person's Capital Stock or any
executive officer or director of any such specified Person. For the purposes of
this definition, "control," when used with respect to any specified Person,
means the power to direct the management and policies of such Person, directly
or indirectly, whether through ownership of Voting Stock, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.
"Asset Sale" means (i) the sale, lease, conveyance or other
disposition of any assets (including, without limitation, by way of a sale and
leaseback), other than sales of inventory in the ordinary course of business
consistent with past practices (PROVIDED that the sale, lease, conveyance or
other disposition of all or substantially all of the assets of the Company and
its Restricted Subsidiaries taken as a whole will be governed by Section 1009
and/or Article Eight and not by Section 1016) and (ii) the issue or sale by the
Company or any of its Restricted Subsidiaries of Equity Interests of any of the
Company's Restricted Subsidiaries, whether in a single transaction or a series
of related transactions, in either case, (a) that have a fair market value in
excess of $1.0 million or (b) for net proceeds in excess of $1.0 million.
Notwithstanding the foregoing, a transfer of assets by the Company to a Wholly
Owned Restricted Subsidiary or by a Wholly Owned Restricted Subsidiary to the
Company or to another Wholly Owned Restricted Subsidiary, or by a Restricted
Subsidiary to any other Restricted Subsidiary in which the Company holds a
larger proportionate Equity Interest, shall not be deemed to be an Asset Sale.
"Average Life to Stated Maturity" means, as of the date of
determination with respect to any Indebtedness, the quotient obtained by
dividing (i) the sum of the products of (A) the number of years from the date of
determination to the date or dates of each successive scheduled principal
payment of such Indebtedness multiplied by (B) the amount of each such principal
payment by (ii) the sum of all such principal payments.
"Bankruptcy Law" means Xxxxx 00, Xxxxxx Xxxxxx Bankruptcy Code of
1978, as amended, or any similar United States federal or state law relating to
bankruptcy, insolvency, receivership, winding-up, liquidation, reorganization or
relief of debtors or any amendment to, succession to or change in any such law.
"Banks" means the banks and other financial institutions from time to
time that are lenders under the New Credit Agreement.
"Board of Directors" means either the board of directors of the
Company or any duly authorized committee of that board, and, with respect to any
Subsidiary Guarantor, either the board of directors of such Subsidiary Guarantor
or any duly authorized committee of that board.
4
"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 and to be in full force and effect on the date of such
certification, and delivered to the Trustee, and, with respect to a Subsidiary
Guarantor, a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Subsidiary Guarantor to have been duly adopted by its Board of
Directors and to be in full force and effect on the date of such certification,
and delivered to the Trustee.
"Borrowing Base Amount" means, as to the Company, 90% of Net Property
and Equipment, determined on a consolidated basis in accordance with GAAP.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in The City of New York
are authorized or obligated by law or executive order to close.
"Capital Lease Obligation" of any Person means any obligation of such
Person and its Subsidiaries on a Consolidated basis under any capital lease of
real or personal property which, in accordance with GAAP, has been recorded as a
capitalized lease obligation.
"Capital Stock" of any Person means any and all shares, interest,
partnership interests, participations or other equivalents (however designated)
of such Person's capital stock whether now outstanding or issued after the date
of the Indentures, including, without limitation, all common stock and preferred
stock.
"Change of Control" means the occurrence of any of the following
events: (i) any "person" or "group" (as such terms are used in Sections
13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial owner" (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person
shall be deemed to have beneficial ownership of all shares that such Person has
the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of more than 50% of the
total outstanding Voting Stock of the Company; (ii) during any period of two
consecutive years, individuals who at the beginning of such period constituted
the Board of Directors of the Company (together with any new directors whose
election to such Board of Directors, or whose nomination for election by the
stockholders of the Company, was approved by a vote of 66 2/3% of the directors
then still in office who were either directors at the beginning of such period
or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of such Board of Directors then in
office; (iii) the Company consolidates with or merges with or into any Person or
conveys, transfers, leases or otherwise disposes of all or substantially all of
its assets to any Person, or any Person consolidates with or merges into or with
the Company, in any such event pursuant to a transaction in which the
outstanding Voting Stock of the Company is changed into or
5
exchanged for cash, securities or other property, other than any such
transaction where the outstanding Voting Stock of the Company is not changed
or exchanged at all (except to the extent necessary to reflect a change in
the jurisdiction of incorporation of the Company) or where (A) the
outstanding Voting Stock of the Company is changed into or exchanged for (x)
Voting Stock of the surviving corporation which is not Redeemable Capital
Stock or (y) cash, securities or other property (other than Capital Stock of
the surviving corporation) in an amount which could be paid by the Company as
a Restricted Payment as described under Section 1011, and (B) immediately
after such transaction, no "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act) is the "beneficial owner" (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a Person
shall be deemed to have beneficial ownership of all shares that such Person
has the right to acquire, whether such right is exercisable immediately or
only after the passage of time), directly or indirectly, of more than 50% of
the total outstanding Voting Stock of the surviving corporation; or (iv) the
Company is liquidated or dissolved or adopts a plan of liquidation or
dissolution other than in a transaction which complies with the provisions of
Article Eight.
"Change of Control Purchase Date" has the meaning specified in Section
1009.
"Change of Control Purchase Offer" has the meaning specified in
Section 1009.
"Change of Control Purchase Price" has the meaning specified in
Section 1009.
"Change of Control Triggering Event" means the occurrence of both a
Change of Control and a Rating Decline.
"Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act then the
body performing such duties at such time.
"Common Stock" means, with respect to any Person, any and all shares,
interests, participations and other equivalents (however designated, whether
voting or non-voting) of such Person's common stock, whether now outstanding or
issued after the date of this Indenture, including, without limitation, all
series and classes of such common stock.
"Company" means the Person named as the "Company" in the first
paragraph of this Indenture, until a successor Person shall have become such
pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
6
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company by its Chairman, any Vice Chairman, its
President, any Vice President, its Treasurer or an Assistant Treasurer, and
delivered to the Trustee.
"Consolidated" means, with respect to any Person, the consolidation of
the accounts of such Person and each of its subsidiaries if and to the extent
the accounts of such Person and each of its subsidiaries would normally be
consolidated with those of such Person, all in accordance with GAAP consistently
applied.
"Consolidated Fixed Charge Coverage Ratio" of the Company means, for
any period, the ratio of (a) Consolidated Net Income, plus, without duplication,
Consolidated Interest Expense, Consolidated Income Tax Expense, Consolidated
Non-Cash Charges and Excluded Non-Cash Charges (less the amount of all cash
payments made by the Company or any of its Restricted Subsidiaries during such
period to the extent such payments relate to Excluded Non-Cash Charges that were
added back in determining the sum contemplated by this clause (a) for such
period or any prior period) deducted in computing Consolidated Net Income, in
each case, for such period, of the Company and its Restricted Subsidiaries on a
Consolidated basis, all determined in accordance with GAAP to (b) Consolidated
Interest Expense for such period; PROVIDED that (i) in making such computation,
the Consolidated Interest Expense attributable to interest on any Indebtedness
computed on a PRO FORMA basis and (A) bearing a floating interest rate shall be
computed as if the rate in effect on the date of computation had been the
applicable rate for the entire period and (B) which was not outstanding during
the period for which the computation is being made but which bears, at the
option of the Company, a fixed or floating rate of interest, shall be computed
by applying, at the option of the Company, either the fixed or floating rate and
(ii) in making such computation, Consolidated Interest Expense attributable to
interest on any Indebtedness under a revolving credit facility computed on a PRO
FORMA basis shall be computed based upon the average daily balance of such
Indebtedness during the applicable period.
"Consolidated Income Tax Expense" means for any period the provision
for federal, state, local and foreign income taxes of the Company and its
Restricted Subsidiaries for such period as determined on a Consolidated basis in
accordance with GAAP.
"Consolidated Interest Expense" means, without duplication, for any
period, the sum of (A) the interest expense of the Company and its Restricted
Subsidiaries for such period, as determined on a Consolidated basis in
accordance with GAAP including, without limitation, (i) amortization of debt
discount, (ii) the net cost under Interest Rate Agreements (including
amortization of discount), (iii) the interest portion of any deferred payment
obligation and (iv) accrued interest, plus (B) the aggregate amount for such
period of dividends on any Redeemable Capital Stock or Preferred Stock of the
Company and its Restricted Subsidiaries, (C) the interest component of the
Capital Lease Obligations paid, accrued and/or scheduled to be paid, or accrued
by such Person during such period and
7
(D) all capitalized interest of the Company and its Restricted Subsidiaries
in each case under each of (A) through (D) determined on a Consolidated basis
in accordance with GAAP.
"Consolidated Net Income" means, for any period, the Consolidated net
income (or loss) of the Company and its Restricted Subsidiaries for such period
as determined on a Consolidated basis in accordance with GAAP, adjusted, to the
extent included in calculating such net income (loss), by excluding, without
duplication, (i) any net after-tax extraordinary gains or losses (less all fees
and expenses relating thereto), (ii) up to $20 million of any charges taken with
respect to the "Premium Sales" litigation matters, which are described under (4)
in Item 3 (Legal Proceedings) of the Company's Annual Report on Form 10-K for
fiscal year 1996 plus up to an additional $2,500,000 with respect to fees and
expenses of the Company's counsel in connection with such litigation matters,
(iii) Excluded Non-Cash Charges (less the amount of all cash payments made by
the Company or any of its Restricted Subsidiaries during such period to the
extent such payments relate to Excluded Non-Cash Charges that were added back in
determining the sum contemplated by clause (a) of the definition of
"Consolidated Fixed Charge Coverage Ratio"), (iv) the portion of net income (or
loss) of the Company and its Restricted Subsidiaries determined on a
Consolidated basis allocable to minority interests in unconsolidated Persons to
the extent that cash dividends or distributions have not actually been received
by the Company or any Restricted Subsidiary; (v) net income (or loss) of any
Person combined with the Company or any Restricted Subsidiary on a "pooling of
interests" basis attributable to any period prior to the date of combination,
(vi) net gains or losses (less all fees and expenses relating thereto) in
respect of dispositions of assets other than in the ordinary course of business
and (vii) the net income of any Restricted Subsidiary to the extent that the
declaration of dividends or similar distributions by that Restricted Subsidiary
of that income is not at the time permitted, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument, judgment,
decree, order, statute, rule or governmental regulation applicable to that
Restricted Subsidiary or its shareholders.
"Consolidated Net Sales" means, for any period, the consolidated net
sales of the Company and its Restricted Subsidiaries for such period, as
determined in accordance with GAAP.
"Consolidated Net Worth" means, with respect to any Person as of any
date, the sum of (i) the consolidated equity of the common equity holders of
such Person and its Restricted Subsidiaries as of such date plus (ii) the
respective amounts reported on such Person's balance sheet as of such date with
respect to any series of preferred stock (other than Redeemable Capital Stock)
that by its terms is not entitled to the payment of dividends unless such
dividends may be declared and paid only out of net earnings in respect of the
year of such declaration and payment, but only to the extent of any cash
received by such Person upon issuance of such preferred stock, less (a) all
write-ups (other than write-ups resulting from foreign currency translations and
write-ups of tangible assets of a going
8
concern business made within 12 months after the acquisition of such business)
subsequent to the date of the Indentures in the book value of any asset owned
by such Person or a consolidated Restricted Subsidiary of such Person, (b) all
investments as of such date in unconsolidated Restricted Subsidiaries and in
Persons that are not Subsidiaries (except, in each case, Permitted Investments),
and (c) all unamortized debt discount and expense and unamortized deferred
charges as of such date, all of the foregoing determined in accordance with
GAAP.
"Consolidated Non-Cash Charges" means, for any period, the aggregate
depreciation, amortization and other non-cash charges of the Company and its
Restricted Subsidiaries for such period, as determined on a Consolidated basis
in accordance with GAAP (excluding any non-cash charges which require an accrual
or reserve for any future period and any Excluded Non-Cash Charges).
"Consolidated Tangible Assets" means the total of all the assets
appearing on the Consolidated balance sheet of the Company and its
majority-owned or Wholly Owned Restricted Subsidiaries less (i) intangible
assets including, without limitation, items such as goodwill, trademarks, trade
names, patents and unamortized debt discount and (ii) appropriate adjustments on
account of minority interests of other persons holding stock in any
majority-owned Restricted Subsidiary of the Company.
"Consolidated Total Assets" means, with respect to the Company, the
total of all assets appearing on the Consolidated balance sheet of the Company
and its Subsidiaries, as determined on a Consolidated basis in accordance with
GAAP.
"Corporate Trust Office" means a corporate trust office of the
Trustee, at which at any particular time its corporate trust business shall be
administered, which office at the date of execution of this Indenture is located
at 00 Xxxxxxxx - 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000.
"Currency Agreements" means any spot or forward foreign exchange
agreements and currency swap, currency option or other similar financial
agreements or arrangements entered into by the Company or any of its Restricted
Subsidiaries in the ordinary course of business and designed to protect against
or manage exposure to fluctuations in foreign currency exchange rates.
"Custodian" has the meaning specified in Section 201.
"Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
"Defaulted Interest" has the meaning specified in Section 307.
9
"Depositary" means The Depository Trust Company, its nominees and
their respective successors.
"Designated Senior Indebtedness" means (i) any Senior Indebtedness
outstanding under the New Credit Agreement; (ii) any Senior Indebtedness in
respect of the Fixed Rate Senior Notes, the Floating Rate Senior Notes, the
9 1/2% Debentures and the Medium-Term Notes; and (iii) any other Senior
Indebtedness, the principal amount of which is $50 million or more and that has
been designated by the Company as "Designated Senior Indebtedness."
"Disinterested Director" means, with respect to any transaction or
series of transactions in respect of which the Board of Directors is required to
deliver a resolution of the Board of Directors under the Indenture, a member of
the Board of Directors who does not have any material direct or indirect
financial interest in or with respect to such transaction or series of
transactions.
"Equity Interest" of any Person means any shares, interests,
participations or other equivalents (however designated) in such Person's
equity, and shall in any event include any Capital Stock issued by, or
partnership or membership interests in, such Person.
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Exchange Notes" has the meaning stated in the first recital of this
Indenture and refers to any Exchange Notes containing terms substantially
identical to the Initial Notes (except that (i) such Exchange Notes shall not
contain terms with respect to transfer restrictions and shall be registered
under the Securities Act, and (ii) certain provisions relating to an increase in
the stated rate of interest thereon shall be eliminated) that are issued and
exchanged for the Initial Notes in accordance with the Exchange Offer, as
provided for in the Registration Rights Agreement and this Indenture.
"Exchange Offer" means the offer by the Company to the Holders of the
Initial Notes to exchange all of the Initial Notes for Exchange Notes, as
provided for in the Registration Rights Agreement.
"Exchange Offer Registration Statement" means the Exchange Offer
Registration Statement as defined in the Registration Rights Agreement.
"Excluded Non-Cash Charges" means all non-cash charges with respect to
(A) write-downs of the carrying value in the Company's financial statements of
certain retail and distribution facilities and related assets in connection with
the proposed or actual disposition
10
of such facilities or discontinuance of operations at such facilities or (B)
other consolidation and restructuring of facilities and operations.
"Fair Market Value" means, with respect to any asset or property, a
price which could be negotiated in an arm's length transaction, for cash,
between a willing seller and a willing buyer, neither of whom is under undue
pressure to complete the transaction. Fair Market Value shall be determined by
the Board of Directors of the Company acting in good faith and shall be
evidenced by a Board Resolution.
"Fixed Rate Senior Note Indenture" means the Indenture dated as of
December 15, 1994 among the Company, as issuer, each of the subsidiary
guarantors named therein as guarantors, and Texas Commerce Bank, National
Association, as trustee.
"Fixed Rate Senior Notes" means the 10 5/8% Senior Notes due 2001 of
the Company.
"Floating Rate Senior Note Indenture" means the Indenture dated as of
December 15, 1994 among the Company, as issuer, each of the subsidiary
guarantors named therein as guarantors, and Texas Commerce Bank, National
Association, as trustee.
"Floating Rate Senior Notes" means the Floating Rate Senior Notes due
2001 of the Company.
"Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles in the United States, as in effect on the date of
this Indenture.
"Guaranteed Debt" means, with respect to any Person, without
duplication, all Indebtedness of any other Person referred to in the definition
of Indebtedness contained herein guaranteed directly or indirectly in any manner
by such Person, or in effect guaranteed directly or indirectly by such Person
through an agreement (i) to pay or purchase such Indebtedness or to advance or
supply funds for the payment or purchase of such Indebtedness, (ii) to purchase,
sell or lease (as lessee or lessor) property, or to purchase or sell services,
primarily for the purpose of enabling the debtor to make payment of such
Indebtedness or to assure the holder of such Indebtedness against loss, (iii) to
supply funds to, or in any other manner invest in, the debtor (including any
agreement to pay for property or services without requiring that such property
be received or such services be rendered), (iv) to maintain working capital or
equity capital of the debtor, or otherwise to maintain the net worth, solvency
or other financial condition of the debtor or (v) otherwise to assure a creditor
against loss, PROVIDED that the term "guarantee" shall not include endorsements
for collection or deposit, in either case in the ordinary course of business.
"Guaranteed Obligations" has the meaning specified in Section 1201.
11
"Holder" means a Person in whose name a Note is registered in the
Security Register.
"Indebtedness" means, with respect to any Person, without duplication,
(i) all liabilities of such Person for borrowed money (including overdrafts) or
for the deferred purchase price of property or services, excluding any trade
payables and other accrued current liabilities arising in the ordinary course of
business, but including, without limitation, all obligations, contingent or
otherwise, of such Person in connection with any letters of credit and
acceptances issued under letter of credit facilities, acceptance facilities or
other similar facilities, (ii) all obligations of such Person evidenced by
bonds, notes, debentures or other similar instruments, (iii) all indebtedness of
such Person created or arising under any conditional sale or other title
retention agreement with respect to property acquired by such Person (even if
the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property), but
excluding trade payables arising in the ordinary course of business, (iv) all
Capital Lease Obligations of such Person, (v) all obligations under Interest
Rate Agreements or Currency Agreements of such Person, (vi) Indebtedness
referred to in clauses (i) through (v) above of other Persons, and all dividends
of other Persons the payment of which is secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien, upon or with respect to property (including, without limitation,
accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such Indebtedness, (vii) all
Guaranteed Debt of such Person (other than guarantees of preferred trust
securities or similar securities issued by a Qualified Finance Subsidiary),
(viii) all Redeemable Capital Stock valued at the greater of its voluntary or
involuntary maximum fixed repurchase price plus accrued and unpaid dividends,
(ix) Qualified Subordinated Indebtedness and (x) any amendment, supplement,
modification, deferral, renewal, extension, refunding or refinancing of any
liability of the types referred to in clauses (i) through (ix) above. For
purposes hereof, the "maximum fixed repurchase price" of any Redeemable Capital
Stock which does not have a fixed repurchase price shall be calculated in
accordance with terms of such Redeemable Capital Stock as if such Redeemable
Capital Stock were purchased on any date on which Indebtedness shall be required
to be determined pursuant to the Indentures, and if such price is based upon, or
measured by, the Fair Market Value of such Redeemable Capital Stock, such Fair
Market Value is to be determined in good faith by the Board of Directors of the
issuer of such Redeemable Capital Stock.
"Indenture" means this instrument as originally executed and as it may
from time to time be supplemented or amended by one or more indentures
supplemental hereto entered into pursuant to the applicable provisions hereof.
"Initial Notes" has the meaning specified in the recitals to this
Indenture.
12
"Interest Payment Date" means the Stated Maturity of an installment of
interest on the Notes.
"Interest Rate Agreements" means any interest rate protection
agreements and other types of interest rate hedging agreements (including,
without limitation, interest rate swaps, caps, floors, collars and similar
agreements).
"Investee Store" means a Person in which the Company or any of its
Restricted Subsidiaries has invested equity capital, to which it has made loans
or for which it has guaranteed loans, in accordance with the business practice
of the Company and its Restricted Subsidiaries of making equity investments in,
making loans to or guaranteeing loans made to Persons for the purpose of
assisting any such Person in acquiring, remodeling, refurbishing, expanding or
operating one or more retail grocery stores.
"Investment" means, with respect to any Person, directly or
indirectly, any advance (other than advances to customers in the ordinary course
of business, which are recorded as accounts receivable on the balance sheet of
the Company and its Restricted Subsidiaries), loan or other extension of credit
(including by way of guarantee) or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase, acquisitions or
ownership by such Person of any Capital Stock, bonds, notes, debentures or other
securities or assets issued or owned by any other Person. The Company shall be
deemed to make an Investment in an amount equal to the greater of the book value
(as determined in accordance with GAAP) and Fair Market Value of the net assets
of any Restricted Subsidiary (or, if neither the Company nor any of its
Restricted Subsidiaries has theretofore made an Investment in such Restricted
Subsidiary, in an amount equal to the Investments being made) at the time such
Restricted Subsidiary is designated an Unrestricted Subsidiary, and any property
transferred to an Unrestricted Subsidiary from the Company or any Restricted
Subsidiary shall be deemed an Investment valued at the greater of its book value
(as determined in accordance with GAAP) and its Fair Market Value at the time of
such transfer.
"Investment Grade" means BBB- or higher by S&P or Baa3 or higher by
Moody's or the equivalent of such ratings by S&P or Moody's or in the event S&P
or Moody's shall cease rating the Notes and the Company shall select any other
Rating Agency, the equivalent of such ratings by such other Rating Agency.
"Joint Venture" means any Person in which the Company or any of its
Restricted Subsidiaries owns 30% or more of the Voting Stock (other than as a
result of a Public Equity Offering).
13
"Lien" means any mortgage, charge, pledge, lien (statutory or
otherwise), privilege, security interest, hypothecation or other encumbrance
upon or with respect to any property of any kind, real or personal, movable or
immovable, now owned or hereafter acquired.
"Liquidated Damages" means all liquidated damages then owing pursuant
to Section 5 of the Registration Rights Agreement.
"Maturity" when used with respect to the Notes means the date on which
the principal of the Notes becomes due and payable as therein provided or as
provided in this Indenture, whether at Stated Maturity or on a redemption date
or pursuant to a Change of Control Purchase Offer or an Asset Sale Offer, and
whether by declaration of acceleration, call for redemption, purchase or
otherwise.
"Medium-Term Notes" means the Medium-Term Notes, due 1997 to 2003, of
the Company.
"Medium-Term Notes Indenture" means the Indenture dated as of
December 1, 1989 between the Company and First Trust of New York National
Association, as trustee.
"Moody's" means Xxxxx'x Investors Service, Inc. or any successor
rating agency.
"Net Proceeds" means the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale
(including, without limitation, any cash received upon the sale or other
disposition of any non-cash consideration received in any Asset Sale), net of
the direct costs relating to such Asset Sale (including, without limitation,
legal, accounting and investment banking fees, and sales commissions), any
relocation expenses incurred as a result thereof, any taxes paid or payable by
the Company or any of its Restricted Subsidiaries as a result thereof (after
taking into account any available tax credits or deductions and any tax sharing
arrangements), amounts required to be applied to the repayment of Indebtedness
secured by a Lien on the assets or assets that were the subject of such Asset
Sale and any reserve for adjustment or indemnity in respect of the sale price of
such asset or assets in each case established in accordance with GAAP.
"Net Property and Equipment" means, with respect to the Company, the
Consolidated property and equipment of the Company, net of accumulated
depreciation, determined in accordance with GAAP.
"New Credit Agreement" means the credit agreement to be entered into
among the Company, the Banks, the agents listed therein and The Chase Manhattan
Bank, as administrative agent, as such agreement may be amended, renewed,
extended, substituted,
14
refinanced, restructured, replaced, supplemented or otherwise modified from
time to time (including, without limitation, any successive renewals,
extensions, substitutions, refinancings, restructurings, replacements,
supplementations or other modifications of the foregoing).
"9 1/2% Debentures" means the 9 1/2% Debentures due 2016 of the
Company.
"9 1/2% Debentures Indenture" means the Indenture dated March 15,
1986 between the Company and First Trust National Association, as trustee.
"Non-Payment Default" has the meaning specified in Section 1403.
"Non-Recourse Debt" means Indebtedness (i) as to which neither the
Company nor any of its Restricted Subsidiaries (a) provides credit support of
any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (b) is directly or indirectly liable (as a guarantor
or otherwise), or (c) constitutes the lender, (ii) no default with respect to
which (including any rights that the holders thereof may have to take
enforcement action against an Unrestricted Subsidiary) would permit (upon
notice, lapse of time or both) any holder of any other Indebtedness (other than
the Notes being offered hereby) of the Company or any of its Restricted
Subsidiaries to declare a default on such other Indebtedness or cause the
payment thereof to be accelerated or payable prior to its stated maturity and
(iii) as to which the lenders have been notified in writing that they will not
have any recourse to the stock or assets of the Company or any of its Restricted
Subsidiaries.
"Note Guarantee" means any guarantee by a Subsidiary Guarantor of the
Company's obligations under this Indenture or the Notes due 2007 Indenture, as
applicable.
"Notes" has the meaning stated in the first recital of this Indenture
and, more particularly, means any Notes authenticated and delivered under this
Indenture.
"Notes due 2007" mean the 10 5/8% Senior Subordinated Notes due 2007
of the Company.
"Notes due 2007 Indenture" means the Indenture, dated as of July 25,
1997, among the Company, the Subsidiary Guarantors and Manufacturers and Traders
Trust Company, relating to the Notes due 2007.
"Obligations" means any principal, premium, interest (including
post-petition interest), penalties, fees, indemnifications, reimbursements,
damages and other liabilities payable under the documentation governing any
Indebtedness.
15
"Offering" means the sale of the Notes and the Notes due 2007 by the
Company to Bear, Xxxxxxx & Co. Inc., Chase Securities Inc., BancAmerica
Securities, Inc. and Societe Generale Securities Corporation as initial
purchasers.
"Officers' Certificate" means a certificate signed by the Chairman,
any Vice Chairman, the President or a Vice President, and by the Treasurer, an
Assistant Treasurer, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee.
"Opinion of Counsel" means a written opinion of counsel, who may be
counsel for the Company, including an officer or employee of the Company, and
who shall be reasonably acceptable to the Trustee.
"Outstanding", when used with respect to the Notes, means, as of the
date of determination, all Notes theretofore authenticated and delivered under
this Indenture, except:
(i) Notes theretofore cancelled by the Trustee or delivered to the
Trustee for cancellation;
(ii) Notes, or portions thereof, for whose payment or redemption money
in the necessary amount has been theretofore deposited with the Trustee or
any Paying Agent (other than the Company) 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 Notes; PROVIDED that, if such Notes
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;
(iii) Notes, except to the extent provided in Sections 1302 and
1303, with respect to which the Company has effected defeasance and/or
covenant defeasance as provided in Article Thirteen; and
(iv) Notes which have been paid pursuant to Section 306 or in exchange
for or in lieu of which other Notes have been authenticated and delivered
pursuant to this Indenture, other than any such Notes in respect of which
there shall have been presented to the Trustee proof satisfactory to it
that such Notes are held by a bona fide purchaser in whose hands the Notes
are valid obligations of the Company;
PROVIDED, HOWEVER, that in determining whether the Holders of the requisite
principal amount of Outstanding Notes have given any request, demand,
authorization, direction, consent, notice or waiver hereunder, and for the
purpose of making the calculations required by TIA Section 313, Notes owned by
the Company or any other obligor upon the Notes or any Affiliate of the Company
or such other obligor shall be disregarded and deemed not to be Outstanding,
except that, in determining whether the Trustee shall be protected in making
16
such calculation or in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Notes which the Trustee actually
knows to be so owned shall be so disregarded. Notes 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 Notes and that the pledgee is not the Company or any other obligor upon the
Notes or any Affiliate of the Company or such other obligor.
"PARI PASSU Indebtedness" means (a) with respect to the Notes,
Indebtedness which ranks PARI PASSU in right of payment to the Notes, and (b)
with respect to any Note Guarantee, Indebtedness which ranks PARI PASSU in right
of payment to such Note Guarantee.
"Paying Agent" means any Person (including the Company acting as
Paying Agent) authorized by the Company to pay the principal of (and premium, if
any, on) or interest on any Notes on behalf of the Company.
"Payment Blockage Notice" has the meaning specified in Section 1403.
"Payment Default" has the meaning specified in Section 1403.
"Permitted Consideration" means consideration consisting of any
combination of the following: (i) cash or Temporary Cash Investments,
(ii) assets used or intended for use in the Company's business as conducted on
the date of the Indentures, (iii) any liabilities (as shown on the Company's or
such Restricted Subsidiary's most recent balance sheet), of the Company or any
Restricted Subsidiary (other than contingent liabilities and liabilities that
are by their terms subordinated to the Notes or any guarantee thereof) that are
assumed by the transferee of any such assets pursuant to a customary novation
agreement that releases the Company or such Restricted Subsidiary from further
liability and (iv) any securities, notes or other obligations received by the
Company or any such Restricted Subsidiary from such transferee that are
immediately converted by the Company or such Restricted Subsidiary into cash (to
the extent of the cash received); PROVIDED that the aggregate amount of such
notes or other obligations received by the Company and its Restricted
Subsidiaries pursuant to (ii) through (iv) above after the date of the Indenture
and held or carried at any date of determination shall not exceed $75 million.
"Permitted Indebtedness" means any of the following Indebtedness of
the Company or any Restricted Subsidiary, as the case may be:
(i) Indebtedness of the Company and guarantees of the Subsidiary
Guarantors under the New Credit Agreement in an aggregate principal amount
at any one time outstanding not to exceed the greater of (x) $850 million
(after giving PRO FORMA effect to the use of proceeds of the Offering) less
mandatory repayments actually made in respect of any term Indebtedness
thereunder (other than amounts
17
refinanced as permitted under the definition of the New Credit Agreement)
or (y) the Borrowing Base Amount less mandatory repayments (other than
amounts refinanced as permitted under the definition of the New Credit
Agreement) actually made in respect of any term Indebtedness thereunder;
(ii) Indebtedness of the Company under uncommitted bank lines of
credit; provided, however, that the aggregate principal amount of
Indebtedness incurred pursuant to clauses (i), (ii) and (xv) of this
definition of "Permitted Indebtedness" does not exceed the greater of (x)
$850 million (after giving PRO FORMA effect to the use of proceeds of the
Offering) less mandatory repayments actually made in respect of any term
Indebtedness under the New Credit Agreement (other than amounts refinanced
as permitted under clause (xviii) hereof) or (y) the Borrowing Base Amount
less mandatory repayments actually made in respect of any term Indebtedness
under the New Credit Agreement (other than amounts refinanced as permitted
under clause (xviii) hereof);
(iii) Indebtedness of the Company evidenced by the Fixed Rate
Senior Notes and the Senior Note Guarantees with respect thereto under the
Fixed Rate Senior Note Indenture;
(iv) Indebtedness of the Company evidenced by the Floating Rate Senior
Notes and the Senior Note Guarantees with respect thereto under the
Floating Rate Senior Note Indenture;
(v) Indebtedness of the Company evidenced by the Medium-Term Notes
under the Medium-Term Notes Indenture;
(vi) Indebtedness of the Company evidenced by the 9 1/2% Debentures
under the 9 1/2% Debentures Indenture;
(vii) Indebtedness of the Company evidenced by the Notes and the
Note Guarantees with respect thereto under this Indenture;
(viii) Indebtedness of the Company evidenced by the Notes due 2007
and the Note Guarantees with respect thereto under the Notes due 2007
Indenture;
(ix) Indebtedness of the Company or any Restricted Subsidiary
outstanding on the date of the Indenture and listed on Schedule A attached
hereto;
(x) obligations of the Company or any Restricted Subsidiary entered
into in the ordinary course of business (a) pursuant to Interest Rate
Agreements designed to protect against or manage exposure to fluctuations
in interest rates in respect of
18
Indebtedness or retailer notes receivables, which, if related to
Indebtedness or such retailer notes receivables, do not exceed the
aggregate notional principal amount of such Indebtedness to which such
Interest Rate Agreements relate, or (b) under any Currency Agreements in
the ordinary course of business and designed to protect against or
manage exposure to fluctuations in foreign currency exchange rates which,
if related to Indebtedness, do not increase the amount of such Indebtedness
other than as a result of foreign exchange fluctuations;
(xi) Indebtedness of the Company owing to a Wholly Owned Restricted
Subsidiary or of any Restricted Subsidiary owing to the Company or any
Wholly Owned Restricted Subsidiary; PROVIDED that any disposition, pledge
or transfer of any such Indebtedness to a Person (other than the Company or
another Wholly Owned Restricted Subsidiary) shall be deemed to be an
incurrence of such Indebtedness by the Company or Restricted Subsidiary, as
the case may be, not permitted by this clause (xi);
(xii) Indebtedness in respect of letters of credit, surety bonds
and performance bonds provided in the ordinary course of business;
(xiii) Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument inadvertently
drawn against insufficient funds in the ordinary course of business;
PROVIDED that such Indebtedness is extinguished within ten business days of
its incurrence;
(xiv) Indebtedness of the Company or any Restricted Subsidiary
consisting of guarantees, indemnities or obligations in respect of purchase
price adjustments in connection with the acquisition or disposition of
assets;
(xv) Indebtedness of the Company evidenced by commercial paper issued
by the Company; PROVIDED, HOWEVER, that the aggregate principal amount of
Indebtedness incurred pursuant to clauses (i), (ii) and (xv) of this
definition of "Permitted Indebtedness" does not exceed the greater of (x)
$850 million (after giving PRO FORMA effect to the use of proceeds of the
Offering) less mandatory repayments actually made in respect of any term
Indebtedness under the New Credit Agreement (other than amounts refinanced
as permitted under clause (xviii) hereof) or (y) the Borrowing Base Amount
less mandatory repayments actually made in respect of any term Indebtedness
under the New Credit Agreement (other than amounts refinanced as permitted
under clause (xviii) hereof);
(xvi) Indebtedness of the Company pursuant to guarantees by the
Company or any Subsidiary Guarantor in connection with any Permitted
Receivables Financing; PROVIDED, HOWEVER, that such Indebtedness shall not
exceed 20% of the book value of
19
the Transferred Receivables or in the case of receivables arising from
direct financing leases, 30% of the book value thereof;
(xvii) Indebtedness of the Company and its Subsidiaries in addition
to that described in clauses (i) through (xvi) of this definition of
"Permitted Indebtedness," together with any other outstanding Indebtedness
incurred pursuant to this clause (xvii), not to exceed $100 million at any
time outstanding in the aggregate; and
(xviii) any renewals, extensions, substitutions, refunding,
refinancings or replacements (each, a "refinancing") of any Indebtedness
described in clauses (ii), (iii), (v), (vi), (vii), (viii), (ix) and (xv)
of this definition of "Permitted Indebtedness," including any successive
refinancings, so long as (A) the aggregate principal amount of Indebtedness
represented thereby is not increased by such refinancing to an amount
greater than such principal amount plus the lesser of (x) the stated amount
of any premium or other payment required to be paid in connection with such
a refinancing pursuant to the terms of the Indebtedness being refinanced or
(y) the amount of premium or other payment actually paid at such time to
refinance the Indebtedness, plus, in either case, the amount of reasonable
expenses of the Company or any Subsidiary, as the case may be, incurred in
connection with such refinancing, (B) in the case of any refinancing of
PARI PASSU Indebtedness or Subordinated Indebtedness, such new Indebtedness
is made PARI PASSU with or subordinated to the Notes to the same extent as
the Indebtedness being refinanced and (C) such refinancing does not reduce
the Average Life to Stated Maturity or the Stated Maturity of such
Indebtedness; PROVIDED that with respect to the Medium-Term Notes, a
refinancing shall be deemed to include a repayment of any such Medium-Term
Notes and subsequent incurrence of Indebtedness so long as (I), after
giving effect to such repayment and subsequent incurrence of new
Indebtedness, the aggregate principal amount of Medium-Term Notes and such
new Indebtedness does not exceed the principal amount of Medium-Term Notes
outstanding on the date of the Indenture and (II) clauses (A) through (C)
of this subsection (xviii) are complied with.
"Permitted Investment" means (i) Investment in any Wholly Owned
Restricted Subsidiary or any Investment in any Person by the Company or any
Wholly Owned Restricted Subsidiary as a result of which such Person becomes a
Wholly Owned Restricted Subsidiary or any Investment in the Company by a Wholly
Owned Restricted Subsidiary; (ii) intercompany Indebtedness to the extent
permitted under clause (xi) of the definition of "Permitted Indebtedness";
(iii) Temporary Cash Investments; (iv) sales of goods and services on trade
credit terms consistent with the Company's past practices or otherwise
consistent with trade credit terms in common use in the industry;
(v) Investments in direct financing leases for equipment and real estate owned
or leased by the Company and leased to its customers in the ordinary course of
business consistent with past practice; (vi) Investments in Joint Ventures
related to the Company's expansion of its retail operations, not to exceed $50
20
million at any one time outstanding; (vii) Investments in Investee Stores either
in the form of equity, loans or other extensions of credit; PROVIDED that any
such Investment may only be made if the amount thereof, when added to the
aggregate outstanding amount of Permitted Investments in Investee Stores
(excluding for purposes of this clause (vii) any Investments made pursuant to
clause (vi)) after giving effect to any loan repayments or returns of capital in
respect of any Permitted Investment in Investee Stores, does not exceed 12.5% of
Consolidated Total Assets at the time of determination; (viii) Investments in a
Qualified Finance Subsidiary in connection with a Qualified TIPS Transaction;
(ix) other Investments, in addition to those permitted under (i) through (viii)
above, in an aggregate amount not to exceed $10 million and (x) any
substitutions or replacements of any Investment so long as the aggregate amount
of such Investment is not increased by such substitution or replacement.
"Permitted Junior Securities" means Equity Interests in the Company
or debt securities that are subordinated to all Senior Indebtedness (and any
debt securities issued in exchange for Senior Indebtedness) to substantially the
same extent as, or to a greater extent than, the Notes are subordinated to
Senior Indebtedness.
"Permitted Liens" means, with respect to any Person:
(a) any Lien existing as of the date of the Indenture;
(b) any Lien arising by reason of (1) any judgment, decree or order
of any court, so long as such Lien is adequately bonded and any appropriate
legal proceedings which may have been duly initiated for the review of such
judgment, decree or order shall not have been finally terminated or the
period within which such proceedings may be initiated shall not have
expired; (2) taxes, assessments, governmental charges or levies not yet
delinquent or which are being contested in good faith; (3) security for
payment of workers' compensation or other insurance; (4) security for the
performance of tenders, leases (including, without limitation, statutory
and common law landlord's liens) and contracts (other than contracts for
the payment of money); (5) zoning restrictions, easements, licenses,
reservations, title defects, rights of others for rights of way, utilities,
sewers, electric lines, telephone or telegraph lines, and other similar
purposes, provisions, covenants, conditions, waivers and restrictions on
the use of property or minor irregularities of title (and, with respect to
leasehold interests, mortgages, obligations, liens and other encumbrances
incurred, created, assumed or permitted to exist and arising by, through or
under a landlord or owner of the leased property, with or without consent
of the lessee), none of which materially impairs the use of any parcel of
property material to the operation of the business of the Company or any
Restricted Subsidiary or the value of such property for the purpose of such
business; (6) deposits to secure public or statutory obligations;
(7) operation of law in favor of growers, dealers and suppliers of fresh
fruits and vegetables, carriers, mechanics, materialmen, laborers,
employees or
21
suppliers, incurred in the ordinary course of business for sums which
are not yet delinquent or are being contested in good faith by
negotiations or by appropriate proceedings which suspend the collection
thereof; (8) the grant by the Company to licensees, pursuant to security
agreements, of security interests in trademarks and goodwill, patents and
trade secrets of the Company to secure the damages, if any, of such
licensees, resulting from the rejection of the license of such licensees in
a bankruptcy, reorganization or similar proceeding with respect to the
Company; or (9) security for surety or appeal bonds;
(c) any Lien on any property or assets of a Restricted Subsidiary in
favor of the Company or any Wholly Owned Restricted Subsidiary;
(d) any Lien securing Acquired Indebtedness created prior to (and not
created in connection with, or in contemplation of) the incurrence of such
Indebtedness by the Company or any Restricted Subsidiary; PROVIDED that
such Lien does not extend to any assets of the Company or any Restricted
Subsidiary other than the assets acquired in the transaction resulting in
such Acquired Indebtedness being incurred by the Company or Restricted
Subsidiary, as the case may be;
(e) any Lien to secure the performance of bids, trade contracts,
letters of credit and other obligations of a like nature and incurred in
the ordinary course of business of the Company or any Restricted
Subsidiary;
(f) any Lien securing any Interest Rate Agreements or Currency
Agreements permitted to be incurred pursuant to clause (x) of the
definition of "Permitted Indebtedness" or any collateral for the
Indebtedness to which such Interest Rate Agreements or Currency Agreements
relate;
(g) any Lien securing the Notes;
(h) any Lien on an asset securing Indebtedness (including Capital
Lease Obligations) incurred or assumed for the purpose of financing all or
any part of the cost of acquiring or constructing such asset; PROVIDED that
such Lien covers only such asset and attaches concurrently or within 180
days after the acquisition or completion of construction thereof;
(i) any Lien on real or personal property securing Capital Lease
Obligations of the Company or any Restricted Subsidiary as lessee with
respect to such real or personal property to the extent such Indebtedness
can be incurred pursuant to Section 1010 of this Indenture other than as
Permitted Indebtedness;
22
(j) any Lien on a Financing Receivable or other receivable that is
transferred in a Permitted Receivables Financing;
(k) any Lien consisting of any pledge to any Person of Indebtedness
owed by any Restricted Subsidiary to the Company or to any Wholly Owned
Restricted Subsidiary; PROVIDED, that (i) such Restricted Subsidiary is a
Subsidiary Guarantor and (ii) the principal amount pledged does not exceed
the Indebtedness secured by such pledge;
(l) any extension, renewal, refinancing or replacement, in whole or
in part, of any Lien described in the foregoing clause (a) so long as no
additional collateral is granted as security thereby.
"Permitted Receivables Financing" means any transaction involving the
transfer (by way of sale, pledge or otherwise) by the Company or any of its
Restricted Subsidiaries of receivables to any other Person, PROVIDED that after
giving effect to such transaction the sum of (i) the aggregate uncollected
balances of the receivables so transferred ("Transferred Receivables") PLUS
(ii) the aggregate amount of all collections on Transferred Receivables
theretofore received by the seller but not yet remitted to the purchaser, in
each case at the date of determination, would not exceed $600 million.
"Person" means any individual, corporation, limited liability Company,
partnership, joint venture, association, joint-stock Company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Predecessor Note" of any particular Note means every previous Note
evidencing all or a portion of the same debt as that evidenced by such
particular Note; and, for the purposes of this definition, any Note
authenticated and delivered under Section 306 in exchange for a mutilated
security or in lieu of a lost, destroyed or stolen Note shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Note.
"Preferred Stock" means, with respect to any Person, any and all
shares, interests, participations or other equivalents (however designated) of
such Person's preferred stock whether now outstanding or issued after the date
of this Indenture, including, without limitation, all classes and series of
preferred or preference stock of such Person.
"Prior Indentures" means the 9 1/2% Debentures Indenture, the
Medium-Term Notes Indenture, the Fixed Rate Senior Note Indenture and the
Floating Rate Senior Note Indenture.
"Public Equity Offering" means (i) with respect to the provisions of
the Indenture permitting redemption of up to 35% of the Notes at the option of
the Company
23
within 180 days of a Public Equity Offering, a primary public offering of
equity securities of the Company, and (ii) with respect to the last sentence
of Section 1017, a primary or secondary public offering of equity securities
of any Restricted Subsidiary of the Company, in each case pursuant to an
effective registration statement under the Securities Act with net cash
proceeds of at least $50 million.
"Qualified Capital Stock" of any Person means any and all Capital
Stock of such Person other than Redeemable Capital Stock.
"Qualified Finance Subsidiary" means a Subsidiary of the Company
constituting a "finance subsidiary," within the meaning of Rule 3a-5 under the
Investment Company Act of 1940, as amended, formed for the purpose of engaging
in a Qualified TIPS Transaction.
"Qualified TIPS Transaction" means an issuance by a Qualified Finance
Subsidiary of preferred trust securities or similar securities in respect of
which any dividends, liquidation preference or other obligations under such
securities are guaranteed by the Company to the extent required by the
Investment Company Act of 1940, as amended, or customary transactions of such
type.
"Qualified Subordinated Indebtedness" means Subordinated Indebtedness
of the Company to a Qualified Finance Subsidiary incurred in connection with a
Qualified TIPS Transaction.
"Rating Agency" means any of (i) S&P, (ii) Moody's or (iii) if S&P or
Moody's or both shall not make a rating of the Notes publicly available, a
security rating agency or agencies, as the case may be, nationally recognized in
the United States, selected by the Company, which shall be substituted for S&P
or Moody's or both, as the case may be.
"Rating Category" means (i) with respect to S&P, any of the following
categories: AAA, AA, A, BBB, BB, B, CCC, CC, C and D (or equivalent successor
categories); (ii) with respect to Moody's, any of the following categories:
Aaa, Aa, A, Baa, Ba, B, Caa, Ca, C and D (or equivalent successor categories);
and (iii) the equivalent of any such category of S&P or Moody's used by another
Rating Agency. In determining whether the rating of the Notes has decreased by
one or more gradation, gradations within Rating Categories (+ and - for S&P; 1,
2 and 3 for Moody's; or the equivalent gradations for another Rating Agency)
shall be taken into account (E.G., with respect to S&P, a decline in rating from
BB+ to BB, as well as from BB- to B+, will constitute a decrease of one
gradation).
24
"Rating Decline" means the occurrence on, or within 90 days after, the
date of public notice of the occurrence of a Change of Control or of the
intention of the Company or Persons controlling the Company to effect a Change
of Control (which period shall be extended so long as the rating of the Notes is
under publicly announced consideration for possible downgrade by any of the
Rating Agencies) of the following: (i) if the Notes are rated by either Rating
Agency as Investment Grade immediately prior to the beginning of such period,
the rating of the Notes by both Rating Agencies shall be below Investment Grade;
or (ii) if the Notes are rated below Investment Grade by both Rating Agencies
immediately prior to the beginning of such period, the rating of the Notes by
either Rating Agency shall be decreased by one or more gradations (including
gradations within Rating Categories as well as between Rating Categories).
"Redeemable Capital Stock" means any Capital Stock that, either by its
terms or by the terms of any security into which it is convertible or
exchangeable or otherwise, is, or upon the happening of an event or passage of
time would be, required to be redeemed prior to any Stated Maturity of the
principal of the Notes or is redeemable at the option of the holder thereof at
any time prior to any such Stated Maturity, or is convertible into or
exchangeable for debt securities at any time prior to any such Stated Maturity
at the option of the holder thereof.
"Redemption Date", when used with respect to any Note to be redeemed,
in whole or in part, means the date fixed for such redemption by or pursuant to
this Indenture.
"Redemption Price", when used with respect to any Note to be redeemed,
means the price at which it is to be redeemed pursuant to this Indenture.
"Registration Rights Agreement" means the Registration Rights
Agreement, dated as of the date of this Indenture, by and among the Company and
the other parties named on the signature pages thereof, as such agreement may be
amended, modified or supplemented from time to time.
"Regular Record Date" for the interest payable on any Interest Payment
Date means the May 15 or November 15 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date.
"Regulation S" has the meaning set forth in Section 201 of this
Indenture.
"Regulation S Global Note" has the meaning set forth in Section 201 of
this Indenture.
"Responsible Officer", when used with respect to the Trustee, means
the chairman or any vice-chairman of the board of directors, the chairman or any
vice-chairman
25
of the executive committee of the board of directors, the chairman of the
trust committee, the president, any vice president, the secretary, any
assistant secretary, the treasurer, any assistant treasurer, the cashier, any
assistant cashier, any trust officer or assistant trust officer, the
controller or any assistant controller or any other officer of the Trustee
customarily performing functions similar to those performed by any of the
above-designated officers, and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred
because of his knowledge of and familiarity with the particular subject.
"Restricted Global Note" has the meaning set forth in Section 201 of
this Indenture.
"Restricted Subsidiary" means any Subsidiary of the Company that is
not (x) an Unrestricted Subsidiary or (y) a Qualified Finance Subsidiary.
"Rule 144A" has the meaning set forth in Section 201 of this
Indenture.
"Securities Act" means the Securities Act of 1933, as amended.
"Security Register" and "Security Registrar" have the respective
meanings specified in Section 305.
"Senior Indebtedness" of the Company or any Subsidiary Guarantor
means (i) all Indebtedness of the Company or such Subsidiary Guarantor under the
New Credit Agreement or any related loan documentation, including, without
limitation, obligations to pay principal and interest (including any interest
accruing subsequent to the filing of a petition of bankruptcy at the rate
provided for in the documentation with respect thereto, whether or not such
interest is an allowed claim under applicable law), premium, if any,
reimbursement obligations under letters of credit, fees, expenses and
indemnities, and all obligations under Interest Rate Agreements or Currency
Agreements with respect thereto, whether outstanding on the date of this
Indenture or thereafter incurred, (ii) the principal of, premium, if any, and
interest (including any interest accruing subsequent to the filing of a petition
of bankruptcy at the rate provided for in the documentation with respect
thereto, whether or not such interest is an allowed claim under applicable law)
on, and all other Obligations with respect to, any other Indebtedness of the
Company or such Subsidiary Guarantor permitted to be incurred by the Company or
such Subsidiary Guarantor under the terms of the Indenture, whether outstanding
on the date of this Indenture or thereafter incurred, unless the instrument
under which such Indebtedness is incurred expressly provides that it is on a
parity with or subordinated in right of payment to the Notes and (iii) all
Obligations of the Company or such Subsidiary Guarantor with respect to the
foregoing. Notwithstanding anything to the contrary in the foregoing, Senior
Indebtedness will not include (w) any liability for federal, state, local or
other taxes owed or owing by the
26
Company or any Subsidiary Guarantor, (x) any Indebtedness of the Company or
any Subsidiary Guarantor to any of its Restricted Subsidiaries or other
Affiliates, (y) any trade payables or (z) any Indebtedness that is incurred
in violation of this Indenture.
"Senior Note Guarantees" means any guarantee by a Subsidiary Guarantor
as defined in the Fixed Rate Senior Note Indenture and the Floating Rate Senior
Note Indenture of the Company's obligations under such indentures.
"Significant Subsidiary" of the Company means any Subsidiary of the
Company that is a "significant subsidiary" as defined in Rule 1.02(w) of
Regulation S-X under the Securities Act.
"S&P" means Standard & Poor's Ratings Group, a division of McGraw Hill
Inc., a New York corporation, or any successor rating agency.
"Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Trustee pursuant to Section 307.
"Stated Maturity" when used with respect to any Indebtedness or any
installment of interest thereon means the dates specified in such Indebtedness
as the fixed date on which the principal of or premiums on such Indebtedness or
such installment of interest is due and payable.
"Subordinated Indebtedness" means Indebtedness of the Company
subordinated in right of payment to the Notes.
"Subsidiary" means any Person a majority of the equity ownership or
the Voting Stock of which is at the time owned, directly or indirectly, by the
Company or by one or more other Restricted Subsidiaries, or by the Company and
one or more other Restricted Subsidiaries.
"Subsidiary Guarantor" means, in each case as applicable, each Wholly
Owned Restricted Subsidiary of the Company and each such subsidiary's Wholly
Owned Restricted Subsidiaries as of the date of the Indenture and any Wholly
Owned Restricted Subsidiary that is required pursuant to Section 1018, on or
after the date of this Indenture, to execute a Note Guarantee until a successor
replaces any such party pursuant to the applicable provisions of this Indenture
and, thereafter, shall mean such successor.
"Tangible Assets" means the total of all the assets appearing on the
Consolidated balance sheet of a majority-owned or Wholly Owned Restricted
Subsidiary of the Company less the following: (1) intangible assets including,
without limitation, items such as goodwill, trademarks, trade names, patents and
unamortized debt discount and
27
expense; and (2) appropriate adjustments on account of minority interests of
other Persons holding stock in any such majority-owned Restricted Subsidiary
of the Company.
"Temporary Cash Investments" means (i) any evidence of Indebtedness
issued by the United States, or an instrumentality or agency thereof, and
guaranteed fully as to principal, premium, if any, and interest by the United
States; (ii) any certificate of deposit issued by, or time deposit of, a
financial institution that is a member of the Federal Reserve System having
combined capital and surplus and undivided profits of not less than $500
million, whose debt has a rating, at the time of which any investment therein is
made, of "A" (or higher) according to Xxxxx'x or "A" (or higher) according to
S&P; (iii) commercial paper issued by a corporation (other than an Affiliate or
Restricted Subsidiary of the Company) organized and existing under the laws of
the United States with a rating, at the time as of which any investment therein
is made, of "P-1" (or higher) according to Xxxxx'x or "A-1" (or higher)
according to S&P; (iv) any money market deposit accounts issued or offered by a
financial institution that is a member of the Federal Reserve System having
capital and surplus in excess of $500 million; (v) short term tax-exempt bonds
with a rating, at the time as of which any investment is made therein, of "Aa3"
(or higher) according to Xxxxx'x or "AA-" (or higher) according to S&P,
(vi) shares in a mutual fund, the investment objectives and policies of which
require it to invest substantially in the investments of the type described in
clause (i) through (v); and (vii) repurchase and reverse repurchase obligations
with the term of not more than seven days for underlying securities of the types
described in clauses (i) and (ii) entered into with any financial institution
meeting the qualifications specified in clause (ii); PROVIDED that in the case
of clauses (i), (ii), (iii) and (v), such investment matures within one year
from the date of acquisition thereof.
"Transferred Receivables" has the meaning specified in the definition
of "Permitted Receivables Financing" set forth herein.
"Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939,
as amended.
"Trustee" means the Person named as the Trustee in the first paragraph
of this Indenture until a successor Trustee shall have become such pursuant to
the applicable provisions of this Indenture, and thereafter "Trustee" shall mean
such successor Trustee.
"Unrestricted Subsidiary" means any Subsidiary that is designated by
the Board of Directors as an Unrestricted Subsidiary pursuant to a Board
Resolution, but only to the extent that such Subsidiary (i) has no Indebtedness
other than Non-Recourse Debt; (ii) is not party to any agreement, contract,
arrangement or understanding with the Company or any of its Restricted
Subsidiaries unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or such Restricted Subsidiary
than those that might be obtained at the time from Persons who are not
Affiliates of the Company;
28
(iii) 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 Equity Interests or (b) to maintain or preserve such
Person's financial condition or to cause such Person to achieve any specified
levels of operating results; (iv) has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Company or any
of its Restricted Subsidiaries; (v) has at least one member of its board of
directors who is not a director or executive officer of the Company or any of
its Restricted Subsidiaries and has at least one executive officer who is not
a director or executive officer of the Company or any of its Restricted
Subsidiaries; and (vi) does not directly or through any of its Subsidiaries
own any Capital Stock of, or own or hold any Lien on any property of, the
Company or any of its Restricted Subsidiaries. Any such designation by the
Board of Directors shall be evidenced to the Trustee by filing with the
Trustee a certified copy of the Board Resolution giving effect to such
designation and an Officers' Certificate certifying that such designation
complied with the foregoing conditions and was permitted by Section 1011.
If, at any time, any Unrestricted Subsidiary would fail to meet the foregoing
requirements as an Unrestricted Subsidiary, it shall thereafter cease to be
an Unrestricted Subsidiary for purposes of the Indentures and any
Indebtedness of such Subsidiary shall be deemed to be incurred by a
Restricted Subsidiary of the Company as of such date (and, if such
Indebtedness is not permitted to be incurred as of such date under Section
1010 the Company shall be in default of such covenant). The Board of
Directors may at any time designate any Unrestricted Subsidiary to be a
Restricted Subsidiary, PROVIDED that such designation shall be deemed to be
an incurrence of Indebtedness by a Restricted Subsidiary of the Company of
any outstanding Indebtedness of such Unrestricted Subsidiary and such
designation shall only be permitted if (i) such Indebtedness is permitted
under Section 1010 and (ii) no Default or Event of Default would be in
existence following such designation.
"U.S. Government Obligations" means securities that are (i) direct
obligations of the United States for the timely payment of which its full
faith and credit is pledged or (ii) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United
States, the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation by the United States, which, in either case, are
not callable or redeemable at the option of the issuer thereof, and shall
also include a depository receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act) as custodian with respect to any such U.S.
Government Obligation or a specific payment of principal of or interest on
any such U.S. Government Obligation held by such custodian for the account of
the holder of such depository receipt; PROVIDED that (except as required by
law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depository receipt from any amount received by
the custodian in respect of the U.S. Government Obligation or the specific
payment of principal of or interest on the U.S. Government Obligation
evidenced by such depository receipt.
29
"Vice President", when used with respect to the Company or the
Trustee, means any vice president, whether or not designated by a number or a
word or words added before or after the title "vice president".
"Voting Stock" means stock of the class or classes having general
voting power under ordinary circumstances to elect at least a majority of the
board of directors, managers or trustees of a corporation (irrespective of
whether or not at the time stock of any other class or classes shall have or
might have voting power by reason of the happening of any contingency).
"Wholly Owned Restricted Subsidiary" means a Restricted Subsidiary all
the Capital Stock (other than directors' qualifying shares) of which is owned by
the Company or another Wholly Owned Restricted Subsidiary.
SECTION 102. 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 an Officers' Certificate stating that all conditions precedent, if
any, provided for in this Indenture (including any covenant compliance with
which constitutes a condition precedent) relating to the proposed action have
been complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with, except
that in the case of any such application or request as to which the furnishing
of such documents is specifically required by any provision of this Indenture
relating to such particular application or request, no additional certificate or
opinion need be furnished.
Every certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than pursuant to
Section 1008) 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 has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or condition
has been complied with; and
30
(4) a statement as to whether, in the opinion of each such
individual, such condition or covenant has been complied with.
SECTION 103. 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, or in the exercise of
reasonable care should know, that the certificate or opinion or representations
with respect to the matters upon which his certificate or opinion is based are
erroneous. In giving such opinion, such counsel may rely upon opinions of local
counsel reasonably satisfactory to the Trustee. Any such 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, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such
matters are erroneous.
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 104. ACTS OF HOLDERS.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by agents duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and conclusive in favor of the Trustee and the Company, if made in the
manner provided in this Section 104.
31
(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 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 deems sufficient.
(c) The principal amount and serial numbers of Notes held by any
Person, and the date of holding the same, shall be proved by the Security
Register.
(d) If the Company shall solicit from the Holders of Notes any
request, demand, authorization, direction, notice, consent, waiver or other Act,
the Company may, at its option, by or pursuant to Board Resolution, fix in
advance a record date for the determination of Holders entitled to give such
request, demand, authorization, direction, notice, consent, waiver or other Act,
but the Company shall have no obligation to do so. Notwithstanding TIA
Section 316(c), such record date shall be the record date specified in or
pursuant to such Board Resolution, which shall be a date not earlier than the
date 30 days prior to the first solicitation of Holders generally in connection
therewith and not later than the date such solicitation is completed. If such a
record date is fixed, such request, demand, authorization, direction, notice,
consent, waiver or other Act may be given before or after such record date, but
only the Holders of record at the close of business on such record date shall be
deemed to be Holders for the purposes of determining whether Holders of the
requisite proportion of Outstanding Notes have authorized or agreed or consented
to such request, demand, authorization, direction, notice, consent, waiver or
other Act, and for that purpose the Outstanding Notes shall be computed as of
such record date; PROVIDED that no such authorization, agreement or consent by
the Holders on such record date shall be deemed effective unless it shall become
effective pursuant to the provisions of this Indenture not later than 330 days
after the record date.
(e) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Note shall bind every future Holder of
the same Note and the Holder of every Note 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 Note.
32
SECTION 105. NOTICES, ETC., TO TRUSTEE, COMPANY AND SUBSIDIARY
GUARANTORS.
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,
(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, to the attention of
its Corporate Trust Department.
(2) the Company or any Subsidiary Guarantor 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 addressed to it at the address of its principal
office specified in the first paragraph of this Indenture, or at any other
address previously furnished in writing to the Trustee by the Company.
SECTION 106. NOTICE TO HOLDERS; WAIVER.
Where this Indenture provides notice of any event to Holders by the
Company, any Subsidiary Guarantor or the Trustee, such notice shall be
sufficiently given (unless otherwise herein expressly provided) if in writing
and mailed, first-class postage prepaid, to each Holder affected by such event,
at its address as it appears in the Security Register, not later than the latest
date, and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Any notice mailed to a Holder in the manner herein prescribed
shall be conclusively deemed to have been received by such Holder when so
mailed, whether or not such Holder actually receives such notice. 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 or irregularities in regular
mail service or by reason of any other cause, it shall be impracticable to mail
notice of any event to Holders when such notice is required to be given pursuant
to any provision of this Indenture, then any manner of giving such notice as
shall be satisfactory to the Trustee shall be deemed to be a sufficient giving
of such notice for every purpose hereunder.
33
SECTION 107. 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.
SECTION 108. SUCCESSORS AND ASSIGNS.
All covenants and agreements in this Indenture by the Company and the
Subsidiary Guarantors shall bind their respective successors and assigns,
whether so expressed or not.
SECTION 109. SEPARABILITY CLAUSE.
In case any provision in this Indenture or in the Notes or the Note
Guarantees shall be invalid, illegal or unenforceable, the validity, legality
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.
SECTION 110. BENEFITS OF INDENTURE.
Nothing in this Indenture, in the Notes or the Note Guarantees,
express or implied, shall give to any Person, other than the parties hereto, any
Paying Agent, any Security Registrar and their successors hereunder and the
Holders, any benefit or any legal or equitable right, remedy or claim under this
Indenture.
SECTION 111. GOVERNING LAW.
This Indenture, the Notes and the Note Guarantees shall be governed by
the law of the State of New York. Upon the issuance of the Exchange Notes, if
any, or the effectiveness of the Shelf Registration Statement, this Indenture
shall be subject to and governed by the provisions of the Trust Indenture Act of
1939, as amended.
SECTION 112. LEGAL HOLIDAYS.
In any case where any Interest Payment Date, Redemption Date or Stated
Maturity or Maturity of any Note shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Notes) payment
of interest 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 at the
Stated Maturity or Maturity; PROVIDED that no interest shall accrue for the
period from and after such Interest Payment Date, Redemption Date, Stated
Maturity or Maturity, as the case may be.
34
ARTICLE TWO
NOTE FORMS
SECTION 201. FORMS GENERALLY.
The Initial Notes shall be known as the "10 1/2% Senior Subordinated
Notes due 2004" and the Exchange Notes shall be known as the "10 1/2% Series B
Senior Subordinated Notes Due 2004", in each case of the Company. The Initial
Notes and the Exchange Notes shall be treated as a single class for all purposes
under this Indenture. The Notes and the Trustee's certificates of
authentication shall be in substantially the forms set forth in this Article,
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
Notes, as evidenced by their execution of the Notes. Any portion of the text of
any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note.
The definitive Notes shall be printed, lithographed or engraved on
steel-engraved borders or may be produced in any other manner, all as determined
by the officers of the Company executing such Notes, as evidenced by their
execution of such Notes; PROVIDED, HOWEVER, that if the Notes are listed on any
securities exchange such manner is permitted by the rules of such securities
exchange.
Initial Notes offered and sold to "QIBs" (Qualified Institutional
Buyers, as defined in Rule 144A under the Securities Act) in reliance on
Rule 144A under the Securities Act ("Rule 144A") may be issued in the form of
one or more permanent global Notes ("Global Notes") substantially in the form
set forth in Section 203 and 204 (each, a "Restricted Global Note") deposited
with the Trustee, as custodian for the Depositary or its nominee (in such
capacity, the "Custodian"), and registered in the name of the Depositary or its
nominee, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the Restricted Global
Note may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for the Depositary or its nominee, as
hereinafter provided.
Initial Notes offered and sold in offshore transactions in reliance on
Regulation S under the Securities Act ("Regulation S") shall be issued in the
form of a single permanent Global Note substantially in the form set forth in
Sections 203 and 204 (the "Regulation S Global Note") deposited with the
Custodian, and registered in the name of the Depositary or its nominee for the
accounts of the Euroclear System ("Euroclear") and Cedel Bank, SOCIETE ANONYME
("Cedel"), duly executed by the Company and authenticated by the
35
Trustee as hereinafter provided. On or prior to the end of the "40-day
restricted period" within the meaning of Rule 903(c) of Regulation S,
beneficial interests in the Regulation S Global Note may only be held through
the Restricted Global Note. Any resale or transfer of beneficial interests in
the Regulation S Global Note shall be made only pursuant to Rule 144A or
Regulation S, after delivery to the Company by the transferor, if required by
the Company, of the opinions, certification or other information described in
Section 312. The aggregate principal amount at maturity of the Regulation S
Global Note may from time to time be increased or decreased by adjustments
made in the records of the Trustee, as custodian for the Depositary or its
nominee, as herein provided.
Initial Notes transferred subsequent to the consummation of the
Offering to Institutional Accredited Investors (as defined in Rule 501(a)(1),
(2), (3) and (7) under the Securities Act) which are not QIBs (excluding Non-
U.S. Persons, as defined in Rule 902 under the Securities Act) shall be in the
form of permanent certificated Notes in substantially the form set forth in
Sections 203 and 204 (the "Certificated Notes"); PROVIDED, HOWEVER, that upon
transfer of such Certificated Notes to a QIB or in accordance with Regulation S,
such Certificated Notes will, unless the relevant Global Note has previously
been exchanged, be exchanged for an interest in a Global Note pursuant to the
provisions of Section 312.
SECTION 202. RESTRICTIVE LEGENDS.
Unless and until (i) an Initial Note is sold pursuant to an effective
Shelf Registration Statement or (ii) an Initial Note is exchanged for an
Exchange Note in an Exchange Offer pursuant to an effective Exchange Offer
Registration Statement, in each case pursuant to the Registration Rights
Agreement, (A) each Restricted Global Note and Certificated Note shall bear the
following legend set forth below (the "Private Placement Legend") on the face
thereof and (B) the Regulation S Global Note shall bear the Private Placement
Legend on the face thereof until at least 41 days after the date hereof (the
"40-day restricted period"):
THE NOTE (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, AS AMENDED (THE
"SECURITIES ACT"), AND THE NOTE EVIDENCED HEREBY MAY NOT BE
OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER
OF THE NOTE 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
NOTE EVIDENCED HEREBY AGREES FOR THE
36
BENEFIT OF THE ISSUER THAT (A) SUCH NOTE 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 PERSON THAT IS NOT A U.S. PERSON (AS DEFINED IN
RULE 902 UNDER THE SECURITIES ACT) 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 (IN THE CASE OF (b), (c) OR (d),
UPON AN OPINION OF COUNSEL IF THE ISSUER OR TRUSTEE, REGISTRAR OR
TRANSFER AGENT FOR THE NOTES SO REQUESTS), (2) TO THE ISSUER 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 NOTE EVIDENCED HEREBY OF THE RESALE
RESTRICTIONS SET FORTH IN (A) ABOVE.
Each Global Note, whether or not an Initial Note, shall also bear the
following legend on the face thereof:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC") TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
37
SECTION 203. FORM OF FACE OF NOTE.
XXXXXXX COMPANIES, INC.
10 1/2% Senior Subordinated Note due 2004 CUSIP ________
No. __________ $________
Xxxxxxx Companies, Inc., an Oklahoma corporation (herein called the
"Company", which term includes any successor Person under the Indenture
hereinafter referred to), for value received, hereby promises to pay to
____________________ or registered assigns, the principal sum of
____________________ Dollars on December 1, 2004, at the office or agency of the
Company referred to below, and to pay interest thereon from July 25, 1997, or
from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semiannually on June 1 and December 1 of each year,
commencing December 1, 1997, at the rate of 10 1/2% per annum, until the
principal hereof is paid or duly provided for, and (to the extent lawful) to pay
on demand interest on any overdue interest at the rate borne by the Notes from
the date on which such overdue interest becomes payable to the date payment of
such interest has been made or duly provided for. The Company shall pay all
Liquidated Damages, if any, in the same manner on the dates and in the amounts
set forth in the Registration Rights Agreement. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in such Indenture, be paid to the Person in whose name this Note (or
one or more Predecessor Notes) is registered at the close of business on the
Regular Record Date for such interest, which shall be the May 15 or November 15
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly
provided for shall forthwith cease to be payable to the Holder on such Regular
Record Date, and such Defaulted Interest, and (to the extent lawful) interest on
such Defaulted Interest at the rate borne by the Notes, may be paid to the
Person in whose name this Note (or one or more Predecessor Notes) is registered
at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to
Holders of Notes not less than 10 days prior to such Special Record Date, or may
be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange on which the Notes may be listed, and
upon such notice as may be required by such exchange, all as more fully provided
in said Indenture. Payment of the principal of (and premium, if any, on),
interest on, and Liquidated Damages on, if any, this Note will be made at the
office or agency of the Company maintained for that purpose in The City of New
York (which initially will be the office of the Trustee maintained at
00 Xxxxxxxx - 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000), or at such other office or
agency of the Company as may be maintained for such purpose, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; PROVIDED, HOWEVER, that payment
of interest may be
38
made at the option of the Company by check mailed to the address of the
Person entitled thereto as such address shall appear on the Security
Register. Notwithstanding the foregoing, payment of interest in respect of
Notes represented by Global Notes shall be made in accordance with procedures
required by the Depositary.
Reference is hereby made to the further provisions of this Note 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 duly executed
by the Trustee referred to on the reverse hereof by manual signature, this Note
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 under its corporate seal.
Dated: XXXXXXX COMPANIES, INC.
By
--------------------------------
Attest:
---------------------------------
Secretary
SECTION 204. FORM OF REVERSE OF NOTE.
This Note is one of a duly authorized issue of securities of the
Company designated as its 10 1/2% Senior Subordinated Notes due 2004 (herein
called the "Notes"), limited (except as otherwise provided in the Indenture
referred to below) in aggregate principal amount to $250,000,000, which may be
issued under an indenture (herein called the "Indenture") dated as of July 25,
1997, among the Company, the Subsidiary Guarantors named therein and
Manufacturers and Traders Trust Company, trustee (herein called the "Trustee",
which term includes any successor trustee under the Indenture), to which
Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights, limitations of rights, duties, obligations
and immunities thereunder of the Company, the Subsidiary Guarantors, the Trustee
and the Holders of the Notes and the Note Guarantees, and of the terms upon
which the Notes and the Note Guarantees are, and are to be, authenticated and
delivered.
39
The Notes are subject to redemption at the option of the Company, upon
not less than 30 nor more than 60 days notice at any time on or after June 1,
2001, as a whole or in part, at the election of the Company, at a Redemption
Price equal to the percentage of the principal amount of the Notes set forth
below, plus accrued and unpaid interest and Liquidated Damages, if any, thereon,
to the applicable Redemption Date, if redeemed during the 12-month period
beginning on June 1 of the years indicated below (subject to the right of
Holders of record on relevant Record Dates to receive interest due on an
Interest Payment Date):
Year Redemption Price
---- ----------------
2001 . . . . . . . . . 105.250%
2002 . . . . . . . . . 102.625%
2003 and thereafter. . 100.000%
In addition, up to 35% of the initial aggregate principal amount of
the Notes may be redeemed on or prior to June 1, 2000, at the option of the
Company, within 180 days of a Public Equity Offering with the net proceeds of
such offering at a redemption price equal to 110 1/2% of the principal amount
thereof, together with accrued and unpaid interest, if any, and Liquidated
Damages, if any, to the date of redemption (subject to the right of Holders of
record on relevant Record Dates to receive interest due on relevant Interest
Payment Dates); PROVIDED that after giving effect to such redemption at least
$162.5 million aggregate principal amount of the Notes remains outstanding.
Upon the occurrence of a Change of Control Triggering Event, the
Holder of this Note may require the Company, subject to certain limitations
provided in the Indenture and to the extent not inconsistent with the Company's
Bylaws as in effect on the date of the Indenture, to repurchase this Note at a
purchase price in cash in an amount equal to 101% of the principal amount
thereof plus accrued and unpaid interest, if any, and Liquidated Damages, if
any, to the date of purchase.
In the case of any redemption of Notes, interest installments whose
Stated Maturity is on or prior to the Redemption Date will be payable to the
Holders of such Notes, or one or more Predecessor Notes, of record at the close
of business on the relevant Record Date referred to on the face hereof. Notes
(or portions thereof) for whose redemption and payment provision is made in
accordance with the Indenture shall cease to bear interest from and after the
Redemption Date.
In the event of redemption of this Note in part only, a new Note or
Notes for the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof.
40
If an Event of Default shall occur and be continuing, the principal of
all the Notes may be declared due and payable in the manner and with the effect
provided in the Indenture.
The Indenture contains provisions for defeasance at any time of
(a) the entire indebtedness of the Company and any Subsidiary Guarantor on this
Note and (b) certain restrictive covenants and the related Defaults and Events
of Default, upon compliance by the Company and the Subsidiary Guarantors with
certain conditions set forth therein, which provisions apply to this Note.
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 Subsidiary Guarantors and the rights of the Holders under the
Indenture at any time by the Company, the Subsidiary Guarantors and the Trustee
with the consent of the Holders of a majority in aggregate principal amount of
the Notes at the time Outstanding. The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount of
the Notes at the time Outstanding, on behalf of the Holders of all the Notes, to
waive compliance by the Company and the Subsidiary Guarantors with certain
provisions of the Indenture and certain past defaults under the Indenture and
their consequences. Any such consent or waiver by or on behalf of the Holder of
this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note 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 Note.
No reference herein to the Indenture and no provision of this Note or
of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the principal of (and premium, if any, on)
and interest on this Note at the times, 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 Note is registerable on the Security
Register of the Company, upon surrender of this Note for registration of
transfer at the office or agency of the Company, maintained for such purpose,
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 Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
The Notes 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 Notes are
exchangeable for a like aggregate
41
principal amount of Notes of a different authorized denomination, as
requested by the Holder surrendering the same.
No service charge shall be made for any registration of transfer or
exchange of Notes, but the Company may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection therewith.
Prior to the time of due presentment of this Note for registration of
transfer, the Company, the Subsidiary Guarantors, the Trustee and any agent of
the Company, the Subsidiary Guarantors or the Trustee may treat the Person in
whose name this Note is registered as the owner hereof for all purposes, whether
or not this Note be overdue, and neither the Company, the Subsidiary Guarantors,
the Trustee nor any such agent shall be affected by notice to the contrary.
Interest on this Note shall be computed on the basis of a 360-day year
of twelve 30-day months.
In addition to the rights provided to Holders of Notes under the
Indenture, Holders shall have all the rights set forth in the Registration
Rights Agreement dated as of July 25, 1997 among the Company, the Subsidiary
Guarantors and the other parties named on the signature pages thereof.
All terms used in this Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture.
FORM OF ASSIGNMENT
FOR VALUE RECEIVED ___________________________________ hereby sell(s),
assign(s) and transfer(s) unto ________________________________________ (please
insert name and social security or other identifying number of assignee) the
within Note and hereby irrevocably constitutes and appoints ____________________
as agent to transfer the said Note on the books of the Company with the full
power of substitution in the premises.
Dated:
------------------------------------
Signature(s)
Signature must be guaranteed by
42
a bank or trust company
or a member firm of a major stock
exchange
---------------------------------------------
Signature Guarantee
NOTICE: The signature on the assignment
must correspond with the name as
written upon the face of the Note in every
particular without alteration or enlargement or any
change whatever.
SECTION 205. FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
The Trustee's certificate of authentication shall be in substantially
the following form:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION.
This is one of the Notes referred to in the within-mentioned
Indenture.
MANUFACTURERS AND TRADERS TRUST COMPANY
as Trustee
By
-----------------------------------------
Authorized Signatory
ARTICLE THREE
THE NOTES
SECTION 301. TITLE AND TERMS.
The aggregate principal amount of Notes which may be authenticated and
delivered under this Indenture is limited to $250,000,000, except for Notes
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Notes pursuant to Section 303, 304, 305, 306, 801,
906, 1009, 1016 or 1108.
43
The Initial Notes shall be known and designated as the "10 1/2%
Senior Subordinated Notes due 2004" and the Exchange Notes shall be known as
the "10 1/2% Series B Senior Subordinated Notes due 2004", in each case, of
the Company. Their Stated Maturity shall be December 1, 2004, and they shall
bear interest at the rate of 10 1/2% per annum from July 25, 1997, or from
the most recent Interest Payment Date to which interest has been paid or duly
provided for, payable semi-annually on June 1 and December 1 of each year,
commencing December 1, 1997 and at said Stated Maturity, until the principal
thereof is paid or duly provided for.
The principal of (and premium, if any, on), interest and Liquidated
Damages, if any, on the Notes shall be payable at the office or agency of the
Company maintained for such purpose in The City of New York, or at such other
office or agency of the Company as may be maintained for such purpose; PROVIDED,
HOWEVER, that, at the option of the Company, interest may be paid by mailing a
check for such interest, payable to or upon the written order of the Person
entitled thereto pursuant to Section 308, to the address of such Person as it
appears in the Security Register. Notwithstanding the foregoing, payment of the
principal of (and premium, if any, on), interest and Liquidated Damages, if any,
on Notes represented by Global Notes shall be made in accordance with procedures
required by the Depositary.
The Notes shall be redeemable as provided in Article Eleven.
SECTION 302. DENOMINATIONS.
The Notes shall be issuable only in registered form without coupons
and only in denominations of $1,000 and any integral multiple thereof.
SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.
The Notes shall be executed on behalf of the Company by its Chairman,
any Vice Chairman, its President or a Vice President, under its corporate seal
reproduced thereon and attested by its Secretary or an Assistant Secretary. The
signature of any of these officers on the Notes may be manual or facsimile
signatures of the present or any future such authorized officer and may be
imprinted or otherwise reproduced on the Notes.
Notes 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 Notes or did not hold
such offices at the date of such Notes.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Notes executed by the Company to the
Trustee for authentication, together with a Company Order for the authentication
and delivery of such
44
Notes, and the Trustee in accordance with such Company Order shall authenticate
and deliver such Notes.
Each Note shall be dated the date of its authentication.
No Note shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose unless there appears on such Note a
certificate of authentication substantially in the form provided for herein duly
executed by the Trustee by manual signature of a Responsible Officer, and such
certificate upon any Note shall be conclusive evidence, and the only evidence,
that such Note has been duly authenticated and delivered hereunder and is
entitled to the benefits of this Indenture.
In case the Company, pursuant to Article Eight, shall be consolidated
or merged with or into any other Person or shall convey, transfer, lease or
otherwise dispose of its properties and assets substantially as an entirety to
any Person, and the successor Person resulting from such consolidation, or
surviving such merger, or into which the Company shall have been merged, or the
Person which shall have received a conveyance, transfer, lease or other
disposition as aforesaid, shall have executed an indenture supplemental hereto
with the Trustee pursuant to Article Eight, any of the Notes authenticated or
delivered prior to such consolidation, merger, conveyance, transfer, lease or
other disposition may, from time to time, at the request of the successor
Person, be exchanged for other Notes executed in the name of the successor
Person with such changes in phraseology and form as may be appropriate, but
otherwise in substance of like tenor as the Notes surrendered for such exchange
and of like principal amount; and the Trustee, upon Company Request of the
successor Person, shall authenticate and deliver Notes as specified in such
request for the purpose of such exchange. If Notes shall at any time be
authenticated and delivered in any new name of a successor Person pursuant to
this Section in exchange or substitution for or upon registration of transfer of
any Notes, such successor Person, at the option of the Holders but without
expense to them, shall provide for the exchange of all Notes at the time
Outstanding for Notes authenticated and delivered in such new name.
SECTION 304. TEMPORARY NOTES.
Pending the preparation of definitive Notes, the Company may execute
and upon Company Order the Trustee shall authenticate and deliver, temporary
Notes which are printed, lithographed, typewritten or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Notes in
lieu of which they are issued and with such appropriate insertions, omissions,
substitutions and other variations as the officers executing such Notes may
determine, as conclusively evidenced by their execution of such Notes.
45
If temporary Notes are issued, the Company shall cause definitive
Notes to be prepared without unreasonable delay. After the preparation of
definitive Notes, the temporary Notes shall be exchangeable for definitive Notes
upon surrender of the temporary Notes at the office or agency of the Company
designated for such purpose pursuant to Section 1002, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Notes, the
Company shall execute and upon Company Order the Trustee shall authenticate and
deliver in exchange therefor a like principal amount of definitive Notes of
authorized denominations. Until so exchanged, the temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as definitive
Notes.
SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.
The Company shall cause to be kept at the Corporate Trust Office of
the Trustee a register (the register maintained in such office and in any other
office or agency designated pursuant to Section 1002 being herein sometimes
referred to as the "Security Register") in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the registration
of Notes and of transfers of Notes. The Security Register shall be in written
form or any other form capable of being converted into written form within a
reasonable time. At all reasonable times, the Security Register shall be open
to inspection by the Trustee. The Trustee is hereby initially appointed as
security registrar (the "Security Registrar") for the purpose of registering
Notes and transfers of Notes as herein provided.
Upon surrender for registration of transfer of any Note at the office
or agency of the Company designated pursuant to Section 1002, the Company shall
execute and the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes of any authorized
denomination or denominations of a like aggregate principal amount.
Furthermore, any Holder of the Restricted Global Note shall, by
acceptance of such Global Note, agree that transfers of beneficial interests in
such Global Note may be effected only through a book-entry system maintained by
the Holder of such Global Note (or its agent), and that ownership of a
beneficial interest in the Note shall be required to be reflected in a book
entry.
All Notes issued upon any registration of transfer or exchange of
Notes shall be the valid obligations of the Company and, pursuant to the Note
Guarantees, the Subsidiary Guarantors, evidencing the same debt, and entitled to
the same benefits under this Indenture, as the Notes surrendered upon such
registration of transfer or exchange.
Every Note presented or surrendered for registration of transfer or
for exchange shall be duly endorsed, or be accompanied by a written instrument
of transfer, in
46
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 or redemption of Notes, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Notes, other than
exchanges pursuant to Section 303, 304, 801, 906, 1009 or 1108 not involving any
transfer.
The Company shall not be required (i) to issue, register the transfer
of or exchange any Note during a period beginning at the opening of business 15
days before the selection of Notes to be redeemed under Section 1104 and ending
at the close of business on the day of such mailing of the relevant notice of
redemption, or (ii) to register the transfer of or exchange any Note so selected
for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part.
SECTION 306. MUTILATED, DESTROYED, LOST AND STOLEN NOTES.
If (i) any mutilated Note is surrendered to the Trustee, or (ii) the
Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Note, and there is delivered to the Company
and the Trustee such security or indemnity as may be required by them to save
each of them harmless, then, in the absence of actual notice to the Company or
the Trustee that such Note has been acquired by a bona fide purchaser, the
Company shall execute and the Trustee shall authenticate and deliver, in
exchange for any such mutilated Note or in lieu of any such destroyed, lost or
stolen Note, a new Note of like tenor and principal amount, bearing a number not
contemporaneously outstanding.
In case any such mutilated, destroyed, lost or stolen Note has become
or is about to become due and payable, the Company in its discretion may,
instead of issuing a new Note, pay such Note.
Upon the issuance of any new Note under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including
the fees and expenses of the Trustee) connected therewith.
Every new Note issued pursuant to this Section in lieu of any
destroyed, lost or stolen Note shall constitute an original additional
contractual obligation of the Company and, pursuant to the Note Guarantees, the
Subsidiary Guarantors, whether or not the destroyed, lost or stolen Note shall
be at any time enforceable by anyone, and shall be entitled to all benefits of
this Indenture equally and proportionately with any and all other Notes duly
issued hereunder.
47
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 Notes.
SECTION 307. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
Interest on any Note which is payable, and is punctually paid or duly
provided for, on any Interest Payment Date shall be paid to the Person in whose
name such Note (or one or more Predecessor Notes) is registered at the close of
business on the Regular Record Date for such interest at the office or agency of
the Company maintained for such purpose pursuant to Section 1002; PROVIDED,
HOWEVER, that each installment of interest may at the Company's option be paid
by mailing a check for such interest, payable to or upon the written order of
the Person entitled thereto pursuant to Section 308, to the address of such
Person as it appears in the Security Register. Notwithstanding the foregoing,
payment of (and premium, if any, on), interest and Liquidated Damages, if any,
on Notes represented by Global Notes shall be made in accordance with procedures
required by the Depositary.
Any interest on any Note which is payable, but is not punctually paid
or duly provided for, on any Interest Payment Date shall forthwith cease to be
payable to the Holder on the Regular Record Date by virtue of having been such
Holder, and such defaulted interest and (to the extent lawful) interest on such
defaulted interest at the rate borne by the Notes (such defaulted interest and
interest thereon herein collectively called "Defaulted Interest") may be paid by
the Company, at its election in each case, as provided in clause (1) or (2)
below:
(1) The Company may elect to make payment of any Defaulted Interest
to the Persons in whose names the Notes (or their respective Predecessor
Notes) are registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest, which shall be fixed in the
following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Note 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 in this
clause provided. Thereupon the Trustee shall fix a Special Record Date for
the payment of such Defaulted Interest which shall be not more than 15 days
and not less than 10 days prior to the date of the 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
48
Record Date therefor to be given in the manner provided for in
Section 106, not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so given, such Defaulted Interest shall be
paid to the Persons in whose names the Notes (or their respective
Predecessor Notes) are registered at the close of business on such Special
Record Date.
(2) 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 Notes 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, each Note
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Note shall carry the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Note.
SECTION 308. PERSONS DEEMED OWNERS.
Prior to the due presentment of a Note for registration of transfer,
the Company, the Subsidiary Guarantors, the Trustee and any agent of the
Company, the Subsidiary Guarantors or the Trustee may treat the Person in whose
name such Note is registered as the owner of such Note for the purpose of
receiving payment of principal of (and premium, if any, on) and (subject to
Sections 305 and 307) interest on such Note and for all other purposes
whatsoever, whether or not such Note be overdue, and none of the Company, any
Subsidiary Guarantor, the Trustee or any agent of the Company, any Subsidiary
Guarantor or the Trustee shall be affected by notice to the contrary.
SECTION 309. CANCELLATION.
All Notes surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee,
be delivered to the Trustee and shall be promptly cancelled by it. The Company
may at any time deliver to the Trustee for cancellation any Notes previously
authenticated and delivered hereunder which the Company may have acquired in any
manner whatsoever, and may deliver to the Trustee (or to any other Person for
delivery to the Trustee) for cancellation any Notes previously authenticated
hereunder which the Company has not issued and sold, and all Notes so delivered
shall be promptly cancelled by the Trustee. If the Company shall so acquire any
of the Notes, however, such acquisition shall not operate as a redemption or
satisfaction of the indebtedness represented by such Notes unless and until the
same are surrendered to the
49
Trustee for cancellation. No Notes shall be authenticated in lieu of or in
exchange for any Notes cancelled as provided in this Section, except as
expressly permitted by this Indenture. All cancelled Notes held by the
Trustee shall be disposed of by the Trustee in accordance with its customary
procedures and certification of their disposal delivered to the Company
unless by Company Order the Company shall direct that cancelled Notes be
returned to it.
SECTION 310. COMPUTATION OF INTEREST.
Interest on the Notes shall be computed on the basis of a 360-day year
of twelve 30-day months.
SECTION 311. BOOK-ENTRY PROVISIONS FOR GLOBAL NOTES.
(a) The Company shall execute and the Trustee shall, in accordance
with this Section 311, authenticate and deliver initially one or more Global
Notes that (a) shall be registered in the name of the Depositary for such Global
Note or Global Notes or the nominee of such Depositary, (b) shall be delivered
by the Trustee to such Depositary or pursuant to such Depositary's instructions
or held by the Custodian and (c) bear legends as set forth in Section 202.
Members of, or participants in the Depositary ("AGENT MEMBERS") shall
have no rights under this Indenture with respect to any Global Note held on
their behalf by the Depositary or by the Custodian or under such Global Note,
and the Depositary may be treated by the Company, the Trustee and any agent of
the Company or the Trustee as the absolute owner of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by
the Depositary or impair, as between the Depositary and its Agent Members, the
operation of customary practices of such Depositary governing the exercise of
the rights of a holder of a beneficial interest in any Global Note.
(b) Interests of beneficial owners in a Global Note may be
transferred in accordance with the applicable rules and procedures of the
Depositary and the provisions of Section 312. Transfers of a Global Note shall
be limited to transfers of such Global Note in whole, but not in part, to the
Depositary, its successors or their respective nominees except that Certificated
Notes shall be transferred to all beneficial owners in exchange for their
beneficial interests in the Global Note in the following circumstances: (x) the
Depositary notifies the Company that it is unwilling or unable to continue as
Depositary for the applicable Global Note or the Depositary ceases to be a
"Clearing Agency" registered under the Exchange Act and a successor depositary
is not appointed by the Company within 90 days or (y) the Company, at its sole
discretion, notifies the Trustee in writing that it elects to cause the issuance
of Certificated Notes under this Indenture in exchange for all or
50
any part of the Notes represented by a Global Note or Global Notes. In
connection with a transfer of an entire Global Note to beneficial owners
pursuant to this paragraph, the applicable Global Note shall be deemed to be
surrendered to the Trustee for cancellation, and the Company shall execute,
and the Trustee shall authenticate and deliver, to each beneficial owner
identified by the Depositary in exchange for its beneficial interest in the
applicable Global Note, an equal aggregate principal amount at maturity of
Certificated Notes of authorized denominations.
(c) Any beneficial interest in a Global Note that is transferred to a
person who takes delivery in the form of an interest in another Global Note
will, upon transfer, cease to be an interest in such Global Note and become an
interest in the other Global Note and, accordingly, will thereafter be subject
to all transfer restrictions, if any, and other procedures applicable to
beneficial interests in such other Global Note for as long as it remains such an
interest.
(d) Any Certificated Note delivered in exchange for an interest in
the Restricted Global or Regulation S Global Note pursuant to paragraph (b) of
this Section shall bear the Private Placement Legend if required by Section 202.
SECTION 312. TRANSFER AND EXCHANGE.
(a) TRANSFER AND EXCHANGE OF CERTIFICATED NOTES. If Certificated
Notes are presented by a Holder to the Registrar with a request:
(x) to register the transfer of the Certificated Notes; or
(y) to exchange such Certificated Notes for an equal principal amount
of Certificated Notes of other authorized denominations,
the Registrar shall register the transfer or make the exchange as requested if
its requirements for such transactions are met; PROVIDED, HOWEVER, that the
Certificated Notes presented or surrendered for register of transfer or
exchange:
(i) shall be duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by
such Holder or by such Holder's attorney, duly authorized in
writing; and
(ii) are being delivered to the Registrar by a Holder for registration
in the name of such Holder, without transfer or are being
transferred or exchanged pursuant to an effective registration
statement under the Securities Act, pursuant to Section 312(b) or
pursuant to clause (A) or
51
(B) below, and are accompanied by the following additional
information and documents, as applicable:
(A) if such Certificated Notes are being transferred to the
Company, a certification to that effect from such Holder (in
substantially the form of Exhibit A hereto); or
(B) if such Certificated Notes are being transferred (x)
pursuant to an exemption from registration in accordance
with Rule 144, (y) in reliance on another exemption from the
registration requirements of the Securities Act, or (z) to
an Institutional Accredited Investor that is acquiring the
Note for its own account or for the account of one or more
other Institutional Accredited Investors, in each case for
investment purposes and not with a view to, or for offer or
sale in connection with, any distribution in violation of
the Securities Act: (i) a certification to that effect (in
substantially the form of Exhibit A hereto) and such other
certifications as the Trustee may reasonably request,
(ii) if applicable, a letter with respect to the transfer
(in substantially the form of Exhibit C hereto and (iii) in
each case, an Opinion of Counsel if requested by the Company
or the Trustee, Registrar or Transfer Agent as to the
compliance with the restrictions set forth in the Private
Placement Legend.
(b) RESTRICTIONS ON TRANSFER OF A CERTIFICATED NOTE FOR A BENEFICIAL
INTEREST IN A GLOBAL NOTE. A Certificated Note may not be exchanged for a
beneficial interest in a Global Note except upon satisfaction of the
requirements set forth below. Upon receipt by the Trustee of a Certificated
Note, duly endorsed or accompanied by appropriate instruments of transfer, in
form satisfactory to the Trustee, together with:
(i) certification from the Holder thereof (in substantially the form
of Exhibit A hereto) that such Certificated Note is being
transferred to (A) a QIB in accordance with Rule 144A or
(B) outside the United States in an offshore transaction within
the meaning of Regulation S and in compliance with Rule 904 under
the Securities Act and, in the case of clause A, certification
from the purchaser thereof in substantially the form of Exhibit A
hereto; and
(ii) written instructions from the Holder thereof directing the
Trustee to make, or to direct the Custodian to make, an
adjustment on its books and records with respect to the
Regulation S Global Note or the Restricted Global Note, as the
case may be, to reflect an increase in the
52
aggregate principal amount of the Notes represented by such
Global Note, such instructions to contain information regarding
the Depositary account (or in the case of the Regulation S Global
Note only, the Euroclear or Cedel account) to be credited with
such increase;
then the Trustee shall cancel such Certificated Note and cause, or direct the
Custodian to cause, in accordance with the standing instructions and procedures
existing between the Depositary and the Custodian (including the rules of
Euroclear and Cedel, if applicable), the aggregate principal amount of Notes
represented by the Regulation S Global Note or the Restricted Global Note, as
the case may be, to be increased by the aggregate principal amount of the
Certificated Note to be exchanged and shall credit or cause to be credited to
the account of the Person specified in such instructions a beneficial interest
in such Global Note equal to the principal amount of the Certificated Note so
cancelled. If no applicable Global Notes are then outstanding, the Company shall
issue and the Trustee shall authenticate, upon written order of the Company in
the form of an Officers' Certificate, a new Regulation S Global Note or
Restricted Global Note, as the case may be, in the appropriate principal amount.
(c) TRANSFER AND EXCHANGE OF GLOBAL NOTES. (i) The transfer and
exchange of Global Notes or beneficial interests in Global Notes will be
effected through the Depositary, in accordance with this Indenture (including
applicable restrictions on transfer set forth herein, if any) and the procedures
of the Depositary therefor, including the rules and procedures of Euroclear and
Cedel, if applicable. A transferor of a beneficial interest in a Global Note to
another Global Note shall deliver to the Registrar:
(A) if applicable, instructions given in accordance with the
Depositary's procedures directing the Trustee to credit or cause
to be credited a beneficial interest in the applicable Global
Note in an amount equal to the beneficial interest in the Global
Note to be exchanged; and
(B) a written order given in accordance with the Depositary's
procedures containing information regarding the Euroclear, Cedel
or other participant account of the Depositary to be credited
with such increase.
The Registrar shall, in accordance with such instructions, instruct
the Depositary to increase and reduce, as applicable, the principal amount of
each applicable Global Note to the extent required and to credit to the account
of the Person specified in such instructions a beneficial interest in the
applicable Global Note and to debit the account of the Person making the
transfer the beneficial interest in the Global Note being transferred.
(ii) Notwithstanding any other provisions of this Indenture, prior to
the expiration of the "40-day restricted period", transfers of interests in the
Regulation S Global
53
Note to "U.S. persons" (as defined in Regulation S) shall be limited to
transfers to QIBs pursuant to Rule 144A which Persons shall thereby acquire a
beneficial interest in the Restricted Global Note and in connection therewith
the transferors shall provide a certification (in substantially the form of
Exhibit A hereto) confirming the character of the transferee in connection
with any transfers prior to the expiration of such period. The Company shall
advise the Trustee as to the expiration of the "40-day restricted period" and
the Trustee may rely conclusively thereon.
(iii) In the event that a Global Note is exchanged for Notes in
definitive registered form pursuant to Section 311 prior to the consummation
of an Exchange Offer or the effectiveness of a Shelf Registration Statement
with respect to such Notes, such Notes may be exchanged only in accordance
with procedures as are substantially consistent with the provisions of this
Section 312 (including the certification requirements set forth on Exhibit A
intended to ensure that such transfers comply with Rule 144A or Regulation S,
as the case may be) and such other procedures as may from time to time be
adopted by the Company.
(d) TRANSFER OF A BENEFICIAL INTEREST IN A GLOBAL NOTE FOR A
CERTIFICATED NOTE. (i) Subject to Section 312(c)(iii), any person having a
beneficial interest in a Global Note may transfer such beneficial interest to
an Institutional Accredited Investor that is acquiring the Note for its own
account or for the account of one or more other Institutional Accredited
Investors, in each case for investment purposes and not with a view to, or
for offer or sale in connection with, any distribution in violation of the
Securities Act; PROVIDED, HOWEVER, that any written order or such other form
of instructions as is customary for the Depositary, from the Depositary or
its nominee on behalf of any Person having a beneficial interest in such
Global Note shall be accompanied by (i) a certification from the transferee
or transferor with respect to the transfer (in substantially the form of
Exhibit A) and such other certifications as the Trustee may reasonably
request, (ii) if applicable, a letter with respect to the transfer (in
substantially the form of Exhibit C hereto) and (iii) an Opinion of Counsel
if requested by the Company or the Trustee, Registrar or Transfer Agent as to
the compliance with the Private Placement Legend.
Upon receipt by the Trustee of such information and documents, the Trustee
or the Custodian, at the direction of the Trustee, shall cause, in accordance
with the standing instructions and procedures existing between the Depositary
and the Custodian, including the rules and procedures of Euroclear or Cedel, if
applicable, the aggregate principal amount of the Global Note to be reduced on
its books and records and, following such reduction, the Company shall execute
and the Trustee shall authenticate and deliver to the transferee a Certificated
Note.
(ii) Certificated Notes issued in exchange for a beneficial interest in a
Global Note pursuant to this Section 312(d) shall be registered in such names
and in such authorized denominations as Euroclear or Cedel, if applicable, and
the Depositary, pursuant to
54
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Certificated Notes to
the persons in whose names such Notes are so registered in accordance with
the instructions of the Depositary.
(e) CERTAIN TRANSFERS IN CONNECTION WITH AND AFTER THE EXCHANGE
OFFER. Notwithstanding any other provision of this Indenture: (i) no Exchange
Note may be exchanged by the Holder thereof for an Initial Note; (ii) accrued
and unpaid interest on the Initial Notes being exchanged in the Exchange Offer
will be due and payable on the next Interest Payment Date for the Exchange Notes
following the Exchange Offer; and (iii) interest on the Exchange Notes to be
issued in the Exchange Offer will accrue from the date of the Exchange Offer.
SECTION 313. CUSIP NUMBERS.
The Company may use "CUSIP" numbers in issuing the Notes (if then
generally in use), and, if so, the Trustee shall use "CUSIP" numbers in notices
of redemption as a convenience to Holders; PROVIDED, HOWEVER, that any such
notice may state that no representation is made as to the correctness of such
"CUSIP" numbers either as printed on the Notes or as contained in any notice of
a redemption and that reliance may be placed only on the other identification
numbers printed on the Notes, and any such redemption shall not be affected by
any defect in or omission of such "CUSIP" numbers.
ARTICLE FOUR
SATISFACTION AND DISCHARGE
SECTION 401. SATISFACTION AND DISCHARGE OF INDENTURE.
This Indenture shall upon Company Request cease to be of further
effect (except as to surviving rights of registration of transfer or exchange of
Notes issued under this Indenture) and the Trustee, at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture when
(1) either
(A) all Notes theretofore authenticated and delivered (except
(i) lost, stolen or destroyed Notes which have been replaced or paid
as provided in Section 306 and (ii) Notes for whose payment funds have
theretofore been deposited in trust by the Company with the Trustee or
any Paying Agent or segregated and held in trust by the Company and
thereafter repaid to the
55
Company or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee for cancellation; or
(B) all such Notes not theretofore delivered to the Trustee for
cancellation
(i) have become due and payable, or
(ii) will become due and payable at their Stated Maturity
within one year, and
either the Company or any Subsidiary Guarantor has irrevocably
deposited or caused to be deposited with the Trustee funds in an
amount sufficient to pay and discharge the entire indebtedness on such
Notes not theretofore delivered to the Trustee for cancellation, for
principal of, premium and Liquidated Damages, if any, and interest to
the date of such deposit;
(2) the Company or any Subsidiary Guarantor has paid all other sums
payable hereunder by the Company and any Subsidiary Guarantors; and
(3) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent
herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with and that such satisfaction and discharge
will not result in a breach or violation of, or constitute a default under,
this Indenture or any other material agreement or instrument to which the
Company or any Subsidiary Guarantor is a party or by which it is bound.
Notwithstanding the satisfaction and discharge of this Indenture, the
obligations of the Company to the Trustee under Section 606 and, if money shall
have been deposited with the Trustee pursuant to subclause (B) of clause (1) of
this Section, the obligations of the Trustee under Section 402 and the last
paragraph of Section 1003 shall survive.
SECTION 402. APPLICATION OF TRUST MONEY.
Subject to the provisions of the last paragraph of Section 1003, all
money deposited with the Trustee pursuant to Section 401 shall be held in trust
and applied by it, in accordance with the provisions of the Notes 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 and
Liquidated Damages, if any) and interest for whose payment such money has
56
been deposited with the Trustee; but such money need not be segregated from
other funds except to the extent required by law.
ARTICLE FIVE
REMEDIES
SECTION 501. EVENTS OF DEFAULT.
"Event of Default", wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
(1) default in the payment of any interest on the Notes issued under
this Indenture when such interest becomes due and payable, and continuance
of such default for a period of 30 days; or
(2) default in the payment of the principal of (or premium, if any,
on) any Notes at its Maturity; or
(3) (A) default in the performance, or breach, of any covenant or
agreement of the Company or any Subsidiary Guarantor under this Indenture
(other than a default in the performance, or breach, of a covenant or
agreement which is specifically dealt with in the immediately preceding
clauses (1) and (2) or clauses (B) and (C) of this clause (3)), and such
default or breach shall continue for a period of 60 days after written
notice has been given, by certified mail, (x) to the Company by the Trustee
or (y) to the Company and the Trustee by the Holders of at least 25% in
principal amount of the Outstanding Notes specifying such default or breach
and requiring it to be remedied and stating that such notice is a "Notice
of Default" hereunder; (B) default in the performance or breach of the
provisions in Article Eight or Section 1016; or (C) the Company shall have
failed to comply with the provisions of Section 1009 for any reason,
including the inconsistency of such covenant with the Company's Bylaws as
in effect on the date of this Indenture; or
(4) (A) there shall have occurred any default in the payment of
principal of any Indebtedness under any agreements, indentures (including
any such default under the Notes due 2007 Indenture) or instruments under
which the Company or any Restricted Subsidiary of the Company then has
outstanding Indebtedness in excess of $50 million when the same shall
become due and payable in full and such default shall have continued after
any applicable grace period and shall not have been cured
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or waived or (B) an event of default as defined in any of the agreements,
indentures or instruments described in clause (A) of this clause (4) shall
have occurred and the Indebtedness thereunder, if not already matured at
its final maturity in accordance with its terms, shall have been
accelerated or otherwise declared due and payable, or required to be
prepaid or repurchased (other than by regularly scheduled required
prepayment), prior to the stated maturity thereof; or
(5) any Person entitled to take the actions described in this
clause (5), after the occurrence of any event of default on Indebtedness in
excess of $50 million in the aggregate of the Company or any Restricted
Subsidiary, shall notify the Trustee of the intended sale or disposition of
any assets of the Company or any Restricted Subsidiary that have been
pledged to or for the benefit of such Person to secure such Indebtedness or
shall commence proceedings, or take any action (including by way of
set-off) to retain in satisfaction of any Indebtedness, or to collect on,
seize, dispose of or apply, any such assets of the Company or any
Restricted Subsidiary (including funds on deposit or held pursuant to
lock-box and other similar arrangements), pursuant to the terms of any
agreement or instrument evidencing any such Indebtedness or in accordance
with applicable law; or
(6) any Note Guarantee of any Significant Subsidiary individually or
any other Subsidiaries if such Restricted Subsidiaries in the aggregate
represent at least 15% of the assets of the Company and its Restricted
Subsidiaries on a Consolidated basis with respect to such Notes shall for
any reason cease to be, or be asserted in writing by the Company, any
Subsidiary Guarantor or any other Restricted Subsidiary of the Company, as
applicable, not to be, in full force and effect, enforceable in accordance
with its terms, except pursuant to the release of any such Note Guarantee
in accordance with this Indenture; or
(7) one or more judgments, orders or decrees for the payment of money
in excess of $50 million (net of amounts covered by insurance, bond or
similar instrument), either individually or in an aggregate amount, entered
against the Company or any Restricted Subsidiary or any of their respective
properties which is not discharged and either (A) any creditor shall have
commenced an enforcement proceeding upon such judgment, order or decree or
(B) there shall have been a period of 60 consecutive days during which a
stay of enforcement of such judgment or order, by reason of pending appeal
or otherwise, shall not be in effect; or
(8) the entry by a court of competent jurisdiction of (A) 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
(B) a decree or order adjudging the Company or any Significant Subsidiary
bankrupt or insolvent, or seeking reorganization, arrangement, adjustment
or composition of or in respect of the
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Company or any 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 Significant
Subsidiary or of any substantial part of its property, or ordering the
winding up or liquidation of its affairs, and any such decree or order
for relief shall continue to be in effect, or any such other decree or
order shall be unstayed and in effect, for a period of 60 consecutive
days; or
(9) (A) the commencement by the Company or any Significant
Subsidiary of a voluntary case or proceeding under any applicable
Bankruptcy Law or any other case or proceeding to be adjudicated bankrupt
or insolvent, (B) the Company or any Significant Subsidiary consents to the
entry of a decree or order for relief in respect of the Company or such
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 it, (C) the Company or any
Significant Subsidiary files a petition or answer or consent seeking
reorganization or relief under any applicable federal or state law, (D)
the Company or any Significant Subsidiary (x) consents to the filing of
such petition or the appointment of, or taking possession by, a custodian,
receiver, liquidator, assignee, trustee, sequestrator or similar official
of the Company or such Significant Subsidiary or of any substantial part of
its property, (y) makes an assignment for the benefit of creditors or (z)
admits in writing its inability to pay its debts generally as they become
due or (E) the Company or any Significant Subsidiary takes any corporate
action in furtherance of any such actions in this clause (9).
SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
If an Event of Default (other than an Event of Default specified in
Section 501(8) or 501(9)) shall occur and be continuing, then and in every such
case the Trustee, by notice to the Company, or the Holders of at least 25% in
aggregate principal amount of the Notes Outstanding by a notice in writing to
the Company and to the Trustee, may declare all amounts payable in respect of
such Notes to be due and payable immediately, and upon any such declaration such
amounts shall become immediately due and payable. If an Event of Default
specified in Section 501(8) or 501(9) occurs and is continuing, then all amounts
payable in respect of such Notes shall IPSO FACTO become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder.
At any time after a declaration of acceleration has been made and
before a judgment or decree for payment of the money due has been obtained by
the Trustee as hereinafter in this Article provided, the Holders of a majority
in aggregate principal amount of the Notes Outstanding, by written notice to the
Company and the Trustee, may rescind or annul such declaration if
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(1) the Company has paid or deposited with the Trustee a sum
sufficient to pay
(A) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel,
(B) all overdue interest on all Outstanding Notes, and
(C) to the extent that payment of such interest is lawful,
interest upon overdue interest at the rate borne by the Notes; and
(2) all Events of Default, other than the non-payment of principal of
such Notes which have become due solely by such declaration of
acceleration, have been cured or waived as provided in Section 513.
No such rescission or annulment shall affect any subsequent default or impair
any right consequent thereon.
SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.
The Company covenants that if
(a) default is made in the payment of any installment of interest on
any Note when such interest becomes due and payable and such default
continues for a period of 30 days, or
(b) default is made in the payment of the principal of (or premium,
if any, on) any Note at the Maturity thereof,
the Company shall, upon demand of the Trustee, pay to the Trustee for the
benefit of the Holders of such Notes, the whole amount then due and payable on
such Notes for principal (and premium, if any) and interest, and interest on any
overdue principal (and premium, if any) and, to the extent that payment of such
interest shall be legally enforceable, upon any overdue installment of interest,
at the rate borne by the Notes, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand,
the Trustee, in its own name as trustee of an express trust, may institute a
judicial proceeding for
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the collection of the sums so due and unpaid, may prosecute such proceeding
to judgment or final decree and may enforce the same against the Company or
any other obligor upon the Notes and collect the moneys adjudged or decreed
to be payable in the manner provided by law out of the property of the
Company or any other obligor upon the Notes, wherever situated.
If an Event of Default occurs and is continuing, the Trustee may in
its discretion proceed to protect and enforce its rights and the rights of the
Holders by such appropriate judicial proceedings as the Trustee shall deem most
effectual to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the
exercise of any power granted herein, or to enforce any other proper remedy.
SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the Notes
or the property of the Company or of such other obligor or their creditors, the
Trustee (irrespective of whether the principal of the Notes shall then be due
and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Company for the payment
of overdue principal, premium, if any, or interest) shall be entitled and
empowered, by intervention in such proceeding or otherwise,
(i) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest owing and unpaid in respect of the Notes and
to file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel) and of the Holders allowed in such
judicial proceeding, and
(ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay the
Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 606.
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Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceeding.
SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF NOTES.
All rights of action and claims under this Indenture or the Notes may
be prosecuted and enforced by the Trustee without the possession of any of the
Notes or the production thereof in any proceeding relating thereto, and any such
proceeding instituted by the Trustee shall be brought in its own name and as
trustee of an express trust, and any recovery of judgment shall, after provision
for the payment of the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, be for the ratable benefit of
the Holders of the Notes in respect of which such judgment has been recovered.
SECTION 506. 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, upon presentation of the Notes 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 606;
SECOND: To the payment of the amounts then due and unpaid for
principal of (and premium, if any, on,) and interest on the Notes 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 Notes for principal (and premium, if any)
and interest, respectively; and
THIRD: The balance, if any, to the Person or Persons entitled
thereto.
SECTION 507. LIMITATION ON SUITS.
No Holder of any Notes 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
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(1) such Holder has previously given written notice to the Trustee of
a continuing Event of Default;
(2) the Holders of not less than 25% in principal amount of the
Outstanding Notes shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default in its own name
as Trustee hereunder;
(3) such Holder or Holders have offered to the Trustee indemnity
reasonably satisfactory to the Trustee against the costs, expenses and
liabilities to be incurred in compliance with such request;
(4) the Trustee, for 60 days after its receipt of such notice,
request and offer of reasonably satisfactory indemnity, has failed to
institute any such proceeding; and
(5) no direction inconsistent with such written request has been
given to the Trustee during such 60-day period by the Holders of a majority
or more in principal amount of the Outstanding Notes;
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 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL,
PREMIUM AND INTEREST.
Notwithstanding any other provision in this Indenture, the Holder of
any Note shall have the right, which is absolute and unconditional, to receive
payment, as provided herein (including, if applicable, Article Thirteen) and in
such Note, of the principal of (and premium, if any, on) and (subject to
Section 307) interest on, such Note on the respective Stated Maturities
expressed in such Note (or, in the case of redemption, on the Redemption Date)
and to institute suit for the enforcement of any such payment, and such rights
shall not be impaired without the consent of such Holder.
SECTION 509. RESTORATION OF RIGHTS AND REMEDIES.
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture 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
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every such case, subject to any determination in such proceeding, the
Company, the Subsidiary Guarantors, 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 510. RIGHTS AND REMEDIES CUMULATIVE.
Except as otherwise provided with respect to the replacement or
payment of mutilated, destroyed, lost or stolen Notes in the last paragraph of
Section 306, 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,
subject to the provisions of Section 507, every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.
SECTION 511. DELAY OR OMISSION NOT WAIVER.
No delay or omission of the Trustee or of any Holder of any Note to
exercise any right or remedy accruing upon any Event of Default shall impair any
such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to
the Trustee or to the Holders may be exercised from time to time, and as often
as may be deemed expedient, by the Trustee or by the Holders, as the case may
be.
SECTION 512. CONTROL BY HOLDERS.
The Holders of not less than a majority in principal amount of the
Outstanding Notes 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
(1) such direction shall not be in conflict with any rule of law or
with this Indenture,
(2) the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction, and
(3) the Trustee need not take any action which might involve it in
personal liability or be unjustly prejudicial to the Holders not
consenting.
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SECTION 513. WAIVER OF PAST DEFAULTS.
The Holders of not less than a majority in principal amount of the
Outstanding Notes may on behalf of the Holders of all the Notes waive any past
default hereunder and its consequences, except a default
(1) in respect of the payment of the principal of (or premium, if
any, on) or interest on any Note, or
(2) in respect of a covenant or provision hereof which under Article
Nine cannot be modified or amended without the consent of the Holder of
each Outstanding Note 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 Event of Default or impair any right consequent thereon.
SECTION 514. WAIVER OF STAY OR EXTENSION LAWS.
Each of the Company and the Subsidiary Guarantors covenants (to the
extent that it may lawfully do so) that it shall 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
each of the Company and the Subsidiary Guarantors (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such law
and covenants that it shall not hinder, delay or impede the execution of any
power herein granted to the Trustee, but shall suffer and permit the execution
of every such power as though no such law had been enacted.
SECTION 515. NOTICE OF DEFAULTS.
Within ten days after the occurrence of any Default hereunder, the
Company shall transmit in the manner and to the extent provided in TIA
Section 313(c), notice to the Trustee of such Default hereunder known to the
Company or any Subsidiary Guarantor, unless such Default shall have been
cured or waived.
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ARTICLE SIX
THE TRUSTEE
SECTION 601. NOTICE OF DEFAULTS.
Within 90 days after the occurrence of any Default hereunder, the
Trustee shall transmit in the manner and to the extent provided in TIA
Section 313(c), notice of such Default hereunder known to the Trustee, unless
such Default shall have been cured or waived; PROVIDED, HOWEVER, that, except in
the case of a Default in the payment of the principal of (or premium, if any,
on) or interest on any Note, the Trustee shall be protected in withholding such
notice if and so long as the board of directors, the executive committee or a
trust committee of directors and/or Responsible Officers of the Trustee in good
faith determines that the withholding of such notice is in the interest of the
Holders; and PROVIDED FURTHER that in the case of any Default of the character
specified in Section 501(3) no such notice to Holders shall be given until at
least 30 days after the occurrence thereof.
SECTION 602. CERTAIN RIGHTS OF TRUSTEE.
Subject to the provisions of TIA Sections 315(a) through 315(d):
(1) the Trustee may rely and shall be protected in acting or
refraining from acting upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document believed by it to be genuine and to have been signed or presented
by the proper party or parties;
(2) any request or direction of the Company mentioned herein shall be
sufficiently evidenced by a Company Request or Company Order and any
resolution of the Board of Directors may be sufficiently evidenced by a
Board Resolution;
(3) 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;
(4) 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;
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(5) the Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall
have offered to the Trustee security or indemnity reasonably satisfactory
to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction;
(6) the Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order,
bond, debenture, note, other evidence of indebtedness or other paper or
document, but the Trustee, in its discretion, may make such further inquiry
or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it
shall be entitled at all reasonable times to examine the books, records and
premises of the Company and the Subsidiary Guarantors, personally or by
agent or attorney;
(7) 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; and
(8) the Trustee shall not be liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within
the discretion or rights or powers conferred upon it by this Indenture.
The Trustee shall not be required to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of 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.
SECTION 603. TRUSTEE NOT RESPONSIBLE FOR RECITALS OR ISSUANCE OF
NOTES.
The recitals contained herein and in the Notes, except for the
Trustee's certificates of authentication, shall be taken as the statements of
the Company or the Subsidiary Guarantors, and the Trustee assumes no
responsibility for their correctness. The Trustee makes no representations as
to the validity or sufficiency of this Indenture or of the Notes, except that
the Trustee represents that it is duly authorized to execute and deliver this
Indenture, authenticate the Notes and perform its obligations hereunder and that
the statements made by it in any Statement of Eligibility of Form T-1 supplied
to the Company are true and accurate, subject to the qualifications set forth
therein. The Trustee shall not be accountable for the use or application by the
Company of Notes or the proceeds thereof.
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SECTION 604. MAY HOLD NOTES.
The Trustee, any Paying Agent, any Security Registrar or any other
agent of the Company or of the Trustee, in its individual or any other capacity,
may become the owner or pledgee of Notes and, subject to TIA Sections 310(b) and
311, may otherwise deal with the Company and any Subsidiary Guarantor with the
same rights it would have if it were not Trustee, Paying Agent, Security
Registrar or such other agent.
SECTION 605. MONEY HELD IN TRUST.
Cash in United States dollars or U.S. Government Obligations 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 such cash or U.S. Government Obligations received by it
hereunder except as otherwise agreed in writing with the Company or any
Subsidiary Guarantor.
SECTION 606. COMPENSATION AND REIMBURSEMENT.
The Company agrees:
(1) to pay to the Trustee from time to time 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);
(2) 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 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 bad
faith; and
(3) to indemnify the Trustee for, and to hold it harmless against,
any loss, liability or expense incurred without negligence or bad faith on
its part, arising out of or in connection with the acceptance,
administration or enforcement of this trust, including the costs and
expenses of defending itself against any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder.
The obligations of the Company under this Section to compensate the
Trustee, to pay or reimburse the Trustee for expenses, disbursements and
advances and to indemnify and hold harmless the Trustee shall constitute
indebtedness and 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 Notes upon all property
and funds held
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or collected by the Trustee as such, except funds held in trust for the
payment of principal of (and premium, if any, on) or interest on particular
Notes.
SECTION 607. CORPORATE TRUSTEE REQUIRED; ELIGIBILITY.
There shall at all times be a Trustee hereunder which shall be
eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined
capital and surplus of at least $50 million. If such corporation publishes
reports of condition at least annually, pursuant to law or to the requirements
of federal, state, territorial or District of Columbia supervising or examining
authority, then for the purposes of this Section, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent report of condition so published. If at
any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.
SECTION 608. 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 shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of Section 609.
(b) The Trustee may resign at any time by giving written notice
thereof to the Company addressed to the Company and the Subsidiary Guarantors.
If the instrument of acceptance by a successor Trustee required by Section 609
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of 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
not less than a majority in principal amount of the Outstanding Notes, delivered
to the Trustee and to the Company addressed to the Company and the Subsidiary
Guarantors.
(d) If at any time:
(1) the Trustee shall fail to comply with the provisions of TIA
Section 310(b) after written request therefor by the Company, any
Subsidiary Guarantor or by any Holder who has been a bona fide Holder of a
Note for at least six months, or
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(2) the Trustee shall cease to be eligible under Section 607 and
shall fail to resign after written request therefor by the Company, any
Subsidiary Guarantor or by any Holder who has been a bona fide Holder of a
Note for at least six months, or
(3) the Trustee shall become incapable of acting or shall be adjudged
a bankrupt or insolvent or a receiver of the Trustee or of its property
shall be appointed or any public officer shall take charge or control of
the Trustee or of its property or affairs for the purpose of
rehabilitation, conservation or liquidation,
then, in any such case, (i) the Company, by a Board Resolution, may remove the
Trustee, or (ii) subject to TIA Section 315(e), any Holder who has been a bona
fide Holder of a Note for at least six months may, on behalf of itself 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 shall resign, be removed or become incapable of
acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee. If,
within one year after such resignation, removal or incapability, or the
occurrence of such vacancy, a successor Trustee shall be appointed by Act of the
Holders of a majority in principal amount of the Outstanding Notes delivered to
the Company, the Subsidiary Guarantors 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 shall have 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 Note for at least six
months may, on behalf of itself 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 the
Holders of Notes in the manner provided for in Section 106. Each notice shall
include the name of the successor Trustee and the address of its Corporate Trust
Office.
SECTION 609. 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,
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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 shall be qualified and eligible under
this Article.
SECTION 610. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO
BUSINESS.
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
PROVIDED such corporation shall be otherwise qualified and eligible under this
Article, without the execution or filing of any paper or any further act on the
part of any of the parties hereto. In case any Notes shall have been
authenticated, but not delivered, by the Trustee then in office, any successor
by merger, conversion or consolidation to such authenticating Trustee may adopt
such authentication and deliver the Notes so authenticated with the same effect
as if such successor Trustee had itself authenticated such Notes; and in case at
that time any of the Notes shall not have been authenticated, any successor
Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Notes or in
this Indenture provided that the certificate of the Trustee shall have;
PROVIDED, HOWEVER, that the right to adopt the certificate of authentication of
any predecessor Trustee or to authenticate Notes in the name of any predecessor
Trustee shall apply only to its successor or successors by merger, conversion or
consolidation.
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE, COMPANY AND SUBSIDIARY GUARANTORS
SECTION 701. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS.
Every Holder of Notes, by receiving and holding the same, agrees with
the Company and the Trustee that none of the Company or the Trustee or any agent
of either of them shall be held accountable by reason of the disclosure of any
such information as to the names and addresses of the Holders in accordance with
TIA Section 312, regardless of the
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source from which such information was derived, and that the Trustee shall
not be held accountable by reason of mailing any material pursuant to a
request made under TIA Section 312(b).
SECTION 702. REPORTS BY TRUSTEE.
Within 60 days after May 15 of each year commencing with the first
May 15 after the first issuance of Notes, the Trustee shall transmit to the
Holders, in the manner and to the extent provided in TIA Section 313(c), a brief
report dated as of such May 15 if required by TIA Section 313(a).
SECTION 703. REPORTS BY COMPANY AND SUBSIDIARY GUARANTORS.
The Company and each of the Subsidiary Guarantors shall:
(1) file with the Trustee, within 15 days after the Company or such
Subsidiary Guarantor is required to file the same with the Commission,
copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the
Commission may from time to time by rules and regulations prescribe) which
the Company or such Subsidiary Guarantor may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or,
if the Company or any of the Subsidiary Guarantors is not required to file
information, documents or reports pursuant to either of said Sections, then
they shall file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such
of the supplementary and periodic information, documents and reports which
may be required pursuant to Section 13 of the Exchange Act in respect of a
security listed and registered on a national securities exchange as may be
prescribed from time to time in such rules and regulations;
(2) file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such
additional information, documents and reports with respect to compliance by
the Company with the conditions and covenants of this Indenture as may be
required from time to time by such rules and regulations; and
(3) transmit by mail to all Holders, in the manner and to the extent
provided in TIA Section 313(c), within 30 days after the filing thereof
with the Trustee, such summaries of any information, documents and reports
required to be filed by the Company pursuant to paragraphs (1) and (2) of
this Section as may be required by rules and regulations prescribed from
time to time by the Commission;
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PROVIDED, HOWEVER, that any Subsidiary Guarantor shall be relieved of its
obligations under clauses (1) and (2) of this Section to the extent that it is
relieved of its obligations under Section 13 or Section 15(d) of the Exchange
Act by the Commission pursuant to the terms of any no-action letter addressed to
the Company or such Subsidiary Guarantor from the staff of the Commission.
ARTICLE EIGHT
CONSOLIDATION, MERGER, SALE OF ASSETS
SECTION 801. COMPANY MAY CONSOLIDATE, ETC., ONLY ON CERTAIN TERMS.
The Company shall not, in a single transaction or a series of related
transactions, consolidate with or merge with or into any other Person or sell,
assign, convey, transfer, lease or otherwise dispose of all or substantially all
of its properties and assets to any Person or group of affiliated Persons, or
permit any of its Restricted Subsidiaries to enter into any such transaction or
transactions if such transaction or transactions, in the aggregate, would result
in a sale, assignment, transfer, lease or disposal of all or substantially all
of the properties and assets of the Company and its Subsidiaries on a
Consolidated basis to any other Person or group of affiliated Persons, unless at
the time and after giving effect thereto:
(1) either
(A) the Company shall be the surviving or continuing corporation
or
(B) the Person (if other than the Company) formed by such
consolidation or into which the Company is merged or the Person which
acquires by sale, assignment, conveyance, transfer, lease or
disposition, the properties and assets of the Company substantially as
an entirety (the "Surviving Entity")
(i) shall be a corporation duly organized and validly
existing under the laws of the United States, any state thereof
or the District of Columbia and
(ii) shall, in any case, expressly assume, by a supplemental
indenture, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all of the obligations of the
Company under the Notes and this Indenture, and this Indenture
shall remain in full force and effect;
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(2) immediately before and immediately after giving effect to such
transaction on a PRO FORMA basis (and treating any Indebtedness not
previously an obligation of the Company or any of its Restricted
Subsidiaries which becomes an obligation of the Company or any of its
Restricted Subsidiaries in connection with or as a result of such
transaction as having been incurred at the time of such transaction), no
Default or Event of Default shall have occurred and be continuing;
(3) immediately after giving effect to such transaction, except in
the case of a merger of the Company with or into a Wholly Owned Restricted
Subsidiary, the Company (or the Surviving Entity if the Company is not the
continuing obligor under this Indenture) will have a Consolidated Net Worth
equal to or greater than the Consolidated Net Worth of the Company
immediately preceding the transaction;
(4) immediately after giving effect to such transaction on a PRO
FORMA basis (on the assumption that the transaction occurred on the first
day of the four-quarter period immediately prior to the consummation of
such transaction with the appropriate adjustments with respect to the
transaction being included in such PRO FORMA calculation), the Company (or
the Surviving Entity if the Company is not the continuing obligor under
this Indenture) could incur $1.00 of additional Indebtedness (other than
Permitted Indebtedness) under the provisions of Section 1010;
(5) each Subsidiary Guarantor, unless it is the other party to the
transactions described above, shall have, by supplemental indenture to this
Indenture, confirmed that its respective Note Guarantees with respect to
the Notes shall apply to such Person's obligations under this Indenture and
the Notes;
(6) if any property or assets of the Company or any of its Restricted
Subsidiaries would thereupon become subject to any Lien, the provisions of
Section 1014 are complied with; and
(7) the Company shall have delivered, or caused to be delivered, to
the Trustee an Officers' Certificate and an Opinion of Counsel, each to the
effect that such consolidation, merger, sale, assignment, conveyance,
transfer, lease or other transaction and, if a supplemental indenture is
required in connection with such transaction, such supplemental indenture,
comply with this Article and that all conditions precedent herein provided
for relating to such transaction have been complied with.
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SECTION 802. SUCCESSOR SUBSTITUTED.
Upon any consolidation, merger, sale, assignment, conveyance,
transfer, lease or other transaction described in, and complying with the
provisions of, Section 801 in which the Company is not the continuing
corporation, the successor Person formed or remaining shall succeed to, and be
substituted for, and may exercise every right and power of, the Company, as the
case may be, and the Company shall be discharged from all obligations and
covenants under this Indenture and the Notes, PROVIDED that, in the case of a
transfer by lease, the predecessor shall not be released from its obligations
with respect to the payment of principal (premium, if any) and interest on the
Notes.
SECTION 803. NOTES TO BE SECURED IN CERTAIN EVENTS.
If, upon any such consolidation of the Company with or merger of the
Company into any other corporation, or upon any conveyance, lease or transfer of
the property of the Company substantially as an entirety to any other Person,
any property or assets of the Company would thereupon become subject to any
Lien, then unless such Lien could be created pursuant to Section 1014 without
equally and ratably securing the Notes, the Company, prior to or simultaneously
with such consolidation, merger, conveyance, lease or transfer, will as to such
property or assets, secure the Notes Outstanding (together with, if the Company
shall so determine any other Indebtedness of the Company now existing or
hereinafter created which is not subordinate in right of payment to the Notes)
equally and ratably with (or prior to) the Indebtedness which upon such
consolidation, merger, conveyance, lease or transfer is to become secured as to
such property or assets by such Lien, or will cause such Notes to be so secured.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. SUPPLEMENTAL INDENTURES WITHOUT CONSENT OF HOLDERS.
Without the consent of any Holders, the Company, the Subsidiary
Guarantors, 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 evidence the succession of another Person to the Company and
the assumption by any such successor of the covenants of the Company
contained herein and in the Notes; or
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(2) to add to the covenants of the Company for the benefit of the
Holders or to surrender any right or power herein conferred upon the
Company; or
(3) to add any additional Events of Default; or
(4) to evidence and provide for the acceptance of appointment
hereunder by a successor Trustee pursuant to the requirements of
Section 609; or
(5) to cure any ambiguity, to correct or supplement any provision
herein which may be inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising
under this Indenture; PROVIDED that such action shall not adversely affect
the interests of the Holders in any material respect;
(6) to add new Subsidiary Guarantors pursuant to Section 1018;
(7) to secure the Notes pursuant to the requirements of Section 803
or otherwise; or
(8) to comply with any requirements of the Commission in order to
effect and maintain the qualification of this Indenture under the Trust
Indenture Act.
SECTION 902. SUPPLEMENTAL INDENTURES WITH CONSENT OF HOLDERS.
With the consent of the Holders of not less than a majority in
principal amount of the Outstanding Notes, by Act of said Holders delivered to
the Company, the Subsidiary Guarantors and the Trustee, the Company, when
authorized by a Board Resolution, the Subsidiary Guarantors 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; PROVIDED, HOWEVER, that no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Note
affected thereby:
(1) change the Stated Maturity of the principal of, or any
installment of interest on, any Note, or reduce the principal amount
thereof or the rate of interest thereon or any premium payable upon the
redemption or purchase thereof, or change the coin or currency in which any
Note or any premium or the interest thereon is payable, or impair the right
to institute suit for the enforcement of any such payment after the Stated
Maturity thereof (or, in the case of redemption, on or after the Redemption
Date), or
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(2) amend, change or modify the obligation of the Company to make and
consummate a Change of Control Purchase Offer in the event of a Change of
Control Triggering Event or modify any of the provisions or definitions
with respect thereto, or
(3) reduce the percentage in principal amount of the Outstanding
Notes, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver of
compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences provided for in this Indenture, or
(4) modify any of the provisions of this Section or Sections 513 and
1022, except to increase any such percentage or to provide that certain
other provisions of this Indenture cannot be modified or waived without the
consent of the Holder of each Outstanding Note affected thereby, or
(5) except as otherwise permitted under Article Eight, consent to the
assignment or transfer by the Company or any Subsidiary Guarantor of any of
its rights and obligations under this Indenture; or
(6) amend or modify any of the provisions of this Indenture in any
manner which subordinates the Notes issued thereunder in right of payment
to other Indebtedness of the Company or which subordinates any Note
Guarantee in right of payment to other Indebtedness of the Subsidiary
Guarantor issuing such Note Guarantee.
It shall not be necessary for any Act of Holders under this Section to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such Act shall approve the substance thereof.
SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES.
(a) In executing, or accepting the additional trusts created by, any
supplemental indenture permitted by this Article or the modifications thereby of
the trusts created by this Indenture, the Trustee shall be entitled to receive,
and shall be fully protected in relying upon, an Opinion of Counsel stating that
the execution of such supplemental indenture is authorized or permitted by this
Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise.
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(b) Each Subsidiary Guarantor hereby appoints the Company as its
attorney-in-fact to execute, on its behalf, any indenture supplemental hereto to
be entered into solely for the purpose specified in Section 901(6).
SECTION 904. EFFECT OF SUPPLEMENTAL INDENTURES.
Upon the execution of any supplemental indenture under this Article,
this Indenture shall be modified in accordance therewith, and such supplemental
indenture shall form a part of this Indenture for all purposes; and every Holder
of Notes theretofore or thereafter authenticated and delivered hereunder shall
be bound thereby.
SECTION 905. CONFORMITY WITH TRUST INDENTURE ACT.
Every supplemental indenture executed pursuant to the Article shall
conform to the requirements of the Trust Indenture Act as then in effect.
SECTION 906. REFERENCE IN NOTES TO SUPPLEMENTAL INDENTURES.
Notes authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article may, and shall if required by
the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company and the Subsidiary
Guarantors shall so determine, new Notes so modified as to conform, in the
opinion of the Trustee and the Company and the Subsidiary Guarantors, to any
such supplemental indenture may be prepared and executed by the Company and the
Subsidiary Guarantors and authenticated and delivered by the Trustee in exchange
for Outstanding Notes.
SECTION 907. NOTICE OF SUPPLEMENTAL INDENTURES.
Promptly after the execution by the Company and the Trustee of any
supplemental indenture pursuant to the provisions of Sections 901 and 902, the
Company shall give notice thereof to the Holders of each Outstanding Note
affected, in the manner provided for in Section 106, setting forth in general
terms the substance of such supplemental indenture; PROVIDED, HOWEVER, that the
Company shall not be required to give notice of any indenture supplemental
hereto entered into solely for the purpose specified in Section 901(5), (6) or
(8), notice with respect to which shall be given by the Company when it is next
required to give notice pursuant to this Section.
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ARTICLE TEN
COVENANTS
SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM, IF ANY, AND INTEREST.
The Company covenants and agrees for the benefit of the Holders
that it shall duly and punctually pay the principal of (and premium, if any,
on) and interest on the Notes in accordance with the terms of the Notes and
this Indenture.
SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY.
The Company shall maintain in The City of New York an office or
agency where Notes may be presented or surrendered for payment, where Notes
may be surrendered for registration of transfer or exchange and where notices
and demands to or upon the Company or any Subsidiary Guarantor in respect of
the Notes and this Indenture may be served. The Corporate Trust Office of
the Trustee shall be such office or agency of the Company, unless the Company
shall designate and maintain some other office or agency for one or more of
such purposes. The Company shall give prompt written notice to the Trustee
of any change in the location of any such office or agency. If at any time
the Company shall fail to maintain any such required office or agency or
shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company and each of the
Subsidiary Guarantors hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices and demands. Unless otherwise
specified with respect to the Notes as contemplated by Section 301, the
Company hereby designates as a Place of Payment for the Notes the office or
agency of the Trustee in the Borough of Manhattan, The City of New York, and
initially appoints Manufacturers and Traders Trust Company, 00 Xxxxxxxx - 0xx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000, as Paying 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 of The City of New York) where the Notes
may be presented or surrendered for any or all such purposes and may from
time to time rescind any such designation; PROVIDED, HOWEVER, that no such
designation or rescission shall in any manner relieve the Company of its
obligation to maintain an office or agency in The City of New York for such
purposes. The Company shall give prompt written notice to the Trustee of any
such designation or rescission and any change in the location of any such
other office or agency.
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SECTION 1003. MONEY FOR NOTE PAYMENTS TO BE HELD IN TRUST.
If the Company shall at any time act as its own Paying Agent, it
shall, on or before each due date of the principal of (and premium, if any,
on) or interest on any of the Notes, segregate and hold in trust for the
benefit of the Persons entitled thereto a sum sufficient to pay the principal
(and premium, if any) or interest so becoming due until such sums shall be
paid to such Persons or otherwise disposed of as herein provided and shall
promptly notify the Trustee of its action or failure so to act.
Whenever the Company shall have one or more Paying Agents for the
Notes, it shall, on or before each due date of the principal of (and premium,
if any, on), or interest on, any Notes, deposit with a Paying Agent a sum
sufficient to pay the principal (and premium, if any) or interest so becoming
due, such sum to be held in trust for the benefit of the Persons entitled to
such principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company shall promptly notify the Trustee of such action or any
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 shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will:
(1) hold all sums held by it for the payment of the principal of (and
premium, if any, on) or interest on Notes in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;
(2) give the Trustee notice of any default by the Company (or any
other obligor upon the Notes) in the making of any payment of principal
(and premium, if any) or interest; and
(3) 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.
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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, on) or interest on any Note and remaining unclaimed for two
years after such principal (and premium, if any) or interest has become due
and payable shall be paid to the Company on Company Request, or (if then held
by the Company) shall be discharged from such trust; and the Holder of such
Note shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, and all liability of the Trustee or such Paying
Agent with respect to such trust money, and all liability of the Company as
trustee thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee
or such Paying Agent, before being required to make any such repayment, may
at the expense of the Company cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day
and of general circulation in the Borough of Manhattan, The City of New York,
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be
repaid to the Company.
SECTION 1004. CORPORATE EXISTENCE.
Subject to Article Eight, the Company will do or cause to be done
all things necessary to preserve and keep in full force and effect the
corporate existence, rights (charter and statutory) and franchises of the
Company and each Restricted Subsidiary; PROVIDED, HOWEVER, that the Company
shall not be required to preserve any such right or franchise if the Board of
Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Restricted
Subsidiaries as a whole and that the loss thereof is not disadvantageous in
any material respect to the Holders. Notwithstanding anything to the contrary
in this Section 1004, the Company shall be permitted to consolidate or merge
any of its Restricted Subsidiaries with or into the Company or any Wholly
Owned Subsidiary of the Company.
SECTION 1005. PAYMENT OF TAXES AND OTHER CLAIMS.
The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (a) all taxes,
assessments and governmental charges levied or imposed upon the Company or
any Restricted Subsidiary or upon the income, profits or property of the
Company or any Subsidiary and (b) 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 Restricted Subsidiary; 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.
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SECTION 1006. MAINTENANCE OF PROPERTIES.
The Company shall cause all properties owned by the Company or any
Restricted Subsidiary or used or held for use in the conduct of its business
or the business of any Restricted Subsidiary 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 maintenance of any of such properties if such
discontinuance is, in the judgment of the Company, desirable in the conduct
of its business or the business of any Restricted Subsidiary and not
disadvantageous in any material respect to the Holders.
SECTION 1007. INSURANCE.
The Company shall at all times keep all of its and its Restricted
Subsidiaries' properties which are of an insurable nature insured with
insurers, believed by the Company to be responsible, against loss or damage
to the extent that property of similar character is usually so insured by
corporations similarly situated and owning like properties.
SECTION 1008. STATEMENT BY OFFICERS AS TO DEFAULT.
The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year, a brief certificate from the principal executive
officer, principal financial officer or principal accounting officer as to
his or her knowledge of the Company's compliance with all conditions and
covenants under this Indenture. For purposes of this Section 1008, such
compliance shall be determined without regard to any period of grace or
requirement of notice under this Indenture.
SECTION 1009. PURCHASE OF NOTES UPON A CHANGE OF CONTROL
TRIGGERING EVENT.
(a) Upon the occurrence of a Change of Control Triggering Event,
each Holder shall have the right, to the extent not inconsistent with the
Company's Bylaws in effect on the date hereof, to require that the Company
purchase such Holder's Notes in whole or in part in integral multiples of
$1,000 (the "Change of Control Purchase Offer"), at a purchase price (the
"Change of Control Purchase Price") in cash in an amount equal to 101% of the
principal amount thereof, together with accrued and unpaid interest, if any,
and Liquidated Damages, if any, to the date of purchase (the "Change of
Control Purchase Date"), in accordance with the procedures set forth in
paragraphs (c) and (d) of this Section.
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(b) Upon the occurrence of a Change of Control Triggering Event
and prior to the mailing of the notice to Holders provided for in paragraph
(c) below, the Company covenants to either (x) repay in full all Indebtedness
under the New Credit Agreement or offer to repay in full all such
Indebtedness and repay the Indebtedness of each of the Banks that has
accepted such offer or (y) obtain any requisite consent under the New Credit
Agreement to permit the purchase of the Notes as provided for in paragraph
(c) below or take any other action as may be required under the New Credit
Agreement to permit such purchase.
(c) Within 30 days following any Change of Control Triggering
Event, the Company shall notify the Trustee and give to each Holder of the
Notes in the manner provided in Section 106 a notice stating:
(1) that a Change of Control Triggering Event has occurred and that
such Holder has the right to require the Company to purchase in whole or in
part such Holder's Notes at the Change of Control Purchase Price;
(2) the circumstances and relevant facts regarding such Change of
Control Triggering Event (including but not limited to information with
respect to PRO FORMA historical income, cash flow and capitalization after
giving effect to the Change of Control);
(3) the Change of Control Purchase Date, which shall be a Business
Day no earlier than 30 days nor later than 60 days from the date such
notice is mailed or such later date as is necessary to comply with the
Exchange Act;
(4) that any Note, or portion thereof, not tendered will continue to
accrue interest;
(5) that, unless the Company defaults in the payment of the Change of
Control Purchase Price, any Notes accepted for payment of the Change of
Control Purchase Price pursuant to the Change of Control Purchase Offer
shall cease to accrue interest after the Change of Control Purchase Date;
and
(6) the instructions a Holder must follow in order to have its Notes
purchased in accordance with paragraph (d) of this Section.
(d) Holders electing to have Notes purchased will be required to
surrender such Notes to the Company at the address specified in the notice at
least five Business Days prior to the Change of Control Purchase Date.
Holders will be entitled to withdraw their election if the Company receives,
not later than five Business Days prior to the Change of Control Purchase
Date, a telegram, telex, facsimile transmission or letter setting forth the
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name of the Holder, the principal amount of the Notes delivered for purchase
by the Holder as to which his election is to be withdrawn and a statement
that such Holder is withdrawing his election to have such Notes purchased.
Holders whose Notes are purchased only in part will be issued new Notes equal
in principal amount to the unpurchased portion of the Notes surrendered.
(e) The Company shall comply with the applicable tender offer
rules, including Rule 14e-1 under the Exchange Act, and other applicable
securities laws and regulations in connection with a Change of Control
Purchase Offer.
SECTION 1010. LIMITATION ON INDEBTEDNESS.
The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, create, assume, or directly or indirectly guarantee or in
any other manner become directly or indirectly liable for the payment of, or
otherwise incur (collectively, "incur"), any Indebtedness (including any
Acquired Indebtedness) other than Permitted Indebtedness. Notwithstanding the
foregoing, the Company and the Subsidiary Guarantors may incur Indebtedness
if, at the time of such event (and after giving effect on a PRO FORMA basis
to (i) the incurrence of such Indebtedness and (if applicable) the
application of the proceeds therefrom, including to refinance other
Indebtedness; (ii) the incurrence, repayment or retirement of any other
Indebtedness by the Company or its Restricted Subsidiaries since the first
day of such four-quarter period as if such Indebtedness was incurred, repaid
or retired at the beginning of such four-quarter period; and (iii) the
acquisition (whether by purchase, merger or otherwise) or disposition
(whether by sale, merger or otherwise) of any Company, entity or business
acquired or disposed of by the Company or its Restricted Subsidiaries, as the
case may be, since the first day of such four-quarter period as if such
acquisition or disposition had occurred at the beginning of such four-quarter
period), the Consolidated Fixed Charge Coverage Ratio of the Company for the
four full fiscal quarters immediately preceding such event, taken as one
period and calculated on the assumption that such Indebtedness had been
incurred on the first day of such four-quarter period and, in the case of
Acquired Indebtedness, on the assumption that the related acquisition
(whether by means of purchase, merger or otherwise) also had occurred on such
date, with such PRO FORMA adjustments as may be determined in accordance with
GAAP and the rules, regulations and guidelines of the Commission (including
without limitation Article 11 of Regulation S-X), would have been at least
equal to 2.0 to 1 through July 31, 1999 and 2.25 to 1 thereafter.
SECTION 1011. LIMITATION ON RESTRICTED PAYMENTS.
(a) The Company shall not, and shall not permit any Restricted
Subsidiary of the Company to, directly or indirectly:
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(i) declare or pay any dividend on, or make any distribution to,
the holders of, any Capital Stock of the Company or of any Restricted
Subsidiary (other than dividends or distributions payable (x) solely in
shares of Qualified Capital Stock of the Company or such Restricted
Subsidiary or in options, warrants or other rights to purchase such
Qualified Capital Stock or (y) by a Restricted Subsidiary to the Company or
any Wholly Owned Restricted Subsidiary);
(ii) purchase, redeem or otherwise acquire or retire for value,
directly or indirectly, any Capital Stock of the Company or any Restricted
Subsidiary or any options, warrants or other rights to acquire such Capital
Stock held by any Person (other than the Company or any Wholly Owned
Restricted Subsidiary of the Company);
(iii) make any principal payment on, or redeem, repurchase,
defease or otherwise acquire or retire for value, prior to any scheduled
repayment, sinking fund payment or maturity, any Subordinated Indebtedness
or PARI PASSU Indebtedness of the Company or any Subsidiary Guarantor; or
(iv) make any Investment (other than any Permitted Investment) in any
Person
(such payments described in clauses (i) through (iv) and not excepted
therefrom are collectively referred to herein as "Restricted Payments")
unless at the time of and immediately after giving effect to the proposed
Restricted Payment (the amount of any such Restricted Payment, if other than
cash, as determined by the Board of Directors of the Company, whose
determination shall be conclusive and evidenced by a Board Resolution), (1)
no Default or Event of Default shall have occurred and be continuing, (2) the
Company could incur $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in accordance with Section 1010 and (3) such Restricted
Payment, together with the aggregate of all other Restricted Payments made by
the Company and its Restricted Subsidiaries on or after the date of this
Indenture, is less than the sum of (w) 50% of the aggregate cumulative
Consolidated Net Income of the Company for the period (taken as one
accounting period) from the first day of the quarter beginning after the date
of this Indenture to the end of the Company's most recently ended fiscal
quarter for which financial statements are available at the time of such
Restricted Payment (or, if such Consolidated Net Income for such period is a
deficit, less 100% of such deficit), plus (x) 100% of the aggregate net cash
proceeds received by the Company as capital contributions or from the issue
or sale since the date of this Indenture of Equity Interests of the Company
or of debt securities of the Company that have been converted into such
Equity Interests (other than Equity Interests (or convertible debt
securities) sold to a Restricted Subsidiary of the Company and other than
Redeemable Capital Stock or debt securities that have been converted into
Redeemable Capital Stock), plus (y) any cash received by the Company after
the date of initial issuance of the Notes as a
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dividend or distribution from any of its Unrestricted Subsidiaries less the
cost of disposition and taxes, if any (but in each case excluding any such
amounts included in Consolidated Net Income); plus (z) $50 million.
(b) Notwithstanding paragraph (a) above, the Company and its
Restricted Subsidiaries may take the following actions so long as (with
respect to clauses (ii), (iii), (iv) and (vi) below) at the time of and
immediately after giving effect thereto no Default or Event of Default shall
have occurred and be continuing:
(i) the payment of any dividend within 60 days after the date of
declaration thereof, if at such declaration date such declaration complied
with the provisions of paragraph (a) above;
(ii) the purchase, redemption or other acquisition or retirement for
value of any shares of Capital Stock of the Company, in exchange for, or
out of the net cash proceeds of, a substantially concurrent issuance and
sale (other than to a Restricted Subsidiary) of shares of Capital Stock of
the Company (other than Redeemable Capital Stock, unless the redemption
provisions of such Redeemable Capital Stock prohibit the redemption thereof
prior to the date on which the Capital Stock to be acquired or retired was,
by its terms, required to be redeemed);
(iii) the purchase, redemption, defeasance or other acquisition or
retirement for value of any PARI PASSU Indebtedness or Subordinated
Indebtedness (other than Redeemable Capital Stock) in exchange for or out
of the net cash proceeds of a substantially concurrent issuance and sale
(other than to a Restricted Subsidiary) of shares of Capital Stock of the
Company (other than Redeemable Capital Stock, unless the redemption
provisions of such Redeemable Capital Stock prohibit the redemption thereof
prior to the Stated Maturity of the Subordinated Indebtedness to be
acquired or retired);
(iv) the purchase, redemption, defeasance or other acquisition or
retirement for value of any PARI PASSU Indebtedness or Subordinated
Indebtedness (other than Redeemable Capital Stock) in exchange for, or out
of the net cash proceeds of a substantially concurrent incurrence or sale
(other than to a Restricted Subsidiary) of, new PARI PASSU Indebtedness or
Subordinated Indebtedness of the Company so long as (A) the principal
amount of such new PARI PASSU Indebtedness or Subordinated Indebtedness
does not exceed the principal amount (or, if such PARI PASSU Indebtedness
or Subordinated Indebtedness being refinanced provides for an amount less
than the principal amount thereof to be due and payable upon a declaration
of acceleration thereof, such lesser amount as of the date of
determination) of the PARI PASSU Indebtedness or Subordinated Indebtedness
being so purchased, redeemed, defeased, acquired or retired, PLUS the
amount of any premium required to be paid in
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connection with such refinancing pursuant to the terms of the PARI PASSU
Indebtedness or Subordinated Indebtedness refinanced or the amount of any
premium reasonably determined by the Company as necessary to accomplish
such refinancing, PLUS the amount of reasonable expenses of the Company
incurred in connection with such refinancing, (B) such new PARI PASSU
Indebtedness or Subordinated Indebtedness is PARI PASSU or subordinated
to the Notes to the same extent as such PARI PASSU Indebtedness or
Subordinated Indebtedness so purchased, redeemed, defeased, acquired or
retired and (C) such new PARI PASSU Indebtedness or Subordinated
Indebtedness has an Average Life longer than the Average Life of the Notes
and a final Stated Maturity of principal later than the final Stated
Maturity of principal of the Notes;
(v) the payment of a dividend on the Company's Capital Stock (other
than Redeemable Capital Stock) of up to $0.08 per quarter per share (or up
to $0.32 per annum per share, PROVIDED that dividend payments may not be
cumulated for more than four consecutive quarters); and
(vi) the purchase, redemption or other acquisition or retirement for
value of shares of Common Stock of the Company issued pursuant to
non-qualified options granted under stock option plans of the Company, in
order to pay withholding taxes due as a result of income recognized upon
the exercise of such options; PROVIDED that (1) the Company is permitted,
by the terms of such plans, to effect such purchase, redemption or other
acquisition or retirement for value of such shares and (2) the aggregate
consideration paid by the Company for such shares so purchased, redeemed or
otherwise acquired or retired for value does not exceed $2 million during
any fiscal year of the Company.
The actions described in clauses (ii), (iii), (v) and (vi) of this
paragraph (b) shall be Restricted Payments that shall be permitted to be
taken in accordance with this paragraph (b) but shall reduce the amount that
would otherwise be available for Restricted Payments under clause (3) of
paragraph (a).
SECTION 1012. LIMITATION ON LAYERING INDEBTEDNESS.
Neither the Company nor any of Restricted Subsidiaries shall incur,
create, issue, assume, guarantee or otherwise become liable for any
Indebtedness that is subordinate or junior in right of payment to any Senior
Indebtedness of the Company or such Restricted Subsidiary, as the case may
be, and senior in any respect in right of payment to the Notes or such
Restricted Subsidiary's Note Guarantee.
SECTION 1013. LIMITATION ON TRANSACTIONS WITH AFFILIATES. The
Company shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly,
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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 contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate (other than
the Company, a Wholly Owned Restricted Subsidiary or (in connection with a
Qualified TIPS Transaction) a Qualified Finance Subsidiary) (each of the
foregoing, an "Affiliate Transaction"), unless (i) such Affiliate Transaction
is on terms that are no less favorable to the Company or the relevant
Restricted Subsidiary than those that could have been obtained in a
comparable transaction with an unrelated Person and (ii) the Company delivers
to the Trustee (a) with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of
$5 million, an Officers' Certificate certifying that such Affiliate
Transaction complies with clause (i) above and that such Affiliate
Transaction has been approved by a majority of the Disinterested Directors
and (b) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in excess of $10
million, both an Officers' Certificate referred to in clause (a) and an
opinion as to the fairness of such Affiliate Transaction to the Company or
the relevant Restricted Subsidiary from a financial point of view issued by
an investment banking firm of national standing with total assets in excess
of $1.0 billion; PROVIDED, HOWEVER, that this covenant shall not apply to (i)
fees, compensation and employee benefits, including bonuses, retirement plans
and stock options, paid to or established for directors and officers of the
Company or any Restricted Subsidiary in the ordinary course of business and
approved by a majority of the Disinterested Directors and (ii) the
performance by the Company or any Restricted Subsidiary of its obligations
under certain leases of real property outstanding on the date of the
Indenture from PDM, Inc. covering 10 supermarket sites and a storage facility
in Omaha, Nebraska as set forth on Schedule B attached hereto.
SECTION 1014. LIMITATION ON LIENS SECURING PARI PASSU INDEBTEDNESS
OR SUBORDINATED INDEBTEDNESS.
(a) The Company shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, create, incur, assume or suffer to
exist any Lien (other than Permitted Liens) securing PARI PASSU Indebtedness
or Subordinated Indebtedness of the Company on or with respect to any of its
property or assets, including any shares of stock or indebtedness of any
Restricted Subsidiary, whether owned at the date of this Indenture or
thereafter acquired, or any income, profits or proceeds therefrom, or assign
or otherwise convey any right to receive income thereon, unless (i) in the
case of any Lien securing PARI PASSU Indebtedness of the Company, the Notes
are secured by a Lien on such property, assets or proceeds that is senior in
priority to or PARI PASSU with such Lien and (ii) in the case of any Lien
securing Subordinated Indebtedness of the Company, the Notes are secured by a
Lien on such property, assets or proceeds that is senior in priority to such
Lien.
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(b) The Company shall not permit any Restricted Subsidiary to,
directly or indirectly, create, incur, assume or suffer to exist any Lien
(other than Permitted Liens) securing Indebtedness of such Restricted
Subsidiary that is PARI PASSU or subordinate in right of payment to the Note
Guarantee of such Restricted Subsidiary, on or with respect to any such
Restricted Subsidiary's properties or assets, including any shares of stock
or Indebtedness of any Subsidiary of such Restricted Subsidiary, whether
owned at the date of this Indenture or thereafter acquired, or any income,
profits or proceeds therefrom, or assign or otherwise convey any right to
receive income thereon, unless (i) in the case of any Lien securing
Indebtedness of the Restricted Subsidiary that is PARI PASSU in right of
payment to the Note Guarantee of such Restricted Subsidiary, such Note
Guarantee is secured by a Lien on such property, assets or proceeds that is
senior in priority to or PARI PASSU with such Lien and (ii) in the case of
any Lien securing Indebtedness of the Restricted Subsidiary that is
subordinate in right of payment to the Note Guarantee of such Restricted
Subsidiary, such Note Guarantee is secured by a Lien on such property, assets
or proceeds that is senior in priority to such Lien.
SECTION 1015. LIMITATION ON DIVIDEND AND OTHER PAYMENT
RESTRICTIONS AFFECTING SUBSIDIARIES.
The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create or otherwise cause or suffer
to exist or become effective any encumbrance or restriction on the ability of
any Restricted Subsidiary to (i)(a) pay dividends or make any other
distributions to the Company or any of its Restricted Subsidiaries (1) on its
Capital Stock or (2) with respect to any other interest or participation in,
or measured by, its profits, or (b) pay any indebtedness owed to the Company
or any of its Restricted Subsidiaries, (ii) make loans or advances to the
Company or any of its Restricted Subsidiaries, (iii) transfer any of its
properties or assets to the Company or any of its Restricted Subsidiaries,
(iv) grant Liens in favor of Holders of Notes or (v) guarantee the Notes,
except in each case for such encumbrances or restrictions existing under or
by reason of (a) Indebtedness of the Company or any Restricted Subsidiary
outstanding on the date of the Indenture and listed on Schedule C attached
thereto, (b) the New Credit Agreement as in effect as of the date of the
Indenture, and any amendments, modifications, restatements, renewals,
increase, supplements, refunding, replacements or refinancings thereof,
PROVIDED that such amendments, modifications, restatements, renewals,
increase, supplements, refundings, replacements or refinancings are no more
restrictive with respect to such dividend and other payment restrictions than
those contained in the New Credit Agreement in effect on the date of the
Indenture, (c) the Indenture and the Notes, (d) applicable law, (e) any
instrument governing Indebtedness or Capital Stock of a Person acquired by
the Company or any of its Restricted Subsidiaries as in effect at the time of
such acquisition (except to the extent such Indebtedness was incurred in
connection with or in contemplation of such acquisition), which encumbrance
or restriction is not applicable to any Person, or the property or assets of
any Person, other than the Person, or the property or assets of the
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Person, so acquired, (f) by reason of customary non-assignment provisions in
existing and future leases entered into in the ordinary course of business
and consistent with past practices, (g) purchase money obligations for
property acquired in the ordinary course of business that impose restrictions
of the nature described in clause (iii) above on the property so acquired and
(h) restrictions incurred by the Company or any Restricted Subsidiary in
connection with any Permitted Receivables Financing.
SECTION 1016. LIMITATION ON SALE OF ASSETS.
(a) The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, engage in an Asset Sale unless the Company or
such Restricted Subsidiary, as the case may be, receives Permitted
Consideration at the time of such Asset Sale at least equal to the Fair
Market Value (as evidenced by a resolution of the Board of Directors set
forth in an Officers' Certificate delivered to the Trustee) of the assets or
Equity Interests issued or sold or otherwise disposed of.
(b) If the Company or any Restricted Subsidiary engages in an Asset
Sale, the Company or such Restricted Subsidiary must within 370 days after
the receipt of such Asset Sale, apply the Net Proceeds (i) to permanently
reduce Senior Indebtedness of the Company or one or more Restricted
Subsidiaries (and to correspondingly reduce commitments with respect thereto)
or (ii) to make capital expenditures or acquire long-term assets used or
useful in its businesses or in businesses similar or related to the
businesses of the Company immediately prior to the date of this Indenture.
Pending the final application of any such Net Proceeds, the Company may
temporarily reduce Senior Indebtedness or otherwise invest such Net Proceeds
in any manner that is not prohibited by this Indenture. Any Net Proceeds from
Asset Sales that are not applied or invested as provided in the first
sentence of this paragraph will be deemed to constitute "Excess Proceeds."
(c) When the aggregate amount of Excess Proceeds exceeds $15
million, the Company will be required to make an offer to all Holders of
Notes (an "Asset Sale Offer"), on a PRO RATA basis between the Notes and the
Notes due 2007, to purchase the maximum principal amount of Notes that may be
purchased out of the Excess Proceeds, at an offer price in cash in an amount
equal to 100% of the principal amount thereof, plus accrued and unpaid
interest and Liquidated Damages, if any, thereon to the date of purchase (the
"Offered Price"). Within 30 Business Days after the date on which the
aggregate amount of Excess Proceeds exceeds $15,000,000, the Company shall
give to each Holder of the Notes, with a copy to the Trustee, in the manner
provided in Section 106 a notice stating:
(i) that the Holder has the right to require the Company to
repurchase such Holder's Notes at the Offered Price, subject to proration
in the event the Excess Proceeds are less than the aggregate Offered Price
of all Notes and Notes due 2007 tendered;
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(ii) the date of purchase of Notes pursuant to the Asset Sale Offer
(the "Asset Sale Purchase Date"), which shall be no earlier than 30 days
nor later than 60 days from the date such notice is mailed;
(iii) that the Offered Price shall be paid to Holders electing to
have Notes purchased on the Asset Sale Purchase Date, PROVIDED that a
Holder must surrender its Note to the Paying Agent at the address
specified in the notice prior to the close of business at least five
Business Days prior to the Asset Sale Purchase Date;
(iv) any Note not tendered shall continue to accrue interest
pursuant to its terms;
(v) that unless the Company defaults in the payment of the Offered
Price, any Note accepted for payment pursuant to the Asset Sale Offer shall
cease to accrue interest on and after the Asset Sale Purchase Date;
(vi) that Holders shall be entitled to withdraw their tendered Notes
and their election to require the Company to purchase such Notes, PROVIDED
that the Company receives, not later than the close of business on the
third Business Day preceding the Asset Sale Purchase Date, a telegram,
telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount and serial numbers of the Notes tendered for
purchase, and a statement that such Holder is withdrawing its election to
have such Notes purchased;
(vii) that the Holders whose Notes are being purchased only in
part shall be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered; which unpurchased portion must be equal
to $1,000 in principal amount or an integral multiple thereof; and
(viii) the instructions a Holder must follow in order to have his
Notes purchased in accordance with this Section 1016.
To the extent that the aggregate amount of Notes tendered pursuant
to an Asset Sale Offer is less than the Excess Proceeds, the Company may use
any remaining Excess Proceeds for general corporate purposes (subject to the
restrictions of the Indenture). If the aggregate principal amount of Notes
and Notes due 2007 surrendered by Holders thereof exceeds the amount of
Excess Proceeds, the Trustee shall select the Notes and Notes due 2007 to be
purchased on a PRO RATA basis. Upon completion of such offer to purchase, the
amount of Excess Proceeds shall be reset at zero.
Notwithstanding the foregoing provisions of this Section 1016, the
Company and its Restricted Subsidiaries may sell or dispose of property,
whether in the form of assets
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or capital stock of a Restricted Subsidiary, in the aggregate amount not
exceeding $15 million in any year. Any notes received by the Company or its
Restricted Subsidiaries as consideration in any disposition made pursuant to
such $15 million exclusion from this Section 1016 shall not be taken into
account in determining whether the $75 million limitation set forth in the
definition of "Permitted Consideration" has been met.
SECTION 1017. LIMITATION ON ISSUANCES AND SALES OF CAPITAL STOCK
OF SUBSIDIARIES.
The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, transfer, convey, sell or otherwise dispose of any Capital
Stock of any Restricted Subsidiary of the Company to any Person (other than
the Company or a Wholly Owned Restricted Subsidiary of the Company), unless
(a) such transfer, conveyance, sale or other disposition is of all of the
Capital Stock of such Restricted Subsidiary owned by the Company and its
Restricted Subsidiaries and (b) such transaction is made in accordance with
Section 1016, PROVIDED that 85% of the proceeds from such a sale of Capital
Stock of any Restricted Subsidiary that is a Significant Subsidiary shall
consist of cash or Temporary Cash Investments. Notwithstanding the foregoing
or the provisions of any other covenant, the Company or any Restricted
Subsidiary may sell Qualified Capital Stock of any Restricted Subsidiary in a
Public Equity Offering, PROVIDED that (i) 100% of the Net Proceeds from such
Public Equity Offering shall be in cash and shall be applied as provided in
the provisions of Section 1016 and (ii) the Tangible Assets of such
Restricted Subsidiary do not exceed 10% of the Consolidated Tangible Assets
of the Company, determined as of the last day of the quarter ending
immediately before the commencement of such Public Equity Offering.
SECTION 1018. ADDITIONAL GUARANTEES.
If (x) the Company or any of its Restricted Subsidiaries shall
acquire or form a Restricted Subsidiary or (y) any existing majority-owned
Restricted Subsidiary shall, after the date of the Indenture, guarantee any
PARI PASSU Indebtedness or Subordinated Indebtedness of the Company or any
Subsidiary Guarantor, the Company will cause any such Restricted Subsidiary
(other than an Investee Store or Joint Venture, PROVIDED that such Investee
Store or Joint Venture does not guarantee the PARI PASSU Indebtedness of any
other Person) that is or becomes a Wholly Owned Restricted Subsidiary or that
guarantees any PARI PASSU Indebtedness or Subordinated Indebtedness of the
Company or any Subsidiary Guarantor to (i) execute and deliver to the Trustee
a supplemental indenture in form and substance reasonably satisfactory to the
Trustee pursuant to which such Restricted Subsidiary shall guarantee all of
the obligations of the Company with respect to the Notes on a senior
subordinated basis and (ii) deliver to the Trustee an Opinion of Counsel
reasonably satisfactory to the Trustee to the effect that a supplemental
indenture has been duly executed
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and delivered by such Restricted Subsidiary and is in compliance with the
terms of this Indenture.
SECTION 1019. PROVISION OF FINANCIAL STATEMENTS; RULE 144A
INFORMATION
Whether or not required by the rules and regulations of the
Commission, including the reporting requirements of Section 13 or 15(d) of
the Exchange Act, so long as any Notes are outstanding, the Company shall
furnish to the Holders of Notes (i) all quarterly and annual financial
information that would be required to be contained in a filing with the
Commission on Forms 10-Q and 10-K if the Company were required to file such
Forms, including a "Management's Discussion and Analysis of Financial
Condition and Results of Operations" that describes the financial condition
and results of operations of the Company and its Subsidiaries and, with
respect to the annual information only, a report on the consolidated
financial statements required by Form 10-K by the Company's independent
certified public accountants and (ii) all reports that would be required to
be filed with the Commission on Form 8-K if the Company were required to file
such reports. In addition, whether or not required by the rules and
regulations of the Commission, the Company shall file a copy of all such
information with the Commission for public availability (unless the
Commission shall not accept such a filing) and make such information
available to investors or prospective investors who request it in writing.
The Company shall furnish to the Holders or beneficial Holders of
Notes and prospective purchasers of Notes designated by the Holders of Notes,
upon their request, the information required to be delivered pursuant to Rule
144A (d) (4) under the Securities Act until such time as the Company either
exchanges all of the Initial Notes for the Exchange Notes or has registered
all of the Initial Notes for resale under the Securities Act.
SECTION 1020. PAYMENT FOR CONSENT.
The Company and each of its Restricted Subsidiaries are prohibited
from, directly or indirectly, paying or causing to be paid any consideration,
whether by way of interest, fee or otherwise, to any Holder for or as an
inducement to any consent, waiver or amendment of any terms or provisions of
the Notes unless such consideration is offered to be paid or agreed to be
paid to all Holders of the Notes which so consent, waive or agree to amend in
the time frame set forth in solicitation documents relating to such consent,
waiver or agreement.
SECTION 1021. TERMINATION OF CERTAIN COVENANTS IN EVENT OF
INVESTMENT GRADE RATING.
In the event that each of the Rating Categories assigned to the
Notes of the Company by the Rating Agencies is Investment Grade, the
provisions of Sections 1010,
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1011, 1013, 1016, 1017 and 801(3) shall cease to apply to the Company and its
Restricted Subsidiaries from and after the date on which the second of the
Rating Agencies notifies the Company of the assignment of such Rating
Category. Notwithstanding the foregoing, if the Rating Category assigned by
either Rating Agency to the Notes should subsequently decline below
Investment Grade, the foregoing covenants shall be reinstituted as and from
the date of such rating decline.
SECTION 1022. WAIVER OF CERTAIN COVENANTS.
The Company may omit in any particular instance to comply with any
term, provision or condition set forth in Section 803 or Sections 1007 and
1008, 1010 through 1015, inclusive and 1017 through 1020, inclusive, if
before or after the time for such compliance the Holders of at least a
majority in principal amount of the Outstanding Notes, by Act of such
Holders, waive such compliance in such instance with such term, provision or
condition, but no such waiver shall extend to or affect such term, provision
or condition except to the extent so expressly waived, and, until such waiver
shall become effective, the obligations of the Company and the duties of the
Trustee in respect of any such term, provision or condition shall remain in
full force and effect.
ARTICLE ELEVEN
REDEMPTION OF NOTES
SECTION 1101. RIGHT OF REDEMPTION.
The Notes may be redeemed, at the option of the Company, as a whole
or from time to time in part, at any time on or after June 1, 2001, subject
to the conditions and at the Redemption Prices specified in the form of Note,
together with accrued interest to the Redemption Date.
Up to 35% of the initial aggregate principal amount of the Notes
may be redeemed on or prior to June 1, 2000, at the option of the Company,
within 180 days of a Public Equity Offering with the net proceeds of such
offering at a redemption price equal to 110 1/2% of the principal amount
thereof, together with accrued and unpaid interest, if any, to the date of
redemption (subject to the right of holders of record on relevant record
dates to receive interest due on relevant Interest Payment Dates); PROVIDED
that after giving effect to such redemption at least $162.5 million aggregate
principal amount of the Notes remains outstanding.
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SECTION 1102. APPLICABILITY OF ARTICLE.
Redemption of Notes at the election of the Company or otherwise, as
permitted or required by any provision of this Indenture, shall be made in
accordance with such provision and this Article.
SECTION 1103. ELECTION TO REDEEM; NOTICE TO TRUSTEE.
The election of the Company to redeem any Notes pursuant to Section
1101 shall be evidenced by a Board Resolution. In case of any redemption at
the election of the Company, 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 principal amount of Notes to be redeemed and shall deliver to the
Trustee such documentation and records as shall enable the Trustee to select
the Notes to be redeemed pursuant to Section 1104.
SECTION 1104. SELECTION BY TRUSTEE OF NOTES TO BE REDEEMED.
If less than all the Notes are to be redeemed at any time, the
particular Notes to be redeemed shall be selected on a PRO RATA basis, by lot
or by such other method as the Trustee shall deem fair and appropriate and
which may provide for the selection for redemption of portions of the
principal of Notes; PROVIDED, HOWEVER, that no such partial redemption shall
reduce the portion of the principal amount of a Note not redeemed to less
than $1,000.
The Trustee shall promptly notify the Company in writing of the
Notes selected for redemption and, in the case of any Notes selected for
partial redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Notes shall relate, in the
case of any Note redeemed or to be redeemed only in part, to the portion of
the principal amount of such Note which has been or is to be redeemed.
SECTION 1105. NOTICE OF REDEMPTION.
Notice of redemption shall be given in the manner provided for in
Section 106 not less than 30 nor more than 60 days prior to the Redemption
Date, to each Holder of Notes to be redeemed.
All notices of redemption shall state:
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(1) the Redemption Date,
(2) the Redemption Price,
(3) if less than all Outstanding Notes are to be redeemed, the
identification by CUSIP Numbers, if any (and, in the case of a partial
redemption, the principal amounts), of the particular Notes to be redeemed,
(4) if any Note is to be redeemed in part only, the portion of the
principal amount thereof to be redeemed,
(5) that on the Redemption Date the Redemption Price (together with
accrued interest, if any, to the Redemption Date payable as provided in
Section 1107) will become due and payable upon each such Note, or the
portion thereof, to be redeemed, and that interest thereon will cease to
accrue on and after said date, and
(6) the place or places where such Notes are to be surrendered for
payment of the Redemption Price.
Notice of redemption of Notes 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 1106. DEPOSIT OF REDEMPTION PRICE.
On or prior to any Redemption Date, the Company shall deposit with
the Trustee or with a Paying Agent (or, if the Company is acting as its own
Paying Agent, segregate and hold in trust as provided in Section 1003) an
amount of money sufficient to pay the Redemption Price of, and accrued
interest on, any Notes, or any portions thereof, to be redeemed on that date.
SECTION 1107. NOTES PAYABLE ON REDEMPTION DATE.
Notice of redemption having been given as aforesaid, the Notes so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified (together with accrued interest and
Liquidated Damages, if any, to the Redemption Date), and from and after such
date (unless the Company shall default in the payment of the Redemption Price
and accrued interest and Liquidated Damages, if any,) such Notes, or portions
thereof, shall cease to bear interest. Upon surrender of any such Note for
redemption in accordance with said notice, such Note shall be paid by the
Company at the Redemption Price, together with accrued interest and
Liquidated Damages, if any, to the Redemption Date; PROVIDED, HOWEVER, that
installments of interest whose Stated Maturity is
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on or prior to the Redemption Date shall be payable to the Holders of such
Notes, or one or more Predecessor Notes, registered as such at the close of
business on the relevant Record Dates according to their terms and the
provisions of Section 307.
If any Note called for redemption shall not be so paid upon
surrender thereof for redemption, the principal (and premium and Liquidated
Damages, if any) shall, until paid, bear interest from the Redemption Date at
the rate borne by the Notes.
SECTION 1108. NOTES REDEEMED IN PART.
Any Note which is to be redeemed only in part (pursuant to the
provisions of this Article shall be surrendered at the office or agency of
the Company maintained for such purpose pursuant to Section 1002 (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 such Holder's attorney duly
authorized in writing), and the Company shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Note without service charge, a
new Note or Notes, of any authorized denomination as requested by such
Holder, in an aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Note so surrendered.
ARTICLE TWELVE
NOTE GUARANTEES
SECTION 1201. NOTE GUARANTEES.
Subject to the provisions of this Article Twelve, each Subsidiary
Guarantor hereby irrevocably and unconditionally guarantees, jointly and
severally, on a senior basis to each Holder and to the Trustee, on behalf of
the Holders, (i) the due and punctual payment of the principal of, premium,
if any, and interest and Liquidated Damages, if any, on each Note, when and
as the same shall become due and payable, whether at Stated Maturity or
purchase upon a Change of Control Triggering Event or Asset Sale Offer, and
whether by declaration of acceleration, a Change of Control Triggering Event,
Asset Sale Offer, call for redemption or otherwise, the due and punctual
payment of interest on the overdue principal of, premium, if any, and
interest and Liquidated Damages, if any, on the Notes, to the extent lawful,
and the due and punctual performance of all other obligations of the Company
to the Holders or the Trustee all in accordance with the terms of such Note
and this Indenture and (ii) in the case of any extension of time of payment
or renewal of any Notes or any of such other obligations, that the same will
be promptly paid in full when due or performed in accordance with the terms
of the extension or renewal, at Stated Maturity or purchase upon a Change of
Control Triggering Event or Asset Sale Offer, and whether by declaration of
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acceleration, a Change of Control Triggering Event, Asset Sale Offer, call
for redemption or otherwise (the obligations in clauses (i) and (ii) hereof
being the "Guaranteed Obligations").
Without limiting the generality of the foregoing, each Subsidiary
Guarantor's liability shall extend to all amounts that constitute part of the
Guaranteed Obligations and would be owed by the Company to the Holders or the
Trustee under the Notes and the Indenture but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy,
reorganization or similar proceeding involving the Company. The Subsidiary
Guarantors hereby agree that their obligations hereunder shall be absolute
and unconditional, irrespective of, and shall be unaffected by, any
invalidity, irregularity or unenforceability of any such Note or this
Indenture, any failure to enforce the provisions of any such Note or this
Indenture, any waiver, modification or indulgence granted to the Company with
respect thereto, by any Holder or any other circumstances which may otherwise
constitute a legal or equitable discharge or defense of the Company or a
surety or guarantor.
The Subsidiary Guarantors hereby waive diligence, presentment,
filing of claims with a court in the event of merger or bankruptcy of the
Company, any right to require a proceeding first against the Company, the
benefit of discussion, protest or notice with respect to any such Note or the
Indebtedness evidenced thereby and all demands whatsoever (except as
specified above), and covenant that the Guaranteed Obligations will not be
discharged as to any such Note except by payment in full of such Guaranteed
Obligations and as provided in Sections 401, 1102, 1205 and 1206.
Each Subsidiary Guarantor further agrees that, as between such
Subsidiary Guarantor and the Holders, (i) the maturity of the Guaranteed
Obligations may be accelerated as provided in Article Five, notwithstanding
any stay, injunction or other prohibition preventing such acceleration in
respect of the Company or any other Subsidiary Guarantor in respect of the
Guaranteed Obligations, and (ii) in the event of any declaration of
acceleration of such Guaranteed Obligations as provided in Article Five, such
Guaranteed Obligations (whether or not due and payable) shall forthwith
become due and payable by each Subsidiary Guarantor. In addition, without
limiting the foregoing provisions, upon the effectiveness of an acceleration
under Article Five, the Trustee shall promptly make a demand for payment on
any Notes in respect of which the Guaranteed Obligations provided for in this
Article Twelve are not discharged.
Each Subsidiary Guarantor hereby irrevocably waives any claim or
other rights that it may now or hereafter acquire against the Company that
arise from the existence, payment, performance or enforcement of such
Subsidiary Guarantor's obligations under this Indenture, or any other
document or instrument including, without limitation, any right of
reimbursement, exoneration, contribution, indemnification, any right to
participate in any claim or remedy of the Holders against the Company,
whether or not such claim, remedy or right arises in equity, or under
contract, statute or common law, including, without
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limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or in any other manner, payment or
security on account of such claim or other rights. Each Subsidiary Guarantor
shall be subrogated to all rights of the Holders of the Notes pursuant to any
Note Guarantee against the Company in respect of any amounts paid by such
Subsidiary Guarantor on account of such Note pursuant to the provisions of
this Indenture; PROVIDED, HOWEVER, that no Subsidiary Guarantor shall be
entitled to enforce or to receive any payment arising out of, or based upon
such right of subrogation until the principal of (and premium, if any) and
interest on all Notes issued hereunder shall have been paid in full to the
Holders entitled thereto. If any amount shall be paid to any Subsidiary
Guarantor in violation of this paragraph and the Guaranteed Obligations shall
not have been paid in full, such amount shall be deemed to have been paid to
such Subsidiary Guarantor for the benefit of, and held in trust for the
benefit of, the Holders, and shall forthwith be paid to the Trustee. Each
Subsidiary Guarantor acknowledges that it shall receive direct and indirect
benefits from the issuance of the Notes and that the waiver set forth in this
Section 1201 is knowingly made in contemplation of such benefits.
SECTION 1202. EXECUTION AND DELIVERY OF NOTE GUARANTEE.
To further evidence the Note Guarantee set forth in Section 1201,
each Subsidiary Guarantor hereby agrees that a notation of such Note
Guarantee, substantially in the form included in Exhibit B of this Indenture,
shall be endorsed on each Note authenticated and delivered by the Trustee.
Such Note Guarantee shall be executed on behalf of each Subsidiary Guarantor
by its Chairman, any Vice Chairman, its President or a Vice President and
attested by its Secretary or Assistant Secretary, and shall have been duly
authorized by all requisite corporate action. The validity and
enforceability of any Note Guarantee shall not be affected by the fact that
it is not affixed to any particular Note.
Each Subsidiary Guarantor hereby agrees that its respective Note
Guarantee set forth in Section 1201 shall remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Note
Guarantee.
The delivery of any Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of any Note Guarantee set
forth in this Indenture on behalf of the Subsidiary Guarantors.
SECTION 1203. OBLIGATIONS OF THE SUBSIDIARY GUARANTORS
UNCONDITIONAL.
Nothing contained in this Article Twelve, elsewhere in this
Indenture or in any Note is intended to or shall impair, as between the
Subsidiary Guarantors and the Holders, the obligation of the Subsidiary
Guarantors, which obligations are independent of the obligations of the
Company under the Notes and this Indenture and are absolute and
unconditional, to pay to the Holders the Guaranteed Obligations as and when
the same shall
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become due and payable in accordance with the provisions of this Indenture,
or is intended to or shall affect the relative rights of the Holders and
creditors of the Subsidiary Guarantors, nor shall anything herein or therein
prevent the Trustee or any Holder from exercising all remedies otherwise
permitted by applicable law upon Default under this Indenture. Each payment
to be made by any Subsidiary Guarantor hereunder in respect of the Guaranteed
Obligations shall be payable in the currency or currencies in which such
Guaranteed Obligations are denominated.
SECTION 1204. RANKING OF NOTE GUARANTEES.
Each Subsidiary Guarantor covenants and agrees, and each Holder by
its acceptance thereof, likewise covenants and agrees, that each Note
Guarantee will be an unsecured senior subordinated obligation of the
Subsidiary Guarantor issuing such Note Guarantee, subordinated in right of
payment to all existing and future Senior Indebtedness of the Subsidiary
Guarantors, and ranking senior to or PARI PASSU in right of payment with all
other existing and future Indebtedness of such Subsidiary Guarantor that is
expressly subordinated to any Senior Subordinated Indebtedness of such
Subsidiary Guarantor.
SECTION 1205. LIMITATION OF NOTE GUARANTEES.
The Company and each Subsidiary Guarantor, and each Holder of a
Note by his acceptance thereof, hereby confirm that it is the intention of
all such parties that each Subsidiary Guarantor shall be liable under this
Indenture only for amounts aggregating up to the largest amount that would
not render its obligations hereunder subject to avoidance under Section 548
of the United States Bankruptcy Code or any comparable provisions of any
applicable state law. To effectuate the foregoing intention, the Holders
hereby irrevocably agree that in the event that any such Note Guarantee would
constitute or result in a violation of any applicable fraudulent conveyance
or similar law of any relevant jurisdiction, the liability of the Subsidiary
Guarantor under such Note Guarantee shall be reduced to the maximum amount,
after giving effect to all other contingent and fixed liabilities of such
Subsidiary Guarantor, permissible under the applicable fraudulent conveyance
or similar law.
SECTION 1206. RELEASE OF SUBSIDIARY GUARANTORS.
(a) Any Subsidiary Guarantor shall be released from and relieved
of its obligations under this Article Twelve (1) upon defeasance in
accordance with Section 1302, (2) upon the payment in full of the Guaranteed
Obligations, or (3) upon the sale by the Company or any Subsidiary of such
Subsidiary Guarantor to any Person other than a Subsidiary of the Company,
PROVIDED that such sale does not result in a sale, assignment, transfer,
lease or disposal of all or substantially all of the properties and assets of
the Company and its Subsidiaries on a Consolidated basis. Upon the delivery
by the Company to the Trustee of an Officers' Certificate and, if requested
by the Trustee, an Opinion of
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Counsel to the effect that the transaction giving rise to the release of such
obligations was made by the Company in accordance with the provisions of this
Indenture and the Notes, the Trustee shall execute any documents reasonably
required in order to evidence the release of the Subsidiary Guarantors from
their obligations. If any of the Guaranteed Obligations are revived and
reinstated after the termination of such Note Guarantee, then all of the
obligations of the Subsidiary Guarantors under such Note Guarantee shall be
revived and reinstated as if such Note Guarantee had not been terminated
until such time as the Guaranteed Obligations are paid in full, and the
Subsidiary Guarantors shall execute any documents reasonably satisfactory to
the Trustee evidencing such revival and reinstatement.
(b) Upon the sale or disposition (whether by merger, stock
purchase, asset sale or otherwise) of a Subsidiary Guarantor or all or
substantially all of its assets to an entity which is not a Subsidiary
Guarantor (and a Restricted Subsidiary) or the designation of a Restricted
Subsidiary to become an Unrestricted Subsidiary, which transaction is
otherwise in compliance with this Indenture (including, without limitation,
the provisions of Sections 1016 and 1017), such Subsidiary Guarantor will be
deemed released from its obligations under its Note Guarantee; PROVIDED,
HOWEVER, that any such termination shall occur only to the extent that all
obligations of such Subsidiary Guarantor under all of its guarantees of, and
under all of its pledges of assets or other security interests which secure,
any Indebtedness of the Company or any other Restricted Subsidiary shall also
terminate upon such release, sale or transfer. In addition, upon the delivery
by the Company to the Trustee of an Officers' Certificate and, if requested
by the Trustee, an Opinion of Counsel to the effect that the transaction
giving rise to the release of such obligations was made in accordance with
the provisions of this Indenture and the Notes, the Trustee shall execute any
documents reasonably required in order to evidence the release of such
Subsidiary Guarantor from its obligations. Any Subsidiary Guarantor not so
released remains liable for the full amount of principal of (and premium, if
any) and interest on the Notes as provided in this Article Twelve.
(c) Any Subsidiary Guarantor shall automatically be released from
and relieved of its obligations under its Note Guarantee upon the sale or
transfer of the Capital Stock of such Subsidiary Guarantor pursuant to or in
lieu of foreclosure of any lien on the Capital Stock of such Subsidiary
Guarantor existing in favor of any holder of Senior Indebtedness and, upon
the request of any holder of Senior Indebtedness (or of any purchaser or
transferee pursuant to or in lieu of such foreclosure), the Trustee shall
execute any documents reasonably required to evidence the release of such
Subsidiary Guarantor.
SECTION 1207. SUBSIDIARY GUARANTORS MAY CONSOLIDATE, ETC. ON
CERTAIN TERMS.
Except as set forth in Section 1206 and in Articles Eight and Ten
hereof, nothing contained in this Indenture or in any of the Notes shall
prevent any consolidation or
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merger of a Subsidiary Guarantor with or into the Company or a Subsidiary
Guarantor or shall prevent any sale or conveyance of the property of a
Subsidiary Guarantor as an entirety or substantially as an entirety to the
Company or a Subsidiary Guarantor.
ARTICLE THIRTEEN
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 1301. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT
DEFEASANCE.
The Company may, at its option and at any time, with respect to the
Notes, elect to have either Section 1302 or Section 1303 be applied to all
Outstanding Notes upon compliance with the conditions set forth below in this
Article Thirteen.
SECTION 1302. DEFEASANCE AND DISCHARGE.
Upon the Company's exercise under Section 1301 of the option
applicable to this Section 1302, the Company shall be deemed to have paid and
discharged all obligations with respect to all Outstanding Notes on the date
the conditions set forth in Section 1304 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 Notes, which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 1305 and the other Sections of this
Indenture referred to in (A) and (B) below, and to have satisfied all its
other obligations under such Notes and this Indenture insofar as such Notes
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 Outstanding Notes to receive payments in respect of the
principal of, premium, if any, and interest on such Notes when such payments
are due or on the Redemption Date with respect to such Notes, as the case may
be, (B) the Company's obligations with respect to such Notes under Sections
304, 305, 306, 1002 and 1003, (C) the rights, powers, trusts, duties and
immunities of the Trustee hereunder and (D) this Article Thirteen. Subject
to compliance with this Article Thirteen, the Company may exercise its option
under this Section 1302 notwithstanding the prior exercise of its option
under Section 1303 with respect to the Notes.
SECTION 1303. COVENANT DEFEASANCE.
Upon the Company's exercise under Section 1301 of the option
applicable to this Section 1303, the Company shall be released from its
obligations under any covenant contained in Section 801(3) and Section 803
and in Sections 1004 through 1020 with respect
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to the Outstanding Notes on and after the date the conditions set forth below
are satisfied (hereinafter, "covenant defeasance"), and the Notes shall
thereafter be deemed not to be "Outstanding" for the purposes of any
direction, waiver, consent or declaration or Act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "Outstanding" for all other purposes hereunder. For
this purpose, such covenant defeasance means that, with respect to the
Outstanding Notes, the Company may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any
such covenant, whether directly or indirectly, by reason of any reference
elsewhere herein to any such covenant or by reason of any reference in any
such covenant to any other provision herein or in any other document and such
omission to comply shall not constitute a Default or an Event of Default
under Sections 501(3), 4, 5 and 7 but, except as specified above, the
remainder of this Indenture and such Notes shall be unaffected thereby.
SECTION 1304. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.
The following shall be the conditions to application of either
Section 1302 or Section 1303 to the Outstanding Notes:
(1) the Company must irrevocably have deposited with the Trustee (or
another trustee satisfying the requirements of Section 607 who shall agree
to comply with the provisions of this Article Thirteen applicable to it),
in trust, for the benefit of the Holders, cash in United States dollars,
U.S. Government Obligations or a combination thereof, in such amounts as
will be 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 the principal of, and
premium, if any, and interest on the Outstanding Notes on the Stated
Maturity or on an optional redemption date (such date being referred to as
the "Defeasance Redemption Date"), as the case may be, if in the case of a
Defeasance Redemption Date prior to electing to exercise either defeasance
or covenant defeasance, the Company has delivered to the Trustee an
irrevocable notice to redeem all of the Outstanding Notes on such
Defeasance Redemption Date;
(2) in the case of an election under Section 1302, the Company shall
have delivered to the Trustee an opinion of independent counsel in the
United States 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 of counsel in the United States shall confirm that, the Holders of
the Outstanding Notes will not recognize income, gain or loss for federal
income tax purposes as a result of such defeasance and will be subject to
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federal income tax on the same amounts, in the same manner and at the same
times as would have been the case if such defeasance had not occurred;
(3) in the case of an election under Section 1303, the Company shall
have delivered to the Trustee an opinion of independent counsel in the
United States to the effect that the Holders of the Outstanding Notes will
not recognize income, gain or loss for federal income tax purposes as a
result of such covenant defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would
have been the case if such covenant defeasance had not occurred;
(4) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit or, insofar as paragraphs (8) and
(9) of Section 501 hereof are 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);
(5) such defeasance or covenant defeasance shall not result in a
breach or violation of, or constitute a Default under, this Indenture or
any other material agreement or instrument to which the Company or any
Subsidiary Guarantor is a party or by which it is bound;
(6) the Company shall have delivered to the Trustee an Officers'
Certificate stating that the deposit was not made by the Company with the
intent of preferring the Holders of the Notes or any Subsidiary Guarantor
over the other creditors of the Company or any Subsidiary Guarantor or with
the intent of defeating, hindering, delaying or defrauding creditors of the
Company, any Subsidiary Guarantor or others; and
(7) the Company shall have delivered to the Trustee an Officers'
Certificate stating that all conditions precedent provided for relating to
either the defeasance under Section 1302 or the covenant defeasance under
Section 1303 (as the case may be) have been complied with.
SECTION 1305. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO
BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.
Subject to the provisions of the last paragraph of Section 1003,
all money and U.S. Government Obligations (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee -- collectively for
purposes of this Section 1305, the "Trustee") pursuant to Section 1304 in
respect of the Outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture,
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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 Notes of all sums due and to become due thereon in respect of
principal (and premium, if any) and interest, but such money need not be
segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any tax,
fee or other charge imposed on or assessed against the U.S. Governmental
Obligations deposited pursuant to Section 1304 or the principal and interest
received in respect thereof other than any such tax, fee or other charge
which by law is for the account of the Holders of the Outstanding Notes.
Anything in this Article Thirteen 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 1304 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, as applicable, in accordance with this Article.
SECTION 1306. REINSTATEMENT.
If the Trustee or any Paying Agent is unable to apply any money in
accordance with Section 1305 by reason of any order or judgment of any court
or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company's obligations under this Indenture and the
Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 1302 or 1303, as the case may be, until such time as the
Trustee or Paying Agent is permitted to apply all such money in accordance
with Section 1305, and the Company shall execute all documents reasonably
satisfactory to the Trustee evidencing such revival and reinstatement;
PROVIDED, HOWEVER, that if the Company makes any payment of principal of (or
premium, if any, on) or interest on any Note following the reinstatement of
its obligations, the Company shall be subrogated to the rights of the Holders
of such Notes to receive such payment from the money held by the Trustee or
Paying Agent.
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ARTICLE FOURTEEN
SUBORDINATION OF NOTES
SECTION 1401. NOTES SUBORDINATE TO SENIOR INDEBTEDNESS.
The Company covenants and agrees, and each Holder, by its
acceptance thereof, likewise covenants and agrees, that, to the extent and in
the manner hereinafter set forth in this Article Fourteen, the indebtedness
represented by the Notes and the payment (by set-off or otherwise) of
principal of, premium, if any, interest and Liquidated Damages, if any, on
the Notes (including with respect to any repurchases of the Notes) will be
subordinated in right of payment to the prior payment in full in cash, or at
the option of the holders of Senior Indebtedness, in Temporary Cash
Investments, of all Obligations in respect of Senior Indebtedness, whether
outstanding on the date of this Indenture or thereafter incurred; PROVIDED,
HOWEVER, that the Notes, the indebtedness represented thereby and the payment
of the principal of (and premium, if any), interest on and Liquidated
Damages, if any, on the Notes, in all respects shall rank equally with, or
prior to, all existing and future Indebtedness of the Company that is
expressly subordinated to any Senior Indebtedness.
SECTION 1402. PAYMENT OVER OF PROCEEDS UPON DISSOLUTION, ETC.
Upon any distribution to creditors of the Company or any Subsidiary
Guarantor upon any total or partial liquidation, dissolution or winding up of
the Company or such Subsidiary Guarantor or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company or
such Subsidiary Guarantor or its property, whether voluntary or involuntary,
an assignment for the benefit of creditors or any marshalling of the
Company's or such Subsidiary Guarantor's assets and liabilities,
(1) the holders of Senior Indebtedness of the Company or such
Subsidiary Guarantor will be entitled to receive payment in full in cash,
or at the option of the holders of such Senior Indebtedness, in Temporary
Cash Investments, of all Obligations due or to become due in respect of
such Senior Indebtedness (including interest after the commencement of any
such proceeding at the rate specified in the applicable Senior
Indebtedness) before the Holders will be entitled to receive any payment of
any kind or character with respect to the Notes; and
(2) until all Obligations with respect to such Senior Indebtedness
are paid in full in cash, or at the option of the holders of such Senior
Indebtedness, in Temporary Cash Investments, any distribution of any kind
or character to which the Holders of Notes would be entitled shall be made
to the holders of such Senior Indebtedness (except that Holders of Notes
may receive Permitted Junior Securities and payments made from the trust
described under Article Thirteen).
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The consolidation of the Company with, or the merger of the Company
into, another Person or the liquidation or dissolution of the Company
following the conveyance, transfer or lease of its properties and assets
substantially as an entirety to another Person upon the terms and
conditions set forth in Article Eight shall not be deemed a dissolution,
winding up, liquidation, reorganization, assignment for the benefit of
creditors or marshalling of assets and liabilities of the Company for the
purposes of this Section if the Person formed by such consolidation or into
which the Company is merged or the Person which acquires by conveyance,
transfer or lease such properties and assets substantially as an entirety,
as the case may be, shall, as a part of such consolidation, merger,
conveyance, transfer or lease, comply with the conditions set forth in
Article Eight.
SECTION 1403. SUSPENSION OF PAYMENT WHEN SENIOR INDEBTEDNESS IN
DEFAULT.
Unless Section 1402 shall be applicable, neither the Company nor
any Subsidiary Guarantor shall make, directly or indirectly, (x) any payment
upon or in respect of the Notes (except in Permitted Junior Securities or
from the trust described under Article Thirteen) or (y) acquire any of the
Notes for cash or property or otherwise or make any other distribution with
respect to the Notes if (i) any default occurs and is continuing in the
payment when due, whether at maturity, upon any redemption, by declaration or
otherwise, of any amount of any Designated Senior Indebtedness (a "Payment
Default") or (ii) any other default occurs and is continuing with respect to
Designated Senior Indebtedness (a "Non-Payment Default") that permits holders
of, or the trustee or agent on behalf of the holders of, the Designated
Senior Indebtedness as to which such default relates to accelerate its
maturity and the Trustee receives a notice of such default (a "Payment
Blockage Notice") from the trustee or agent on behalf of holders of any
Designated Senior Indebtedness. Payments on the Notes may and shall be
resumed (a) in the case of a Payment Default, upon the date on which such
default is cured or waived and (b) in case of a Non-Payment Default, the
earlier of the date on which such Non-Payment Default is cured or waived or
179 days after the date on which the applicable Payment Blockage Notice is
received, unless a Payment Default has occurred and is continuing, including
as a result of the acceleration of the maturity of any Designated Senior
Indebtedness. After a Payment Blockage Notice is given for a Non-Payment
Default, no new period of payment blockage for a Non-Payment Default may be
commenced unless and until (i) 360 days have elapsed since the effectiveness
of the immediately prior Payment Blockage Notice and (ii) all scheduled
payments of principal, premium, if any, and interest and Liquidated Damages,
if any, on the Notes that have come due have been paid in full in cash. No
Non-Payment Default that existed or was continuing on the date of delivery of
any Payment Blockage Notice to the Trustee shall be, or be made, the basis
for a subsequent Payment Blockage Notice unless such Non-Payment Default
shall have been cured or waived for a period of not less than 90 days (it
being acknowledged that any subsequent action, or any breach of any financial
covenants for a
107
period commencing after the date of delivery of any Payment Blockage Notice
which, in either case, would give rise to a default pursuant to any provision
under which a default previously existed or was continuing shall constitute a
new default for this purpose). Each Holder by its acceptance of a Note
irrevocably agrees that if any payment or payments shall be made pursuant to
this Indenture by the Company or a Subsidiary Guarantor and the amount or
total amount of such payment or payments exceeds the amount, if any, that
such Holder would be entitled to receive upon the proper application of the
subordination provisions of this Indenture, the payment of such excess amount
shall be deemed null and void, and the Holder agrees that it will be
obligated to return the amount of the excess payment to the Trustee, as
instructed in a written notice of such excess payment, within ten days of
receiving such notice.
SECTION 1404. PAYMENT PERMITTED IF NO DEFAULT.
Nothing contained in this Article or elsewhere in this Indenture or
in any of the Notes shall prevent the Company, at any time except during the
pendency of any case, proceeding, dissolution, liquidation or other winding
up, assignment for the benefit of creditors or other marshalling of assets
and liabilities of the Company referred to in Section 1402 or under the
conditions described in Section 1403, from making payments at any time of
principal of (and premium, if any) or interest or Liquidated Damages, if any,
on the Notes.
SECTION 1405. SUBROGATION TO RIGHTS OF HOLDERS OF SENIOR
INDEBTEDNESS.
Subject to the prior payment in full in cash of all Senior
Indebtedness, the Holders shall be subrogated to the rights of the holders of
such Senior Indebtedness to receive payments and distributions of cash,
property and securities applicable to the Senior Indebtedness until the
principal of (and premium, if any) and interest on the Notes shall be paid in
full. For purposes of such subrogation, no payments or distributions to the
holders of Senior Indebtedness of any cash, property or securities to which
the Holders of the Notes or the Trustee would be entitled except for the
provisions of this Article, and no payments over pursuant to the provisions
of this Article to the holders of Senior Indebtedness by Holders of the Notes
or the Trustee, shall, as among the Company, its creditors other than holders
of Senior Indebtedness, and the Holders of the Notes, be deemed to be a
payment or distribution by the Company to or on account of the Senior
Indebtedness.
SECTION 1406. PROVISIONS SOLELY TO DEFINE RELATIVE RIGHTS.
The provisions of this Article are and are intended solely for the
purpose of defining the relative rights of the Holders of the Notes on the
one hand and the holders of Senior Indebtedness on the other hand. Nothing
contained in this Article or elsewhere in this Indenture or in the Notes is
intended to or shall (a) impair, as between the Company and the
108
Holders of the Notes, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders of the Notes the principal of (and
premium, if any) and interest on the Notes as and when the same shall become
due and payable in accordance with their terms; or (b) affect the relative
rights against the Company of the Holders of the Notes and creditors of the
Company other than the holders of Senior Indebtedness; or (c) prevent the
Trustee or the Holder of any Note from exercising all remedies otherwise
permitted by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article Fourteen of the holders of Senior
Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.
SECTION 1407. TRUSTEE TO EFFECTUATE SUBORDINATION.
Each Holder of a Note by his acceptance thereof authorizes and
directs the Trustee on his behalf to take such action as may be necessary or
appropriate to effectuate the subordination provided in this Article and
appoints the Trustee his attorney-in-fact for any and all such purposes. If
upon any dissolution, winding up or reorganization of the Company, whether in
bankruptcy, insolvency, receivership proceedings or otherwise, the Trustee
does not file a claim in such proceedings prior to 30 days before the
expiration of the time to file such claim, the holders of Senior Indebtedness
or the Agents may file such a claim on behalf of the holders of the Notes.
SECTION 1408. NO WAIVER OF SUBORDINATION PROVISIONS.
(a) No right of any present or future holder of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in
any way be prejudiced or impaired by any act or failure to act on the part of
the Company or by any act or failure to act, in good faith, by any such
holder, or by any non-compliance by the Company with the terms, provisions
and covenants of this Indenture, regardless of any knowledge thereof any such
holder may have or be otherwise charged with.
(b) Without in any way limiting the generality of Subsection (a)
of this Section, the holders of Senior Indebtedness may, at any time and from
time to time, without the consent of or notice to the Trustee or the Holders
of the Notes, without incurring responsibility to the Holders of the Notes
and without impairing or releasing the subordination provided in this Article
or the obligations hereunder of the Holders of the Notes to the holders of
Senior Indebtedness, do any one or more of the following: (1) change the
manner, place or terms of payment or extend the time of payment of, or renew
or alter, Senior Indebtedness or any instrument evidencing the same or any
agreement under which Senior Indebtedness is outstanding; (2) sell, exchange,
release or otherwise deal with any property pledged, mortgaged or otherwise
securing Senior Indebtedness; (3) release any Person liable in any manner for
the collection or payment of Senior Indebtedness; and (4) exercise or refrain
from exercising any rights against the Company or any other Person.
109
SECTION 1409. NOTICE TO TRUSTEE.
(a) The Company shall give prompt written notice to the Trustee of
any fact known to the Company which would prohibit the making of any payment
to or by the Trustee in respect of the Notes. Notwithstanding the provisions
of this Article or any other provision of this Indenture, the Trustee shall
not be charged with knowledge of the existence of any facts which would
prohibit the making of any payment to or by the Trustee in respect of the
Notes, unless and until the Trustee shall have received written notice
thereof from the Company, the Agent or a holder of Senior Indebtedness or
from any trustee, fiduciary or agent therefor; and, prior to the receipt of
any such written notice, the Trustee, subject to the provisions of Section
601, shall be entitled in all respects to assume that no such facts exist;
PROVIDED, HOWEVER, that, if the Trustee shall not have received the notice
provided for in this Section at least three Business Days prior to the date
upon which by the terms hereof any money may become payable for any purpose
(including, without limitation, the payment of the principal of (and premium,
if any) or interest on any Note), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to
receive such money and to apply the same to the purpose for which such money
was received and shall not be affected by any notice to the contrary which
may be received by it within three Business Days prior to such date.
(b) Subject to the provisions of Section 601, the Trustee shall be
entitled to rely on the delivery to it of a written notice by a Person
representing himself to be a holder of Senior Indebtedness (or a trustee,
fiduciary or agent therefor) to establish that such notice has been given by
a holder of Senior Indebtedness (or a trustee, fiduciary or agent therefor).
In the event that the Trustee determines in good faith that further evidence
is required with respect to the right of any Person as a holder of Senior
Indebtedness to participate in any payment or distribution pursuant to this
Article, the Trustee may request such Person to furnish evidence to the
reasonable satisfaction of the Trustee as to the amount of Senior
Indebtedness held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and any other facts pertinent
to the rights of such Person under this Article and, if such evidence is not
furnished, the Trustee may defer any payment to such Person pending judicial
determination as to the right of such Person to receive such payment.
SECTION 1410. RELIANCE ON JUDICIAL ORDER OR CERTIFICATE OF
LIQUIDATING AGENT.
Upon any payment or distribution of assets of the Company referred
to in this Article, the Trustee, subject to the provisions of Section 601,
and the Holders of the Notes shall be entitled to rely upon any order or
decree entered by any court of competent jurisdiction in which such
insolvency, bankruptcy, receivership, liquidation, reorganization,
dissolution, winding up or similar case or proceeding is pending, or a
certificate of the
110
trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee for
the benefit of creditors, agent or other Person making such payment or
distribution, delivered to the Trustee or to the Holders of Notes, for the
purpose of ascertaining the Persons entitled to participate in such payment
or distribution, the holders of Senior Indebtedness and other indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or to this
Article.
SECTION 1411. RIGHTS OF TRUSTEE AS A HOLDER OF SENIOR
INDEBTEDNESS; PRESERVATION OF TRUSTEE'S RIGHTS.
The Trustee in its individual capacity shall be entitled to all the
rights set forth in this Article with respect to any Senior Indebtedness
which may at any time be held by it, to the same extent as any other holder
of Senior Indebtedness, and nothing in this Indenture shall deprive the
Trustee of any of its rights as such holder. Nothing in this Article shall
apply to claims of, or payments to, the Trustee under or pursuant to Section
606.
SECTION 1412. ARTICLE APPLICABLE TO PAYING AGENTS.
In case at any time any Paying Agent other than the Trustee shall
have been appointed by the Company and be then acting hereunder, the term
"Trustee" as used in this Article shall in such case (unless the context
otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such
Paying Agent were named in this Article in addition to or in place of the
Trustee; PROVIDED, HOWEVER, that Section 1411 shall not apply to the Company
or any Affiliate of the Company if it or such Affiliate acts as Paying Agent.
SECTION 1413. NO SUSPENSION OF REMEDIES.
Nothing contained in this Article shall limit the right of the
Trustee or the Holders of Notes to take any action to accelerate the maturity
of the Notes pursuant to Article Five or to pursue any rights or remedies
hereunder or under applicable law.
This Indenture may be executed in any number of counterparts, each
of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same Indenture.
SECTION 1414. TRUSTEE NOT FIDUCIARY FOR HOLDERS OF SENIOR
INDEBTEDNESS. The Trustee shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness and shall not be liable to any such
holders if the Trustee shall mistakenly, in the absence of gross negligence
or willful misconduct, pay over or distribute to Holders of Notes or to the
Company or to any other person cash, property or securities to which any
holders of Senior Indebtedness shall be entitled by virtue of this Article or
otherwise. With respect
111
to the holders of Senior Indebtedness, the Trustee undertakes to perform or
to observe only such of its covenants or obligations as are specifically set
forth in this Article and no implied covenants or obligations with respect to
holders of Senior Indebtedness shall be read into this Indenture against the
Trustee.
This Indenture may be signed in any number of counterparts each of
which so executed shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Indenture.
IN WITNESS WHEREOF, the parties hereto have caused this Indenture
to be duly executed, and the Company has caused its corporate seal to be
hereunto affixed and attested, all as of the day and year first above written.
XXXXXXX COMPANIES, INC.
[SEAL] By /s/ Xxxx X. Xxxxxxxx
-------------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Vice President, Treasurer
Attest: /s/ Xxxxx X. Xxxxxx
---------------------------------
Name: Xxxxx X. Xxxxxx
Title: Secretary
MANUFACTURERS AND TRADERS TRUST COMPANY
By /s/ Xxxxxxx X. Xxxxxxx
-------------------------------------
Name: Xxxxxxx X. Xxxxxxx
Title: Assistant Vice President
ABCO MARKETS INC.
ABCO REALTY CORP.
XXXXXXX FOREIGN SALES CORPORATION
XXXXXXX INTERNATIONAL LTD.
XXXXXXX SUPERMARKETS OF FLORIDA, INC.
XXXXXXX TRANSPORTATION SERVICE, INC.
XXXXXXX WHOLESALE, INC.
GATEWAY INSURANCE AGENCY, INC.
LAS, INC.
PIGGLY WIGGLY COMPANY
PROGRESSIVE REALTY, INC.
RETAIL SUPERMARKETS, INC.
RFS MARKETING SERVICES, INC.
XXXXXXXX TRANSPORTATION, INC.
SMARTRANS, INC.
UNIVERSITY FOODS, INC.
Each, a Subsidiary Guarantor
By /s/ Xxxx X. Xxxxxxxx
-------------------------------------
Name: Xxxx X. Xxxxxxxx
Title: Vice President
Attest:
/s/ Xxxxx X. Xxxxxx
-------------------------------------
Xxxxx X. Xxxxxx
Secretary
EXHIBIT A
CERTIFICATE TO BE DELIVERED UPON REGISTRATION OF
EXCHANGE OR TRANSFER OF NOTES
Re: 10 1/2% Senior Subordinated Notes due 2004 of Xxxxxxx Companies, Inc.
This Certificate relates to $______ principal amount of Notes held in
*/ / global or */ / definitive form by ___________ (the "Transferor").
The Transferor*:
/ / has requested the Trustee by written order to deliver, in exchange for
its beneficial interest in the Global Note held by the Depositary, a Note or
Notes in definitive, registered form, in the authorized denominations in an
aggregate principal amount equal to its beneficial interest in such Global Note
(or the portion thereof indicated above); or
/ / has requested the Trustee by written order to exchange or register the
transfer of a Note or Notes.
In connection with any transfer of any of the Notes occurring prior to the
expiration of the period referred to in Rule 144(k) under the Securities Act of
1933, as amended (the "Securities Act"), after the later of the date of original
issuance of such Notes and the last date, if any, on which such Notes were owned
by the Company or any Affiliate of the Company, the undersigned confirms that
such Notes are being transferred in accordance with its terms:
CHECK ONE BOX BELOW:
(1) / / to the Company; or
(2) / / pursuant to an effective registration statement under the
Securities Act; or
(3) / / inside the United States to a "qualified institutional
buyer" (as defined in Rule 144A under the Securities Act)
that purchases for its own account or for the account of a
qualified institutional buyer to whom notice is given that
such transfer is being made in reliance on Rule 144A, in
each case pursuant to and in compliance with Rule 144A under
the Securities Act; or
-----------------------
* Check applicable box.
A-2
(4) / / outside the United states in an offshore transaction within
the meaning of Regulation S under the Securities Act in
compliance with Rule 904 under the Securities Act; or
(5) / / inside the United States to an institutional "accredited
investor" (as defined in Rule 501(a)(1), (2), (3) or (7) of
Regulation D under the Securities Act) that, prior to such
transfer, furnishes to the Trustee a signed letter
containing certain representations and agreements (the form
of which letter can be obtained from the Trustee) and an
opinion of counsel acceptable to the Company that such
transfer is in compliance with the restrictions set forth in
the legend on the Notes; or
(6) / / pursuant to another available exemption from registration
provided by Rule 144 under the Securities Act.
Unless one of the boxes is checked, the Trustee will refuse to register any of
the Notes in the name of any person other than the registered holder thereof;
provided, however, that if box (4), (5) or (6) is checked, the Trustee may
require, prior to registering any such transfer of the Notes, such legal
opinions, certifications and other information as the Company has reasonably
requested to confirm that such transfer is being made pursuant to an exemption
from, or in a transaction not subject to, the registration requirements of the
Securities Act, such as the exemption provided by Rule 144 under such Act.
Date: Your Name:
--------------------- --------------------------------------
(Print your name exactly as it
appears on the face of the Note)
Your Signature:
--------------------------------
(Sign exactly as your name
appears on the Note)
Social Security or Tax Identification No.:
------
Signature Guarantee**:
--------------------------
-----------------------
** Participant in a recognized Signature Guarantee Medallion Program (or
other signature guarantor acceptable to the Trustee).
A-3
TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.
The undersigned represents and warrants that it is purchasing the Notes
for its own account or an account with respect to which it exercises sole
investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act,
and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon the
undersigned's foregoing representations in order to claim the exemption from
registration provided by Rule 144A.
Dated:
------------------- -----------------------------------------------
NOTICE: To be executed by an executive officer
EXHIBIT B
FORM OF NOTE GUARANTEE
For value received, the undersigned hereby irrevocably and
unconditionally guarantees, jointly and severally, on a senior subordinated
basis to each Holder and to the Trustee, on behalf of the Holders, (i) the due
and punctual payment of the principal of, premium, if any, interest and
Liquidated Damages, if any, on each Note, when and as the same shall become due
and payable, whether at Stated Maturity or on a redemption date or pursuant to a
Change of Control Purchase Offer or an Asset Sale Offer, and whether by
declaration of acceleration, call for redemption, purchase or otherwise, the due
and punctual payment of interest on the overdue principal of, premium, if any,
interest and Liquidated Damages, if any, on the Notes, to the extent lawful, and
the due and punctual performance of all other obligations of the Company to the
Holders or the Trustee all in accordance with the terms of such Note and the
Indenture and (ii) in the case of any extension of time of payment or renewal of
any Notes or any of such other obligations, that the same will be promptly paid
in full when due or performed in accordance with the terms of the extension or
renewal, at Stated Maturity or on a redemption date or pursuant to a Change of
Control Purchase Offer or an Asset Sale Offer, and whether by declaration of
acceleration, call for redemption, purchase or otherwise (the obligations in
clauses (i) and (ii) hereof being the "Guaranteed Obligations"). Capitalized
terms used but not defined shall have the meanings ascribed to them in the
Indenture dated as of July 25, 1997 among Xxxxxxx Companies, Inc., the
Subsidiary Guarantors named therein and Manufacturers and Traders Trust Company.
The Obligations of the Subsidiary Guarantors to the Holders of the
Notes and to the Trustee pursuant to this Note Guarantee and the Indenture are
expressly set forth in Article Twelve of the Indenture, and reference is hereby
made to such Indenture for the precise terms of this Note Guarantee. The terms
of Article Twelve of the Indenture are incorporated herein by reference.
In certain circumstances more fully described in the Indenture, any
Subsidiary Guarantor may be released from its liability under this Note
Guarantee, and any such release will be effective whether or not noted herein.
This Note Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the Note upon which this Note
Guarantee is noted shall have been executed by the Trustee under the Indenture
by the manual signature of one of its authorized officers.
THIS GUARANTEE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
IN WITNESS WHEREOF, each Subsidiary Guarantor has caused its Note
Guarantee to be duly executed.
Date:
ABCO MARKETS INC.
ABCO REALTY CORP.
XXXXXXX FOREIGN SALES CORPORATION
XXXXXXX INTERNATIONAL LTD.
XXXXXXX SUPERMARKETS OF FLORIDA, INC.
XXXXXXX TRANSPORTATION SERVICE, INC.
XXXXXXX WHOLESALE, INC.
GATEWAY INSURANCE AGENCY, INC.
LAS, INC.
PIGGLY WIGGLY COMPANY
PROGRESSIVE REALTY, INC.
RETAIL SUPERMARKETS, INC.
RFS MARKETING SERVICES, INC.
XXXXXXXX TRANSPORTATION, INC.
SMARTRANS, INC.
UNIVERSITY FOODS, INC.
Attest: By:
----------------------------------
Name:
Title:
----------------------------
Secretary
EXHIBIT C
FORM OF INSTITUTIONAL ACCREDITED INVESTOR LETTER
In connection with our proposed purchase of $_______ aggregate
principal amount of 10 1/2% Senior Subordinated Notes due 2004 and/or 10 5/8%
Senior Subordinated Notes due 2007 (the "Notes") of XXXXXXX COMPANIES, INC.,
an Oklahoma corporation (the "Issuer"), we confirm that:
1. We understand that the Notes have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), and may not be sold
except as permitted in the following sentence. We agree on our own behalf and
on behalf of any investor account for which we are purchasing Notes to offer,
sell or otherwise transfer such Notes prior to the date which is two years after
the later of the date of original issue and the last date on which the Issuer or
any affiliate of the Issuer was the owner of such Notes (or any predecessor
thereto) (the "Resale Restriction Termination Date") only (a) to the Issuer, (b)
pursuant to a registration statement which has been declared effective under the
Securities Act, (c) for so long as the Notes are eligible for resale pursuant to
Rule 144A under the Securities Act, to a person we reasonably believe is a
qualified institutional buyer under Rule 144A (a "QIB") that purchases for its
own account or for the account of a QIB and to whom notice is given that the
transfer is being made in reliance on Rule 144A, (d) pursuant to offers and
sales to non-U.S. persons that occur outside the United States within the
meaning of Regulation S under the Securities Act, (e) to an institutional
"accredited investor" within the meaning of subparagraph (a)(1), (2), (3) or (7)
of Rule 501 under the Securities Act that is acquiring the Notes for investment
purposes and not with a view to, or for offer or sale in connection with, any
distribution in violation of the Securities Act, or (f) pursuant to any other
available exemption from the registration requirements of the Securities Act,
subject in each of the foregoing cases to any requirement of law that the
disposition of our property or the property of such investor account or accounts
be at all times within our or their control and to compliance with any
applicable state securities laws. The foregoing restrictions on resale will not
apply subsequent to the Resale Restriction Termination Date. If any resale or
other transfer of the Notes is proposed to be made pursuant to clause (e) above
prior to the Resale Restriction Termination Date, the transferor shall deliver a
letter from the transferee substantially in a form of this letter to the
Trustee, which shall provide, among other things, that the transferee is an
institutional "accredited investor" within the meaning of subparagraph (a)(1),
(2), (3) or (7) of Rule 501 under the Securities Act and that it is acquiring
such Notes for investment purposes and not for distribution in violation of the
Securities Act. Each purchaser acknowledges that the Issuer and the Trustee
reserve the
C-2
right prior to any offer, sale or other transfer prior to the Resale
Restriction Termination Date of the Notes pursuant to clauses (d), (e) and (f)
above to require the delivery of an opinion of counsel, certifications and/or
other information satisfactory to the Issuer and the Trustee.
2. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) purchasing
for our own account or for the account of such an institutional "accredited
investor", and we are acquiring the Notes for investment purposes and not with a
view to, or for offer or sale in connection with, any distribution in violation
of the Securities Act and we have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or its investment.
3. We are acquiring the Notes purchased by us for our own account or
for one or more accounts as to each of which we exercise sole investment
discretion.
4. You are entitled to rely upon this letter and you are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceeding or official inquiry with respect to the
matters covered hereby.
Very truly yours,
---------------------------------
By: (Name of Purchaser)
Date:
Upon transfer the Notes would be registered in the name of the new
beneficial owner as follows:
Name:
---------------------------
Address:
------------------------
Taxpayer ID Number:
-------------
