EXHIBIT 4.1
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INDENTURE
Dated as of May 1, 2002
among
STONERIDGE, INC.,
as Issuer,
Certain subsidiaries of the Issuer,
as Guarantors
and
Fifth Third Bank,
as Trustee
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Unlimited principal amount of
11 1/2% Senior Notes due 2012, Series A
11 1/2% Senior Notes due 2012, Series B
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CROSS-REFERENCE TABLE
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TIA Indenture
Section Section
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310(a)(1) ........................................... 7.10
(a)(2) ........................................... 7.10
(a)(3) ........................................... N.A.
(a)(4) ........................................... N.A.
(a)(5) ........................................... 7.10
(b) .............................................. 7.08; 7.10
(c) .............................................. N.A.
311(a) .............................................. 7.11
(b) .............................................. 7.11
312(a) .............................................. 2.05
(b) .............................................. 11.03
(c) .............................................. 11.03
313(a) .............................................. 7.06
(b)(1) ........................................... 7.06
(b)(2) ........................................... 7.06; 7.07
(c) .............................................. 7.05; 7.06; 11.02
(d) .............................................. 7.06
314(a) .............................................. 4.08; 4.10; 11.02
(b) .............................................. N.A.
(c)(1) ........................................... 4.08; 11.04
(c)(2) ........................................... 11.04
(c)(3) ........................................... 11.04
(d) .............................................. N.A.
(e) .............................................. 11.05
(f) .............................................. N.A.
315(a) .............................................. 7.01(b)
(b) .............................................. 7.05; 11.02
(c) .............................................. 7.01(a)
(d) .............................................. 7.01(c)
(e) .............................................. 6.12
316(a)(last sentence) ............................... 2.09
(a)(1)(A) ........................................ 6.05
(a)(1)(B) ........................................ 6.04
(a)(2) ........................................... N.A.
(b) .............................................. 6.07; 9.04
(c) .............................................. 9.04
317(a)(1) ........................................... 6.08
(a)(2) ........................................... 6.09
(b) .............................................. 2.04
318(a) .............................................. 11.01
(c) .............................................. 11.01
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"N.A." means Not Applicable.
NOTE: This Cross-Reference Table shall not, for any purpose, be deemed to be a
part of the Indenture.
TABLE OF CONTENTS
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Page
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ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions................................................. 1
SECTION 1.02. Incorporation by Reference of TIA........................... 31
SECTION 1.03. Rules of Construction....................................... 31
ARTICLE TWO
THE SECURITIES
SECTION 2.01. Form and Dating............................................. 32
SECTION 2.02. Execution and Authentication................................ 33
SECTION 2.03. Registrar and Paying Agent.................................. 34
SECTION 2.04. Paying Agent To Hold Assets in Trust........................ 34
SECTION 2.05. Securityholder Lists........................................ 35
SECTION 2.06. Transfer and Exchange....................................... 35
SECTION 2.07. Replacement Securities...................................... 36
SECTION 2.08. Outstanding Securities...................................... 36
SECTION 2.09. Treasury Securities......................................... 37
SECTION 2.10. Temporary Securities........................................ 37
SECTION 2.11. Cancellation................................................ 37
SECTION 2.12. Defaulted Interest.......................................... 38
SECTION 2.13. CUSIP Number................................................ 38
SECTION 2.14. Deposit of Moneys........................................... 38
SECTION 2.15. Book-Entry Provisions for Global Securities................. 39
SECTION 2.16. Registration of Transfers and Exchanges..................... 40
ARTICLE THREE
REDEMPTION
SECTION 3.01. Notices to Trustee.......................................... 46
SECTION 3.02. Selection of Securities To Be Redeemed...................... 46
SECTION 3.03. Notice of Redemption........................................ 47
SECTION 3.04. Effect of Notice of Redemption.............................. 48
SECTION 3.05. Deposit of Redemption Price................................. 48
SECTION 3.06. Securities Redeemed in Part................................. 48
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ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Securities..................................................... 49
SECTION 4.02. Maintenance of Office or Agency........................................... 49
SECTION 4.03. Limitation on Incurrence of Additional Indebtedness....................... 49
SECTION 4.04. Limitation on Restricted Payments......................................... 50
SECTION 4.05. Corporate Existence....................................................... 54
SECTION 4.06. Payment of Taxes and Other Claims......................................... 54
SECTION 4.07. Maintenance of Properties and Insurance................................... 54
SECTION 4.08. Compliance Certificate; Notice of Default................................. 55
SECTION 4.09. Compliance with Laws...................................................... 56
SECTION 4.10. Reports to Holders........................................................ 56
SECTION 4.11. Waiver of Stay, Extension or Usury Laws................................... 57
SECTION 4.12. Limitation on Asset Sales................................................. 58
SECTION 4.13. Limitation on Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries................................................ 61
SECTION 4.14. Limitation on Issuances of Capital Stock of Restricted Subsidiaries....... 62
SECTION 4.15. Limitation on Liens....................................................... 62
SECTION 4.16. [Intentionally Omitted]................................................... 63
SECTION 4.17. Limitation on Transactions with Affiliates................................ 63
SECTION 4.18. Issuance of Subsidiary Guarantees......................................... 64
SECTION 4.19. Payments for Consent...................................................... 65
SECTION 4.20. Limitation on Designations of Unrestricted Subsidiaries................... 65
SECTION 4.21. Change of Control......................................................... 67
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Merger, Consolidation and Sale of Assets.................................. 69
SECTION 5.02. Successor Corporation Substituted......................................... 71
ARTICLE SIX
DEFAULT AND REMEDIES
SECTION 6.01. Events of Default......................................................... 71
SECTION 6.02. Acceleration.............................................................. 73
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SECTION 6.03. Other Remedies............................................... 74
SECTION 6.04. Waiver of Past Defaults...................................... 75
SECTION 6.05. Control by Majority.......................................... 75
SECTION 6.06. Limitation on Suits.......................................... 75
SECTION 6.07. Rights of Holders to Receive Payment......................... 76
SECTION 6.08. Collection Suit by Trustee................................... 76
SECTION 6.09. Trustee May File Proofs of Claim............................. 76
SECTION 6.10. Priorities................................................... 77
SECTION 6.11. Payment of Interest; Interest Rights Preserved............... 78
SECTION 6.12. Undertaking for Costs........................................ 79
ARTICLE SEVEN
TRUSTEE
SECTION 7.01. Duties of Trustee............................................ 80
SECTION 7.02. Rights of Trustee............................................ 81
SECTION 7.03. Individual Rights of Trustee................................. 82
SECTION 7.04. Trustee's Disclaimer......................................... 83
SECTION 7.05. Notice of Default............................................ 83
SECTION 7.06. Reports by Trustee to Holders................................ 84
SECTION 7.07. Compensation and Indemnity................................... 84
SECTION 7.08. Replacement of Trustee....................................... 85
SECTION 7.09. Successor Trustee by Merger, Etc............................. 87
SECTION 7.10. Eligibility; Disqualification................................ 87
SECTION 7.11. Preferential Collection of Claims Against Company............ 87
ARTICLE EIGHT
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 8.01. Legal Defeasance and Covenant Defeasance..................... 88
SECTION 8.02. Satisfaction and Discharge................................... 92
SECTION 8.03. Survival of Certain Obligations.............................. 93
SECTION 8.04. Acknowledgment of Discharge by Trustee....................... 93
SECTION 8.05. Application of Trust Assets.................................. 93
SECTION 8.06. Repayment to the Company or Guarantors; Unclaimed Money...... 94
SECTION 8.07. Reinstatement................................................ 95
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ARTICLE NINE
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. Without Consent of Holders.................................. 95
SECTION 9.02. With Consent of Holders..................................... 96
SECTION 9.03. Compliance with TIA......................................... 98
SECTION 9.04. Revocation and Effect of Consents........................... 98
SECTION 9.05. Notation on or Exchange of Securities....................... 99
SECTION 9.06. Trustee to Sign Amendments, Etc............................. 99
ARTICLE TEN
GUARANTEE
SECTION 10.01. Unconditional Guarantee..................................... .99
SECTION 10.02. Severability................................................ 101
SECTION 10.03. Release of a Guarantor...................................... 101
SECTION 10.04. Limitation of a Guarantor's Liability....................... 101
SECTION 10.05. Contribution................................................ 102
SECTION 10.06. Waiver of Subrogation....................................... 102
SECTION 10.07. Execution of Guarantees..................................... 103
SECTION 10.08. Waiver of Stay, Extension or Usury Laws..................... 103
ARTICLE ELEVEN
MISCELLANEOUS
SECTION 11.01. TIA Controls................................................ 104
SECTION 11.02. Notices..................................................... 104
SECTION 11.03. Communications by Holders with Other Holders................ 105
SECTION 11.04. Certificate and Opinion as to Conditions Precedent.......... 105
SECTION 11.05. Statements Required in Certificate or Opinion............... 106
SECTION 11.06. Rules by Trustee, Paying Agent, Registrar................... 106
SECTION 11.07. Legal Holidays.............................................. 107
SECTION 11.08. Governing Law............................................... 107
SECTION 11.09. No Adverse Interpretation of Other Agreements............... 107
SECTION 11.10. No Recourse Against Others.................................. 107
SECTION 11.11. Successors.................................................. 107
SECTION 11.12. Duplicate Originals......................................... 108
SECTION 11.13. Severability................................................ 108
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SECTION 11.14. Table of Contents, Headings, Etc............................ 108
SIGNATURES.................................................................. S-1
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EXHIBITS
Exhibit A - Form of Series A Security
Exhibit B - Form of Series B Security
Exhibit C-1 - Form of Private Placement Legend
Exhibit C-2 - Form of Legend for Global Securities
Exhibit D - Transfer Certificate
Exhibit E - Transferee Certificate for Institutional Accredited Investors
Exhibit F - Transferee Certificate for Regulation S Transfers
Exhibit G - Form of Guarantee
NOTE: This Table of Contents shall not, for any purpose, be deemed to be a part
of the Indenture.
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INDENTURE dated as of May 1, 2002 among STONERIDGE, INC., an
Ohio corporation (the "Company"), as Issuer, such subsidiaries of the Issuer, as
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shall from time to time execute a Guarantee (as defined), and Fifth Third Bank,
an Ohio banking corporation, as Trustee (the "Trustee").
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The Company has duly authorized the issue of 11 1/2% Senior
Notes due 2012, Series A, and 11 1/2% Senior Notes due 2012, Series B, and to
provide therefor, the Company has duly authorized the execution and delivery of
this Indenture. All things necessary to make the Securities, when duly issued
and executed by the Company and authenticated and delivered hereunder, the valid
and binding obligations of the Company, and to make this Indenture a valid and
binding agreement of the Company, have been done.
Each party hereto agrees as follows for the benefit of each
other party and for the equal and ratable benefit of the Holders of the
Securities:
ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions.
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"Accounts Receivable Entity" means any Person, including,
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without limitation, a Subsidiary of the Company, whose operations consist solely
of owning and/or selling accounts receivable of the Company and its Subsidiaries
and engaging in other activities in connection with transactions that are
Permitted Receivables Financings.
"Acquired Indebtedness" means Indebtedness of a Person or any
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of its Subsidiaries (1) existing at the time such Person becomes a Restricted
Subsidiary or at the time such Person merges or consolidates with the Company or
any of the Restricted Subsidiaries or (2) assumed by the Company or any
Restricted Subsidiary in connection with the acquisition of assets from such
Person and, in each of cases (1) and (2), not incurred by such Person in
connection with, or in anticipation or contemplation of, such Person becoming a
Restricted Subsidiary or such acquisition, merger or consolidation.
"Acquired Subsidiary" means a Person which becomes a
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Restricted Subsidiary after the Issue Date; provided that such
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Person has outstanding voting Capital Stock prior to becoming a Subsidiary of
the Company and a majority of such voting Capital Stock was owned by Persons
other than the Company and its Restricted Subsidiaries.
"Adjusted Net Assets" has the meaning provided in Section
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10.05.
"Affiliate" means, with respect to any specified Person, any
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other Person who directly or indirectly through one or more intermediaries
controls, or is controlled by, or is under common control with, such specified
Person. The term "control" means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative of the foregoing.
"Affiliate Transaction" has the meaning provided in Section
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4.17.
"Agent" means any Registrar, Paying Agent or co-Registrar.
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"Asset Acquisition" means (1) an Investment by the Company or
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any Restricted Subsidiary in any other Person pursuant to which such Person
shall become a Restricted Subsidiary, or shall be merged with or into the
Company or any Restricted Subsidiary, or (2) the acquisition by the Company or
any Restricted Subsidiary of the assets of any Person (other than a Restricted
Subsidiary) which constitute all or substantially all of the assets of such
Person or comprise any division or line of business of such Person or any other
properties or assets of such Person other than in the ordinary course of
business.
"Asset Sale" means any direct or indirect sale, issuance,
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conveyance, lease (other than operating leases entered into in the ordinary
course of business), assignment or other transfer (other than the granting of a
Lien in accordance with this Indenture) for value by the Company or any of the
Restricted Subsidiaries (including any Sale and Leaseback Transaction) to any
Person other than the Company or a Restricted Subsidiary of (a) any Capital
Stock of any Restricted Subsidiary or (b) any other property or assets of the
Company or any Restricted Subsidiary other than in the ordinary course of
business; provided, however, that Asset Sales shall not include:
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(1) a transaction or series of related transactions for which
the Company or the Restricted Subsidiaries receive aggregate
consideration of less than $2.5 million;
(2) the sale, lease, conveyance, disposition or other transfer
of all or substantially all of the assets of the Company as permitted
by Section 5.01;
(3) any Restricted Payment made in accordance with Section
4.04; or
(4) sales of accounts receivable pursuant to a Permitted
Receivables Financing made in accordance with Section 4.03.
"Bankruptcy Law" means Title 11, U.S. Code or any similar
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Federal, state or foreign law for the relief of debtors.
"Board of Directors" means, as to any Person, the board of
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directors of such Person or any duly authorized committee thereof.
"Board Resolution" means, with respect to any Person, a copy
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of a resolution certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by the Board of Directors of such Person and to
be in full force and effect on the date of such certification, and delivered to
the Trustee.
"Business Day" means any day other than a Saturday, Sunday or
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any other day on which banking institutions in The City of New York, or in the
city in which the principal corporate trust office of the Trustee is located,
are required or authorized by law or other governmental action to be closed.
"Capitalized Lease Obligation" means, as to any Person, the
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obligations of such Person under a lease that are required to be classified and
accounted for as capital lease obligations under GAAP and, for purposes of this
definition, the amount of such obligations at any date shall be the capitalized
amount of such obligations at such date, determined in accordance with GAAP.
"Capital Stock" means (1) with respect to any Person that is a
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corporation, any and all shares, interests, participations or other equivalents
(however designated and whether or not voting) of corporate stock, including
each class of Common
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Stock and Preferred Stock of such Person and (2) with respect to any Person that
is not a corporation, any and all partnership or other equity interests of such
Person.
"Cash Equivalents" means:
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(1) marketable direct obligations issued by, or
unconditionally guaranteed by, the United States Government or any
member state of the European Union as of the Issue Date or issued by
any agency thereof and backed by the full faith and credit of the
United States or such member state of the European Union, in each case
maturing within one year from the date of acquisition thereof;
(2) marketable direct obligations issued by any State of the
United States of America or any member state of the European Union as
of the Issue Date or any political subdivision of any such State of the
United States or such member state of the European Union or any public
instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the
two highest ratings obtainable from either Standard & Poor's
Corporation ("S&P") or Xxxxx'x Investors Service, Inc. ("Moody's");
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(3) commercial paper maturing no more than one year from the
date of creation thereof and, at the time of acquisition, having a
rating of at least A-1 from S&P or at least P-1 from Moody's;
(4) certificates of deposit or bankers' acceptances maturing
within one year from the date of acquisition thereof issued by any bank
organized under the laws of the United States of America or any State
thereof or the District of Columbia or any member state of the European
Union as of the Issue Date or any U.S. branch of a foreign bank having
at the date of acquisition thereof combined capital and surplus of not
less than $250 million;
(5) repurchase obligations with a term of not more than seven
days for underlying securities of the types described in clause (1)
above entered into with any bank meeting the qualifications specified
in clause (4) above;
(6) investments in money market funds which invest
substantially all their assets in securities of the types described in
clauses (1) through (5) above;
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(7) investments in industrial development revenue bonds which
(i) "re-set" interest rates not less frequently than quarterly, (ii)
are entitled to the benefit of a remarketing arrangement with an
established broker dealer and (iii) are supported by a direct pay
letter of credit covering principal and accrued interest which is
issued by any bank whose short-term commercial paper rating from S&P is
at least A-1 or the equivalent thereof or from Xxxxx'x is at least P-1
or the equivalent thereof; and
(8) investments in pooled funds or investment accounts
consisting of investments of the nature described in clause (7) above.
"Change of Control" means the occurrence of one or more of the
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following events:
(1) any sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) of all or
substantially all of the assets of the Company to any Person or group
of related Persons for purposes of Section 13(d) of the Exchange Act (a
"Group"), together with any Affiliates thereof (whether or not
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otherwise in compliance with the provisions of this Indenture), other
than to one or more Permitted Holders;
(2) any Person or Group (other than Permitted Holders) shall
become the beneficial owner, directly or indirectly, of shares
representing more than 50% of the aggregate ordinary voting power
represented by the issued and outstanding Capital Stock of the Company;
or
(3) during any period of two consecutive years, individuals
who at the beginning of such period constituted the Board of Directors
(together with any new directors whose election by such Board of
Directors or whose nomination for election by the stockholders of the
Company was approved pursuant to a vote of a majority of the directors
then still in office who were either directors at the beginning of such
period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the Board of
Directors then in office.
"Change of Control Offer" has the meaning provided in Section
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4.21.
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"Change of Control Payment Date" has the meaning provided in
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Section 4.21.
"Clearstream" has the meaning provided in Section 2.16.
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"Commission" means the Securities and Exchange Commission, as
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from time to time constituted, or if at any time after the execution of this
Indenture such Commission is not existing and performing the applicable duties
now assigned to it, then the body or bodies performing such duties at such time.
"Commodity Hedging Agreement" means any forward contract,
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commodity swap, commodity option or other similar financial agreement or
arrangement relating to, or the value of which is dependent upon, fluctuations
in commodity prices.
"Common Stock" of any Person means any and all shares,
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interests or other participations in, and other equivalents (however designated
and whether voting or non-voting) of such Person's common stock, whether
outstanding on the Issue Date or issued after the Issue Date, and includes,
without limitation, all series and classes of such common stock.
"Company" means the party named as such in this Indenture
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until a successor replaces it pursuant to this Indenture and thereafter means
such successor.
"Consolidated EBITDA" means, with respect to the Company, for
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any period, the sum (without duplication) of:
(1) Consolidated Net Income; and
(2) to the extent Consolidated Net Income has been reduced
thereby:
(A) all income taxes of the Company and the Restricted
Subsidiaries paid or accrued in accordance with GAAP for such
period;
(B) Consolidated Interest Expense; and
(C) Consolidated Non-cash Charges,
less any non-cash items increasing Consolidated Net Income for such period, all
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as determined on a consolidated basis for the
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Company and the Restricted Subsidiaries in accordance with GAAP.
"Consolidated Fixed Charge Coverage Ratio" means, with respect
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to the Company, the ratio of Consolidated EBITDA of the Company during the four
fiscal quarters (the "Four Quarter Period") ending on or prior to the date of
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the transaction giving rise to the need to calculate the Consolidated Fixed
Charge Coverage Ratio (the "Transaction Date") to Consolidated Fixed Charges of
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the Company for the Four Quarter Period. In addition to and without limitation
of the foregoing, for purposes of this definition, "Consolidated EBITDA" and
"Consolidated Fixed Charges" shall be calculated after giving effect on a pro
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forma basis for the period of such calculation to:
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(1) the incurrence or repayment of any Indebtedness of the
Company or any of the Restricted Subsidiaries (and the application of
the proceeds thereof) giving rise to the need to make such calculation
and any incurrence or repayment of other Indebtedness (and the
application of the proceeds thereof), other than the incurrence or
repayment of Indebtedness in the ordinary course of business for
working capital purposes pursuant to working capital facilities,
occurring during the Four Quarter Period or at any time subsequent to
the last day of the Four Quarter Period and on or prior to the
Transaction Date, as if such incurrence or repayment, as the case may
be, (and the application of the proceeds thereof) occurred on the first
day of the Four Quarter Period; and
(2) any Asset Sales or other disposition or Asset Acquisitions
(including, without limitation, any Asset Acquisition giving rise to
the need to make such calculation as a result of the Company or one of
the Restricted Subsidiaries (including any Person who becomes a
Restricted Subsidiary as a result of the Asset Acquisition) incurring,
assuming or otherwise being liable for Acquired Indebtedness and also
including any Consolidated EBITDA (provided that such Consolidated
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EBITDA shall be included only to the extent includable pursuant to the
definition of "Consolidated Net Income") attributable to the assets
which are the subject of the Asset Acquisition or Asset Sale or other
disposition during the Four Quarter Period) occurring during the Four
Quarter Period or at any time subsequent to the last day of the Four
Quarter Period and on or prior to the Transaction Date as if such Asset
Sale or Asset Acquisition or other disposition (including the
incurrence, assumption or liability for any such Acquired
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Indebtedness) occurred on the first day of the Four Quarter Period.
If the Company or any of the Restricted Subsidiaries directly
or indirectly guarantees Indebtedness of a third Person, the preceding sentence
shall give effect to the incurrence of such guaranteed Indebtedness as if the
Company or any Restricted Subsidiary had directly incurred or otherwise assumed
such guaranteed Indebtedness. Furthermore, in calculating "Consolidated Fixed
Charges" for purposes of determining the denominator (but not the numerator) of
this "Consolidated Fixed Charge Coverage Ratio":
(1) interest on outstanding Indebtedness determined on a
fluctuating basis as of the Transaction Date and which will continue to
be so determined thereafter shall be deemed to have accrued at a fixed
rate per annum equal to the rate of interest on such Indebtedness in
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effect on the Transaction Date;
(2) if interest on any Indebtedness actually incurred on the
Transaction Date may optionally be determined at an interest rate based
upon a factor of a prime or similar rate, a eurocurrency interbank
offered rate, or other rates, then the interest rate in effect on the
Transaction Date will be deemed to have been in effect during the Four
Quarter Period; and
(3) notwithstanding clause (1) above, interest on Indebtedness
determined on a fluctuating basis, to the extent such interest is
covered by agreements relating to Interest Swap Obligations, shall be
deemed to accrue at the rate per annum in effect on the Transaction
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Date resulting after giving effect to the operation of such agreements
on such date.
"Consolidated Fixed Charges" means, with respect to the
--------------------------
Company for any period, the sum, without duplication, of:
(1) Consolidated Interest Expense, plus
(2) the product of (x) the amount of all dividend payments on
any series of Preferred Stock of the Company (other than dividends paid
in Qualified Capital Stock) or any Restricted Subsidiary paid, accrued
and/or scheduled to be paid or accrued during such period times (y) a
fraction, the numerator of which is one and the denominator of which is
one minus the then current effective consolidated
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federal, state, foreign and local income tax rate of the Company,
expressed as a decimal.
"Consolidated Interest Expense" means, with respect to the
-----------------------------
Company for any period, the sum of, without duplication:
(1) the aggregate of the interest expense of the Company and
the Restricted Subsidiaries for such period determined on a
consolidated basis in accordance with GAAP, including without
limitation,
(A) any amortization of debt discount,
(B) the net costs under Interest Swap
Obligations,
(C) all capitalized interest, and
(D) the interest portion of any deferred payment
obligation;
(2) the interest component of Capitalized Lease Obligations
paid, accrued and/or scheduled to be paid or accrued by the Company and
the Restricted Subsidiaries during such period as determined on a
consolidated basis in accordance with GAAP; and
(3) imputed interest relating to Permitted Receivables
Financings during such period as determined on a consolidated basis in
accordance with GAAP.
"Consolidated Net Income" means, with respect to the Company,
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for any period, the aggregate net income (or loss) of the Company and the
Restricted Subsidiaries for such period as determined on a consolidated basis in
accordance with GAAP; provided that there shall be excluded therefrom:
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(1) after-tax gains and losses from Asset Sales or
abandonments or reserves relating thereto;
(2) extraordinary or non-recurring gains or losses (determined
on an after-tax basis);
(3) the net income of any Person acquired in a "pooling of
interests" transaction accrued prior to the date it becomes a
Restricted Subsidiary or is merged or consolidated with the Company or
any Restricted Subsidiary;
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(4) the net income (but not loss) of any Restricted Subsidiary
to the extent that the declaration of dividends or similar
distributions by that Restricted Subsidiary of that income is
restricted by a contract, operation of law or otherwise;
(5) the net income of any Person, other than a Restricted
Subsidiary, except to the extent of cash dividends or distributions
paid to the Company or to a Restricted Subsidiary by such Person;
(6) any restoration to income of any contingency reserve,
except to the extent that provision for such reserve was made out of
Consolidated Net Income accrued at any time following the Issue Date;
(7) income or loss attributable to discontinued operations
(including, without limitation, operations disposed of during such
period whether or not such operations were classified as discontinued);
and
(8) in the case of a successor to the Company by consolidation
or merger or as a transferee of the Company's assets, any earnings of
the successor corporation prior to such consolidation, merger or
transfer of assets.
"Consolidated Net Worth" means, as of any date of
----------------------
determination, the total shareholders' equity shown on the balance sheet of the
Company and its Restricted Subsidiaries for the most recently ended fiscal
quarter for which financial statements are available, determined on a
consolidated basis in accordance with GAAP; provided that in no event shall
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Consolidated Net Worth include any amounts in respect of Disqualified Capital
Stock.
"Consolidated Non-cash Charges" means, with respect to the
-----------------------------
Company, for any period, the aggregate depreciation, amortization and other
non-cash expenses of the Company and the Restricted Subsidiaries reducing
Consolidated Net Income of the Company for such period, determined on a
consolidated basis in accordance with GAAP (excluding any such charge which
requires an accrual of or a reserve for cash charges for any future period).
"Corporate Trust Department" means the office of the Trustee
--------------------------
in the City of Cincinnati, Ohio at which at any particular time its corporate
trust business shall be principally administered.
-11-
"Covenant Defeasance" has the meaning provided in Section
-------------------
8.01.
"Credit Agreement" means one or more debt facilities or
----------------
commercial paper facilities with banks or other institutional lenders providing
for revolving credit loans, term loans or letters of credit, including the
Credit Agreement dated as of the Issue Date, among the Company, the lenders
party thereto in their capacities as lenders thereunder and National City Bank,
as agent thereunder, together with the documents related thereto (including,
without limitation, any guarantee agreements and security documents), in each
case as such agreements may be amended (including any amendment and restatement
thereof), supplemented or otherwise modified from time to time, including any
agreement extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of available borrowings
thereunder (provided that such increase in borrowings is permitted by Section
--------
4.03 (including the definition of Permitted Indebtedness)) or adding
Subsidiaries as additional borrowers or guarantors thereunder) all or any
portion of the Indebtedness under such agreement or any successor or replacement
agreement and whether by the same or any other agent, lender or group of
lenders.
"Currency Agreement" means any foreign exchange contract,
------------------
currency swap agreement or other similar agreement or arrangement whether or not
designed to protect the Company or any Restricted Subsidiary against
fluctuations in currency values.
"Custodian" means any receiver, trustee, assignee, liquidator,
---------
sequestrator or similar official under any Bankruptcy Law.
"Default" means an event or condition the occurrence of which
-------
is, or with the lapse of time or the giving of notice or both would be, an Event
of Default.
"Depository" means, with respect to the Securities issued in
----------
the form of one or more Global Securities, The Depository Trust Company or
another Person designated as Depository by the Company, which must be a clearing
agency registered under the Exchange Act.
"Designation" has the meaning provided in Section 4.20.
-----------
-12-
"Designation Amount" has the meaning provided in Section 4.20.
------------------
"Disqualified Capital Stock" means that portion of any Capital
--------------------------
Stock which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or is mandatorily exchangeable for Indebtedness, or is
redeemable or exchangeable for Indebtedness, at the sole option of the holder
thereof on or prior to the final maturity date of the Securities.
"Domestic Restricted Subsidiary" means a Restricted Subsidiary
------------------------------
incorporated or otherwise organized under the laws of the United States or any
State thereof or the District of Columbia.
"Euroclear" has the meaning provided in Section 2.16.
---------
"Event of Default" has the meaning provided in Section 6.01.
----------------
"Exchange Act" means the Securities Exchange Act of 1934, as
------------
amended, or any successor statute or statutes thereto, and the rules and
regulations of the Commission promulgated thereunder.
"Fair Market Value" means, with respect to any asset or
-----------------
property, the price which could be negotiated in an arm's-length, free market
transaction, for cash, between a willing seller and a willing and able buyer,
neither of whom is under undue pressure or compulsion to complete the
transaction. Fair Market Value shall be determined by the Board of Directors of
the Company acting reasonably and in good faith and shall be evidenced by a
Board Resolution of the Board of Directors of the Company.
"Final Maturity Date" means May 1, 2012.
-------------------
"Foreign Restricted Subsidiary" means any Restricted
-----------------------------
Subsidiary that is organized and existing under the laws of a jurisdiction other
than the United States, any State thereof or the District of Columbia.
"Four Quarter Period" has the meaning provided in the
-------------------
definition of "Consolidated Fixed Charge Coverage Ratio".
-13-
"Funding Guarantor" has the meaning provided in Section 10.05.
-----------------
"GAAP" means generally accepted accounting principles set
----
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, which are in effect as of the
Issue Date.
"Global Security" means a security evidencing all or a part of
---------------
the Securities issued to the Depository in accordance with Section 2.01 and
bearing the legend prescribed in Exhibit C-2.
-----------
"Guarantee" has the meaning provided in Section 4.18.
---------
"Guarantor" means (1) each Wholly Owned Domestic Restricted
---------
Subsidiary of the Company as of the Issue Date and (2) each other Restricted
Subsidiary that in the future executes a Guarantee pursuant to Section 4.18 or
otherwise; provided that any Person constituting a Guarantor as described above
--------
shall cease to constitute a Guarantor when its Guarantee is released
in accordance with the terms of this Indenture.
"Holder" or "Securityholder" means a Person in whose name a
------ --------------
Security is registered on the Registrar's books.
"incur" has the meaning provided in Section 4.03.
-----
"Indebtedness" means, with respect to any Person, without
------------
duplication:
(1) all Obligations of such Person for borrowed money;
(2) all Obligations of such Person evidenced by bonds,
debentures, notes or other similar instruments;
(3) all Capitalized Lease Obligations of such Person;
(4) all Obligations of such Person issued or assumed as the
deferred purchase price of property, all conditional sale obligations
and all Obligations under any title retention agreement (but excluding
trade accounts pay-
-14-
able and other accrued liabilities arising in the ordinary course of
business; provided that (i) not more than 10% of such trade accounts
--------
payable and other accrued liabilities are overdue by 180 days or more
or (ii) such trade accounts payable and other accrued liabilities are
being contested in good faith by appropriate proceedings promptly
instituted and diligently conducted);
(5) all Obligations for the reimbursement of any obligor on
any letter of credit, banker's acceptance or similar credit
transaction;
(6) guarantees and other contingent obligations in respect of
Indebtedness of any other Person referred to in clauses (1) through (5)
above and clauses (8) and (10) below;
(7) all Obligations of any other Person of the type referred
to in clauses (1) through (6) which are secured by any Lien on any
property or asset of such Person, the amount of such Obligation being
deemed to be the lesser of the Fair Market Value of such property or
asset or the amount of the Obligation so secured;
(8) all Interest Swap Obligations and Obligations under
Currency Agreements and Commodity Hedging Agreements of such Person;
(9) all Disqualified Capital Stock of the Company and all
Preferred Stock of a Restricted Subsidiary with the amount of
Indebtedness represented by such Disqualified Capital Stock or
Preferred Stock being equal to the greater of its voluntary or
involuntary liquidation preference and its maximum fixed repurchase
price, but excluding accrued and unpaid dividends, if any; and
(10) all Outstanding Permitted Receivables Financings.
For purposes hereof, the "maximum fixed repurchase price" of
any Disqualified Capital Stock or Preferred Stock which does not have a fixed
repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock or Preferred Stock as if such Disqualified Capital
Stock or Preferred Stock were purchased on any date on which Indebtedness shall
be required to be determined pursuant to the Indenture, and if such price is
based upon, or measured by, the Fair Market Value of such Disqualified Capital
Stock or Pre-
-15-
ferred Stock, such Fair Market Value shall be determined reasonably
and in good faith by the Board of Directors of the issuer of such Disqualified
Capital Stock or Preferred Stock. The amount of Indebtedness represented by
contingent obligations of the Company or any Restricted Subsidiary shall be
determined reasonably and in good faith by the Board of Directors of the Company
or such Restricted Subsidiary. The accretion or amortization of original issue
discount shall not be deemed to be an incurrence of Indebtedness.
"Indenture" means this Indenture, as amended or supplemented
---------
from time to time in accordance with the terms hereof.
"Independent Financial Advisor" means a firm (1) which does
-----------------------------
not, and whose directors, officers and employees and Affiliates do not, have a
direct or indirect material financial interest in the Company and (2) which, in
the judgment of the Board of Directors of the Company, is otherwise independent
and qualified to perform the task for which it is to be engaged.
"Initial Purchasers" means Deutsche Bank Securities Inc., J.P.
------------------
Xxxxxx Securities Inc., Xxxxxx Xxxxxxx & Co. Incorporated, NatCity Investments,
Inc., Comerica Securities, Inc., PNC Capital Markets, Inc. and U.S. Bancorp
Xxxxx Xxxxxxx Inc.
"Institutional Accredited Investor" means an institution that
---------------------------------
is an "accredited investor" as that term is defined in Rule 501(a)(1), (2), (3)
or (7) under the Securities Act.
"Interest Payment Date" means the stated maturity of an
---------------------
installment of interest on the Securities.
"Interest Swap Obligations" means the obligations of the
-------------------------
Company and the Restricted Subsidiaries pursuant to any arrangement with any
other Person, whereby, directly or indirectly, the Company or any Restricted
Subsidiary is entitled to receive from time to time periodic payments calculated
by applying either a floating or a fixed rate of interest on a stated notional
amount in exchange for periodic payments made by such other Person calculated by
applying a fixed or a floating rate of interest on the same notional amount and
shall include, without limitation, interest rate swaps, caps, floors, collars
and similar agreements.
"Investment" means, with respect to any Person, any direct or
----------
indirect loan or other extension of credit (includ-
-16-
ing, without limitation, any 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 or acquisition by
such Person of any Capital Stock, bonds, notes, debentures or other securities
or evidences of Indebtedness issued by, any Person. "Investment" shall exclude
extensions of trade credit by the Company and the Restricted Subsidiaries on
commercially reasonable terms in accordance with normal trade practices of the
Company or such Restricted Subsidiaries, as the case may be. If the Company or
any Restricted Subsidiary sells or otherwise disposes of any Capital Stock of
any Restricted Subsidiary (the "Referent Subsidiary") such that, after giving
effect to any such sale or disposition, the Referent Subsidiary shall cease to
be a Restricted Subsidiary, the Company shall be deemed to have made an
Investment on the date of any such sale or disposition equal to the Fair Market
Value of the Capital Stock of the Referent Subsidiary not sold or disposed of.
"Issue Date" means May 1, 2002, the date of original issuance
----------
of any Securities under this Indenture.
"Legal Defeasance" has the meaning provided in Section 8.01.
----------------
"Lien" means any lien, mortgage, deed of trust, pledge,
----
security interest, charge or encumbrance of any kind (including any conditional
sale or other title retention agreement, any lease in the nature thereof and any
agreement to give any security interest).
"Net Cash Proceeds" means, with respect to any Asset Sale, the
-----------------
proceeds in the form of cash or Cash Equivalents, including payments in respect
of deferred payment obligations when received in the form of cash or Cash
Equivalents (other than the portion of any such deferred payment constituting
interest), received by the Company or any of the Restricted Subsidiaries from
such Asset Sale net of:
(1) reasonable out-of-pocket expenses and fees relating to
such Asset Sale (including, without limitation, legal, accounting,
underwriting and investment banking fees, sales commissions and
relocation expenses);
(2) amounts of any distributions payable to holders of
minority interests in the relevant Restricted Subsidiary or in the
relevant property or assets;
-17-
(3) taxes paid or payable after taking into account any
reduction in consolidated tax liability due to available tax credits or
deductions and any tax sharing arrangements;
(4) repayments of Indebtedness secured by the property or
assets subject to such Asset Sale that is required to be repaid in
connection with such Asset Sale; and
(5) appropriate amounts to be determined by the Company or
any Restricted Subsidiary, as the case may be, as a reserve, in
accordance with GAAP, against any liabilities associated with such
Asset Sale and retained by the Company or any Restricted Subsidiary, as
the case may be, after such Asset Sale, including, without limitation,
pension and other post-employment benefit liabilities, liabilities
related to environmental matters and liabilities under any
indemnification obligations associated with such Asset Sale.
"Net Proceeds Offer" has the meaning provided in Section 4.12.
------------------
"Net Proceeds Offer Amount" has the meaning provided in
-------------------------
Section 4.12.
"Net Proceeds Offer Payment Date" has the meaning provided in
-------------------------------
Section 4.12.
"Net Proceeds Offer Trigger Date" has the meaning provided in
-------------------------------
Section 4.12.
"New York Presenting Agent" has the meaning provided in
-------------------------
Section 2.03.
"Obligations" means all obligations for principal, premium,
-----------
interest, penalties, fees, indemnifications, reimbursements, damages and other
liabilities payable under the documentation governing any Indebtedness.
"Offering Memorandum" means the offering memorandum of the
-------------------
Company dated April 25, 2002 related to the Securities issued on the Issue Date.
"Officer" means, with respect to any Person, the Chairman of
-------
the Board, the Chief Executive Officer, the President, any Vice President, the
Chief Financial Officer, the Controller, or the Secretary of such Person.
-18-
"Officers' Certificate" means a certificate signed by two
---------------------
Officers of the Company.
"Opinion of Counsel" means a written opinion from legal
------------------
counsel which is and who are reasonably acceptable to the Trustee.
"Outstanding Permitted Receivables Financings" means the
--------------------------------------------
greater of (x) 85% of the aggregate amount of the receivables sold or financed
pursuant to a Permitted Receivables Financing that remain uncollected at any one
time or (y) 100% of the obligations secured by such receivables.
"Participants" has the meaning provided in Section 2.15.
------------
"Paying Agent" has the meaning provided in Section 2.03.
------------
"Payment Default" has the meaning provided in Section 6.01.
---------------
"Permitted Holders" means (1) X.X. Xxxxxx, (2) Xxxxx X.
-----------------
Abruzzo, (3) the spouses, heirs, legatees, descendants and blood relatives to
the third degree of consanguinity of any such Person, (4) the executors and
administrators of the estate of any such Person and any court appointed guardian
of any such Person and (5) any trust, family partnership or similar investment
entity for the benefit of any such Person referred to in the foregoing clauses
(1), (2) and (3) or any other Persons (including for charitable purposes) so
long as one or more Permitted Holders has the exclusive or a joint right to
control the voting and disposition of securities held by such trust, family
partnership or other investment entity.
"Permitted Indebtedness" means, without duplication, each of
----------------------
the following:
(1) Indebtedness under the Securities, this Indenture and any
Guarantees not to exceed $200.0 million in aggregate principal amount;
(2) Indebtedness incurred pursuant to the Credit Agreement
and/or Outstanding Permitted Receivables Financings, whether by the
Company or any of the Restricted Subsidiaries, in an aggregate
principal amount outstanding at the time of incurrence not to exceed
the greater of:
-19-
(x) $200.0 million (reduced by any required permanent
repayments with the proceeds of Asset Sales (which are
accompanied by a corresponding permanent commitment reduction)
thereunder); and
(y) the sum of (A) 85% of the net book value of the
accounts receivable of the Company and the Domestic Restricted
Subsidiaries and (B) 50% of the net book value of the
inventory of the Company and the Domestic Restricted
Subsidiaries;
(3) other Indebtedness of the Company and the Restricted
Subsidiaries outstanding on the Issue Date (other than pursuant to the
Credit Agreement) reduced by the amount of any scheduled amortization
payments or mandatory prepayments when actually paid or permanent
reductions thereon;
(4) Interest Swap Obligations of the Company covering
Indebtedness of the Company or any Guarantor and Interest Swap
Obligations of any Restricted Subsidiary covering Indebtedness of such
Restricted Subsidiary; provided, however, that such Interest Swap
-------- -------
Obligations are entered into to protect the Company and the Restricted
Subsidiaries from fluctuations in interest rates on Indebtedness
incurred in accordance with this Indenture to the extent the notional
principal amount of such Interest Swap Obligations does not exceed the
principal amount of the Indebtedness to which such Interest Swap
Obligations relate;
(5) Indebtedness under (x) Currency Agreements entered into
in the ordinary course of business and designed to protect the Company
or any Restricted Subsidiary against fluctuations in currency values
(provided that in the case of Currency Agreements which relate to
--------
Indebtedness, such Currency Agreements do not increase the Indebtedness
of the Company and the Restricted Subsidiaries outstanding, other than
as a result of fluctuations in foreign currency exchange rates or by
reason of fees, indemnities and compensation payable thereunder) and
(y) Commodity Hedging Agreements entered into in the ordinary course of
business and designed to protect the Company or any Restricted
Subsidiary against fluctuations in commodity prices;
(6) Indebtedness of a Restricted Subsidiary to the Company or
another Restricted Subsidiary for so long as
-20-
such Indebtedness is held by the Company or a Restricted Subsidiary, in
each case subject to no Lien held by a Person other than the Company or
a Restricted Subsidiary; provided that (A) any Indebtedness of a
--------
Restricted Subsidiary that is a Guarantor to a Restricted Subsidiary
that is not a Guarantor is unsecured and (B) if as of any date any
Person other than the Company or another Restricted Subsidiary owns or
holds any such Indebtedness or holds a Lien in respect of such
Indebtedness, the Restricted Subsidiary will be deemed to have incurred
Indebtedness not constituting Permitted Indebtedness by the issuer of
such Indebtedness on such date;
(7) Indebtedness of the Company to a Restricted Subsidiary
for so long as such Indebtedness is held by a Restricted Subsidiary, in
each case subject to no Lien; provided that (A) any Indebtedness of the
--------
Company to any Restricted Subsidiary is unsecured and (B) if as of any
date any Person other than a Restricted Subsidiary owns or holds any
such Indebtedness or any Person holds a Lien in respect of such
Indebtedness, the Company will be deemed to have incurred Indebtedness
not constituting Permitted Indebtedness by the Company on such date;
(8) Indebtedness arising from the honoring by a bank or
other financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn against
insufficient funds in the ordinary course of business; provided,
--------
however, that such Indebtedness is extinguished within five Business
-------
Days after incurrence;
(9) Indebtedness of the Company or any of the Restricted
Subsidiaries represented by letters of credit for the account of the
Company or any such Restricted Subsidiary, as the case may be, in order
to provide security for workers' compensation claims, payment
obligations in connection with self-insurance or similar requirements
in the ordinary course of business;
(10) Refinancing Indebtedness;
(11) additional Indebtedness of the Company and the Restricted
Subsidiaries in an aggregate principal amount not to exceed $15.0
million at any one time outstanding;
(12) Purchase Money Indebtedness and Capitalized Lease
Obligations (and any Indebtedness incurred to Refi-
-21-
xxxxx such Purchase Money Indebtedness or Capitalized Lease
Obligations) not to exceed the greater of (x) $15.0 million and (y) 5%
of Consolidated Net Worth at any one time outstanding;
(13) Indebtedness of the Foreign Restricted Subsidiaries in
an aggregate principal amount at any time outstanding not to exceed the
sum of (A) 85% of the net book value of the accounts receivable of the
Foreign Restricted Subsidiaries and (B) 50% of the net book value of
the inventory of the Foreign Restricted Subsidiaries, in each case as
of the most recent balance sheet date;
(14) Indebtedness of the Company or any Restricted Subsidiary
represented by performance bonds, surety bonds or appeal bonds issued
in the ordinary course of business; and
(15) Indebtedness of the Company or any Restricted Subsidiary
arising from purchase price adjustments in connection with Asset Sales
that result solely from changes in working capital or other customary
purchase price adjustments with respect to the property or assets sold.
If any Indebtedness incurred by the Company or any Restricted
Subsidiary would qualify in more than one of the categories of Permitted
Indebtedness as set forth in clauses (1) through (15) of this definition, the
Company may designate from time to time under which category such incurrence
shall be deemed to have been made. An item of Indebtedness may be divided and
classified in one or more types of Permitted Indebtedness, as applicable.
"Permitted Investments" means:
---------------------
(1) Investments by the Company or any Restricted Subsidiary
in any Person that is or will become immediately after such Investment
a Wholly Owned Restricted Subsidiary or a Restricted Subsidiary that is
a Guarantor or that will merge or consolidate into the Company or a
Wholly Owned Restricted Subsidiary or a Restricted Subsidiary that is a
Guarantor;
(2) Investments in the Company by any Restricted Subsidiary;
provided that any Indebtedness evidencing such Investment is unsecured;
--------
(3) Investments in cash and Cash Equivalents;
-22-
(4) loans and advances to employees, officers and directors
of the Company and the Restricted Subsidiaries in the ordinary course
of business for bona fide business purposes not in excess of an
aggregate of $5.0 million at any one time outstanding;
(5) Currency Agreements designed to protect against
fluctuations in currency values, Interest Swap Obligations designed to
protect against fluctuations in interest rates on Indebtedness incurred
in accordance with the Indenture and Commodity Hedging Agreements
designed to protect against fluctuations in commodity prices, in each
case entered into in the ordinary course of the Company's or a
Restricted Subsidiary's businesses and otherwise in compliance with the
Indenture;
(6) Investments from judgments or settlements or in
securities of trade creditors or customers received pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of such trade creditors or customers or as a result of
foreclosure with respect to any secured Investment or transfer of title
with respect thereto;
(7) Investments made by the Company or the Restricted
Subsidiaries as a result of consideration received in connection with
an Asset Sale made in compliance with Section 4.12;
(8) Investments in Persons, including, without limitation,
Unrestricted Subsidiaries and joint ventures, engaged in a business
similar or related to or logical extensions of the businesses in which
the Company and the Restricted Subsidiaries are engaged on the Issue
Date, not to exceed the greater of (x) $15.0 million and (y) 5% of
Consolidated Net Worth at any one time outstanding;
(9) Investments in the Securities;
(10) Investments in an Accounts Receivable Entity;
(11) Investments existing on the Issue Date; and
(12) Investments the payment for which is in Qualified Capital
Stock of the Company.
-23-
"Permitted Liens" means the following types of Liens:
---------------
(1) Liens for taxes, assessments or governmental charges or
claims either (A) not delinquent or (B) contested in good faith by
appropriate proceedings and, in each case, as to which the Company or
any Restricted Subsidiary shall have set aside on its books such
reserves as may be required pursuant to GAAP;
(2) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, suppliers, materialmen, repairmen and other
Liens imposed by law incurred in the ordinary course of business for
sums not yet delinquent or being contested in good faith, if such
reserve or other appropriate provision, if any, as shall be required by
GAAP shall have been made in respect thereof;
(3) Liens incurred or deposits made in the ordinary course of
business in connection with workers' compensation, unemployment
insurance and other types of social security, including any Lien
securing letters of credit issued in the ordinary course of business
consistent with past practice in connection therewith, or to secure the
performance of tenders, statutory obligations, surety and appeal bonds,
bids, leases, contracts, performance and return-of-money bonds and
other similar obligations (exclusive of obligations for the payment of
borrowed money);
(4) judgment Liens not giving rise to an Event of Default;
(5) easements, rights-of-way, zoning restrictions and other
similar charges or encumbrances in respect of real property not
impairing in any material respect the ordinary conduct of the business
of the Company or any of the Restricted Subsidiaries;
(6) any interest or title of a lessor under any Capitalized
Lease Obligation; provided that such Liens do not extend to any
--------
property or asset which is not leased property subject to such
Capitalized Lease Obligation;
(7) purchase money Liens securing Indebtedness incurred to
finance property or assets of the Company or any Restricted Subsidiary
acquired, constructed or leased in the ordinary course of business, and
Liens securing Indebtedness which Refinances any such Indebtedness;
provided, however, that (A) the related purchase money In-
-------- -------
-24-
debtedness (or Refinancing Indebtedness) shall not exceed the cost of
such property or assets, including related expenses and taxes, and
shall not be secured by any property or assets of the Company or any
Restricted Subsidiary other than the property and assets so acquired
and (B) the Lien securing the purchase money Indebtedness shall be
created within 180 days after such acquisition;
(8) Liens upon specific items of inventory or other goods and
proceeds of any Person securing such Person's obligations in respect of
bankers' acceptances issued or created for the account of such Person
to facilitate the purchase, shipment or storage of such inventory or
other goods;
(9) Liens securing reimbursement obligations with respect to
commercial letters of credit which encumber documents and other
property relating to such letters of credit and products and proceeds
thereof;
(10) Liens encumbering deposits made to secure obligations
arising from statutory, regulatory, contractual or warranty
requirements of the Company or any of the Restricted Subsidiaries,
including rights of offset and set-off;
(11) Liens securing Interest Swap Obligations which Interest Swap
Obligations relate to Indebtedness that is otherwise permitted under
this Indenture;
(12) Liens securing Indebtedness under Currency Agreements that
is otherwise permitted under this Indenture;
(13) Liens securing Acquired Indebtedness (and any Indebtedness
which Refinances such Acquired Indebtedness) incurred in accordance
with Section 4.03; provided that (A) such Liens secured the Acquired
--------
Indebtedness at the time of and prior to the incurrence of such
Acquired Indebtedness by the Company or a Restricted Subsidiary and
were not granted in connection with, or in anticipation of, the
incurrence of such Acquired Indebtedness by the Company or a Restricted
Subsidiary and (B) such Liens do not extend to or cover any property or
assets of the Company or of any of the Restricted Subsidiaries other
than the property or assets that secured the Acquired Indebtedness
prior to the time such Indebtedness became Acquired Indebtedness of the
Company or a Restricted Subsidiary;
-25-
(14) Liens securing Indebtedness of Foreign Restricted
Subsidiaries incurred in accordance with this Indenture; provided that
--------
such Liens do not extend to any property or assets other than property
or assets of Foreign Restricted Subsidiaries;
(15) Liens incurred in connection with a Permitted Receivables
Financing;
(16) precautionary Uniform Commercial Code filings on operating
leases;
(17) Liens securing Indebtedness incurred pursuant to the Credit
Agreement in an amount equal to the greater of (x) $250.0 million and
(y) the amount of Indebtedness permitted to be incurred pursuant to
clause (2) of the definition of "Permitted Indebtedness";
(18) Liens securing Indebtedness permitted to be incurred
pursuant to clauses (11) and (12) of the definition of "Permitted
Indebtedness"; and
(19) other Liens securing Indebtedness of the Company and the
Restricted Subsidiaries in an aggregate principal amount not to exceed
$5.0 million at any one time outstanding.
"Permitted Receivables Financing" means any sale, conveyance or
-------------------------------
other transfer by the Company or a Restricted Subsidiary of accounts receivable
or any pledge of such accounts receivable (or an interest therein), in each case
that is part of a receivables financing transaction.
"Person" means an individual, partnership, corporation,
------
unincorporated organization, trust or joint venture, or a governmental agency or
political subdivision thereof.
"Physical Securities" has the meaning provided in Section 2.01.
-------------------
"Preferred Stock" of any Person means any Capital Stock of such
---------------
Person that has preferential rights to any other Capital Stock of such Person
with respect to dividends or redemptions or upon liquidation.
"Private Placement Legend" means the legend to be set forth on
------------------------
any Security that is a Restricted Security in the form
-26-
set forth on Exhibit C-1 and to be removed only as permitted by Section 2.16(f).
-----------
"pro forma" means, with respect to any calculation made or
---------
required to be made pursuant to the terms of this Indenture, a calculation in
accordance with Article 11 of Regulation S-X under the Securities Act as
interpreted by the Company's Board of Directors in consultation with its
independent certified public accountants.
"Public Equity Offering" means an underwritten public offering
----------------------
of Qualified Capital Stock of the Company pursuant to a registration statement
filed with the Commission in accordance with the Securities Act.
"Purchase Agreement" means the purchase agreement dated April 25,
------------------
2002 among the Company, the Guarantors and the Initial Purchasers.
"Purchase Money Indebtedness" means Indebtedness of the Company
---------------------------
or any Restricted Subsidiary incurred for the purpose of financing all
or any part of the purchase price or the cost, including expenses and taxes, of
property or assets or construction or improvement of any property; provided that
--------
the aggregate principal amount of such Indebtedness does not exceed such
purchase price or cost.
"Qualified Capital Stock" means any Capital Stock that is not
-----------------------
Disqualified Capital Stock.
"Qualified Institutional Buyer" or "QIB" shall have the meaning
----------------------------- ---
specified in Rule 144A under the Securities Act.
"Record Date" means the Record Dates specified in the Securities;
-----------
provided that if any such date is not a Business Day, the Record Date shall be
--------
the first day immediately preceding such specified day that is a Business Day.
"Redemption Date" means, when used with respect to any Security
---------------
to be redeemed, the date fixed for such redemption pursuant to this Indenture
and the Securities.
"Redemption Price" means, when used with respect to any Security
----------------
to be redeemed, the price fixed for such redemption, payable in immediately
available funds, pursuant to this Indenture and the Securities, excluding
accrued interest.
-27-
"Reference Date" has the meaning provided in Section 4.04.
--------------
"Refinance" means in respect of any security or Indebtedness, to
---------
refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or
to issue a security or Indebtedness in exchange or replacement for, such
security or Indebtedness in whole or in part. "Refinanced" and "Refinancing"
shall have correlative meanings.
"Refinancing Indebtedness" means any Refinancing by the Company
------------------------
or any Restricted Subsidiary of Indebtedness incurred in accordance with Section
4.03 (other than pursuant to clause (2), (4), (5), (6), (7), (8), (9), (11),
(12), (13), (14) or (15) of the definition of "Permitted Indebtedness"), in each
case that does not:
(1) result in an increase in the aggregate principal amount of
any Indebtedness of such Person as of the date of such proposed
Refinancing (plus the amount of any premium reasonably necessary to
Refinance such Indebtedness and plus the amount of reasonable expenses
incurred by the Company in connection with such Refinancing); or
(2) create Indebtedness with (A) a Weighted Average Life to
Maturity that is less than the Weighted Average Life to Maturity of the
Indebtedness being Refinanced or (B) a final maturity earlier than the
final maturity of the Indebtedness being Refinanced;
provided that if such Indebtedness being Refinanced is Indebtedness of the
--------
Company and/or a Guarantor, then such Refinancing Indebtedness shall be
Indebtedness solely of the Company and/or such Guarantor.
"Registrar" has the meaning provided in Section 2.03.
---------
"Registration Rights Agreement" means (i) the Registration Rights
-----------------------------
Agreement dated April 25, 2002 among the Company, the Guarantors and the Initial
Purchasers or (ii) any registration rights agreement entered into in connection
with the issuance of Series A Securities after the Issue Date.
"Regulation S" means Regulation S under the Securities Act.
------------
"Regulation S Global Security" has the meaning provided in
----------------------------
Section 2.01.
-28-
"Replacement Assets" means assets and property that will be used
------------------
in the business of the Company and/or its Restricted Subsidiaries as existing on
the Issue Date or in a business the same, similar or reasonably related thereto
(including Capital Stock of a Person which becomes a Restricted Subsidiary).
"Responsible Officer" means, when used with respect to the
-------------------
Trustee, any officer in the Corporate Trust Department of the Trustee including
any vice president, assistant vice president or any other officer of the Trustee
who customarily performs functions similar to those performed by the Persons who
at the time shall be such officers, respectively, and to whom any corporate
trust matter is referred because of such officer's knowledge of and familiarity
with the particular subject.
"Restricted Payment" has the meaning provided in Section 4.04.
------------------
"Restricted Security" has the meaning set forth in Rule 144(a)(3)
-------------------
under the Securities Act; provided that the Trustee shall be entitled to request
--------
and conclusively rely upon an Opinion of Counsel with respect to whether any
Security is a Restricted Security.
"Restricted Subsidiary" means any Subsidiary of the Company that
---------------------
has not been designated by the Board of Directors of the Company, by a Board
Resolution delivered to the Trustee, as an Unrestricted Subsidiary pursuant to
and in compliance with Section 4.20. Any such Designation may be revoked by a
Board Resolution of the Company delivered to the Trustee, subject to the
provisions of such covenant.
"Revocation" has the meaning provided in Section 4.20.
----------
"Rule 144A" means Rule 144A under the Securities Act.
---------
"Rule 144A Global Security" has the meaning provided in Section
-------------------------
2.01.
"Sale and Leaseback Transaction" means any direct or indirect
------------------------------
arrangement with any Person or to which any such Person is a party, providing
for the leasing to the Company or a Restricted Subsidiary of any property,
whether owned by the Company or any Restricted Subsidiary on the Issue Date or
later acquired, which has been or is to be sold or transferred by the
-29-
Company or such Restricted Subsidiary to such Person or to any other Person
from whom funds have been or are to be advanced on the security of such
Property.
"Securities" means the Series A Securities and the Series B
----------
Securities treated as a single class of securities, as amended or supplemented
from time to time in accordance with the terms hereof, that are issued pursuant
to this Indenture.
"Securities Act" means the Securities Act of 1933, as amended,
--------------
or any successor statute or statutes thereto, and the rules and regulations of
the Commission promulgated thereunder.
"Series A Securities" means the 11 1/2% Senior Notes due 2012,
-------------------
Series A, of the Company issued pursuant to this Indenture and sold pursuant to
the Purchase Agreement.
"Series B Securities" means the 11 1/2% Senior Notes due 2012,
-------------------
Series B, of the Company to be issued in exchange for the Series A Securities
pursuant to this Indenture.
"Significant Subsidiary" means, with respect to any Person, any
----------------------
Restricted Subsidiary of such Person that satisfies the criteria for a
"significant subsidiary" set forth in Rule 1.02(w) of Regulation S-X under the
Securities Act.
"Special Record Date" has the meaning provided in Section 6.11.
-------------------
"Subordinated Indebtedness" means Indebtedness of the Company or
-------------------------
the Guarantors that is subordinate or junior in right of payment to the
Securities or any Guarantee, as the case may be.
"Subsidiary" means, with respect to any Person, (1) any
----------
corporation of which the outstanding Capital Stock having at least a majority of
the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such Person
or (2) any other Person of which at least a majority of the voting interest
under ordinary circumstances is at the time, directly or indirectly, owned by
such Person.
"Surviving Entity" has the meaning provided in Section 5.01.
----------------
"TIA" means the Trust Indenture Act of 1939 (15 U.S.C. (S)(S)
---
77aaa-77bbbb), as amended, as in effect on the date
-30-
of the execution of this Indenture until such time as this Indenture is
qualified under the TIA, and thereafter as in effect on the date on which this
Indenture is qualified under the TIA, except as otherwise provided in Section
9.03.
"Transaction Date" has the meaning set forth in the definition of
----------------
"Consolidated Fixed Charge Coverage Ratio".
"Trustee" means the party named as such in this Indenture until a
-------
successor replaces it in accordance with the provisions of this Indenture and
thereafter means such successor.
"Unrestricted Subsidiary" means any Subsidiary of the Company
-----------------------
designated as such pursuant to and in compliance with Section 4.20. Any such
designation may be revoked by a Board Resolution of the Company delivered to the
Trustee, subject to the provisions of such covenant.
"U.S. Legal Tender" means such coin or currency in immediately
-----------------
available funds of the United States of America as at the time of payment shall
be legal tender for the payment of public and private debts.
"Weighted Average Life to Maturity" means, when applied to any
---------------------------------
Indebtedness at any date, the number of years obtained by dividing (A) the then
outstanding aggregate principal amount of such Indebtedness into (B) the sum of
the total of the products obtained by multiplying (I) the amount of each then
remaining installment, sinking fund, serial maturity or other required payment
of principal, including payment at final maturity, in respect thereof, by (II)
the number of years (calculated to the nearest one-twelfth) which will elapse
between such date and the making of such payment.
"Wholly Owned Domestic Restricted Subsidiary" means a Wholly
-------------------------------------------
Owned Restricted Subsidiary that is also a Domestic Restricted Subsidiary.
"Wholly Owned Restricted Subsidiary" of the Company means any
----------------------------------
Restricted Subsidiary of which all the outstanding voting securities (other than
in the case of a Foreign Restricted Subsidiary, directors' qualifying shares or
an immaterial amount of shares required to be owned by other Persons pursuant to
applicable law) are owned by the Company or any other Wholly Owned Restricted
Subsidiary.
-31-
SECTION 1.02. Incorporation by Reference of TIA.
---------------------------------
Whenever this Indenture refers to a provision of the TIA, such
provision is incorporated by reference in, and made a part of, this Indenture.
The following TIA terms used in this Indenture have the following meanings:
"indenture securities" means the Securities.
"indenture security holder" means a Holder or a Securityholder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Trustee.
"obligor" on the indenture securities means the Company, any Guarantor
and any other obligor on the Securities.
All other TIA terms used in this Indenture that are defined by the
TIA, defined by TIA reference to another statute or defined by Commission rule
and not otherwise defined herein have the meanings assigned to them therein.
SECTION 1.03. Rules of Construction.
---------------------
Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
(3) "or" is not exclusive;
(4) words in the singular include the plural, and words in the
plural include the singular;
(5) provisions apply to successive events and transactions; and
(6) "herein," "hereof" and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or
other subdivision.
-32-
ARTICLE TWO
THE SECURITIES
SECTION 2.01. Form and Dating.
---------------
The Series A Securities and the Trustee's certificate of
authentication thereof shall be substantially in the form of Exhibit A annexed
---------
hereto, which is hereby incorporated in and expressly made a part of this
Indenture. The Series B Securities and the Trustee's certificate of
authentication thereof shall be substantially in the form of Exhibit B annexed
---------
hereto, which is hereby incorporated in and expressly made a part of this
Indenture. The Securities may have notations, legends or endorsements (including
notations relating to any Guarantees, stock exchange rule or usage). The Company
and the Trustee shall approve the form of the Securities and any notation,
legend or endorsement (including notations relating to any Guarantees) on them,
and any such approval will be evidenced by the execution or authentication
thereof. Each Security shall be dated the date of its issuance and shall be
authenticated by the Trustee.
Securities offered and sold in reliance on Rule 144A shall be issued
initially in the form of one or more permanent Global Securities ("Rule 144A
---------
Global Securities") in registered form, substantially in the form set forth in
-----------------
Exhibit A, deposited with the Trustee, as custodian for the Depository, and
---------
shall bear the legends set forth in Exhibits C-1 and C-2. The aggregate
------------ ---
principal amount of any Rule 144A Global Security may from time to time be
increased or decreased by adjustments made on the records of the Trustee, as
custodian for the Depository, as hereinafter provided.
Securities offered and sold in offshore transactions in reliance on
Regulation S shall be issued initially in the form of one or more permanent
Global Securities ("Regulation S Global Securities") in registered form,
------------------------------
substantially in the form set forth in Exhibit A, deposited with the Trustee, as
---------
custodian for the Depository, and shall bear the legends set forth in Exhibits
--------
C-1 and C-2. The aggregate principal amount of any Regulation S Global Security
--- ---
may from time to time be increased or decreased by adjustments made on the
records of the Trustee, as custodian for the Depository, as hereinafter
provided.
-33-
Securities offered and sold in reliance on any other exemption from
registration under the Securities Act other than as described in the preceding
two paragraphs shall be issued in the form of certificated Securities ("Physical
--------
Securities") in registered form in substantially the form set forth in Exhibit A
---------- ---------
and shall bear the legend set forth in Exhibit C-1.
-----------
SECTION 2.02. Execution and Authentication.
----------------------------
Two Officers, or an Officer and an Assistant Secretary, shall sign, or
one Officer shall sign and one Officer or an Assistant Secretary (each of whom
shall, in each case, have been duly authorized by all requisite corporate
actions) shall attest to, the Securities for the Company by manual or facsimile
signature.
If an Officer or Assistant Secretary whose signature is on a Security
was an Officer or Assistant Secretary at the time of such execution but no
longer holds that office at the time the Trustee authenticates the Security, the
Security shall be valid nevertheless. Each Guarantor shall execute its Guarantee
in the manner set forth in Section 10.07.
A Security shall not be valid until an authorized signatory of the
Trustee manually signs the certificate of authentication on the Security. The
signature shall be conclusive evidence that the Security has been authenticated
under this Indenture.
The Trustee shall authenticate Securities for original issue (i) on
the Issue Date in the aggregate principal amount of $200,000,000 and (ii) after
the Issue Date in an unlimited amount, in each case upon a written order of the
Company in the form of an Officers' Certificate. Each such Officers' Certificate
shall specify the amount of Securities to be authenticated, the series of
Securities and the date on which the Securities are to be authenticated. There
shall be no limit on the aggregate principal amount of Securities that may be
outstanding at any time. Except as otherwise provided in this Section 2.02 and
Sections 2.06, 2.07, 2.16, 4.12 and 4.21, Additional Securities may be issued
only in compliance with Section 4.03. Upon receipt of a written order of the
Company in the form of an Officers' Certificate, the Trustee shall authenticate
Securities in substitution for Securities originally issued to reflect any name
change of the Company.
The Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate Securities.
-34-
Unless otherwise provided in the appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with the
Company and Affiliates of the Company.
The Securities shall be issuable only in registered form without
interest coupons in denominations of $1,000 and any integral multiple thereof.
SECTION 2.03. Registrar and Paying Agent.
--------------------------
The Company shall maintain an office or agency in the Borough of
Manhattan, The City of New York, (the "New York Presenting Agent") where (a)
-------------------------
Securities may be presented or surrendered in New York City for registration of
transfer or for exchange, (b) Securities may be presented or surrendered for
payment in New York City and (c) notices and demands upon the Company in respect
of the Securities and this Indenture may be served in New York City. The Trustee
shall initially act as Registrar ("Registrar") and Paying Agent ("Paying Agent")
--------- ------------
for the Securities. The Registrar shall keep a register of the Securities and of
their transfer and exchange. The Company, upon written notice to the Trustee,
may have one or more co-Registrars and one or more additional Paying Agents
reasonably acceptable to the Trustee. The term "Paying Agent" includes any
additional Paying Agent. The Company initially appoints the Trustee as
Registrar, Paying Agent and New York Presenting Agent until such time as the
Trustee has resigned or a successor has been appointed by the Company. Notices
and demands upon the Company in respect of the Securities and this Indenture may
be served at the Corporate Trust Department of the Trustee located as of the
date hereof at Fifth Third Bank, Corporate Trust Administration, MD 10AT60, 00
Xxxxxxxx Xxxxxx Xxxxx, Xxxxxxxxxx, Xxxx 00000, or at the office of its New York
Presenting Agent, Computershare Trust Company of New York, Wall Street Plaza, 00
Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000. Neither the Company nor any Affiliate of
the Company may act as Paying Agent except as otherwise expressly provided in
the form of the Security.
SECTION 2.04. Paying Agent To Hold Assets in Trust.
------------------------------------
The Company shall require each Paying Agent other than the Trustee to
agree in writing that each Paying Agent shall hold in trust for the benefit of
Holders or the Trustee all assets held by the Paying Agent for the payment of
princi-
-35-
pal of, premium, if any, or interest on the Securities, and shall notify the
Trustee in writing of any Default by the Company in making any such payment. The
Company at any time may require a Paying Agent to distribute all assets held by
it to the Trustee and account for any assets disbursed and the Trustee may at
any time, but shall be under no obligation to, during the continuance of any
Payment Default, upon written request to a Paying Agent, require such Paying
Agent to distribute all assets held by it to the Trustee and to account for any
assets distributed. Upon distribution to the Trustee of all assets that shall
have been delivered by the Company to the Paying Agent, the Paying Agent shall
have no further liability for such assets.
SECTION 2.05. Securityholder Lists.
--------------------
The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders and shall otherwise comply with TIA ss. 312(a). If the Trustee is not
the Registrar, the Company shall furnish to the Trustee before each Record Date
and at such other times as the Trustee may request in writing a list as of such
date and in such form as the Trustee may reasonably require of the names and
addresses of Holders, which list may be conclusively relied upon by the Trustee.
SECTION 2.06. Transfer and Exchange.
---------------------
Subject to the provisions of Sections 2.15 and 2.16, when Securities
are presented to the Registrar or a co-Registrar (through the New York
Presenting Agent or otherwise) with a request to register the transfer of such
Securities or to exchange such Securities for an equal principal amount of
Securities of other authorized denominations of the same series, the Registrar
or co-Registrar shall register the transfer or make the exchange as requested if
its requirements for such transaction are met; provided, however, that the
-------- -------
Securities surrendered for transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to the
Company and the Registrar or co-Registrar, duly executed by the Holder thereof
or his attorney duly authorized in writing. To permit registrations of transfers
and exchanges, the Company shall execute and the Trustee shall authenticate
Securities at the Registrar's or co-Registrar's written request. No service
charge shall be made for any registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other
-36-
than any such transfer taxes or other governmental charge payable upon exchanges
or transfers pursuant to Section 2.02, 2.10, 3.06, 4.12, 4.21 or 9.05). The
Registrar or co-Registrar shall not be required to register the transfer of or
exchange of any Security (i) during a period beginning at the opening of
business 15 days before the mailing of a notice of redemption of Securities and
ending at the close of business on the day of such mailing and (ii) selected for
redemption in whole or in part pursuant to Article Three, except the unredeemed
portion of any Security being redeemed in part.
Any Holder of a Global Security shall, by acceptance of such Global
Security, agree that transfers of beneficial interests in such Global Security
may be effected only through a book-entry system maintained by the Depository
(or its agent), and that ownership of a beneficial interest in a Global Security
shall be required to be reflected in a book-entry system.
SECTION 2.07. Replacement Securities.
----------------------
If a mutilated Security is surrendered to the Registrar or if the
Holder of a Security claims that the Security has been lost, destroyed or
wrongfully taken, the Company shall issue and the Trustee shall authenticate
upon written notice from the Company a replacement Security if the Trustee's
requirements are met. If required by the Trustee or the Company, such Holder
must provide an indemnity bond or other indemnity, sufficient in the judgment of
both the Company and the Trustee, to protect the Company, the Trustee and any
Agent from any loss which any of them may suffer if a Security is replaced. The
Company and the Trustee may charge such Holder for their respective reasonable
out-of-pocket expenses in replacing a Security, including reasonable fees and
expenses of counsel. Every replacement Security is an additional obligation of
the Company.
SECTION 2.08. Outstanding Securities.
----------------------
Securities outstanding at any time are all the Securities that have
been authenticated by the Trustee except those canceled by it, those delivered
to it for cancellation and those described in this Section as not outstanding.
Subject to Section 2.09, a Security does not cease to be outstanding because the
Company or any of its Affiliates holds the Security.
If a Security is replaced pursuant to Section 2.07 (other than a
mutilated Security surrendered for replacement), it ceases to be outstanding
unless the Trustee receives proof
-37-
satisfactory to it that the replaced Security is held by a bona fide purchaser.
---- ----
A mutilated Security ceases to be outstanding upon surrender of such Security
and replacement thereof pursuant to Section 2.07.
If on a Redemption Date or the Final Maturity Date the Paying Agent
holds U.S. Legal Tender or U.S. Government Obligations sufficient to pay all of
the principal and interest due on the Securities payable on that date, then on
and after that date such Securities cease to be outstanding and interest on them
ceases to accrue.
SECTION 2.09. Treasury Securities.
-------------------
In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company, any Guarantor or any of their respective Affiliates shall be
disregarded, except that, for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities that a Responsible Officer of the Trustee actually knows are so owned
shall be disregarded.
The Trustee may require an Officers' Certificate listing Securities
owned by the Company, any Guarantor or any of their respective Affiliates.
SECTION 2.10. Temporary Securities.
--------------------
Until definitive Securities are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Securities upon receipt of
a written order of the Company in the form of an Officers' Certificate. The
Officers' Certificate shall specify the amount of temporary Securities to be
authenticated and the date on which the temporary Securities are to be
authenticated. Temporary Securities shall be substantially in the form of
definitive Securities but may have variations that the Company considers
appropriate for temporary Securities. Without unreasonable delay, the Company
shall prepare and the Trustee shall authenticate upon receipt of a written order
of the Company pursuant to Section 2.02 definitive Securities in exchange for
temporary Securities.
SECTION 2.11. Cancellation.
------------
The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Securities surrendered to them
-38-
for transfer, exchange or payment. The Trustee, or at the direction of the
Trustee, the Registrar or the Paying Agent, and no one else, shall cancel and,
at the written direction of the Company, shall dispose of all Securities
surrendered for transfer, exchange, payment or cancellation; provided, however,
-------- -------
that in no event shall the Trustee be required to destroy any canceled
Securities. Subject to Section 2.07, the Company may not issue new Securities to
replace Securities that it has paid or delivered to the Trustee for
cancellation. If the Company or any Guarantor shall acquire any of the
Securities, such acquisition shall not operate as a redemption or satisfaction
of the Indebtedness represented by such Securities unless and until the same are
surrendered to the Trustee for cancellation pursuant to this Section 2.11.
SECTION 2.12. Defaulted Interest.
------------------
If the Company defaults in a payment of interest on the Securities, it
shall pay interest on overdue principal and on overdue installments of interest
(without grace periods) from time to time on demand at the rate of 2% per annum
--- -----
in excess of the rate shown on the Security.
SECTION 2.13. CUSIP Number.
------------
The Company in issuing the Securities will use a "CUSIP" number, and
if so, the Trustee shall use the CUSIP number in notices of redemption or
exchange as a convenience to Holders; provided that any such notice may state
--------
that no representation is made as to the correctness or accuracy of the CUSIP
number printed in the notice or on the Securities, and that reliance may be
placed only on the other identification numbers printed on the Securities.
SECTION 2.14. Deposit of Moneys.
-----------------
Prior to the close of business of the Paying Agent on the Business Day
next prior to each Interest Payment Date and the Final Maturity Date, the
Company shall deliver by wire transfer to the Paying Agent in immediately
available funds money sufficient to make cash payments due on such Interest
Payment Date or the Final Maturity Date, as the case may be, in a timely manner
which permits the Paying Agent to remit payment to the Holders on such Interest
Payment Date or the Final Maturity Date, as the case may be.
-39-
SECTION 2.15. Book-Entry Provisions for Global Securities.
-------------------------------------------
(a) The Global Securities initially shall (i) be registered in
the name of the Depository or the nominee of such Depository, (ii) be delivered
to the Trustee as custodian for such Depository and (iii) bear legends as set
forth in Exhibit C-2.
-----------
Members of, or participants in, the Depository
("Participants") shall have no rights under this Indenture with respect to any
------------
Global Security held on their behalf by the Depository, or the Trustee as its
custodian, or under the Global Security, and the Depository may be treated by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of the Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Trustee or any agent of the Company or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depository
or impair, as between the Depository and Participants, the operation of
customary practices governing the exercise of the rights of a Holder of any
Security.
(b) Transfers of Global Securities shall be limited to
transfers in whole, but not in part, to the Depository, its successors or their
respective nominees. Interests of beneficial owners in the Global Securities may
be transferred or exchanged for Physical Securities in accordance with the rules
and procedures of the Depository and the provisions of Section 2.16. In
addition, Physical Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in Global Securities if (i) the
Depository either notifies the Company that it is unwilling or unable to
continue as Depository for any Global Security and a successor depositary is
not appointed by the Company within 90 days of such notice or has ceased to be a
clearing agency registered under the Exchange Act, (ii) the Company executes and
delivers an Officers' Certificate to the Trustee and the Registrar stating that
the Company elects to cause such exchange or (iii) an Event of Default has
occurred and is continuing and the Registrar has received a request from the
Depository to issue Physical Securities.
(c) In connection with the transfer of Global Securities as an
entirety to beneficial owners pursuant to paragraph (b) of this Section 2.15,
the Global Securities shall be deemed to be surrendered to the Trustee for
cancellation, and
-40-
the Company shall execute, and the Trustee shall upon written instructions from
the Company authenticate and deliver, to each beneficial owner identified by the
Depository in exchange for its beneficial interest in the Global Securities, an
equal aggregate principal amount of Physical Securities of authorized
denominations.
(d) Any Physical Security constituting a Restricted Security
delivered in exchange for an interest in a Global Security pursuant to paragraph
(b) or (c) of this Section 2.15 shall, except as otherwise provided by Section
2.16, bear the Private Placement Legend.
(e) The Holder of any Global Security may grant proxies and
otherwise authorize any Person, including Participants and Persons that may hold
interests through Participants, to take any action which a Holder is entitled to
take under this Indenture or the Securities.
SECTION 2.16. Registration of Transfers and Exchanges.
---------------------------------------
(a) Transfer and Exchange of Physical Securities. When
--------------------------------------------
Physical Securities are presented to the Registrar with a request:
(i) to register the transfer of the Physical Securities; or
(ii) to exchange such Physical Securities for an equal number
of Physical Securities of other authorized denominations,
the Registrar shall register the transfer or make the exchange as requested if
the requirements under this Indenture as set forth in this Section 2.16 for such
transactions are met; provided, however, that the Physical Securities presented
-------- -------
or surrendered for registration of transfer or exchange:
(I) shall be duly endorsed or accompanied by a written
instrument of transfer in form satisfactory to the Registrar or
co-Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing and accompanied by reasonable assurance that each
necessary endorsement or instrument is genuine and authorized; and
(II) in the case of Physical Securities the offer and sale of
which have not been registered under the Securities Act, such Physical
Securities shall be accompanied by
-41-
an Opinion of Counsel addressed to the Registrar to the effect that
such transfer and exchange is in compliance with applicable securities
law and, in the sole discretion of the Company, by the following
additional information and documents, as applicable:
(A) if such Physical Security is being delivered to
the Registrar by a holder for registration in the name of such
holder, without transfer, a certification from such holder to
that effect (in substantially the form of Exhibit D hereto);
---------
or
(B) if such Physical Security is being transferred to
a Qualified Institutional Buyer in accordance with Rule 144A,
a certification to that effect (in substantially the form of
Exhibit D hereto); or
---------
(C) if such Physical Security is being transferred to
an Institutional Accredited Investor, delivery of a
certification to that effect (in substantially the form of
Exhibit D hereto) and a Transferee Certificate for
---------
Institutional Accredited Investors in substantially the form
of Exhibit E hereto; or
---------
(D) if such Physical Security is being transferred in
reliance on Regulation S, delivery of a certification to that
effect (in substantially the form of Exhibit D hereto) and a
---------
Transferee Certificate for Regulation S Transfers in
substantially the form of Exhibit F hereto and an Opinion of
---------
Counsel reasonably satisfactory to the Company to the effect
that such transfer is in compliance with the Securities Act;
or
(E) if such Physical Security is being transferred in
reliance on Rule 144 under the Securities Act, delivery of a
certification to that effect (in substantially the form of
Exhibit D hereto) and an Opinion of Counsel reasonably
---------
satisfactory to the Company to the effect that such transfer
is in compliance with the Securities Act; or
(F) if such Physical Security is being transferred in
reliance on another exemption from the registration
requirements of the Securities Act, a certification to that
effect (in substantially the form of Exhibit D hereto) and an
---------
Opinion of Counsel reasonably satisfactory to the Company to
the effect
-42-
that such transfer is in compliance with the Securities Act.
(b) Restrictions on Transfer of a Physical Security for a
-----------------------------------------------------
Beneficial Interest in a Global Security. A Physical Security may not be
----------------------------------------
exchanged for a beneficial interest in a Global Security except upon
satisfaction of the requirements set forth below. Upon receipt by the Registrar
of a Physical Security, duly endorsed or accompanied by appropriate instruments
of transfer, in form satisfactory to the Registrar, together with:
(A) (i) if such Physical Security is being transferred to a
Qualified Institutional Buyer in accordance with Rule 144A, a
certification to that effect (in substantially the form of Exhibit D
---------
hereto) or (ii) if such Physical Security is being transferred in
reliance on Regulation S, delivery of a certification to that effect
(in substantially the form of Exhibit D hereto) and a Transferee
---------
Certificate for Regulation S Transfers in substantially the form of
Exhibit F hereto and an Opinion of Counsel reasonably satisfactory to
---------
the Company to the effect that such transfer is in compliance with the
Securities Act; and
(B) written instructions directing the Registrar to make, or
to direct the Depository to make, an endorsement on the applicable
Global Security to reflect an increase in the aggregate amount of the
Securities represented by the Global Security,
then the Registrar shall cancel such Physical Security and cause, or direct the
Depository to cause, in accordance with the standing instructions and procedures
existing between the Depository and the Registrar, the number of Securities
represented by the applicable Global Security to be increased accordingly. If no
applicable Global Security is then outstanding, the Company shall issue and the
Trustee shall upon written instructions from the Company authenticate a new
Global Security in the appropriate amount.
(c) Transfer and Exchange of Global Securities. The transfer
------------------------------------------
and exchange of Global Securities or beneficial interests therein shall be
effected through the Depository, in accordance with this Indenture (including
the restrictions on transfer set forth herein) and the procedures of the
Depository therefor.
-43-
Prior to or on the expiration of the "distribution compliance
period" (as defined in Regulation S), beneficial interests in any Regulation S
Global Security may only be held through Xxxxxx Guaranty Trust Company of New
York, Brussels Office, as operator of the Euroclear System ("Euroclear") or
---------
Clearstream Banking, S.A. ("Clearstream") (as indirect Participants in the
-----------
Depositary) or another agent member of Euroclear and Clearstream acting for and
on behalf of them, unless exchanged for interests in a Rule 144A Global Security
in accordance with the certification requirements hereof. During such
distribution compliance period, interests in any Regulation S Global Security
may be exchanged for or transferred to interests in the Rule 144A Global
Security or for or to Physical Securities only in accordance with the
requirements under this Indenture as set forth in this Section 2.16. After the
expiration of such distribution compliance period, beneficial interests in any
Regulation S Global Security may be transferred without requiring certification
as set forth in this Section 2.16 or any additional certification.
(d) Transfer of a Beneficial Interest in a Global Security for
----------------------------------------------------------
a Physical Security.
-------------------
(i) If required to do so pursuant to applicable law or
regulation, any Person having a beneficial interest in a Global
Security may upon request exchange such beneficial interest for a
Physical Security. Upon receipt by the Registrar of written
instructions or such other form of instructions as is customary for the
Depository from the Depository or its nominee on behalf of any Person
having a beneficial interest in a Global Security and upon receipt by
the Trustee of a written order or such other form of instructions as is
customary for the Depository or the Person designated by the Depository
as having such a beneficial interest containing registration
instructions and, in the case of any such transfer or exchange of a
beneficial interest in Securities the offer and sale of which have not
been registered under the Securities Act, the following additional
information and documents:
(A) if such beneficial interest is being transferred
to the Person designated by the Depository as being the
beneficial owner, a certification from such Person to that
effect (in substantially the form of Exhibit D hereto); or
---------
(B) if such beneficial interest is being transferred
to a Qualified Institutional Buyer in accor-
-44-
dance with Rule 144A, a certification to that effect (in
substantially the form of Exhibit D hereto); or
---------
(C) if such beneficial interest is being transferred
to an Institutional Accredited Investor, delivery of a
certification to that effect (in substantially the form of
Exhibit D hereto) and a Certificate for Institutional
---------
Accredited Investors in substantially the form of Exhibit E
---------
hereto; or
(D) if such beneficial interest is being transferred
in reliance on Regulation S, delivery of a certification to
that effect (in substantially the form of Exhibit D hereto)
---------
and a Transferee Certificate for Regulation S Transfers in
substantially the form of Exhibit F hereto and an Opinion of
---------
Counsel reasonably satisfactory to the Company to the effect
that such transfer is in compliance with the Securities Act;
or
(E) if such beneficial interest is being transferred
in reliance on Rule 144 under the Securities Act, delivery of
a certification to that effect (in substantially the form of
Exhibit D hereto) and an Opinion of Counsel reasonably
---------
satisfactory to the Company to the effect that such transfer
is in compliance with the Securities Act; or
(F) if such beneficial interest is being transferred
in reliance on another exemption from the registration
requirements of the Securities Act, a certification to that
effect (in substantially the form of Exhibit D hereto) and an
---------
Opinion of Counsel reasonably satisfactory to the Company to
the effect that such transfer is in compliance with the
Securities Act,
then the Registrar will cause, in accordance with the standing
instructions and procedures existing between the Depository and the
Registrar, the aggregate amount of the Global Security to be reduced
and, following such reduction, the Company will execute and, upon
receipt of an authentication order in the form of an Officers'
Certificate, the Trustee will authenticate and deliver to the
transferee a Physical Security.
(ii) Securities issued in exchange for a beneficial interest
in a Global Security pursuant to this Sec-
-45-
tion 2.16(d) shall be registered in such names and in such authorized
denominations as the Depository, pursuant to instructions from its
direct or indirect participants or otherwise, shall instruct the
Registrar in writing. The Registrar shall make such Physical Securities
available for delivery to the Persons in whose names such Physical
Securities are so registered.
(e) Restrictions on Transfer and Exchange of Global
-----------------------------------------------
Securities. Notwithstanding any other provisions of this Indenture, a Global
----------
Security may not be transferred as a whole except by the Depository to a nominee
of the Depository or by a nominee of the Depository to the Depository or another
nominee of the Depository or by the Depository or any such nominee to a
successor Depository or a nominee of such successor Depository.
(f) Private Placement Legend. Upon the transfer, exchange or
------------------------
replacement of Securities not bearing the Private Placement Legend, the
Registrar shall deliver Securities that do not bear the Private Placement
Legend. Upon the transfer, exchange or replacement of Securities bearing the
Private Placement Legend, the Registrar shall deliver only Securities that bear
the Private Placement Legend unless, and the Trustee is hereby authorized to
deliver Securities without the Private Placement Legend if, (i) there is
delivered to the Trustee an Opinion of Counsel reasonably satisfactory to the
Company and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with the
provisions of the Securities Act or (ii) such Security has been sold pursuant to
an effective registration statement under the Securities Act.
(g) General. By its acceptance of any Security bearing the
-------
Private Placement Legend, each Holder of such a Security acknowledges the
restrictions on transfer of such Security set forth in this Indenture and in the
Private Placement Legend and agrees that it will transfer such Security only as
provided in this Indenture.
The Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.15 or this Section
2.16 in accordance with its customary procedures. The Company shall have the
right to inspect and make copies of all such letters, notices or other written
communications at any reasonable time upon the giving of reasonable written
notice to the Registrar.
-00-
Xxx Xxxxxxxxx and the Trustee shall have no obligation or duty
to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Security (including any transfers between or
among Participants or beneficial owners of interests in any Global Security)
other than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.
ARTICLE THREE
REDEMPTION
SECTION 3.01. Notices to Trustee.
------------------
If the Company elects to redeem Securities pursuant to
Paragraph 5 or Paragraph 6 of the Securities, it shall notify the Trustee in
writing of the Redemption Date, the Redemption Price and the principal amount of
Securities to be redeemed. The Company shall give notice of redemption to the
Trustee at least 45 days but not more than 60 days before the Redemption Date
(unless a shorter notice shall be agreed to by the Trustee in writing), together
with an Officers' Certificate stating that such redemption will comply with the
conditions contained herein.
SECTION 3.02. Selection of Securities To Be Redeemed.
--------------------------------------
If fewer than all of the Securities are to be redeemed at any
time, the Trustee shall select the Securities to be redeemed in compliance with
the requirements of the principal national securities exchange, if any, on which
the Securities are listed or, if the Securities are not then listed on a
national securities exchange, on a pro rata basis, by lot or by such method as
--- ----
the Trustee shall deem fair and appropriate; provided, however, that (i) no
-------- -------
Securities of a principal amount of $1,000 or less shall be redeemed in part and
(ii) if the Securities are redeemed pursuant to Paragraph 6 of the Securities,
the Securities shall be redeemed solely on a pro rata basis or on as nearly a
--- ----
pro rata basis as is practicable (subject to the procedures of the Depository).
--- ----
If the Securities are listed on any national securities exchange, the Company
shall
-47-
notify the Trustee in writing of the requirements of such exchange in respect of
any redemption. The Trustee shall make the selection from the Securities
outstanding and not previously called for redemption and shall promptly notify
the Company in writing of the Securities selected for redemption and, in the
case of any Security selected for partial redemption, the principal amount
thereof to be redeemed. The Trustee may select for redemption portions (equal to
$1,000 or any integral multiple thereof) of the principal of Securities that
have denominations larger than $1,000. Provisions of this Indenture that apply
to Securities called for redemption also apply to portions of Securities called
for redemption.
SECTION 3.03. Notice of Redemption.
--------------------
At least 30 days but not more than 60 days before a Redemption
Date, the Company shall mail or cause to be mailed a notice of redemption by
first-class mail, postage prepaid, to each Holder whose Securities are to be
redeemed. At the Company's written request delivered at least 15 days prior to
the proposed date of such mailing (unless a shorter notice shall be acceptable
to the Trustee), the Trustee shall give the notice of redemption in the
Company's name and at the Company's expense. Each notice for redemption shall
identify the Securities to be redeemed (including CUSIP numbers, if any) and
shall state:
(1) the Redemption Date;
(2) the Redemption Price and the amount of accrued interest,
if any, to be paid;
(3) the name and address of the Paying Agent;
(4) that Securities called for redemption must be surrendered
to the Paying Agent to collect the Redemption Price plus accrued
interest, if any;
(5) that, unless the Company defaults in making the redemption
payment, interest on Securities called for redemption ceases to accrue
on and after the Redemption Date, and the only remaining right of the
Holders of such Securities is to receive payment of the Redemption
Price and accrued interest, if any, to the Redemption Date upon
surrender to the Paying Agent of the Securities redeemed;
(6) if any Security is being redeemed in part, the portion of
the principal amount of such Security to be re-
-48-
deemed and that, after the Redemption Date, and upon surrender of such
Security, a new Security or Securities in aggregate principal amount
equal to the unredeemed portion thereof will be issued;
(7) if fewer than all the Securities are to be redeemed, the
identification of the particular Securities (or portion thereof) to be
redeemed, as well as the aggregate principal amount of Securities to be
redeemed and the aggregate principal amount of Securities to be
outstanding after such partial redemption; and
(8) the paragraph of the Securities pursuant to which the
Securities are to be redeemed.
SECTION 3.04. Effect of Notice of Redemption.
------------------------------
Once notice of redemption is mailed in accordance with Section
3.03, Securities called for redemption become due and payable on the Redemption
Date and at the Redemption Price plus accrued interest, if any. Upon surrender
to the Paying Agent, such Securities called for redemption shall be paid at the
Redemption Price (which shall include accrued interest thereon to the Redemption
Date), but installments of interest, the maturity of which is on or prior to the
Redemption Date, shall be payable to Holders of record at the close of business
on the relevant Record Dates.
SECTION 3.05. Deposit of Redemption Price.
---------------------------
Prior to 11:00 a.m. New York City time on the Redemption Date,
the Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to
pay the Redemption Price plus accrued interest, if any, of all Securities to be
redeemed on that date.
If the Company complies with the preceding paragraph, then,
unless the Company defaults in the payment of such Redemption Price plus accrued
interest, if any, interest on the Securities to be redeemed will cease to accrue
on and after the applicable Redemption Date, whether or not such Securities are
presented for payment.
SECTION 3.06. Securities Redeemed in Part.
---------------------------
Upon surrender of a Security that is to be redeemed in part,
the Trustee shall authenticate for the Holder a new
-49-
Security or Securities equal in principal amount to the unredeemed portion of
the Security surrendered.
ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Securities.
---------------------
The Company shall pay the principal of and interest on the
Securities in the manner provided in the Securities. An installment of principal
of or interest on the Securities shall be considered paid on the date it is due
if the Trustee or Paying Agent holds on that date U.S. Legal Tender designated
for and sufficient to pay the installment.
The Company shall pay, to the extent such payments are lawful,
interest on overdue principal and it shall pay interest on overdue installments
of interest (without regard to any applicable grace periods) from time to time
on demand at the rate borne by the Securities plus 2% per annum. Interest will
--- -----
be computed on the basis of a 360-day year comprised of twelve 30-day months.
SECTION 4.02. Maintenance of Office or Agency.
-------------------------------
The Company shall maintain in the Borough of Manhattan, The
City of New York, the office or agency required under Section 2.03. The Company
shall give prompt written notice to the Trustee of the location, and any change
in the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in Section
11.02. The Company hereby initially designates Computershare Trust Company of
New York, Wall Street Plaza, 00 Xxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 as the New
York Presenting Agent in the Borough of Manhattan, The City of New York.
SECTION 4.03. Limitation on Incurrence of Additional Indebtedness.
---------------------------------------------------
(a) The Company will not, and will not permit any of the
Restricted Subsidiaries to, directly or indirectly, create, incur, issue,
assume, guarantee, acquire, become liable, con-
-50-
tingently or otherwise, with respect to, or otherwise become responsible for
payment of (collectively, "incur") any Indebtedness (other than Permitted
-----
Indebtedness); provided, however, that if no Default or Event of Default shall
-------- -------
have occurred and be continuing at the time of or as a consequence of the
incurrence of any such Indebtedness, the Company, any Guarantor and any Accounts
Receivable Entity that is a Domestic Restricted Subsidiary may incur
Indebtedness (including, without limitation, Acquired Indebtedness) if on the
date of the incurrence of such Indebtedness, after giving effect to the
incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company
would be greater than 2.0 to 1.0.
No Indebtedness incurred pursuant to the Consolidated Fixed
Charge Coverage Ratio tests of the preceding paragraph (including, without
limitation, Indebtedness under the Credit Agreement) shall reduce the amount of
Indebtedness which may be incurred pursuant to any clause of the definition of
Permitted Indebtedness (including, without limitation, Indebtedness under the
Credit Agreement pursuant to clause (2) of the definition of "Permitted
Indebtedness").
Indebtedness of a Person existing at the time such Person
becomes a Restricted Subsidiary or which is secured by a Lien on an asset
acquired by the Company or a Restricted Subsidiary (whether or not such
Indebtedness is assumed by the acquiring Person) shall be deemed incurred at the
time the Person becomes a Restricted Subsidiary or at the time of the asset
acquisition, as the case may be.
(b) The Company will not, and will not permit any Guarantor
to, directly or indirectly, incur any Indebtedness which by its terms (or by the
terms of any agreement governing such Indebtedness) is subordinated to any other
Indebtedness of the Company or such Guarantor, as the case may be, unless such
Indebtedness is also by its terms (or by the terms of any agreement governing
such Indebtedness) made expressly subordinate to the Securities or the Guarantee
of such Guarantor to the same extent and in the same manner as such Indebtedness
is subordinated to other Indebtedness of the Company or such Guarantor, as the
case may be.
SECTION 4.04. Limitation on Restricted Payments.
---------------------------------
The Company will not, and will not cause or permit any of the
Restricted Subsidiaries to, directly or indirectly:
-51-
(a) declare or pay any dividend or make any distribution
(other than dividends or distributions payable in Qualified Capital
Stock of the Company or options, warrants and other rights to purchase
the same) on or in respect of shares of its Capital Stock to holders of
such Capital Stock (including by means of a Person (including an
Unrestricted Subsidiary) making such a payment with the proceeds of an
Investment made by the Company or any Restricted Subsidiary);
(b) purchase, redeem or otherwise acquire or retire for
value any Capital Stock of the Company or any Restricted Subsidiary or
any warrants, rights or options to purchase or acquire shares of any
class of such Capital Stock (including by means of a Person (including
an Unrestricted Subsidiary) making such a payment with the proceeds of
an Investment made by the Company or any Restricted Subsidiary);
(c) 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
(d) make any Investment (other than Permitted Investments)
(each of the foregoing actions set forth in clauses (a), (b), (c) and (d) being
referred to as a "Restricted Payment"), if at the time of such Restricted
------------------
Payment or immediately after giving effect thereto:
(i) a Default or an Event of Default shall have occurred and
be continuing;
(ii) the Company is not able to incur at least $1.00 of
additional Indebtedness (other than Permitted Indebtedness) in
compliance with Section 4.03; or
(iii) the aggregate amount of Restricted Payments (including
such proposed Restricted Payment) made after the Issue Date (the amount
expended for such purpose, if other than in cash, being the Fair Market
Value of such property as determined reasonably and in good faith by
the Board of Directors of the Company) shall exceed the sum of:
(v) $5.0 million; plus
----
-52-
(w) 50% of the cumulative Consolidated Net Income (or
if cumulative Consolidated Net Income shall be a loss, minus
100% of such loss) of the Company earned during the period
beginning on the first day of the fiscal quarter during which
the Issue Date occurs and through the end of the most recent
fiscal quarter for which financial statements are available
prior to the date such Restricted Payment occurs (the
"Reference Date") (treating such period as a single accounting
--------------
period); plus
----
(x) 100% of the Fair Market Value of the net proceeds
received by the Company from any Person (other than a
Subsidiary of the Company) from the issuance and sale
subsequent to the Issue Date and on or prior to the Reference
Date of Qualified Capital Stock of the Company (excluding any
net proceeds from a Public Equity Offering to the extent used
to redeem Securities); plus
----
(y) without duplication of any amounts included in
clause (iii)(x) above, 100% of the Fair Market Value of the
net proceeds of any contribution to the common equity capital
of the Company received by the Company from a holder of the
Company's Capital Stock (excluding any net proceeds from a
Public Equity Offering to the extent used to redeem the
Securities) subsequent to the Issue Date and on or prior to
the Reference Date; plus
----
(z) upon any Revocation of an Unrestricted
Subsidiary, an amount equal to the lesser of (A) the sum of
the Fair Market Value of the Capital Stock of an Unrestricted
Subsidiary owned by the Company and/or the Restricted
Subsidiaries and the aggregate amount of all Indebtedness of
such Unrestricted Subsidiary owed to the Company and each
Restricted Subsidiary on the date of Revocation of such
Unrestricted Subsidiary as an Unrestricted Subsidiary in
accordance with Section 4.20 or (B) the Designation Amount
with respect to such Unrestricted Subsidiary on the date of
the Designation of such Subsidiary as an Unrestricted
Subsidiary in accordance with Section 4.20.
Notwithstanding the foregoing, the provisions set forth in the
immediately preceding paragraph do not prohibit:
-53-
(1) the payment of any dividend within 60 days after the date
of declaration of such dividend if the dividend would have been
permitted on the date of declaration;
(2) the acquisition of any shares of Capital Stock of the
Company, either (A) solely in exchange for shares of Qualified Capital
Stock of the Company or (B) through the application of net proceeds of
a substantially concurrent sale for cash (other than to a Subsidiary of
the Company) of shares of Qualified Capital Stock of the Company;
(3) the acquisition of any shares of Disqualified Capital
Stock of the Company, either (A) solely in exchange for shares of
Disqualified Capital Stock of the Company or (B) through the
application of net proceeds of a substantially concurrent sale for cash
(other than to a Subsidiary of the Company) of shares of Disqualified
Capital Stock of the Company, in each case incurred in compliance with
Section 4.03;
(4) the payment of principal or the purchase, redemption,
defeasance or other acquisition or retirement for value of any
Subordinated Indebtedness, either (A) solely in exchange for shares of
Qualified Capital Stock of the Company or (B) through the application
of net proceeds of a substantially concurrent sale for cash (other than
to a Subsidiary of the Company) of (i) shares of Qualified Capital
Stock of the Company or (ii) Refinancing Indebtedness;
(5) so long as no Default or Event of Default shall have
occurred and be continuing, repurchases of Capital Stock (or rights or
options therefor) of the Company from officers, directors, employees or
consultants pursuant to equity ownership or compensation plans or
stockholders agreements not to exceed $2.0 million per annum; and
--- -----
(6) dividends and distributions paid on Common Stock of a
Restricted Subsidiary on a pro rata basis.
--- ----
In determining the aggregate amount of Restricted Payments
made subsequent to the Issue Date in accordance with clause (iii) of the first
paragraph of this Section 4.04, amounts expended pursuant to clauses (1), (2),
4(A), 4(B)(i) and (5) above shall be included in such calculation.
-54-
SECTION 4.05. Corporate Existence.
-------------------
Except as otherwise permitted by Article Five, the Company
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and the corporate, partnership or other
existence of each of the Restricted Subsidiaries in accordance with the
respective organizational documents of each Restricted Subsidiary (as the same
may be amended from time to time) and the rights (charter and statutory) and
material franchises of the Company and each of its Restricted Subsidiaries;
provided, however, that the Company shall not be required to preserve any such
-------- -------
right or franchise, or the corporate, partnership or other existence of any
Restricted Subsidiary, if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Restricted Subsidiaries, taken as a whole, and
that the loss thereof is not, and will not be, adverse in any material respect
to the Holders.
SECTION 4.06. Payment of Taxes and Other Claims.
---------------------------------
The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges levied or imposed upon it or any of the
Restricted Subsidiaries or upon the income, profits or property of it or any of
the Restricted Subsidiaries and (ii) all lawful claims for labor, materials and
supplies that, in each case, if unpaid, might by law become a material liability
or Lien (other than a Permitted Lien) upon the property of it or any of the
Restricted Subsidiaries; provided, however, that the Company shall not be
-------- -------
required to pay or discharge or cause to be paid or discharged any such tax,
assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings and for which appropriate
provision has been made.
SECTION 4.07. Maintenance of Properties and Insurance.
---------------------------------------
(1) The Company shall cause all material properties owned by
or leased by it or any of the Restricted Subsidiaries used in the conduct of its
business or the business of any of the Restricted Subsidiaries to be maintained
and kept in normal condition, repair and working order (reasonable wear and tear
excepted) and shall cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in its judgment may
be necessary, so that the business car-
-55-
ried on in connection therewith may be properly and advantageously conducted at
all times; provided, however, that nothing in this Section 4.07(1) shall prevent
-------- -------
the Company or any of the Restricted Subsidiaries from discontinuing the use,
operation or maintenance of any of such properties, or disposing of any of them,
if such discontinuance or disposal is, in the judgment of the Board of Directors
of the Company or of the Board of Directors of any Restricted Subsidiary, or of
an officer (or other agent employed by the Company or of any of the Restricted
Subsidiaries) of the Company or any of its Restricted Subsidiaries having
managerial responsibility for any such property, desirable in the conduct of the
business of the Company or any Restricted Subsidiary, and if such discontinuance
or disposal is not adverse in any material respect to the Holders.
(2) The Company shall maintain, and shall cause the Restricted
Subsidiaries to maintain, insurance with responsible carriers against such risks
and in such amounts, and with such deductibles, retentions, self-insured amounts
and co-insurance provisions, as are customarily carried by similar businesses of
similar size, including property and casualty loss, workers' compensation and
interruption of business insurance; provided, however, that nothing in this
-------- -------
Section 4.07(2) shall prevent the Company or any of the Restricted Subsidiaries
from discontinuing any insurance, or modifying any such deductibles, retentions,
self-insured amounts or co-insurance provisions, if such discontinuance or
modification is, in the judgment of the Board of Directors of the Company or of
the Board of Directors of any Restricted Subsidiary, or of an officer (or other
agent employed by the Company or of any of the Restricted Subsidiaries) of the
Company or any of its Restricted Subsidiaries having managerial responsibility
for any such insurance, desirable in the conduct of the business of the Company
or any Restricted Subsidiary, and if such discontinuance or modification is not
adverse in any material respect to the Holders.
SECTION 4.08. Compliance Certificate; Notice of Default.
-----------------------------------------
(1) The Company shall deliver to the Trustee, within 100 days
after the close of each fiscal year, an Officers' Certificate stating that a
review of the activities of the Company has been made under the supervision of
the signing officers with a view to determining whether it has kept, observed,
performed and fulfilled its obligations under this Indenture and further
stating, as to each such Officer signing such certificate, that to the best of
his knowledge the Company during such preceding fiscal year has kept, observed,
performed and fulfilled each and every such covenant and no Default or Event of
-56-
Default occurred during such year and at the date of such certificate no Default
or Event of Default has occurred and is continuing or, if such signers do know
of such Default or Event of Default, the certificate shall describe its status
with particularity. The Officers' Certificate shall also notify the Trustee
should the Company elect to change the manner in which it fixes its fiscal year
end.
(2) The annual financial statements delivered pursuant to Section 4.10
shall be accompanied by a written report of the Company's independent
accountants (who shall be a firm of established national reputation) that in
conducting their audit of such financial statements nothing has come to their
attention that would lead them to believe that the Company has violated any
provisions of Article Four, Five or Six of this Indenture insofar as they relate
to accounting matters or, if any such violation has occurred, specifying the
nature and period of existence thereof, it being understood that such
accountants shall not be liable directly or indirectly to any Person for any
failure to obtain knowledge of any such violation.
(3) The Company shall deliver to the Trustee, within 10 days after
becoming aware of any Default or Event of Default that has occurred, an
Officers' Certificate specifying the Default or Event of Default and describing
its status with particularity.
SECTION 4.09. Compliance with Laws.
--------------------
The Company shall comply, and shall cause each of the Restricted
Subsidiaries to comply, with all applicable statutes, rules, regulations, orders
and restrictions of the United States of America, all states and municipalities
thereof, and of any governmental department, commission, board, regulatory
authority, bureau, agency and instrumentality of the foregoing, in respect of
the conduct of their respective businesses and the ownership of their respective
properties, except for such noncompliances as would not in the aggregate have a
material adverse effect on the financial condition or results of operations of
the Company and the Restricted Subsidiaries taken as a whole.
SECTION 4.10. Reports to Holders.
------------------
(1) The Company will file with the Commission all information,
documents and reports to be filed with the Commission pursuant to Section 13 or
15(d) of the Exchange Act, whether or not the Company is subject to such filing
require-
-57-
ments so long as the Commission will accept such filings. The Company (at its
own expense) will deliver to the Trustee within 15 days after it files them with
the Commission, copies of the quarterly and annual reports and the information,
documents and other reports, if any, which the Company is required to file with
the Commission pursuant to Section 13 or 15(d) of the Exchange Act. The Company
shall also comply with the provisions of TIA (S) 314(a).
(2) At the Company's expense, regardless of whether the Company is
required to furnish such reports to its stockholders pursuant to the Exchange
Act, the Company shall cause its consolidated financial statements, comparable
to those which would have been required to appear in annual or quarterly
reports, to be delivered to the Trustee. The Company will also make such reports
available to prospective purchasers of the Securities, securities analysts and
broker-dealers upon their request.
(3) For so long as any of the Securities remain outstanding, the
Company will make available to any prospective purchaser of the Securities or
beneficial owner of the Securities in connection with any sale thereof the
information required by Rule 144A(d)(4) under the Securities Act during any
period when the Company is not subject to Section 13 or 15(d) under the Exchange
Act.
Delivery of such reports, information and documents to the Trustee
pursuant to this Section 4.10 is for informational purposes only and the
Trustee's receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained
therein, including the Company's compliance with any of its covenants hereunder
(as to which the Trustee is entitled to rely exclusively on Officers'
Certificates).
SECTION 4.11. Waiver of Stay, Extension or Usury Laws.
---------------------------------------
The Company covenants (to the extent that it may lawfully do so) that
it shall not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay or extension law or any usury law
or other law that would prohibit or forgive the Company from paying all or any
portion of the principal of and/or interest on the Securities as contemplated
herein, wherever enacted, now or at any time hereafter in force, or which may
affect the covenants or the performance of this Indenture, and (to the extent
that it may lawfully do so) the Company hereby expressly waives all
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benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.
SECTION 4.12. Limitation on Asset Sales.
-------------------------
The Company will not, and will not permit any of the Restricted
Subsidiaries to, consummate an Asset Sale unless: (i) the Company or the
applicable Restricted Subsidiary, as the case may be, receives consideration at
the time of such Asset Sale at least equal to the Fair Market Value of the
assets sold or otherwise disposed of; (ii) at least 75% of the consideration
received by the Company or the Restricted Subsidiary, as the case may be, from
such Asset Sale shall be in the form of cash or Cash Equivalents and is received
at the time of such disposition; and (iii) upon the consummation of an Asset
Sale, the Company shall apply, or cause such Restricted Subsidiary to apply, the
Net Cash Proceeds relating to such Asset Sale within 365 days after receipt
thereof either (A) to repay any Indebtedness under the Credit Agreement and, in
the case of any such Indebtedness under any revolving credit facility, effect a
permanent reduction in the availability under such revolving credit facility,
(B) to acquire Replacement Assets, or (C) a combination of prepayment and
investment permitted by the foregoing clauses (iii)(A) and (iii)(B).
On the 366th day after an Asset Sale or such earlier date, if any, as
the Board of Directors of the Company or of such Restricted Subsidiary
determines not to apply the Net Cash Proceeds relating to such Asset Sale as set
forth in clauses (iii)(A), (iii)(B) and (iii)(C) of the preceding paragraph
(each, a "Net Proceeds Offer Trigger Date"), such aggregate amount of Net Cash
-------------------------------
Proceeds which have not been applied on or before such Net Proceeds Offer
Trigger Date as permitted in clauses (iii)(A), (iii)(B) and (iii)(C) of the
preceding paragraph (each a "Net Proceeds Offer Amount") shall be applied by the
-------------------------
Company to make an offer to purchase (the "Net Proceeds Offer") on a date (the
------------------
"Net Proceeds Offer Payment Date") not less than 30 nor more than 60 days
-------------------------------
following the applicable Net Proceeds Offer Trigger Date, from all Holders on a
pro rata basis, that principal amount of Securities equal to the Net Proceeds
--- ----
Offer Amount at a price equal to 100% of the principal amount of the Securities
to be purchased, plus accrued and unpaid interest, if any, thereon to the date
of purchase; provided, however, that if at any time any non-cash consideration
-------- -------
received by the Company or any Restricted Subsidiary, as the
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case may be, in connection with any Asset Sale is converted into or sold or
otherwise disposed of for cash (other than interest received with respect to any
such non-cash consideration) or Cash Equivalents, then such conversion or
disposition shall be deemed to constitute an Asset Sale hereunder and the Net
Cash Proceeds thereof shall be applied in accordance with this Section 4.12.
The Company may defer the Net Proceeds Offer until there is an
aggregate unutilized Net Proceeds Offer Amount equal to or in excess of $20.0
million resulting from one or more Asset Sales or deemed Asset Sales (at which
time, the entire unutilized Net Proceeds Offer Amount, and not just the amount
in excess of $20.0 million, shall be applied as required pursuant to this
paragraph). The first such date the aggregate unutilized Net Proceeds Offer
Amount is equal to or in excess of $20.0 million shall be treated for this
purpose as the Net Proceeds Offer Trigger Date.
In the event of the transfer of substantially all (but not all) of the
property and assets of the Company and the Restricted Subsidiaries after the
Issue Date as an entirety to a Person in a transaction permitted under Section
5.01, the successor corporation shall be deemed to have sold the properties and
assets of the Company and the Restricted Subsidiaries not so transferred for
purposes of this Section 4.12, and shall comply with the provisions of this
Section 4.12 with respect to such deemed sale as if it were an Asset Sale. In
addition, the Fair Market Value of such properties and assets of the Company or
the Restricted Subsidiaries deemed to be sold shall be deemed to be Net Cash
Proceeds for purposes of this Section 4.12.
Each Net Proceeds Offer will be mailed or caused to be mailed, by first
class mail, by the Company within 30 days following the Net Proceeds Offer
Trigger Date to all record Holders as shown on the register of Holders, with a
copy to the Trustee. The notice shall contain all instructions and materials
necessary to enable such Holders to tender Securities pursuant to the Net
Proceeds Offer and shall state the following terms:
(1) that the Net Proceeds Offer is being made pursuant to
this Section 4.12 and that the Holders may elect to tender their Securities
in whole or in part in integral multiples of $1,000 in exchange for cash;
provided, however, that if the aggregate principal amount of Securities
-------- -------
properly tendered in a Net Proceeds Offer exceeds the Net
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Proceeds Offer Amount, Securities of tendering Holders will be purchased on
a pro rata basis (based on amounts tendered);
--- ----
(2) the purchase price (including the amount of accrued interest, if
any) and the Net Proceeds Offer Payment Date (which shall be at least 20
Business Days from the date of mailing of notice of such Net Proceeds Offer,
or such longer period as required by law);
(3) that any Security not tendered will continue to accrue interest;
(4) that, unless the Company defaults in making payment therefor, any
Security accepted for payment pursuant to the Net Proceeds Offer shall cease
to accrue interest after the Net Proceeds Offer Payment Date;
(5) that Holders electing to have a Security purchased pursuant to a
Net Proceeds Offer will be required to surrender the Security, with the form
entitled "Option of Holder to Elect Purchase" on the reverse of the Security
completed, to the Paying Agent at the address specified in the notice prior
to the close of business on the Net Proceeds Offer Payment Date;
(6) that Holders will be entitled to withdraw their election if the
Paying Agent receives, not later than the Business Day prior to the Net
Proceeds Offer Payment Date, a facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the Security the
Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Security purchased; and
(7) that Holders whose Securities are purchased only in part will be
issued new Securities in a principal amount equal to the unpurchased portion
of the Securities surrendered.
On or before the Net Proceeds Offer Payment Date, the Company shall (i)
accept for payment Securities or portions thereof tendered pursuant to the Net
Proceeds Offer which are to be purchased in accordance with item (1) above, (ii)
deposit with the Paying Agent in accordance with Section 2.14 U.S. Legal Tender
sufficient to pay the purchase price plus accrued interest, if any, of all
Securities to be purchased and (iii) deliver to the Trustee Securities so
accepted together with an
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Officers' Certificate stating the Securities or portions thereof being purchased
by the Company. The Paying Agent shall promptly mail to the Holders of
Securities so accepted payment in an amount equal to the purchase price plus
accrued interest, if any, and the Trustee shall promptly authenticate and mail
to such Holders new Securities equal in principal amount to any unpurchased
portion of the Securities surrendered. Any Securities not so accepted shall be
promptly mailed by the Company to the Holder thereof. For purposes of this
Section 4.12, the Trustee shall act as the Paying Agent.
The Company will comply with all tender offer rules under state and
Federal securities laws and regulations, including, but not limited to, Section
14(e) under the Exchange Act and Rule 14e-1 thereunder, to the extent applicable
to the repurchase of Securities pursuant to a Net Proceeds Offer. To the extent
that the provisions of any securities laws or regulations conflict with the
provisions of this Section 4.12, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under the foregoing provisions of this Section 4.12 by virtue
thereof.
SECTION 4.13. Limitation on Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries.
------------------------
The Company will not, and will not cause or permit any of the
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
permit to exist after the Issue Date or become effective after the Issue Date,
any encumbrance or restriction on the ability of any Restricted Subsidiary to:
(a) pay dividends or make any other distributions on or in respect of its
Capital Stock; (b) make loans or advances or to pay any Indebtedness or other
obligation owed to the Company or any other Restricted Subsidiary; or (c)
transfer any of its property or assets to the Company or any other Restricted
Subsidiary, except for such encumbrances or restrictions existing under or by
reasons of: (1) applicable law; (2) this Indenture; (3) the Credit Agreement;
(4) customary non-assignment provisions of any contract or license or any lease
governing a leasehold interest of any Restricted Subsidiary; (5) any instrument
governing Acquired Indebtedness, which encumbrance or restriction is not
applicable to any Person, or the properties or assets of any Person, other than
the Person or the properties or assets of the Person so acquired; (6) agreements
(other than those described above) existing on the Issue Date to the extent and
in the manner such agreements are in effect on the
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Issue Date; (7) any other agreement entered into after the Issue Date which
contains encumbrances and restrictions which are not materially more restrictive
with respect to any Restricted Subsidiary than those in effect with respect to
such Restricted Subsidiary pursuant to agreements as in effect on the Issue
Date; (8) any instrument governing Indebtedness of a Foreign Restricted
Subsidiary; (9) customary restrictions on the transfer of any property or assets
arising under an agreement or instrument governing a Lien permitted under this
Indenture; (10) any agreement governing Refinancing Indebtedness incurred to
Refinance the Indebtedness issued, assumed or incurred pursuant to an agreement
referred to in clause (2), (5), (6) or (8) above; provided, however, that the
-------- -------
provisions relating to such encumbrance or restriction contained in any such
Refinancing Indebtedness are not materially more restrictive than the provisions
relating to such encumbrance or restriction contained in agreements referred to
in such clause (2), (5), (6) or (8); (11) any agreement governing the sale or
disposition of any Restricted Subsidiary which restricts dividends,
distributions and transfers pending such sale or disposition; and (12) any
agreement, instrument or Lien placing encumbrances or restrictions applicable
only to an Accounts Receivable Entity.
SECTION 4.14. Limitation on Issuances of Capital Stock of Restricted
-------------------
Subsidiaries.
-------------
The Company will not permit any of the Restricted Subsidiaries (other
than an Accounts Receivable Entity) to issue any Preferred Stock after the Issue
Date (other than to the Company or to a Restricted Subsidiary) or permit any
Person (other than the Company or a Restricted Subsidiary) to own after the
Issue Date any Preferred Stock of any Restricted Subsidiary (other than an
Accounts Receivable Entity). The Company will not, and will not permit any
Restricted Subsidiary (other than an Accounts Receivable Entity) to, issue,
sell, transfer or dispose of on or after the Issue Date any Capital Stock of any
Restricted Subsidiary that is not a Guarantor (other than the granting of Liens
permitted by Section 4.15) unless such issuance, sale, transfer or disposition
is to the Company or another Restricted Subsidiary, constitutes a director's
qualifying shares or results in the issuer of such Capital Stock no longer being
a Restricted Subsidiary.
SECTION 4.15. Limitation on Liens.
-------------------
The Company will not, and will not cause or permit any of the
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
permit or suffer to exist after the
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Issue Date, any Liens of any kind against or upon any property or assets of the
Company or any of the Guarantors whether owned on the Issue Date or acquired
after the Issue Date, or any proceeds therefrom, or assign or otherwise convey
any right to receive income or profits therefrom unless: (i) in the case of
Liens securing Subordinated Indebtedness, the Securities or such Guarantee are
secured by a Lien on such property, assets or proceeds that is senior in
priority to such Liens; and (ii) in all other cases, the Securities are equally
and ratably secured, except for: (A) Liens existing as of the Issue Date to the
extent and in the manner such Liens are in effect on the Issue Date; (B) Liens
securing the Securities and any Guarantees; (C) Liens in favor of the Company or
a Guarantor; (D) Liens securing Refinancing Indebtedness which is incurred to
Refinance any Indebtedness secured by a Lien permitted under this Indenture;
provided, however, that such Liens do not extend to or cover any property or
-------- -------
assets of the Company or any of the Restricted Subsidiaries not securing the
Indebtedness so Refinanced; and (E) Permitted Liens.
SECTION 4.16. [Intentionally Omitted]
SECTION 4.17. Limitation on Transactions with Affiliates.
-------------------------------------------
(a) The Company will not, and will not permit any of the Restricted
Subsidiaries to, directly or indirectly, enter into or permit to exist after the
Issue Date any transaction or series of related transactions (including, without
limitation, the purchase, sale, lease or exchange of any property or the
rendering of any service) with, or for the benefit of, any of its Affiliates
(each, an "Affiliate Transaction"), other than: (x) Affiliate Transactions
---------------------
permitted under paragraph (b) below; and (y) Affiliate Transactions on terms
that are not materially less favorable than those that would have reasonably
been expected in a comparable transaction at such time on an arm's-length basis
from a Person that is not an Affiliate of the Company or such Restricted
Subsidiary. All Affiliate Transactions (and each series of related Affiliate
Transactions which are similar or part of a common plan) on or after the Issue
Date involving aggregate payments or other property with a Fair Market Value in
excess of $5.0 million shall be approved by the Board of Directors of the
Company or such Restricted Subsidiary, as the case may be, such approval to be
evidenced by a Board Resolution stating that such Board of Directors has
determined that such transaction complies with the foregoing provisions. If the
Company or any Restricted Subsidiary enters into an Affiliate Transaction (or
series of related Affiliate
-64-
Transactions related to a common plan) on or after the Issue Date that involves
an aggregate Fair Market Value of more than $15.0 million, the Company or such
Restricted Subsidiary, as the case may be, shall, prior to the consummation
thereof, obtain a favorable opinion as to the fairness of such transaction or
series of related transactions to the Company or the relevant Restricted
Subsidiary, as the case may be, from a financial point of view, from an
Independent Financial Advisor and file the same with the Trustee.
(b) The restrictions set forth in paragraph (a) above shall not apply
to: (i) employment, consulting and compensation arrangements and agreements of
the Company or any Restricted Subsidiary consistent with past practice or
approved by a majority of the disinterested members of the Board of Directors
(or a committee comprised of disinterested directors); (ii) reasonable fees and
compensation paid to and indemnity provided on behalf of, officers, directors,
employees, consultants or agents of the Company or any Restricted Subsidiary as
determined in good faith by the Company's Board of Directors or senior
management; (iii) transactions exclusively between or among the Company and any
of the Restricted Subsidiaries or exclusively between or among such Restricted
Subsidiaries; provided that such transactions are not otherwise prohibited by
--------
this Indenture; and (iv) Restricted Payments, Permitted Investments, Permitted
Receivables Financings or Permitted Liens permitted by this Indenture.
SECTION 4.18. Issuance of Subsidiary Guarantees.
---------------------------------
If the Company forms or acquires any Domestic Restricted Subsidiary
(other than (x) an Acquired Subsidiary for so long as it is not a Wholly Owned
Domestic Restricted Subsidiary or (y) an Accounts Receivable Entity) that incurs
any Indebtedness (other than Indebtedness owing to the Company or a Restricted
Subsidiary), or if, on or after the Issue Date, any Restricted Subsidiary that
is not a Guarantor guarantees any Indebtedness of the Company or a Guarantor
(other than Indebtedness owing to the Company or a Restricted Subsidiary), then
the Company shall cause such Domestic Restricted Subsidiary or Restricted
Subsidiary that is not a Guarantor, as the case may be, to: (i) execute and
deliver to the Trustee a supplemental indenture in form reasonably satisfactory
to the Trustee pursuant to which such Domestic Restricted Subsidiary or
Restricted Subsidiary that is not a Guarantor, as the case may be, shall
unconditionally guarantee on a senior unsecured basis (each, a "Guarantee") all
---------
of the Company's obligations under the Securities and this Indenture on the
terms set forth in Article Ten;
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and (ii) deliver to the Trustee an Opinion of Counsel (which may contain
customary exceptions) that such supplemental indenture has been duly authorized,
executed and delivered by such Domestic Restricted Subsidiary or Restricted
Subsidiary that is not a Guarantor, as the case may be, and constitutes a legal,
valid, binding and enforceable obligation of such Domestic Restricted Subsidiary
or Restricted Subsidiary that is not a Guarantor, as the case may be (subject,
as to the enforcement of remedies, to applicable bankruptcy, reorganization,
insolvency, moratorium or other laws affecting creditors' rights generally from
time to time in effect and to general principles of equity). Thereafter, such
Domestic Restricted Subsidiary or Restricted Subsidiary that was not a
Guarantor, as the case may be, shall be a Guarantor for all purposes of this
Indenture. The Company, at its option, may cause any other Restricted Subsidiary
of the Company to issue a Guarantee and become a Guarantor.
SECTION 4.19. Payments for Consent.
--------------------
The Company will not, and will not cause or permit any of its
Subsidiaries to, directly or indirectly, pay or cause to be paid any
consideration, whether by way of interest, fee or otherwise, to any Holder of
any Securities for or as an inducement to any consent, waiver or amendment of
any of the terms or provisions of this Indenture, the Securities or the
Guarantees unless such consideration is offered to be paid to all Holders who so
consent, waive or agree to amend in the time frame set forth in solicitation
documents relating to such consent, waiver or amendment.
SECTION 4.20. Limitation on Designations of Unrestricted Subsidiaries.
-------------------------------------------------------
As of the Issue Date, AlphaConn do Brazil will be the only
Unrestricted Subsidiary. The Company may, after the Issue Date, designate any
Subsidiary of the Company (other than a Subsidiary of the Company which owns
Capital Stock of a Restricted Subsidiary) as an "Unrestricted Subsidiary" under
this Indenture (a "Designation") only if:
-----------
(a) no Default or Event of Default shall have occurred and be
continuing at the time of or after giving effect to such Designation;
(b) the Company would be permitted under this Indenture to
make an Investment at the time of Designation (assuming the
effectiveness of such Designation) in an amount
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(the "Designation Amount") equal to the sum of (i) the Fair Market
------------------
Value of the Capital Stock of such Subsidiary owned by the Company
and/or any of the Restricted Subsidiaries on such date and (ii) the
aggregate amount of Indebtedness of such Subsidiary owed to the Company
and the Restricted Subsidiaries on such date; and
(c) the Company would be permitted to incur $1.00 of
additional Indebtedness (other than Permitted Indebtedness) pursuant to
Section 4.03 at the time of Designation (assuming the effectiveness of
such Designation).
In the event of any such Designation, the Company shall be
deemed to have made an Investment constituting a Restricted Payment in the
Designation Amount pursuant to Section 4.04 for all purposes of this Indenture.
The Company shall not, and shall not cause or permit any
Restricted Subsidiary to, at any time: (x) provide direct or indirect credit
support for or a guarantee of any Indebtedness of any Unrestricted Subsidiary
(including any undertaking agreement or instrument evidencing such
Indebtedness); (y) be directly or indirectly liable for any Indebtedness of any
Unrestricted Subsidiary; or (z) be directly or indirectly liable for any
Indebtedness which provides that the holder thereof may (upon notice, lapse of
time or both) declare a default thereon or cause the payment thereof to be
accelerated or payable prior to its final scheduled maturity upon the occurrence
of a default with respect to any Indebtedness of any Unrestricted Subsidiary
(including any right to take enforcement action against such Unrestricted
Subsidiary), except, in the case of clause (x) or (y), to the extent permitted
under Section 4.04 hereof.
The Company may revoke any Designation of a Subsidiary as an
Unrestricted Subsidiary ("Revocation"), whereupon such Subsidiary shall then
----------
constitute a Restricted Subsidiary, if:
(a) no Default or Event of Default shall have occurred and be
continuing at the time and after giving effect to such Revocation; and
(b) all Liens and Indebtedness of such Unrestricted
Subsidiary outstanding immediately following such Revocation would, if
incurred at such time, have been permitted to be incurred for all
purposes of this Indenture.
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All Designations and Revocations must be evidenced by an
Officers' Certificate of the Company delivered to the Trustee certifying
compliance with the foregoing provisions.
SECTION 4.21. Change of Control.
-----------------
(a) Upon the occurrence of a Change of Control, each Holder
will have the right to require that the Company purchase all or a portion of
such Holder's Securities pursuant to the offer described below (the "Change of
---------
Control Offer"), at a purchase price equal to 101% of the principal amount
-------------
thereof plus accrued interest, if any, thereon to the date of purchase.
(b) Within 30 days following the date upon which the Change
of Control occurs, the Company must send, by first class mail, a notice to each
Holder, with a copy to the Trustee, which notice shall govern the terms of the
Change of Control Offer. Such notice shall state, among other things:
(1) that the Change of Control Offer is being made pursuant
to this Section 4.21 and that all Securities tendered and not withdrawn
will be accepted for payment;
(2) the purchase price (including the amount of accrued
interest) and the purchase date, which must be no earlier than 30 days
nor later than 60 days from the date such notice is mailed, other than
as may be required by law (the "Change of Control Payment Date");
------------------------------
(3) that any Security not tendered will continue to accrue
interest;
(4) that, unless the Company defaults in making payment
therefor, any Security accepted for payment pursuant to the Change of
Control Offer shall cease to accrue interest after the Change of
Control Payment Date;
(5) that Holders electing to have a Security purchased
pursuant to a Change of Control Offer will be required to surrender the
Security, with the form entitled "Option of Holder to Elect Purchase"
on the reverse of the Security completed, to the Paying Agent at the
address specified in the notice prior to the close of business on the
third Business Day prior to the Change of Control Payment Date;
(6) that Holders will be entitled to withdraw their election
if the Paying Agent receives, not later than the
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Business Day prior to the Change of Control Payment Date, a facsimile
transmission or letter setting forth the name of the Holder, the
principal amount of the Securities the Holder delivered for purchase
and a statement that such Holder is withdrawing his election to have
such Securities purchased;
(7) that Holders whose Securities are purchased only in part
will be issued new Securities in a principal amount equal to the
unpurchased portion of the Securities surrendered; and
(8) the circumstances and relevant facts regarding such
Change of Control.
On or before the Change of Control Payment Date, the Company
shall (i) accept for payment Securities or portions thereof tendered pursuant to
the Change of Control Offer, (ii) deposit with the Paying Agent, in accordance
with Section 2.14, U.S. Legal Tender sufficient to pay the purchase price plus
accrued interest, if any, of all Securities so tendered and (iii) deliver to the
Trustee Securities so accepted together with an Officers' Certificate stating
the Securities or portions thereof being purchased by the Company. Upon receipt
by the Paying Agent of the monies specified in clause (ii) above and a copy of
the Officers' Certificate specified in clause (iii) above, the Paying Agent
shall promptly mail to the Holders of Securities so accepted payment in an
amount equal to the purchase price plus accrued interest, if any, and the
Trustee shall promptly authenticate and mail to such Holders new Securities
equal in principal amount to any unpurchased portion of the Securities
surrendered. Any Securities not so accepted shall be promptly mailed by the
Company to the Holder thereof. For purposes of this Section 4.21, the Trustee
shall act as the Paying Agent.
Any amounts remaining after the purchase of all validly
tendered and not validly withdrawn Securities pursuant to a Change of Control
Offer shall be returned by the Trustee to the Company.
The Company shall and shall cause its Subsidiaries to comply
with all tender offer rules under state and Federal securities laws, including,
but not limited to, Section 14(e) under the Exchange Act and Rule 14e-1
thereunder, to the extent applicable to a Change of Control Offer. To the extent
that the provisions of any securities laws or regulations conflict with this
Section 4.21, the Company shall comply with the ap-
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plicable securities laws and regulations and shall not be deemed to have
breached its obligations under this Section 4.21 by virtue thereof.
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Merger, Consolidation and Sale of Assets.
----------------------------------------
(a) The Company will not, in a single transaction or series of
related transactions, consolidate or merge with or into any Person, or sell,
assign, transfer, lease, convey or otherwise dispose of (or cause or permit any
Restricted Subsidiary to sell, assign, transfer, lease, convey or otherwise
dispose of) after the Issue Date all or substantially all of the Company's
assets (determined on a consolidated basis for the Company and the Restricted
Subsidiaries) whether as an entirety or substantially as an entirety to any
Person unless: (i) either (1) the Company shall be the surviving or continuing
corporation or (2) 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, transfer, lease, conveyance or other disposition the
properties and assets of the Company and the Restricted Subsidiaries
substantially as an entirety (the "Surviving Entity") (x) shall be a corporation
----------------
organized and validly existing under the laws of the United States or any State
thereof or the District of Columbia and (y) shall expressly assume, by
supplemental indenture (in form and substance reasonably satisfactory to the
Trustee), executed and delivered to the Trustee, the due and punctual payment of
the principal of, and premium, if any, and interest on all of the Securities and
the performance of every covenant of the Securities, this Indenture and the
Registration Rights Agreement on the part of the Company to be performed or
observed; (ii) immediately after giving effect to such transaction and the
assumption contemplated by clause (i)(2)(y) above (including giving effect to
any Indebtedness and Acquired Indebtedness incurred or anticipated to be
incurred in connection with or in respect of such transaction), the Company or
such Surviving Entity, as the case may be, shall be able to incur at least $1.00
of additional Indebtedness (other than Permitted Indebtedness) pursuant to
Section 4.03; (iii) immediately before and immediately after giving effect to
such transaction and the assumption contemplated by clause (i)(2)(y) above
(including, without limitation, giving effect to any Indebtedness
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and Acquired Indebtedness incurred or anticipated to be incurred and any Lien
granted in connection with or in respect of the transaction), no Default or
Event of Default shall have occurred and be continuing; and (iv) the Company or
the Surviving Entity, as the case may be, shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, sale, assignment, transfer, lease, conveyance or other
disposition and, if a supplemental indenture is required in connection with such
transaction, such supplemental indenture comply with the applicable provisions
of this Indenture and that all conditions precedent in this Indenture relating
to such transaction have been satisfied.
(b) For purposes of the foregoing, the transfer (by lease,
assignment, sale or otherwise, in a single transaction or series of
transactions) of all or substantially all of the properties or assets of one or
more Restricted Subsidiaries, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed
to be the transfer of all or substantially all of the properties and assets of
the Company.
(c) No Guarantor (other than any Guarantor whose Guarantee is
to be released in accordance with the terms of the Guarantee and this Indenture
in connection with any transaction complying with the provisions of Section
4.12) will, and the Company will not cause or permit any Guarantor to,
consolidate with or merge with or into any Person other than the Company or any
other Guarantor unless: (i) the entity formed by or surviving any such
consolidation or merger (if other than the Guarantor) is a corporation organized
and existing under the laws of the United States or any State thereof or the
District of Columbia; (ii) such entity assumes by supplemental indenture all of
the obligations of the Guarantor under this Indenture, such Guarantor's
Guarantee and the Registration Rights Agreement; (iii) immediately after giving
effect to such transaction, no Default or Event of Default shall have occurred
and be continuing; (iv) immediately after giving effect to such transaction and
the use of any net proceeds therefrom on a pro forma basis, the Company could
--- -----
satisfy the provisions of clause (a)(ii) of this Section 5.01; and (v) the
Company shall have delivered to the Trustee an Officers' Certificate and Opinion
of Counsel, each stating that such consolidation or merger and, if a
supplemental indenture is required in connection with such transaction, such
supplemental indenture comply with the applicable provisions of this Indenture
and that all conditions
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precedent in this Indenture relating to such transaction have been satisfied.
SECTION 5.02. Successor Corporation Substituted.
---------------------------------
In accordance with the foregoing, upon any such consolidation,
merger, conveyance, lease or any transfer of all or substantially all of the
assets of the Company in which the Company is not the continuing corporation,
the Surviving Entity formed by such consolidation or into which the Company is
merged or to which such conveyance, lease or transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
under this Indenture and the Securities with the same effect as if such
successor had been named as the Company herein, and thereafter the predecessor
corporation will be relieved of all further obligations and covenants under this
Indenture, the Securities and the Registration Rights Agreement; provided that
--------
solely for purposes of computing amounts described in subclause (iii) of the
first paragraph of Section 4.04, any such Surviving Entity shall only be deemed
to have succeeded to and be substituted for the Company with respect to periods
subsequent to the effective time of such merger, consolidation or transfer of
assets.
ARTICLE SIX
DEFAULT AND REMEDIES
SECTION 6.01. Events of Default.
-----------------
An "Event of Default" occurs if:
----------------
(1) the failure to pay interest on any Security when the same
becomes due and payable and the default continues for a period of 30
days;
(2) the failure to pay the principal on any Security, when
such principal becomes due and payable, whether at maturity, upon
redemption or otherwise (including the failure to make a payment to
purchase Securities tendered pursuant to a Change of Control Offer or a
Net Proceeds Offer);
(3) a default in the observance or performance of any other
covenant or agreement contained in this Indenture which default
continues for a period of 60 days after
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the Company receives written notice specifying the default from the
Trustee or the Holders of at least 25% of the outstanding principal
amount of the Securities (except in the case of a default with respect
to Article Five, which will constitute an Event of Default with such
notice requirement but without such passage of time requirement);
(4) a default under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or
evidenced any Indebtedness of the Company or of any Restricted
Subsidiary (or the payment of which is guaranteed by the Company or any
Restricted Subsidiary) whether such Indebtedness now exists or is
created after the Issue Date, which default (a) is caused by a failure
to pay principal of such Indebtedness after any applicable grace period
provided in such Indebtedness on the date of such default (a "Payment
-------
Default"), or (b) results in the acceleration of such Indebtedness
-------
prior to its express maturity (and such acceleration is not rescinded,
or such Indebtedness is not repaid, within 60 days) and, in each case,
the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has
been a Payment Default or the maturity of which has been so accelerated
(and such acceleration is not rescinded, or such Indebtedness is not
repaid, within 60 days), aggregates $20.0 million;
(5) the Company or any of its Significant Subsidiaries (A)
admits in writing its inability to pay its debts generally as they
become due, (B) commences a voluntary case or proceeding under any
Bankruptcy Law with respect to itself, (C) consents to the entry of a
judgment, decree or order for relief against it in an involuntary case
or proceeding under any Bankruptcy Law, (D) consents to the appointment
of a Custodian of it or for substantially all of its property, (E)
consents to or acquiesces in the institution of a bankruptcy or an
insolvency proceeding against it, (F) makes a general assignment for
the benefit of its creditors, or (G) takes any corporate action to
authorize or effect any of the foregoing;
(6) a court of competent jurisdiction enters a judgment,
decree or order for relief in respect of the Company or any of its
Significant Subsidiaries in an involuntary case or proceeding under any
Bankruptcy Law, which shall (A) approve as properly filed a petition
seeking reorganization, arrangement, adjustment or composition in
respect
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of the Company or any of its Significant Subsidiaries, (B) appoint a
Custodian of the Company or any of its Significant Subsidiaries or for
substantially all of any of their property or (C) order the winding-up
or liquidation of its affairs; and such judgment, decree or order shall
remain unstayed and in effect for a period of 60 consecutive days;
(7) one or more judgments in an aggregate amount in excess
of $20.0 million not covered by adequate insurance shall have been
rendered against the Company or any of the Restricted Subsidiaries and
such judgments remain undischarged, unpaid or unstayed for a period of
60 days after such judgment or judgments become final and
nonappealable; or
(8) any Guarantee of a Significant Subsidiary ceases to be
in full force and effect, or any Guarantee of such a Significant
Subsidiary is declared to be null and void and unenforceable or any
Guarantee of such a Significant Subsidiary is found to be invalid or
any Guarantor which is a Significant Subsidiary denies its liability
under its Guarantee (other than by reason of release of such Guarantor
in accordance with the terms of this Indenture).
The Trustee shall, within 90 days after the occurrence of any
Default actually known to a Responsible Officer of the Trustee, give to the
Securityholders notice of such Default; provided that, except in the case of a
--------
Default in the payment of principal of or interest on any of the Securities, the
Trustee shall be protected in withholding such notice if and so long as a
Responsible Officer of the Trustee in good faith determines that the withholding
of such notice is in the interest of the Securityholders.
SECTION 6.02. Acceleration.
------------
If an Event of Default (other than an Event of Default
specified in clause (5) or (6) above) shall occur and be continuing, the Trustee
or the Holders of at least 25% in principal amount of outstanding Securities may
declare the principal of, premium, if any, and accrued and unpaid interest on
all the Securities to be due and payable by notice in writing to the Company
(and to the Trustee, if given by the Holders) specifying the respective Event(s)
of Default and that it is a "notice of acceleration" and the same shall become
immediately due and payable. If an Event of Default specified in clause (5) or
(6) above occurs and is continuing, then all unpaid
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principal of, premium, if any, and accrued and unpaid interest on, all of the
outstanding Securities 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 with respect
to the Securities as described in the preceding paragraph, the Holders of a
majority in principal amount of the then outstanding Securities may rescind and
cancel such declaration and its consequences: (i) if the rescission would not
conflict with any judgment or decree; (ii) if all existing Events of Default
have been cured or waived except nonpayment of principal or interest that has
become due solely because of the acceleration; (iii) to the extent the payment
of such interest is lawful, if interest on overdue installments of interest and
overdue principal, which has become due otherwise than by such declaration of
acceleration, has been paid; (iv) if the Company has paid the Trustee its
reasonable compensation and reimbursed the Trustee for its expenses,
disbursements and advances and any other sums owing to the Trustee pursuant to
Section 7.07; and (v) in the event of the cure or waiver of an Event of Default
of the type described in clauses (5) and (6) of the description above of Events
of Default, the Trustee shall have received an Officers' Certificate and an
Opinion of Counsel that such Event of Default has been cured or waived.
No such rescission shall affect any subsequent Default or
Event of Default or impair any right consequent thereto.
SECTION 6.03. Other Remedies.
--------------
If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of or interest on the Securities or to enforce the
performance of any provision of the Securities, this Indenture or any Guarantee.
The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Securityholder in exercising any right
or remedy accruing upon an Event of Default shall not impair the right or remedy
or constitute a waiver of or acquiescence in that Event of Default. No remedy is
exclusive of any other remedy. All available remedies are cumulative to the
extent permitted by law.
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SECTION 6.04. Waiver of Past Defaults.
-----------------------
Subject to Sections 6.02, 6.07 and 9.02, the Holders of a
majority in principal amount of the then outstanding Securities by written
notice to the Trustee may waive an existing Default or Event of Default and its
consequences, except a Default in the payment of principal of or premium, if
any, or interest on any Security as specified in clauses (1) and (2) of Section
6.01. The Company shall deliver to the Trustee an Officers' Certificate stating
that the requisite percentage of Holders have consented to such waiver and
attaching copies of such consents upon which the Trustee may conclusively rely.
When a Default or Event of Default is waived, it is cured and ceases.
SECTION 6.05. Control by Majority.
-------------------
The Holders of not less than a majority in aggregate principal
amount of the outstanding Securities may direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee or exercising
any trust or power conferred on it. Subject to Section 7.01, however, the
Trustee may refuse to follow any direction that conflicts with any law or this
Indenture, that the Trustee determines may be unduly prejudicial to the rights
of another Securityholder, or that may involve the Trustee in personal
liability; provided that the Trustee may take any other action deemed proper by
--------
the Trustee which is not inconsistent with such direction.
Prior to taking any action or following any direction pursuant
to this Section 6.05, the Trustee shall be entitled to indemnification from such
Holders satisfactory to it in its sole discretion against any fees, loss,
liability, cost or expense caused by taking such action or following such
direction.
SECTION 6.06. Limitation on Suits.
-------------------
A Securityholder may not pursue any remedy with respect to
this Indenture, the Securities or any Guarantee unless:
(1) the Holder gives to the Trustee written notice of a
continuing Event of Default;
(2) the Holder or Holders of at least 25% in principal
amount of the outstanding Securities make a written request to the
Trustee to pursue the remedy;
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(3) such Holder or Holders offer and, if requested, provide
to the Trustee indemnity satisfactory to the Trustee against any loss,
liability or expense;
(4) the Trustee does not comply with the request within 30
days after receipt of the request and the offer and, if requested, the
provision of indemnity; and
(5) during such 30-day period the Holder or Holders of a
majority in principal amount of the outstanding Securities do not give
the Trustee a direction which, in the opinion of the Trustee, is
inconsistent with the request.
A Securityholder may not use this Indenture to prejudice the
rights of another Securityholder or to obtain a preference or priority over such
other Securityholder.
SECTION 6.07. Rights of Holders to Receive Payment.
------------------------------------
Notwithstanding any other provision of this Indenture, the
right of any Holder to receive payment of principal of, premium and interest on
a Security, on or after the respective due dates expressed in such Security, or
to bring suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of the
Holder.
SECTION 6.08. Collection Suit by Trustee.
--------------------------
If an Event of Default in payment of principal, premium or
interest specified in clause (1) or (2) of Section 6.01 occurs and is
continuing, the Trustee may recover judgment in its own name and as trustee of
an express trust against the Company or any other obligor on the Securities for
the whole amount of principal and accrued interest remaining unpaid, together
with interest on overdue principal and, to the extent that payment of such
interest is lawful, interest on overdue installments of interest, in each case
at the rate per annum borne by the Securities and such further amount as shall
--- -----
be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
SECTION 6.09. Trustee May File Proofs of Claim.
--------------------------------
The Trustee may file such proofs of claim and other papers or
documents and take such other actions as it may determine in its reasonable
discretion to be necessary or advis-
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able (including participating as a member of any creditors committee acting in
the matter) in order to have the claims of the Trustee (including any claim for
the reasonable compensation, expenses, legal fees, disbursements and advances of
the Trustee, its agents, nominees, custodians, counsel, accountants and experts)
and the Securityholders allowed in any judicial proceedings relating to the
Company, its creditors or its property and shall be entitled and empowered to
collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same, and any Custodian in any such judicial
proceedings is hereby authorized by each Securityholder to make such payments to
the Trustee and, in the event that the Trustee shall consent to the making of
such payments directly to the Securityholders, to pay to the Trustee any amount
due to it for the reasonable compensation, expenses, legal fees, disbursements
and advances of the Trustee, its agents, nominees, custodians and counsel, and
any other amounts due the Trustee under Section 7.07. Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or
adopt on behalf of any Securityholder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Securityholder in any such proceeding.
SECTION 6.10. Priorities.
----------
If the Trustee collects any money or property pursuant to this
Article Six, it shall pay out the money or property in the following order:
First: to the Trustee for amounts owing under Section 7.07;
Second: if the Holders are forced to proceed against the
Company, a Guarantor or any other obligor on the Securities directly
without the Trustee, to Holders for their reasonable collection costs;
Third: to Holders for amounts due and unpaid on the
Securities for principal, premium and interest, ratably, without
preference or priority of any kind, according to the amounts due and
payable on the Securities for principal, premium and interest,
respectively; and
Fourth: to the Company or any Guarantors, as their respective
interests may appear.
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The Trustee, upon prior notice to the Company, may fix a
record date and payment date for any payment to Securityholders pursuant to this
Section 6.10.
SECTION 6.11. Payment of Interest; Interest Rights Preserved.
----------------------------------------------
Interest on any Security which is payable, and is punctually
paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name that Security is registered at the close of business on the
Record Date for such interest.
Any interest on any Security which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date (herein
called "Defaulted Interest") shall forthwith cease to be payable to the Holder
------------------
on such Record Date by virtue of having been such Holder; and such Defaulted
Interest may be paid by the Company, at its election in each case, as provided
in Subsection (1) or (2) below:
(1) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities are registered at
the close of business on a special record date (the "Special Record
--------------
Date") for the payment of such Defaulted Interest, which shall be fixed
----
in the following manner. The Company shall notify the Trustee in
writing of the amount of Defaulted Interest proposed to be paid on each
Security and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted
Interest or shall make arrangements satisfactory to the Trustee for
such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this Subsection 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. In the name and at the expense of the Company, the
Trustee shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class
postage prepaid, to each Holder at his address as it appears in
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the Security Register, not less than 10 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest
and the Special Record Date therefor having been so mailed, such
Defaulted Interest shall be paid to the Persons in whose names the
Securities (or their respective predecessor Securities) are registered
on such Special Record Date and shall no longer be payable pursuant to
the following Subsection (2).
(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 Company has caused the Securities
to 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 Subsection, such payment shall be deemed
practicable by the Trustee.
Subject to the foregoing provisions of this Section, each
Security delivered under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Security shall carry the rights to interest
accrued and unpaid, and to accrue, which were carried by such other Security.
SECTION 6.12. Undertaking for Costs.
---------------------
In any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees and expenses, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made by
the party litigant. This Section 6.12 does not apply to a suit by the Trustee, a
suit by a Holder pursuant to Section 6.07, or a suit by a Holder or Holders of
more than 10% in principal amount of the outstanding Securities.
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ARTICLE SEVEN
TRUSTEE
SECTION 7.01. Duties of Trustee.
-----------------
(a) If an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture and use the same degree of care and skill in its exercise as a prudent
Person would exercise or use under the circumstances in the conduct of its own
affairs. Subject to such provisions, the Trustee shall be under no obligation to
exercise any of its rights or powers under this Indenture at the request of any
of the Holders of Securities, unless they shall have offered to the Trustee
security and indemnity satisfactory to it in its sole discretion.
(b) Except during the continuance of an Event of Default:
(1) The Trustee need perform only those duties as are
specifically set forth herein and no others and no implied covenants or
obligations shall be read into this Indenture against the Trustee.
(2) In the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions and such other documents delivered to it pursuant to Section
11.04 hereof furnished to the Trustee and conforming to the
requirements of this Indenture. However, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to
the requirements of this Indenture (but need not confirm or investigate
the accuracy of mathematical calculations or other facts stated
therein).
(c) The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(1) This paragraph does not limit the effect of paragraph (b)
of this Section 7.01.
(2) The Trustee shall not be liable for any error of judgment
made in good faith by a Responsible Officer of
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the Trustee, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.
(3) The Trustee shall not be liable with respect to any
action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.05.
(d) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder or to take or omit to take any
action under this Indenture or take any action at the request or direction of
Holders if it shall have reasonable grounds for believing that repayment of such
funds is not assured to it or it does not receive an indemnity satisfactory to
it in its sole discretion against such risk, liability, loss, fee or expense
which might be incurred by it in compliance with such request or direction.
(e) Every provision of this Indenture that in any way relates
to the Trustee is subject to this Section 7.01.
(f) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law.
SECTION 7.02. Rights of Trustee.
-----------------
Subject to Section 7.01:
(a) The Trustee may conclusively rely and shall be protected
in acting or refraining from acting on any document believed by it to
be genuine and to have been signed or presented by the proper Person.
The Trustee need not investigate any fact or matter stated in the
document.
(b) Before the Trustee acts or refrains from acting, it may
require an Officers' Certificate and an Opinion of Counsel, which shall
conform to the provisions of Section 11.05. The Trustee shall not be
liable for any action it takes or omits to take in good faith in
reliance on such certificate or opinion.
(c) The Trustee may act through its attorneys, agents,
custodians and nominees and shall not be responsible for the misconduct
or negligence of any attorney,
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agent, custodian or nominee (other than such a person who is an
employee of the Trustee) appointed with due care.
(d) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it reasonably believes to be
authorized or within its rights or powers.
(e) The Trustee may consult with counsel and the advice or
opinion of such counsel as to matters of law shall be full and complete
authorization and protection from liability in respect of any action
taken, omitted or suffered by it hereunder in good faith and in
accordance with the advice or opinion of such counsel.
(f) The Trustee shall be under no obligation to exercise any
of the rights or powers vested in it by this Indenture at the request,
order or direction of any of the Holders pursuant to the provisions of
this Indenture, unless such Holders shall have offered to the Trustee
reasonable security or indemnity against the fees, costs, expenses and
liabilities which may be incurred therein or thereby.
(g) Except with respect to Section 4.01, the Trustee shall not
have any duty as to inquire as to the performance by the Company of its
covenants or obligations under this Indenture. The Trustee shall not be
deemed to have notice or any knowledge of any matter (including without
limitation Defaults or Events of Default) unless a Responsible Officer
assigned to and working in the Trustee's Corporate Trust Administration
has actual knowledge thereof or unless written notice thereof is
received by the Trustee, attention: Corporate Trust Administration and
such notice references the Securities generally, the Company or this
Indenture.
(h) The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right
to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and to each agent,
custodian and other Person employed to act hereunder.
SECTION 7.03. Individual Rights of Trustee.
----------------------------
The Trustee in its individual or any other capacity may become
the owner or pledgee of Securities and may otherwise
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deal with the Company, its Subsidiaries, any Guarantors and their respective
Affiliates with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. However, the Trustee must comply with Sections
7.10 and 7.11 of this Indenture as well as the provisions of the TIA.
SECTION 7.04. Trustee's Disclaimer.
--------------------
The Trustee shall not be responsible for and makes no representation as
to the validity or adequacy of this Indenture or the Securities, it shall not be
accountable for the Company's use of the proceeds from the Securities, and it
shall not be responsible for any statement of the Company in this Indenture or
any document issued in connection with the sale of Securities (including without
limitation any preliminary or final offering memorandum) or any statement in the
Securities other than the Trustee's certificate of authentication. The Trustee
makes no representations with respect to the effectiveness or adequacy of this
Indenture. The Trustee shall not be responsible for independently ascertaining
or maintaining such validity, if any, and shall be fully protected in relying
upon certificates and opinions delivered to it in accordance with the terms of
this Indenture.
SECTION 7.05. Notice of Default.
-----------------
If a Default or an Event of Default occurs and is continuing and a
Responsible Officer of the Trustee receives actual notice of such event, the
Trustee shall mail to each Securityholder, as their names and addresses appear
on the Securityholder list described in Section 2.05, notice of the uncured
Default or Event of Default within 90 days after the Trustee receives such
notice (or 30 days in the case of a Default or Event of Default specified in the
following sentence). Except in the case of a Default or an Event of Default in
payment of principal of, premium or interest on, any Security, including the
failure to make payment on (i) the Change of Control Payment Date pursuant to a
Change of Control Offer or (ii) the Excess Proceeds Offer Payment Date pursuant
to an Excess Proceeds Offer, the Trustee may withhold the 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 withholding the notice is in the interest of the Securityholders.
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SECTION 7.06. Reports by Trustee to Holders.
-----------------------------
This Section 7.06 shall not be operative as a part of this Indenture
until this Indenture is qualified under the TIA, and, until such qualification,
this Indenture shall be construed as if this Section 7.06 were not contained
herein.
Within 60 days after each May 15 of each year beginning with 2003, the
Trustee shall, to the extent that any of the events described in TIA (S) 313(a)
occurred within the previous twelve months, but not otherwise, mail to each
Securityholder a brief report dated as of such May 15 that complies with TIA (S)
313(a). The Trustee also shall comply with TIA (S)(S) 313(b), 313(c) and 313(d).
A copy of each report at the time of its mailing to Securityholders
shall be mailed to the Company and filed with the Commission and each securities
exchange, if any, on which the Securities are listed.
The Company shall notify a Responsible Officer of the Trustee if the
Securities become listed on any securities exchange or of any delisting thereof.
SECTION 7.07. Compensation and Indemnity.
--------------------------
The Company shall pay to the Trustee from time to time such compensation
for its services hereunder as the Company and the Trustee shall from time to
time agree in writing. The Trustee's compensation shall not be limited by any
law on compensation of a trustee of an express trust. The Company shall
reimburse the Trustee upon request for all reasonable disbursements, expenses
and advances (including reasonable fees and expenses of counsel) incurred or
made by it in addition to the compensation for its services, except any such
disbursements, expenses and advances as may be attributable to the Trustee's
negligence or bad faith. Such expenses shall include the reasonable
compensation, legal fees, disbursements and expenses of the Trustee's agents,
accountants, experts, nominees, custodians and counsel and any taxes or other
expenses incurred by a trust created pursuant to Section 8.01.
The Company shall indemnify the Trustee, its directors, officers, agents
and employees and each predecessor Trustee for, and hold it harmless against,
any loss, liability or expense incurred by the Trustee without negligence or bad
faith on its part arising out of or in connection with the administration of
this trust and its duties under this Indenture, in-
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cluding the reasonable expenses and attorneys' fees of defending itself against
any claim of liability arising hereunder, except to the extent the defense
thereof is materially prejudiced thereby. The Trustee shall notify the Company
promptly of any claim asserted against the Trustee for which it may seek
indemnity. However, the failure by the Trustee to so notify the Company shall
not relieve the Company of its obligations hereunder. The Company shall defend
the claim and the Trustee shall cooperate in the defense (and may employ, at its
expense, its own counsel) at the Company's expense. The Company need not pay for
any settlement made without its written consent, which consent shall not be
unreasonably withheld or delayed. The Company need not reimburse any expense or
indemnify against any loss or liability incurred by the Trustee as a result of
the violation of this Indenture by the Trustee if such violation arose from the
Trustee's negligence or bad faith.
To secure the Company's payment obligations in this Section 7.07, the
Trustee shall have a senior claim and lien prior to the Securities against all
money or property held or collected by the Trustee, in its capacity as Trustee.
When the Trustee incurs expenses or renders services after an Event of
Default specified in clause (5) or (6) of Section 6.01 occurs, the expenses
(including the reasonable fees and expenses of its agents and counsel) and the
compensation for the services shall be preferred over the status of the Holders
in a proceeding under any Bankruptcy Law and are intended to constitute expenses
of administration under any Bankruptcy Law. The Company's obligations under this
Section 7.07 and any claim arising hereunder shall survive termination of this
Indenture, the resignation or removal of any Trustee, the discharge of the
Company's obligations pursuant to Article Eight and any rejection or termination
under any Bankruptcy Law.
SECTION 7.08. Replacement of Trustee.
----------------------
The Trustee may resign at any time by so notifying the Company in
writing. The Holders of a majority in principal amount of the outstanding
Securities may remove the Trustee by so notifying the Company and the Trustee in
writing and may appoint a successor trustee with the Company's consent. The
Company may remove the Trustee if:
(1) the Trustee fails to comply with Section 7.10;
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(2) the Trustee is adjudged a bankrupt or an insolvent;
(3) a receiver or other public officer takes charge of the Trustee or
its property; or
(4) the Trustee becomes legally incapable of acting with respect to its
duties hereunder.
If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, the Company shall notify each Holder of such
event and shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of
the Securities may appoint a successor Trustee to replace the successor Trustee
appointed by the Company.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that,
the retiring Trustee shall transfer, after payment of all sums then owing to the
Trustee pursuant to Section 7.07, all property held by it as Trustee to the
successor Trustee, subject to the lien provided in Section 7.07, the resignation
or removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee under this
Indenture; provided, however, that no Trustee under this Indenture shall be
-------- -------
liable for any act or omission of any successor Trustee. A successor Trustee
shall mail notice of its succession to each Securityholder.
If a successor Trustee does not take office within 30 days after the
retiring Trustee resigns or is removed, the retiring Trustee (at the expense of
the Company), the Company or the Holders of at least 10% in principal amount of
the outstanding Securities may petition any court of competent jurisdiction for
the appointment of a successor Trustee.
If the Trustee fails to comply with Section 7.10, any Securityholder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.
Notwithstanding replacement of the Trustee pursuant to this Section
7.08, the Company's obligations under Section 7.07 shall continue for the
benefit of the retiring Trustee and the Company shall pay to any such replaced
or removed
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Trustee all amounts owed under Section 7.07 upon such replacement or removal.
SECTION 7.09. Successor Trustee by Merger, Etc.
--------------------------------
If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the resulting, surviving or transferee corporation without any
further act shall, if such resulting, surviving or transferee corporation is
otherwise eligible hereunder, be the successor Trustee. In case any Securities
shall have been authenticated, but not delivered, by the Trustee then in office,
any successor by merger, conversion or consolidation to such authenticating
Trustee may adopt such authentication and deliver the Securities so
authenticated with the same effect as if such successor Trustee had itself
authenticated such Securities.
SECTION 7.10. Eligibility; Disqualification.
-----------------------------
This Indenture shall always have a Trustee who satisfies the
requirement of TIA (S)(S) 310(a)(1) and 310(a)(5). The Trustee shall have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
(S) 310(b); provided, however, that there shall be excluded from the operation
-------- -------
of TIA (S) 310(b)(1) any indenture or indentures under which other securities,
or certificates of interest or participation in other securities, of the Company
are outstanding, if the requirements for such exclusion set forth in TIA (S)
310(b)(1) are met.
SECTION 7.11. Preferential Collection of Claims Against Company.
-------------------------------------------------
The Trustee, in its capacity as Trustee hereunder, shall comply with
TIA (S) 311(a), excluding any creditor relationship listed in TI (S) 311(b). A
Trustee who has resigned or been removed shall be subject to TIA (S) 311(a) to
the extent indicated.
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ARTICLE EIGHT
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 8.01. Legal Defeasance and Covenant Defeasance.
----------------------------------------
(a) The Company may, at its option and at any time, with respect to
the Securities, elect to have either paragraph (b) or paragraph (c) below be
applied to the outstanding Securities upon compliance with the conditions set
forth in paragraph (d).
(b) Upon the Company's exercise under paragraph (a) of the option
applicable to this paragraph (b), the Company and any Guarantors shall be deemed
to have been released and discharged from their obligations with respect to the
outstanding Securities on the date the conditions set forth below are satisfied
(hereinafter, "Legal Defeasance"). For this purpose, such Legal Defeasance means
----------------
that the Company shall be deemed to have paid and discharged the entire
indebtedness represented by the outstanding Securities, which shall thereafter
be deemed to be "outstanding" only for the purposes of the Sections and matters
under this Indenture referred to in (i) and (ii) below, and to have satisfied
all its other obligations under such Securities and this Indenture insofar as
such Securities are concerned, except for the following, which shall survive
until otherwise terminated or discharged hereunder: (i) the rights of the
Holders of outstanding Securities to receive payments in respect of the
principal of, premium, if any, and interest on such Securities when such
payments are due, (ii) the Company's obligations to issue temporary Securities,
register the transfer or exchange of any Securities, replace mutilated,
destroyed, lost or stolen Securities and maintain an office or agency for
payments in respect of the Securities, (iii) the rights, powers, trusts, duties
and immunities of the Trustee and the Company's obligations in connection
therewith and (iv) the Legal Defeasance provisions of this Indenture. The
Company may exercise its option under this paragraph (b) notwithstanding the
prior exercise of its option under paragraph (c) below with respect to the
Securities.
(c) Upon the Company's exercise under paragraph (a) of the option
applicable to this paragraph (c), the Company shall be released and discharged
from its obligations under any covenant contained in Article Five and in
Sections 4.03 through 4.21 with respect to the outstanding Securities on and
after the date the conditions set forth below are satisfied (herein-
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after, "Covenant Defeasance"), and the Securities shall thereafter be deemed to
-------------------
be not "outstanding" for the purpose of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed "outstanding"
for all other purposes hereunder. For this purpose, such Covenant Defeasance
means that, with respect to the outstanding Securities, the Company and any
Guarantor may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event of Default under Section 6.01(3), nor shall any event
referred to in Section 6.01(4), (7) or (8) thereafter constitute a Default or an
Event of Default thereunder but, except as specified above, the remainder of
this Indenture and such Securities shall be unaffected thereby.
(d) The following shall be the conditions to application of either
paragraph (b) or paragraph (c) above to the outstanding Securities:
(1) The Company must irrevocably deposit with the Trustee, in trust,
for the benefit of the Holder pursuant to an irrevocable trust and security
agreement in form and substance reasonably satisfactory to the Trustee,
U.S. Legal Tender or direct non-callable obligations of, or non-callable
obligations guaranteed by, the United States of America for the payment of
which obligation or guarantee the full faith and credit of the United
States of America is pledged ("U.S. Government Obligations") or a
---------------------------
combination thereof, maturing as to principal and interest in such amounts
and at such times as are sufficient, without consideration of the
reinvestment of such interest and principal and after payment of all
Federal, state and local taxes or other charges or assessments in respect
thereof payable by the Trustee, in the opinion of a nationally recognized
firm of independent public accountants, selected by the Company, expressed
in a written certification thereof (in form and substance reasonably
satisfactory to the Trustee) delivered to the Trustee, to pay the principal
of, premium, if any, and interest on all the outstanding Securities on the
dates on which any such payments are due and payable (including, in the
case of a redemption, on the applicable redemption date) in accordance with
the terms of this Indenture and of the Securities;
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(2) Such deposits shall not cause the Trustee to have a conflicting
interest as defined in and for purposes of the TIA;
(3) The Trustee shall have received Officers' Certificates stating
that no Default or Event of Default or event which with notice or lapse of
time or both would become a Default or an Event of Default with respect to
the Securities shall have occurred and be continuing on the date of such
deposit or, insofar as Section 6.01(5) or (6) is concerned, at any time
during the period ending on the 91st day after the date of such deposit (it
being understood that this condition shall not be deemed satisfied until
the expiration of such period);
(4) The Trustee shall have received Officers' Certificates stating
that such deposit will not result in a Default under this Indenture or a
breach or violation of, or constitute a default under, any other material
instrument or agreement to which the Company or any of its Subsidiaries is
a party or by which the Company or any of its Subsidiaries is bound;
(5) (i) In the event the Company elects paragraph (b) hereof, the
Company shall deliver to the Trustee an Opinion of Counsel in the United
States, in form and substance reasonably satisfactory to the Trustee
confirming that (A) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since the Issue
Date, there has been a change in the applicable federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel
shall confirm that, Holders of the Securities will not recognize income,
gain or loss for Federal income tax purposes as a result of such deposit
and the Legal Defeasance contemplated hereby and will be subject to Federal
income taxes on the same amounts, in the same manner and at the same times
as would have been the case if such deposit and Legal Defeasance had not
occurred, or (ii) in the event the Company elects paragraph (c) hereof, the
Company shall deliver to the Trustee an Opinion of Counsel in the United
States, in form and substance reasonably satisfactory to the Trustee,
confirming that, Holders of the Securities will not recognize income, gain
or loss for Federal income tax purposes as a result of such deposit and the
Covenant Defeasance contemplated hereby and will be subject to Federal
income tax on the same amounts and in the same manner
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and at the same times as would have been the case if such deposit and
Covenant Defeasance had not occurred;
(6) The Company shall have delivered to the Trustee an Opinion of
Counsel stating that, solely as a result of the Legal Defeasance or
Covenant Defeasance, neither the Trustee nor the trust are required to
register as an "investment company" under the Investment Company Act of
1940, as amended;
(7) The Company shall have delivered to the Trustee an Officers'
Certificate, in form and substance reasonably satisfactory to the Trustee,
stating that the deposit under clause (1) was not made or caused to be made
by the Company with the intent of preferring the Holders over any other
creditors of the Company, a Guarantor or any Subsidiary of the Company or
with the intent of defeating, hindering, delaying or defrauding any other
creditors of the Company, a Guarantor, or any Subsidiary of the Company or
others;
(8) The Company shall have delivered to the Trustee an Opinion of
Counsel, in form and substance reasonably satisfactory to the Trustee, to
the effect that after the 91st day following the deposit, the trust funds
will not be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors' rights generally;
(9) The Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent
specified herein relating to the defeasance contemplated by this Section
8.01 have been complied with; provided, however, that no deposit under
-------- -------
clause (1) above shall be effective to terminate the obligations of the
Company under the Securities or this Indenture prior to 90 days following
any such deposit; and
(10) The Company shall have paid all amounts owing to the Trustee
pursuant to Section 7.07.
Notwithstanding the foregoing, the Opinion of Counsel required by
paragraph (5) above need not be delivered if all Securities not theretofore
delivered to the Trustee for cancellation (i) have become due and payable, (ii)
will become due and payable on the maturity date for the securities within one
year, or (iii) are to be called for redemption within one year
-92-
under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company.
In the event all or any portion of the Securities are to be redeemed
through such irrevocable trust, the Company must make arrangements satisfactory
to the Trustee, at the time of such deposit, for the giving of the notice of
such redemption or redemptions by the Trustee in the name and at the expense of
the Company.
SECTION 8.02. Satisfaction and Discharge.
--------------------------
In addition to the Company's rights under Section 8.01, the Company
may terminate all of its obligations under this Indenture (subject to Section
8.03) when:
(1) either (a) all Securities theretofore authenticated and delivered
(other than Securities which have been destroyed, lost or stolen and which
have been replaced or paid as provided in Section 2.07 and Securities for
whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust) have been delivered to the Trustee for
cancellation or (b) all Securities not theretofore delivered to the Trustee
for cancellation (except lost, stolen or destroyed Securities which have
been replaced or paid) have been called for redemption pursuant to the
terms of the Securities or have otherwise become due and payable and the
Company has irrevocably deposited or caused to be deposited with the
Trustee funds in an amount sufficient to pay and discharge the entire
Indebtedness on the Securities not theretofore delivered to the Trustee for
cancellation, for principal of, premium, if any, and interest on the
Securities to the date of deposit together with irrevocable instructions
from the Company directing the Trustee to apply such funds to the payment
thereof at maturity or redemption, as the case may be; and
(2) the Company and/or the Guarantors have paid or caused to be paid
all other sums payable under this Indenture; and
(3) there exists no Default or Event of Default under this Indenture;
and
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(4) the Company has delivered to the Trustee an Officers' Certificate
and an Opinion of Counsel, each stating that all conditions precedent
specified herein relating to the satisfaction and discharge of this
Indenture have been complied with; and
(5) the Company shall have paid all amounts owing to the Trustee
pursuant to Section 7.07.
SECTION 8.03. Survival of Certain Obligations.
-------------------------------
Notwithstanding the satisfaction and discharge of this Indenture and
of the Securities referred to in Section 8.01 or 8.02, the respective
obligations of the Company and the Trustee under Sections 2.02, 2.03, 2.04,
2.05, 2.06, 2.07, 2.10, 2.12, 2.13, 4.01, 4.02 and 6.07, Article Seven and
Sections 8.05, 8.06 and 8.07 shall survive until the Securities are no longer
outstanding, and thereafter the obligations of the Company and the Trustee under
Sections 7.07, 8.05, 8.06 and 8.07 shall survive. Nothing contained in this
Article Eight shall abrogate any of the rights, obligations or duties of the
Trustee under this Indenture.
SECTION 8.04. Acknowledgment of Discharge by Trustee.
--------------------------------------
Subject to Section 8.07, after (i) the conditions of Section 8.01 or
8.02 have been satisfied, (ii) the Company has paid or caused to be paid all
other sums payable hereunder by the Company, and (iii) the Company has delivered
to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent referred to in clause (i) above relating to the
satisfaction and discharge of this Indenture have been complied with, the
Trustee upon written request shall acknowledge in writing the discharge of the
Company's obligations under this Indenture except for those surviving
obligations specified in Section 8.03.
SECTION 8.05. Application of Trust Assets.
---------------------------
The Trustee shall hold any U.S. Legal Tender or U.S. Government
Obligations deposited with it in the irrevocable trust established pursuant to
Section 8.01. The Trustee shall apply the deposited U.S. Legal Tender or the
U.S. Government Obligations, together with earnings thereon, through the Paying
Agent, in accordance with this Indenture and the terms of the irrevocable trust
agreement established pursuant to Section 8.01, to the payment of principal of
and interest on the Securities. The U.S. Legal Tender or U.S. Government Obliga-
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tions so held in trust and deposited with the Trustee in compliance with Section
8.01 shall not be part of the trust estate under this Indenture, but shall
constitute a separate trust fund for the benefit of all Holders entitled
thereto.
The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 8.01 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 Outstanding Securities.
SECTION 8.06. Repayment to the Company or Guarantors; Unclaimed Money.
-------------------------------------------------------
Subject to Sections 7.07 and 8.01 and to applicable laws relating to
escheat, the Trustee shall promptly pay to the Company, or if deposited with the
Trustee by any Guarantor, to such Guarantor, upon receipt by the Trustee of an
Officers' Certificate, any excess money, determined in accordance with Section
8.01, held by it at any time. The Trustee and the Paying Agent shall pay to the
Company or any Guarantor, as the case may be, upon receipt by the Trustee or the
Paying Agent, as the case may be, of an Officers' Certificate, any money held by
it for the payment of principal, premium, if any, or interest that remains
unclaimed for two years after payment to the Holders is required; provided,
--------
however, that the Trustee and the Paying Agent before being required to make any
-------
payment may, but need not, at the expense of the Company cause to be published
once in a newspaper of general circulation in The City of New York or mail to
each Holder entitled to such money 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 mailing or publication and shall be at least two years after
the date such money held by the Trustee for the payment of principal, premium,
if any, or interest remains unclaimed), any unclaimed balance of such money then
remaining will be repaid to the Company. After payment to the Company or any
Guarantor, as the case may be, Securityholders entitled to such money must look
solely to the Company for payment as general creditors unless an applicable
abandoned property law designates another Person, and all liability of the
Trustee or Paying Agent with respect to such money shall thereupon cease.
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SECTION 8.07. Reinstatement.
-------------
If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with this Indenture by reason of any legal
proceeding or by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
and only then the Company's and each Guarantor's, if any, obligations under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had been made pursuant to this Indenture until such time as the Trustee
is permitted to apply all such money or U.S. Government Obligations in
accordance with this Indenture; provided, however, that if the Company or the
-------- -------
Guarantors, as the case may be, have made any payment of principal of, premium,
if any, or interest on any Securities because of the reinstatement of their
obligations, the Company or the Guarantors, as the case may be, shall be
subrogated to the rights of the holders of such Securities to receive such
payment from the money or U.S. Government Obligations held by the Trustee or
Paying Agent.
ARTICLE NINE
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. Without Consent of Holders.
--------------------------
The Company and any Guarantors (when authorized by Board Resolutions),
and the Trustee, together, may amend or supplement this Indenture or the
Securities without notice to or consent of any Securityholder:
(1) to cure any ambiguity, defect or inconsistency;
(2) to evidence the succession in accordance with Article Five hereof
of another Person to the Company or a Guarantor and the assumption by any
such successor of the covenants of the Company or a Guarantor herein and in
the Securities or a Guarantee, as the case may be;
(3) to provide for uncertificated Securities in addition to or in
place of certificated Securities;
(4) to make any other change that does not materially adversely
affect the rights of any Securityholders hereunder;
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(5) to comply with any requirements of the Commission in connection
with the qualification of this Indenture under the TIA; or
(6) to add or release any Guarantor pursuant to the terms of this
Indenture;
provided that each of the Company and any Guarantors has delivered to the
--------
Trustee an Opinion of Counsel and an Officers' Certificate, each stating that
such amendment or supplement complies with the provisions of this Section 9.01;
and provided, further, that such amendment or supplement does not, in the
-------- -------
opinion of the Trustee, adversely affect the rights of any of the Holders in any
material respect. In formulating its opinion on such matters, the Trustee will
be entitled to rely on such evidence as it deems appropriate, including, without
limitation, solely on an Opinion of Counsel.
SECTION 9.02. With Consent of Holders.
-----------------------
Subject to Section 6.07, the Company and any Guarantors (when
authorized by Board Resolutions) and the Trustee, together, with the written
consent of the Holder or Holders of at least a majority in aggregate principal
amount of the then outstanding Securities, may amend or supplement this
Indenture, the Securities and any Guarantees without notice to any other
Securityholders. Subject to Section 6.07, the Holder or Holders of a majority in
aggregate principal amount of the then outstanding Securities may waive
compliance by the Company with any provision of this Indenture or the Securities
without notice to any other Securityholder. Without the consent of each
Securityholder affected, however, no amendment, supplement or waiver, including
a waiver pursuant to Section 6.04, may:
(1) reduce the principal amount of Securities whose Holders must
consent to an amendment, supplement or waiver of any provision of this
Indenture, the Securities or any Guarantees;
(2) reduce the rate of or change or have the effect of changing the
time for payment of interest, including defaulted interest, on any
Security;
(3) reduce the principal of or change or have the effect of changing
the fixed maturity of any Securities, or change the date on which any
Securities may be subject to redemption or repurchase, or reduce the
redemption or repurchase price therefor;
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(4) make any Securities payable in money other than that stated in
the Securities;
(5) make any change in provisions of this Indenture protecting the
right of each Holder to receive payment of principal of, premium, if any,
and interest on such Securities on or after the stated due date thereof or
to bring suit to enforce such payment, or permitting Holders of a majority
in principal amount of the then outstanding Securities to waive Defaults or
Events of Default;
(6) amend, change or modify in any material respect the obligations
of the Company to make and consummate a Change of Control Offer after the
occurrence of a Change of Control or make and consummate a Net Proceeds
Offer with respect to any Asset Sale that has been consummated or, after
such Change of Control has occurred or such Asset Sale has been
consummated, modify any of the provisions or definitions with respect
thereto;
(7) modify or change any provision of this Indenture or the related
definitions affecting the ranking of the Securities or any Guarantee in a
manner which adversely affects the Holders;
(8) modify the provisions of Section 4.19, 6.04, 6.07 or this Section
9.02, in each case in any manner adverse to a Holder of Securities; or
(9) release any Guarantor from any of its obligations under its
Guarantee or this Indenture otherwise than in accordance with the terms of
this Indenture.
It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
the Company to mail such notice, or any defect therein, shall not, however, in
any way impair or affect the validity of any such supplemental indenture.
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SECTION 9.03. Compliance with TIA.
-------------------
From the date on which this Indenture is qualified under the TIA,
every amendment, waiver or supplement of this Indenture or the Securities shall
comply with the TIA as then in effect.
SECTION 9.04. Revocation and Effect of Consents.
---------------------------------
Until an amendment, waiver or supplement becomes effective, a consent
to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same debt as
the consenting Holder's Security, even if notation of the consent is not made on
any Security. However, any such Holder or subsequent Holder may revoke the
consent as to his Security or portion of his Security by notice to the Trustee
or the Company received before the date on which the Trustee receives an
Officers' Certificate certifying that the Holders of the requisite principal
amount of Securities have consented (and not theretofore revoked such consent)
to the amendment, supplement or waiver.
The Company may, but shall not be obligated to, fix a record date for
the purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver. If a record date is fixed, then notwithstanding the last
sentence of the immediately preceding paragraph, those Persons who were Holders
at such record date (or their duly designated proxies), and only those Persons,
shall be entitled to revoke any consent previously given, whether or not such
Persons continue to be Holders after such record date. No such consent shall be
valid or effective for more than 90 days after such record date.
After an amendment, supplement or waiver becomes effective, it shall
bind every Securityholder, unless it makes a change described in any of clauses
(1) through (9) of Section 9.02, in which case, the amendment, supplement or
waiver shall bind only each Holder of a Security who has consented to it and
every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder's Security; provided that any such waiver
--------
shall not impair or affect the right of any Holder to receive payment of
principal of and interest on a Security, on or after the respective due dates
expressed in such Security, or to bring suit for the enforcement of any such
payment on or after such respective dates without the consent of such Holder.
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SECTION 9.05. Notation on or Exchange of Securities.
-------------------------------------
If an amendment, supplement or waiver changes the terms of a Security,
the Trustee may require the Holder of the Security to deliver it to the Trustee.
The Trustee may place an appropriate notation on the Security about the changed
terms and return it to the Holder. Alternatively, if the Company or the Trustee
so determines, the Company in exchange for the Security shall issue and the
Trustee shall authenticate a new Security that reflects the changed terms.
Failure to make the appropriate notation or to issue a new Security shall not
affect the validity and effect of such amendment, supplement or waiver.
SECTION 9.06. Trustee to Sign Amendments, Etc.
-------------------------------
The Trustee shall execute any amendment, supplement or waiver
authorized pursuant to this Article Nine; provided that the Trustee may, but
--------
shall not be obligated to, execute any such amendment, supplement or waiver
which affects the Trustee's own rights, duties or immunities under this
Indenture. The Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Opinion of Counsel and an Officers' Certificate
each stating that the execution of any amendment, supplement or waiver
authorized pursuant to this Article Nine is authorized or permitted by this
Indenture and constitutes the legal, valid and binding obligations of the
Company and any Guarantor enforceable in accordance with its terms (subject to
customary exceptions) and, in the case of any supplemental indenture required by
Section 4.18, constitutes a guarantee as defined therein. Such Opinion of
Counsel shall be at the expense of the Company, and the Trustee shall have a
lien under Section 7.07 for any such expense.
ARTICLE TEN
GUARANTEE
SECTION 10.01. Unconditional Guarantee.
-----------------------
Each Guarantor agrees to unconditionally, jointly and severally,
guarantee, on a senior unsecured basis, to each Holder of a Security
authenticated and delivered by the Trustee, and to the Trustee and its
successors and assigns, that: (i) the principal of, premium, if any, and
interest on the Securities will be promptly paid in full when due, subject to
any
-100-
applicable grace period, whether at maturity, by acceleration or otherwise and
interest on the overdue principal, if any, and interest on any interest, to the
extent lawful, of the Securities and all other Obligations of the Company to the
Holders or the Trustee hereunder or thereunder will be promptly paid in full or
performed, all in accordance with the terms hereof and thereof; and (ii) in case
of any extension of time of payment or renewal of any Securities or of any such
other Obligations, the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, subject to any
applicable grace period, whether at stated maturity, by acceleration or
otherwise, subject, however, in the case of clauses (i) and (ii) above, to the
limitations set forth in Section 10.04. Each Guarantor agrees that its
obligations hereunder shall be unconditional, irrespective of the validity,
regularity or enforceability of the Securities or this Indenture, the absence of
any action to enforce the same, any waiver or consent by any Holder of the
Securities with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a Guarantor. Each Guarantor waives diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Company, any right to require a proceeding first against the Company,
protest, notice and all demands whatsoever and covenants that its Guarantee will
not be discharged except by complete performance of the obligations contained in
the Securities, this Indenture and each Guarantee. If any Securityholder or the
Trustee is required by any court or otherwise to return to the Company, any
Guarantor or any custodian, trustee, liquidator or other similar official acting
in relation to the Company or any Guarantor, any amount paid by the Company or
any Guarantor to the Trustee or such Securityholder, each Guarantee to the
extent theretofore discharged, shall be reinstated in full force and effect.
Each Guarantor further agrees that, as between each Guarantor, on the one hand,
and the Holders and the Trustee, on the other hand, (x) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article Six for
the purposes of each Guarantee notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (y) in the event of any acceleration of such obligations
as provided in Article Six, such obligations (whether or not due and payable)
shall forthwith become due and payable by each Guarantor for the purpose of its
Guarantee.
-101-
SECTION 10.02. Severability.
------------
In case any provision of a Guarantee shall be invalid, illegal or
unenforceable, the validity, legality, and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
SECTION 10.03. Release of a Guarantor.
----------------------
In the event of (i) the issuance or sale of Capital Stock of a
Guarantor which results in the Guarantor no longer being a Subsidiary of the
Company in compliance with Section 4.12, (ii) a Guarantor becoming an
Unrestricted Subsidiary in compliance with Section 4.20 or (iii) the sale of all
or substantially all of the assets of a Guarantor pursuant to an Asset Sale
which complies with the provisions of Section 4.12, the applicable Guarantor's
Guarantee will be released.
The Trustee shall deliver an appropriate instrument evidencing such
release upon receipt of a request by the Company accompanied by an Officers'
Certificate and Opinion of Counsel certifying as to the compliance with this
Section 10.03. Any Guarantor not so released remains liable for the full amount
of principal of and interest on the Securities as provided in this Article Ten.
SECTION 10.04. Limitation of a Guarantor's Liability.
-------------------------------------
Each Guarantor and, by its acceptance hereof, each Holder hereby
confirms that it is the intention of all such parties that the guarantee by such
Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or
conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar Federal or state law. To
effectuate the foregoing intention, the Holders and each Guarantor irrevocably
agree that the obligations of each Guarantor under its Guarantee shall be
limited to the maximum amount as will, after giving effect to all other
contingent and fixed liabilities of such Guarantor, and after giving effect to
any collections from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under its Guarantee, or
pursuant to Section 10.05, result in the obligations of such Guarantor under its
Guarantee not constituting such fraudulent transfer or conveyance.
-102-
SECTION 10.05. Contribution.
------------
In order to provide for just and equitable contribution among the
Guarantors, the Guarantors agree, inter se, that in the event any payment or
--------
distribution is made by any Guarantor (a "Funding Guarantor") under its
-----------------
Guarantee, such Funding Guarantor shall be entitled to a contribution from all
other Guarantors in a pro rata amount based on the Adjusted Net Assets of each
--- ----
Guarantor (including the Funding Guarantor) for all payments, damages and
expenses incurred by that Funding Guarantor in discharging the Company's
obligations with respect to the Securities or any other Guarantor's obligations
with respect to its Guarantee. "Adjusted Net Assets" of a Guarantor at any date
-------------------
shall mean the lesser of the amount by which (x) the fair value of the property
of such Guarantor exceeds the total amount of liabilities, including, without
limitation, contingent liabilities (after giving effect to all other fixed and
contingent liabilities incurred or assumed on such date), but excluding
liabilities under the Guarantee of such Guarantor at such date and (y) the
present fair salable value of the assets of such Guarantor at such date exceeds
the amount that will be required to pay the probable liability of such Guarantor
on its debts (after giving effect to all other fixed and contingent liabilities
incurred or assumed on such date), excluding debt in respect of the Guarantee of
such Guarantor, as they become absolute and matured.
SECTION 10.06. Waiver of Subrogation.
----------------------
Until all Guarantee Obligations are paid in full, each Guarantor
hereby irrevocably waives any claims or other rights which it may now or
hereafter acquire against the Company that arise from the existence, payment,
performance or enforcement of such Guarantor's obligations under its Guarantee
and this Indenture, including, without limitation, any right of subrogation,
reimbursement, exoneration, indemnification, and any right to participate in any
claim or remedy of any Holder of Securities against the Company, whether or not
such claim, remedy or right arises in equity, or under contract, statute or
common law, including, without limitation, the right to take or receive from the
Company, directly or indirectly, in cash or other property or by set-off or in
any other manner, payment or security on account of such claim or other rights.
If any amount shall be paid to any Guarantor in violation of the preceding
sentence and the Securities shall not have been paid in full, such amount shall
be deemed to have been paid to such Guarantor for the benefit of, and held in
trust for the benefit of, the Holders of the Securities, and shall forthwith be
paid
-103-
to the Trustee for the benefit of such Holders to be credited and applied
upon the Securities, in accordance with the terms of this Indenture. Each
Guarantor acknowledges that it will receive direct and indirect benefits from
the financing arrangements contemplated by this Indenture and that the waiver
set forth in this Section 10.06 is knowingly made in contemplation of such
benefits.
SECTION 10.07. Execution of Guarantees.
-----------------------
To evidence its guarantee to the Securityholders set forth in this
Article Ten, each Guarantor shall execute a Guarantee in substantially the form
of Exhibit G attached hereto, which shall be endorsed on each Security ordered
---------
to be authenticated and delivered by the Trustee. Each Guarantor agrees that its
Guarantee set forth in this Article Ten shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of such
Guarantee as well as a supplemental indenture as required by Section 4.18. Each
such Guarantee shall be signed on behalf of each Guarantor by two Officers, or
an Officer and an Assistant Secretary or one Officer shall sign and one Officer
or an Assistant Secretary (each of whom shall, in each case, have been duly
authorized by all requisite corporate actions) shall attest to such Guarantee
prior to the authentication of the Security on which it is endorsed, and the
delivery of such Security by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of such Guarantee on behalf of such
Guarantor. Such signatures upon the Guarantee may be by manual or facsimile
signature of such officers and may be imprinted or otherwise reproduced on the
Guarantee, and in case any such officer who shall have signed the Guarantee
shall cease to be such officer before the Security on which such Guarantee is
endorsed shall have been authenticated and delivered by the Trustee or disposed
of by the Company, such Security nevertheless may be authenticated and delivered
or disposed of as though the person who signed the Guarantee had not ceased to
be such officer of the Guarantor.
SECTION 10.08. Waiver of Stay, Extension or Usury Laws.
---------------------------------------
Each Guarantor covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law that would prohibit or forgive each such Guarantor from
performing its Guarantee as contemplated herein, wherever enacted, now or at any
time hereafter in force, or which may
-104-
affect the covenants or the performance of this Indenture; and (to the extent
that it may lawfully do so) each such Guarantor hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.
ARTICLE ELEVEN
MISCELLANEOUS
SECTION 11.01. TIA Controls.
------------
If any provision of this Indenture limits, qualifies, or conflicts
with the duties imposed by operation of Section 318(c) of the TIA, the imposed
duties shall control.
SECTION 11.02. Notices.
-------
Any notices or other communications required or permitted hereunder
shall be in writing, and shall be sufficiently given if made by hand delivery,
by telecopier or registered or certified mail, postage prepaid, return receipt
requested, addressed as follows:
if to the Company or a Guarantor:
Stoneridge, Inc.
0000 Xxxx Xxxxxx Xxxxxx
Xxxxxx, Xxxx 00000
Attention: Xxxxx X. Xxxxx
Facsimile: (000) 000-0000
with a copy to:
Xxxxx & Xxxxxxxxx LLP
3200 National City Center
0000 Xxxx Xxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000
Attention: Xxxxx X. Xxxxx, Esq.
Facsimile: (000) 000-0000
-105-
if to the Trustee:
Fifth Third Bank
MD 10AT60
00 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxxxxxx, Xxxx 00000
Attention: Corporate Trust Administration
Facsimile: (000) 000-0000
Each of the Company and the Trustee by written notice to each other
such Person may designate additional or different addresses for notices to such
Person. Any notice or communication to the Company or a Guarantor or the Trustee
shall be deemed to have been given or made as of the date so delivered if
personally delivered; when receipt is acknowledged, if telecopied; and five (5)
calendar days after mailing if sent by registered or certified mail, postage
prepaid (except that a notice of change of address shall not be deemed to have
been given until actually received by the addressee).
Any notice or communication mailed to a Securityholder shall be mailed
to him by first class mail or other equivalent means at his address as it
appears on the registration books of the Registrar and shall be sufficiently
given to him if so mailed within the time prescribed.
Failure to mail a notice or communication to a Securityholder or any
defect in it shall not affect its sufficiency with respect to other
Securityholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.
SECTION 11.03. Communications by Holders with Other Holders.
--------------------------------------------
Securityholders may communicate pursuant to TIA (S) 312(b) with other
Securityholders with respect to their rights under this Indenture, the
Securities or any Guarantees. The Company, the Trustee, the Registrar and any
other Person shall have the protection of TIA (S) 312(c).
SECTION 11.04. Certificate and Opinion as to Conditions Precedent.
--------------------------------------------------
Upon any request or application by the Company to the Trustee to take
any action under this Indenture, the Company shall furnish to the Trustee at the
request of the Trustee:
-106-
(1) an Officers' Certificate, in form and substance
satisfactory to the Trustee, stating that, in the opinion of the
signers, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with;
(2) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with; and
(3) in the case of conditions precedent compliance with which
is subject to verification by accountants, a certificate or opinion of
an accountant in compliance with TIA (s) 314(c)(3).
SECTION 11.05. Statements Required in Certificate or Opinion.
----------------------------------------------
Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture, other than the Officers'
Certificate required by Section 4.08, shall include:
(1) a statement that the person making such certificate or
opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
(3) a statement that, in the opinion of such person, he has
made such examination or investigation as is necessary to enable him to
express an informed opinion as to whether or not such covenant or
condition has been complied with; and
(4) a statement as to whether or not, in the opinion of each
such person, such condition or covenant has been complied with;
provided, however, that with respect to matters of fact an Opinion of
-------- -------
Counsel may rely on an Officers' Certificate or certificates of public
officials.
SECTION 11.06. Rules by Trustee, Paying Agent, Registrar.
-----------------------------------------
The Trustee, Paying Agent or Registrar may make reasonable
rules for its functions.
-107-
SECTION 11.07. Legal Holidays.
--------------
If a payment date is not a Business Day, payment may be made on the
next succeeding day that is a Business Day with the same force and effect as if
made on such payment date.
SECTION 11.08. Governing Law.
-------------
THIS INDENTURE, THE SECURITIES AND ANY GUARANTEES WILL BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK BUT WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
Each of the parties hereto agrees to submit to the jurisdiction of the courts of
the State of New York in any action or proceeding arising out of or relating to
this Indenture.
SECTION 11.09. No Adverse Interpretation of Other Agreements.
---------------------------------------------
This Indenture may not be used to interpret another indenture, loan or
debt agreement of any of the Company or any of its Subsidiaries or any
Guarantor. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.
SECTION 11.10. No Recourse Against Others.
--------------------------
A director, officer, employee, stockholder or incorporator, as such,
of the Company or any of its Subsidiaries or any Guarantor shall not have any
liability for any obligations of the Company or any Guarantor under the
Securities, this Indenture or any Guarantee or for any claim based on, in
respect of or by reason of such obligations or their creations. Each
Securityholder by accepting a Security waives and releases all such liability.
Such waiver and release are part of the consideration for the issuance of the
Securities.
SECTION 11.11. Successors.
----------
All agreements of the Company and any Guarantors in this Indenture,
the Securities and any Guarantees shall bind their respective successors. All
agreements of the Trustee in this Indenture shall bind its successor.
-108-
SECTION 11.12. Duplicate Originals.
-------------------
All parties may sign any number of copies of this Indenture. Each
signed copy or counterpart shall be an original, but all of them together shall
represent the same agreement.
SECTION 11.13. Severability.
------------
In case any one or more of the provisions in this Indenture, in the
Securities or in any Guarantee shall be held invalid, illegal or unenforceable,
in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and of the remaining provisions shall not
in any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law.
SECTION 11.14. Table of Contents, Headings, Etc.
--------------------------------
The table of contents, cross-reference sheet and headings of the
Articles and Sections of this Indenture have been inserted for convenience of
reference only, and are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.
S-1
SIGNATURES
----------
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed as of the date first written above.
Company:
-------
STONERIDGE, INC.
By: /s/ Xxxxx X. Xxxxx
-------------------------------
Name: Xxxxx X. Xxxxx
Title: Vice President and Chief Financial
Officer
Guarantors:
----------
STONERIDGE CONTROL DEVICES, INC.
By: /s/ Xxxxx X. Xxxxx
-------------------------------
Name: Xxxxx X. Xxxxx
Title: Treasurer
STONERIDGE ELECTRONICS, INC.
By: /s/ Xxxxx X. Xxxxx
-------------------------------
Name: Xxxxx X. Xxxxx
Title: Vice President
S-2
Trustee:
-------
FIFTH THIRD BANK,
as Trustee
By: /s/ Xxxxxxxxx X. Xxxxxx
----------------------------------
Name: Xxxxxxxxx X. Xxxxxx
Title: Vice President
EXHIBIT A
---------
[FORM OF SERIES A SECURITY]
[INSERT PRIVATE PLACEMENT LEGEND]
[INSERT GLOBAL SECURITY LEGEND, IF APPLICABLE]
STONERIDGE, INC.
11 1/2% Senior Notes due 2012, Series A
CUSIP No.: [_]
No. [_] $[_]
STONERIDGE, INC., an Ohio corporation (the "Company", which term
-------
includes any successor corporation), for value received promises to pay to Cede
& Co. or registered assigns, the principal sum of [_] Dollars, on May 1, 2012.
Interest Payment Dates: May 1 and November 1, commencing [ ].
Record Dates: April 15 and October 15.
Reference is made to the further provisions of this Security contained
herein, which will for all purposes have the same effect as if set forth at this
place.
A-1
IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officers.
Dated: [ ]
STONERIDGE, INC.
By: _________________________________
Name:
Title:
By: _________________________________
Name:
Title:
A-2
This is one of the 11 1/2% Senior Notes due 2012, Series A, described
in the within-mentioned Indenture.
Dated: [ ] FIFTH THIRD BANK,
as Trustee
By: _____________________________
Authorized Signatory
A-3
(REVERSE OF SECURITY)
STONERIDGE, INC.
11 1/2% Senior Notes due 2012, Series A
1. Interest.
--------
STONERIDGE INC., an Ohio corporation (the "Company"), promises to pay
-------
interest on the principal amount of this Security at the rate of 11.5% per
---
annum. The Company will pay interest semi-annually on May 1 and November 1 of
-----
each year (an "Interest Payment Date"), commencing [ ]. Interest on
---------------------
the Securities will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from [ ]. Interest will be
computed on the basis of a 360-day year of twelve 30-day months.
The Company shall pay interest on overdue principal from time to time
on demand at the rate borne by the Securities plus 2% and on overdue
installments of interest (without regard to any applicable grace periods) to the
extent lawful.
2. Method of Payment.
-----------------
The Company shall pay interest on the Securities (except defaulted
interest) to the persons who are the registered Holders at the close of business
on the Record Date immediately preceding the Interest Payment Date even if the
Securities are canceled on registration of transfer or registration of exchange
after such Record Date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. The Company may deliver any such interest
payment to the Paying Agent or to a Holder at the Holder's registered address.
3. Paying Agent and Registrar.
--------------------------
Initially, Fifth Third Bank (the "Trustee") will act as Paying Agent
-------
and Registrar. The Company may change any Paying Agent, Registrar or
co-Registrar without notice to the Holders.
A-4
4. Indenture and Guarantees.
------------------------
The Company issued the Securities under an Indenture, dated as of May
1, 2002 (the "Indenture"), among the Company, the Guarantors and the Trustee.
---------
Capitalized terms herein are used as defined in the Indenture unless otherwise
defined herein. The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. (S)(S) 77aaa-77bbbb) (the "TIA"), as in effect
---
on the date of the Indenture until such time as the Indenture is qualified under
the TIA, and thereafter as in effect on the date on which the Indenture is
qualified under the TIA. Notwithstanding anything to the contrary herein, the
Securities are subject to all such terms, and Holders of Securities are referred
to the Indenture and the TIA for a statement of them. The Securities are not
limited in aggregate principal amount. The Securities are general unsecured
obligations of the Company. Payment on each Security is unconditionally
guaranteed on a senior unsecured basis, jointly and severally, by the Guarantors
pursuant to Article Ten of the Indenture.
5. Optional Redemption.
-------------------
The Securities will be redeemable, at the Company's option, in whole
at any time or in part from time to time, on and after May 1, 2007 upon not less
than 30 nor more than 60 days' notice, at the following redemption prices
(expressed as percentages of the principal amount thereof) if redeemed during
the twelve-month period commencing on May 1 of the applicable year set forth
below, plus, in each case, accrued and unpaid interest, if any, to the date of
redemption:
Year Percentage
---- ----------
2007 ....................................... 105.750%
2008 ....................................... 103.833%
2009 ....................................... 101.917%
2010 and thereafter ........................ 100.000%
6. Optional Redemption upon Public Equity Offerings.
------------------------------------------------
At any time, or from time to time, on or prior to May 1, 2005, the
Company may, at its option, use all or any portion of the net cash proceeds of
one or more Public Equity Offerings (as defined below) to redeem up to 35% of
the aggregate principal amount of the Securities issued at a redemption price
equal to 111.5% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of redemption; provided that
--------
A-5
at least 65% of the aggregate principal amount of Securities issued remains
outstanding immediately after any such redemption. In order to effect the
foregoing redemption with the proceeds of any Public Equity Offering, the
Company shall make such redemption not more than 180 days after the consummation
of any such Public Equity Offering.
7. Notice of Redemption.
--------------------
Notice of redemption will be mailed at least 30 days but not more than
60 days before the Redemption Date to each Holder of Securities to be redeemed
at such Holder's registered address. Securities in denominations of $1,000 may
be redeemed only in whole. The Trustee may select for redemption portions (equal
to $1,000 or any integral multiple thereof) of the principal of Securities that
have denominations larger than $1,000.
If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the
principal amount thereof to be redeemed. A new Security in a principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. On and after the Redemption
Date, interest will cease to accrue on Securities or portions thereof called for
redemption.
8. Change of Control Offer.
-----------------------
Upon the occurrence of a Change of Control, the Company will be
required to offer to purchase all of the outstanding Securities at a purchase
price equal to 101% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of repurchase.
9. Limitation on Disposition of Assets.
-----------------------------------
The Company is, subject to certain conditions, obligated to make an
offer to purchase Securities at 100% of their principal amount plus accrued and
unpaid interest to the date of repurchase with certain net cash proceeds of
certain sales or other dispositions of assets in accordance with the Indenture.
10. Denominations; Transfer; Exchange.
---------------------------------
The Securities are in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder shall
register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may
A-6
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay certain transfer taxes or similar governmental
charges payable in connection therewith as permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Securities or
portions thereof selected for redemption, except the unredeemed portion of any
security being redeemed in part.
11. Persons Deemed Owners.
---------------------
The registered Holder of a Security shall be treated as the owner of
it for all purposes.
12. Unclaimed Funds.
---------------
If funds for the payment of principal or interest remain unclaimed for
two years, the Trustee and the Paying Agent will repay the funds to the Company
at its request. After that, all liability of the Trustee and such Paying Agent
with respect to such funds shall cease.
13. Legal Defeasance and Covenant Defeasance.
----------------------------------------
The Company may be discharged from its obligations under the Indenture
and the Securities except for certain provisions thereof, and may be discharged
from its obligations to comply with certain covenants contained in the Indenture
and the Securities, in each case upon satisfaction of certain conditions
specified in the Indenture.
14. Amendment; Supplement; Waiver.
-----------------------------
Subject to certain exceptions, the Indenture or the Securities may be
amended or supplemented with the written consent of the Holders of at least a
majority in aggregate principal amount of the Securities then outstanding, and
any existing Default or Event of Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. Without notice to or consent of any
Holder, the parties thereto may amend or supplement the Indenture or the
Securities to, among other things, cure any ambiguity, defect or inconsistency,
provide for uncertificated Securities in addition to or in place of certificated
Securities or comply with any requirements of the Commission in connection with
the qualification of the Indenture under the TIA, or make any other change that
does not materially adversely affect the rights of any Holder of a Security.
A-7
15. Restrictive Covenants.
---------------------
The Indenture contains certain covenants that, among other things,
limit the ability of the Company and certain of its subsidiaries to make
restricted payments, to incur indebtedness, to create liens, to issue preferred
or other capital stock of subsidiaries, to sell assets, to permit restrictions
on dividends and other payments by subsidiaries to the Company, to consolidate,
merge or sell all or substantially all of its assets, to engage in transactions
with affiliates or to engage in certain businesses. The limitations are subject
to a number of important qualifications and exceptions.
16. Defaults and Remedies.
---------------------
If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in aggregate principal amount of Securities then
outstanding may declare all the Securities to be due and payable immediately in
the manner and with the effect provided in the Indenture. Holders of Securities
may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee is not obligated to enforce the Indenture or the
Securities unless it has received indemnity satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, Holders of a majority
in aggregate principal amount of the Securities then outstanding to direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Securities notice of any continuing Default or Event of Default
(except a Default in payment of principal, premium or interest, including an
accelerated payment) if it determines that withholding notice is in their
interest.
17. Trustee Dealings with Company.
-----------------------------
The Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with the Company, its Subsidiaries, any Guarantor and their respective
Affiliates as if it were not the Trustee.
18. No Recourse Against Others.
--------------------------
No stockholder, director, officer, employee or incorporator, as such,
of the Company shall have any liability for any obligation of the Company under
the Securities or the Indenture or for any claim based on, in respect of or by
reason of, such obligations or their creation. Each Holder of a Security by
accepting a Security waives and releases all such li-
A-8
ability. The waiver and release are part of the consideration for the issuance
of the Securities.
19. Authentication.
--------------
This Security shall not be valid until the Trustee or authenticating
agent signs the certificate of authentication on this Security.
20. Abbreviations and Defined Terms.
-------------------------------
Customary abbreviations may be used in the name of a Holder of a
Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).
21. CUSIP Numbers.
-------------
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities as a convenience to the Holders of the Securities. No
representation is made as to the accuracy of such numbers as printed on the
Securities and reliance may be placed only on the other identification numbers
printed hereon.
22. Registration Rights; Additional Interest.
----------------------------------------
Pursuant to the Registration Rights Agreement, the Company will be
obligated upon the occurrence of certain events to consummate an exchange offer
pursuant to which the Holder of this Security shall have the right to exchange
this Series A Security for the Company's 11 1/2% Senior Notes due 2012, Series
B, which have been registered under the Securities Act, in like principal amount
and having terms identical in all material respects as the Series A Securities.
If the Company fails to fulfill certain of its obligations under the
Registration Rights Agreement, the Company will be obligated to pay, as
liquidated damages, additional interest on the Securities under the
circumstances and to the extent set forth in the Registration Rights Agreement.
The Company will furnish to any Holder of a Security upon written
request and without charge a copy of the Indenture. Requests may be made to
STONERIDGE, INC., 0000 Xxxx Xxx-
X-0
xxx Xxxxxx, Xxxxxx, Xxxx 00000, Attention: Chief Financial Officer.
A-10
ASSIGNMENT FORM
I or we assign and transfer this Security to
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code of assignee or transferee)
________________________________________________________________________________
(Insert Social Security or other identifying number of assignee or transferee)
and irrevocably appoint_________________________________________________________
agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated: _________________ Signed: ____________________
(Sign exactly as
name appears on the
other side of this
Security)
Signature Guarantee: __________________________________________________________
Participant in a recognized Signature Guarantee Medallion
Program (or other signature guarantor reasonably
acceptable to the Trustee)
A-11
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the
Company pursuant to Section 4.12 or Section 4.21 of the Indenture, check the
appropriate box:
Section 4.12 [_] Section 4.21 [_]
If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.12 or Section 4.21 of the
Indenture, state the amount: $_____________
Date: ________________ Your Signature: _________________________________________
(Sign exactly as your name appears on the
other side of this Security)
Signature Guarantee: __________________________________________________________
Participant in a recognized Signature Guarantee Medallion
Program (or other signature guarantor reasonably
acceptable to the Trustee)
A-12
EXHIBIT B
---------
[FORM OF SERIES B SECURITY]
[INSERT GLOBAL SECURITY LEGEND, IF APPLICABLE]
STONERIDGE, INC.
11 1/2% Senior Notes due 2012, Series B
CUSIP No.: [ ]
No. [ ] $[ ]
STONERIDGE, INC., an Ohio corporation (the "Company", which term
-------
includes any successor corporation), for value received promises to pay to Cede
& Co. or registered assigns, the principal sum of [ ] Dollars, on May 1,
2012.
Interest Payment Dates: May 1 and November 1, commencing [ ].
Record Dates: April 15 and October 15.
Reference is made to the further provisions of this Security contained
herein, which will for all purposes have the same effect as if set forth at this
place.
B-1
IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officers.
Dated:
STONERIDGE, INC.
By: _______________________________
Name:
Title:
By: _______________________________
Name:
Title:
B-2
This is one of the 11 1/2% Senior Notes due 2012, Series B, described
in the within-mentioned Indenture.
Dated: [ ] FIFTH THIRD BANK,
as Trustee
By: _____________________________________
Authorized Signatory
B-3
(REVERSE OF SECURITY)
STONERIDGE, INC.
11 1/2% Senior Notes due 2012, Series B
1. Interest.
--------
STONERIDGE INC., an Ohio corporation (the "Company"), promises to pay
-------
interest on the principal amount of this Security at the rate of 11.5% per
---
annum. The Company will pay interest semi-annually on May 1 and November 1 of
-----
each year (an "Interest Payment Date"), commencing [ ]. Interest on the
---------------------
Securities will accrue from the most recent date to which interest has been paid
or, if no interest has been paid, from [ ]. Interest will be computed
on the basis of a 360-day year of twelve 30-day months.
The Company shall pay interest on overdue principal from time to time
on demand at the rate borne by the Securities plus 2% and on overdue
installments of interest (without regard to any applicable grace periods) to the
extent lawful.
2. Method of Payment.
-----------------
The Company shall pay interest on the Securities (except defaulted
interest) to the persons who are the registered Holders at the close of business
on the Record Date immediately preceding the Interest Payment Date even if the
Securities are canceled on registration of transfer or registration of exchange
after such Record Date. Holders must surrender Securities to a Paying Agent to
collect principal payments. The Company shall pay principal and interest in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. The Company may deliver any such interest
payment to the Paying Agent or to a Holder at the Holder's registered address.
3. Paying Agent and Registrar.
--------------------------
Initially, Fifth Third Bank (the "Trustee") will act as Paying Agent
-------
and Registrar. The Company may change any Paying Agent, Registrar or
co-Registrar without notice to the Holders.
B-4
4. Indenture and Guarantees.
------------------------
The Company issued the Securities under an Indenture, dated as of May
1, 2002 (the "Indenture"), among the Company, the Guarantors and the Trustee.
---------
Capitalized terms herein are used as defined in the Indenture unless otherwise
defined herein. The terms of the Securities include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939 (15 U.S.C. (S)(S) 77aaa-77bbbb) (the "TIA"), as in effect
on the date of the Indenture until such time as the Indenture is qualified under
the TIA, and thereafter as in effect on the date on which the Indenture is
qualified under the TIA. Notwithstanding anything to the contrary herein, the
Securities are subject to all such terms, and Holders of Securities are referred
to the Indenture and the TIA for a statement of them. The Securities are not
limited in aggregate principal amount. The Securities are general unsecured
obligations of the Company. Payment on each Security is unconditionally
guaranteed on a senior unsecured basis, jointly and severally, by the Guarantors
pursuant to Article Ten of the Indenture.
5. Optional Redemption.
-------------------
The Securities will be redeemable, at the Company's option, in whole
at any time or in part from time to time, on and after May 1, 2007 upon not less
than 30 nor more than 60 days' notice, at the following redemption prices
(expressed as percentages of the principal amount thereof) if redeemed during
the twelve-month period commencing on May 1 of the applicable year set forth
below, plus, in each case, accrued and unpaid interest, if any, to the date of
redemption:
Year Percentage
---- ----------
2007 .................................... 105.750%
2008 .................................... 103.833%
2009 .................................... 101.917%
2010 and thereafter ..................... 100.000%
6. Optional Redemption upon Public Equity Offerings.
------------------------------------------------
At any time, or from time to time, on or prior to May 1, 2005, the
Company may, at its option, use all or any portion of the net cash proceeds of
one or more Public Equity Offerings (as defined below) to redeem up to 35% of
the aggregate principal amount of the Securities issued at a redemption price
equal to 111.5% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of redemption;
B-5
provided that at least 65% of the aggregate principal amount of Securities
--------
issued remains outstanding immediately after any such redemption. In order to
effect the foregoing redemption with the proceeds of any Public Equity Offering,
the Company shall make such redemption not more than 180 days after the
consummation of any such Public Equity Offering.
7. Notice of Redemption.
--------------------
Notice of redemption will be mailed at least 30 days but not more than
60 days before the Redemption Date to each Holder of Securities to be redeemed
at such Holder's registered address. Securities in denominations of $1,000 may
be redeemed only in whole. The Trustee may select for redemption portions (equal
to $1,000 or any integral multiple thereof) of the principal of Securities that
have denominations larger than $1,000.
If any Security is to be redeemed in part only, the notice of
redemption that relates to such Security shall state the portion of the
principal amount thereof to be redeemed. A new Security in a principal amount
equal to the unredeemed portion thereof will be issued in the name of the Holder
thereof upon cancellation of the original Security. On and after the Redemption
Date, interest will cease to accrue on Securities or portions thereof called for
redemption.
8. Change of Control Offer.
-----------------------
Upon the occurrence of a Change of Control, the Company will be
required to offer to purchase all of the outstanding Securities at a purchase
price equal to 101% of the principal amount thereof plus accrued and unpaid
interest, if any, to the date of repurchase.
9. Limitation on Disposition of Assets.
-----------------------------------
The Company is, subject to certain conditions, obligated to make an
offer to purchase Securities at 100% of their principal amount plus accrued and
unpaid interest to the date of repurchase with certain net cash proceeds of
certain sales or other dispositions of assets in accordance with the Indenture.
10. Denominations; Transfer; Exchange.
---------------------------------
The Securities are in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder shall
register the transfer of or exchange Securities in accordance with the
Indenture. The Registrar may
B-6
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay certain transfer taxes or similar governmental
charges payable in connection therewith as permitted by the Indenture. The
Registrar need not register the transfer of or exchange any Securities or
portions thereof selected for redemption, except the unredeemed portion of any
security being redeemed in part.
11. Persons Deemed Owners.
---------------------
The registered Holder of a Security shall be treated as the owner of
it for all purposes.
12. Unclaimed Funds.
---------------
If funds for the payment of principal or interest remain unclaimed for
two years, the Trustee and the Paying Agent will repay the funds to the Company
at its request. After that, all liability of the Trustee and such Paying Agent
with respect to such funds shall cease.
13. Legal Defeasance and Covenant Defeasance.
----------------------------------------
The Company may be discharged from its obligations under the Indenture
and the Securities except for certain provisions thereof, and may be discharged
from its obligations to comply with certain covenants contained in the Indenture
and the Securities, in each case upon satisfaction of certain conditions
specified in the Indenture.
14. Amendment; Supplement; Waiver.
-----------------------------
Subject to certain exceptions, the Indenture or the Securities may be
amended or supplemented with the written consent of the Holders of at least a
majority in aggregate principal amount of the Securities then outstanding, and
any existing Default or Event of Default or compliance with any provision may be
waived with the consent of the Holders of a majority in aggregate principal
amount of the Securities then outstanding. Without notice to or consent of any
Holder, the parties thereto may amend or supplement the Indenture or the
Securities to, among other things, cure any ambiguity, defect or inconsistency,
provide for uncertificated Securities in addition to or in place of certificated
Securities or comply with any requirements of the Commission in connection with
the qualification of the Indenture under the TIA, or make any other change that
does not materially adversely affect the rights of any Holder of a Security.
B-7
15. Restrictive Covenants.
---------------------
The Indenture contains certain covenants that, among other things,
limit the ability of the Company and certain of its subsidiaries to make
restricted payments, to incur indebtedness, to create liens, to issue preferred
or other capital stock of subsidiaries, to sell assets, to permit restrictions
on dividends and other payments by subsidiaries to the Company, to consolidate,
merge or sell all or substantially all of its assets, to engage in transactions
with affiliates or to engage in certain businesses. The limitations are subject
to a number of important qualifications and exceptions.
16. Defaults and Remedies.
---------------------
If an Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in aggregate principal amount of Securities then
outstanding may declare all the Securities to be due and payable immediately in
the manner and with the effect provided in the Indenture. Holders of Securities
may not enforce the Indenture or the Securities except as provided in the
Indenture. The Trustee is not obligated to enforce the Indenture or the
Securities unless it has received indemnity satisfactory to it. The Indenture
permits, subject to certain limitations therein provided, Holders of a majority
in aggregate principal amount of the Securities then outstanding to direct the
Trustee in its exercise of any trust or power. The Trustee may withhold from
Holders of Securities notice of any continuing Default or Event of Default
(except a Default in payment of principal, premium or interest, including an
accelerated payment) if it determines that withholding notice is in their
interest.
17. Trustee Dealings with Company.
-----------------------------
The Trustee under the Indenture, in its individual or any other
capacity, may become the owner or pledgee of Securities and may otherwise deal
with the Company, its Subsidiaries, any Guarantor and their respective
Affiliates as if it were not the Trustee.
18. No Recourse Against Others.
--------------------------
No stockholder, director, officer, employee or incorporator, as such,
of the Company shall have any liability for any obligation of the Company under
the Securities or the Indenture or for any claim based on, in respect of or by
reason of, such obligations or their creation. Each Holder of a Security by
accepting a Security waives and releases all such li-
B-8
ability. The waiver and release are part of the consideration for the issuance
of the Securities.
19. Authentication.
--------------
This Security shall not be valid until the Trustee or authenticating
agent signs the certificate of authentication on this Security.
20. Abbreviations and Defined Terms.
-------------------------------
Customary abbreviations may be used in the name of a Holder of a
Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship
and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).
21. CUSIP Numbers.
-------------
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be
printed on the Securities as a convenience to the Holders of the Securities. No
representation is made as to the accuracy of such numbers as printed on the
Securities and reliance may be placed only on the other identification numbers
printed hereon.
The Company will furnish to any Holder of a Security upon written
request and without charge a copy of the Indenture. Requests may be made to:
STONERIDGE, INC., 0000 Xxxx Xxxxxx Xxxxxx, Xxxxxx, Xxxx 00000, Attention: Chief
Financial Officer.
B-9
ASSIGNMENT FORM
I or we assign and transfer this Security to
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code of assignee or transferee)
________________________________________________________________________________
(Insert Social Security or other identifying number of assignee or transferee)
and irrevocably appoint ________________________________________________________
agent to transfer this Security on the books of the Company. The agent may
substitute another to act for him.
Dated: _________________ Signed: ____________________
(Sign exactly as name
appears on the other
side of this Security)
Signature Guarantee:____________________________________________________________
Participant in a recognized Signature Guarantee Medallion
Program (or other signature guarantor program reasonably
acceptable to the Trustee)
B-10
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Security purchased by the Company
pursuant to Section 4.12 or Section 4.21 of the Indenture, check the appropriate
box:
Section 4.12 [_] Section 4.21 [_]
If you want to elect to have only part of this Security purchased by
the Company pursuant to Section 4.12 or Section 4.21 of the Indenture, state the
amount: $_____________
Date: ________________ Your Signature:__________________________________
(Sign exactly as your name appears
on the other side of this Security)
Signature Guarantee:____________________________________________________
Participant in a recognized Signature Guarantee
Medallion Program (or other signature guarantor program
reasonably acceptable to the Trustee)
B-11
EXHIBIT C-1
-----------
FORM OF PRIVATE PLACEMENT LEGEND
Any Security authenticated and delivered hereunder that is a
Restricted Security shall bear a legend (which would be in addition to any other
legends required in the case of a Global Security) in substantially the
following form:
THE ISSUANCE AND SALE OF THIS SECURITY (AND ANY GUARANTEE
THEREOF) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT") AND NEITHER THIS SECURITY (NOR ANY
GUARANTEE THEREOF) NOR ANY INTEREST OR PARTICIPATION HEREIN (OR
THEREIN) MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION
OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAWS. THE HOLDER HEREOF, BY ITS ACCEPTANCE OF THIS SECURITY,
AGREES FOR THE BENEFIT OF THE ISSUER THAT THIS SECURITY MAY NOT BE
OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED PRIOR TO THE EXPIRATION
OF THE HOLDING PERIOD APPLICABLE THERETO UNDER RULE 144(k) UNDER THE
SECURITIES ACT WHICH IS APPLICABLE TO THIS SECURITY (THE "RESALE
RESTRICTION TERMINATION DATE") OTHER THAN (1) TO THE ISSUER OR ITS
SUBSIDIARIES, (2) SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A UNDER THE SECURITIES ACT ("RULE 144A"), TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A "QUALIFIED
INSTITUTIONAL BUYER" WITHIN THE MEANING OF RULE 144A PURCHASING FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN
EACH CASE TO WHOM NOTICE IS GIVEN THAT THE RESALE, PLEDGE OR OTHER
TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A (AS INDICATED BY THE
BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER, IF
APPLICABLE), (3) TO A NON-"U.S. PERSON" IN AN "OFFSHORE TRANSACTION"
(AS SUCH TERMS ARE DEFINED IN REGULATION S UNDER THE SECURITIES ACT) IN
ACCORDANCE WITH REGULATION S UNDER THE SECURITIES ACT (AS INDICATED BY
THE BOX CHECKED BY THE TRANSFEROR ON THE CERTIFICATE OF TRANSFER, IF
APPLICABLE), (4) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, INCLUDING THE
EXEMPTION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT, IF AVAILABLE,
OR
C-1-1
(5) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, SUBJECT IN EACH OF THE FOREGOING CASES TO ANY
REQUIREMENT OF LAW THAT THE DISPOSITION OF ITS PROPERTY OR THE PROPERTY
OF SUCH INVESTOR ACCOUNT OR ACCOUNTS BE AT ALL TIMES WITHIN ITS OR
THEIR CONTROL, AND SUBJECT TO THE RIGHT OF THE ISSUER OR THE TRUSTEE
FOR THE SECURITIES PRIOR TO ANY SUCH SALE, PLEDGE OR OTHER TRANSFER
PURSUANT TO CLAUSE (4) ABOVE TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATIONS AND/OR OTHER INFORMATION SATISFACTORY TO EACH
OF THEM. THIS LEGEND WILL BE REMOVED UPON REQUEST OF THE HOLDER ON OR
AFTER THE RESALE RESTRICTION TERMINATION DATE.
C-1-2
EXHIBIT C-2
-----------
FORM OF LEGEND FOR GLOBAL SECURITIES
Any Global Security authenticated and delivered hereunder
shall bear a legend (which would be in addition to any other legends required in
the case of a Restricted Security) in substantially the following form:
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A
DEPOSITORY OR A NOMINEE OF A DEPOSITORY OR A SUCCESSOR DEPOSITORY. THIS
SECURITY IS NOT EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A
PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE EXCEPT IN THE LIMITED
CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS
SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE
DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE
DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY
BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
("DTC"), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE
NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE
OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED
OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
C-2-1
EXHIBIT D
---------
CERTIFICATE TO BE DELIVERED UPON EXCHANGE
OR REGISTRATION OF TRANSFER OF SECURITIES
Re: 11 1/2% Senior Notes due 2012,
Series A, and 11 1/2% Senior Notes due
2012, Series B (the "Securities"),
--------------
of Stoneridge, Inc.
-------------------
This Certificate relates to $_______ principal amount of
Securities held in the form of* [_] a beneficial interest in a _________
Global Security or* [_] Physical Securities by _________ (the "Transferor").
The Transferor:*
[_] has requested by written order that the Registrar exchange
or register the transfer of the Physical Security or Physicial Securities (or
the portion thereof indicated above) for a beneficial interest in the applicable
Global Security and make, or direct the Depositary to make, an endorsement on
the applicable Global Security to reflect an increase in the aggregate amount of
the Securities represented by the Global Security;
[_] has requested by written order that the Registrar exchange
or register the transfer of its beneficial interest in the Global Security (or
portion thereof indicated above) held by the Depository for one or more Physical
Securities in definitive, registered form of authorized denominations and an
aggregate amount equal to its beneficial interest in such Global Security (or
the portion thereof indicated above) and make, or direct the Depositary to make,
an endorsement on the Global Security to reflect an increase in the aggregate
amount of the Securities represented by the Global Security; or
[_] has requested by written order that the Registrar exchange
or register the transfer of a Physical Security or Physical Securities.
In connection with such request and in respect of each such
Security, the Transferor does hereby certify that the Transferor is familiar
with the Indenture relating to the above captioned Securities and the
restrictions on transfers thereof as provided in Section 2.16 of such Indenture,
and that the
D-1
transfer of this Securities does not require registration under the Securities
Act of 1933, as amended (the "Act") because*:
[_] Such Security is being acquired for the Transferor's own
account, without transfer (in satisfaction of Section 2.16(a)(II)(A) or Section
2.16(d)(i)(A) of the Indenture).
[_] Such Security is being transferred to a "qualified
institutional buyer" (as defined in Rule 144A under the Act), in reliance on
Rule 144A.
[_] Such Security is being transferred to an institutional
"accredited investor" (within the meaning of subparagraphs (a)(1), (2), (3) or
(7) of Rule 501 under the Act.
[_] Such Security is being transferred in reliance on
Regulation S under the Act
[_] Such Security is being transferred in reliance on Rule 144
under the Act.
[_] Such Security is being transferred in reliance on and in
compliance with an exemption from the registration requirements of the Act other
than Rule 144A, Regulation S or Rule 144 under the Act to a person other than an
institutional "accredited investor."
_____________________________
[INSERT NAME OF TRANSFEROR]
By: ________________________
[Authorized Signatory]
Date:______________
*Check applicable box.
D-2
EXHIBIT E
---------
Form of Certificate To Be
Delivered in Connection with
Transfers to Institutional Accredited Investors
-----------------------------------------------
________________, _____
Fifth Third Bank
MD 10AT60
00 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxxxxxx, Xxxx 00000
Attention: Corporate Trust Administration
Re: Stoneridge, Inc. (the "Company") Indenture
(the "Indenture") relating to
11 1/2% Senior Notes due 2012,
Series A, or 11 1/2% Senior Notes due
2012, Series B
------------------------------------------
Ladies and Gentlemen:
In connection with our proposed purchase of 11 1/2% Senior Notes due
2012, Series A, or 11 1/2% Senior Notes due 2012, Series B (the "Securities"),
of Stoneridge, Inc. (the "Company"), we confirm that:
1. We have received such information as we deem necessary in order
to make our investment decision.
2. We understand that any subsequent transfer of the Securities is
subject to certain restrictions and conditions set forth in the Indenture and
the undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Securities except in compliance with, such restrictions and
conditions and the Securities Act of 1933, as amended (the "Securities Act").
3. We understand that the offer and sale of the Securities have not
been registered under the Securities Act, and that the Securities may not be
offered or sold within the United States or to, or for the account or benefit
of, U.S. persons except as permitted in the following sentence. We agree for the
benefit of the issuer that this Security may not be offered, sold, pledged or
otherwise transferred prior to the expiration of the holding period applicable
thereto under Rule
E-1
144(k) under the Securities Act (the "Resale Restriction Termination Date")
other than (1) to the issuer or its subsidiaries, (2) so long as this Security
is eligible for resale pursuant to Rule 144A under the Securities Act ("Rule
144A"), to a person whom the seller reasonably believes is a "qualified
institutional buyer" within the meaning of Rule 144A purchasing for its own
account or for the account of a qualified institutional buyer, in each case to
whom notice is given that the resale, pledge or other transfer is being made in
reliance on Rule 144A (as indicated by the box checked by the transferor on the
certificate of transfer if applicable, (3) to a non-"U.S. person" in an
"offshore transaction" (as such terms are defined in Regulation S under the
Securities Act) in accordance with Regulation S under the Securities Act (as
indicated by the box checked by the transferor on the certificate of transfer if
applicable, (4) pursuant to any other available exemption from the registration
requirements of the Securities Act, including the exemption provided by Rule 144
under the Securities Act, if available, or (5) pursuant to an effective
registration statement under the Securities Act, subject in each of the
foregoing cases to any requirement of law that the disposition of its property
or the property of such investor account or accounts be at all times within its
or their control, and subject to the right of the issuer or the Trustee for the
Securities prior to any such sale, pledge or other transfer pursuant to clause
(4) above to require the delivery of an opinion of counsel, certifications
and/or other information satisfactory to each of them. This legend will be
removed upon request of the holder on or after the Resale Restriction
Termination Date.
4. We understand that, on any proposed resale of Securities, we will
be required to furnish to the Trustee and the Company, such certification, legal
opinions and other information as the Trustee and the Company may reasonably
require to confirm that the proposed sale complies with the foregoing
restrictions. We further understand that the Securities purchased by us will
bear a legend to the foregoing effect.
5. We are an institutional "accredited investor" (as defined in Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have
such knowledge and experience in financial and business matters as to be capable
of evaluating the merits and risks of our investment in the Securities, and we
and any accounts for which we are acting are each able to bear the economic risk
of our or their investment, as the case may be.
6. We are acquiring the Securities purchased by us for our account
or for one or more accounts (each of which is
E-2
an institutional "accredited investor") as to each of which we exercise sole
investment discretion.
E-3
You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceeding or official inquiry with respect
to the matters covered hereby.
Very truly yours,
[Name of Transferee]
By: __________________________________
[Authorized Signatory]
E-4
EXHIBIT F
---------
Form of Certificate To Be
Delivered in Connection
with Regulation S Transfers
---------------------------
_________________, ____
Fifth Third Bank
MD 10AT60
00 Xxxxxxxx Xxxxxx Xxxxx
Xxxxxxxxxx, Xxxx 00000
Attention: Corporate Trust Administration
Re: Stoneridge, Inc. (the "Company")
11 1/2% Senior Notes due 2012,
Series A, and 11 1/2% Senior Notes
due 2012, Series B (the "Securities")
-------------------------------------
Dear Sirs:
In connection with our proposed sale of $____________ aggregate
principal amount of the Securities, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the Securities Act of
1933, as amended (the "Securities Act"), and, accordingly, we represent that:
(1) the offer of the Securities was not made to a person in the United
States;
(2) either (a) at the time the buy offer was originated, the
transferee was outside the United States or we and any person acting on our
behalf reasonably believed that the transferee was outside the United
States, or (b) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither we nor
any person acting on our behalf knows that the transaction has been
pre-arranged with a buyer in the United States;
(3) no directed selling efforts have been made in the United States in
contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable;
F-1
(4) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act; and
(5) we have advised the transferee of the transfer restrictions
applicable to the Securities.
In addition, if the sale is made during a distribution ompliance
period and the provisions of Rule 903(c)(3) or Rule 904(c)(1) of Regulation S
are applicable thereto, we confirm that such sale has been made in accordance
with the applicable provisions of Rule 903(c)(3) or Rule 904(c)(1), as the case
may be.
You and the Company are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any interested
party in any administrative or legal proceedings or official inquiry with
respect to the matters covered hereby. Defined terms used herein without
definition have the respective meanings provided in Regulation S.
Very truly yours,
[Name of Transferor]
By: _______________________________
[Authorized Signatory]
F-2
EXHIBIT G
---------
[FORM OF GUARANTEE]
The undersigned Guarantor (as defined in the Indenture dated as
of May 1, 2002 among Stoneridge, Inc., an Ohio corporation (the "Company"), the
Guarantors named therein and Fifth Third Bank, as trustee (the "Trustee") (as
amended or supplemented, the "Indenture")), unconditionally guarantees on a
senior unsecured basis (such guarantee by the Guarantor being referred to herein
as a "Guarantee") (i) the due and punctual payment of the principal of and
interest on the Securities (as defined in the Indenture), whether at maturity,
by acceleration or otherwise, the due and punctual payment of interest on the
overdue principal and interest, if any, on the Securities, to the extent lawful,
and the due and punctual performance of all other obligations of the Company to
the Holders (as defined in the Indenture) or the Trustee all in accordance with
the terms set forth in Article Ten of the Indenture and (ii) in case of any
extension of time of payment or renewal of any Securities or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise.
No stockholder, officer, director or incorporator, as such, past,
present or future, of the Guarantor shall have any liability under the Guarantee
by reason of his or its status as such stockholder, officer, director or
incorporator.
The Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the Securities upon which the
Guarantee is noted shall have been executed by the Trustee under the Indenture
by the manual signature of one of its authorized officers.
[GUARANTOR]
By: ______________________________________
Name:
Title:
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