Exhibit 4.2
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AirGate PCS, Inc.
AGW Leasing Company, Inc.
AirGate Network Services, LLC
AirGate Service Company, Inc.
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$159,034,600 AGGREGATE PRINCIPAL AMOUNT
9?% SENIOR SUBORDINATED SECURED NOTES DUE 2009
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INDENTURE
DATED AS OF FEBRUARY 20, 2004
=====================
The Bank of New York
Trustee
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CHI:1331989.1
CROSS-REFERENCE TABLE*
Trust Indenture Act Section Section Indenture
310 (a)(1)............................................................7.10
(a)(2)............................................................7.10
(a)(3)............................................................N.A.
(a)(4)............................................................N.A.
(a)(5)............................................................7.10
(b)..........................................................7.3; 7.10
(c)...............................................................N.A.
311 (a)...............................................................7.11
(b)...............................................................7.11
(c)...............................................................N.A.
312 (a)................................................................2.5
(b)...............................................................11.3
(c)...............................................................11.3
313 (a)................................................................7.6
(b)(1).............................................................7.6
(b)(2)........................................................7.6; 7.7
(c)...........................................................7.6;11.2
(d)................................................................7.6
314 (a)...........................................................4.3;11.5
(b)...............................................................N.A.
(c)(1)............................................................11.4
(c)(2)............................................................11.4
(c)(3)............................................................N.A.
(d)...............................................................N.A.
(e)...............................................................11.5
(f)...............................................................N.A.
315 (a)................................................................7.1
(b)...........................................................7.5,11.2
(c)................................................................7.1
(d)........................................................... ....7.1
(e)............................................................ ..6.11
316 (a)(last sentence).................................................2.9
(a)(1)(A)..........................................................6.5
316 (a)(1)(B)..........................................................6.4
(a)(2)............................................................2.13
(b)................................................................6.7
(c)...............................................................N.A.
317 (a)(1).............................................................6.8
(a)(2).............................................................6.9
(b)................................................................2.4
318 (a)...............................................................11.1
(b)...............................................................N.A.
(c)...............................................................11.1
N.A. means not applicable.
*This Cross-Reference Table is not part of the Indenture.
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE........................1
SECTION 1.1 DEFINITIONS..........................................1
SECTION 1.2 OTHER DEFINITIONS...................................21
SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT...22
SECTION 1.4 RULES OF CONSTRUCTION...............................22
ARTICLE II THE NOTES.........................................................23
SECTION 2.1 FORM AND DATING.....................................23
SECTION 2.2 EXECUTION AND AUTHENTICATION........................24
SECTION 2.3 REGISTRAR AND PAYING AGENT..........................25
SECTION 2.4 PAYING AGENT TO HOLD MONEY IN TRUST.................26
SECTION 2.5 HOLDER LISTS........................................26
SECTION 2.6 BOOK-ENTRY PROVISIONS FOR GLOBAL SECURITIES.........26
SECTION 2.7 REPLACEMENT NOTES...................................29
SECTION 2.8 OUTSTANDING NOTES...................................30
SECTION 2.9 TREASURY NOTES......................................30
SECTION 2.10 TEMPORARY NOTES.....................................30
SECTION 2.11 CANCELLATION........................................30
SECTION 2.12 DEFAULTED INTEREST..................................31
SECTION 2.13 RECORD DATE.........................................31
SECTION 2.14 COMPUTATION OF INTEREST.............................31
SECTION 2.15 CUSIP NUMBER........................................31
ARTICLE III REDEMPTION AND PREPAYMENT.......................................32
SECTION 3.1 NOTICES TO TRUSTEE..................................32
SECTION 3.2 SELECTION OF NOTES TO BE REDEEMED...................32
SECTION 3.3 NOTICE OF REDEMPTION................................33
SECTION 3.4 EFFECT OF NOTICE OF REDEMPTION......................33
SECTION 3.5 DEPOSIT OF REDEMPTION OF PURCHASE PRICE.............34
SECTION 3.6 NOTES REDEEMED IN PART..............................34
SECTION 3.7 OPTIONAL REDEMPTION.................................34
SECTION 3.8 MANDATORY REDEMPTION................................35
SECTION 3.9 REPURCHASE OFFERS...................................35
ARTICLE IV COVENANTS 37
SECTION 4.1 PAYMENT OF NOTES....................................37
SECTION 4.2 MAINTENANCE OF OFFICE OR AGENCY.....................37
SECTION 4.3 COMMISSION REPORTS..................................38
SECTION 4.4 COMPLIANCE CERTIFICATE..............................38
SECTION 4.5 TAXES...............................................39
SECTION 4.6 STAY, EXTENSION AND USURY LAWS......................39
SECTION 4.7 LIMITATION ON RESTRICTED PAYMENTS...................39
SECTION 4.8 LIMITATION ON DIVIDENDS AND OTHER PAYMENT
RESTRICTIONS AFFECTING SUBSIDIARIES.................43
SECTION 4.9 LIMITATION ON INCURRENCE OF INDEBTEDNESS
AND ISSUANCE OF PREFERRED STOCK.....................45
SECTION 4.10 ASSET SALES.........................................47
SECTION 4.11 LIMITATION ON TRANSACTIONS WITH AFFILIATES..........49
SECTION 4.12 LIMITATION ON LIENS.................................50
SECTION 4.13 LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.......50
SECTION 4.14 OFFER TO PURCHASE UPON CHANGE OF CONTROL............51
SECTION 4.15 CORPORATE EXISTENCE.................................52
SECTION 4.16 LIMITATION ON ISSUANCES AND SALES OF
EQUITY INTERESTS IN WHOLLY OWNED
RESTRICTED SUBSIDIARIES.............................52
SECTION 4.17 BUSINESS ACTIVITIES.................................52
SECTION 4.18 PAYMENT FOR CONSENTS................................53
SECTION 4.19 LIMITATION ON SENIOR SUBORDINATED DEBT..............53
SECTION 4.20 ADDITIONAL GUARANTEES...............................53
SECTION 4.21 DESIGNATION OF RESTRICTED AND UNRESTRICTED
SUBSIDIARIES........................................53
SECTION 4.22 FURTHER INSTRUMENTS AND ACTS........................54
ARTICLE V SUCCESSORS 54
SECTION 5.1 MERGER, CONSOLIDATION OR SALE OF ASSETS.............54
SECTION 5.2 SUCCESSOR CORPORATION SUBSTITUTED...................55
ARTICLE VI DEFAULTS AND REMEDIES............................................56
SECTION 6.1 EVENTS OF DEFAULT...................................56
SECTION 6.2 ACCELERATION........................................58
SECTION 6.3 OTHER REMEDIES......................................58
SECTION 6.4 WAIVER OF PAST DEFAULTS.............................59
SECTION 6.5 CONTROL BY MAJORITY.................................59
SECTION 6.6 LIMITATION ON SUITS.................................59
SECTION 6.7 RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT.......60
SECTION 6.8 COLLECTION SUIT BY TRUSTEE..........................60
SECTION 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM....................60
SECTION 6.10 PRIORITIES..........................................60
SECTION 6.11 UNDERTAKING FOR COSTS...............................61
ARTICLE VII TRUSTEE 61
SECTION 7.1 DUTIES OF TRUSTEE...................................61
SECTION 7.2 RIGHTS OF TRUSTEE...................................62
SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE........................64
SECTION 7.4 TRUSTEE'S DISCLAIMER................................64
SECTION 7.5 NOTICE OF DEFAULTS..................................64
SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES..........64
SECTION 7.7 COMPENSATION AND INDEMNITY..........................65
SECTION 7.8 REPLACEMENT OF TRUSTEE..............................65
SECTION 7.9 SUCCESSOR TRUSTEE BY MERGER, ETC....................66
SECTION 7.10 ELIGIBILITY; DISQUALIFICATION.......................66
SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST AIRGATE...67
SECTION 7.12 TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM AIRGATE.67
SECTION 7.13 LIMITATION OF LIABILITY.............................67
ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE.......................68
SECTION 8.1 OPTION TO EFFECT LEGAL DEFEASANCE OR
COVENANT DEFEASANCE.................................68
SECTION 8.2 LEGAL DEFEASANCE AND DISCHARGE......................68
SECTION 8.3 COVENANT DEFEASANCE.................................69
SECTION 8.4 CONDITIONS TO LEGAL OR COVENANT DEFEASANCE..........69
SECTION 8.5 DEPOSITED MONEY AND GOVERNMENT SECURITIES
TO BE HELD IN TRUST; OTHER MISCELLANEOUS
PROVISIONS..........................................70
SECTION 8.6 REPAYMENT TO AIRGATE................................71
SECTION 8.7 REINSTATEMENT.......................................71
ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER.................................72
SECTION 9.1 WITHOUT CONSENT OF HOLDERS OF THE
NOTES...............................................72
SECTION 9.2 WITH CONSENT OF HOLDERS OF NOTES....................73
SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE ACT.................74
SECTION 9.4 REVOCATION AND EFFECT OF CONSENTS...................74
SECTION 9.5 NOTATION ON OR EXCHANGE OF NOTES....................75
SECTION 9.6 TRUSTEE TO SIGN AMENDMENTS, ETC.....................75
ARTICLE X SECOND-PRIORITY SECURITY DOCUMENTS................................75
SECTION 10.1 SECOND-PRIORITY SECURITY DOCUMENTS..................75
SECTION 10.2 RECORDING AND OPINIONS..............................76
SECTION 10.3 POSSESSION, USE AND RELEASE OF
COLLATERAL..........................................77
SECTION 10.4 CERTIFICATES OF THE COMPANY.........................77
SECTION 10.5 EXECUTION OF RELEASE BY TRUSTEE.....................79
SECTION 10.6 AUTHORIZATION OF ACTIONS TO BE TAKEN
BY THE TRUSTEE UNDER THE SECURITY DOCUMENTS.........79
SECTION 10.7 AUTHORIZATION OF RECEIPT OF FUNDS BY THE
TRUSTEE UNDER THE SECOND-PRIORITY SECURITY
DOCUMENTS...........................................80
SECTION 10.8 COLLATERAL AGENT....................................80
SECTION 10.9 SECURITY DOCUMENTS..................................80
SECTION 10.10 AUTHORIZATION OF OTHER INTERCREDITOR AGREEMENTS.....80
ARTICLE XI GUARANTEES.......................................................81
SECTION 11.1 GUARANTEES..........................................81
SECTION 11.2 EXECUTION AND DELIVERY OF GUARANTEE.................82
SECTION 11.3 SEVERABILITY........................................82
SECTION 11.4 SENIORITY OF GUARANTEES.............................83
SECTION 11.5 LIMITATION OF GUARANTORS' LIABILITY.................83
SECTION 11.6 GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS..83
SECTION 11.7 RELEASES FOLLOWING SALE OF ASSETS...................84
SECTION 11.8 RELEASE OF A GUARANTOR..............................84
SECTION 11.9 BENEFITS ACKNOWLEDGED...............................85
SECTION 11.10 FUTURE GUARANTORS...................................85
ARTICLE XII SUBORDINATION...................................................85
SECTION 12.1 AGREEMENT TO SUBORDINATE............................85
SECTION 12.2 LIQUIDATION; DISSOLUTION; BANKRUPTCY................85
SECTION 12.3 DEFAULT ON DESIGNATED SENIOR DEBT...................86
SECTION 12.4 PAYMENT PERMITTED IF NO DEFAULT.....................87
SECTION 12.5 NOTICE OF ACCELERATION OF SECURITIES................87
SECTION 12.6 WHEN DISTRIBUTION MUST BE PAID OVER.................87
SECTION 12.7 NOTICE BY AIRGATE...................................88
SECTION 12.8 SUBROGATION.........................................88
SECTION 12.9 RELATIVE RIGHTS.....................................88
SECTION 12.10 SUBORDINATION MAY NOT BE IMPAIRED BY AIRGATE........89
SECTION 12.11 DISTRIBUTION OR NOTICE TO
REPRESENTATIVE......................................89
SECTION 12.12 RIGHTS OF TRUSTEE AND PAYING AGENT..................89
SECTION 12.13 AUTHORIZATION TO EFFECT SUBORDINATION...............90
SECTION 12.14 ARTICLE APPLICABLE TO PAYING AGENTS.................90
ARTICLE XIII MISCELLANEOUS..................................................90
SECTION 13.1 TRUST INDENTURE ACT CONTROLS........................90
SECTION 13.2 NOTICES.............................................90
SECTION 13.3 COMMUNICATION BY HOLDERS OF NOTES WITH
OTHER HOLDERS OF NOTES..............................92
SECTION 13.4 CERTIFICATE AND OPINION AS TO CONDITIONS
PRECEDENT...........................................92
SECTION 13.5 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.......92
SECTION 13.6 RULES BY TRUSTEE AND AGENTS.........................93
SECTION 13.7 NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS,
EMPLOYEES AND STOCKHOLDERS..........................93
SECTION 13.8 GOVERNING LAW.......................................93
SECTION 13.9 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.......93
SECTION 13.10 SUCCESSORS..........................................93
SECTION 13.11 SEVERABILITY........................................94
SECTION 13.12 COUNTERPART ORIGINALS...............................94
SECTION 13.13 TABLE OF CONTENTS, HEADINGS, ETC....................94
SECTION 13.14 ACTS OF HOLDERS.....................................94
EXHIBITS
Exhibit A FORM OF NOTE
Exhibit B FORM OF GUARANTEE
This Indenture, dated as of February 20, 2004, is by and among AirGate PCS,
Inc., a Delaware corporation ("AirGate"), AGW Leasing Company, Inc., a Delaware
corporation ("AGW"), AirGate Network Services, LLC, a Delaware limited liability
company ("ANS"), AirGate Service Company, Inc., a Delaware corporation ("ASC"
and, together with AGW and ANS, the "Guarantors"), and The Bank of New York, a
New York banking corporation, as trustee (the "Trustee").
AirGate, the Guarantors and the Trustee agree as follows for the benefit of
each other and for the equal and ratable benefit of the holders of AirGate's 9?%
Senior Subordinated Secured Notes due 2009 (the "Notes"):
ARTICLE I
DEFINITIONS AND INCORPORATION
BY REFERENCE
SECTION 1.1 DEFINITIONS.
"Acquired Debt" means, with respect to any specified Person:
(a) Indebtedness of any other Person existing at the time such other
Person is merged with or into or became a Subsidiary of such specified
Person, whether or not such Indebtedness is incurred in connection
with, or in contemplation of, such other Person merging with or into,
or becoming a Subsidiary of, such specified Person; and
(b) Indebtedness secured by a Lien encumbering any asset acquired by such
specified Person.
"Affiliate" of any specified Person means any other Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with such specified Person. For purposes of this definition, "control,"
as used with respect to any Person, shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person shall be deemed to be control. For purposes of this
definition, the terms "controlling," "controlled by" and "under common control
with" shall have correlative meanings.
"Agent" means any Registrar, Paying Agent or co-registrar.
"AirGate" or the "Company" means AirGate PCS, Inc., a Delaware corporation.
"Asset Sale" means:
(a) the sale, lease, conveyance or other disposition of any assets or
rights, other than sales of inventory, accounts receivable and sales
of surplus or obsolete property or equipment in the ordinary course of
business consistent with industry practices; provided that the sale,
conveyance or other disposition of all or substantially all of the
assets of AirGate and its Restricted Subsidiaries taken as a whole
will be governed by Section 4.14 and/or Section 5.1 and not by Section
4.10; and
(b) the issuance of Equity Interests by any of AirGate's Restricted
Subsidiaries or the sale of Equity Interests in any of its Restricted
Subsidiaries,
Notwithstanding the preceding, the following items shall not be deemed to
be Asset Sales:
(a) any single transaction or series of related transactions that: (i)
involves assets having a fair market value of less than $1.0 million;
or (ii) results in net proceeds to AirGate and its Restricted
Subsidiaries of less than $1.0 million;
(b) a transfer of assets between or among AirGate and its Wholly Owned
Restricted Subsidiaries;
(c) an issuance of Equity Interests by a Wholly Owned Restricted
Subsidiary to AirGate or to another Wholly Owned Restricted
Subsidiary;
(d) a Restricted Payment that is permitted by Section 4.7; and
(e) any transfer by AirGate or a Subsidiary of property or equipment with
a fair market value of less than $5.0 million to a Person who is not
an Affiliate of AirGate in exchange for property or equipment that has
a fair market value at least equal to the fair market value of the
property or equipment so transferred; provided that, in the event of a
transfer described in this clause (e), AirGate shall deliver to the
Trustee an Officers' Certificate certifying that such exchange
complies with this clause (e).
"Asset Sale Offer" means an offer, required to be made by AirGate when the
aggregate amount of Excess Proceeds exceeds the amount specified in the third
paragraph of Section 4.10 to all Holders and to holders of other Indebtedness
that is pari passu with the Notes containing provisions similar to those set
forth in this Indenture with respect to offers to purchase or redeem with the
proceeds of sales of assets, to purchase the maximum principal amount of Notes
and such other pari passu Indebtedness that may be purchased out of the Excess
Proceeds.
"Attributable Debt" in respect of a Sale and Leaseback Transaction means,
at the time of determination, the present value of the obligation of the lessee
for net rental payments during the remaining term of the lease included in such
sale and leaseback transaction including any period for which such lease has
been extended or may, at the option of the lessor, be extended. Such present
value shall be calculated using a discount rate equal to the rate of interest
implicit in such transaction, determined in accordance with GAAP.
"Bankruptcy Law" means Title 11, U.S. Code or any similar federal or state
law for the relief of debtors.
"Beneficial Owner" has the meaning assigned to such term in Rule 13d-3 and
Rule 13d-5 under the Exchange Act, except that in calculating the beneficial
ownership of any particular "person," as such term is used in Section 13(d)(3)
of the Exchange Act, such "person" shall be deemed to have beneficial ownership
of all securities that such "person" has the right to acquire, whether such
right is currently exercisable or is exercisable only upon the occurrence of a
subsequent condition.
"Board of Directors" means the board of directors of AirGate or any
authorized committee of such board of directors.
"Board Resolution" means a copy of a resolution certified by the Secretary
or an Assistant Secretary of AirGate to have been duly adopted by the Board of
Directors, unless the context specifically requires that such resolution be
adopted by a majority of the disinterested directors, in which case by a
majority of such directors, 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 Legal Holiday.
"Capital Lease Obligation" means, as of any date of determination, the
amount of the liability in respect of a capital lease that would at that time be
required to be capitalized on a balance sheet in accordance with GAAP.
"Capital Stock" means:
(a) in the case of a corporation, corporate stock;
(b) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents, however
designated, of corporate stock;
(c) in the case of a partnership or limited liability company, partnership
or membership interests, whether general or limited; and
(d) any other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person.
"Cash Equivalents" means:
(a) United States dollars;
(b) securities issued or directly and fully guaranteed or insured by the
United States government or any agency or instrumentality thereof,
provided that the full faith and credit of the United States is
pledged in support thereof, having maturities of less than one year
from the date of acquisition;
(c) certificates of deposit and eurodollar time deposits with maturities
of less than one year from the date of acquisition, bankers'
acceptances with maturities not exceeding six months and overnight
bank deposits, in each case, with any commercial bank, including the
Trustee, having capital and surplus in excess of $500 million and a
Xxxxxxxx Bank Watch Rating of "B" or better,
(d) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (b) and (c)
above entered into with any financial institution meeting the
qualifications specified in clause (c) above;
(e) commercial paper having the highest rating obtainable from a Rating
Organization and in each case maturing prior to one year after the
date of acquisition; and
(f) money market funds at least 95% of the assets of which constitute Cash
Equivalents of the kinds described in clauses (a) through (e) of this
definition.
"Certificated Notes" means Notes that are in the form of Exhibit A attached
hereto (but without including the text referred to in footnote 1 thereto).
"Change of Control" means the occurrence of any of the following:
(a) the sale, transfer, conveyance or other disposition, other than by way
of merger or consolidation, in one or a series of related
transactions, of all or substantially all of the assets of AirGate and
its Subsidiaries taken as a whole to any "person," as such term is
used in Section 13(d)(3) of the Exchange Act;
(b) the adoption of a plan relating to the liquidation or dissolution of
AirGate;
(c) the consummation of any transaction, including, without limitation,
any merger or consolidation, the result of which is that any "person,"
as defined above, becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the Voting Stock of AirGate, measured
by voting power rather than number of shares;
(d) the first day on which a majority of the members of the Board of
Directors of AirGate are not Continuing Directors; or
(e) AirGate consolidates with, or merges with or into, any Person, or any
Person consolidates with, or merges with or into, AirGate, in any such
event pursuant to a transaction in which any of the outstanding Voting
Stock of AirGate is converted into or exchanged for cash, securities
or other property, other than any such transaction where the Voting
Stock of AirGate outstanding immediately prior to such transaction is
converted into or exchanged for Voting Stock, other than Disqualified
Stock, of the surviving or transferee Person constituting a majority
of the outstanding shares of such Voting Stock of such surviving or
transferee Person immediately after giving effect to such issuance.
Notwithstanding the foregoing, a "Change of Control" shall not occur under
clause (e) above in the event AirGate merges or consolidates with a Sprint PCS
Affiliate, if
(a) after announcement of the merger or consolidation but before
consummation thereof, (i) there shall not have occurred any
downgrading nor shall any notice have been given (that is not
subsequently removed prior to the consummation thereof) of any
potential or intended downgrading of any rating of the Notes to a
rating that is lower than the rating that existed or was indicated
prior to the announcement of the merger or consolidation, in any case
by a Rating Organization, that is not subsequently removed prior to
such consummation;
(ii) there shall not have occurred any suspension or withdrawal of,
nor shall any notice have been given of any potential or intended
suspension or withdrawal of, any review (or of any potential or
intended review) for a possible change that does not indicate the
direction of the possible change in, any rating of the Notes
(including, without limitation, the placing of any of the Notes
on credit watch with negative or developing implications or under
review with an uncertain direction) by any Rating Organization,
in each case that is not subsequently removed prior to the
consummation of such merger or consolidation;
(iii)there shall not have occurred any change, nor shall any notice
have been given of any potential or intended change, in the
outlook for any rating of the Notes to a rating that is lower
than the rating that existed or was indicated prior to the
announcement of the merger or consolidation, in any case by any
Rating Organization, that is not subsequently removed prior to
the consummation of such merger or consolidation;
(iv) no Rating Organization shall have given notice that it has
assigned (or is considering assigning) a rating to the Notes that
is lower than the rating that existed or was indicated prior to
the announcement of the merger or consolidation, that is not
subsequently removed prior to such consummation; and
(b) the Beneficial Owners of Voting Stock of AirGate prior to the merger
or consolidation continue to be the Beneficial Owners of at least 35%
of the outstanding Voting Stock of AirGate or the surviving Person
after the merger or consolidation; and (c) a majority of the members
of the Board of Directors and the Chief Executive Officer, Chief
Financial Officer and one additional "named executive officer" (as
defined in Item 402(a)(3) of Regulation S-K under the Securities Act
of 1933, as amended) of AirGate immediately prior to the merger or
consolidation shall continue to serve in the same capacity or hold the
same office, as the case may be, for AirGate or the surviving Person
after the merger or consolidation.
"Clearstream" means Clearstream Banking, societe anonyme.
"Closing Date" means February 20, 2004, the date on which the Notes were
originally issued under this Indenture.
"Collateral" means, collectively, all of the property and assets that are
from time to time subject to or required to be subject to the Liens created
under the Second-Priority Security Documents.
"Collateral Agent" means the agent for the Trustee and any Holders under
the Second-Priority Security Documents.
"Commission" means the Securities and Exchange Commission.
"Consent and Agreement" means the consent and agreement, dated as of August
16, 1999, among Sprint Spectrum L.P., Sprintcom, Inc., Sprint Communications
Company, L.P., Wirelessco L.P., and Lucent Technologies Inc., as administrative
agent for the lenders under the Credit Agreement.
"Consolidated Debt" means the aggregate amount of Indebtedness of AirGate
and its Restricted Subsidiaries on a Consolidated basis outstanding at the date
of determination.
"Consolidated Debt to Operating Cash Flow Ratio" means, at any date of
determination, the ratio of (i) Consolidated Debt to (ii) the Operating Cash
Flow for the period of the latest four fiscal quarters for which consolidated
financial statements of AirGate are available.
"Consolidated Interest Expense" of any Person means, for any period, (1)
the aggregate interest expense and fees and other financing costs in respect of
Indebtedness (including amortization of original issue discount and non-cash
interest payments and accruals), (2) the interest component in respect of
Capital Lease Obligations and any deferred payment obligations of such Person
and its Restricted Subsidiaries determined on a consolidated basis in accordance
with GAAP, (3) all commissions, discounts, other fees and charges owed with
respect to letters of credit and bankers' acceptance financing and net costs
(including amortization of discounts) associated with interest rate swap and
similar agreements and with foreign currency hedge, exchange and similar
agreements and (4) the product of (a) all dividend payments, whether or not in
cash, on any series of Preferred Capital Stock of such Person or any of its
Restricted Subsidiaries, other than dividend payments on Capital Stock payable
solely in Capital Stock of AirGate (other than Disqualified Stock) or to AirGate
or its Restricted Subsidiaries, times (b) a fraction, the numerator of which is
one and the denominator of which is one minus the then current combined federal,
state and local statutory tax rate of such Person, expressed as a decimal, in
each case, on a consolidated basis in accordance with GAAP.
"Consolidated Net Income" means, with respect to any specified Person for
any period, the aggregate of the Net Income of such Person and its Restricted
Subsidiaries for such period, on a consolidated basis, determined in accordance
with GAAP; provided that:
(a) the Net Income, but not loss, of any Person that is not a Restricted
Subsidiary or that is accounted for by the equity method of accounting
shall be included only to the extent of the amount of dividends or
distributions paid in cash to the specified Person or a Wholly Owned
Subsidiary thereof;
(b) the Net Income of any Restricted Subsidiary shall be excluded to the
extent that the declaration or payment of dividends or similar
distributions by that Restricted Subsidiary of that Net Income is not
at the date of determination permitted without any prior governmental
approval that has not been obtained or, directly or indirectly, by
operation of the terms of its charter or any agreement, instrument,
judgment, decree, order, statute, rule or governmental regulation
applicable to that Restricted Subsidiary or its stockholders;
(c) the Net Income, but not loss, of any Unrestricted Subsidiary shall be
excluded, whether or not distributed to the specified Person or one of
its Subsidiaries; and
(d) the cumulative effect of a change in accounting principles shall be
excluded.
"Consolidated Net Worth" means, with respect to any Person as of any date
of determination, the sum of:
(a) the consolidated equity of the common stockholders of such Person and
its consolidated Subsidiaries as of such date; plus
(b) the respective amounts reported on such Person's balance sheet as of
such date with respect to any series of preferred stock, other than
Disqualified Stock, that by its terms is not entitled to the payment
of dividends unless such dividends may be declared and paid only out
of net earnings in respect of the year of such declaration and
payment, but only to the extent of any cash received by such Person
upon issuance of such preferred stock. "Consolidation" means the
consolidation of the accounts of each of the Restricted Subsidiaries
with those of AirGate, if and to the extent that the accounts of each
such Restricted Subsidiary would normally be consolidated with those
of AirGate in accordance with generally accepted accounting
principles; provided, however, that "Consolidation" shall not include
consolidation of the accounts of any Unrestricted Subsidiary, but the
interest of AirGate or any Restricted Subsidiary in any Unrestricted
Subsidiary shall be accounted for as an investment. The term
"Consolidated" has a correlative meaning.
"Continuing Directors" means, as of any date of determination, any member
of the Board of Directors of AirGate who:
(a) was a member of such Board of Directors on the date of this Indenture;
or
(b) was nominated for election or elected to such Board of Directors with
the approval of a majority of the Continuing Directors who were
members of such Board at the time of such nomination or election.
"Corporate Trust Office of the Trustee" shall be at the address of the
Trustee specified in Section 13.2 hereof or such other address as to which the
Trustee may give notice to the Company.
"Credit Agreement" means the Credit Agreement, dated as of August 16, 1999,
among AirGate, as borrower, the lenders party thereto, State Street Bank and
Trust Company, as collateral agent, and Lucent Technologies Inc., as
administrative agent, as amended by (1) the First Amendment to Credit Agreement,
dated as of October 12, 2001, among AirGate, as borrower, State Street Bank and
Trust Company, as collateral agent, and Xxxxxx Commercial Paper Inc., as
administrative agent, and (2) Amendment No. 2 to the Credit Agreement, dated as
of November 30, 2003, among AirGate, as borrower, and Xxxxxx Commercial Paper
Inc., as administrative agent, or any credit agreement or similar document
providing for one or more debt facilities or commercial paper facilities entered
into by AirGate and any lenders to amend, restate, modify, renew, refund,
replace or refinance the Credit Agreement in any manner in whole or in part from
time to time.
"Credit Facilities" means, with respect to AirGate or any Guarantor, one or
more debt facilities or agreements or commercial paper facilities (including,
without limitation, any senior secured notes), in each case with banks or other
institutional lenders providing for revolving credit loans, term loans,
receivables financing, including through the sale of receivables to such lenders
or to special purpose entities formed to borrow from such lenders against such
receivables, or letters of credit, and shall include the Credit Agreement in
each case, as amended, restated, modified, renewed, refunded, replaced or
refinanced in any manner in whole or in part from time to time.
"Default" means any event that is, or with the passage of time or the
giving of notice or both would be, an Event of Default.
"Depositary" means, with respect to the Notes issuable or issued in whole
or in part in global form, the Person specified in Section 2.3 hereof as the
Depositary with respect to the Notes, until a successor shall have been
appointed and become such pursuant to Section 2.6 of this Indenture, and,
thereafter, "Depositary" shall mean or include such successor.
"Designated Senior Debt" means (a) Indebtedness under the Credit Agreement
constituting Senior Debt and (b) any other Senior Debt that has been designated
by AirGate in writing to the Trustee as "Designated Senior Debt."
"Disqualified Stock" means any Capital Stock that, by its terms, or by the
terms of any security into which it is convertible, or for which it is
exchangeable, in each case at the option of the holder thereof, or upon the
happening of any event, matures or is mandatorily redeemable, pursuant to a
sinking fund obligation or otherwise, or redeemable at the option of the holder
thereof, in whole or in part, on or prior to the date that is 91 days after the
date on which the Notes mature. Notwithstanding the preceding sentence, any
Capital Stock that would constitute Disqualified Stock solely because the
holders thereof have the right to require AirGate to repurchase such Capital
Stock upon the occurrence of a Change of Control or an Asset Sale shall not
constitute Disqualified Stock if the "asset sale" or "change of control"
provisions applicable to such Capital Stock are no more favorable to the holders
of such Capital Stock than the provisions contained in Sections 4.10 and 4.14
and such Capital Stock specifically provides that such Person will not
repurchase or redeem any such stock pursuant to such provision prior to
AirGate's repurchase of the Notes as are required pursuant to such Sections 4.10
and 4.14 of this Indenture.
"DTC" means The Depository Trust Company (55 Xxxxx Xxxxxx, Xxx Xxxx, Xxx
Xxxx).
"Equity Interests" means Capital Stock and all warrants, options or other
rights to acquire Capital Stock, but excludes any debt security that is
convertible into, or exchangeable for, Capital Stock.
"Euroclear" means Euroclear Bank S.A./N.V., as operator of the Euroclear
system.
"Event of Termination" means any of the events described in (1) Section
11.3 of the Management Agreement; (2) Section 13.2 of the Trademark Agreement or
(3) Section 13.2 of the Spectrum Trademark Agreement.
"Exchange Act" means the Securities Exchange Act of 1934, as amended.
"Existing Indebtedness" means the $151.5 million in aggregate principal
amount of Indebtedness of AirGate and its Restricted Subsidiaries in existence
on the date of this Indenture, including any Indebtedness that may be incurred
under the promissory note executed by AirGate pursuant to the Consent and
Agreement, until such amounts are repaid.
"First-Priority Security Documents" means, collectively, the security
agreements, pledge agreements, mortgages, deeds of trust, pledges, collateral
assignments and other agreements or instruments, as amended, supplemented,
replaced or otherwise modified from time to time, that evidence or create a
security interest in any or all of the Collateral to secure Indebtedness under
the Credit Facilities constituting Senior Debt and any interest rate and
currency hedging obligations provided by lenders under the Credit Facilities
constituting Senior Debt.
"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 have been approved by a significant segment of the accounting
profession, which are in effect from time to time.
"Global Notes" means the Notes that are in the form of Exhibit A hereto
(including the text referred to in footnote 1 thereto).
"Government Securities" means (1) any security which is (a) a direct
obligation of the United States of America for the payment of which the full
faith and credit of the United States of America is pledged or (b) an obligation
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation of the United
States of America, which, in either case, is not callable or redeemable at the
option of the issuer thereof, and (2) any depository receipt issued by a bank,
as defined in the Securities Act, as custodian with respect to any Government
Securities and held by such bank for the account of the holder of such
depository receipt, or with respect to any specific payment of principal of or
interest on any Government Securities which is so specified and held, provided
that, except as required by law, such custodian is not authorized to make any
deduction from the amount payable to the holder of such depository receipt from
any amount received by the custodian in respect of the Government Securities or
the specific payment of principal or interest evidenced by such depository
receipt.
"Guarantee" means any guarantee of the Notes by any Guarantor pursuant to
this Indenture.
"Guarantors" means each of AGW, ANS, ASC and any future subsidiary that
guarantees the Notes in accordance with the provisions of this Indenture and
their respective successors and assigns.
"Hedging Obligations" means, with respect to any Person, the obligations of
such Person under:
(a) interest rate swap agreements, interest rate cap agreements and
interest rate collar agreements; and
(b) other agreements or arrangements designed to protect such Person
against fluctuations in interest rates.
"Holder" means a Person in whose name a Note is registered.
"Indebtedness" means, with respect to any Person on any date of
determination (without duplication):
(2) the principal of and premium (if any) in respect of (i) debt of
such Person for money borrowed, and (ii) debt evidenced by notes,
debentures, bonds or other similar instruments for the payment of
which such Person is responsible or liable;
(3) all Capital Lease Obligations of such Person and all Attributable
Debt in respect of Sale and Leaseback Transactions entered into
by such Person;
(4) all obligations of such Person issued or assumed as the deferred
purchase price of property, all conditional sale obligations of
such Person and all obligations of such Person under any title
retention agreement (but excluding trade accounts payable arising
in the ordinary course of business);
(5) all obligations of such Person for the reimbursement of any
obligor on any letter of credit, banker's acceptance or similar
credit transactions (other than obligations with respect to
letters of credit securing obligations (other than obligations
described in (1) through (3) above) entered into in the ordinary
course of business of such Person to the extent such letters of
credit are not drawn upon or, if and to the extent drawn upon,
such drawing is reimbursed no later than the third business day
following receipt by such Person of a demand for reimbursement
following payment on the letter of credit);
(6) the amount of all obligations of such Person with respect to the
repayment of any Disqualified Stock or, with respect to any
Subsidiary of such Person, any Preferred Capital Stock (but
excluding, in each case, any accrued dividends);
(7) all obligations of the type referred to in clauses (1) through
(5) of other Persons and all dividends of other Persons for the
payment of which, in either case, such Person is responsible or
liable, directly or indirectly, as obligor, guarantor or
otherwise, including by means of any Guarantee;
(8) all obligations of the type referred to in clauses (1) through
(6) of other Persons secured by any Lien on any property of such
Person (whether or not such obligation is assumed by such
Person), the amount of such obligation begin deemed to be the
lesser of the value of such property or the amount of the
obligation so secured; and
(9) to the extent not otherwise included in this definition, Hedging
Obligations of such Person.
The amount of Debt of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described above and the
maximum liability, upon the occurrence of the contingency giving rise to the
obligation, of any contingent obligations at such date. The amount of Debt
represented by a Hedging Obligation shall be equal to (i) zero if such Hedging
Obligation has been incurred pursuant to clause (7) of the second paragraph of
Section 4.9 of this Indenture; or (ii) the notional amount of such Hedging
Obligation if not incurred pursuant to such clause.
"Indenture" means this Indenture, as amended or supplemented from time to
time.
"Indirect Participant" means a Person who holds an interest through a
Participant.
"Intercreditor Agreement" means the intercreditor agreement, dated as of
February 20, 2004, among the Trustee, Xxxxxx Commercial Paper Inc., in its
capacity as administrative agent for the financial institutions party to the
Credit Agreement, and State Street Bank and Trust Company, in its capacity as
collateral agent for the financial institutions party to the Credit Agreement,
and consented to by AirGate and as the same may be amended, supplemented,
restated, replaced or otherwise modified from time to time (whether with the
original agent or agents or lenders or other agents or lenders under the Credit
Facilities).
"Investments" means, with respect to any Person, all investments by such
Person in other Persons, including Affiliates, in the forms of direct or
indirect loans, including guarantees of Indebtedness or other obligations,
advances or capital contributions, excluding commission, travel and similar
advances to officers and employees made in the ordinary course of business,
purchases or other acquisitions for consideration of Indebtedness, Equity
Interests or other securities, together with all items that are or would be
classified as investments on a balance sheet prepared in accordance with GAAP.
If AirGate or any Restricted Subsidiary of AirGate sells or otherwise disposes
of any Equity Interests of any direct or indirect Restricted Subsidiary of
AirGate such that, after giving effect to any such sale or disposition, such
Person is no longer a Restricted Subsidiary of AirGate, AirGate shall be deemed
to have made an Investment on the date of any such sale or disposition equal to
the fair market value of the Equity Interests of such Restricted Subsidiary not
sold or disposed of in an amount determined as provided in the final paragraph
of Section 4.7.
"Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in the City of New York, the city in which the principal Corporate
Trust Office of the Trustee is located or at a place of payment are authorized
by law, regulation or executive order to remain closed. If a payment date is a
Legal Holiday, payment shall be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue for the intervening
period.
"Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind in respect of such asset,
whether or not filed, recorded or otherwise perfected under applicable law,
including any conditional sale or other title retention agreement, any lease in
the nature thereof, any option or other agreement to sell or give a security
interest in and any filing of or agreement to give any financing statement under
the Uniform Commercial Code, or equivalent statutes, of any jurisdiction.
"Management Agreement" means the Management Agreement between SprintCom,
Inc. and AirGate, dated as of July 22, 1998, and any exhibits, schedules or
addendum thereto, as such may be amended, modified or supplemented from time to
time.
"Net Income" means, with respect to any Person, the net income (loss) of
such Person and its Restricted Subsidiaries, determined in accordance with GAAP
and before any reduction in respect of preferred stock dividends, excluding,
however:
(a) any gain, but not loss, together with any related provision for taxes
on such gain (but not loss), realized in connection with: (i) any
Asset Sale; or (ii) the disposition of any securities by such Person
or any of its Restricted Subsidiaries or the extinguishment of any
Indebtedness of such Person or any of its Restricted Subsidiaries; and
(b) any extraordinary gain, but not loss, together with any related
provision for taxes on such extraordinary gain, but not loss.
"Net Proceeds" means the aggregate cash proceeds received by AirGate or any
of its Restricted Subsidiaries in respect of any Asset Sale, including, without
limitation, any cash received upon the sale or other disposition of any non-cash
consideration received in any Asset Sale, net of the direct costs relating to
such Asset Sale, including, without limitation, legal, accounting and investment
banking fees, and sales commissions, and any relocation expenses incurred as a
result thereof, taxes paid or payable as a result thereof, in each case after
taking into account any available tax credits or deductions and any tax sharing
arrangements and amounts required to be applied to the repayment of
Indebtedness, other than Senior Debt, secured by a Lien on the asset or assets
that were the subject of such Asset Sale and appropriate amounts to be provided
by AirGate or any Restricted Subsidiary, as the case may be, as a reserve
required in accordance with GAAP against any liabilities associated with such
Asset Sale and retained by AirGate 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.
"Non-Recourse Debt" means Indebtedness:
(a) as to which neither AirGate nor any of its Restricted Subsidiaries (i)
provides credit support of any kind, including any undertaking,
agreement or instrument that would constitute Indebtedness, (ii) is
directly or indirectly liable as a guarantor or otherwise, or (iii)
constitutes the lender;
(b) no default with respect to which, including any rights that the
holders thereof may have to take enforcement action against an
Unrestricted Subsidiary, would permit upon notice, lapse of time or
both any holder of any other Indebtedness, other than the Notes, of
AirGate or any of its Restricted Subsidiaries to declare a default on
such other Indebtedness or cause the payment thereof to be accelerated
or payable prior to its stated maturity; and
(c) as to which the lenders have been notified in writing that they will
not have any recourse to the stock or assets of AirGate or any of its
Restricted Subsidiaries.
"Notes" has the meaning set forth in the preamble to this Indenture.
"Note Custodian" means the Trustee when serving as custodian for the
Depositary with respect to the Global Notes, or any successor entity thereto.
"Obligations" means any principal, interest, penalties, fees,
indemnifications, reimbursements, damages and other liabilities of any kind
payable under the documentation governing any Indebtedness.
"Officer" means, with respect to any Person, the Chairman of the Board, the
Chief Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Vice-President of such Person.
"Officers' Certificate" means a certificate signed by the Chairman of the
Board, the President or a Vice-President, and by the Treasurer, an Assistant
Treasurer, the Secretary, or an Assistant Secretary, of AirGate, and delivered
to the Trustee.
"Operating Cash Flow" means, for any period, AirGate's Consolidated Net
Income (Loss) plus, to the extent deducted in calculating Consolidated Net
Income (Loss) for such period, (i) depreciation, amortization and other non-cash
charges, (ii) all amounts in respect of Consolidated Interest Expense, and all
income taxes, whether or not deferred, applicable to such income period, all as
determined on a consolidated basis in accordance with generally accepted
accounting principles, (iii) amounts actually incurred in pursuit of claims
against, or disputing claims by, Sprint PCS or any of its Affiliates, in an
aggregate amount not to exceed $2 million in any one fiscal year period,
provided that any portion of such amount not expended in any such one-year
period may be carried forward into the succeeding one-year period but not in any
subsequent year, (iv) amounts not in excess of $5 million in start-up costs
actually incurred in connection with the provision of billing and customer care
services and any similar services by AirGate or an Affiliate that had been
provided to AirGate pursuant to the Sprint Agreements, and (v) any restructuring
costs or charges incurred in connection with the restructuring transactions
described in AirGate's prospectus and solicitation statement, dated January 14,
2004. For purposes of calculating Operating Cash Flow for the four fiscal
quarters most recently completed for which financial statements are available
prior to any date on which an action is taken that requires a calculation of the
Operating Cash Flow to Consolidated Interest Expense Ratio or Consolidated Debt
to Operating Cash Flow Ratio, (1) any Person that is a Restricted Subsidiary on
such date (or would become a Restricted Subsidiary in connection with the
transaction that requires the determination of such ratio) will be deemed to
have been a Restricted Subsidiary at all times during such period, (2) any
Person that is not a Restricted Subsidiary on such date (or would cease to be a
Restricted Subsidiary in connection with the transaction that requires the
determination of such ratio) will be deemed not to have been a Restricted
Subsidiary at any time during such period and (3) if AirGate or any Restricted
Subsidiary shall have in any manner acquired (including through commencement of
activities constituting such operating business) or disposed of (including
through termination or discontinuance of activities constituting such operating
business) any operating business during or subsequent to the most recently
completed four fiscal quarters, such calculation will be made on a pro forma
basis on the assumption that such acquisition or disposition had been completed
on the first day of such completed period.
"Opinion of Counsel" means an opinion from legal counsel who is reasonably
acceptable to the Trustee. The counsel may be an employee of or counsel to
AirGate or any Subsidiary of AirGate.
"Participant" means, with respect to DTC, Euroclear or Clearstream, a
Person who has an account with DTC, Euroclear or Clearstream, respectively (and,
with respect to DTC, shall include Euroclear and Clearstream).
"Paying Agent" means any Person authorized by AirGate to pay the principal
of, premium, if any, or interest on any Notes on behalf of AirGate.
"Permitted Business" means the business primarily involved in (a) the
ownership, design, construction, development, acquisition, installation,
integration, management and/or provision of communications systems, (b) the
delivery or distribution of communications, voice data or video services, (c)
the provision of management, billing or customer care services or (d) any
business or activity reasonably related or ancillary thereto, including, without
limitation, any business conducted by AirGate or any Restricted Subsidiary on
the Closing Date.
"Permitted Investments" means:
(a) any Investment in AirGate or in a Wholly Owned Restricted Subsidiary
of AirGate that is a Guarantor,
(b) any Investment in Cash Equivalents;
(c) any Investment by AirGate or any Restricted Subsidiary of AirGate in a
Person, if as a result of such Investment:
(i) such Person becomes a Wholly Owned Restricted Subsidiary of
AirGate; or
(ii) such Person is merged, consolidated or amalgamated with or into,
or transfers or conveys substantially all of its assets to, or is
liquidated into, AirGate or a Wholly Owned Restricted Subsidiary
of AirGate;
(d) any Investment made as a result of the receipt of non-cash
consideration from an Asset Sale that was made pursuant to and in
compliance with Section 4.10;
(e) any acquisition of assets solely in exchange for the issuance of
Equity Interests, other than Disqualified Stock, of AirGate;
(f) Investments, the payment of which consists only of Equity Interests,
other than Disqualified Stock;
(g) Investments of up to $5 million in fiscal 2003, $7.5 million in fiscal
2004, $10 million in fiscal 2005, $12.5 million in fiscal 2006 and $15
million in fiscal 2007, in the aggregate, in one or more transactions
in one or more entities that
(i) will engage in a related telecommunications service business,
(ii) will bid on, own or lease spectrum or
(iii) will provide management, billing or customer care services;
provided that, at the time of such Investment, AirGate could have incurred
$1.00 of additional debt under the first paragraph of Section 4.9 of this
Indenture; provided further, that such amounts will be included in the
calculation of subsequent Restricted Payments under Section 4.7 of this
Indenture;
(h) Investments in one or more transactions, not to exceed an aggregate of
$5.0 million, in one or more entities that will provide management,
billing or customer care services; and
(i) other Investments in any Person having an aggregate fair market value,
measured on the date each such Investment was made and without giving
effect to subsequent changes in value, when taken together with all
other Investments made pursuant to this clause (i) since the date of
this Indenture, not to exceed $5.0 million.
"Permitted Junior Securities" means Equity Interests in AirGate or its
Subsidiaries or debt securities of AirGate or its Subsidiaries that are
subordinated to all Senior Debt (and any debt securities issued in exchange for
Senior Debt) to substantially the same extent as, or to a greater extent than,
the Notes are subordinated to Senior Debt.
"Permitted Liens" means:
(a) Liens securing Indebtedness under Credit Facilities constituting Senior
Debt on any tangible or intangible asset or property of AirGate or any
Restricted Subsidiary, whether such asset or property is real, personal or
mixed; provided, that a similar Lien on such asset or property shall also be
granted for the benefit of the Holders of the Notes and such Lien granted for
the benefit of the Holders of the Notes shall be junior only to the Liens
securing Indebtedness under Credit Facilities constituting Senior Debt and
certain other Permitted Liens, and any intercreditor agreement or other
agreement pertaining to relative rights in such Collateral shall not be any less
favorable than the Intercreditor Agreement as in effect at such time or as last
in effect;
(b) Liens in favor of AirGate or the Guarantors;
(c) Liens on property of a Person existing at the time such Person is
merged with or into or consolidated with AirGate or any Restricted Subsidiary of
AirGate; provided that such Liens (1) were in existence prior to the
contemplation of such merger or consolidation, (2) are not incurred in
anticipation of or in connection with such merger or consolidation, and (3) do
not extend to any assets other than those of the Person merged into or
consolidated with AirGate or the Restricted Subsidiary;
(d) Liens on property existing at the time of acquisition thereof by
AirGate or any Restricted Subsidiary of AirGate, provided that such Liens (1)
were in existence prior to the contemplation of such acquisition, (2) are not
incurred in anticipation of or in connection with the acquisition of such
property and (3) do not extend to any assets other than those of the property
acquired;
(e) Liens and deposits made to secure the performance of statutory
obligations, surety or appeal bonds, performance bonds, letters of credit or
other obligations of a like nature incurred in the ordinary course of business;
(f) Liens to secure Indebtedness, including Capital Lease Obligations,
permitted by clause (4) of the second paragraph of Section 4.9 hereof covering
only the assets acquired with such Indebtedness;
(g) Liens existing on the date of this Indenture;
(h) Liens on Assets of Guarantors to secure Senior Debt of such Guarantor
that was permitted by this Indenture to be incurred;
(i) Liens for taxes, assessments or governmental charges or claims that
are not yet delinquent or that are being contested in good faith by
appropriate proceedings promptly instituted and diligently concluded,
provided that any reserve or other appropriate provision as shall be
required in conformity with GAAP shall have been made therefor;
(j) Liens incurred in the ordinary course of business of AirGate or any
Restricted Subsidiary of AirGate with respect to obligations that do
not exceed $5.0 million at any one time outstanding;
(k) Liens on property or shares of stock of a Person at the time such
Person becomes a Subsidiary; provided, however, that any such Lien may
not extend to any other property owned by AirGate or any Restricted
Subsidiary; provided further that such Liens are not incurred in
anticipation of or in connection with the transaction or series of
related transactions pursuant to which such Person became a Restricted
Subsidiary;
(l) Liens securing the Notes and the Guarantees outstanding on the Closing
Date;
(m) Liens to secure any refinancing, refunding, extension, renewal or
replacement (or successive refinancings, refundings, extensions,
renewals or replacements) as a whole, or in part, of any Indebtedness
secured by any Lien referred to in the foregoing clauses (c), (d), (g)
and (h);
(n) Liens imposed by law, such as carriers', warehousemen's and mechanics'
liens, in each case for sums not yet due or being contested in good
faith by appropriate proceedings, or other Liens arising out of
judgments or awards against such Person not giving rise to an Event of
Default so long as any appropriate legal proceeding that may have been
duly initiated for the review of such judgment or award shall have
been finally determined, or the period within which such proceeding
may be initiated shall not have expired;
(o) Liens on assets of AirGate or any Restricted Subsidiary arising as a
result of a sale and leaseback transaction with respect to such
assets; provided that the proceeds from such sale and leaseback
transaction are applied in accordance with Section 4.10 of this
Indenture; and
(p) Liens to secure Indebtedness (and any guarantees of such Indebtedness)
permitted to be incurred under (i) clause (12) of Section 4.9 hereof
and (ii) the first paragraph of Section 4.9 hereof; provided, that
such Liens shall be junior to the Liens securing Indebtedness under
the Credit Facilities constituting Senior Debt and provided further
that such Liens shall also be granted for the benefit of the Holders
of the Notes and such Liens shall rank pari passu with the Lien
granted for the benefit of the Holders of the Notes.
"Permitted Refinancing Indebtedness" means any Indebtedness of AirGate or
any of its Restricted Subsidiaries issued in exchange for, or the net proceeds
of which are used to extend, refinance, renew, replace, defease or refund other
Indebtedness of AirGate or any of its Restricted Subsidiaries, other than
intercompany Indebtedness; provided that:
(a) the principal amount, or accreted value, if applicable, of such
Permitted Refinancing Indebtedness does not exceed the principal
amount of, or accreted value, if applicable, plus the amount of any
premium required to be paid in connection with such refinancing
pursuant to the terms of the Indebtedness refinanced or the amount of
any premium reasonably determined by AirGate as necessary to
accomplish such refinancing plus accrued interest on, the Indebtedness
so extended, refinanced, renewed, replaced, defeased or refunded, plus
the amount of reasonable expenses incurred in connection therewith;
(b) such Permitted Refinancing Indebtedness has a final maturity date
later than the final maturity date of, and has a Weighted Average Life
to Maturity equal to or greater than the Weighted Average Life to
Maturity of, the Indebtedness being extended, refinanced, renewed,
replaced, defeased or refunded;
(c) if the Indebtedness being extended, refinanced, renewed, replaced,
defeased or refunded is subordinated in right of payment to the Notes,
such Permitted Refinancing Indebtedness has a final maturity date
later than the final maturity date of, and is subordinated in right of
payment to, the Notes on terms at least as favorable to the holders of
Notes as those contained in the documentation governing the
Indebtedness being extended, refinanced, renewed, replaced, defeased
or refunded; and
(d) such Indebtedness is incurred either by AirGate or by the Restricted
Subsidiary who is the obligor on the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded.
"Person" means any individual, corporation, partnership, joint venture,
limited liability company, trust, unincorporated organization or government or
any agency or political subdivision thereof or other entity of any nature.
"Preferred Capital Stock," as applied to the Capital Stock of any Person,
means Capital Stock of such Person of any class or classes, however designated,
that ranks prior, as to the payment of dividends or as to the distribution of
assets upon any voluntary or involuntary liquidation, dissolution or winding up
of such Person, to shares of Capital Stock of any other class of such Person.
"Rating Organization" means Standard & Poor's Ratings Services, a division
of The XxXxxx-Xxxx Companies Inc., or Xxxxx'x Investors Service, Inc. or their
respective successors.
"Responsible Officer" means, when used with respect to the Trustee, any
officer assigned to the Corporate Trust Office of the Trustee, including any
vice president, assistant vice president, assistant treasurer, or any other
officer of the Trustee customarily performing functions similar to those
performed by any of the above designated officers and having direct
responsibility for the administration of this Indenture, and also, with respect
to a particular matter, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject.
"Restricted Subsidiary" of a Person means any Subsidiary of the referent
Person that is not an Unrestricted Subsidiary.
"Sale and Leaseback Transaction" means any arrangement with any Person
(other than AirGate or a Subsidiary), or to which any such Person is a party,
providing for the leasing, pursuant to a capital lease that would at such time
be required to be capitalized on a balance sheet in accordance with GAAP, to
AirGate or a Restricted Subsidiary of any property or asset which has been or is
to be sold or transferred by AirGate or such Restricted Subsidiary to such
Person or to any other Person (other than AirGate or a Subsidiary) to which
funds have been or are to be advanced by such Person.
"Second-Priority Security Documents" means, collectively, the security
agreements, pledge agreements, mortgages, deeds of trust, pledges, collateral
assignments and other agreements or instruments, as amended, supplemented,
replaced or otherwise modified from time to time, among AirGate, certain other
grantors and the Trustee, that evidence or create a security interest in any or
all of the Collateral in favor of the Trustee and any Holders.
"Securities Act" means the Securities Act of 1933, as amended.
"Security Documents" mean, collectively, (a) the First-Priority Security
Documents; (b) the Second-Priority Security Documents; and (c) the Intercreditor
Agreement.
"Senior Debt" means:
(a) all Indebtedness outstanding under Credit Facilities and any
guarantees thereof and all Hedging Obligations with respect thereto,
to the extent permitted under clause (3) of Section 4.9 hereof; and
(b) all Obligations with respect to the items listed in the preceding
clause (a).
Notwithstanding anything to the contrary in the preceding, Senior Debt will
not include:
(a) any liability for federal, state, local or other taxes owed or owing
by AirGate;
(b) any Indebtedness of AirGate to any of its Subsidiaries or other
Affiliates;
(c) any trade payables; or
(d) any Indebtedness that is incurred in violation of this Indenture or
that is not permitted to be incurred under clause (3) of Section 4.9
hereof.
"Senior Subordinated Discount Notes" means the 13.5% Senior Subordinated
Discount Notes due October 1, 2009 of AirGate.
"Significant Subsidiary" means any Subsidiary that would be a "significant
subsidiary" as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated by
the Commission, as such Regulation is in effect on the date hereof.
"Spectrum Trademark Agreement" means Sprint Trademark and Service xxxx
License Agreement between Sprint Spectrum L.P. and AirGate, dated as of July 22,
1998, and any exhibits, schedules or addendum thereto, as such may be amended,
modified or supplemented from time to time.
"Sprint Agreements" means the (1) Management Agreement; (2) Sprint PCS
Services Agreement between Sprint Spectrum L.P. and AirGate, dated as of July
22, 1998, and any exhibits, schedules or addendum thereto, as such may be
amended, modified or supplemented from time to time, (3) Trademark Agreement;
and (4) Spectrum Trademark Agreement.
"Sprint PCS Affiliate" means any Person whose sole or predominant business
is operating a personal communications services business pursuant to
arrangements with Sprint Spectrum L.P. and/or its Affiliates, or their
successors, similar to the Sprint Agreements.
"Stated Maturity" means, with respect to any installment of interest or
principal on any series of Indebtedness, the date on which such payment of
interest or principal was scheduled to be paid in the original documentation
governing such Indebtedness, and shall not include any contingent obligations to
repay, redeem or repurchase any such interest or principal prior to the date
originally scheduled for the payment thereof.
"Subordinated Note Obligations" means all Obligations with respect to the
Notes, including without limitation, principal of, premium, if any, and
interest, if any, payable pursuant to the terms of the Notes (including upon the
acceleration of redemption thereof), together with and including any amounts
received or receivable upon the exercise of rights of recission or other rights
of action (including claims for damages) or otherwise.
"Subsidiary" means, with respect to any Person:
(a) any corporation, association or other business entity of which more
than 50% of the total voting power of shares of Capital Stock
entitled, without regard to the occurrence of any contingency, to vote
in the election of directors, managers or trustees thereof is at the
time owned or controlled, directly or indirectly, by such Person or
one or more of the other Subsidiaries of that Person, or a combination
thereof; and
(b) any partnership (i) the sole general partner or the managing general
partner of which is such Person or a Subsidiary of such Person or (ii)
the only general partners of which are such Person or of one or more
Subsidiaries of such Person, or any combination thereof.
"TIA" means the Trust Indenture Act of 1939 (15 U.S. Code xx.xx.
77aaa-77bbbb), as amended, as in effect on the date hereof.
"Trademark Agreement" means Sprint Trademark and Service Xxxx License
Agreement between Sprint Communications Company, L.P. and AirGate, dated as of
July 22, 1998, and any exhibits, schedules or addendum thereto, as such may be
amended, modified or supplemented from time to time.
"Trustee" has the meaning set forth in the preamble to this Indenture.
"Unrestricted Subsidiary" means any Subsidiary of AirGate that is
designated by the Board of Directors as an Unrestricted Subsidiary pursuant to a
Board Resolution, but only to the extent that such Subsidiary:
(a) has no Indebtedness other than Non-Recourse Debt;
(b) is not party to any agreement, contract, arrangement or understanding
with AirGate or any Restricted Subsidiary of AirGate unless the terms
of any such agreement, contract, arrangement or understanding are no
less favorable to AirGate or such Restricted Subsidiary than those
that might be obtained at the time from Persons who are not Affiliates
of AirGate;
(c) is a Person with respect to which neither AirGate nor any of its
Restricted Subsidiaries has any direct or indirect obligation (i) to
subscribe for additional Equity Interests or (ii) to maintain or
preserve such Person's financial condition or to cause such Person to
achieve any specified levels of operating, results;
(d) has not guaranteed or otherwise directly or indirectly provided credit
support for any Indebtedness of AirGate or any of its Restricted
Subsidiaries; and
(e) has at least one director on its board of directors that is not a
director or executive officer of AirGate or any of its Restricted
Subsidiaries and has at least one executive officer that is not a
director or executive officer of AirGate or any of its Restricted
Subsidiaries.
Any designation of a Subsidiary of AirGate as an Unrestricted Subsidiary
shall be evidenced to the Trustee by filing with the Trustee the Board
Resolution giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the preceding conditions and was
permitted by Section 4.7. If, at any time, any Unrestricted Subsidiary would
fail to meet the preceding requirements as an Unrestricted Subsidiary, it shall
thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture
and any Indebtedness of such Subsidiary shall be deemed to be incurred by a
Restricted Subsidiary of AirGate as of such date and, if such Indebtedness is
not permitted to be incurred as of such date under Section 4.9, AirGate shall be
in default of Section 4.9. The Board of Directors of AirGate may at any time
designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided
that such designation shall be deemed to be an incurrence of Indebtedness by a
Restricted Subsidiary of AirGate of any outstanding Indebtedness of such
Unrestricted Subsidiary and such designation shall only be permitted if (1) such
Indebtedness is permitted under Section 4.9, calculated on a pro forma basis as
if such designation had occurred at the beginning of the four-quarter reference
period; and (2) no Default or Event of Default would be in existence following
such designation.
"Voting Stock" of any Person as of any date means the Capital Stock of such
Person that is at the time entitled to vote in the election of the Board of
Directors of such Person.
"Weighted Average Life to Maturity" means, when applied to any Indebtedness
at any date of determination, the number of years obtained by dividing:
(a) the sum of the products obtained by multiplying (i) the amount of each
then remaining installment, sinking fund, serial maturity or other
required payments of principal, including payment at final maturity,
in respect thereof, by (ii) the number of years, calculated to the
nearest one-twelfth, that will elapse between such date and the making
of such payment; by
(b) the then outstanding principal amount of such Indebtedness.
"Wholly Owned Restricted Subsidiary" of any Person means a Restricted
Subsidiary of such Person all of the outstanding Capital Stock or other
ownership interests of which, other than directors' qualifying shares, shall at
the time be owned by such Person or by one or more Wholly Owned Restricted
Subsidiaries of such Person and one or more Wholly Owned Restricted Subsidiaries
of such Person.
SECTION 1.2 OTHER DEFINITIONS.
Term Defined in Section
"Affiliate Transaction"......................................4.11
"Agent Members"...............................................2.6
"Change of Control Offer"....................................4.14
"Change of Control Payment"..................................4.14
"Change of Control Payment Date".............................4.14
"Covenant Defeasance".........................................8.3
"Custodian"...................................................6.1
"Event of Default"............................................6.1
"Excess Proceeds"............................................4.10
"Excess Proceeds Offer........................................3.9
"Excess Proceeds Offer Triggering Event".....................4.10
"Legal Defeasance"............................................8.2
"Offer Amount"................................................3.9
"Offer Period"................................................3.9
"Payment Blockage Notice"....................................12.3
"Payment Default".............................................6.1
"Permitted Debt"..............................................4.9
"Purchase Date"...............................................3.9
"Registrar"...................................................2.3
"Representative".............................................12.3
"Repurchase Offer"............................................3.9
"Restricted Payment"..........................................4.7
"Surviving Entity"............................................5.1
SECTION 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in, and made a part of, this Indenture.
The following TIA terms used in this Indenture have the following meanings:
"indenture securities" means the Notes and any Guarantee;
"indenture security holder" means a Holder;
"indenture to be qualified" means this Indenture;
"indenture trustee" or "institutional trustee" means the Trustee;
"obligor" on the Notes means AirGate and any successor obligor upon
the Notes or any Guarantor.
All other terms used in this Indenture that are defined by the TIA, defined
by TIA reference to another statute or defined by the Commission rule under the
TIA have the meanings so assigned to them therein.
SECTION 1.4 RULES OF CONSTRUCTION.
Unless the context otherwise requires:
(1) a term has the meaning assigned to it herein;
(2) an accounting term not otherwise defined herein has the
meaning assigned to it in accordance with GAAP;
(3) "or" is not exclusive;
(4) words in the singular include the plural, and in the plural
include the singular;
(5) unless otherwise specified, any reference to Section or
Article refers to such Section or Article of this Indenture;
(6) provisions apply to successive events and transactions; and
(7) references to sections of or rules under the Securities Act
or the Exchange Act shall be deemed to include substitute,
replacement or successor sections or rules adopted by the
Commission from time to time.
ARTICLE II
THE NOTES
SECTION 2.1 FORM AND DATING.
The Notes and the Trustee's certificate of authentication shall be
substantially in the form of Exhibit A attached hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Notes
initially shall be issued only in denominations of $100 and integral multiples
thereof.
The terms and provisions contained in the Notes shall constitute, and are
hereby expressly made, a part of this Indenture and AirGate and the Trustee, by
their execution and delivery of this Indenture, expressly agree to such terms
and provisions and to be bound thereby. However, to the extent any provision of
any Note conflicts with the express provisions of this Indenture, the provisions
of this Indenture shall govern and be controlling.
(a) The Notes shall be issued initially in the form of one or more Global
Notes substantially in the form attached as Exhibit A hereto, which
shall be deposited on behalf of the purchasers of the Notes
represented thereby with the Trustee as custodian for the Depositary,
and registered in the name of the Depositary or a nominee of the
Depositary, duly executed by AirGate and authenticated by the Trustee
as hereinafter provided.
Each Global Note shall represent such of the outstanding Notes as shall be
specified therein and each shall provide that it shall represent the aggregate
amount of outstanding Notes from time to time endorsed thereon and that the
aggregate amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges, redemptions and
transfers of interests. Any endorsement of a Global Note to reflect the amount
of any increase or decrease in the amount of outstanding Notes represented
thereby shall be made by the Trustee or the Note Custodian, at the direction of
the Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.6 hereof.
Except as set forth in Section 2.6 hereof, the Global Notes may be
transferred, in whole and not in part, only to another nominee of the Depositary
or to a successor of the Depositary or its nominee.
(b) This Section 2.1(b) shall apply only to Global Notes deposited with or
on behalf of the Depositary.
AirGate shall execute and the Trustee shall, in accordance with this
Section 2.1(b), authenticate and deliver the Global Notes that (i) shall be
registered in the name of the Depositary or the nominee of the Depositary and
(ii) shall be delivered by the Trustee to the Depositary or pursuant to the
Depositary's instructions or held by the Trustee as custodian for the
Depositary.
Participants shall have no rights either under this Indenture with respect
to any Global Note held on their behalf by the Depositary or by the Note
Custodian as custodian for the Depositary or under such Global Note, and the
Depositary may be treated by AirGate, the Trustee and any agent of AirGate or
the Trustee as the absolute owner of such Global Note for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent AirGate,
the Trustee or any agent of AirGate or the Trustee from giving effect to any
written certification, proxy or other authorization furnished by the Depositary
or impair, as between the Depositary and its Participants, the operation of
customary practices of such Depositary governing the exercise of the rights of
an owner of a beneficial interest in any Global Note.
The Trustee shall have no responsibility or obligation to any Holder that
is a member of (or a participant in) DTC or any other Person with respect to the
accuracy of the records of DTC (or its nominee) or of any participant or member
thereof, with respect to any ownership interest in the Notes or with respect to
the delivery of any notice (including any notice of redemption) or the payment
of any amount or delivery of any Notes (or other security or property) under or
with respect to the Notes. The Trustee may rely (and shall be fully protected in
relying) upon information furnished by DTC with respect to its members,
participants and any beneficial owners in the Notes.
(c) Notes issued in certificated form shall be substantially in the form
of Exhibit A attached hereto (but without including the text referred
to in footnote 1 thereto).
SECTION 2.2 EXECUTION AND AUTHENTICATION.
An Officer shall sign the Notes for AirGate by manual or facsimile
signature. AirGate's seal shall be reproduced on the Notes and may be in
facsimile form.
If an Officer whose signature is on a Note no longer holds that office at
the time a Note is authenticated, the Note shall nevertheless be valid.
A Note shall not be valid until authenticated by the manual signature of a
Responsible Officer of the Trustee. The signature shall be conclusive evidence
that the Note has been authenticated under this Indenture.
The Trustee shall, upon a written order of AirGate signed by one Officer
directing the Trustee to authenticate the Notes and certifying that all
conditions precedent to the issuance of the Notes contained herein have been
complied with, authenticate Notes for original issue up to the aggregate
principal amount stated in paragraph 4 of the Notes. The aggregate principal
amount of Notes outstanding at any time may not exceed such amount except as
provided in Section 2.8 hereof.
The Trustee may appoint an authenticating agent reasonably acceptable to
AirGate to authenticate Notes. Unless limited by the terms of such appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with Holders or AirGate or an Affiliate of AirGate.
SECTION 2.3 REGISTRAR AND PAYING AGENT.
AirGate shall maintain (i) an office or agency where Notes may be presented
for registration of transfer or for exchange ("Registrar") and (ii) an office or
agency where Notes may be presented for payment to a Paying Agent. The Registrar
shall keep a register of the Notes and of their transfer and exchange. AirGate
may appoint one or more co-registrars and one or more additional paying agents.
The term "Registrar" includes any co-registrar and the term "Paying Agent"
includes any additional paying agent. AirGate may change any Paying Agent or
Registrar without notice to any Holder. AirGate shall notify the Trustee in
writing of the name and address of any Agent not a party to this Indenture. If
AirGate fails to appoint or maintain another entity as Registrar or Paying
Agent, the Trustee shall act as such. AirGate or any of its Subsidiaries may act
as Paying Agent or Registrar.
AirGate shall notify the Trustee and the Trustee shall notify the Holders
of the Notes of the name and address of any Agent not a party to this Indenture.
AirGate or any Guarantor may act as Paying Agent or Registrar. AirGate shall
enter into an appropriate agency agreement with any Agent not a party to this
Indenture, which shall incorporate the provisions of the TIA. The agreement
shall implement the provisions of this Indenture that relate to such Agent.
AirGate shall notify the Trustee of the name and address of any such Agent. If
AirGate fails to maintain a Registrar or Paying Agent, or fails to give the
foregoing notice, the Trustee shall act as such, and shall be entitled to
appropriate compensation in accordance with Section 7.7 hereof.
AirGate initially appoints the Trustee to act as the Registrar and Paying
Agent.
AirGate initially appoints DTC to act as the Depositary with respect to the
Global Notes.
SECTION 2.4 PAYING AGENT TO HOLD MONEY IN TRUST.
AirGate shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent shall hold in trust for the benefit of Holders or
the Trustee all money held by the Paying Agent for the payment of principal,
premium, if any, or interest on the Notes, and shall notify the Trustee of any
Default by AirGate in making any such payment. While any such Default continues,
the Trustee may require a Paying Agent to pay all money held by it to the
Trustee. AirGate at any time may require a Paying Agent to pay all money held by
it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other
than AirGate or a Subsidiary) shall have no further liability for the money. If
AirGate or a Subsidiary acts as Paying Agent, it shall segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon the occurrence of events specified in Section 6.1(ix), (x)
and (xi) hereof, the Trustee shall serve as Paying Agent for the Notes.
SECTION 2.5 HOLDER LISTS.
The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders and shall otherwise comply with TIA ss. 312(a). If the Trustee is
not the Registrar, AirGate shall furnish to the Trustee at least seven (7)
Business Days before each interest payment date and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of the Holders,
including the aggregate principal amount of the Notes held by each Holder
thereof, and AirGate shall otherwise comply with TIA ss. 312(a).
SECTION 2.6 BOOK-ENTRY PROVISIONS FOR GLOBAL SECURITIES.
(a) Each Global Note shall (i) be registered in the name of the Depositary
for such Global Notes or the nominee of such Depositary, (ii) be
delivered to the Trustee as custodian for such Depositary and (iii)
bear legends as set forth in Section 2.6(g).
Members of, or participants in, the Depositary ("Agent Members") shall have
no rights under this Indenture with respect to any Global Note held on their
behalf by the Depositary, or the Trustee as its custodian, or under the Global
Note, and the Depositary may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global Note
for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Trustee or any agent of the Company or the Trustee,
from giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and its Agent
Members, the operation of customary practices governing the exercise of the
rights of a Holder of any Note.
(b) Transfers of a Global Note shall be limited to transfers of such
Global Note in whole, but not in part, to the Depositary, its
successors or their respective nominees. Interests of beneficial
owners in a Global Note may be transferred in accordance with the
rules and procedures of the Depositary. In addition, Certificated
Notes shall be transferred to all beneficial owners in exchange for
their beneficial interests if (i) the Depositary notifies the Company
that it is unwilling or unable to continue as Depositary for the
Global Notes or the Depositary ceases to be a "clearing agency"
registered under the Exchange Act and a successor depositary is not
appointed by the Company within ninety (90) days of such notice or
(ii) an Event of Default of which a Responsible Officer of the Trustee
has actual notice has occurred and is continuing and the Registrar has
received a request from the Depositary to issue such Certificated
Notes.
(c) In connection with the transfer of the entire Global Note to
beneficial owners pursuant to clause (b) of this Section, such Global
Note shall be deemed to be surrendered to the Trustee for
cancellation, and the Company shall execute, and the Trustee shall
authenticate and deliver, to each beneficial owner identified by the
Depositary in exchange for its beneficial interest in such Global Note
an equal aggregate principal amount of Certificated Notes of
authorized denominations.
(d) The registered holder of a Global Note may grant proxies and otherwise
authorize any person, including Agent Members and persons that may
hold interest through Agent Members, to take any action which a Holder
is entitled to take under this Indenture or the Securities.
(e) A Certificated Note may not be transferred or exchanged for a
beneficial interest in a Global Note.
(f) If at any time:
(i) the Depositary for the Notes notifies AirGate that the Depositary
is unwilling or unable to continue as Depositary for the Global
Notes and a successor Depositary for the Global Notes is not
appointed by AirGate within ninety (90) days after delivery of
such notice; or
(ii) AirGate, at its sole discretion, notifies the Trustee in writing
that it elects to cause the issuance of Certificated Notes under
this Indenture,
then AirGate shall execute, and the Trustee shall, upon receipt of an
authentication order in accordance with Section 2.2 hereof, authenticate and
deliver, Certificated Notes in an aggregate principal amount equal to the
principal amount of the Global Notes in exchange for such Global Notes.
(g) Each Global Security shall bear the following legends on the face
thereof:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER ENTITY
AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY OR SUCH OTHER REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY) ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR
THEREOF OR SUCH SUCCESSOR'S NOMINEE.
(h) At such time as all beneficial interests in Global Notes have been
exchanged for Certificated Notes, redeemed, repurchased or cancelled,
all Global Notes shall be returned to or retained and cancelled by the
Trustee in accordance with Section 2.11 hereof. At any time prior to
such cancellation, if any beneficial interest in a Global Note is
exchanged for Certificated Notes, redeemed, repurchased or cancelled,
the principal amount of Notes represented by such Global Note shall be
reduced accordingly and an endorsement shall be made on such Global
Note, by the Trustee or the Note Custodian, at the direction of the
Trustee, to reflect such reduction.
(i) General Provisions Relating to Transfers and Exchanges.
(i) To permit registrations of transfers and exchanges, AirGate shall
execute and the Trustee shall authenticate Global Notes and
Certificated Notes at the Registrar's request.
(ii) No service charge shall be made to a Holder for any registration
of transfer or exchange, but AirGate may require payment of a sum
sufficient to cover any stamp or transfer tax or similar
governmental charge payable in connection therewith (other than
any such stamp or transfer taxes or similar governmental charge
payable upon exchange or transfer pursuant to Sections 2.2, 2.10,
3.6, 4.10, 4.14, 9.5 and 10.1 hereto).
(iii)All Global Notes and Certificated Notes issued upon any
registration of transfer or exchange of Global Notes or
Certificated Notes shall be the valid obligations of AirGate,
evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Global Notes or Certificated Notes
surrendered upon such registration of transfer or exchange.
(iv) The Registrar shall not be required: (A) to issue, to register
the transfer of or to exchange Notes during a period beginning at
the opening of fifteen (15) days before the day of any selection
of Notes for redemption under Section 3.2 hereof and ending at
the close of business on the day of selection, (B) to register
the transfer of or to exchange any Note so selected for
redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part, or (C) to register the transfer
of or to exchange a Note between a record date and the next
succeeding interest payment date.
(v) Prior to due presentment for the registration of a transfer of
any Note, the Trustee, any Agent and AirGate may deem and treat
the Person in whose name any Note is registered as the absolute
owner of such Note for the purpose of receiving payment of
principal of and interest on such Notes and for all other
purposes, and neither the Trustee, any Agent nor AirGate shall be
affected by notice to the contrary.
(vi) The Trustee shall authenticate Global Notes and Certificated
Notes in accordance with the provisions of Section 2.2 hereof.
(vii)Each Holder of a Note agrees to provide reasonable indemnity to
AirGate and the Trustee against any liability that may result
from the transfer, exchange or assignment of such Holder's Note
in violation of any provision of this Indenture and/or applicable
United States federal or state securities law.
(viii) 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 Note
(including any transfers between or among Agent Members or
beneficial owners of interests in any Global Note) other than to
require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when
expressly required by the terms of, this Indenture, and to
examine the same to determine substantial compliance as to form
with the express requirements hereof.
SECTION 2.7 REPLACEMENT NOTES.
If any mutilated Note is surrendered to the Trustee, or AirGate and the
Trustee receives evidence to their satisfaction of the destruction, loss or
theft of any Note, AirGate shall issue and the Trustee, upon the written order
of AirGate signed by an Officer of AirGate, shall authenticate a replacement
Note if the Trustee's requirements are met. If required by the Trustee or
AirGate, an indemnity bond must be supplied by the Holder that is sufficient in
the judgment of the Trustee and AirGate to protect AirGate, the Trustee, any
Agent and any authenticating agent from any loss that any of them may suffer if
a Note is replaced. AirGate and the Trustee may charge for their expenses in
replacing a Note.
Every replacement Note is an additional obligation of AirGate and shall be
entitled to all of the benefits of this Indenture equally and proportionately
with all other Notes duly issued hereunder.
SECTION 2.8 OUTSTANDING NOTES.
The Notes outstanding at any time are all the Notes authenticated by the
Trustee except for those cancelled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Note effected by the
Trustee in accordance with the provisions hereof, and those described in this
Section 2.8 as not outstanding. Except as set forth in Section 2.9 hereof, a
Note does not cease to be outstanding because AirGate or an Affiliate of AirGate
holds the Note.
If a Note is replaced pursuant to Section 2.7 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Note is held by a bona fide purchaser.
If the principal amount of any Note is considered paid under Section 4.1
hereof, it ceases to be outstanding and interest on it ceases to accrue.
If the Paying Agent (other than AirGate, a Subsidiary or an Affiliate of
any thereof) holds, on a redemption date or maturity date, money sufficient to
pay Notes payable on that date, then on and after that date such Notes shall be
deemed to be no longer outstanding and shall cease to accrue interest.
SECTION 2.9 TREASURY NOTES.
In determining whether the Holders of the required aggregate principal
amount of Notes have concurred in any direction, waiver or consent, Notes owned
by AirGate, or by any Affiliate of AirGate shall be considered as though not
outstanding, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Notes shown on the register as being owned shall be so disregarded.
Notwithstanding the foregoing, Notes that are to be acquired by AirGate or an
Affiliate of AirGate pursuant to an exchange offer, tender offer or other
agreement shall not be deemed to be owned by such entity until legal title to
such Notes passes to such entity.
SECTION 2.10 TEMPORARY NOTES.
Until Certificated Notes are ready for delivery, AirGate may prepare and
the Trustee shall authenticate temporary Notes upon a written order of AirGate
signed by two Officers of AirGate. Temporary Notes shall be substantially in the
form of Certificated Notes but may have variations that AirGate considers
appropriate for temporary Notes. Without unreasonable delay, AirGate shall
prepare and the Trustee shall upon receipt of a written order of AirGate signed
by two Officers authenticate Certificated Notes in exchange for temporary Notes.
Holders of temporary Notes shall be entitled to all of the benefits of this
Indenture.
SECTION 2.11 CANCELLATION.
AirGate at any time may deliver to the Trustee for cancellation any Notes
previously authenticated and delivered hereunder or which AirGate may have
acquired in any manner whatsoever, and all Notes so delivered shall be promptly
cancelled by the Trustee. All Notes surrendered for registration of transfer,
exchange or payment, if surrendered to any Person other than the Trustee, shall
be delivered to the Trustee. The Trustee and no one else shall cancel all Notes
surrendered for registration of transfer, exchange, payment, replacement or
cancellation. Subject to Section 2.7 hereof, AirGate may not issue new Notes to
replace Notes that it has redeemed or paid or that have been delivered to the
Trustee for cancellation. All cancelled Notes held by the Trustee shall be
disposed of in accordance with its customary practice, and certification of
their disposal delivered to AirGate, unless by a written order, signed by an
Officer of AirGate, AirGate shall direct that cancelled Notes be returned to it.
SECTION 2.12 DEFAULTED INTEREST.
If AirGate defaults in a payment of interest on the Notes, it shall pay the
defaulted interest in any lawful manner plus, to the extent lawful, interest
payable on the defaulted interest, to the Persons who are Holders on a
subsequent special record date, which date shall be at the earliest practicable
date but in all events at least five (5) Business Days prior to the payment
date, in each case at the rate provided in the Notes and in Section 4.1 hereof.
AirGate shall fix or cause to be fixed each such special record date and payment
date, and shall promptly thereafter, notify the Trustee of any such date. At
least fifteen (15) days before the special record date, AirGate (or the Trustee,
in the name and at the expense of AirGate) shall mail or cause to be mailed to
Holders a notice that states the special record date, the related payment date
and the amount of such interest to be paid.
SECTION 2.13 RECORD DATE.
The record date for purposes of determining the identity of Holders
entitled to vote or consent to any action by vote or consent authorized or
permitted under this Indenture shall be determined as provided for in TIA ss.
316 (c).
SECTION 2.14 COMPUTATION OF INTEREST.
Interest on the Notes shall be computed on the basis of a 360-day year
comprised of twelve 30-day months.
SECTION 2.15 CUSIP NUMBER.
AirGate in issuing the Notes may use a "CUSIP" number, and if it does 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 Notes and that reliance may be placed only on
the other identification numbers printed on the Notes. AirGate shall promptly
notify the Trustee of any change in the CUSIP number.
ARTICLE III
REDEMPTION AND PREPAYMENT
SECTION 3.1 NOTICES TO TRUSTEE.
If AirGate elects to redeem Notes pursuant to the optional redemption
provisions of Section 3.7 hereof, it shall furnish to the Trustee, at least
forty-five (45) days before a redemption date, an Officers' Certificate setting
forth (i) the Section of this Indenture pursuant to which the redemption shall
occur, (ii) the redemption date, (iii) the principal amount of Notes to be
redeemed and (iv) the redemption price.
If AirGate is required to make an offer to purchase Notes pursuant to
Section 4.10 or 4.14 hereof, it shall furnish to the Trustee, at least
forty-five (45) days before the scheduled purchase date, an Officers'
Certificate setting forth (i) the section of this Indenture pursuant to which
the offer to purchase shall occur, (ii) the terms of the offer, (iii) the
principal amount of Notes to be purchased, (iv) the purchase price, (v) the
purchase date and (vi) further setting forth a statement to the effect that (a)
AirGate or one its Subsidiaries has effected an Asset Sale and there are Excess
Proceeds aggregating more than $10.0 million or (b) a Change of Control has
occurred, as applicable.
AirGate will also provide the Trustee with any additional information that
the Trustee reasonably requests in connection with any redemption or offer.
SECTION 3.2 SELECTION OF NOTES TO BE REDEEMED.
If less than all of the Notes are to be redeemed at any time, the Trustee
shall select the Notes to be redeemed among the Holders in compliance with the
requirements of the principal national securities exchange, if any, on which the
Notes are listed or, if the Notes are not so listed, on a pro rata basis, by lot
or by such method as the Trustee shall deem fair and appropriate (and in a
manner that complies with applicable legal requirements); provided that no Notes
of $100 or less shall be redeemed in part. Notices of redemption shall be mailed
by first class mail at least 30 but not more than 60 days before the redemption
date to each Holder of Notes to be redeemed at its registered address. Notices
of redemption may not be conditional. If any Note is to be redeemed in part
only, the notice of redemption that relates to such Note shall state the portion
of the principal amount thereof to be redeemed. A new Note in principal amount
equal to the unredeemed portion of the original Note will be issued in the name
of the Holder thereof upon cancellation of the original Note. Notes called for
redemption become due on the date fixed for redemption. On and after the
redemption date, interest ceases to accrue on Notes or portions of them called
for redemption. The Trustee shall make the selection from the Notes outstanding
and not previously called for redemption and shall promptly notify AirGate in
writing of the Notes selected for redemption. The Trustee may select for
redemption portions (equal to $1,000 or any integral multiple thereof) of the
principal of the Notes that have denominations larger than $100.
SECTION 3.3 NOTICE OF REDEMPTION.
Subject to the provisions of Section 3.9, at least 30 days but not more
than 60 days before a redemption date, AirGate shall mail or cause to be mailed
by first class mail, a notice of redemption to each Holder whose Notes are to be
redeemed.
The notice shall identify the Notes to be redeemed and shall state:
(1) the redemption date;
(2) the redemption price;
(3) if any Note is being redeemed in part, the portion of the
principal amount of such Notes to be redeemed and that, after the
redemption date, upon surrender of such Note, a new Note or Notes
in principal amount equal to the unredeemed portion shall be
issued upon cancellation of the original Note;
(4) the name, telephone number and address of the Paying Agent;
(5) that Notes called for redemption must be surrendered to the
Paying Agent to collect the redemption price;
(6) that, unless AirGate defaults in making such redemption payment,
interest, if any, on Notes called for redemption ceases to accrue
on and after the redemption date;
(7) the paragraph of the Notes and/or Section of this Indenture
pursuant to which the Notes called for redemption are being
redeemed; and
(8) that no representation is made as to the correctness or accuracy
of the CUSIP number, if any, listed in such notice or printed on
the Notes.
At AirGate's request, the Trustee shall give the notice of redemption in
AirGate's name and at AirGate's expense; provided, however, that AirGate shall
have delivered to the Trustee, at least 45 days prior to the redemption date, an
Officers' Certificate requesting that the Trustee give such notice and setting
forth the information to be stated in the notice as provided in the preceding
paragraph. The notice mailed in the manner herein provided shall be conclusively
presumed to have been duly given whether or not the Holder receives such notice.
In any case, failure to give such notice by mail or any defect in the notice to
the Holder of any Note shall not affect the validity of the proceeding for the
redemption of any other Note.
SECTION 3.4 EFFECT OF NOTICE OF REDEMPTION.
Once notice of redemption is mailed in accordance with Section 3.3 hereof,
Notes called for redemption become irrevocably due and payable on the redemption
date at the redemption price plus accrued and unpaid interest, if any, to such
date. A notice of redemption may not be conditional.
SECTION 3.5 DEPOSIT OF REDEMPTION OF PURCHASE PRICE.
On or before 10:00 a.m. (New York City time) on each redemption date or the
date on which Notes must be accepted for purchase pursuant to Section 4.10 or
4.14, AirGate shall deposit with the Trustee or with the Paying Agent (other
than AirGate or an Affiliate of AirGate) money sufficient to pay the redemption
price of and accrued and unpaid interest, if any, on all Notes to be redeemed or
purchased on that date. The Trustee or the Paying Agent shall promptly return to
AirGate any money deposited with the Trustee or the Paying Agent by AirGate in
excess of the amounts necessary to pay the redemption price of (including any
applicable premium), and accrued interest, if any, on, all Notes to be redeemed
or purchased.
If Notes called for redemption or tendered in an Asset Sale Offer or Change
of Control Offer are paid or if AirGate has deposited with the Trustee or Paying
Agent money sufficient to pay the redemption or purchase price of, and unpaid
and accrued interest, if any, on, all Notes to be redeemed or purchased, on and
after the redemption or purchase date, interest, if any, shall cease to accrue
on the Notes or the portions of Notes called for redemption or tendered and not
withdrawn in an Asset Sale Offer or Change of Control Offer (regardless of
whether certificates for such securities are actually surrendered). If a Note is
redeemed or purchased on or after an interest record date but on or prior to the
related interest payment date, then any accrued and unpaid interest, if any,
shall be paid to the Person in whose name such Note was registered at the close
of business on such record date. If any Note called for redemption shall not be
so paid upon surrender for redemption because of the failure of AirGate to
comply with the preceding paragraph, interest shall be paid on the unpaid
principal from the redemption or purchase date until such principal is paid, and
to the extent lawful on any interest not paid on such unpaid principal, in each
case, at the rate provided in the Notes and in Section 4.1 hereof.
SECTION 3.6 NOTES REDEEMED IN PART.
Upon surrender of a Note that is redeemed in part, AirGate shall issue and,
upon the written request of an Officer of AirGate, the Trustee shall
authenticate for the Holder at the expense of AirGate a new Note equal in
principal amount to the unredeemed portion of the Note surrendered.
SECTION 3.7 OPTIONAL REDEMPTION.
The Notes will not be redeemable at AirGate's option prior to January 1,
2006. Thereafter, the Notes will be subject to redemption at any time at the
option of AirGate, in whole or in part, upon not less than 30 nor more than 60
days' notice, at the redemption prices (expressed as percentages of principal
amount) set forth below plus accrued and unpaid interest thereon, if any, to the
applicable redemption date (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment
date), if redeemed during the twelve-month period beginning on January 1 of the
years indicated below:
Year Percentage
2006.......................................... 104.688%
2007.......................................... 102.344%
2008 and thereafter........................... 100.000%
SECTION 3.8 MANDATORY REDEMPTION.
Except as set forth under Sections 3.9, 4.10 and 4.14 hereof, AirGate shall
not be required to make mandatory redemption or sinking fund payments with
respect to the Notes.
SECTION 3.9 REPURCHASE OFFERS.
In the event that AirGate shall be required to commence an offer to all
Holders to repurchase Notes (a "Repurchase Offer") pursuant to Section 4.10
hereof, an "Excess Proceeds Offer," or pursuant to Section 4.14 hereof, a
"Change of Control Offer," AirGate shall follow the procedures specified below.
A Repurchase Offer shall commence no earlier than 30 days and no later than
60 days after a Change of Control (unless AirGate is not required to make such
offer pursuant to Section 4.14 hereof) or an Excess Proceeds Offer Triggering
Event (as defined in Section 4.10), as the case may be, and remain open for a
period of twenty (20) Business Days following its commencement and no longer,
except to the extent that a longer period is required by applicable law (the
"Offer Period"). No later than five (5) Business Days after the termination of
the Offer Period (the "Purchase Date"), AirGate shall purchase the aggregate
principal amount of Notes required to be purchased pursuant to Section 4.10
hereof, in the case of an Excess Proceeds Offer, or Section 4.14 hereof, in the
case of a Change of Control Offer (the "Offer Amount") or, if less than the
Offer Amount has been tendered, all Notes tendered in response to the Repurchase
Offer. Payment for any Notes so purchased shall be made in the same manner as
interest payments are made.
If the Purchase Date is on or after an interest record date and on or
before the related interest payment date, any accrued and unpaid interest, if
any, shall be paid to the Person in whose name a Note is registered at the close
of business on such record date, and no additional interest, if any, shall be
payable to Holders who tender Notes pursuant to the Repurchase Offer.
Upon the commencement of a Repurchase Offer, AirGate shall send, by first
class mail, a notice to the Trustee and each of the Holders. The notice shall
contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to such Repurchase Offer. The Repurchase Offer shall be
made to all Holders. The notice, which shall govern the terms of the Repurchase
Offer, shall describe the transaction or transactions that constitute the Change
of Control or Excess Proceeds Offer Triggering Event, as the case may be and
shall state:
(a) that the Repurchase Offer is being made pursuant to this Section
3.9 and Section 4.10 or 4.14 hereof, as the case may be, and the
length of time the Repurchase Offer shall remain open;
(b) the Offer Amount, the purchase price and the Purchase Date;
(c) that any Note not tendered or accepted for payment shall continue
to accrete or accrue interest;
(d) that, unless AirGate defaults in making such payment, any Note
accepted for payment pursuant to the Repurchase Offer shall cease
to accrete or accrue interest after the Purchase Date;
(e) that Holders electing to have a Note purchased pursuant to a
Repurchase Offer shall be required to surrender the Note, with
the form entitled "Option of Holder to Elect Purchase" on the
reverse of the Note duly completed, or transfer by book-entry
transfer, to AirGate, the Depositary, or the Paying Agent at the
address specified in the notice not later than the close of
business on the last day of the Offer Period;
(f) that Holders shall be entitled to withdraw their election if
AirGate, the Depositary or the Paying Agent, as the case may be,
receives, not later than the expiration of the Offer Period, a
telegram, telex, facsimile transmission or letter setting forth
the name of the Holder, the principal amount of the Note the
Holder delivered for purchase and a statement that such Holder is
withdrawing his election to have such Note purchased;
(g) that, if the aggregate principal amount of Notes surrendered by
Holders exceeds the Offer Amount, the Trustee shall select the
Notes to be purchased on a pro rata basis (with such adjustments
as may be deemed appropriate by the Trustee so that only Notes in
denominations of $1,000, or integral multiples thereof, shall be
purchased); and
(h) that Holders whose Notes were purchased only in part shall be
issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered (or transferred by book-entry
transfer).
On or before 10:00 a.m. (New York City time) on each Purchase Date, AirGate
shall irrevocably deposit with the Trustee or Paying Agent (other than AirGate
or an Affiliate of AirGate) in immediately available funds the aggregate
purchase price equal to the Offer Amount, together with accrued and unpaid
interest, if any, thereon, to be held for payment in accordance with the terms
of this Section 3.9. On the Purchase Date, AirGate shall, to the extent lawful,
(i) accept for payment, on a pro rata basis to the extent necessary, the Offer
Amount of Notes or portions thereof tendered pursuant to the Repurchase Offer,
or if less than the Offer Amount has been tendered, all Notes tendered, (ii)
deliver or cause the Paying Agent or depositary, as the case may be, to deliver
to the Trustee Notes so accepted and (iii) deliver to the Trustee an Officers'
Certificate stating that such Notes or portions thereof were accepted for
payment by AirGate in accordance with the terms of this Section 3.9. AirGate,
the Depositary or the Paying Agent, as the case may be, shall promptly (but in
any case not later than three (3) Business Days after the Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase price of the
Notes tendered by such Holder and accepted by AirGate for purchase, plus any
accrued and unpaid interest, if any, thereon, and AirGate shall promptly issue a
new Note, and the Trustee, at the written request of AirGate, shall authenticate
and mail or deliver at the expense of AirGate such new Note, to such Holder,
equal in principal amount to any unpurchased portion of such Holder's Notes
surrendered. Any Note not so accepted shall be promptly mailed or delivered by
AirGate to the Holder thereof. AirGate shall publicly announce in a newspaper of
general circulation or in a press release provided to a nationally recognized
financial wire service the results of the Repurchase Offer on the Purchase Date.
Other than as specifically provided in this Section 3.9, any purchase
pursuant to this Section 3.9 shall be made pursuant to the provisions of
Sections 3.1 through 3.6 hereof.
ARTICLE IV
COVENANTS
SECTION 4.1 PAYMENT OF NOTES.
(a) AirGate shall pay or cause to be paid the principal of, premium, if
any, and interest on the Notes on the dates and in the manner provided
in the Notes. Principal, premium, if any, and interest, shall be
considered paid for all purposes hereunder on the date the Paying
Agent, if other than AirGate or a Subsidiary thereof, holds, as of
10:00 a.m. (New York City time), money deposited by AirGate in
immediately available funds and designated for and sufficient to pay
all such principal, premium, if any, and interest then due.
(b) AirGate shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal at the rate
equal to 1% per annum in excess of the then applicable interest rate
on the Notes to the extent lawful; it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable
grace period) at the same rate to the extent lawful.
SECTION 4.2 MAINTENANCE OF OFFICE OR AGENCY.
AirGate shall maintain in the Borough of Manhattan, the City of New York an
office or agency (which may be an office of the Trustee or an affiliate of the
Trustee or Registrar) where Notes may be surrendered for registration of
transfer or for exchange and where notices and demands to or upon AirGate in
respect of the Notes and this Indenture may be served. AirGate 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 AirGate shall fail to maintain any such
required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Trustee.
AirGate may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve AirGate of
its obligation to maintain an office or agency in the Borough of Manhattan, the
City of New York for such purposes. AirGate shall give prompt written notice to
the Trustee of any such designation or rescission and of any change in the
location of any such other office or agency.
AirGate hereby designates the Corporate Trust Office of the Trustee as one
such office or agency of AirGate in accordance with Section 2.3 hereof.
SECTION 4.3 COMMISSION REPORTS.
Whether or not required by the rules and regulations of the Commission, so
long as any Notes are outstanding, AirGate shall furnish to the Holders of Notes
(i) all quarterly and annual financial information that is required to be filed
with the Commission on Forms 10-Q and 10-K to the extent AirGate does not file
such Forms with the Commission, including a "Management's Discussion and
Analysis of Financial Condition and Results of Operations" and, with respect to
the annual information only, a report thereon by AirGate's certified independent
accountants and (ii) all current reports that are required to be filed with the
Commission on Form 8-K to the extent AirGate does not file such reports with the
Commission. In addition, whether or not required by the rules and regulations of
the Commission, AirGate shall file a copy of all such information and reports
with the Commission for public availability (unless the Commission will not
accept such a filing) within the time periods that would have been applicable
had AirGate been subject to such rules and regulations and make such information
available to securities analysts and prospective investors upon request. AirGate
shall at all times comply with TIA ss. 314(a).
To the extent AirGate does not publicly file such financial information
with the Commission, the financial information shall be filed with the Trustee
and mailed to the Holders at the expense of AirGate at their addresses appearing
in the register of Notes maintained by the Registrar, within 90 days after the
end of AirGate's fiscal years and within 45 days after the end of each of the
first three quarters of each such fiscal year.
AirGate shall provide the Trustee with a sufficient number of copies of all
reports and other documents and information and, if requested by AirGate, the
Trustee will deliver such reports to the Holders under this Section 4.3.
SECTION 4.4 COMPLIANCE CERTIFICATE.
AirGate shall deliver to the Trustee, within 90 days after the end of each
fiscal year, an Officers' Certificate stating that a review of the activities of
AirGate and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining whether
each has kept, observed, performed and fulfilled its obligations under this
Indenture (including, with respect to any Restricted Payments made during such
year, the basis upon which the calculations required by Section 4.7 hereof were
computed, which calculations may be based on AirGate's latest available
financial statements), and further stating, as to each such Officer signing such
certificate, that, to the best of his or her knowledge, each entity has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event of
Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action AirGate is taking or
proposes to take with respect thereto) and that, to the best of his or her
knowledge, no event has occurred and remains in existence by reason of which
payments on account of the principal of, premium, if any, or interest on the
Notes is prohibited or if such event has occurred, a description of the event
and what action AirGate is taking or proposes to take with respect thereto.
AirGate shall, so long as any of the Notes are outstanding, deliver to the
Trustee, forthwith upon any Officer becoming aware of any Default or Event of
Default, an Officers' Certificate specifying such Default or Event of Default
and what action AirGate is taking or proposes to take with respect thereto.
SECTION 4.5 TAXES.
AirGate shall pay, and shall cause each of its Subsidiaries to pay, prior
to delinquency all material taxes, assessments and governmental levies, except
such as are contested in good faith and by appropriate proceedings and with
respect to which appropriate reserves have been taken in accordance with GAAP or
where the failure to effect such payment is not adverse in any material respect
to the Holders of the Notes.
SECTION 4.6 STAY, EXTENSION AND USURY LAWS.
AirGate covenants (to the extent that it may lawfully do so) that it shall
not at any time insist upon, plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay, extension or usury law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and AirGate and each of the Guarantors (to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law, and covenants that it shall not, by resort to any
such law, hinder, delay or impede the execution of any power herein granted to
the Trustee, but shall suffer and permit the execution of every such power as
though no such law has been enacted.
SECTION 4.7 LIMITATION ON RESTRICTED PAYMENTS.
AirGate shall not, and shall not permit any Restricted Subsidiary to,
directly or indirectly,
(1) declare or pay any dividend on, or make any distribution to the holders of,
any shares of its Equity Interests, other than dividends or distributions
payable solely in its Equity Interests, other than Disqualified Stock, or
in options, warrants or other rights to purchase any such Equity Interests,
other than Disqualified Stock;
(2) purchase, redeem or otherwise acquire or retire for value, other than value
consisting solely of Equity Interests of AirGate that is not Disqualified
Stock or options, warrants or other rights to acquire such Equity Interests
that is not Disqualified Stock, any Equity Interests of AirGate, including
options, warrants or other rights to acquire such Equity Interests;
(3) redeem, repurchase, defease or otherwise acquire or retire for value, other
than value consisting solely of Equity Interests of AirGate that is not
Disqualified Stock or options, warrants or other rights to acquire such
Equity Interests that is not Disqualified Stock, prior to any scheduled
maturity, scheduled repayment or scheduled sinking fund payment, any
Indebtedness that is subordinate, whether pursuant to its terms or by
operation of law, in right of payment to the Notes; or
(4) make any Investment that is not a Permitted Investment;
(each of the foregoing actions set forth in clauses (1) through (4), other than
any such action that is a Permitted Investment, being referred to as a
"Restricted Payment"), unless, at the time thereof, after giving effect thereto,
(a) no Default or Event of Default shall have occurred and be continuing;
(b) AirGate would, at the time of such Restricted Payment and after giving
pro forma effect thereto as if such Restricted Payment had been made
at the beginning of the applicable period, have been permitted to
incur at least $1.00 of additional Indebtedness pursuant to the first
paragraph of Section 4.9 hereof; and
(c) after giving effect to such Restricted Payment on a pro forma basis,
the aggregate amount of all Restricted Payments made on or after the
Closing Date shall not exceed:
(i) the amount of (x) the Operating Cash Flow of AirGate after June
30, 2003 through the end of the latest full fiscal quarter for
which consolidated financial statements of AirGate are available
preceding the date of such Restricted Payment, treated as a
single accounting period, less (y) 150% of the cumulative
Consolidated Interest Expense of AirGate after June 30, 2003
through the end of the latest full fiscal quarter for which
consolidated financial statements of AirGate are available
preceding the date of such Restricted Payment treated as a single
accounting period, plus
(ii) the aggregate Net Proceeds, including the fair market value of
property other than cash, as determined:
(A) in the case of any property other than cash with a
value less than $25 million, by the Board of Directors,
whose good-faith determination shall be conclusive and
as evidenced by a Board Resolution, or
(B) in the case of any property other than cash with a
value equal to or greater than $25 million, by an
accounting, appraisal or investment banking firm of
national standing and evidenced by a written opinion of
such firm,
received by AirGate from the issuance and sale, other than
to a Restricted Subsidiary, on or after the Closing Date of
shares of its Equity Interests other than Disqualified
Stock, or any options, warrants or other rights to purchase
such Equity Interests, other than Disqualified Stock, plus
(iii)the aggregate Net Proceeds, including the fair market value of
property other than cash, as determined:
(A) in the case of any property other than cash with a
value less than $25 million, by the Board of Directors,
whose good-faith determination shall be conclusive and
as evidenced by a Board Resolution, or
(B) in the case of any property other than cash with a
value equal to or greater than $25 million, by an
accounting, appraisal or investment banking firm of
national standing and evidenced by a written opinion of
such firm,
received by AirGate from the issuance or sale, other than to
a Restricted Subsidiary, after the Closing Date of any
Equity Interests of AirGate, other than Disqualified Stock,
or any options, warrants or other rights to purchase such
Equity Interests, other than Disqualified Stock, upon the
conversion of, or exchange for, Indebtedness of AirGate or a
Restricted Subsidiary, plus
(iv) the aggregate Net Proceeds received by AirGate or any
Restricted Subsidiary from the sale, disposition or
repayment, other than to AirGate or a Restricted
Subsidiary, of any Investment made after the Closing
Date and constituting a Restricted Payment in an amount
equal to the lesser of (x) the return of capital with
respect to such Investment and (y) the initial amount
of such Investment previously made (and treated as a
Restricted Payment), in either case, less the cost of
disposition of such Investment.
The foregoing limitations in this Section 4.7 do not limit or restrict the
making of any Permitted Investment, and a Permitted Investment shall not be
counted as a Restricted Payment for purposes of clause (c), except that a
Permitted Investment made pursuant to clause (g) of the definition of "Permitted
Investment" shall be counted as a Restricted Payment for the purposes of clause
(c). In addition, so long as no Default or Event of Default shall have occurred
and be continuing, the foregoing limitations do not prevent AirGate from:
(1) the payment of a dividend on Equity Interests of AirGate within 60
days after the declaration thereof if, on the date when the dividend
was declared, AirGate could have paid such dividend in accordance with
the provisions of this Indenture;
(2) the repurchase of Equity Interests of AirGate, including options,
warrants or other rights to acquire such Equity Interests, from former
employees or directors of AirGate or any Subsidiary thereof for
consideration not to exceed $2.0 million in the aggregate in any
fiscal year; provided that any unused amount in any 12 month period
may be carried forward to one or more future periods; provided,
further, that the aggregate amount of all such repurchases made
pursuant to this clause (2) does not exceed $10.0 million in the
aggregate;
(3) the redemption, repurchase, defeasance or other acquisition or
retirement for value of Indebtedness that is subordinated in right of
payment to the Notes, including premium, if any, and accrued and
unpaid interest, with the proceeds of, or in exchange for:
(a) the proceeds of a capital contribution or a substantially
concurrent offering of, shares of Equity Interests, other than
Disqualified Stock, of AirGate or options, warrants or other
rights to acquire such Equity Interests, or
(b) Indebtedness that (i) is at least as subordinated in right of
payment to the Notes, including premium, if any, and accrued and
unpaid interest, as the Indebtedness being purchased, and (ii)
has a final maturity date later than the final maturity date of,
and has a Weighted Average Life to Maturity equal to or greater
than the Weighted Average Life to Maturity of, the Indebtedness
being repurchased, with Restricted Payments pursuant to this
clause not being counted as Restricted Payments for purposes of
clause (c) above;
(4) the repurchase, redemption or other acquisition of Equity Interests of
AirGate, or options, warrants or other rights to acquire such Equity
Interests, in exchange for, or out of the proceeds of a capital
contribution or a substantially concurrent offering of, shares of
common stock, other than Disqualified Stock, of AirGate or options,
warrants or other rights to acquire such Equity Interests;
(5) the repurchase, redemption, defeasance, acquisition or retirement for
value of Senior Subordinated Discount Notes using no more than $25.0
million;
(6) the payment of any dividend (or, in the case of any partnership or
limited liability company, any similar distribution) by a Restricted
Subsidiary of AirGate to the holders of its Equity Interests on a pro
rata basis; or
(7) other Restricted Payments not to exceed $5.0 million in the aggregate
at any time outstanding, with Restricted Payments pursuant to this
clause not being counted as Restricted Payments for purposes of clause
(c) above.
Restricted Payments made pursuant to clause (1) of the immediately
preceding paragraph will be included in the calculation of subsequent Restricted
Payments. In addition, if any Person in which an Investment is made, which
Investment constitutes a Restricted Payment when made, thereafter becomes a
Restricted Subsidiary, all such Investments previously made in such Person shall
no longer be counted as Restricted Payments for purposes of calculating the
aggregate amount of Restricted Payments pursuant to clause (c) of this Section
4.7 to the extent such Investments would otherwise be so counted.
For purposes of clauses (3) and (4) above, the net proceeds received by
AirGate from the issuance or sale of its Equity Interests either upon the
conversion of, or exchange for, Indebtedness of AirGate or any Restricted
Subsidiary shall be deemed to be an amount equal to (a) the sum of (1) the
principal amount or accreted value, whichever is less, of such Indebtedness on
the date of such conversion or exchange and (2) the additional cash
consideration, if any, received by AirGate upon such conversion or exchange,
less any payment on account of fractional shares, minus (b) all expenses
incurred in connection with such issuance or sale. In addition, for purposes of
clauses (3) and (4) above, the net proceeds received by AirGate from the
issuance or sale of its Equity Interests upon the exercise of any options or
warrants of AirGate or any Restricted Subsidiary shall be deemed to be an amount
equal to (a) the additional cash consideration, if any, received by AirGate upon
such exercise, minus (b) all expenses incurred in connection with such issuance
or sale.
For purposes of this Section 4.7, if a particular Restricted Payment
involves a noncash payment, including a distribution of assets, then such
Restricted Payment shall be deemed to be an amount equal to the cash portion of
such Restricted Payment, if any, plus an amount equal to the fair market value
of the noncash portion of such Restricted Payment, as determined by the Board of
Directors, whose good-faith determination shall be conclusive and evidenced by a
Board Resolution.
Not later than the date of making any Restricted Payment, AirGate shall
deliver to the Trustee an Officers' Certificate stating that such Restricted
Payment is permitted and setting forth the basis upon which the calculations
required by this Section 4.7 were computed, together with a copy of any fairness
opinion or appraisal required by this Indenture.
The amount of any Investment outstanding at any time shall be deemed to be
equal to the amount of such Investment on the date made, less the return of
capital, repayment of loans and return on capital, including interest and
dividends, in each case, received in cash, up to the amount of such Investment
on the date made.
SECTION 4.8 LIMITATION ON DIVIDENDS AND OTHER PAYMENT
RESTRICTIONS AFFECTING SUBSIDIARIES.
AirGate will not, and will not permit any of its Restricted Subsidiaries,
directly or indirectly, to create or permit to exist or become effective any
encumbrance or restriction on the ability of any Restricted Subsidiary to:
(1) pay dividends or make any other distributions on its Capital Stock to
AirGate or any of AirGate's Restricted Subsidiaries, or with respect
to any other interest or participation in, or measured by, its
profits, or pay any indebtedness owed to AirGate or any of its
Restricted Subsidiaries;
(2) make loans or advances to AirGate or any of AirGate's Restricted
Subsidiaries; or
(3) transfer any of its properties or assets to AirGate or any of
AirGate's Restricted Subsidiaries.
However, the preceding restrictions will not apply to encumbrances or
restrictions existing under, or by reason of:
(1) Existing Indebtedness or Credit Facilities as in effect on the date of
this Indenture and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or
refinancings thereof, provided that such amendments, modifications,
restatements, renewals, increases, supplements, refundings,
replacement or refinancings are no more restrictive, taken as a whole,
with respect to such dividend and other payment restrictions than
those contained in such Existing Indebtedness, as in effect on the
date of this Indenture;
(2) this Indenture, the Notes and the Security Documents;
(3) applicable law;
(4) any instrument governing Indebtedness or Capital Stock of a Person
acquired by AirGate or any of its Restricted Subsidiaries as in effect
at the time of such acquisition, except to the extent such
Indebtedness was incurred in connection with or in contemplation of
such acquisition, which encumbrance or restriction is not applicable
to any Person, or the properties or assets of any Person, other than
the Person, or the property or assets of the Person, so acquired,
provided that, in the case of Indebtedness, such Indebtedness was
permitted by the terms of this Indenture to be incurred;
(5) customary non-assignment provisions in leases entered into in the
ordinary course of business and consistent with past practices;
(6) purchase money obligations for property acquired in the ordinary
course of business that impose restrictions on the property so
acquired of the nature described in clause (3) of the preceding
paragraph of this Section 4.8;
(7) any agreement for the sale or other disposition of a Restricted
Subsidiary that restricts distributions by such Restricted Subsidiary
pending its sale or other disposition;
(8) Permitted Refinancing Indebtedness, provided that the restrictions
contained in the agreements governing such Permitted Refinancing
Indebtedness are no more restrictive, taken as a whole, than those
contained in the agreements governing the Indebtedness being
refinanced;
(9) Liens relating to Indebtedness otherwise permitted to be incurred and
secured pursuant to the provisions of Sections 4.9 and 4.12 hereof
that limit the right of AirGate or any of its Restricted Subsidiaries
to dispose of the assets securing such Indebtedness;
(10) provisions with respect to the disposition or distribution of assets
or property in joint venture agreements and other similar agreements
entered into in the ordinary course of business; and
(11) restrictions on cash or other deposits or net worth imposed by
customers or vendors under contracts entered into in the ordinary
course of business.
SECTION 4.9 LIMITATION ON INCURRENCE OF INDEBTEDNESS
AND ISSUANCE OF PREFERRED STOCK.
AirGate shall not, and shall not permit any Restricted Subsidiary to, incur
any Indebtedness, including Acquired Debt, other than Permitted Debt, and
AirGate shall not issue any Disqualified Stock unless immediately after giving
effect to the incurrence of such Indebtedness or the issuance of such
Disqualified Stock and the receipt and application of the net proceeds
therefrom, including, without limitation, the application or use of the net
proceeds therefrom to repay Indebtedness or make any Restricted Payment, the
Consolidated Debt to Operating Cash Flow Ratio would be (1) less than 7.0 to
1.0, if prior to September 30, 2005, (2) less than 6.0 to 1.0, if on or after
September 30, 2005 and (3) less than 5.0 to 1.0, if on or after September 30,
2006.
So long as no Default or Event of Default shall have occurred and be
continuing or would be caused thereby, the first paragraph of this covenant will
not prohibit the incurrence of any of the following items of Indebtedness
(collectively, "Permitted Debt"):
(1) the incurrence by AirGate and its Subsidiaries of Existing
Indebtedness;
(2) the incurrence by AirGate and the Guarantors of Indebtedness
represented by the Notes and the Guarantees;
(3) the incurrence by AirGate and any Guarantor of Indebtedness under
Credit Facilities; provided that the aggregate principal amount of all
Indebtedness of AirGate and the Guarantors outstanding under all
Credit Facilities at any time outstanding, after giving effect to such
incurrence, does not exceed an amount equal to $175.0 million less the
aggregate amount of all Net Proceeds of Asset Sales applied by AirGate
or any of its Subsidiaries since the date of this Indenture to
permanently repay Indebtedness under a Credit Facility pursuant to
Section 4.10 hereof and shall be accompanied by a corresponding
reduction in commitment thereunder;
(4) the incurrence by AirGate or any of its Restricted Subsidiaries of
Indebtedness represented by Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for
the purpose of leasing or financing all or any part of the purchase
price or cost of construction or improvement of inventory, property,
plant or equipment used in the business of AirGate or such Restricted
Subsidiary, including telephone and computer systems and operating
facilities, in an aggregate principal amount not to exceed $5.0
million at any time outstanding and the aggregate principal amount of
such Indebtedness does not exceed the fair market value (on the date
of incurrence thereof) of the property so leased or financed;
(5) the incurrence by AirGate or any of its Restricted Subsidiaries of
Permitted Refinancing Indebtedness in exchange for, or the net
proceeds of which are used to refund, refinance or replace,
Indebtedness, other than intercompany Indebtedness, that was permitted
by the first paragraph of this Section 4.9 or clause (1), (2) or (12)
of this paragraph;
(6) the incurrence by AirGate or any of its Restricted Subsidiaries of
intercompany Indebtedness between or among AirGate and any of its
Wholly Owned Restricted Subsidiaries that are Guarantors; provided,
however, that:
(a) if AirGate or any Guarantor is the obligor on such Indebtedness,
such Indebtedness, other than intercompany Obligations owed by
AirGate to AGW Leasing Company, Inc. relating to tower leases or
licenses and leases of real property, must be expressly
subordinated to the prior payment in full in cash of all
Obligations with respect to the Notes, in the case of AirGate, or
the Guarantee of such Guarantor, in the case of a Guarantor; and
(b) (1) any subsequent issuance or transfer of Equity Interests that
results in any such Indebtedness being held by a Person other
than AirGate or a Wholly Owned Restricted Subsidiary thereof and
(2) any sale or other transfer of any such Indebtedness to a
Person that is not either AirGate or a Wholly Owned Restricted
Subsidiary thereof, shall be deemed, in each case, to constitute
an incurrence of such Indebtedness by AirGate or such Restricted
Subsidiary, as the case may be, that was not permitted by this
clause (6);
(7) the incurrence by AirGate or any of its Restricted Subsidiaries of
Hedging Obligations that are incurred for the purpose of fixing or
hedging interest rate risk with respect to any floating rate
Indebtedness that is permitted by the terms of this Indenture to be
outstanding;
(8) the guarantee by AirGate or any of the Guarantors of Indebtedness of
AirGate or a Restricted Subsidiary of AirGate that was permitted to be
incurred by another provision of this covenant;
(9) incurrence by AirGate's Unrestricted Subsidiaries of Non-Recourse
Debt; provided, however, that if any such Indebtedness ceases to be
Non-Recourse Debt of an Unrestricted Subsidiary, such event shall be
deemed to constitute an incurrence of Indebtedness by a Restricted
Subsidiary of AirGate that was not permitted by this clause (9);
(10) the accrual of interest, accretion or amortization of original issue
discount, the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, and the payment of
dividends on Disqualified Stock in the form of additional shares of
the same class of Disqualified Stock;
(11) Indebtedness (A) in respect of performance, surety or appeal bonds or
bankers' acceptances provided in the ordinary course of business; and
(B) arising from agreements providing for providing for
indemnification, adjustment of purchase price or similar obligations,
or from guarantees or letters of credit, surety bonds or performance
bonds securing any obligations of AirGate or any Restricted Subsidiary
pursuant to such agreements, in any case incurred in connection with
the disposition of any business, assets or Restricted Subsidiary
(other than guarantees of Indebtedness incurred by a person acquiring
all or any portion of such business, assets or Restricted Subsidiary
for the purpose of financing such acquisition), in a principal amount
not to exceed the gross proceeds actually received by AirGate or any
Restricted Subsidiary in connection with such disposition;
(12) the incurrence by AirGate or any of its Restricted Subsidiaries of
additional Indebtedness in an aggregate principal amount, or accreted
value, as applicable, at any time outstanding, including all Permitted
Refinancing Indebtedness incurred to refund, refinance or replace any
Indebtedness incurred pursuant to this clause (12), not to exceed
$50.0 million; and
(13) the incurrence by AirGate of any Indebtedness under the promissory
note executed by AirGate pursuant to Section 6(d)(ii) of the Consent
and Agreement, dated August 16, 1999, among Lucent Technologies Inc.,
Sprint Spectrum L.P., SprintCom, Inc., Sprint Communications Company,
L.P. and WirelessCo, L.P. and acknowledged by AirGate and AirGate's
stockholders.
In the event of the incurrence by AirGate or any Guarantor of any
Indebtedness under any Credit Facilities other than the Credit Agreement as in
effect on the date hereof which would constitute Senior Debt hereunder, Airgate
shall deliver to the Trustee an Officers' Certificate demonstrating that the
Indebtedness in respect of such Credit Facilities is permitted to be incurred
under clause (3) of Section 4.9 hereof, together with a copy of the principal
documents that will evidence or govern such Indebtedness.
For purposes of determining compliance with this Section 4.9, in the event
that an item of proposed Indebtedness meets the criteria of more than one of the
categories of Permitted Debt described in clauses (1) through (13) above, or is
entitled to be incurred pursuant to the first paragraph of this Section 4.9,
AirGate will be permitted to classify such item of Indebtedness on the date of
its incurrence, or later reclassify all or a portion of such item of
Indebtedness, in any manner that complies with this Section 4.9.
SECTION 4.10 ASSET SALES.
AirGate, will not, and will not permit any of its Restricted Subsidiaries
to, consummate an Asset Sale unless:
(1) AirGate, or the 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 or Equity Interests issued or sold or
otherwise disposed of;
(2) such fair market value is determined by AirGate's Board of Directors
and, if such fair market value exceeds $5.0 million, is evidenced by a
resolution of the Board of Directors set forth in an Officers'
Certificate delivered to the Trustee;
(3) at least 75% of the consideration therefor received by AirGate or such
Restricted Subsidiary is in the form of cash or Cash Equivalents. For
purposes of this provision, each of the following shall be deemed to
be cash:
(a) any liabilities, as shown on AirGate's or such Restricted
Subsidiary's most recent balance sheet, of AirGate or any
Restricted Subsidiary, other than contingent liabilities and
liabilities that are by their terms subordinated to the Notes or
any Guarantee, that are assumed by the transferee of any such
assets pursuant to a customary novation agreement that releases
AirGate or such Restricted Subsidiary from further liability; and
(b) any securities, Notes or other obligations received by AirGate or
any such Restricted Subsidiary from such transferee that are
contemporaneously, subject to ordinary settlement periods,
converted by AirGate or such Restricted Subsidiary into cash, to
the extent of the cash received in that conversion; and
(4) if such Asset Sale involves the transfer of Collateral, (a) such Asset
Sale complies with the applicable provisions of the Security Documents
and (b) all consideration (other than cash) received in such Asset
Sale shall be expressly made subject to the Lien under the Security
Documents, which Lien shall be junior in priority to a similar Lien
granted to secure Senior Debt.
Within 360 days after the receipt of any Net Proceeds from an Asset Sale,
AirGate may apply such Net Proceeds at its option:
(1) to repay Senior Debt;
(2) to acquire all or substantially all of the assets of, or a majority of
the Voting Stock of, another Permitted Business which becomes part of,
or which is or becomes, a Restricted Subsidiary;
(3) to make a capital expenditure in assets that are used or useful in a
Permitted Business; or
(4) to acquire other long-term assets that are used or useful in a
Permitted Business.
Pending the final application of any such Net Proceeds, AirGate may temporarily
reduce revolving credit borrowings or otherwise invest such Net Proceeds in any
manner that is not prohibited by this Indenture.
Any Net Proceeds from Asset Sales that are not applied or invested as
provided in the preceding paragraph will constitute "Excess Proceeds." When the
aggregate amount of Excess Proceeds exceeds $10.0 million (an "Excess Proceeds
Triggering Event"), AirGate will make an Asset Sale Offer. The offer price in
any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued
and unpaid interest, if any, to the date of purchase and will be payable in
cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
AirGate may use such Excess Proceeds for any purpose not otherwise prohibited by
this Indenture. If the aggregate principal amount of Notes and such other pari
passu Indebtedness tendered into such Asset Sale Offer exceeds the amount of
Excess Proceeds, the Trustee shall select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata basis. Upon completion of each Asset
Sale Offer, the amount of Excess Proceeds shall be reset at zero.
AirGate will comply with the requirements of Rule 14e-1 under the Exchange
Act and any other securities laws and regulations thereunder to the extent such
laws and regulations are applicable in connection with each repurchase of Notes
pursuant to an Asset Sale Offer. To the extent that the provisions of any
securities laws or regulations conflict with the Asset Sale provisions of this
Indenture, AirGate will comply with the applicable securities laws and
regulations and will not be deemed to have breached its obligations under the
Asset Sale provisions of this Indenture by virtue of such conflict.
SECTION 4.11 LIMITATION ON TRANSACTIONS WITH AFFILIATES.
AirGate will not, and will not permit any of its Restricted Subsidiaries
to, make any payment to, or sell, lease, transfer or otherwise dispose of any of
its properties or assets to, or purchase any property or assets from, or enter
into or make or amend any transaction, contract, agreement, understanding, loan,
advance or guarantee with, or for the benefit of, any Affiliate (each, an
"Affiliate Transaction"), unless:
(1) such Affiliate Transaction is on terms that are no less favorable to
AirGate or the relevant Restricted Subsidiary than those that would
have been obtained in a comparable transaction by AirGate or such
Restricted Subsidiary with an unrelated Person; and
(2) AirGate delivers to the Trustee:
(a) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in
excess of $1.0 million, a resolution of the Board of Directors
set forth in an Officers' Certificate certifying that such
Affiliate Transaction complies with this covenant and that such
Affiliate Transaction has been approved by a majority of the
disinterested members of the Board of Directors; provided,
however, AirGate need not deliver such Officers' Certificate to
the Trustee with respect to any Affiliate Transaction or series
of related Affiliate Transactions that involve (i) aggregate
consideration not in excess of $5.0 million and (ii) an Affiliate
that (x) engages in a related telecommunication services
business, (y) bids on, owns or leases spectrum or (z) provides
management, billing or customer care services; and
(b) with respect to any Affiliate Transaction or series of related
Affiliate Transactions involving aggregate consideration in
excess of $25.0 million, an opinion as to the fairness to the
Holders of such Affiliate Transaction from a financial point of
view issued by an accounting, appraisal or investment banking
firm of national standing.
The following items shall not be deemed to be Affiliate Transactions and,
therefore, will not be subject to the provisions of the prior paragraph:
(1) any employment agreement, including payments made thereunder in
securities or cash, entered into by AirGate or any of its Restricted
Subsidiaries in the ordinary course of business of AirGate or such
Restricted Subsidiary;
(2) transactions between or among AirGate and/or its Restricted
Subsidiaries;
(3) payment of reasonable directors' fees, expenses and indemnification
(whether such payment is made pursuant to AirGate's charter or by-laws
or a written agreement with any director or officer);
(4) Restricted Payments that are permitted by Section 4.7; and
(5) sales of Equity Interests, other than Disqualified Stock, and the
grant of registration rights with respect thereto, to Affiliates of
AirGate.
SECTION 4.12 LIMITATION ON LIENS.
AirGate will not, and will not permit any Restricted Subsidiary to,
directly or indirectly, incur any Lien of any kind, other than Permitted Liens,
on or with respect to any property or assets now owned or hereafter acquired or
any interest therein or any income or profits therefrom.
SECTION 4.13 LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.
AirGate will not, and will not permit any of its Restricted Subsidiaries
to, enter into any Sale and Leaseback Transaction; provided that AirGate or any
Restricted Subsidiary of AirGate that is a Guarantor may enter into a Sale and
Leaseback Transaction if:
(1) AirGate or that Guarantor, as applicable, could have (a) incurred
Indebtedness in an amount equal to the Attributable Debt relating to
such Sale and Leaseback Transaction under the first paragraph of
Section 4.9 hereof and (b) incurred a Lien to secure such Indebtedness
pursuant to Section 4.12 hereto;
(2) the gross cash proceeds of that Sale and Leaseback Transaction are at
least equal to the fair market value of the property that is the
subject of such Sale and Leaseback Transaction, as determined in good
faith by the Board of Directors and, if the aggregate consideration
received in the Sale and Leaseback Transaction exceeds $1.0 million,
is set forth in an Officers' Certificate delivered to the Trustee; and
(3) the transfer of assets in that Sale and Leaseback Transaction is
permitted by, and AirGate applies the proceeds of such transaction in
compliance with, Section 4.10 hereof.
SECTION 4.14 OFFER TO PURCHASE UPON CHANGE OF CONTROL.
Upon the occurrence of a Change of Control, each Holder will have the right
to require AirGate to repurchase all or any part (equal to $100 or an integral
multiple thereof) of such Holder's Notes pursuant to the offer described below
(the "Change of Control Offer") at an offer price in cash equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest thereon, if
any, to the date of purchase (subject to the right of holders of record on the
relevant record date to receive interest due on the relevant interest payment
date) (the "Change of Control Payment"). Within 30 days following any Change of
Control, AirGate will mail a notice to each Holder describing the transaction or
transactions that constitute the Change of Control and offering to repurchase
Notes on the date specified in such notice, which date shall be no earlier than
30 days and no later than 60 days from the date such notice is mailed (the
"Change of Control Payment Date"), pursuant to the procedures required by
Section 3.9 hereof and described in such notice. AirGate shall comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent such laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a
Change of Control.
On the Change of Control Payment Date, AirGate shall, to the extent lawful,
(a) accept for payment all Notes or portions thereof properly tendered pursuant
to the Change of Control Offer, (b) deposit with the Paying Agent an amount
equal to the Change of Control Payment in respect of all Notes or portions
thereof so tendered and (c) deliver or cause to be delivered to the Trustee the
Notes so accepted together with an Officers' Certificate stating the aggregate
principal amount of Notes or portions thereof being purchased by AirGate. The
Paying Agent will promptly mail to each Holder of Notes so tendered the Change
of Control Payment for such Notes, and the Trustee will promptly authenticate
and mail (or cause to be transferred by book entry) to each Holder a new Note
equal in principal amount to any unpurchased portion of the Notes surrendered,
if any; provided that each such new Note will be in a principal amount of $100
or an integral multiple thereof. AirGate will publicly announce the results of
the Change of Control Offer on or as soon as practicable after the Change of
Control Payment Date.
Prior to complying with any of the provisions of this Section 4.14, but in
any event within 90 days following a Change of Control, AirGate will either
repay all outstanding Senior Debt or obtain the requisite consents, if any,
under all agreements governing outstanding Senior Debt to permit the repurchase
of Notes required by this Section 4.14. AirGate will publicly announce the
results of the Change of Control offer on or as soon as practicable after the
Change of Control Payment Date.
The Change of Control provisions described above will be applicable whether
or not any other provisions of this Indenture are applicable. Except as
described above with respect to a Change of Control, this Indenture does not
contain provisions that permit the Holders to require that AirGate repurchase or
redeem the Notes in the event of a takeover, recapitalization or similar
transaction.
AirGate shall not be required to make a Change of Control Offer upon a
Change of Control if a third party makes the Change of Control Offer in the
manner, at the times and otherwise in compliance with the requirements set forth
herein applicable to a Change of Control Offer made by AirGate and purchases all
Notes validly tendered and not withdrawn under such Change of Control Offer.
To the extent that the provisions of any securities laws or regulations
conflict with the Change of Control provisions of this Indenture, AirGate will
comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under the Change of Control provisions
of this Indenture by virtue of such conflict.
SECTION 4.15 CORPORATE EXISTENCE.
Subject to Section 4.14 and Article V hereof, as the case may be, AirGate
shall do or cause to be done all things necessary to preserve and keep in full
force and effect its corporate existence and the corporate, partnership or other
existence of each of its Subsidiaries in accordance with the respective
organizational documents (as the same may be amended from time to time) of
AirGate or any such Subsidiary and the rights (charter and statutory), licenses
and franchises of AirGate and its Subsidiaries; provided that AirGate shall not
be required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any of its Subsidiaries, if the Board of
Directors of AirGate shall determine that the preservation thereof is no longer
desirable in the conduct of the business of AirGate and its Subsidiaries, taken
as a whole, and that the loss thereof is not adverse in any material respect to
the Holders.
SECTION 4.16 LIMITATION ON ISSUANCES AND SALES OF EQUITY
INTERESTS IN WHOLLY OWNED RESTRICTED SUBSIDIARIES.
AirGate will not, and will not permit any of its Restricted Subsidiaries
to, transfer, convey, sell, lease or otherwise dispose of any Equity Interests
in any Wholly Owned Restricted Subsidiary of AirGate to any Person, other than
AirGate or a Wholly Owned Restricted Subsidiary of AirGate, unless:
(1) such transfer, conveyance, sale, lease or other disposition is of all
the Equity Interests in such Wholly Owned Restricted Subsidiary; and
(2) such transfer, conveyance, sale, lease or other disposition is
effected in accordance with Section 4.10.
In addition, AirGate will not permit any Wholly Owned Restricted Subsidiary
of AirGate to issue any of its Equity Interests, other than, if necessary,
shares of its Capital Stock constituting directors' qualifying shares, to any
Person other than to AirGate or a Wholly Owned Restricted Subsidiary of AirGate.
SECTION 4.17 BUSINESS ACTIVITIES.
AirGate shall not, and shall not permit any Restricted Subsidiary to,
engage in any business other than Permitted Businesses.
SECTION 4.18 PAYMENT FOR CONSENTS.
AirGate will not, and will not permit any of its Subsidiaries to, directly
or indirectly, pay or cause to be paid any consideration to or for the benefit
of any Holder for or as an inducement to any consent, waiver or amendment of any
of the terms or provisions of this Indenture or the Notes unless such
consideration is offered to be paid and is paid to all Holders that consent,
waive or agree to amend in the time frame set forth in the solicitation
documents relating to such consent, waiver or agreement.
SECTION 4.19 LIMITATION ON SENIOR SUBORDINATED DEBT.
Neither AirGate nor the Guarantors will incur any Indebtedness that
pursuant to its terms is subordinate or junior in right of payment to any Senior
Debt or any Permitted Debt described in clause (4) of the second paragraph of
Section 4.9 and senior in any respect in right of payment to the Notes or the
Guarantees; provided that the foregoing limitation shall not apply to
distinctions between categories of Senior Debt of AirGate or a Guarantor that
exist by reason of any Liens or guarantees arising or created in respect of some
but not all such Senior Debt.
SECTION 4.20 ADDITIONAL GUARANTEES.
If AirGate or any of its Restricted Subsidiaries acquires or creates
another Restricted Subsidiary after the date of this Indenture, then that newly
acquired or created Restricted Subsidiary must become a Guarantor and (i)
execute a supplemental indenture satisfactory to the Trustee making such
Restricted Subsidiary a party to this Indenture, (ii) execute an endorsement of
Guarantee substantially in the form of Exhibit B attached hereto, (iii) deliver
an Opinion of Counsel to the Trustee and (iv) become a party to the
Second-Priority Security Documents, in each case within 10 Business Days of the
date on which it was acquired or created.
SECTION 4.21 DESIGNATION OF RESTRICTED AND UNRESTRICTED
SUBSIDIARIES.
The Board of Directors may designate any Restricted Subsidiary as an
Unrestricted Subsidiary if that designation would not cause a Default. If a
Restricted Subsidiary is designated as an Unrestricted Subsidiary, all
outstanding Investments owned by AirGate and its Restricted Subsidiaries in the
Subsidiary so designated will be deemed to be an Investment made as of the time
of such designation and will reduce the amount available for Restricted Payments
under paragraph (c) of Section 4.7 or Permitted Investments, as applicable. All
such outstanding Investments will be valued at their fair market value at the
time of such designation. That designation will only be permitted if such
Restricted Payment would be permitted at that time and if such Restricted
Subsidiary otherwise meets the definition of an Unrestricted Subsidiary. The
Board of Directors may redesignate any Unrestricted Subsidiary to be a
Restricted Subsidiary if the redesignation would not cause a Default.
SECTION 4.22 FURTHER INSTRUMENTS AND ACTS.
Upon request by the Trustee, AirGate shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to
carry out more effectively the purposes of this Indenture.
ARTICLE V
SUCCESSORS
SECTION 5.1 MERGER, CONSOLIDATION OR SALE OF ASSETS.
AirGate shall not, in any transaction or series of related transactions,
merge or consolidate with or into, or sell, assign, convey, transfer or
otherwise dispose of its properties and assets substantially as an entirety to,
any Person, and shall not permit any of its Restricted Subsidiaries to enter
into any such transaction or series of transactions if such transaction or
series of transactions, in the aggregate, would result in a sale, assignment,
conveyance, transfer or other disposition of the properties and assets of
AirGate and its Restricted Subsidiaries, taken as a whole, substantially as an
entirety to any Person, unless, at the time and after giving effect thereto:
(1) either: (A) if the transaction or series of transactions is a
consolidation of AirGate with or a merger of AirGate with or into any
other Person, AirGate shall be the surviving Person of such merger or
consolidation, or (B) the Person formed by any consolidation with or
merger with or into AirGate, or to which the properties and assets of
AirGate or AirGate and its Restricted Subsidiaries, taken as a whole,
as the case may be, substantially as an entirety are sold, assigned,
conveyed or otherwise transferred (any such surviving Person or
transferee Person referred to in this clause (B) being the "Surviving
Entity"), shall be a corporation, partnership, limited liability
company or trust organized and existing under the laws of the United
States of America, any state thereof or the District of Columbia and
shall expressly assume by a supplemental indenture executed and
delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of AirGate under the Notes and this Indenture and, in each
case, this Indenture, as so supplemented, shall remain in full force
and effect;
(2) immediately before and immediately after giving effect to such
transaction or series of transactions on a pro forma basis including
any Indebtedness incurred or anticipated to be incurred in connection
with or in respect of such transaction or series of transactions, no
Default or Event of Default shall have occurred and be continuing; and
(3) AirGate or the Surviving Entity will, at the time of such transaction
and after giving pro forma effect thereto as if such transaction had
occurred at the beginning of the applicable period, (A) have
Consolidated Net Worth immediately after the transaction equal to or
greater than the Consolidated Net Worth of AirGate immediately
preceding the transaction and (B) be permitted to Incur at least $1.00
of additional Indebtedness pursuant to the first paragraph of Section
4.9 hereof; provided, however, that the foregoing requirements shall
not apply to any transaction or series of transactions involving the
sale, assignment, conveyance, transfer or other disposition of the
properties and assets by any Restricted Subsidiary or AirGate to any
other Restricted Subsidiary or AirGate, or the merger or consolidation
of any Restricted Subsidiary with or into any other Restricted
Subsidiary or AirGate.
AirGate may not, directly or indirectly, lease all or substantially all of
its properties or assets, in one or more related transactions, to any other
Person.
In connection with any consolidation, merger, sale, assignment, conveyance,
transfer or other disposition contemplated by this Section 5.1, AirGate shall
deliver, or cause to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers' Certificate, which shall
set forth the manner of determination of AirGate's compliance with clause (3) of
this Section 5.1 stating that such consolidation, merger, sale, assignment,
conveyance, transfer, or other disposition and the supplemental indenture in
respect thereof, required under clause (1)(B) of the preceding paragraph, comply
with the requirements of this Indenture and an Opinion of Counsel.
For all purposes of this Indenture and the Notes, including the provisions
described in the two immediately preceding paragraphs and Sections 4.9 and 4.21
hereof, Subsidiaries of any Surviving Entity will, upon such transaction or
series of transactions, become Restricted Subsidiaries or Unrestricted
Subsidiaries as provided pursuant to Section 4.21 hereof and all Indebtedness of
the Surviving Entity and its Subsidiaries that was not Indebtedness of AirGate
and its Subsidiaries immediately prior to such transaction or series of
transactions shall be deemed to have been incurred upon such transaction or
series of transactions.
The Surviving Entity shall succeed to, and be substituted for, and may
exercise every right and power of AirGate under this Indenture, and the
predecessor company shall be released from all its obligations and covenants
under this Indenture and the Notes.
SECTION 5.2 SUCCESSOR CORPORATION SUBSTITUTED.
Upon any consolidation or merger, or any sale, assignment, transfer, lease,
conveyance or other disposition of all or substantially all of the assets of
AirGate in accordance with Section 5.1 hereof, the successor corporation formed
by such consolidation or into or with which AirGate is merged or to which such
sale, assignment, transfer, lease, conveyance or other disposition is made shall
succeed to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the "Company" shall refer instead to
the successor corporation and not to AirGate), and shall exercise every right
and power of AirGate under this Indenture with the same effect as if such
successor Person had been named as AirGate herein.
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.1 EVENTS OF DEFAULT
Each of the following constitutes an "Event of Default":
(i) default for 30 days in the payment when due of interest on the
Notes, whether or not prohibited by Article XII hereof;
(ii) default in payment when due of principal of or premium, if any,
on the Notes, whether or not prohibited by Article XII hereof;
(iii)failure by AirGate or any of its Restricted Subsidiaries to
comply with the provisions described under Sections 4.10 and 4.14
hereof;
(iv) failure by AirGate or any of its Restricted Subsidiaries for 60
days after notice from the Trustee or the Holders of at least 25%
in principal amount of the Notes then outstanding to comply with
the provisions of any other agreement in this Indenture;
(v) default under any mortgage, indenture or instrument under which
there may be issued or by which there may be secured or evidenced
any Indebtedness for money borrowed by AirGate or any of its
Restricted Subsidiaries (or the payment of which is guaranteed by
AirGate or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the
date hereof, which default:
(a) is caused by a failure to pay principal of or premium, if
any, or interest on such Indebtedness prior to the
expiration of the grace period provided in such Indebtedness
on the date of such default (a "Payment Default") or
(b) results in the acceleration of such Indebtedness prior to
its express maturity,
and in each case, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of
which has been so accelerated, aggregates $10.0 million or more;
(vi) failure by AirGate or any of its Restricted Subsidiaries to pay
final judgments aggregating in excess of $10.0 million, which
judgments are not paid, discharged or stayed for a period of 60
days;
(vii)any Second-Priority Security Document or the Intercreditor
Agreement is held to be unenforceable or invalid for any reason,
the security interests purported to be created by the
Second-Priority Security Documents are held to be unenforceable,
invalid or impaired with respect to a material portion of the
Collateral, AirGate or any Guarantor defaults in the performance
of the terms of any of the Second-Priority Security Documents or
the Intercreditor Agreement in a manner which adversely affects
the enforceability or validity of the security interest on a
material portion of the Collateral or in a manner which adversely
affects the condition or value of a material portion of the
Collateral, or AirGate or any Guarantor repudiates or disaffirms
any of its obligations under any of the Second-Priority Security
Documents or the Intercreditor Agreement;
(viii) except as permitted by this Indenture, any Guarantee shall be
held in any judicial proceeding to be unenforceable or invalid or
shall cease for any reason to be in full force and effect or any
Guarantor, or any Person acting on behalf of any Guarantor, shall
deny or disaffirm its obligations under its Guarantee;
(ix) AirGate, any Restricted Subsidiary that is a Significant
Subsidiary or any group of Restricted Subsidiaries that, taken as
a whole, would constitute a Significant Subsidiary, pursuant to
or within the meaning of any Bankruptcy Law:
(a) commences a voluntary case,
(b) consents to the entry of an order for relief against it in
an involuntary case,
(c) consents to the appointment of a Custodian of it or for all
or substantially all of its property,
(d) makes a general assignment for the benefit of its creditors,
or
(e) generally is not paying its debts as they become due;
(x) a court of competent jurisdiction enters an order or decree under
any Bankruptcy Law that:
(a) is for relief against AirGate or any of its Restricted
Subsidiaries in an involuntary case;
(b) appoints a Custodian of AirGate or any of its Restricted
Subsidiaries or for all or substantially all of the property
of the Company or any of its Restricted Subsidiaries; or
(c) orders the liquidation of AirGate or any of its Restricted
Subsidiaries and the order or decree remains unstayed and in
effect for 60 consecutive days; or
(xi) any event occurs that causes, subject to any applicable grace
period, an Event of Termination under any of the Sprint
Agreements.
The term "Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.
SECTION 6.2 ACCELERATION.
If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately. Upon such declaration,
the principal of, premium, if any, and accrued and unpaid interest on the Notes
shall be due and payable immediately. Notwithstanding the foregoing, in the case
of an Event of Default as described in clause (ix) or (x) of Section 6.1 hereof,
all outstanding Notes will become due and payable without further action or
notice. Holders may not enforce this Indenture or the Notes except as provided
in this Indenture.
In the case of any Event of Default occurring by reason of any willful
action (or inaction) taken (or not taken) by or on behalf of AirGate with the
intention of avoiding payment of the premium that AirGate would have had to pay
if AirGate then had elected to redeem the Notes pursuant to Section 3.7 hereof,
an equivalent premium shall also become and be immediately due and payable to
the extent permitted by law upon the acceleration of the Notes. If an Event of
Default occurs prior to January 1, 2006 by reason of any willful action (or
inaction) taken (or not taken) by or on behalf of AirGate with the intention of
avoiding the prohibition on redemption of the Notes prior to January 1, 2006,
then the amount payable in respect of such Notes for purposes of this paragraph
shall be equal to 109.375% of the aggregate principal amount.
SECTION 6.3 OTHER REMEDIES.
If an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of principal, premium, if any, interest
on the Notes or to enforce the performance of any provision of the Notes or this
Indenture.
The Trustee may maintain a proceeding even if it does not possess any of
the Notes or does not produce any of them in the proceeding. A delay or omission
by the Trustee or any Holder in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver of
or acquiescence in the Event of Default. All remedies are cumulative to the
extent permitted by law.
Pursuant to Section 4.4, AirGate is required to deliver to the Trustee
annually a statement regarding compliance with this Indenture, and AirGate is
required upon becoming aware of any Default or Event of Default, to deliver to
the Trustee a statement specifying such Default or Event of Default.
SECTION 6.4 WAIVER OF PAST DEFAULTS.
The Holders of a majority in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of the
Notes waive any existing Default or Event of Default and its consequences under
this Indenture except a continuing Default or Event of Default in the payment of
interest on, or the principal of, the Notes (other than as a result of an
acceleration), which shall require the consent of all of the Holders of the
Notes then outstanding.
SECTION 6.5 CONTROL BY MAJORITY.
The Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the time, method and place of conducting any
proceeding for exercising any remedy available to the Trustee or exercising any
trust power conferred on it. However, (i) the Trustee may refuse to follow any
direction that conflicts with law or this Indenture, that the Trustee determines
may be unduly prejudicial to the rights of other Holders or that may involve the
Trustee in personal liability, and (ii) the Trustee may take any other action
deemed proper by the Trustee which is not inconsistent with such direction. In
case an Event of Default shall occur (which shall not be cured), the Trustee
will be required, in the exercise of its power, to use the degree of care of a
prudent man in the conduct of his own affairs. Notwithstanding any provision to
the contrary in this Indenture, the Trustee is under no obligation to exercise
any of its rights or powers under this Indenture at the request of any Holder,
unless such Holder shall offer to the Trustee security and indemnity
satisfactory to it against any loss, liability or expense.
SECTION 6.6 LIMITATION ON SUITS.
A Holder may pursue a remedy with respect to this Indenture or the Notes
only if:
(a) the Holder gives to the Trustee written notice of a continuing
Event of Default or the Trustee receives such notice from
AirGate;
(b) the Holders of at least 25% in aggregate principal amount of the
then outstanding Notes make a written request to the Trustee to
pursue the remedy;
(c) such Holder or Holders offer and, if requested, provide to the
Trustee indemnity or security reasonably satisfactory to the
Trustee against any loss, liability or expense;
(d) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer and, if requested, the
provision of such indemnity or security; and
(e) during such 60-day period the Holders of a majority in aggregate
principal amount of the then outstanding Notes do not give the
Trustee a direction inconsistent with the request.
A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over another Holder.
SECTION 6.7 RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT.
Notwithstanding any other provision of this Indenture, the right of any
Holder to receive payment of principal, premium, if any, and interest on or
after the respective due dates expressed in the Note (including in connection
with an offer to purchase), or to bring suit for the enforcement of any such
payment on or after such respective dates, shall not be impaired or affected
without the consent of such Holder.
SECTION 6.8 COLLECTION SUIT BY TRUSTEE.
If an Event of Default specified in Section 6.1(i) or (ii) hereof occurs
and is continuing, the Trustee is authorized to recover judgment in its own name
and as trustee of an express trust against AirGate for the whole amount of
principal of, premium and interest remaining unpaid on the Notes and interest on
overdue principal and, to the extent lawful, interest and such further amount as
shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
SECTION 6.9 TRUSTEE MAY FILE PROOFS OF CLAIM.
The Trustee is authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to AirGate (or any other
obligor upon the Notes), its creditors or its property and shall be entitled and
empowered to collect, receive and distribute any money or other securities or
property payable or deliverable upon the conversion or exchange of the Notes or
on any such claims and any Custodian in any such judicial proceeding is hereby
authorized by each Holder to make such payments to the Trustee, and in the event
that the Trustee shall consent to the making of such payments directly to the
Holders, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.7 hereof. To
the extent that the payment of any such compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due
the Trustee under Section 7.7 hereof out of the estate in any such proceeding,
shall be denied for any reason, payment of the same shall be secured by a Lien
on, and shall be paid out of, any and all distributions, dividends, money,
securities and other properties that the Holders may be entitled to receive in
such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.
SECTION 6.10 PRIORITIES.
If the Trustee collects any money pursuant to this Article VI, it shall pay
out the money in the following order:
First: to the Trustee, its agents and attorneys for amounts due under
Section 7.7 hereof, including payment of all reasonable compensation, expense
and liabilities incurred, and all advances made, by the Trustee and the costs
and expenses of collection;
Second: to holders of Senior Debt for amounts due;
Third: to Holders of Notes for amounts due and unpaid on the Notes for
principal, premium, if any, and interest ratably, without preference or priority
of any kind, according to the amounts due and payable on the Notes for
principal, premium, if any, and interest respectively;
Fourth: without duplication, to the Holders for any other Obligations owing
to the Holders under this Indenture and the Notes; and
Fifth: to AirGate or to such party as a court of competent jurisdiction
shall direct.
The Trustee may fix a record date and payment date for any payment to
Holders pursuant to this Section 6.10.
SECTION 6.11 UNDERTAKING FOR COSTS.
In any suit for the enforcement of any right or remedy under this Indenture
or in any suit against the Trustee for any action taken or omitted by it as a
Trustee, a court in its discretion may require the filing by any party litigant
in the suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section 6.11
does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section
6.7 hereof, or a suit by Holders of more than 10% in principal amount of the
then outstanding Notes.
ARTICLE VII
TRUSTEE
SECTION 7.1 DUTIES OF TRUSTEE.
(a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this
Indenture and use the same degree of care and skill in its exercise,
as a prudent person would exercise or use under the circumstances in
the conduct of his or her own affairs.
(b) Except during the continuance of an Event of Default:
(i) the duties of the Trustee shall be determined solely by the
express provisions of this Indenture or the TIA and the Trustee
need perform only those duties that are specifically set forth in
this Indenture or the TIA and no others, and no implied covenants
or obligations shall be read into this Indenture against the
Trustee; and
(ii) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates
or opinions furnished to the Trustee and conforming to the
requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other
facts stated therein). However, the Trustee shall examine the
certificates and opinions to determine whether or not they
conform to the requirements of this Indenture.
(c) The Trustee may not be relieved from liabilities for its own negligent
action, its own negligent failure to act, or its own willful
misconduct, except that:
(i) this paragraph does not limit the effect of paragraph (b) of this
Section 7.1;
(ii) the Trustee shall not be liable for any error of judgment made in
good faith by an officer of the Trustee, unless it is proved that
the Trustee was negligent in ascertaining the pertinent facts;
and
(iii)the Trustee shall not be liable with respect to any action it
takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 6.5 hereof.
(d) Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to
paragraphs (a), (b) and (c) of this Section 7.1.
(e) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability. The Trustee shall be under
no obligation to exercise any of its rights and powers under this
Indenture at the request of any Holders, unless such Holder shall have
offered to the Trustee security and indemnity satisfactory to it
against any loss, liability or expense.
(f) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with AirGate. Money held
in trust by the Trustee need not be segregated from other funds except
to the extent required by law.
SECTION 7.2 RIGHTS OF TRUSTEE.
(a) The Trustee may conclusively rely and shall be fully 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 or an Opinion of Counsel or both. The Trustee
shall not be liable for any action it takes or omits to take in good
faith in reliance on such Officers' Certificate or Opinion of Counsel.
Prior to taking, suffering or admitting any action, the Trustee may
consult with counsel of the Trustee's own choosing and the Trustee
shall be fully protected from liability in respect of any action
taken, suffered or omitted by it hereunder in good faith and in
conclusive reliance on the advice or opinion of such counsel.
(c) The Trustee may act through its attorneys and agents and shall not be
responsible for the misconduct or negligence of any attorney or agent
appointed with due care.
(d) The Trustee shall not be liable for any action it takes or omits to
take in good faith that it believes to be authorized or within the
rights or powers conferred upon it by this Indenture. Any request or
direction of AirGate mentioned herein shall be sufficiently evidenced
by an Officers' Certificate and any resolution of the Board of
Directors may be sufficiently evidenced by a Board Resolution.
Whenever in the administration of this Indenture the Trustee shall
deem it desirable that a matter be proved or established prior to
taking, suffering or omitting any action hereunder, the Trustee
(unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officers'
Certificate.
(e) Unless otherwise specifically provided in this Indenture, any demand,
request, direction or notice from AirGate or a Guarantor shall be
sufficient if signed by an Officer of AirGate or such Guarantor.
(f) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction
of any of the Holders unless such Holders shall have offered to the
Trustee reasonable security or indemnity satisfactory to the Trustee
against the costs, expenses and liabilities that might be incurred by
it in compliance with such request or direction.
(g) The Trustee shall not be bound to make any investigation into the
facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other
paper or documents, but the Trustee, in its discretion, may make such
further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall determine to make such further
inquiry or investigation, it shall be entitled to examine during
normal business hours the books, records and premises of AirGate,
personally or by agent or attorney at the sole cost of AirGate and
shall incur no liability or additional liability of any kind by reason
of such inquiry or investigation.
(h) The rights, privileges, protections and benefits given to the Trustee,
including, without limitation, its rights 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 Persons
employed to act hereunder.
(i) The Trustee may request that AirGate deliver an Officers' Certificate
setting forth the names of individuals and/or titles of officers
authorized at such time to take specified actions pursuant to this
Indenture, which Officers' Certificate may be signed by any person
authorized to sign an Officers' Certificate, including any person
specified as so authorized in any such certificate previously
delivered and not superseded.
SECTION 7.3 INDIVIDUAL RIGHTS OF TRUSTEE.
The Trustee in its individual or any other capacity may become the owner or
pledgee of Notes and may otherwise deal with AirGate or any Affiliate of AirGate
with the same rights it would have if it were not Trustee. However, in the event
that the Trustee acquires any conflicting interest it must eliminate such
conflict within 90 days, apply to the Commission for permission to continue as
Trustee or resign. Any Agent may do the same with like rights and duties. The
Trustee is also subject to Sections 7.10 and 7.11 hereof.
SECTION 7.4 TRUSTEE'S DISCLAIMER.
The Trustee shall not be responsible for and makes no representation as to
the validity or adequacy of this Indenture or the Notes, it shall not be
accountable for AirGate's use of the proceeds from the Notes or any money paid
to AirGate or upon AirGate's direction under any provision of this Indenture, it
shall not be responsible for the use or application of any money received by any
Paying Agent other than the Trustee, and it shall not be responsible for any
statement or recital herein or any statement in the Notes, any statement or
recital on any Officers' Certificate delivered to the Trustee under Article IV
or Sections 8.4 or 10.4 hereof, or any other document in connection with the
sale of the Notes or pursuant to this Indenture other than its certificate of
authentication.
SECTION 7.5 NOTICE OF DEFAULTS.
If a Default or Event of Default occurs and is continuing and if it is
known to an officer of the Trustee, the Trustee shall mail to Holders a notice
of the Default or Event of Default within 90 days after it occurs. Except in the
case of a Default or Event of Default in payment of principal of, premium, if
any, or interest on any Note, the Trustee may withhold the notice if and so long
as the Trustee in good faith determines that withholding the notice is in the
interests of the Holders.
SECTION 7.6 REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES.
Within 60 days after each May 15 beginning with the May 15 following the
date of this Indenture, and for so long as Notes remain outstanding, the Trustee
shall mail to the Holders a brief report dated as of such reporting date that
complies with TIA ss. 313(a) (but if no event described in TIA ss. 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted). The Trustee also shall comply with TIA ss. 313(b). The Trustee
shall also transmit by mail all reports as required by TIA ss. 313(c).
A copy of each report at the time of its mailing to the Holders shall be
mailed to AirGate and filed with the Commission and each stock exchange on which
AirGate has informed the Trustee in writing the Notes are listed in accordance
with TIA ss. 313(d). AirGate shall promptly notify the Trustee when the Notes
are listed on any stock exchange and of any delisting thereof.
SECTION 7.7 COMPENSATION AND INDEMNITY.
AirGate shall pay to the Trustee from time to time reasonable compensation
for its acceptance of this Indenture and services hereunder. The Trustee's
compensation shall not be limited by any law on compensation of a trustee of an
express trust. AirGate shall reimburse the Trustee promptly upon request for all
reasonable disbursements, advances and expenses incurred or made by it in
addition to the compensation for its services. Such expenses shall include the
reasonable compensation, disbursements and expenses of the Trustee's agents and
counsel.
AirGate shall indemnify the Trustee (which for purposes of this Section 7.7
shall include its officers, directors, employees and agents) against any and all
claims, damage, losses, liabilities or expenses incurred by it arising out of or
in connection with the acceptance or administration of its duties under this
Indenture, including the costs and expenses of enforcing this Indenture against
AirGate (including this Section 7.7) and defending itself against any claim
(whether asserted by AirGate or any Holder or any other person) or liability in
connection with the exercise or performance of any of its powers or duties
hereunder except to the extent any such loss, claim, damage, liability or
expense may be attributable to its negligence or bad faith. The Trustee shall
notify AirGate promptly of any claim for which it may seek indemnity. Failure by
the Trustee to so notify AirGate shall not relieve AirGate of its obligations
hereunder. AirGate shall defend the claim and the Trustee shall cooperate in the
defense. The Trustee may have separate counsel and AirGate shall pay the
reasonable fees and expenses of such counsel. AirGate need not pay for any
settlement made without its consent, which consent shall not be unreasonably
withheld.
The obligations of AirGate under this Section 7.7 shall survive the
satisfaction and discharge of this Indenture or the resignation or removal of
the Trustee.
To secure AirGate's payment obligations in this Section 7.7, the Trustee
shall have a Lien prior to the Notes on all money or property held or collected
by the Trustee, except that held in trust to pay principal or interest, if any,
on particular Notes. Such Lien shall survive the satisfaction and discharge of
this Indenture and the resignation or removal of the Trustee.
When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 6.1 (ix), (x) or (xi) hereof occurs, the expenses
and the compensation for the services (including the fees and expenses of its
agents and counsel) are intended to constitute expenses of administration under
any Bankruptcy Law.
The Trustee shall comply with the provisions of TIA ss. 313(b)(2) to the
extent applicable.
SECTION 7.8 REPLACEMENT OF TRUSTEE.
A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section 7.8.
The Trustee may resign in writing at any time and be discharged from the
trust hereby created by so notifying AirGate. The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and AirGate in writing. AirGate may remove the Trustee if:
(a) the Trustee fails to comply with Section 7.10 hereof;
(b) the Trustee is adjudged a bankrupt or an insolvent or an order
for relief is entered with respect to the Trustee under any
Bankruptcy Law;
(c) a Custodian or public officer takes charge of the Trustee or its
property; or
(d) the Trustee becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, AirGate shall promptly appoint a successor Trustee.
Within one year after the successor Trustee takes office, the Holders of a
majority in principal amount of the then outstanding Notes may appoint a
successor Trustee to replace the successor Trustee appointed by AirGate.
If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, AirGate, or the
Holders of at least 10% in principal amount of the then outstanding Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.
If the Trustee, after written request by any Holder who has been a Holder
for at least six months, fails to comply with Section 7.10 hereof, such Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.
A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to AirGate. Thereupon, the resignation or removal of
the retiring Trustee shall become effective, and the successor Trustee shall
have all the rights, powers and the duties of the Trustee under this Indenture.
The successor Trustee shall mail a notice of its succession to the Holders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, provided that all sums owing to the Trustee hereunder
have been paid and subject to the Lien provided for in Section 7.7 hereof.
Notwithstanding replacement of the Trustee pursuant to this Section 7.8,
AirGate's obligations under Section 7.7 hereof shall continue for the benefit of
the retiring Trustee.
SECTION 7.9 SUCCESSOR TRUSTEE BY MERGER, ETC.
If the Trustee or any Agent consolidates, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the
successor Trustee or any Agent, as applicable.
SECTION 7.10 ELIGIBILITY; DISQUALIFICATION.
There shall at all times be a Trustee hereunder that is a corporation
organized and doing business under the laws of the United States of America or
of any state thereof that is authorized under such laws to exercise corporate
trustee power, that is subject to supervision or examination by federal or state
authorities. The Trustee and its direct parent shall at all times have a
combined capital surplus of at least $50.0 million as set forth in its most
recent annual report of condition.
This Indenture shall always have a Trustee who satisfies the requirements
of TIA xx.xx. 310(a)(l), (2) and (5). The Trustee is subject to TIA ss. 310(b)
including the provision in ss. 310(b)(1); provided that there shall be excluded
from the operation of TIA ss. 310(b)(1) any indenture or indentures under which
other securities, or conflicts of interest or participation in other securities,
of AirGate or the Guarantors are outstanding if the requirements for exclusion
set forth in TIA ss. 310(b)(1) are met.
SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST AIRGATE.
The Trustee is subject to TIA ss. 311(a), excluding any creditor
relationship listed in TIA ss. 311(b). A Trustee who has resigned or been
removed shall be subject to TIA ss. 311(a) to the extent indicated therein.
SECTION 7.12 TRUSTEE'S APPLICATION FOR INSTRUCTIONS FROM AIRGATE.
Any application by the Trustee for written instructions from AirGate may,
at the option of the Trustee, set forth in writing any action proposed to be
taken or omitted by the Trustee under this Indenture and the date on and/or
after which such action shall be taken or such omission shall be effective. The
Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than five Business
Days after the date any officer of AirGate actually receives such application,
unless any such officer shall have consented in writing to any earlier date)
unless prior to taking any such action (or the effective date in the case of an
omission), the Trustee shall have received written instructions in response to
such application specifying the action to be taken or omitted.
SECTION 7.13 LIMITATION OF LIABILITY.
It is understood by the parties hereto other than the The Bank of New York
(the "Bank") that the sole recourse of the parties hereto other than the Bank in
respect of the obligations of the Trust hereunder and under the other documents
contemplated thereby and related thereto to which it is a party shall be to the
parties hereto other than the Bank. In addition, the Bank is entering into this
Indenture and the other documents contemplated thereby and related thereto to
which it is a party solely in its capacity as trustee under the Indenture and
not in its individual capacity (except as expressly stated herein) and in no
case shall the Bank (or any Person acting as successor trustee under the
Indenture) be personally liable for or on account of any of the statements,
representations, warranties, covenants or obligations stated to be those of
AirGate hereunder or thereunder, all such liability, if any, being expressly
waived by the parties hereto and any person claiming by, through or under such
party, provided, however, that the Bank (or any such successor trustee) shall be
personally liable hereunder and thereunder for its own negligence or willful
misconduct or for its material breach of its covenants, representations and
warranties contained herein or therein, to the extent expressly covenanted or
made in its individual capacity. In no event shall the Trustee, in its capacity
as Paying Agent, Registrar or in any other capacity hereunder, be liable under
or in connection with this Indenture for indirect, special, incidental, punitive
or consequential losses or damages of any kind whatsoever, including but not
limited to lost profits, whether or not foreseeable, even if the Trustee has
been advised of the possibility thereof and regardless of the form of action in
which such damages are sought. The provisions of this Section shall survive the
termination of the Indenture and the resignation or removal of the Trustee.
ARTICLE VIII
LEGAL DEFEASANCE AND COVENANT DEFEASANCE
SECTION 8.1 OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT
DEFEASANCE.
AirGate may, at the option of its Boards of Directors evidenced by a Board
Resolution set forth in an Officers' Certificate, at any time, elect to have
either Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon
compliance with the conditions set forth below in this Article VIII.
SECTION 8.2 LEGAL DEFEASANCE AND DISCHARGE.
Upon AirGate's exercise under Section 8.1 hereof of the option applicable
to this Section 8.2, AirGate shall, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, be deemed to have been discharged
from its obligations with respect to all outstanding Notes on the date the
conditions set forth below are satisfied (hereinafter, "Legal Defeasance"). For
this purpose, Legal Defeasance means that AirGate shall be deemed to have paid
and discharged the entire Indebtedness represented by the outstanding Notes,
which shall thereafter be deemed to be "outstanding" only for the purposes of
Section 8.5 hereof and the other Sections of this Indenture referred to in (a)
and (b) below, and to have satisfied all of its other obligations under such
Notes and this Indenture (and the Trustee, on demand of and at the expense of
AirGate, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
payments in respect of the principal of, premium, if any, and interest, if any,
on such Notes when such payments are due from the trust referred to in Section
8.4(a); (b) AirGate's obligations with respect to such Notes under Sections 2.2,
2.3, 2.4, 2.5, 2.6, 2.7, 2.10 and 4.2 hereof; (c) the rights, powers, trusts,
benefits and immunities of the Trustee, including without limitation thereunder,
under Section 7.7, 8.5 and 8.7 hereof and AirGate's obligations in connection
therewith and (d) the provisions of this Article VIII. Subject to compliance
with this Article VIII, AirGate may exercise its option under this Section 8.2
notwithstanding the prior exercise of its option under Section 8.3 hereof.
SECTION 8.3 COVENANT DEFEASANCE.
Upon AirGate's exercise under Section 8.1 hereof of the option applicable
to this Section 8.3, AirGate shall, subject to the satisfaction of the
conditions set forth in Section 8.4 hereof, be released from its obligations
under the covenants contained in Sections 4.7, 4.8, 4.9, 4.10, 4.11, 4.12, 4.13,
4.14, 4.15, 4.16, 4.17, 4.18, 4.19, 4.20, 4.21 and 5.1 hereof with respect to
the outstanding Notes on and after the date the conditions set forth below are
satisfied (hereinafter, "Covenant Defeasance"), and the Notes shall thereafter
be deemed not "outstanding" for the purposes of any direction, waiver, consent
or declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed "outstanding"
for all other purposes hereunder (it being understood that such Notes shall not
be deemed outstanding for accounting purposes). For this purpose, Covenant
Defeasance means that, with respect to the outstanding Notes, AirGate or any of
its Subsidiaries may omit to comply with and shall have no liability in respect
of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such
covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.1 hereof, but,
except as specified above, the remainder of this Indenture and such Notes shall
be unaffected thereby. In addition, upon AirGate's exercise under Section 8.1
hereof of the option applicable to this Section 8.3, subject to the satisfaction
of the conditions set forth in Section 8.4 hereof, Sections 6.1(iii) and (iv)
hereof shall not constitute Events of Default.
SECTION 8.4 CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.
The following shall be the conditions to the application of either Section
8.2 or 8.3 hereof to the outstanding Notes:
In order to exercise either Legal Defeasance or Covenant Defeasance:
(a) AirGate must irrevocably deposit with the Trustee, in trust, for
the benefit of the Holders, cash in U.S. dollars, non-callable
Government Securities, or a combination thereof, in such amounts
as shall be sufficient, in the written opinion of a nationally
recognized firm of independent public accountants, to pay the
principal of, premium and interest on the outstanding Notes on
the stated maturity or on the applicable redemption date, as the
case may be, and AirGate must specify whether the Notes are being
defeased to maturity or to a particular redemption date;
(b) in the case of an election under Section 8.2 hereof, AirGate
shall also have delivered to the Trustee an Opinion of Counsel
confirming that (A) AirGate has received from, or there has been
published by, the Internal Revenue Service a ruling or (B) since
the date hereof, there has been a change in the applicable
federal income tax law, in either case to the effect that, and
based thereon such opinion of counsel shall confirm that, the
Holders of the outstanding Notes shall not recognize income, gain
or loss for federal income tax purposes as a result of such Legal
Defeasance and shall be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have
been the case if such Legal Defeasance had not occurred;
(c) in the case of an election under Section 8.3 hereof, AirGate
shall also have delivered to the Trustee an Opinion of Counsel in
the United States to the effect that the Holders of the
outstanding Notes shall not recognize income, gain or loss for
federal income tax purposes as a result of such Covenant
Defeasance and shall be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have
been the case if such Covenant Defeasance had not occurred;
(d) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit (other than a Default or
Event of Default resulting from the borrowing of funds to be
applied to such deposit) or insofar as Events of Default from
bankruptcy or insolvency events are concerned, at any time in the
period ending on the 91st day after the date of deposit;
(e) such Legal Defeasance or Covenant Defeasance shall not result in
a breach or violation of, or constitute a default under this
Indenture or any other material agreement or instrument to which
AirGate or any of its Subsidiaries is a party or by which AirGate
or any of its Subsidiaries is bound;
(f) AirGate shall have delivered to the Trustee an Opinion of Counsel
to the effect that after the 91st day following the deposit, the
trust funds shall not be subject to the effect of any applicable
bankruptcy, insolvency, reorganization or similar laws affecting
creditors' rights generally; (g) AirGate shall have delivered to
the Trustee an Officers' Certificate stating that the deposit was
not made by AirGate with the intent of preferring the Holders
over the other creditors of AirGate or with the intent of
defeating, hindering, delaying or defrauding creditors of AirGate
or others; and (h) AirGate shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for relating to the Legal
Defeasance or the Covenant Defeasance have been complied with as
contemplated by this Section 8.4. SECTION 8.5 DEPOSITED MONEY AND
GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS
PROVISIONS.
Subject to Section 8.6 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively for purposes of this Section 8.5, the
"Trustee") pursuant to Section 8.4 hereof in respect of the outstanding Notes
shall be held in trust, shall not be invested, and applied by the Trustee, in
accordance with the provisions of such Notes and this Indenture, to the payment,
either directly or through any Paying Agent (including AirGate or any Subsidiary
acting as Paying Agent) as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money need not be segregated from other
funds except to the extent required by law.
AirGate shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the cash or non-callable Government
Securities deposited pursuant to Section 8.4 hereof or the principal and
interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.
Anything in this Article VIII to the contrary notwithstanding, the Trustee
shall deliver or pay to AirGate from time to time upon the written request of
AirGate and be relieved of all liability with respect to any money or
non-callable Government Securities held by it as provided in Section 8.4 hereof
which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee (which may be the opinion delivered under Section 8.4(a) hereof), are in
excess of the amount thereof that would then be required to be deposited to
effect an equivalent Legal Defeasance or Covenant Defeasance.
SECTION 8.6 REPAYMENT TO AIRGATE.
Any money deposited with the Trustee or any Paying Agent, or then held by
AirGate, in trust for the payment of the principal of, premium, if any, or
interest, if any, on any Note and remaining unclaimed for one year after such
principal, and premium, if any, or interest has become due and payable shall be
paid to AirGate on its written request or (if then held by AirGate) shall be
discharged from such trust; and the Holder of such Note shall thereafter, as an
unsecured general creditor, look only to AirGate for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of AirGate as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of AirGate cause to be published
once, in the New York Times and The Wall Street Journal (national edition),
notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such notification
or publication, any unclaimed balance of such money then remaining shall be
repaid to AirGate.
SECTION 8.7 REINSTATEMENT.
If the Trustee or Paying Agent is unable to apply any United States dollars
or non-callable Government Securities in accordance with Section 8.2 or 8.3
hereof, as the case may be, by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then the obligations of AirGate under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
Section 8.2 or 8.3 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.2 or 8.3 hereof,
as the case may be; provided, however, that, if AirGate makes any payment of
principal of, premium, if any, or interest on any Note following the
reinstatement of its obligations, AirGate shall be subrogated to the rights of
the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent.
ARTICLE IX
AMENDMENT, SUPPLEMENT AND WAIVER
SECTION 9.1 WITHOUT CONSENT OF HOLDERS OF THE NOTES.
Notwithstanding Section 9.2 of this Indenture, without the consent of any
Holder, AirGate, the Guarantors and the Trustee (and if applicable, the
Collateral Agent) may amend or supplement this Indenture, the Notes, the
Intercreditor Agreement or any Second-Priority Security Document:
(a) to cure any ambiguity, defect or inconsistency;
(b) to provide for uncertificated Notes in addition to or in place of
certificated Notes;
(c) to provide for the assumption of AirGate's obligations to the
Holders under this Indenture, the Intercreditor Agreement or any
Second-Priority Security Document, in the case of a merger, or
consolidation or sale of all or substantially all of AirGate's
assets in accordance with this Indenture;
(d) to make any change that would provide any additional rights or
benefits to the Holders or that does not adversely affect the
legal rights hereunder of any Holder;
(e) to secure the Notes under the Indenture, to add Guarantees with
respect to the Notes, or to confirm and evidence the release,
termination or discharge of any such security or Guarantee when
such release, termination or discharge is permitted by the
Indenture and the Security Documents;
(f) to add or release Collateral as permitted under the terms of the
Indenture, the Intercreditor Agreement or the Second-Priority
Security Documents;
(g) to comply with requirements of the Commission in order to effect
or maintain the qualification of this Indenture under the TIA or
otherwise in obtaining an exemption from, or interpretation of,
or in elaborating on, the requirements of Section 314(d) of the
TIA or to enable AirGate to rely on existing interpretations of
the Commission regarding the requirements of Section 314(d) of
the TIA; or
(h) to confirm the automatic amendment or waiver of the
Second-Priority Security Documents pursuant to the terms of the
Intercreditor Agreement.
Upon the request of AirGate accompanied by a resolution of the Board of
Directors authorizing the execution of any such amendment to this Indenture, the
Guarantees, the Intercreditor Agreement, the Second-Priority Security Documents
or the Notes, and upon receipt by the Trustee of the documents described in
Sections 9.6 and 13.4 hereof, the Trustee shall join with AirGate and the
Guarantors in the execution of any amendment to this Indenture, the Guarantees,
the Intercreditor Agreement, the Second-Priority Security Documents or the Notes
authorized or permitted by the terms of this Indenture and to make any further
appropriate agreements and stipulations that may be therein contained, but the
Trustee shall not be obligated to enter into such amendment to this Indenture,
the Guarantees, the Intercreditor Agreement, the Second-Priority Security
Documents or the Notes that affects its own rights, duties or immunities under
this Indenture or otherwise.
SECTION 9.2 WITH CONSENT OF HOLDERS OF NOTES.
Except as provided below in this Section 9.2, this Indenture, the Notes,
the Guarantees, the Intercreditor Agreement or any Second-Priority Security
Document may be amended or supplemented with the consent of the Holders of at
least a majority in aggregate principal amount of the then outstanding Notes (it
being understood that the provisions of the Intercreditor Agreement and the
Second-Priority Security Documents that may by their terms be amended or
supplemented without the consent of the Holders do not require the consent of
the Holders contemplated hereby), including, without limitation, consents
obtained in connection with a purchase of, or tender offer or exchange offer,
for Notes, and any existing default or compliance with any provision of this
Indenture, the Notes, the Guarantees, the Intercreditor Agreement or any
Second-Priority Security Document may be waived with the consent of the Holders
of a majority in aggregate principal amount of the then outstanding Notes (it
being understood that the provisions of the Intercreditor Agreement and the
Second-Priority Security Documents that may by their terms be waived without the
consent of the Holders do not require the consent of the Holders contemplated
hereby), including, without limitation, consents obtained in connection with a
purchase of, or a tender offer or exchange offer for, Notes.
Upon the request of AirGate accompanied by a Board Resolution authorizing
the execution of any such amendment to this Indenture, the Guarantees, the
Intercreditor Agreement, the Second-Priority Security Documents or the Notes,
and upon receipt by the Trustee of the documents described in Sections 9.6 and
13.4 hereof, the Trustee shall join with AirGate and the Guarantors in the
execution of any amendment to this Indenture, the Guarantees, the Intercreditor
Agreement, the Second-Priority Security Documents or the Notes authorized or
permitted by the terms of this Indenture and to make any further appropriate
agreements and stipulations that may be therein contained, but the Trustee shall
not be obligated to enter into such amendment to this Indenture, the Guarantees,
the Intercreditor Agreement, the Second-Priority Security Documents or the Notes
that affects its own rights, duties or immunities under this Indenture or
otherwise.
It shall not be necessary for the consent of the Holders of Notes under
this Section 9.2 to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof. After an amendment, supplement or waiver under this Section 9.2 becomes
effective, AirGate shall mail to the Holders of each Note affected thereby a
notice briefly describing the amendment, supplement or waiver. Any failure of
AirGate to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such amended or supplemental indenture
or waiver.
Subject to Sections 6.2, 6.4 and 6.7 hereof, the Holders of a majority in
aggregate principal amount of the Notes then outstanding may amend or waive
compliance in a particular instance by AirGate with any provision of this
Indenture or the Notes. However, without the consent of each Holder adversely
affected, an amendment or waiver may not (with respect to any Note held by a
non-consenting Holder):
(a) reduce the aggregate principal amount of the then outstanding
Notes whose Holders must consent to an amendment, supplement or
waiver;
(b) reduce the principal of or change the fixed maturity of any Note
or alter the provisions with respect to the redemption of the
Notes (other than provisions relating to Sections 4.10 and 4.14
hereof);
(c) reduce the rate of or change the time for payment of interest on
any Note;
(d) waive a Default or Event of Default in the payment of principal
of or premium, if any, or interest on the Notes (except a
rescission of acceleration of the Notes by the Holders of at
least a majority in aggregate principal amount of the Notes and a
waiver of the payment default that resulted from such
acceleration);
(e) make any Note payable in money other than that stated in the
Notes;
(f) make any change in the provisions of this Indenture relating to
waivers of past Defaults or the rights of Holders to receive
payments of principal of or premium, if any, or interest on the
Notes;
(g) waive a redemption or repurchase payment with respect to any Note
(other than a payment required by Section 4.10 or 4.14 hereof);
or
(h) make any change in the amendment and waiver provisions of this
Article IX.
SECTION 9.3 COMPLIANCE WITH TRUST INDENTURE ACT.
Every amendment or supplement to this Indenture or the Notes shall be set
forth in an amended or supplemental indenture that complies with the TIA as then
in effect.
SECTION 9.4 REVOCATION AND EFFECT OF CONSENTS.
Until an amendment, supplement or waiver becomes effective, a consent to it
by a Holder of a Note is a continuing consent by the Holder and every subsequent
Holder of that Note or portion of the Note that evidences the same debt as the
consenting Holder's Note, even if notation of the consent is not made on the
Note. However, any such Holder or subsequent Holder may revoke the consent as to
its Note if the Trustee receives written notice of revocation before the date
the waiver, supplement or amendment becomes effective. When an amendment,
supplement or waiver becomes effective in accordance with its terms, it
thereafter binds every Holder.
AirGate may, but shall not be obligated to, fix a record date for
determining which Holders consent to such amendment, supplement or waiver. If
AirGate fixes a record date, the record date shall be fixed at (i) the later of
30 days prior to the first solicitation of such consent or the date of the most
recent list of Holders furnished for the Trustee prior to such solicitation
pursuant to Section 2.5 hereof or (ii) such other date as AirGate shall
designate.
SECTION 9.5 NOTATION ON OR EXCHANGE OF NOTES.
The Trustee may place an appropriate notation about an amendment,
supplement or waiver on any Note thereafter authenticated. AirGate in exchange
for all Notes may issue and the Trustee shall authenticate new Notes that
reflect the amendment, supplement or waiver.
Failure to make the appropriate notation or issue a new Note shall not
affect the validity and effect of such amendment, supplement or waiver.
SECTION 9.6 TRUSTEE TO SIGN AMENDMENTS, ETC.
The Trustee shall sign any amended or supplemental indenture authorized
pursuant to this Article IX if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. AirGate and
the Guarantors may not sign an amendment or supplemental indenture until their
respective Boards of Directors approve it. In signing or refusing to sign any
amendment or supplemental indenture the Trustee shall be entitled to receive and
(subject to Section 7.1 hereof) shall be fully protected in relying upon an
Officers' Certificate and an Opinion of Counsel stating that the execution of
such amendment or supplemental indenture is authorized or permitted by this
Indenture, that all conditions precedent thereto have been met or waived, that
such amendment or supplemental indenture is not inconsistent herewith, and that
it will be valid and binding upon AirGate in accordance with its terms.
ARTICLE X
SECOND-PRIORITY SECURITY DOCUMENTS
SECTION 10.1 SECOND-PRIORITY SECURITY DOCUMENTS.
The due and punctual payment of the principal and premium, if any, of and
interest on the Notes when and as the same shall be due and payable, whether on
an interest payment date, at Stated Maturity, by acceleration, repurchase,
redemption, special redemption or otherwise, and interest on the overdue
principal of and interest on the Notes and performance of all other obligations
of AirGate and the Guarantors to the Holders or the Trustee under this
Indenture, the Second-Priority Security Documents or the Notes, according to the
terms hereunder or thereunder, shall be secured as provided in the
Second-Priority Security Documents.
Each Holder, by its acceptance of the Notes, consents and agrees to the
terms of the Intercreditor Agreement and the Second-Priority Security Documents
(including, without limitation, the provisions providing for foreclosure and
release of Collateral pursuant to the terms set forth in the Intercreditor
Agreement) as the same may be in effect or may be amended from time to time in
accordance with their terms and authorizes and directs the Collateral Agent to
enter into such Second-Priority Security Documents and Intercreditor Agreement
and to perform its obligations and exercise its rights thereunder in accordance
therewith.
AirGate shall deliver to the Trustee copies of all documents delivered to
the Collateral Agent pursuant to the Intercreditor Agreement and the
Second-Priority Security Documents, and shall do or cause to be done all such
acts and things as may be necessary or proper, or as may be required by the
provisions of the Intercreditor Agreement and the Second-Priority Security
Documents, to assure and confirm to the Trustee and the Collateral Agent the
security interest in the Collateral contemplated hereby, by the Intercreditor
Agreement, the Second-Priority Security Documents or any part thereof, as from
time to time constituted, so as to render the same available for the security
and benefit of this Indenture and of the Notes secured thereby, according to the
intent and purposes herein and therein expressed.
AirGate shall take any and all actions reasonably required to cause the
Second-Priority Security Documents to create and maintain, as security for the
obligations of AirGate hereunder, a valid and enforceable perfected lien on and
security interest in all the Collateral, in favor of the Collateral Agent for
the benefit of the Holders and other Persons for whose benefit the Collateral
Agent or Trustee, as applicable, acts pursuant to the Second-Priority Security
Documents, subject to the provisions of the Intercreditor Agreement.
SECTION 10.2 RECORDING AND OPINIONS.
(a) As required by the provisions of Section 314(b) of the TIA,
AirGate and, if applicable, the Guarantors shall take or cause to
be taken all action required to perfect, maintain, preserve and
protect the Lien on and security interest in the Collateral
granted by the Second-Priority Security Documents (subject only
to Permitted Liens), including without limitation, the filing of
financing statements, continuation statements, mortgages and any
instruments of further assurance, in such manner and in such
places as may be required by law fully to preserve and protect
the rights of the Holders and the Trustee under this Indenture
and the Second-Priority Security Documents to all property
comprising the Collateral. AirGate and the Guarantors shall from
time to time promptly pay all financing statement, continuation
statement and mortgage recording, registration and/or filing
fees, charges and taxes relating to this Indenture and the
Second-Priority Security Documents, any amendments thereto and
any other instruments of further assurance required hereunder or
pursuant to the Second-Priority Security Documents. The Trustee
shall have no obligation to, nor shall it be responsible for any
failure to, so register, file or record.
(b) As required by the provisions of Section 314(b) of the TIA,
AirGate shall furnish to the Trustee within three months after
each anniversary of the Closing Date, an Opinion of Counsel,
dated as of such date, stating either that (i) in the opinion of
such counsel, all action has been taken (and stating what
actions, if any, are necessary to be taken within the next
calendar year) with respect to the recording, registering,
filing, re-recording, re-registering and refiling of this
Indenture and the Second-Priority Security Documents, financing
statements, continuation statements or other instruments of
further assurance as is necessary to maintain the Liens intended
to be created by the Second-Priority Security Documents and
reciting the details of such action or (ii) in the opinion of
such counsel, no such action is necessary to maintain such Liens,
which Opinion of Counsel also shall state what actions it then
believes are necessary to maintain the effectiveness of such
Liens during the next two years.
SECTION 10.3 POSSESSION, USE AND RELEASE OF COLLATERAL.
(a) Subject to the rights of the collateral agent under the
First-Priority Security Documents in the case of an event of
default thereunder and subject to the rights of the Collateral
Agent under the Second-Priority Security Documents in the case of
an Event of Default, and subject to the terms and conditions in
any agreements governing Senior Debt, this Indenture and the
Security Documents, AirGate and the Guarantors will have the
right to remain in possession and retain control of the
Collateral (other than any cash, securities, obligations and cash
equivalents constituting part of the Collateral and deposited
with the collateral agent for the lenders under any agreements
governing Senior Debt or the Collateral Agent in accordance with
the provisions of the Security Documents and other than as set
forth in the Security Documents), to freely operate the
Collateral and to collect, invest and dispose of any income
therefrom.
(b) Collateral may (and, as applicable, shall) be released or
substituted only in accordance with the terms of the
Intercreditor Agreement and the Second-Priority Security
Documents or this Section 10.3. Upon any disposition of
Collateral pursuant to and in compliance with Sections 4.10, 10.4
and 10.5, or pursuant to a transaction that does not constitute
an "Asset Sale" or otherwise violate any provision of this
Indenture, such Collateral shall be sold free and clear of any
lien under the Second-Priority Security Documents and
automatically released from the provisions thereof.
(c) The release of any Collateral from the terms of this Indenture
and the Second-Priority Security Documents shall not be deemed to
impair the security under this Indenture in contravention of the
provisions hereof if and to the extent the Collateral is released
pursuant to the terms of the Intercreditor Agreement, the
Second-Priority Security Documents or this Section 10.3.
(d) Any request by AirGate for the Trustee or the Collateral Agent to
execute a release of any Collateral from the terms of this
Indenture shall be made pursuant to the terms of Section 10.5 of
this Indenture.
SECTION 10.4 CERTIFICATES OF THE COMPANY.
(a) To the extent applicable, AirGate shall comply (or cause
compliance) with Section 313(b) of the TIA, relating to reports,
and Section 314(d) of the TIA, relating to the release of
property or securities from the lien and security interest of the
Second-Priority Security Documents and relating to the
substitution therefor of any property or securities to be
subjected to the lien and security interest of the
Second-Priority Security Documents. Any certificate or opinion
required by Section 314(d) of the TIA may be made by an Officer
of AirGate except in cases where Section 314(d) of the TIA
requires that such certificate or opinion be made by an
independent Person, which Person shall be an independent
engineer, appraiser or other expert selected or approved by the
Collateral Agent in the exercise of reasonable care.
(b) With respect to AirGate's obligations under Section 10.4(a)
relating to delivery of certificates or opinions required by
Section 314(d) of the TIA, AirGate and each Subsidiary, as the
case may be, may:
(1) abandon, sell, assign, transfer, lease, license or otherwise
dispose of in the ordinary course of business any personal
property the use of which is no longer necessary or
desirable in the proper conduct of the business of AirGate
and is not material to the conduct of the business of
AirGate and its Subsidiaries taken as a whole;
(2) grant in the ordinary course of business, rights-of-way and
easements over or in respect of any of AirGate's or such
Subsidiary's real property, provided that such grant will
not, in the reasonable opinion of the Board of Directors,
impair the usefulness of such property in the conduct of
AirGate's business;
(3) sell, transfer or otherwise dispose of inventory in the
ordinary course of business;
(4) sell, collect, liquidate, factor or otherwise dispose of
accounts receivable in the ordinary course of business;
(5) make cash payments (including for the scheduled repayment of
Indebtedness) from cash that is at any time part of the
Collateral in the ordinary course of business that are not
otherwise prohibited by this Indenture, the Second-Priority
Security Documents and the Intercreditor Agreement; and
(6) engage in any other release of any Collateral as to which
release any Commission regulation or interpretation
(including any no-action letter issued by the Staff of the
Commission or exemption order issued by the Commission or
pursuant to its delegated authority, whether issued to
AirGate or any other Person) provides that delivery of such
opinions or certificates need not be made;
in each case, without the delivery of any such opinions or certificates upon any
such release; provided that AirGate shall deliver to the Trustee, within 15 days
after each of the six-month periods ended January 1 and July 1 in each year an
Officers' Certificate to the effect that all releases of Collateral as to which
such opinions or certificates were not delivered in reliance upon this Section
10.4(b) by AirGate or any Subsidiary, as the case may be, during the preceding
six-month period were in the ordinary course of AirGate's or such Subsidiary's
business and otherwise in accordance with Section 10.4(b)(1) through Section
10.4(b)(6) and that all proceeds therefrom were used by AirGate or such
Subsidiary as permitted herein.
(c) The fair value of Collateral released from the Liens of the
Second-Priority Security Documents as to which opinions or
certificates are not delivered prior to the applicable date of
determination in reliance upon this Section 10.4(b) shall not be
considered in determining whether the aggregate fair value of
Collateral released from the Liens of the Second-Priority
Security Documents in any calendar year exceeds the 10% threshold
specified in Section 314(d)(l) of the TIA; provided that
AirGate's right to rely on this sentence at any time is
conditioned upon AirGate having furnished to the Trustee the
Officers' Certificates described in Section 10.4(b) that were
required to be furnished to the Trustee at or prior to such time.
(d) It is expressly understood that Section 10.4(b) and Section
10.4(c) relate only to AirGate's and each Subsidiary's
obligations under the TIA and shall not affect AirGate's and its
Subsidiaries' rights or abilities to release Collateral.
SECTION 10.5 EXECUTION OF RELEASE BY TRUSTEE.
In the event that AirGate or any Guarantor wish the Trustee or the
Collateral Agent to execute a release of any Collateral from the lien of the
Second-Priority Security Documents in accordance with this Indenture, the
Intercreditor Agreement and the Second-Priority Security Documents, it shall
furnish the Trustee and the Collateral Agent an Officers' Certificate complying
with Section 13.4(a) certifying that all conditions precedent have been met and
that no consent of the Holders is required together with any documents required
by Section 4.10, Section 10.4 or any other provision of this Indenture and
deliver as required by this Indenture, an Opinion of Counsel to the effect that
such accompanying documents constitute all the documents required by this
Indenture, by Section 314(d) of the TIA or that no such documents are so
required. If such release is given pursuant to the automatic release provisions
of the Intercreditor Agreement, the Officers' Certificate shall also be
accompanied by evidence that the Collateral has been released under the
First-Priority Security Documents. Upon the receipt of such documents the
Trustee shall execute, or shall cause the Collateral Agent to execute, a release
of the Collateral. The Trustee, however, shall have no duty to confirm the
legality or validity of such documents, its sole duty being to certify that it
has received such documentation which on its face conforms to Section 314(d) of
the TIA.
SECTION 10.6 AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE
TRUSTEE UNDER THE SECURITY DOCUMENTS.
Subject to the provisions of the Intercreditor Agreement and the
Second-Priority Security Documents hereof, the Trustee may, in its sole
discretion and without the consent of the Holders (and shall, at the direction
of Holders holding the requisite principal amount of Notes), direct, on behalf
of the Holders, the Collateral Agent to take all actions it deems necessary or
appropriate in order to (a) enforce the terms of the Intercreditor Agreement and
the Second-Priority Security Documents and (b) collect and receive any and all
amounts payable in respect of the obligations of AirGate hereunder. The Trustee
shall have the power to institute and maintain such suits and proceedings as it
may deem expedient to prevent any impairment of the Collateral by any acts that
may be unlawful or in violation of the Intercreditor Agreement and the
Second-Priority Security Documents or this Indenture, and such suits and
proceedings as the Trustee may deem expedient to preserve or protect its
interests and the interests of the Holders in the Collateral (including the
power to institute and maintain suits or proceedings to restrain the enforcement
of or compliance with any legislative or other governmental enactment, rule or
order that may be unconstitutional or otherwise invalid if the enforcement of,
or compliance with, such enactment, rule or order would impair the security
interest hereunder or be prejudicial to the interests of the Holders or the
Trustee).
SECTION 10.7 AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE
UNDER THE SECOND-PRIORITY SECURITY DOCUMENTS.
The Trustee is authorized to receive funds for the benefit of the Holders
distributed under the Second-Priority Security Documents or the Intercreditor
Agreement, and to make further distributions of such funds to the Holders
according to the provisions of this Indenture, the Intercreditor Agreement and
the Second-Priority Security Documents.
SECTION 10.8 COLLATERAL AGENT.
The Trustee shall act as Collateral Agent pursuant to the Intercreditor
Agreement and the Second-Priority Security Documents and shall be authorized to
appoint co-Collateral Agents as necessary in its sole discretion. Except as
otherwise explicitly provided herein or in the Intercreditor Agreement or the
Second-Priority Security Documents, neither the Collateral Agent nor any of its
respective officers, directors, employees or agents shall be liable for any
failure to demand, collect or realize upon any of the Collateral or for any
delay in doing so or shall be under any obligation to sell or otherwise dispose
of any Collateral upon the request of any other Person or to take any other
action whatsoever with regard to the Collateral or any part thereof. The
Collateral Agent shall be accountable only for amounts that it actually receives
as a result of the exercise of such powers, and neither the Collateral Agent nor
any of its officers, directors, employees or agents shall be responsible for any
act or failure to act hereunder, except for its own willful misconduct, gross
negligence or bad faith.
SECTION 10.9 SECURITY DOCUMENTS.
(a) Each of the other parties hereto and, by their acceptance of the
Notes, the Holders hereby authorize and instruct the Trustee, as
Collateral Agent, to (i) enter into the Second-Priority Security
Documents, (ii) bind such parties and the Holders on the terms
set forth in the Second-Priority Security Documents and (iii)
perform and observe its obligations under the Second-Priority
Security Documents.
(b) Each of the other parties hereto and, by their acceptance of the
Notes, the Holders hereby authorize and instruct the Trustee to
(i) enter into the Intercreditor Agreement, (ii) bind such
parties and the Holders on the terms set forth in the
Intercreditor Agreement, and (iii) perform and observe its
obligations under the Intercreditor Agreement.
SECTION 10.10 AUTHORIZATION OF OTHER INTERCREDITOR AGREEMENTS.
In the event that AirGate and the Guarantors wish the Trustee to enter into
an intercreditor agreement with respect to Liens permitted pursuant to clause
(a) of the definition of Permitted Liens for which the Holders are entitled to a
junior Lien, AirGate and the Guarantors shall furnish the Trustee and the
Collateral Agent an Officers' Certificate complying with Section 13.4(a)
certifying that all conditions precedent have been met and that no consent of
the Holders is required, together with any documents required by any provision
of this Indenture and deliver an Opinion of Counsel to the effect that such
intercreditor agreement complies with the requirements of the applicable
provision of the definition of Permitted Liens. Upon the receipt of such
documents, the Trustee is authorized and shall execute, or shall cause the
Collateral Agent to execute, such intercreditor agreement. The Trustee, however,
shall have no duty to confirm the legality or validity of such documents, its
sole duty being to certify that it has received such documentation which on its
face conforms to Section 314(d) of the TIA.
ARTICLE XI
GUARANTEES
SECTION 11.1 GUARANTEES.
(a) Each Guarantor hereby jointly and severally, fully,
unconditionally and irrevocably guarantees the Notes and
obligations of AirGate hereunder and thereunder, and guarantees
to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee on behalf of such Holder, that: (a)
the principal of and premium, if any and interest on the Notes
shall be paid in full when due, whether at Stated Maturity, by
acceleration, call for redemption or otherwise (including,
without limitation, the amount that would become due but for the
operation of the automatic stay under Section 362(a) of the
Federal Bankruptcy Code), together with interest on the overdue
principal, if any, and interest on any overdue interest, to the
extent lawful, and all other obligations of AirGate to the
Holders or the Trustee hereunder or thereunder shall be paid in
full or performed, all in accordance with the terms hereof and
thereof; and (b) in case of any extension of time of payment or
renewal of any Notes or of any such other obligations, the same
shall be 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. Each of the Guarantees
shall be a guarantee of payment and not of collection.
(b) Each Guarantor hereby agrees that its obligations hereunder shall
be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder
of the Notes with respect to any provisions hereof or thereof,
the recovery of any judgment against the Company, any action to
enforce the same or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a
Guarantor.
(c) Each Guarantor hereby waives the benefits of diligence,
presentment, demand for 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 or any other
Person, protest, notice and all demands whatsoever and covenants
that the Guarantee of such Guarantor shall not be discharged as
to any Note except by complete performance of the obligations
contained in such Note and such Guarantee or as provided for in
this Indenture. Each of the Guarantors hereby agrees that, in the
event of a default in payment of principal or premium, if any or
interest on such Note, whether at its Stated Maturity, by
acceleration, call for redemption, purchase or otherwise, legal
proceedings may be instituted by the Trustee on behalf of, or by,
the Holder of such Note, subject to the terms and conditions set
forth in this Indenture, directly against each of the Guarantors
to enforce such Guarantor's Guarantee without first proceeding
against the Company or any other Guarantor. Each Guarantor agrees
that if, after the occurrence and during the continuance of an
Event of Default, the Trustee or any of the Holders are prevented
by applicable law from exercising their respective rights to
accelerate the maturity of the Notes, to collect interest on the
Notes, or to enforce or exercise any other right or remedy with
respect to the Notes, such Guarantor shall pay to the Trustee for
the account of the Holders, upon demand therefor, the amount that
would otherwise have been due and payable had such rights and
remedies been permitted to be exercised by the Trustee or any of
the Holders.
(d) If any Holder or the Trustee is required by any court or
otherwise to return to AirGate or any Guarantor, or any
custodian, trustee, liquidator or other similar official acting
in relation to either AirGate or any Guarantor, any amount paid
by any of them to the Trustee or such Holder, the Guarantee of
each of the Guarantors, to the extent theretofore discharged,
shall be reinstated in full force and effect. This paragraph (d)
shall remain effective notwithstanding any contrary action which
may be taken by the Trustee or any Holder in reliance upon such
amount required to be returned. This paragraph (d) shall survive
the termination of this Indenture except as otherwise provided in
the Intercreditor Agreement.
(e) 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 VI hereof for the purposes of
the Guarantee of such Guarantor, 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 VI hereof, such obligations (whether or not due and
payable) shall forthwith become due and payable by each Guarantor
for the purpose of the Guarantee of such Guarantor.
SECTION 11.2 EXECUTION AND DELIVERY OF GUARANTEE.
To evidence its Guarantee set forth in Section 11.1, each Guarantor agrees
that a notation of such Guarantee substantially in the form attached hereto as
Exhibit B shall be endorsed on each Note authenticated and delivered by the
Trustee. Such notation of Guarantee shall be signed on behalf of such Guarantor
by an officer of such Guarantor (or, if an officer is not available, by a board
member or director) on behalf of such Guarantor by manual or facsimile
signature. In case the officer, board member or director of such Guarantor who
shall have signed such notation of Guarantee shall cease to be such officer,
board member or director before the Note on which such Guarantee is endorsed
shall have been authenticated and delivered by the Trustee, such Note
nevertheless may be authenticated and delivered as though the Person who signed
such notation of Guarantee had not ceased to be such officer, board member or
director.
Each Guarantor agrees that its Guarantee set forth in Section 11.1 shall
remain in full force and effect and apply to all the Notes notwithstanding any
failure to endorse on each Note a notation of such Guarantee. The delivery of
any Note by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of any Guarantee set forth in this Indenture on behalf
of the Guarantors.
SECTION 11.3 SEVERABILITY.
In case any provision of any 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 11.4 SENIORITY OF GUARANTEES.
The obligations of each Guarantor under its Guarantee pursuant to this
Article XI shall be junior and subordinated to any Senior Debt of such Guarantor
on the same basis as the Notes are junior and subordinated to Senior Debt of
AirGate. For the purposes of the foregoing sentence, the Trustee and the Holders
shall have the right to receive and/or retain payments by any of the Guarantors
only at such times as they may receive and/or retain payments in respect of the
Notes pursuant to this Indenture, including Article XI hereof. The obligations
of each Guarantor under its Guarantee pursuant to this Article XI shall be equal
in right of payment to all existing and future senior subordinated Indebtedness
of each Guarantor and senior in right of payment to all existing and future
subordinated Indebtedness of each Guarantor.
SECTION 11.5 LIMITATION OF GUARANTORS' LIABILITY.
Each Guarantor and by its acceptance hereof each Holder confirms that it is
the intention of all such parties that the Guarantee of such Guarantor not
constitute a fraudulent transfer or conveyance for purposes of the Federal
Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law or the provisions of its local
law relating to fraudulent transfer or conveyance. To effectuate the foregoing
intention, the Trustee, the Holders and Guarantors hereby irrevocably agree that
the obligations of such Guarantor under its Guarantee shall be limited to the
maximum amount that will not, after giving effect to all other contingent and
fixed liabilities of such Guarantor and after giving effect to any collections
from, rights to receive contribution from or payments made by or on behalf of
any other Guarantor in respect of the obligations of such other Guarantor under
its Guarantee, result in the obligations of such Guarantor under its Guarantee
constituting a fraudulent transfer or conveyance.
SECTION 11.6 GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS.
Except as otherwise provided in Section 11.7 hereof, a Guarantor may not
sell or otherwise dispose of all or substantially all of its assets, or
consolidate with or merge with or into (whether or not such Guarantor is the
surviving Person) another Person unless:
(1) immediately after giving effect to such transactions, no Default
or Event of Default exists; and
(2) either:
(A) the Person acquiring the property in any such sale or
disposition or the Person formed by or surviving any such
consolidation or merger assumes all the obligations of that
Guarantor under this Indenture pursuant to a supplemental
indenture and appropriate collateral documents satisfactory
to the Trustee and becomes a party to the Second-Priority
Security Documents; or
(B) the Net Proceeds of any such sale or other disposition of a
Guarantor are applied in accordance with the provisions of
Section 4.10 hereof.
In case of any such consolidation, merger, sale or conveyance and upon the
assumption by the successor Person, by supplemental indenture, executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the
Guarantee and the due and punctual performance of all of the covenants and
conditions of this Indenture to be performed by the Guarantor, such successor
Person shall succeed to and be substituted for the Guarantor with the same
effect as if it had been named herein as a Guarantor. All the Guarantees so
issued shall in all respects have the same legal rank and benefit under this
Indenture as the Guarantees theretofore and thereafter issued in accordance with
the terms of this Indenture as though all such Guarantees had been issued at the
date of the execution hereof.
Except as set forth in Articles IV and V hereof, and notwithstanding
clauses (1) and (2) above, nothing contained in this Indenture or in any of the
Notes shall prevent any consolidation or merger of a Guarantor with or into
AirGate or another Guarantor, or shall prevent any sale or conveyance of the
property of a Guarantor as an entirety or substantially as an entirety to
AirGate or another Guarantor.
SECTION 11.7 RELEASES FOLLOWING SALE OF ASSETS.
Any Guarantor shall be released and relieved of any obligations under this
Guarantee, (1) in connection with any sale or other disposition by AirGate or
any Subsidiary of AirGate of all or substantially all of the assets of that
Guarantor (including by way of merger or consolidation) to a Person that is not
(either before or after giving effect to such transaction) a Subsidiary, if
AirGate or the Guarantor applies the Net Proceeds of that sale or other
disposition in accordance with the provisions of Section 4.10 hereof; or (2) in
connection with any sale of all of the Capital Stock of a Guarantor by AirGate
or any Subsidiary of AirGate to a Person that is not (either before or after
giving effect to such transaction) a Subsidiary, if AirGate applies the Net
Proceeds of that sale in accordance with the provisions of Section 4.10 thereof.
Upon delivery to the Trustee of an Officers' Certificate and an Opinion of
Counsel to the effect that such sale or other disposition was made by AirGate in
accordance with the provisions of this Indenture, including without limitation
Section 4.10 hereof, the Trustee shall execute any documents reasonably required
in order to evidence the release of any Guarantor from its obligations under its
Guarantee.
Any Guarantor not released from its obligations under this Guarantee shall
remain liable for the full amount of principal of and interest on the Notes and
for the other obligations of any Guarantor under this Indenture as provided in
this Article XI.
SECTION 11.8 RELEASE OF A GUARANTOR.
Any Guarantor that is designated by the Board of Directors of the Company
as an Unrestricted Subsidiary in accordance with the terms of this Indenture
shall, at such time, be deemed automatically and unconditionally released and
discharged of its obligations under its Guarantee without any further action on
the part of the Trustee or any Holder. The Trustee shall deliver an appropriate
instrument evidencing such release upon receipt of the Company's request for
such release accompanied by an Officers' Certificate certifying as to the
compliance with this Section 11.8. Any Guarantor not so released shall remain
liable for the full amount of principal of and interest on the Notes as provided
in its Guarantee.
SECTION 11.9 BENEFITS ACKNOWLEDGED.
Each Guarantor acknowledges that it will receive direct and indirect
benefits from the financing arrangements contemplated by this Indenture and that
its guarantee and waivers pursuant to its Guarantee are knowingly made in
contemplation of such benefits.
SECTION 11.10 FUTURE GUARANTORS.
Each future Restricted Subsidiary shall become a Guarantor. Within ten (10)
days of becoming a Restricted Subsidiary, such Subsidiary shall execute and
deliver to the Trustee a supplemental indenture and other agreements making such
Subsidiary a party to this Indenture and the Second-Priority Security Documents.
ARTICLE XII
SUBORDINATION
SECTION 12.1 AGREEMENT TO SUBORDINATE.
AirGate and each Guarantor agree, and each Holder by accepting a Note
agrees, that the Indebtedness evidenced by each Note and each Guarantee is
subordinated in right of payment, to the extent and in the manner provided
herein, to the prior payment in full of all Senior Debt in cash or Cash
Equivalents (whether outstanding on the date hereof or hereafter created,
incurred, assumed or guaranteed), and that the subordination is for the benefit
of the holders of Senior Debt.
SECTION 12.2 LIQUIDATION; DISSOLUTION; BANKRUPTCY.
Upon (a) any distribution to creditors of AirGate or any Guarantor in a
liquidation or dissolution of AirGate or any Guarantor or in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to
either AirGate or its property or any Guarantor or its property or (b) an
assignment for the benefit of creditors or any marshalling of AirGate's or any
Guarantor's assets and liabilities:
(i) the holders of Senior Debt shall be entitled to receive
payment in full of all Obligations due in cash or Cash
Equivalents in respect of such Senior Debt (including
interest after the commencement of any such proceeding,
whether or not allowed, at the rate specified in the
applicable Senior Debt) before Holders shall be entitled to
receive any payment on account of any Obligations on the
Notes (except that Holders may receive and retain Permitted
Junior Securities and payments made from the trust described
in Section 8.4 hereof); and
(ii) until all Obligations with respect to Senior Debt (as
provided in clause (i) above) are paid in full in cash or
Cash Equivalents, any distribution to which Holders would be
entitled but for this Article XII shall be made to holders
of Senior Debt (except that Holders may receive and retain
Permitted Junior Securities and payments made from the trust
described in Section 8.4 hereof), as their interests may
appear to the extent necessary to make payment in full on
all Obligations with respect to Senior Debt remaining
unpaid, after giving effect to all concurrent payments or
distributions to the holders of Senior Debt.
The consolidation of AirGate or any Guarantor with, or the merger of
AirGate or any Guarantor into, another Person or the liquidation or dissolution
of AirGate or any Guarantor following the conveyance, transfer or lease of its
properties and assets substantially as an entirety to another Person upon the
terms and conditions set forth in Article V shall not be deemed a dissolution,
winding up, liquidation, reorganization, assignment for the benefit of creditors
or marshaling of assets and liabilities of such Guarantor for the purposes of
this Section if the Person formed by such consolidation or into which such
Guarantor is merged or the Person which acquires by conveyance, transfer or
lease such properties and assets substantially as an entirety, as the case may
be, shall, as a part of such consolidation, merger, conveyance, transfer or
lease, comply with the conditions set forth in Article V and, in the case of
AirGate, such other Person shall assume AirGate's obligations hereunder in
accordance with Article V hereof.
SECTION 12.3 DEFAULT ON DESIGNATED SENIOR DEBT.
Neither AirGate nor any Guarantor shall (1) make any payment or
distribution to the Trustee or any Holder upon or in respect of Obligations with
respect to the Notes or (2) acquire from the Trustee or any Holder any Notes for
cash or property (in each case other than payments in Permitted Junior
Securities and payments made from the trust previously established as described
in Section 8.4 hereof) if:
(a) a default in the payment of any principal, premium, if any,
interest or other amount with respect to any Designated Senior
Debt occurs and is continuing beyond any applicable grace period
in the agreement, indenture or other document governing such
Designated Senior Debt (whether upon maturity, as a result of
acceleration or otherwise); or
(b) any other default occurs and is continuing with respect to any
Designated Senior Debt that permits holders of such Designated
Senior Debt to accelerate its maturity, and AirGate and the
Trustee receive written notice of such default (a "Payment
Blockage Notice") from a majority of the holders, or from the
trustee, agent or other representative (the "Representative") of
the holders, of any such Designated Senior Debt. If the Trustee
receives any such notice, a subsequent notice received within 360
days thereafter shall not be effective for purposes of this
Section. No nonpayment default that existed or was continuing on
the date of delivery of any Payment Blockage Notice to the
Trustee shall be, or be made, the basis for a subsequent Payment
Blockage Notice unless such default shall have been cured or
waived for a period of not less than 90 days.
Notwithstanding anything herein to the contrary, AirGate and the Guarantors
may and shall resume payments on and distributions in respect of the Obligations
on the Notes upon the earlier of:
(i) in the case of a default referred to in clause (a) of this
Section 12.3, the date upon which the default is cured or
waived or ceases to exist, or
(ii) in the case of a default referred to in clause (b) of this
Section 12.3, 179 days after the date on which the
applicable Payment Blockage Notice is received, unless the
maturity of any Designated Senior Debt has been accelerated.
SECTION 12.4 PAYMENT PERMITTED IF NO DEFAULT.
Nothing contained in this Article XII or elsewhere in this Indenture, in
any of the Notes or in any Guarantee shall prevent AirGate or any Guarantors, as
applicable, at any time except during the pendency of any case, proceedings,
dissolution, liquidation or other winding up, assignment for the benefit of
creditors or other marshaling of assets and liabilities of AirGate or any
Guarantor referred to in Section 12.2 or under the conditions described in
Section 12.3, from making payments at any time of principal of and premium or
interest on the Notes or under a Guarantee, as applicable.
SECTION 12.5 NOTICE OF ACCELERATION OF SECURITIES.
If payment of the Notes is accelerated because of an Event of Default,
AirGate shall promptly notify holders of Senior Debt of such acceleration.
SECTION 12.6 WHEN DISTRIBUTION MUST BE PAID OVER.
In the event that the Trustee or any Holder receives any payments of any
Obligations with respect to the Notes at a time when an officer of the Trustee
has actual knowledge that such payment is prohibited by Section 12.3 hereof,
such payment shall be held by the Trustee or such Holder in trust for the
benefit of, and shall be paid forthwith over and delivered upon written request
to, the Representative of the holders of Senior Debt of AirGate or any Guarantor
under the indenture or other agreement (if any) pursuant to which Senior Debt
may have been issued, as its interest may appear, for application to the payment
of all Obligations with respect to Senior Debt remaining unpaid to the extent
necessary to pay such Obligations in full in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for the holders of
Senior Debt.
If a distribution is made to the Trustee or any Holder that because of this
Article XII should not have been made to it, the Trustee or such Holder who
receives the distribution shall hold it in trust for the benefit of, and upon
written request pay it over to, the Representative of the holders of Senior Debt
under the indenture or other agreement (if any) pursuant to which Senior Debt
may have been issued, as its interest may appear, for application to the payment
of all Obligations with respect to Senior Debt remaining unpaid to the extent
necessary to pay such Obligations in full in accordance with their terms, after
giving effect to any concurrent payment or distribution to or for the holders of
Senior Debt.
With respect to the holders of Senior Debt, the Trustee undertakes to
perform only such obligations on the part of the Trustee as are specifically set
forth in this Article XII, and no implied covenants or obligations with respect
to the holders of Senior Debt shall be read into this Indenture against the
Trustee. The Trustee shall not be deemed to owe any fiduciary duty to the
holders of Senior Debt, and shall not be liable to any such holders if the
Trustee shall pay over or distribute to or on behalf of Holders or AirGate or
any other person money or assets to which any holders of Senior Debt shall be
entitled by virtue of this Article XII except if such payment is made as a
result of the willful misconduct or gross negligence of the Trustee.
SECTION 12.7 NOTICE BY AIRGATE.
AirGate shall promptly notify the Trustee and the Paying Agent of any facts
known to AirGate that would cause a payment of any Obligations with respect to
the Notes to violate this Article XII, but failure to give such notice shall not
affect the subordination of the Notes to Senior Debt as provided in this Article
XII.
SECTION 12.8 SUBROGATION.
After all Senior Debt is paid in full and until the Notes are paid in full,
Holders shall be subrogated (equally and ratably with all other Indebtedness
pari passu with the Notes) to the rights of holders of Senior Debt to receive
payments or distributions applicable to Senior Debt to the extent that payments
or distributions otherwise payable to the Holders have been applied to the
payment of Senior Debt. For the purposes of such subrogation, no such payments
or distributions to the holders of the Senior Debt by or on behalf of AirGate to
which the Holders or the Trustee would otherwise be entitled except for the
provisions of this Article XII, and no payments over pursuant to the provisions
of this Article XII to the holders of Senior Debt by the Holders or the Trustee,
or by or on behalf of the Holders by virtue of this Article XII which otherwise
would have been made to the Holders shall, as between AirGate and the Holders of
the Notes, be deemed to be a payment by AirGate to or on account of the Senior
Debt, it being understood that the provisions of this Article XII are and are
intended solely for the purpose of defining the relative rights of the Holders
on the one hand, and the holders of the Senior Debt, on the other hand.
SECTION 12.9 RELATIVE RIGHTS.
This Article XII defines the relative rights of Holders and holders of
Senior Debt. Nothing in this Indenture shall:
(a) impair, as between AirGate and the Guarantors and Holders, the
obligation of AirGate or any Guarantor, which are absolute and
unconditional, to pay principal of and interest on the Notes and
any other amounts due under the Indenture or the Notes in
accordance with their terms;
(b) affect the relative rights of Holders and creditors of AirGate or
any Guarantor other than their rights in relation to holders of
Senior Debt; or
(c) prevent the Trustee or any Holder from exercising its available
remedies upon a Default or Event of Default, subject to the
rights of holders and owners of Senior Debt to receive
distributions and payments otherwise payable to Holders pursuant
to this Article XII.
If AirGate fails because of this Article XII to pay principal of or
interest on a Note on the due date, such failure shall still constitute a
Default or Event of Default.
SECTION 12.10 SUBORDINATION MAY NOT BE IMPAIRED BY AIRGATE.
No right of any holder of Senior Debt to enforce the subordination of the
Indebtedness evidenced by the Notes shall be impaired by any act or failure to
act by AirGate or any Holder or by the failure of AirGate, the Trustee or any
Holder to comply with this Indenture.
SECTION 12.11 DISTRIBUTION OR NOTICE TO REPRESENTATIVE.
Whenever a distribution is to be made or a notice given to holders of
Senior Debt, the distribution may be made and the notice given to their
Representative.
Upon any payment or distribution of assets of either AirGate or any
Guarantor referred to in this Article XII, the Trustee and the Holders shall be
entitled to rely upon any order or decree made by any court of competent
jurisdiction or upon any certificate of such Representative of the Senior Debt
or of the liquidating trustee or agent or other person making any distribution
to the Trustee or to the Holders for the purpose of ascertaining the persons
entitled to participate in such distribution, the holders of the Senior Debt and
other Indebtedness of AirGate, the amount thereof or payable thereon, the amount
or amounts paid or distributed thereon and all other facts pertinent thereto or
to this Article XII.
SECTION 12.12 RIGHTS OF TRUSTEE AND PAYING AGENT.
AirGate shall give prompt written notice to the Trustee of any fact known
to AirGate which would prohibit the making of any payment to or by the Trustee
in respect of the Notes pursuant to the provisions of this Article XII.
Regardless of anything to the contrary contained in this Article XII or
elsewhere in this Indenture, the Trustee shall not be charged with knowledge of
the existence of any default or event of default with respect to any Senior Debt
or of any other facts which would prohibit the making of any payment to or by
the Trustee unless and until a Responsible Officer of the Trustee shall have
received notice in writing from AirGate, or from a holder of Senior Debt or a
Representative therefor, together with proof satisfactory to the Trustee of such
holding of Senior Debt or of the authority of such Representative, and, prior to
the receipt of any such written notice, the Trustee shall be entitled to assume
(in the absence of actual knowledge to the contrary) that no such facts exist.
In the event that the Trustee determines in good faith that any evidence is
required with respect to the right of any Person as a holder of Senior Debt to
participate in any payment or distribution pursuant to this Article XII, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amounts of Senior Debt held by such
Person, the extent to which such Person is entitled to participate in such
payment or distribution and any other facts pertinent to the rights of such
Person under this Article XII and if such evidence is not furnished the Trustee
may defer any payment to such Person pending judicial determination as to the
right of such Person to receive such payment.
The Trustee in its individual or any other capacity may hold Senior Debt
with the same rights it would have if it were not Trustee. Any Agent may do the
same with like rights.
SECTION 12.13 AUTHORIZATION TO EFFECT SUBORDINATION.
Each Holder of Notes by such Holder's acceptance thereof authorizes and
directs the Trustee on such Holder's behalf to take such action as may be
necessary or appropriate to effectuate the subordination as provided in this
Article XII, and appoints the Trustee such Holder's attorney-in-fact for any and
all such purposes.
SECTION 12.14 ARTICLE APPLICABLE TO PAYING AGENTS.
In case at any time any Paying Agent other than the Trustee shall have been
appointed by the Company and be then acting hereunder, the term "Trustee" as
used in this Article shall in such case (unless the context otherwise requires)
be construed as extending to and including such Paying Agent within its meaning
as fully for all intents and purposes as if such Paying Agent were named in this
Article in addition to or in place of the Trustee.
ARTICLE XIII
MISCELLANEOUS
SECTION 13.1 TRUST INDENTURE ACT CONTROLS.
If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by TIA ss. 318(c), the imposed duties shall control.
SECTION 13.2 NOTICES.
Any notice or communication by AirGate, the Guarantors or the Trustee to
the others is duly given if in writing and delivered in Person or mailed by
first class mail (registered or certified, return receipt requested), telecopier
or overnight air courier guaranteeing next day delivery, to the others address:
If to AirGate:
AirGate PCS, Inc.
Xxxxxx Tower
Suite 1700
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, Xxxxxxx 00000
Facsimile No.: (000) 000-0000
Attention: President
With a copy to:
AirGate PCS, Inc.
Xxxxxx Tower
Suite 1700
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, Xxxxxxx 00000
Facsimile No.: (000) 000-0000
Attention: General Counsel
and
Winston & Xxxxxx LLP
00 Xxxx Xxxxxx Xxxxx
Xxxxxxx, XX 00000
Facsimile No.: (000) 000-0000
Attention: R. Xxxxxx Xxxxxx, Xx., Esq.
If to the Trustee:
The Bank of New York
000 Xxxxxxx Xxxxxx, Xxxxx 0 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Facsimile No.: (000) 000-0000
Attention: Corporate Trust Administration
AirGate or the Trustee, by notice to the others may designate additional or
different addresses for subsequent notices or communications.
All notices and communications (other than those sent to Holders) shall be
deemed to have been duly given: at the time delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; when receipt acknowledged, if telecopied; and the next
Business Day after timely delivery to the courier, if sent by overnight air
courier promising next Business Day delivery.
Any notice or communication to a Holder shall be mailed by first class mail
or by overnight air courier promising next Business Day delivery to its address
shown on the register kept by the Registrar. Any notice or communication shall
also be so mailed to any Person described in TIA ss. 313(c), to the extent
required by the TIA. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other Holders.
If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it,
except in the case of notices or communications given to the Trustee, which
shall be effective only upon actual receipt.
If AirGate mails a notice or communication to Holders, it shall mail a copy
to the Trustee and each Agent at the same time.
SECTION 13.3 COMMUNICATION BY HOLDERS OF NOTES WITH OTHER
HOLDERS OF NOTES.
Holders may communicate pursuant to TIA ss. 312(b) with other
Holders with respect to their rights under this Indenture or the Notes. AirGate,
the Trustee, the Registrar and anyone else shall have the protection of TIA ss.
312(c).
SECTION 13.4 CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.
Upon any request or application by AirGate to the Trustee to take any
action under this Indenture (other than the initial issuance of the Notes),
AirGate shall furnish to the Trustee upon request:
(a) an Officers' Certificate in form and substance reasonably
satisfactory to the Trustee (which shall include the statements
set forth in Section 13.5 hereof) stating that, in the opinion of
the signers, all conditions precedent and covenants, if any,
provided for in this Indenture relating to the proposed action
have been satisfied; and
(b) an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which shall include the statements
set forth in Section 13.5 hereof) stating that, in the opinion of
such counsel, all such conditions precedent and covenants have
been satisfied.
SECTION 13.5 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA ss. 314(a)(4)) shall comply with the provisions of TIA ss.
314(e) and shall include:
(a) a statement that the Person making such certificate or opinion
has read such covenant or condition;
(b) a brief statement as to the nature and scope of the examination
or investigation upon which the statements or opinions contained
in such certificate or opinion are based;
(c) a statement that, in the opinion of such Person, he or she has
made such examination or investigation as is necessary to enable
him to express an informed opinion as to whether or not such
covenant or condition has been satisfied; and
(d) a statement as to whether or not, in the opinion of such Person,
such condition or covenant has been satisfied.
SECTION 13.6 RULES BY TRUSTEE AND AGENTS.
The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.
SECTION 13.7 NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS,
EMPLOYEES AND STOCKHOLDERS.
No director, officer, employee, incorporator or stockholder of AirGate, as
such, shall have any liability for any obligations of AirGate or any Guarantor
under the Notes, this Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder by accepting a Note
waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes.
SECTION 13.8 GOVERNING LAW.
THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO
CONSTRUE THIS INDENTURE, THE NOTES AND THE GUARANTEES, IF ANY. The parties to
this Indenture each hereby irrevocably submits to the non-exclusive jurisdiction
of any New York State or federal court sitting in the Borough of Manhattan in
The City of New York in any action or proceeding arising out of or relating to
the Notes, the Guarantees or this Indenture, and all such parties hereby
irrevocably agree that all claims in respect of such action or proceeding may be
heard and determined in such New York State or federal court and hereby
irrevocably waive, to the fullest extent that they may legally do so, the
defense of an inconvenient forum to the maintenance of such action or
proceeding. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES,
THE GUARANTEES OR THE TRANSACTIONS CONTEMPLATED HEREBY.
SECTION 13.9 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.
This Indenture may not be used to interpret any other indenture, loan or
debt agreement of AirGate or its Subsidiaries or of any other Person. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.
SECTION 13.10 SUCCESSORS.
All agreements of AirGate and the Guarantors in this Indenture and the
Notes and the Guarantees, as applicable, shall bind their respective successors
and assigns. All agreements of the Trustee in this Indenture shall bind its
successors and assigns.
SECTION 13.11 SEVERABILITY.
In case any provision in this Indenture or in the Notes shall be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.
SECTION 13.12 COUNTERPART ORIGINALS.
The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.
SECTION 13.13 TABLE OF CONTENTS, HEADINGS, ETC.
The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part of this Indenture and shall in no way
modify or restrict any of the terms or provisions hereof.
SECTION 13.14 ACTS OF HOLDERS.
(a) Any request, demand, authorization, direction, notice, consent,
waiver or other action provided by this Indenture to be given or
taken by Holders may be embodied in and evidenced by one or more
instruments of substantially similar tenor signed by such Holders
in person or by agent duly appointed in writing; and, except as
herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to
the Trustee and, where it is hereby expressly required, to
AirGate. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to
as the "Act" of Holders signing such instrument or instruments.
Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of
this Indenture and conclusive in favor of the Trustee and
AirGate, if made in the manner provided in this Section 1.04.
(b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness
of such execution or by a certificate of a notary public or other
officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing
acknowledged to such officer the execution thereof. Where such
execution is by a signer acting in a capacity other than such
signer's individual capacity, such certificate or affidavit shall
also constitute sufficient proof of such signer's authority. The
fact and date of the execution of any such instrument or writing,
or the authority of the Person executing the same, may also be
proved in any other manner which the Trustee deems sufficient.
(c) The ownership of Notes shall be proved by the Holder list
maintained under Section 2.05 hereunder.
(d) Any request, demand, authorization, direction, notice, consent,
waiver or other Act of the Holder of any Note shall bind every
future Holder of the same Note and the holder of every Note
issued upon the registration of transfer thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted
or suffered to be done by the Trustee or AirGate in reliance
thereon, whether or not notation of such action is made upon such
Note.
(e) If AirGate shall solicit from the Holders any request, demand,
authorization, direction, notice, consent, waiver or other Act,
AirGate may, at its option, by or pursuant to a Board Resolution,
fix in advance a record date for the determination of Holders
entitled to give such request, demand, authorization, direction,
notice, consent, waiver or other Act, but AirGate shall have no
obligation to do so. If such a record date is fixed, such
request, demand, authorization, direction, notice, consent,
waiver or other Act may be given before or after such record
date, but only the Holders of record at the close of business on
such record date shall be deemed to be Holders for the purposes
of determining whether Holders of the requisite proportion of
outstanding Notes have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent,
waiver or other Act, and for that purpose the outstanding Notes
shall be computed as of such record date; provided that no such
authorization, agreement or consent by the Holders on such record
date shall be deemed effective unless it shall become effective
pursuant to the provisions of this Indenture not later than six
months after the record date.
[Signatures on following page]
SIGNATURES
Dated as of February 20, 2004
AIRGATE PCS, INC.
By: /s/ Xxxxxx X. Xxxxxxxxx
------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: President and Chief Executive Officer
AGW LEASING COMPANY, INC.
By: /s/ Xxxxxx X. Xxxxxxxxx
-----------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: President and Chief Executive Officer
AIRGATE NETWORK SERVICES, LLC
By: /s/ Xxxxxx X. Xxxxxxxxx
------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: President and Chief Executive Officer
AIRGATE SERVICE COMPANY, INC.
By: /s/ Xxxxxx X. Xxxxxxxxx
------------------------------
Name: Xxxxxx X. Xxxxxxxxx
Title: President and Chief Executive Officer
THE BANK OF NEW YORK, as Trustee
By: /s/ Xxxx XxXxxxxx
---------------------------
Name: Xxxx XxXxxxxx
Title: Vice President
A-12
EXHIBIT A
FORM OF NOTE
(Face of Senior Subordinated Secured Note)
9?% Senior Subordinated Secured Notes due 2009
[Unless and until it is exchanged in whole or in part for Senior
Subordinated Secured Notes in definitive form, this Senior Subordinated Secured
Note may not be transferred except as a whole by the Depositary to a nominee of
the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. Unless this
certificate is presented by an authorized representative of The Depository Trust
Company (55 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx) ("XXX"), 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 such other name as may be
requested by an authorized representative of DTC (and any payment is made to
Cede & Co. or such other entity as may be 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 in as much as the registered owner
hereof, Cede & Co., has an interest herein.]
No. ___ $_____________
CUSIP NO.
AIRGATE PCS, INC.
promises to pay to ___________________ or registered assigns, the principal sum
of ____________ Dollars on September 1, 2009.
Interest Payment Dates: January 1 and July 1, beginning July 1, 2004
Record Dates: June 15 and December 15
AIRGATE PCS, INC.
By: ___________________________
Name:
Title:
This is one of the
Senior Subordinated Secured Notes referred to in the
within-mentioned Indenture:
Dated:
-----------------------------
THE BANK OF NEW YORK,
as Trustee
By:
-----------------------------------------
(Back of Senior Subordinated Secured Note)
9?% Senior Subordinated Secured Notes due 2009
Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.
1) INTEREST. AirGate PCS, Inc., a Delaware corporation, or its successor
("AirGate"), promises to pay interest on the principal amount of this
Senior Subordinated Secured Note at the rate of 9?% per annum. AirGate will
pay interest in United States dollars (except as otherwise provided herein)
semi-annually in arrears on January 1 and July 1, commencing on July 1,
2004, or if any such day is not a Business Day, on the next succeeding
Business Day (each an "Interest Payment Date"). Interest on the Senior
Subordinated Secured Notes shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from January 1,
2004; provided that if there is no existing Default or Event of Default in
the payment of interest, and if this Senior Subordinated Secured Note is
authenticated between a record date referred to on the face hereof and the
next succeeding Interest Payment Date (but after January 1, 2004), interest
shall accrue from such next succeeding Interest Payment Date, except in the
case of the original issuance of Senior Subordinated Secured Notes, in
which case interest shall accrue from the date of authentication. AirGate
shall pay interest (including post-petition interest in any proceeding
under any Bankruptcy Law) on overdue principal at the rate equal to 1% per
annum in excess of the then applicable interest rate on the Senior
Subordinated Secured Notes to the extent lawful; it shall pay interest
(including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue installments of interest (without regard to any applicable
grace period) at the same rate to the extent lawful. Interest shall be
computed on the basis of a 360-day year comprised of twelve 30-day months.
2) METHOD OF PAYMENT. AirGate will pay interest on the Senior Subordinated
Secured Notes (except defaulted interest) on the applicable Interest
Payment Date to the Persons who are registered Holders of Senior
Subordinated Secured Notes at the close of business on the June 15 or
December 15 next preceding the Interest Payment Date, even if such Senior
Subordinated Secured Notes are cancelled after such record date and on or
before such Interest Payment Date, except as provided in Section 2.12 of
the Indenture with respect to defaulted interest. The Senior Subordinated
Secured Notes shall be payable as to principal, premium and interest at the
office or agency of AirGate maintained for such purpose within or without
the City and State of New York, or, at the option of AirGate, payment of
interest may be made by check mailed to the Holders at their addresses set
forth in the register of Holders; provided that payment by wire transfer of
immediately available funds shall be required with respect to principal of,
premium, if any, and interest on, all Global Notes and all other Senior
Subordinated Secured Notes the Holders of which shall have provided written
wire transfer instructions to AirGate and the Paying Agent. Such payment
shall be in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts.
Any payments of principal of this Senior Subordinated Secured Note
prior to Stated Maturity shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not noted hereon. The amount
due and payable at the maturity of this Note shall be payable only upon
presentation and surrender of this Note at an office of the Trustee or the
Trustee's agent appointed for such purposes.
3) PAYING AGENT AND REGISTRAR. Initially, The Bank of New York, the Trustee
under the Indenture, shall act as Paying Agent and Registrar. AirGate may
change any Paying Agent or Registrar without notice to any Holder. AirGate
or any of its Subsidiaries may act in any such capacity.
4) INDENTURE. AirGate issued the Senior Subordinated Secured Notes under an
Indenture, dated as of February 20, 2004 (the "Indenture"), among AirGate,
AGW Leasing Company, Inc., AirGate Network Services, LLC, AirGate Service
Company, Inc. and the Trustee. The terms of the Senior Subordinated Secured
Notes include those stated in the Indenture and those made a part of the
Indenture by reference to the Trust Indenture Act of 1939, as amended (15
U.S. Code xx.xx. 77aaa-77bbbb) (the "TIA"). To the extent the provisions of
this Senior Subordinated Secured Note are inconsistent with the provisions
of the Indenture, the Indenture shall govern. The Senior Subordinated
Secured Notes are subject to all such terms, and Holders are referred to
the Indenture and such Act for a statement of such terms. The Senior
Subordinated Secured Notes are senior subordinated and secured Obligations
of AirGate limited to $159,034,600 in aggregate principal amount, plus
amounts, if any, sufficient to pay premium and interest on outstanding
Senior Subordinated Secured Notes as set forth in Paragraph 2 hereof.
The payment of principal and interest on the Senior Subordinated
Secured Notes is unconditionally guaranteed on a senior subordinated and
secured basis by the Guarantors.
5) OPTIONAL REDEMPTION. The Senior Subordinated Secured Notes shall not be
redeemable at AirGate's option prior to January 1, 2006. Thereafter, the
Senior Subordinated Secured Notes shall be subject to redemption at the
option of AirGate, in whole or in part, upon not less than 30 nor more than
60 days' notice, at the redemption prices (expressed as percentages of
principal amount) set forth below together with accrued and unpaid interest
thereon to the applicable redemption date, if redeemed during the
twelve-month period beginning on January 1 of the years indicated below:
Year Percentage
---- ----------
2006................................... 104.688%
2007................................... 102.344%
2008 and thereafter.................... 100.000%
6) MANDATORY REDEMPTION. AirGate shall not be required to make mandatory
redemption or sinking fund payments with respect to the Senior Subordinated
Secured Notes.
7) REPURCHASE AT OPTION OF HOLDER.
(a) Upon the occurrence of a Change of Control, each Holder will have the
right to require AirGate to repurchase all or any part (equal to $100
or an integral multiple thereof) of such Holder's Senior Subordinated
Secured Notes pursuant to the offer described below (the "Change of
Control Offer") at an offer price in cash equal to 101% of the
aggregate principal amount thereof plus accrued and unpaid interest
thereon to the date of purchase. Within ten days following any Change
of Control, AirGate will mail a notice to each Holder describing the
transaction or transactions that constitute the Change of Control
setting forth the procedures governing the Change of Control Offer
required by the Indenture.
(b) When the aggregate amount of Excess Proceeds exceeds $10.0 million,
AirGate will be required to make an offer to all Holders and to
holders of such other Indebtedness that is pari passu with the Senior
Subordinated Secured Notes (an "Asset Sale Offer") to purchase the
maximum principal amount of Senior Subordinated Secured Notes and such
other Indebtedness that is pari passu with the Senior Subordinated
Secured Notes that may be purchased out of the Excess Proceeds, at an
offer price in cash in an amount equal to 100% of the principal amount
thereof plus accrued and unpaid interest to the date of purchase in
accordance with the procedures set forth in the Indenture or such
other governing document in the case of Indebtedness pari passu with
the Senior Subordinated Secured Notes. To the extent that the
aggregate amount of Senior Subordinated Secured Notes and such other
Indebtedness that is pari passu with the Senior Subordinated Secured
Notes tendered pursuant to an Asset Sale Offer is less than the Excess
Proceeds, AirGate may use any remaining Excess Proceeds for any
purpose not otherwise prohibited by the Indenture. If the aggregate
principal amount of Senior Subordinated Secured Notes and such other
Indebtedness that is pari passu with the Senior Subordinated Secured
Notes surrendered by holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Senior Subordinated Secured
Notes and such other Indebtedness that is pari passu with the Senior
Subordinated Secured Notes to be purchased on a pro rata basis. Upon
completion of such offer to purchase, the amount of Excess Proceeds
shall be reset at zero.
(c) Holders of the Senior Subordinated Secured Notes that are the subject
of an offer to purchase will receive a Change of Control Offer or
Asset Sale Offer from AirGate prior to any related purchase date and
may elect to have such Senior Subordinated Secured Notes purchased by
completing the form titled "Option of Holder to Elect Purchase"
appearing below.
8) NOTICE OF REDEMPTION. Notice of redemption shall be mailed at least 30 days
but not more than 60 days before the redemption date to each Holder whose
Senior Subordinated Secured Notes are to be redeemed at its registered
address. Senior Subordinated Secured Notes in denominations larger than
$100 may be redeemed in part but only in whole multiples of $100, unless
all of the Senior Subordinated Secured Notes held by a Holder are to be
redeemed. On and after the redemption date, interest ceases to accrue on
the Senior Subordinated Secured Notes or portions hereof called for
redemption.
9) SECURITY. The Indenture provides that the Senior Subordinated Secured Notes
or Guarantees must be secured by Liens on Collateral of AirGate or the
Guarantors. Liens securing the Senior Subordinated Secured Notes or
Guarantees may be released in various circumstances, including in certain
circumstances without the consent of Holders.
10) DENOMINATIONS, TRANSFER, EXCHANGE. The Senior Subordinated Secured Notes
are in registered form without coupons in initial denominations of $100 and
integral multiples of $100. The transfer of the Senior Subordinated Secured
Notes may be registered and the Senior Subordinated Secured Notes may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and AirGate may require a Holder to pay any taxes
and fees required by law or permitted by the Indenture. AirGate need not
exchange or register the transfer of any Senior Subordinated Secured Note
or portion of a Senior Subordinated Secured Note selected for redemption,
except for the unredeemed portion of any Senior Subordinated Secured Note
being redeemed in part. Also, it need not exchange or register the transfer
of any Senior Subordinated Secured Notes for a period of 15 days before a
selection of Senior Subordinated Secured Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.
11) PERSONS DEEMED OWNERS. The registered holder of a Senior Subordinated
Secured Note may be treated as its owner for all purposes.
12) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to the following paragraphs, the
Indenture and the Senior Subordinated Secured Notes may be amended or
supplemented with the consent of the Holders of at least a majority in
aggregate principal amount of the then outstanding Senior Subordinated
Secured Notes (it being understood that the provisions of the Intercreditor
Agreement and the Second-Priority Security Documents that may by their
terms be amended or supplemented without the consent of the Holders do not
require the consent of the Holders contemplated hereby), including, without
limitation, consents obtained in connection with a purchase of or, tender
offer or exchange offer for Senior Subordinated Secured Notes, and any
existing Default or Event of Default or compliance with any provision of
the Indenture or the Senior Subordinated Secured Notes may be waived with
the consent of the Holders of a majority in aggregate principal amount of
the then outstanding Senior Subordinated Secured Notes (it being understood
that the provisions of the Intercreditor Agreement and the Second-Priority
Security Documents that may by their terms be waived without the consent of
the Holders do not require the consent of the Holders contemplated hereby),
including consents obtained in connection with a tender offer or exchange
offer for Senior Subordinated Secured Notes.
Without the consent of any Holder, AirGate and the Trustee may amend
or supplement the Indenture, the Senior Subordinated Secured Notes, the
Intercreditor Agreement or any Second-Priority Security Document to (i)
cure any ambiguity, defect or inconsistency, (ii) provide for
uncertificated Senior Subordinated Secured Notes in addition to or in place
of certificated Senior Subordinated Secured Notes, (iii) provide for the
assumption of AirGate's or a Guarantor's obligations to Holders under the
Indenture, the Intercreditor Agreement or any Second-Priority Security
Document in the case of a merger or consolidation or a sale of all or
substantially all of AirGate's assets in accordance with the Indenture,
(iv) make any change that would provide any additional rights or benefits
to the Holders or that does not adversely affect the legal rights under the
Indenture of any such Holder, (v) secure the Notes under the Indenture, to
add Guarantees with respect to the Notes, or to confirm and evidence the
release, termination or discharge of any such security or Guarantee when
such release, termination or discharge is permitted by the Indenture and
the Security Documents, (vi) add or release Collateral as permitted under
the terms of the Indenture, the Intercreditor Agreement or the
Second-Priority Security Documents, (vii) comply with the requirements of
the Commission in order to effect or maintain the qualification of the
Indenture under the TIA or otherwise in obtaining an exemption from, or
interpretation of, or in elaborating on, the requirements of Section 314(d)
of the TIA or to enable AirGate to rely on existing interpretations of the
Commission regarding the requirements of Section 314(d) of the TIA or
(viii) to confirm the automatic amendment or waiver of the Second-Priority
Security Documents pursuant to the terms of the Intercreditor Agreement.
Without the consent of each Holder adversely affected, an amendment or
waiver to the Indenture or the Senior Subordinated Secured Notes may not,
with respect to any Senior Subordinated Secured Notes held by a
non-consenting Holder, (i) reduce the principal amount of Senior
Subordinated Secured Notes whose Holders must consent to an amendment,
supplement or waiver, (ii) reduce the principal of or change the fixed
maturity of any Senior Subordinated Secured Note or alter the provisions
with respect to the redemption of the Senior Subordinated Secured Notes,
except for provisions relating to Sections 4.10 and 4.14 of the Indenture,
(iii) reduce the rate of or change the time for payment of interest on any
Senior Subordinated Secured Note, (iv) waive a Default or Event of Default
in the payment of principal of or premium, if any, or interest on the
Senior Subordinated Secured Notes (except a rescission of acceleration of
the Senior Subordinated Secured Notes by the Holders of at least a majority
in aggregate principal amount of the Senior Subordinated Secured Notes and
a waiver of the payment default that resulted from such acceleration), (v)
make any Senior Subordinated Secured Note payable in money other than that
stated in the Senior Subordinated Secured Notes, (vi) make any change in
the provisions of the Indenture relating to waivers of past Defaults or the
rights of Holders to receive payments of principal of or premium, if any,
or interest on the Senior Subordinated Secured Notes, (vii) waive a
redemption payment with respect to any Senior Subordinated Secured Note,
other than a payment required by Sections 4.10 and 4.14 of the Indenture,
and (viii) make any change in the preceding amendment and waiver
provisions.
13) DEFAULTS AND REMEDIES. Events of Default include: (i) default for 30 days
in the payment when due of interest on the Senior Subordinated Secured
Notes, whether or not prohibited by Article XII of the Indenture; (ii)
default in payment when due of the principal of or premium, if any, on the
Senior Subordinated Secured Notes, whether or not prohibited by Article XII
of the Indenture; (iii) failure by AirGate or any Restricted Subsidiary to
comply with the provisions described in Sections 4.10 and 4.14 of the
Indenture; (iv) failure by AirGate or any Restricted Subsidiary for 60 days
after notice from the Trustee or the Holders of at least 25% in principal
amount of the Senior Subordinated Secured Notes then outstanding to comply
with any of the other provisions of the Indenture; (v) default under any
mortgage, indenture or instrument under which there may be issued or by
which there may be secured or evidenced any Indebtedness for money borrowed
by AirGate or any of its Restricted Subsidiaries (or the payment of which
is guaranteed by AirGate or any of its Restricted Subsidiaries) whether
such Indebtedness or guarantee now exists, or is created after the date of
the Indenture, which default (A)(1) is caused by a failure to pay any
principal of or premium, if any, or interest on such Indebtedness prior to
the expiration of the grace period provided in such Indebtedness on the
date of such default (a "Payment Default") or (2) results in the
acceleration of such Indebtedness prior to its express maturity and (B) in
each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been
a Payment Default or the maturity of which has been so accelerated,
aggregates $10.0 million or more; (vi) failure by AirGate or any of its
Restricted Subsidiaries to pay final judgments aggregating in excess of
$10.0 million, which judgments are not paid, discharged or stayed for a
period of 60 days; (vii) certain events of bankruptcy or insolvency with
respect to AirGate or any of its Restricted Subsidiaries; (viii) any
Second-Priority Security Document or the Intercreditor Agreement is held to
be unenforceable or invalid for any reason, the security interests
purported to be created by the Second-Priority Security Documents are held
to be unenforceable, invalid or impaired with respect to a material portion
of the Collateral, AirGate or any Guarantor defaults in the performance of
the terms of any of the Second-Priority Security Documents or the
Intercreditor Agreement in a manner which adversely affects the
enforceability or validity of the security interest on a material portion
of the Collateral or in a manner which adversely affects the condition or
value of a material portion of the Collateral, or AirGate or any Guarantor
repudiates or disaffirms any of its obligations under any of the
Second-Priority Security Documents or the Intercreditor Agreement; (ix)
except as permitted by the Indenture, any Guarantee shall be held in any
judicial proceeding to be unenforceable or invalid or shall cease for any
reason to be in full force and effect or any Guarantor, or any Person
acting on behalf of any Guarantor, shall deny or disaffirm its obligations
under its Guarantee; and (x) any event occurs that causes, subject to any
applicable grace period, an Event of Termination under any of the Sprint
Agreements.
If any Event of Default occurs and is continuing, the Trustee or the
Holders of at least 25% in principal amount of the then outstanding Senior
Subordinated Secured Notes may declare all the Senior Subordinated Secured
Notes to be due and payable immediately. Notwithstanding the foregoing, in
the case of an Event of Default arising from certain events of bankruptcy
or insolvency, with respect to AirGate or any Restricted Subsidiary that is
a Significant Subsidiary or any group of Restricted Subsidiaries that,
taken together, would constitute a Significant Subsidiary, all outstanding
Senior Subordinated Secured Notes will become due and payable immediately
without further action or notice. Holders may not enforce the Indenture or
the Senior Subordinated Secured Notes except as provided in the Indenture.
Subject to certain limitations, Holders of a majority in principal amount
of the then outstanding Senior Subordinated Secured Notes may direct the
Trustee in its exercise of any trust or power. The Trustee may withhold
from Holders notice of any continuing Default or Event of Default (except a
Default or Event of Default relating to the payment of principal or
interest) if it determines that withholding notice is in their interest.
14) TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for
AirGate, the Guarantors or their respective Affiliates, and may otherwise
deal with AirGate, the Guarantors or their respective Affiliates, as if it
were not the Trustee.
15) NO RECOURSE AGAINST OTHERS. No director, officer, employee, incorporator or
stockholder, of AirGate or any Subsidiary Guarantor, as such, shall have
any liability for any obligations of AirGate or any Subsidiary Guarantor
under the Senior Subordinated Secured Notes or the Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Senior Subordinated Secured Note
waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Senior Subordinated Secured
Notes.
16) AUTHENTICATION. This Senior Subordinated Secured Note shall not be valid
until authenticated by the manual signature of the Trustee or an
authenticating agent.
17) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder
or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants
by the entireties), JT TEN (= joint tenants with right of survivorship and
not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts
to Minors Act).
18) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, AirGate has caused CUSIP
numbers to be printed on the Senior Subordinated Secured Notes and the
Trustee may use CUSIP numbers in notices of redemption as a convenience to
the Holders. No representation is made as to the accuracy of such numbers
either as printed on the Senior Subordinated Secured Notes or as contained
in any notice of redemption and reliance may be placed only on the other
identification numbers placed thereon.
AirGate shall furnish to any Holder upon written request and without
charge a copy of the Indenture. Requests may be made to:
AirGate PCS, Inc.
Xxxxxx Tower
Suite 1700
000 Xxxxxxxxx Xxxxxx, X.X.
Xxxxxxx, Xxxxxxx 00000
Telecopy: (000) 000-0000
Attention: Secretary
ASSIGNMENT FORM
To assign this Senior Subordinated Secured Note, fill in the form below:
(I) or (we) assign and transfer this Senior Subordinated Secured Note to
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(Insert assignee's soc. sec. or tax I.D. no.)
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(Print or type assignee's name, address and zip code)
and irrevocably appoint _______________________________________________________
to transfer this Senior Subordinated Secured Note on the books of AirGate. The
agent may substitute another to act for him.
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Date: ___________________
Your Signature:____________________________
(Sign exactly as your name
appears on the face of this
Senior Subordinated Secured Note)
Signature guarantee:
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Senior Subordinated Secured Note
purchased by AirGate pursuant to Section 4.10 or 4.14 of the Indenture, check
the box below:
[_] Section 4.10 [_] Section 4.14
If you want to elect to have only part of the Senior Subordinated Secured
Note purchased by AirGate pursuant to Section 4.10 or Section 4.14 of the
Indenture, state the amount you elect to have purchased: $_____________
Date:_________________ Your Signature:
-----------------------------
(Sign exactly as your name appears
on the Senior Subordinated
Secured Note)
Tax Identification No.: ___________
Signature guarantee:
SCHEDULE OF EXCHANGES OF SENIOR SUBORDINATED SECURED NOTES
The following exchanges of a part of this Global Note for
other Senior Subordinated Secured Notes have been made:
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
Principal Amount of Signature of
this Global Note authorized officer
Amount of decrease Amount of increase in following such of Trustee or Senior
in Principal Amount Principal Amount of decrease (or Subordinated Secured
Date of Exchange of this Global Note this Global Note increase) Note Custodian
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
EXHIBIT B
FORM OF GUARANTEE
The Guarantor listed below (hereinafter referred to as the "Guarantor,"
which term includes any successors or assigns under that certain Indenture,
dated as of February 20, 2004, by and among AirGate, AGW Leasing Company, Inc.,
AirGate Network Services, LLC, AirGate Service Company, Inc. and the Trustee (as
amended and supplemented from time to time, the "Indenture") and any additional
Guarantors), has guaranteed the Notes and the obligations of AirGate under the
Indenture, which include (i) the due and punctual payment of the principal of,
premium, if any, and interest on the 9?% Senior Subordinated Secured Notes due
2009 (the "Notes") of AirGate PCS, Inc., a Delaware corporation ("AirGate"),
whether at stated maturity, by acceleration or otherwise, the due and punctual
payment of interest on the overdue principal and premium, if any, and (to the
extent permitted by law) interest on any interest, if any, on the Notes, and the
due and punctual performance of all other obligations of AirGate to the Holders
or the Trustee all in accordance with the terms set forth in Article XI of the
Indenture, (ii) in case of any extension of time of payment or renewal of any
Notes or any 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, and (iii) the payment
of any and all costs and expenses (including reasonable attorneys' fees)
incurred by the Trustee or any Holder in enforcing any rights under this
Guarantee or the Indenture.
The obligations of each Guarantor to the Holders and to the Trustee
pursuant to this Guarantee and the Indenture are expressly set forth in Article
XI of the Indenture and reference is hereby made to such Indenture for the
precise terms of this Guarantee.
No stockholder, employee, officer, director or incorporator, as such, past,
present or future of each Guarantor shall have any liability under this
Guarantee by reason of his or its status as such stockholder, employee, officer,
director or incorporator.
This is a continuing Guarantee and shall remain in full force and effect
and shall be binding upon each Guarantor and its successors and assigns until
full and final payment of all of AirGate's obligations under the Notes and
Indenture or until released in accordance with the Indenture and shall inure to
the benefit of the successors and assigns of the Trustee and the Holders, and,
in the event of any transfer or assignment of rights by any Holder or the
Trustee, the rights and privileges herein conferred upon that party shall
automatically extend to and be vested in such transferee or assignee, all
subject to the terms and conditions hereof. This is a Guarantee of payment and
not of collectibility.
This Guarantee shall not be valid or obligatory for any purpose until the
certificate of authentication on the Note upon which this Guarantee is noted
shall have been executed by the Trustee under the Indenture by the manual
signature of one of its authorized officers. The Obligations of each Guarantor
under its Guarantee shall be limited to the extent necessary to insure that it
does not constitute a fraudulent conveyance under applicable law.
THE TERMS OF ARTICLE XI OF THE INDENTURE ARE INCORPORATED HEREIN BY
REFERENCE.
Capitalized terms used herein have the same meanings given in the Indenture
unless otherwise indicated.
Dated as of [NAME OF GUARANTOR]
------------------------
By:_______________________________
Name:
Title:
(SEAL)
