EXHIBIT (4)-1
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HEALTHSOUTH CORPORATION,
as Issuer,
and
THE BANK OF NEW YORK, as Trustee
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INDENTURE
Dated as of September 25, 2000
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10-3/4% Senior Subordinated Notes due 2008, Series A
10-3/4% Senior Subordinated Notes due 2008, Series B
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CROSS-REFERENCE TABLE
TIA Indenture
Section Section
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310(a)(1)....................................................................... 7.10
(a)(2)....................................................................... 7.10
(a)(3)....................................................................... N.A.
(a)(4)....................................................................... N.A
(a)(5)....................................................................... 7.10
(b).......................................................................... 7.08; 7.10; 11.02
(c).......................................................................... N.A.
311(a).......................................................................... 7.11
(b).......................................................................... 7.11
(c).......................................................................... N.A.
312(a).......................................................................... 2.05
(b).......................................................................... 11.03
(c).......................................................................... 11.03
313(a).......................................................................... 7.06
(b)(1)....................................................................... 7.06
(b)(2)....................................................................... 7.06
(c).......................................................................... 7.06; 11.02
(d).......................................................................... 7.06
314(a).......................................................................... 4.02; 4.08; 11.02
(b).......................................................................... N.A.
(c)(1)....................................................................... 11.04; 11.05
(c)(2)....................................................................... 11.04; 11.05
(c)(3)....................................................................... N.A.
(d).......................................................................... N.A.
(e).......................................................................... 11.05
(f).......................................................................... N.A.
315(a).......................................................................... 7.01; 7.02
(b).......................................................................... 7.05; 11.02
(c).......................................................................... 7.01
(d).......................................................................... 6.05; 7.01; 7.02
(e).......................................................................... 6.11
316(a) (last sentence).......................................................... 2.09
(a)(1)(A).................................................................... 6.05
(a)(1)(B).................................................................... 6.04
(a)(2)....................................................................... 8.02
(b).......................................................................... 6.07
(c).......................................................................... 8.04
317(a)(1)....................................................................... 6.08
(a)(2)....................................................................... 6.09
(b).......................................................................... 2.04
318(a).......................................................................... 11.01
N.A. means Not Applicable
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NOTE: This Cross-Reference Table shall not, for any purpose, be deemed to be a
part of this Indenture.
TABLE OF CONTENTS
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ARTICLE 1
DEFINITIONS
Section 1.01. Definitions.................................................................................1
Section 1.02. Other Definitions..........................................................................14
Section 1.03. Incorporation by Reference of Trust Indenture Act..........................................14
Section 1.04. Rules of Construction......................................................................15
ARTICLE 2
THE NOTES
Section 2.01. Dating; Incorporation of Form in Indenture.................................................15
Section 2.02. Execution and Authentication; Appointment of Authenticating Agent..........................15
Section 2.03. Registrar and Paying Agent.................................................................16
Section 2.04. Paying Agent To Hold Money in Trust........................................................17
Section 2.05. Holder Lists...............................................................................17
Section 2.06. Transfer and Exchange......................................................................17
Section 2.07. Replacement Notes..........................................................................18
Section 2.08. Outstanding Notes..........................................................................18
Section 2.09. Treasury Notes.............................................................................19
Section 2.10. Temporary Notes............................................................................19
Section 2.11. Cancellation...............................................................................19
Section 2.12. Defaulted Interest.........................................................................19
Section 2.13. Deposit of Moneys; Payments................................................................20
Section 2.14. "CUSIP" Number.............................................................................20
Section 2.15. Book-Entry Provisions for Global Notes.....................................................20
Section 2.16. Registration of Transfers and Exchanges....................................................21
Section 2.17. Restrictive Legends........................................................................23
ARTICLE 3
REDEMPTION
Section 3.01. Notices to Trustee.........................................................................24
Section 3.02. Selection of Notes To Be Redeemed..........................................................25
Section 3.03. Notice of Redemption.......................................................................25
Section 3.04. Effect of Notice of Redemption.............................................................26
Section 3.05. Deposit of Redemption Price................................................................26
Section 3.06. Notes Redeemed in Part.....................................................................27
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ARTICLE 4
COVENANTS
Section 4.01. Payment of Notes...........................................................................27
Section 4.02. Reports....................................................................................27
Section 4.03. Waiver of Stay, Extension or Usury Laws....................................................27
Section 4.04. Compliance Certificate; Notice of Default; Tax Information.................................28
Section 4.05. Payment of Taxes and Other Claims..........................................................28
Section 4.06. Corporate Existence........................................................................28
Section 4.07. Maintenance of Office or Agency............................................................29
Section 4.08. Compliance with Laws.......................................................................29
Section 4.09. Maintenance of Properties and Insurance....................................................29
Section 4.10. Limitation on Restricted Payments..........................................................30
Section 4.11. Limitation on Additional Indebtedness and Subsidiary Preferred Stock.......................30
Section 4.12. Limitation on Asset Sales..................................................................31
Section 4.13. Limitation on Transactions with Affiliates.................................................34
Section 4.14. Limitation on Liens........................................................................34
Section 4.15. Purchase of Notes upon a Change of Control.................................................34
Section 4.16. Limitation on Restrictions on Distributions from Subsidiaries..............................36
Section 4.17. Limitations on Certain Other Subordinated Indebtedness.....................................36
ARTICLE 5
SURVIVING ENTITY
Section 5.01. Limitations on Mergers and Consolidations..................................................37
Section 5.02. Successor Substituted......................................................................37
ARTICLE 6
DEFAULTS AND REMEDIES
Section 6.01. Events of Default..........................................................................38
Section 6.02. Acceleration...............................................................................39
Section 6.03. Other Remedies.............................................................................40
Section 6.04. Waiver of Existing Defaults and Events of Default..........................................40
Section 6.05. Control by Majority........................................................................40
Section 6.06. Limitation on Suits........................................................................41
Section 6.07. Rights of Holders To Receive Payment.......................................................41
Section 6.08. Collection Suit by Trustee.................................................................41
Section 6.09. Trustee May File Proofs of Claim...........................................................42
Section 6.10. Priorities.................................................................................42
Section 6.11. Undertaking for Costs......................................................................42
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ARTICLE 7
TRUSTEE
Section 7.01. Duties of Trustee..........................................................................43
Section 7.02. Rights of Trustee..........................................................................44
Section 7.03. Individual Rights of Trustee...............................................................45
Section 7.04. Trustee's Disclaimer.......................................................................45
Section 7.05. Notice of Defaults.........................................................................45
Section 7.06. Reports by Trustee to Holders..............................................................46
Section 7.07. Compensation and Indemnity.................................................................46
Section 7.08. Replacement of Trustee.....................................................................47
Section 7.09. Successor Trustee by Consolidation, Merger or Conversion...................................47
Section 7.10. Eligibility; Disqualification..............................................................48
Section 7.11. Preferential Collection of Claims Against Company..........................................48
ARTICLE 8
MODIFICATIONS, AMENDMENTS, SUPPLEMENTS AND WAIVERS
Section 8.01. Without Consent of Holders.................................................................48
Section 8.02. With Consent of Holders....................................................................49
Section 8.03. Compliance with TIA........................................................................50
Section 8.04. Revocation and Effect of Consents..........................................................50
Section 8.05. Notation on or Exchange of Notes...........................................................50
Section 8.06. Trustee To Sign Amendments, etc............................................................51
ARTICLE 9
DISCHARGE OF INDENTURE; DEFEASANCE
Section 9.01. Satisfaction and Discharge of Indenture....................................................51
Section 9.02. Legal Defeasance...........................................................................52
Section 9.03. Covenant Defeasance........................................................................52
Section 9.04. Conditions to Legal Defeasance or Covenant Defeasance......................................53
Section 9.05. Application of Trust Money.................................................................54
Section 9.06. Repayment to the Company...................................................................54
Section 9.07. Reinstatement..............................................................................54
ARTICLE 10
SUBORDINATION
Section 10.01. Agreement To Subordinate...................................................................55
Section 10.02. Liquidation; Dissolution; Bankruptcy.......................................................55
Section 10.03. Company Not To Make Payments with Respect to
Notes in Certain Circumstances..........................................................55
Section 10.04. Acceleration of Notes......................................................................56
Section 10.05. When Distribution Must Be Paid Over........................................................56
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Section 10.06. Notice by Company..........................................................................57
Section 10.07. Subrogation................................................................................57
Section 10.08. Relative Rights............................................................................57
Section 10.09. Subordination May Not Be Impaired by the Company...........................................57
Section 10.10. Distribution or Notice to Representative...................................................57
Section 10.11. Rights of Trustee and Paying Agent.........................................................58
Section 10.12. Officers' Certificate......................................................................58
Section 10.13. Obligation of Company Unconditional........................................................58
Section 10.14. Article 10 Not To Prevent Events of Default................................................59
ARTICLE 11
MISCELLANEOUS
Section 11.01. TIA Controls...............................................................................59
Section 11.02. Notices....................................................................................59
Section 11.03. Communications by Holders with Other Holders...............................................60
Section 11.04. Certificate and Opinion as to Conditions Precedent.........................................60
Section 11.05. Statements Required in Certificate and Opinion.............................................60
Section 11.06. Rules by Trustee and Agents................................................................61
Section 11.07. Business Days; Legal Holidays..............................................................61
Section 11.08. Governing Law..............................................................................61
Section 11.09. Waiver of Trial by Jury....................................................................61
Section 11.10. Submission to Jurisdiction.................................................................61
Section 11.11. No Adverse Interpretation of Other Agreements..............................................61
Section 11.12. No Recourse Against Others.................................................................61
Section 11.13. Successors.................................................................................62
Section 11.14. Multiple Counterparts......................................................................62
Section 11.15. Table of Contents, Headings, etc...........................................................62
Section 11.16. Separability...............................................................................62
Section 11.17. Translation................................................................................62
SIGNATURES..................................................................................................S-1
EXHIBITS
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Exhibit A Form of Initial Notes.....................................................................A-1
Exhibit B Form of Exchange Notes....................................................................B-1
Exhibit C Form of Certificate To Be Delivered upon Exchange or Registration of
Transfer of Securities..................................................................C-1
Exhibit D Form of Certificate To Be Delivered in Connection with Regulation S Transfers.............D-1
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INDENTURE, dated as of September 25, 2000, between HEALTHSOUTH
CORPORATION, a corporation incorporated in Delaware (the "Company"), as Issuer,
and The Bank of New York, a New York banking corporation, as Trustee (the
"Trustee").
The Company has duly authorized the creation of an issue of
Series A 10-3/4% Senior Subordinated Notes due 2008 and Series B 10-3/4% Senior
Subordinated Notes due 2008 and, to provide therefor, the Company has duly
authorized the execution and delivery of this Indenture. All things necessary to
make the Notes, when duly issued and executed by the Company, and authenticated
and delivered hereunder, the valid obligations of the Company, and to make this
Indenture a valid and binding agreement of the Company, have been done.
Each party agrees as follows for the benefit of the other
parties and for the equal and ratable benefit of the Holders:
ARTICLE 1
DEFINITIONS
Section 1.01. Definitions.
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"Acquired Indebtedness" means (i) with respect to any Person
that becomes a Subsidiary of the Company after the Issue Date, Indebtedness of
such Person and its Subsidiaries existing at the time such Person becomes a
Subsidiary of the Company and (ii) with respect to the Company or any of its
Subsidiaries, any Indebtedness assumed by the Company or any of its Subsidiaries
in connection with the acquisition of an asset from another Person.
"Additional Interest" has the meaning provided to such term in
the Registration Rights Agreement.
"Affiliate" of any specified Person means any other Person
directly or indirectly controlling, controlled by or under direct or indirect
common control with such specified Person. For the purposes of this definition,
"control" when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise,
and the terms "controlling" and "controlled" have meanings correlative to the
foregoing.
"Agent" means any Registrar, Paying Agent, co-Registrar,
authenticating agent or agent for service of notices and demands.
"Asset Sale" for any Person means the sale, lease, conveyance
or other disposition (including, without limitation, by merger or consolidation,
and whether by operation of law or otherwise) of any of that Person's assets
(including, without limitation, the sale or other disposition of Capital Stock
of any Subsidiary of such Person, whether by such Person or by such Subsidiary),
whether owned on the Issue Date or subsequently acquired, in one transaction or
a series of related transactions, in which such Person and/or its Subsidiaries
sell, lease, convey or otherwise dispose of: (i) all or substantially all of the
Capital Stock of any of such Person's Subsidiaries; (ii) assets which constitute
all or substantially all of any division or line of business of such Person or
any of its Subsidiaries; or (iii) any other assets of such Person or any of its
Subsidiaries, other than in the ordinary course of business, provided, that the
Fair Market Value thereof shall be at least 1% of Consolidated
Tangible Assets; provided, however, that the following shall not constitute
Asset Sales: (a) transactions between the Company and any of its Wholly Owned
Subsidiaries or among such Wholly Owned Subsidiaries; (b) any transaction not
prohibited by Section 4.10 hereof or that constitutes a Permitted Investment;
(c) any transfer of assets (including Capital Stock) that is governed by and in
accordance with Article 5 hereof or the creation of any Lien not prohibited by
Section 4.14 hereof; or (d) sales of damaged, worn-out or obsolete equipment or
assets that, in the Company's reasonable judgment, are no longer either used or
useful in the business of the Company or its Subsidiaries.
"Attributable Indebtedness" when used with respect to any Sale
and Leaseback Transaction means, as at the time of determination, the present
value (discounted at a rate equivalent to the interest rate implicit in the
lease, compounded on a semiannual basis) of the total obligations of the lessee
for rental payments, after excluding all amounts required to be paid on account
of maintenance and repairs, insurance, taxes, utilities and other similar
expenses payable by the lessee pursuant to the terms of the lease, during the
remaining term of the lease included in any such Sale and Leaseback Transaction
or until the earliest date on which the lessee may terminate such lease without
penalty or upon payment of a penalty (in which case the rental payments shall
include such penalty); provided, that the Attributable Indebtedness with respect
to a Sale and Leaseback Transaction shall be no less than the fair market value
of the property subject to such Sale and Leaseback Transaction.
"Bank Debt" means all obligations of the Company and its
Subsidiaries, now or hereafter existing under (i) the Credit Agreements, whether
for principal, interest, reimbursement of amounts drawn under letters of credit
issued pursuant thereto, guarantees in respect thereof, fees, expenses,
premiums, indemnities or otherwise, and (ii) any Indebtedness incurred by the
Company to extend, refund or refinance, in whole or in part, the Bank Debt,
including any interest and premium on any such Indebtedness.
"Board of Directors" means, with respect to any Person, the
board of directors or similar governing body of such Person or any duly
authorized committee thereof.
"Board Resolution" means, with respect to any Person, a copy
of a resolution certified by the Secretary or an Assistant Secretary of such
Person to have been duly adopted by the Board of Directors of such Person and to
be in full force and effect on the date of such certification and delivered to
the Trustee.
"Capital Stock" of any Person means any and all shares, rights
to purchase, warrants or options (whether or not currently exercisable),
participation or other equivalents of or interest in (however designated) the
equity (including without limitation common stock, preferred stock and
partnership, joint venture and limited liability company interests) of such
Person (excluding any debt securities that are convertible into, or exchangeable
for, such equity).
"Capitalized Lease Obligations" of any Person means the
obligation of such Person to pay rent or other amounts under a lease that is
required to be capitalized for financial reporting purposes in accordance with
GAAP, and the amount of such obligation shall be the capitalized amount thereof
determined in accordance with GAAP.
"Certificated Notes" means one or more certificated Notes in
registered form.
"Change of Control" means the occurrence of any of the
following: (i) all or substantially all of the Company's assets are sold as an
entirety to any Person or related group of Persons; (ii) there shall be
consummated any consolidation or merger of the Company (A) in which the Company
is not the continuing or surviving corporation (other than a consolidation or
merger with a Wholly Owned Subsidiary of the Company in
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which all shares of the Company's Common Equity outstanding immediately prior to
the effectiveness thereof are changed into or exchanged for the same
consideration) or (B) pursuant to which the Company's Common Equity would be
converted into cash, securities or other property, in each case other than a
consolidation or merger of the Company in which the holders of the Company's
Common Equity immediately prior to the consolidation or merger have, directly or
indirectly, at least a majority of the total voting power of all classes of
Capital Stock entitled to vote generally in the election of directors of the
continuing or surviving corporation immediately after such consolidation or
merger in substantially the same proportion as their ownership of the Company's
Common Equity immediately before such transaction; (iii) any Person, or any
Persons acting together which would constitute a "group" for purposes of Section
13(d) of the Exchange Act, together with any affiliates thereof, shall
beneficially own (as defined in Rule 13d-3 under the Exchange Act) at least 50%
of the total voting power of all classes of Capital Stock of the Company
entitled to vote generally in the election of directors of the Company; (iv) at
any time during any consecutive two-year period, individuals who at the
beginning of such period constituted the Board of Directors of the Company
(together with any new directors whose election by such Board of Directors or
whose nomination for election by the stockholders of the Company was approved by
a vote of 66-2/3% of the directors then still in office who were either
directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Company then in office; or (v) the
Company is liquidated or dissolved or adopts a plan of liquidation or
dissolution.
"Commission" means the Securities and Exchange Commission, as
from time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Trust Indenture Act, the body
performing such duties at the time.
"Common Equity" of any Person means all Capital Stock of such
Person that is generally entitled to (i) vote in the election of directors of
such Person or (ii) if such Person is not a corporation, vote or otherwise
participate in the selection of the governing body, partners, managers or others
that will control the management and policies of such Person.
"Company" means the party named as such in the first paragraph
of this Indenture until a successor replaces such party pursuant to Article 5
hereof and thereafter means such successor.
"Consolidated Amortization Expense" of any Person for any
period means the amortization expense of such Person and its Subsidiaries for
such period (to the extent included in the computation of Consolidated Net
Income of such Person), determined on a consolidated basis in accordance with
GAAP.
"Consolidated Depreciation Expense" of any Person means the
depreciation expense of such Person and its Subsidiaries for such period (to the
extent included in the computation of Consolidated Net Income of such Person),
determined on a consolidated basis in accordance with GAAP.
"Consolidated EBITDA" of any Person means, with respect to any
determination date, Consolidated Net Income, plus (i) Consolidated Income Tax
Expense, plus (ii) Consolidated Depreciation Expense, plus (iii) Consolidated
Amortization Expense, plus (iv) Consolidated Interest Expense, plus (v) all
other unusual non-cash items or non-recurring non-cash items reducing
Consolidated Net Income of such Person and its Subsidiaries, determined on a
consolidated basis in accordance with GAAP, and less all non-cash items
increasing Consolidated Net Income of such Person and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP, in each case, for
such Person's prior four full fiscal quarters for which financial results have
been reported immediately preceding the determination date.
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"Consolidated Income Tax Expense" means, for any Person for
any period, the provision for taxes based on income and profits of such Person
and its Subsidiaries to the extent such provision for income taxes was deducted
in computing Consolidated Net Income of such Person for such period, determined
on a consolidated basis in accordance with GAAP.
"Consolidated Interest Expense" of any Person for any period
means, without duplication, (i) the Interest Expense of such Person and its
Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP, plus (ii) (to the extent not otherwise included within the definition
of Interest Expense as imputed interest) one-third of the rental expense on
Attributable Indebtedness of such Person for such period determined on a
consolidated basis, plus (iii) the dividend requirements of such Person and its
Subsidiaries with respect to Disqualified Stock and with respect to all other
Preferred Stock of Subsidiaries of such Person (in each case whether in cash or
otherwise (except dividends payable solely in shares of Capital Stock (other
than Disqualified Stock) of such Person or such Subsidiary)) paid, accrued or
accumulated during such period times a fraction the numerator of which is one
and the denominator of which is one minus the then effective consolidated
Federal, state and local tax rate of such Person, expressed as a decimal.
"Consolidated Net Income" of any Person for any period means
the net income (or loss) of such Person and its Subsidiaries for such period
determined on a consolidated basis in accordance with GAAP; provided that there
shall be excluded from such net income (to the extent otherwise included
therein), without duplication:
(i) the net income (or loss) of any Person (other than a
Subsidiary of the referent Person) in which any Person other than the
referent Person has an ownership interest, except to the extent that
any such income has actually been received by the referent Person or
any of its Wholly Owned Subsidiaries in the form of dividends or
similar distributions during such period;
(ii) except to the extent includable in the consolidated net income
of the referent Person pursuant to the foregoing clause (i), the net
income (or loss) of any Person that accrued prior to the date that
(a) such Person becomes a Subsidiary of the referent Person or is
merged into or consolidated with the referent Person or any of its
Subsidiaries or (b) the assets of such Person are acquired by the
referent Person or any of its Subsidiaries;
(iii) the net income of any Subsidiary of the referent Person (other
than a Wholly Owned Subsidiary) to the extent that the declaration or
payment of dividends or similar distributions by such Subsidiary of
that income is not permitted by operation of the terms of its charter
or any agreement, instrument, judgment, decree, order, statute, rule
or governmental regulation applicable to that Subsidiary during such
period;
(iv) any gain (or loss), together with any related provisions for
taxes on any such gain, realized during such period by the referent
Person or any of its Subsidiaries upon (a) the acquisition of any
securities, or the extinguishment of any Indebtedness, of the
referent Person or any of its Subsidiaries or (b) any Asset Sale by
the referent Person or any of its Subsidiaries;
(v) any extraordinary gain or extraordinary loss, together with
any related provision for taxes or tax benefit resulting from any
such extraordinary gain or extraordinary loss, realized by the
referent Person or any of its Subsidiaries during such period; and
(vi) in the case of a successor to such Person by consolidation,
merger or transfer of its assets, any earnings of the successor prior
to such merger, consolidation or transfer of assets.
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"Consolidated Net Worth" of any Person as of any date means
the stockholders' equity (including any preferred stock that is classified as
equity under GAAP, other than Disqualified Stock) of such Person and its
Subsidiaries (excluding any equity adjustment for foreign currency translation
for any period subsequent to the Issue Date) on a consolidated basis at such
date, as determined in accordance with GAAP, less all write-ups subsequent to
the Issue Date in the book value of any asset owned by such Person or any of its
Subsidiaries.
"Consolidated Tangible Assets" of any Person as of any date
means the total assets of such Person and its Subsidiaries (excluding any assets
that would be classified as "intangible assets" under GAAP) on a consolidated
basis at such date, as determined in accordance with GAAP, less all write-ups
subsequent to the Issue Date in the book value of any asset owned by such Person
or any of its Subsidiaries.
"Corporate Trust Office" means the office of the Trustee at
which at any particular time its corporate trust business shall be principally
administered, which office at the date of execution of this Indenture is located
at 000 Xxxxxxx Xxxxxx, Xxxxx 21 West, New York, New York 10286, Attention:
Corporate Trust Administration, or such other address as the Trustee may
designate from time to time by notice to the Holders and the Company, or the
principal corporate trust office of any successor Trustee (or such other address
as a successor Trustee may designate from time to time by notice to the Holders
and the Company).
"Credit Agreements" means (i) the Credit Agreement dated as of
June 23, 1998 by and among the Company, as borrower, Nationsbank, National
Association, as Administrative Agent and Arranger, X.X. Xxxxxx Securities Inc.,
Deutsche Bank AG and Scotiabanc, Inc., as Syndication Agents and Co-Arrangers,
and the other lenders party thereto from time to time, together with the related
documents thereto, including, without limitation, any security documents, if
any, and all exhibits and schedules thereto and any agreement or agreements
relating to any extension, refunding, refinancing, successor or replacement
facility, whether or not with the same lender, and whether or not the principal
amount or amount of letters of credit outstanding thereunder or the interest
rate payable in respect thereof shall be thereby increased, in each case as
amended and in effect from time to time and (ii) the New Credit Agreement.
"Default" means any event, act or condition that is, or after
notice or the passage of time or both would be, an Event of Default.
"Depositary" means, with respect to the Notes issued in the
form of one or more Global Notes, The Depository Trust Company or another Person
designated as Depositary by the Company, which Person must be a clearing agency
registered under the Exchange Act.
"Designated Senior Indebtedness" means (i) the Bank Debt,
without regard to the amounts outstanding thereunder, and (ii) any Senior
Indebtedness which, at the time of determination, has an aggregate principal
amount outstanding of at least $20,000,000 and is specifically designated in the
instrument evidencing such Senior Indebtedness as "Designated Senior
Indebtedness" by the Company.
"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), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
is redeemable at the option of the holder thereof, in whole or in part, on or
prior to the Stated Maturity date of the Notes.
"EBITDA Coverage Ratio" with respect to any period means the
ratio of (i) Consolidated EBITDA of the Company to (ii) the aggregate amount of
Consolidated Interest Expense of the Company for such period; provided, however,
that if any calculation of the Company's EBITDA Coverage Ratio requires the use
of
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any quarter prior to the Issue Date, such calculation shall be made on a pro
forma basis, giving effect to the issuance of the Notes and the use of the net
proceeds therefrom as if the same had occurred at the beginning of the
four-quarter period used to make such calculation; and provided further that if
any such calculation requires the use of any quarter prior to the date that any
Asset Sale was consummated, or that any Indebtedness was incurred, or that any
acquisition of a hospital or other healthcare facility or any assets purchased
outside the ordinary course of business was effected, by the Company or any of
its Subsidiaries, such calculation shall be made on a pro forma basis, giving
effect to each such Asset Sale, incurrence of Indebtedness or acquisition, as
the case may be, and the use of any proceeds therefrom, as if the same had
occurred at the beginning of the four-quarter period used to make such
calculation.
"Eligible Investments" of any Person means Investments of such
Person in:
(i) direct obligations of, or obligations the payment of which is
guaranteed by, the United States of America or an interest in any
trust or fund that invests solely in such obligations or repurchase
agreements, properly secured, with respect to such obligations;
(ii) direct obligations of agencies or instrumentalities of the
United States of America having a rating of A or higher by Standard &
Poor's Corporation or A2 or higher by Xxxxx'x Investors Service,
Inc.;
(iii) a certificate of deposit issued by, or other interest-bearing
deposits with, a bank having its principal place of business in the
United States of America and having equity capital of not less than
$250,000,000;
(iv) a certificate of deposit by, or other interest-bearing
deposits with, any other bank organized under the laws of the United
States of America or any state thereof, provided that such deposit is
either (a) insured by the Federal Deposit Insurance Corporation or
(b) properly secured by such bank by pledging direct obligations of
the United States of America having a market value of not less than
the face amount of such deposits;
(v) prime commercial paper maturing within 270 days of the
acquisition thereof and, at the time of acquisition, having a rating
of A-1 or higher by Standard & Poor's Corporation, or P-1 or higher
by Xxxxx'x Investors Service, Inc.; or
(vi) eligible banker's acceptances, repurchase agreements and
tax-exempt municipal bonds having a maturity of less than one year,
in each case having a rating, or that is the full recourse obligation
of a person whose senior debt is rated A or higher by Standard &
Poor's Corporation or A2 or higher by Xxxxx'x Investors Service, Inc.
"Equity Offering" means a primary offering of Capital Stock of
the Company (other than Disqualified Stock or Preferred Stock) pursuant to a
registration statement filed with the Commission in accordance with the
Securities Act and declared effective by the staff of the Commission.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended.
"Exchange Notes" means the Series B 10-3/4% Senior
Subordinated Notes due 2008 (the terms of which are identical to the Initial
Notes except that, unless any Exchange Notes shall be issued as Private Exchange
Notes (as defined in the Registration Rights Agreement), the Exchange Notes
shall be registered under the Securities Act, and shall not contain the
restrictive legend on the face of the form of the Initial Notes), to be
-6-
issued in exchange for the Initial Notes pursuant to the registered Exchange
Offer and a Private Exchange (as defined in the Registration Rights Agreement).
"Exchange Offer" means the registration by the Company under
the Securities Act pursuant to a registration statement of the offer by the
Company to each Holder of the Initial Notes to exchange all the Initial Notes
held by such Holder for the Exchange Notes in an aggregate principal amount
equal to the aggregate principal amount of the Initial Notes held by such
Holder, all in accordance with the terms and conditions of the Registration
Rights Agreement.
"Existing Indebtedness" means all of the Indebtedness of the
Company and its Subsidiaries that is outstanding on the Issue Date.
"Fair Market Value" of any asset or items means the fair
market value of such asset or items as determined in good faith by the Board of
Directors and evidenced by a resolution of the Board of Directors.
"GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, as from time to time in effect.
"guarantee" means, as applied to any obligation, (a) a
guarantee (other than by endorsement or negotiable instruments for collection in
the ordinary course of business), direct or indirect, in any manner, of any part
of all of such obligation and (b) an agreement, direct or indirect, contingent
or otherwise, the practical effect of which is to assure in any way the payment
or performance (or payment of damages in the event of non-performance) of all or
any part of such obligation, including, without limiting the foregoing, the
payment of amounts drawn down under letters of credit.
"Hedging Obligations" of any Person means the obligations of
such Person pursuant to any interest rate swap agreement, foreign currency
exchange agreement, interest rate collar agreement, option or futures contract
or other similar agreement or arrangement relating to interest rates or foreign
exchange rates.
"Holder" means a Person in whose name a Note is registered on
the Registrar's books or records.
"Indebtedness" of any Person at any date means, without
duplication: (i) all indebtedness of such Person for borrowed money (whether or
not the recourse of the lender is to the whole of the assets of such Person or
only to a portion thereof); (ii) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments; (iii) all obligations of
such Person in respect of letters of credit or other similar instruments (or
reimbursement obligations with respect thereto); (iv) all obligations of such
Person with respect to Hedging Obligations (other than those that fix the
interest rate on variable rate indebtedness otherwise permitted by this
Indenture or that protect the Company and/or its Subsidiaries against changes in
foreign exchange rates); (v) all obligations of such Person to pay the deferred
and unpaid purchase price of property or services, except trade payables and
accrued expenses incurred in the ordinary course of business; (vi) all
Capitalized Lease Obligations of such Person; (vii) all Indebtedness of others
secured by a Lien on any asset of such Person, whether or not such Indebtedness
is assumed by such Person; (viii) all Indebtedness of others guaranteed by such
Person to the extent of such guarantee; (ix) all Attributable Indebtedness; and
(x) all Disqualified Stock of such Person and its Subsidiaries and all other
Preferred Stock of Subsidiaries of such Person valued at the greater of (a) the
voluntary or involuntary liquidation preference of such Disqualified Stock
-7-
or such Preferred Stock, as the case may be, and (b) the aggregate amount
payable upon purchase, redemption, defeasance or payment of such Disqualified
Stock or such Preferred Stock, as the case may be. The amount of Indebtedness of
any Person at any date shall be the outstanding balance at such date of all
unconditional obligations plus past due interest as described above, the maximum
liability of such Person for any such contingent obligations at such date and,
in the case of clause (vii), the amount of the Indebtedness secured.
"Indenture" means this Indenture as amended, restated or
supplemented from time to time.
"Initial Notes" means the Series A 10-3/4% Senior Subordinated
Notes due 2008 of the Company issued on the Issue Date and authenticated and
delivered under this Indenture pursuant to Section 2.02 of this Indenture and
any other notes (other than Exchange Notes) issued after the Issue Date in
accordance with clause (iii) of the fourth paragraph of Section 2.02.
"Initial Purchasers" refers to UBS Warburg LLC, Deutsche Bank
Securities Inc., Chase Securities Inc. and First Union Securities, Inc.
"Interest Expense" of any Person for any period means the
aggregate amount of interest which, in accordance with GAAP, would be set
opposite the caption "interest expense" or any like caption on an income
statement for such Person (including, without limitation or duplication, imputed
interest included in Capitalized Lease Obligations, all commissions, discounts
and other fees and charges owed with respect to letters of credit and bankers'
acceptance financing, the net costs associated with Hedging Obligations,
amortization of financing fees and expenses, the interest portion of any
deferred payment obligation, amortization of discount and all other non-cash
interest expense other than interest amortized to cost of sales) plus the
aggregate amount, if any, by which such interest expense was reduced as a result
of the amortization of deferred debt restructuring credits for such period.
"Interest Payment Date" means the Stated Maturity of an
installment of interest on the Notes as specified in the forms of Note attached
hereto as Exhibits A and B.
"Investments" of any Person means: (i) all investments by such
Person in any other Person in the form of loans, advances or capital
contributions (excluding commission, travel and similar advances to officers and
employees made in the ordinary course of business); (ii) all guarantees of
Indebtedness or other obligations of any other Person by such Person; (iii) all
purchases (or other acquisitions for consideration) by such Person of
Indebtedness, Capital Stock or other securities of any other Person; and (iv)
all other items that would be classified as investments (including, without
limitation, purchases of assets outside the ordinary course of business) on a
balance sheet of such Person prepared in accordance with GAAP.
"Issue Date" means September 25, 2000, the date the Initial
Notes are initially issued.
"Joint Venture" means any Person at least a majority of whose
revenues result from healthcare related business of facilities.
"Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or other similar encumbrance of any kind in
respect of such asset, whether or not filed, recorded or otherwise perfected
under applicable law (including, without limitation, any conditional sale or
other title retention agreement, and any financing lease in the nature thereof,
any agreement to sell, and any filing of, or agreement to give, any financing
statement (other than notice filings not perfecting a security interest) under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction).
-8-
"Net Proceeds" with respect to any Asset Sale means (i) cash
(in U.S. dollars or freely convertible into U.S. dollars) received by the
Company or any of its Subsidiaries from such Asset Sale (including, without
limitation, cash received as consideration for the assumption or incurrence of
liabilities incurred in connection with or in anticipation of such Asset Sale),
after (a) provision for all income or other taxes measured by or resulting from
such Asset Sale or the transfer of the proceeds of such Asset Sale to the
Company or any of its Subsidiaries, (b) payment of all commissions and other
fees and expenses related to such Asset Sale and (c) deduction of an appropriate
amount to be provided by the Company or any of its Subsidiaries as a reserve, in
accordance with GAAP, against any liabilities associated with the assets sold or
otherwise disposed of in such Asset Sale and retained by the Company or any of
its Subsidiaries after such Asset Sale (including, without limitation, pension
and other post-employment benefit liabilities and liabilities related to
environmental matters) or against any indemnification obligations associated
with the sale or other disposition of the assets sold or otherwise disposed of
in such Asset Sale and (ii) all non-cash consideration received by the Company
or any of its Subsidiaries from such Asset Sales upon the liquidation or
conversion of such consideration into cash.
"New Credit Agreement" means the $400,000,000 senior credit
facility proposed to be entered into by the Company, together with the related
documents thereto, including, without limitation, any security documents, if
any, and all exhibits and schedules thereto and any agreement or agreements
relating to any extension, refunding, refinancing, successor or replacement
facility, whether or not with the same lender, and whether or not the principal
amount or amount of letters of credit outstanding thereunder or the interest
rate payable in respect thereof shall be thereby increased, in each case as
amended and in effect from time to time.
"Notes" means the Initial Notes, the Exchange Notes and any
other notes issued after the Issue Date in accordance with clause (iii) of the
fourth paragraph of Section 2.02 treated as a single class of securities, as
amended or supplemented from time to time in accordance with the terms hereof,
that are issued pursuant to this Indenture.
"Officer" means, with respect to any Person, the Chairman of
the Board, the Chief Executive Officer, the Chief Financial Officer, Chief
Accounting Officer, Treasurer, President, any Vice President, secretary,
assistant secretary, director or other authorized signatory of such Person.
"Officers' Certificate" means a certificate signed by the
Chairman of the Board, any Vice Chairman of the Board, the Chief Executive
Officer, the President or any Vice President and by the Treasurer, any Assistant
Treasurer, the Secretary or any Assistant Secretary of the Company in their
official (and not individual) capacities; provided, however, that every
Officers' Certificate with respect to the compliance with a condition precedent
to the taking of any action under this Indenture shall include (i) a statement
that the officers making or giving such Officers' Certificate have read such
condition and any definitions or other provisions contained in this Indenture
relating thereto and (ii) a statement as to whether, in the opinion of such
officers, such condition has been complied with.
"Opinion of Counsel" means a written opinion from legal
counsel (such counsel may be an employee of or counsel to the Company or the
Trustee) that complies with the requirements of this Indenture.
"Permitted Investments" means: (i) capital contributions,
advances or loans to the Company by any Subsidiary or by the Company or any of
its Subsidiaries to a Subsidiary of the Company; (ii) the acquisition and
holding by the Company and each of its Subsidiaries of receivables owing to the
Company and such Subsidiary, if created or acquired in the ordinary course of
business and payable or dischargeable in accordance with customary trade terms;
(iii) the acquisition and holding by the Company and its Subsidiaries of cash
and Eligible Investments; (iv) Investments in any Person as a result of which
such other Person becomes a Subsidiary of the Company or is merged into or
consolidated with or transfers all or substantially all of its assets to the
-9-
Company or any of its Subsidiaries; and (v) the making of an Investment by the
Company, directly or through a Wholly Owned Subsidiary, in a Wholly Owned
Subsidiary formed solely for the purpose of insuring the healthcare business and
facilities owned or operated by the Company or a Subsidiary and any physician
employed by or on the staff of any such business or facility (the "Insurance
Subsidiary"), provided that the amount invested in such Insurance Subsidiary
does not exceed $15,000,000.
"Permitted Liens" means: (i) Liens for taxes, assessments or
governmental charges or claims that either (a) are not yet delinquent or (b) are
being contested in good faith by appropriate proceedings; (ii) statutory Liens
of landlords and carriers', warehousemen's, mechanics', suppliers',
materialmen's, repairmen's or other like Liens arising in the ordinary course of
business and with respect to amounts that either (a) are not yet delinquent or
(b) are being contested in good faith by appropriate proceedings and as to which
appropriate reserves or other provisions have been made in accordance with GAAP;
(iii) Liens (other than any Lien imposed by the Employee Retirement Income
Security Act of 1974, as amended) incurred or deposits due in the ordinary
course of business in connection with workers' compensation, unemployment
insurance and other types of social security; (iv) Liens incurred or deposits
made to secure the performance of tenders, bids, leases, statutory obligations,
surety and appeal bonds, progress payments, government contracts and other
obligations of like nature (exclusive of obligations for the payment of borrowed
money), in each case, incurred in the ordinary course of business; (v)
attachment or judgment Liens not giving rise to a Default or an Event of
Default; (vi) easements, rights-of-way, restrictions and other similar charges
or encumbrances not interfering with the ordinary conduct of the business of the
Company or any of its Subsidiaries; (vii) leases or subleases granted to others
not interfering with the ordinary conduct of the business of the Company or any
of its Subsidiaries; (viii) Liens with respect to any Acquired Indebtedness,
provided that such Liens only extend to assets that were subject to such Liens
prior to the acquisition of such assets by the Company or its Subsidiaries and,
with respect to Indebtedness other than Senior Indebtedness, not incurred in
anticipation or contemplation of such acquisition; (ix) Liens securing Senior
Indebtedness or Refinancing Indebtedness, provided, in the case of Refinancing
Indebtedness, that such Liens only extend to the assets securing the
Indebtedness being refinanced and such refinanced Indebtedness was previously
secured by such assets; (x) purchase money mortgages (including Capitalized
Lease Obligations); (xi) Liens existing on the Issue Date; (xii) Liens on assets
of any Subsidiary of the Company securing Indebtedness of such Subsidiary,
provided that such Indebtedness is permitted to be incurred by the terms of this
Indenture; (xiii) bankers' liens with respect to the right of set-off arising in
the ordinary course of business against amounts maintained in bank accounts or
certificates of deposit in the name of the Company or any Subsidiary; (xiv) the
interest of any issuer of a letter of credit in any cash or Eligible Investment
deposited with or for the benefit of such issuer as collateral for such letter
of credit, provided that the Indebtedness so collateralized is permitted to be
incurred by the terms of this Indenture; (xv) any Lien consisting of a right of
first refusal or option to purchase the Company's ownership interest in any
Subsidiary or to purchase assets of the Company or any Subsidiary of the
Company, which right of first refusal or option is entered into in the ordinary
course of business; and (xvi) the Lien granted to the Trustee pursuant to the
trust created pursuant to Article 9 hereof and any substantially equivalent Lien
granted to the respective trustees under the indentures for other debt
securities of the Company.
"Person" means any individual, corporation, partnership, joint
venture, incorporated or unincorporated association, joint-stock company, trust,
unincorporated organization or government or other agency or political
subdivision thereof or other entity of any kind.
"Preferred Stock" means with respect to any Person all Capital
Stock of such Person which has a preference in liquidation or a preference with
respect to the payment of dividends or distributions of operating profit or
cash.
"Qualified Institutional Buyer" or "QIB" shall have the
meaning specified in Rule 144A.
-10-
"Record Date" for interest payable on any Interest Payment
Date (except a date for payment of default interest) means the March 15 or
September 15 (whether or not a Business Day), as the case may be, immediately
preceding such Interest Payment Date.
"Redemption Date" when used with respect to any Note to be
redeemed means the date fixed for such redemption pursuant to this Indenture.
"Redemption Price" when used with respect to any Note to be
redeemed means the price fixed for such redemption pursuant to this Indenture.
"Refinancing Indebtedness" means Indebtedness that is applied
to refund, refinance or extend any Existing Indebtedness (other than
Indebtedness under the New Credit Agreement), provided that: (i) the Refinancing
Indebtedness is the obligation of the same Person (or if the Indebtedness being
refinanced is an obligation of one or more Subsidiaries of the Company, such
Refinancing Indebtedness may be incurred by the Company or one or more
Subsidiaries of the Company) and is subordinated to the Notes, if at all, to the
same extent as the Indebtedness being refunded, refinanced or extended; (ii) the
Refinancing Indebtedness is scheduled to mature no earlier than the Indebtedness
being refunded, refinanced or extended; (iii) the Refinancing Indebtedness has a
Weighted Average Life to Maturity at the time such Refinancing Indebtedness is
incurred that is equal to or greater than the Weighted Average Life to Maturity
of the portion of the Indebtedness being refunded, refinanced or extended; (iv)
the Refinancing Indebtedness is secured only to the extent, if at all, and by
the assets that the Indebtedness being refunded, refinanced or extended is
secured; and (v) such Refinancing Indebtedness is in an aggregate principal
amount that is equal to or less than the aggregate principal amount then
outstanding under the Indebtedness being refunded, refinanced or extended
(except for issuance costs and increases in Attributable Indebtedness due solely
to increases in the present value calculations resulting from renewals or
extensions of the terms of the underlying leases in effect on the Issue Date).
"Registration Rights Agreement" means the Registration Rights
Agreement dated as of September 25, 2000 among the Company and the Initial
Purchasers.
"Regulation S" means Regulation S promulgated under the
Securities Act.
"Representative" means the indenture trustee or other trustee,
agent or representative for an issue of Senior Indebtedness.
"Restricted Payment" means with respect to any Person: (i) the
declaration of any dividend or the making of any other payment or distribution
of cash, securities or other property or assets in respect of such Person's
Capital Stock (except that a dividend payable solely in Capital Stock (other
than Disqualified Stock) of such Person shall not constitute a Restricted
Payment); (ii) any payment on account of the purchase, redemption, retirement or
other acquisition for value of such Person's or such Person's Subsidiaries'
Capital Stock or any other payment or distribution made in respect thereof,
either directly or indirectly; (iii) any payment on account of the purchase,
redemption, retirement, defeasance or other acquisition for value, prior to any
scheduled principal payment, sinking fund payment or Stated Maturity, of
Subordinated Indebtedness of the Company or its Subsidiaries; (iv) the
incurrence, creation or assumption of any guarantee of Indebtedness of any
Affiliate (other than a Subsidiary of the Company); or (v) the making of any
Investment in any Person (other than Permitted Investments); provided, however,
that with respect to the Company and its Subsidiaries, Restricted Payments shall
not include any payment described in clause (i), (ii) or (iii) above made (1) to
the Company or any of its Wholly Owned Subsidiaries by any of the Company's
Subsidiaries or (2) by the Company to any of its Wholly Owned Subsidiaries or
(3) by any Subsidiary provided that the Company or another Subsidiary receives
its proportionate share thereof.
-11-
"Restricted Security" means any Note (or beneficial interest
therein) other than an Exchange Note (or beneficial interest therein), until
such time as: (i) such Note (or beneficial interest therein) has been
transferred pursuant to an effective registration statement under the Securities
Act; (ii) such Note is a 144A Global Note and two years have passed since the
Issue Date; (iii) such Note is a Regulation S Global Note and 40 days have
passed since the Issue Date; or (iv) the Private Placement legend therefor has
otherwise been removed pursuant to Section 2.16(e) hereof or, in the case of a
beneficial interest in a Global Note, such beneficial interest has been
exchanged for an interest in a Global Note not bearing a Private Placement
Legend.
"Rule 144A" means Rule 144A promulgated under the Securities
Act.
"Sale and Leaseback Transaction" means, with respect to any
Person, an arrangement with any bank, insurance company or other lender or
investor or to which such lender or investor is a party, providing for the
leasing by such Person or any of its Subsidiaries of any property or asset of
such Person or any of its Subsidiaries which has been or is being sold or
transferred by such Person or such Subsidiary to such lender or investor or to
any Person to whom funds have been or are to be advanced by such lender or
investor on the security of such property or asset.
"Secretary's Certificate" means a certificate signed by the
Secretary or any Assistant Secretary of the Company in his or her official (and
not individual) capacity.
"Securities Act" means the Securities Act of 1933, as amended.
"Senior Indebtedness" means the principal of and premium, if
any, and interest and other amounts due on or in connection with any
Indebtedness of the Company existing on the Issue Date or any Indebtedness of
the Company thereafter created, incurred or assumed and permitted under Section
4.11 hereof, unless, in the case of any particular Indebtedness, the instrument
creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such Indebtedness shall not be senior in right of
payment to the Notes.
"Senior Subordinated Indebtedness" means the Notes and any
other indebtedness, guarantee or obligation of the Company that (in the case of
such other Indebtedness) specifically provides that such indebtedness, guarantee
or obligation is to rank pari passu with other Senior Subordinated Indebtedness
of the Company and is not subordinated by its terms to any indebtedness,
guarantee or obligation of the Company which is not Senior Indebtedness.
"Significant Subsidiary" means a Subsidiary of the Company
which at the time of determination either (i) had tangible assets which, as of
the Company's most recent quarterly consolidated balance sheet, constituted at
least 5% of Consolidated Tangible Assets as of such date, or (ii) had revenues
for the 12-month period ending on the date of the Company's most recent
quarterly consolidated statement of income which constituted at least 5% of the
Company's total consolidated revenues for such period.
"Stated Maturity" when used with respect to any security or
any installment of interest thereon, means that date specified in such security
as the fixed date on which the principal of such security or such installment of
interest is due and payable.
"Subordinated Indebtedness" of any Person means any
Indebtedness of such Person that is subordinated in right of payment to the
Notes.
-12-
"Subsidiary" of any Person means (i) any corporation of which
Common Equity having ordinary voting power to elect a majority of the directors
of such corporation is owned by such Person directly or through one or more
other Subsidiaries of such Person and (ii) any entity other than a corporation
in which such Person, directly or indirectly, owns at least 50% of the Common
Equity of such entity and has the authority to manage such entity on a
day-to-day basis.
"Trust Indenture Act" or "TIA" means the Trust Indenture Act
of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect on the date of this
Indenture (except as provided in Section 8.03 hereof).
"Trust Officer" shall mean, when used with respect to the
Trustee, any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant treasurer,
trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the Persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such Person's knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.
"Trustee" means the party named as such in this Indenture
until a successor replaces it pursuant to this Indenture and thereafter means
the successor.
"U.S. Government Obligations" means (a) securities that are
direct obligations of the United States of America for the payment of which its
full faith and credit are pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America, the payment of which is unconditionally guaranteed as a full faith and
credit obligation by the United States of America, which, in either case, are
not callable or redeemable at the option of the issuer thereof, and shall also
include a depository receipt issued by a bank (as defined in Section 3(a)(2) of
the Securities Act) as custodian with respect to any such U.S. Government
Obligation or a specific payment of principal of or interest on any such U.S.
Government Obligation held by such custodian for the account of the holder of
such depository receipt; provided that (except as required by law) such
custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt from any amount received by the custodian in
respect of the U.S. Government Obligation or a specific payment of principal or
interest on any such U.S. Government Obligation held by such custodian for the
account of the holder of such depository receipt.
"Weighted Average Life to Maturity" means, when applied to any
Indebtedness or portion thereof at any date, the number of years obtained by
dividing (i) the then outstanding principal amount of such Indebtedness or
portion thereof (if applicable) into (ii) the sum of the products obtained by
multiplying (a) the amount of each then remaining installment, sinking fund,
serial maturity or other required payment of principal, including payment at
final maturity, in respect thereof, by (b) the number of years (calculated to
the nearest one-twelfth) that will elapse between such date and the making of
such payment.
"Wholly Owned Subsidiary" of any Person means (i) a Subsidiary
of which 100% of the Common Equity (except for director's qualifying shares or
certain minority interests owned by other Persons solely due to local law
requirements that there be more than one stockholder, but which interest is not
in excess of what is required for such purpose) is owned directly by such Person
or through one or more other Wholly Owned Subsidiaries of such Person and (ii)
any entity other than a corporation in which such Person, directly or
indirectly, owns all of the Common Equity of such entity.
-13-
Section 1.02. Other Definitions.
-----------------
The definitions of the following terms may be found in the
sections indicated as follows:
Term Defined in Section
---- ------------------
"Affiliate Transaction"................................................. 4.13
"Agent Members"......................................................... 2.15
"Asset Sale Offer"...................................................... 4.12
"Asset Sale Payment Amount"............................................. 4.12
"Asset Sale Purchase Price"............................................. 4.12
"Bankruptcy Law"........................................................ 6.01
"Business Day".......................................................... 11.07
"Change of Control Offer"............................................... 4.15
"Change of Control Payment Date"........................................ 4.15
"Change of Control Purchase Price"...................................... 4.15
"Covenant Defeasance"................................................... 9.03
"Custodian"............................................................. 6.01
"Event of Default"...................................................... 6.01
"Excess Proceeds"....................................................... 4.12
"Excess Proceeds Payment Date".......................................... 4.12
"Global Notes".......................................................... 2.01
"Legal Defeasance"...................................................... 9.02
"Legal Holiday"......................................................... 11.07
"Net Proceeds Deficiency"............................................... 4.12
"Non-payment Default"................................................... 10.03
"Other Debt"............................................................ 4.12
"Paying Agent".......................................................... 2.03
"Payment Blockage Notice"............................................... 10.03
"Payment Blockage Period"............................................... 10.03
"Payment Default"....................................................... 10.03
"Private Placement Legend".............................................. 2.17
"Registrar"............................................................. 2.03
"Regulation S Global Note".............................................. 2.01
"Resale Restriction Termination Date"................................... 2.16
"Rule 144A Global Note"................................................. 2.01
"Successor"............................................................. 5.01
Section 1.03. Incorporation by Reference of Trust Indenture Act.
-------------------------------------------------
Whenever this Indenture refers to a provision of the TIA, the
portion of such provision required to be incorporated herein in order for this
Indenture to be qualified under the TIA is incorporated by reference in and made
a part of this Indenture. Unless otherwise specified, terms used in this
Indenture that are defined by the TIA, defined in the TIA by reference to
another statute or defined by Commission rule have the meanings therein assigned
to them.
-14-
Section 1.04. Rules of Construction.
---------------------
Unless the context otherwise requires:
(1) a term has the meaning assigned to it herein, whether
defined expressly or by reference;
(2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP;
(3) "or" is not exclusive;
(4) words in the singular include the plural, and in the
plural include the singular; and
(5) words used herein implying any gender shall apply to every
gender.
ARTICLE 2
THE NOTES
Section 2.01. Dating; Incorporation of Form in Indenture.
------------------------------------------
The Initial Notes and the Trustee's certificate of
authentication shall be substantially in the form of Exhibit A, and the Exchange
Notes and the Trustee's certificate of authentication shall be substantially in
the form of Exhibit B, each of which is incorporated in and made part of this
Indenture with such appropriate insertions, substitutions and other variations
as are required or permitted by this Indenture. The Notes may have notations,
legends or endorsements required by law, stock exchange rule or usage all in a
form approved by the Company. Each Note shall be dated the date of its
authentication.
The Notes shall be issued initially in the form of two or more
permanent global notes (the "Global Notes"). Notes offered and sold (i) in
reliance on Rule 144A shall be issued initially in the form of one or more
permanent Global Notes in registered form (the "Rule 144A Global Note") and (ii)
in offshore transactions in reliance on Regulation S shall be issued initially
in the form of one or more permanent Global Notes in registered form (the
"Regulation S Global Note"), and in each case shall be deposited with the
Trustee, as custodian for the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate principal
amount of any Global Note may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary,
as hereinafter provided.
Section 2.02. Execution and Authentication; Appointment of Authenticating
Agent.
The Notes shall be executed on behalf of the Company by one or
more Officers of the Company. Such signature may be either manual or facsimile.
If an Officer whose signature is on a Note no longer holds
that office at the time the Trustee authenticates the Note, the Note shall be
valid nevertheless.
A Note shall not be valid until the Trustee manually signs the
certificate of authentication on the Note. Such signature shall be conclusive
evidence that the Note has been authenticated under this Indenture.
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The Trustee shall authenticate (i) Initial Notes for original
issue on the Issue Date in the aggregate principal amount not to exceed
$350,000,000, (ii) pursuant to the Exchange Offer, Exchange Notes from time to
time for issue only in exchange for a like principal amount of Initial Notes and
(iii) subject to compliance with Section 4.11 hereof, one or more series of
Notes for original issue after the Issue Date (such Notes to be substantially in
the form of Exhibit A or B hereto, as the case may be) in an unlimited amount
(and if in the form of Exhibit A hereto the same principal amount of Exchange
Notes in exchange therefor upon consummation of a registered exchange offer), in
each case upon written orders of the Company in the form of an Officers'
Certificate, which Officers' Certificate shall, in the case of any issuance
pursuant to clause (iii) above, certify that such issuance is in compliance with
Section 4.11 hereof. In addition, each such Officers' Certificate shall specify
the amount of Notes to be authenticated, the date on which the Notes are to be
authenticated, whether the Notes are to be Initial Notes, Exchange Notes or
Notes issued under clause (iii) of the preceding sentence and the aggregate
principal amount of Notes outstanding on the date of authentication. Such Notes
shall initially be in the form of one or more Global Notes, which (i) shall
represent, and shall be denominated in an amount equal to the aggregate
principal amount of, the Notes to be issued, (ii) shall be registered in the
name of the Depositary for such Global Security or Notes or its nominee and
(iii) shall be delivered by the Trustee to the Depositary or pursuant to the
Depository's instruction.
The Notes shall be issuable only in definitive, fully
registered form without coupons and only in minimum denominations of $1,000 and
integral multiples thereof.
The Trustee, with the approval of the Company, may appoint an
authenticating agent to authenticate Notes. Any such appointment shall be
evidenced by an instrument signed by an authorized officer of the Trustee, a
copy of which shall be furnished to the Company. 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, and shall comply with this Indenture. An authenticating agent has the
same right as an Agent to deal with the Company or an Affiliate.
Section 2.03. Registrar and Paying Agent.
--------------------------
The Company shall maintain an office or agency in the Borough
of Manhattan, The City of New York where (a) Notes may be presented or
surrendered for registration of transfer or for exchange ("Registrar"), (b)
Notes may be presented or surrendered for payment ("Paying Agent") and (c)
notices and demands in respect of Notes and this Indenture may be served. The
Registrar shall keep a register of the Notes and of their transfer and exchange.
The Registrar shall provide the Company a current copy of such register from
time to time upon request of the Company. The Company may have one or more
co-Registrars and one or more additional Paying Agents. The Company may change
any Paying Agent, Registrar or co-Registrar without notice to any Holder. The
Company may not act as Paying Agent, but may act as Registrar or co-Registrar.
The Company shall enter into an appropriate agency agreement
with any Registrar or Paying 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. The Company shall notify
the Trustee in writing of the name and address of any such Agent. If the Company
fails to maintain a Registrar or Paying Agent, or agent for service of notices
and demands, or fails to give the foregoing notice, the Company shall notify the
Trustee and the Trustee shall to the extent that it is capable act as such for
so long as such failure continues.
The Company initially appoints the Trustee as Registrar and
Paying Agent in the Borough of Manhattan, The City of New York.
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Section 2.04. Paying Agent To Hold Money in Trust.
-----------------------------------
Before 10:00 A.M. New York City time on each payment date of
the principal of and/or interest on any Notes, the Company shall deposit with
the Paying Agent a sum sufficient to pay such principal and interest so becoming
due. The Company at any time may require a Paying Agent to pay all money held by
it to the Trustee together with a complete accounting of such sums, and the
Trustee may at any time during the continuance of any Event of Default under
Section 6.01(a) or (b) hereof, upon written request to a Paying Agent, require
such Paying Agent to forthwith pay to the Trustee all sums so held in trust by
such Paying Agent together with a complete accounting of such sums. Upon doing
so, the Paying Agent shall have no further liability for the money. Funds
deposited with the Paying Agent may be invested as agreed from time to time by
the Company and the Paying Agent. All payments made hereunder shall be in U.S.
legal tender.
Section 2.05. 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 Holders. If the Trustee is not the Registrar, the Company shall
furnish to the Trustee at least five Business Days before each Interest Payment
Date and the Stated Maturity Date and at such other times as the Trustee may
reasonably request in writing, a list in such form and as of such date as the
Trustee may require of the names and addresses of Holders.
Section 2.06. Transfer and Exchange.
---------------------
Subject to the provisions of Section 2.15 and 2.16 hereof,
when a Note is presented to the Registrar with a request to register the
transfer thereof, the Registrar shall register the transfer as requested if the
requirements of this Indenture are met and, when Notes are presented to the
Registrar with a written request to exchange them for an equal principal amount
of Notes, the Registrar shall make the exchange as requested; provided that
every Note presented or surrendered for registration of transfer or exchange be
duly endorsed, or be accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar duly executed by the Holder
thereof or his attorney duly authorized in writing. To permit transfers and
exchanges, upon surrender of any Note for registration of transfer or exchange
at the office or agency maintained pursuant to Section 2.03 hereof, the Company
shall execute and the Trustee shall authenticate one or more new Notes at the
Registrar's request. Any exchange or transfer shall be without charge, except
that the Company may require payment by the Holder of a sum sufficient to cover
any tax or other governmental charge that may be imposed in relation to a
transfer or exchange other than any exchange pursuant to Section 2.10, 3.06,
4.12, 4.15 or 8.05 hereof.
The Registrar shall not be required to register the transfer
of or exchange any Note (A) selected for redemption in whole or in part pursuant
to Article 3, except the unredeemed portion of any Note being redeemed in part,
(B) for a period beginning 15 days before the mailing of a notice of redemption
of Notes and ending on the date of such mailing or (C) between a Record Date and
the next succeeding Interest Payment Date.
None of the Company or the Trustee or the Registrar shall be
liable for any delay by the Depositary in identifying the beneficial owners of
the Notes, and each such person may conclusively rely on, and shall be protected
in relying on, instructions from the Depositary for all purposes (including with
respect to the registration and delivery, and the respective principal amounts,
of any Notes to be issued).
Prior to the due presentation for registration of transfer of
any Note, the Company, the Trustee, the Paying Agent, the Registrar or any
co-Registrar may deem and treat the Person in whose name a Note is registered as
the absolute owner of such Note for the purpose of receiving payment of
principal of and interest, if
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any, on such Note and for all other purposes whatsoever, whether or not such
Note is overdue, and none of the Company, the Trustee, the Paying Agent, the
Registrar or any co-Registrar shall be affected by notice to the contrary. So
long as the Depositary or its nominee is the Holder of a Global Note, the
Depositary or such nominee, as the case may be, will be considered the sole
owner or Holder of the Notes represented by such Global Note for all purposes
hereunder and under the Notes. Any Holder of a Global Note and each Person with
an interest in such Global Note, shall, by acceptance of such Global Note or
such interest agree that transfers of the beneficial interests in such Global
Note may be effected only through a book entry system maintained by the Holder
of such Global Note (or its agent) and that ownership of a beneficial interest
in such Global Note shall be required to be reflected in a book entry.
Any Note issued upon any transfer or exchange pursuant to this
Section 2.06 will evidence the same debt and will be entitled to the same
benefits and, unless otherwise provided for in this Indenture, subject to the
same restrictions, under this Indenture as the Note or Notes surrendered upon
such transfer or exchange.
Section 2.07. Replacement Notes.
-----------------
If a mutilated Note is surrendered to the Trustee or if the
Holder of a Note claims that a Note has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement
Note if the Trustee's requirements for replacement are met. An indemnity bond
may be required by the Company or the Trustee that is sufficient in the judgment
of the Company and the Trustee to protect the Company, the Trustee or any Agent
from any loss which any of them may suffer if a Note is replaced and evidence to
their satisfaction of apparent loss, destruction or theft of such Note may be
required by the Company, the Trustee or any Agent. The Company and the Trustee
may charge for their reasonable out-of-pocket expenses (including reasonable
attorneys' fees and expenses and any applicable taxes) in replacing a Note
pursuant to this Section 2.07. In the event any such mutilated, lost, destroyed
or wrongfully taken Note has become due and payable, the Company in its
discretion may pay such Note instead of issuing a new Note in replacement
thereof. If after the delivery of such new Note, a bona fide purchaser of the
original Note in lieu of which such new Note was issued presents for payment
such original Note, the Company and the Trustee shall be entitled to recover
such new Note from the person to whom it was delivered or any transferee
thereof, except a bona fide purchaser, and shall be entitled to recover upon the
security or indemnity provided therefor to the extent of any loss, damage, cost
or expense incurred by the Company or the Trustee in connection therewith.
Every replacement Note is an additional obligation of the
Company.
Section 2.08. Outstanding Notes.
-----------------
Notes outstanding at any time are all Notes authenticated by
the Trustee except for those canceled by it, those delivered to it for
cancellation and those described in this Section 2.08 as not outstanding.
A Note replaced pursuant to Section 2.07 hereof (other than a
mutilated Note surrendered for replacement) ceases to be outstanding unless and
until the Trustee receives proof satisfactory to it that such replaced Note is
held by a protected purchaser.
If a Paying Agent holds on a Redemption Date or at Stated
Maturity U.S. legal tender sufficient to pay the principal of, premium, if any,
and accrued interest on Notes (or portions thereof) payable on that date, then
on and after that date, such Notes (or portions thereof) cease to be outstanding
and interest on them ceases to accrue.
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Section 2.09. Treasury Notes.
--------------
In determining whether the Holders of the required principal
amount of Notes have concurred in any direction, waiver, consent or notice,
Notes owned by the Company or any of its Affiliates shall be considered as
though they are 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 which a Trust Officer of the Trustee actually knows are
so owned shall be so considered. The Company shall notify the Trustee, in
writing, when it or any of its Affiliates repurchases or otherwise acquires
Notes and of the aggregate principal amount of such Notes so repurchased or
otherwise acquired.
Section 2.10. Temporary Notes.
---------------
Until definitive Notes are ready for delivery, the Company may
prepare and the Trustee shall authenticate temporary Notes. Temporary Notes
shall be substantially in the form, and shall carry all rights and restrictions,
of definitive Notes but may have variations that the Company considers
appropriate for temporary Notes. Without unreasonable delay, the Company shall
prepare and the Trustee shall authenticate definitive Notes in exchange for
temporary Notes upon surrender of such temporary Notes at the office or agency
maintained pursuant to Section 2.03 hereof.
Section 2.11. Cancellation.
------------
The Company at any time may deliver Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Notes surrendered to them for transfer, exchange or payment. The Trustee
shall cancel all Notes surrendered for transfer, exchange, payment or
cancellation and, unless the Company instructs the Trustee in writing to deliver
the Notes to the Company, shall dispose of such Notes in accordance with its
normal practice. Subject to Section 2.07 hereof, the Company may not issue new
Notes to replace Notes in respect of which it has previously paid all principal,
premium, if any, and interest accrued thereon, or delivered to the Trustee for
cancellation. The Trustee shall provide the Company with a list of all Notes
that have been canceled from time to time as requested in writing by the
Company. If the Company shall acquire any of the Notes, such acquisition shall
not operate as a redemption or satisfaction of the Indebtedness represented by
such Notes unless and until the same are surrendered to the Trustee for
cancellation pursuant to this Section 2.07.
Section 2.12. Defaulted Interest.
------------------
If the Company defaults in a payment of principal or interest
on the Notes, it shall pay interest on overdue principal and on overdue
installments of interest (without regard to any applicable grace periods) from
time to time on demand at the rate per annum borne by the Notes, to the extent
lawful.
If the Company defaults in a payment of interest on the Notes,
it shall pay the defaulted interest, plus (to the extent lawful) any interest
payable on the defaulted interest, to the Persons who are Holders on a
subsequent special Record Date, which date shall be the fifteenth day next
preceding the date fixed by the Company for the payment of defaulted interest or
the next succeeding Business Day if such date is not a Business Day. At least 15
days before the subsequent special Record Date, the Company shall mail to each
Holder, as of a recent date selected by the Company, with a copy to the Trustee,
a notice that states the subsequent special Record Date, the payment date and
the amount of defaulted interest, and interest payable on such defaulted
interest, if any, to be paid.
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Notwithstanding the foregoing, any interest which is paid
prior to the expiration of the 30-day period set forth in Section 6.01(a) hereof
shall be paid to Holders as of the Record Date for the Interest Payment Date for
which interest has not been paid.
Section 2.13. Deposit of Moneys; Payments.
---------------------------
Prior to 10:00 A.M., New York City time, on the relevant
Interest Payment Date, Stated Maturity date, Redemption Date, Change of Control
Purchase Date and Excess Proceeds Payment Date, the Company shall have deposited
with the Paying Agent in immediately available funds money sufficient to make
all cash payments due on such Interest Payment Date, Stated Maturity date,
Redemption Date, Change of Control Purchase Date and Excess Proceeds Payment
Date, as the case may be (or if any such date is not a Business Day, the first
preceding Business Day). The principal and interest on Global Notes shall be
payable to the Depositary or its nominee, as the case may be, as the sole
registered owner and the sole holder of the Global Notes represented thereby.
The principal and interest on Certificated Notes, if any, shall be payable at
the office of the Paying Agents. The Paying Agents shall pay the Company any
excess cash remaining on deposit after all payments have been made with respect
to a given Interest Payment Date, Stated Maturity date, Redemption Date, Change
of Control Purchase Date or Excess Proceeds Payment Date, as the case may be.
All payments made hereunder shall be in U.S. legal tender.
Section 2.14. "CUSIP" Number.
-------------
The Company in issuing the Notes may use "CUSIP" number(s) and
the Trustee shall use the "CUSIP" numbers(s) in notices of redemption or
exchange as a convenience to Holders; provided that neither the Company nor the
Trustee shall have any responsibility for any defect in the "CUSIP" number that
appears on any Note, check, advice or payment or redemption notice, and any such
notice may state that no representation is made as to the correctness or
accuracy of the "CUSIP" number(s) printed in the notice or on the Notes, and
that reliance may be placed only on the other identification numbers printed on
the Notes and any such redemption or exchange shall not be affected by any
defect in or omission of such number(s). The Company shall promptly notify the
Trustee of any changes in "CUSIP" numbers.
Section 2.15. Book-Entry Provisions for Global Notes.
--------------------------------------
(a) The Global Notes initially shall (i) be registered in
the name of the Depositary 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 2.17 hereof.
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 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 the 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.
(b) Interests of beneficial owners in the Global Notes
may only be exchanged for Certificated Notes if (i) the Depositary (x) notifies
the Company that it is unwilling or unable to continue as Depositary for any
Global Note and the Company fails to appoint a successor depositary within 60
days or
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(y) has ceased to be a clearing company registered under the Exchange Act or
(ii) at the request of a Holder, if there shall have occurred and be continuing
an Event of Default with respect to the Notes.
(c) In connection with the transfer of Global Notes as an
entirety to beneficial owners pursuant to paragraph (b), the Global Notes shall
be deemed to be surrendered to the Trustee for cancellation, and the Company
shall execute, and the Trustee shall, upon receipt of an authentication order
from the Company in the form of an Officers' Certificate, authenticate and
deliver, to each beneficial owner identified by the Depositary in writing in
exchange for its beneficial interest in the Global Notes, an equal aggregate
principal amount of Certificated Notes of authorized denominations.
(d) Any Certificated Note constituting a Restricted
Security delivered in exchange for an interest in a Global Note pursuant to
paragraphs (b) and (c), except as otherwise provided by Section 2.16 hereof,
shall bear the Private Placement Legend.
(e) The Holder of any Global Note may grant proxies and
otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Notes.
Section 2.16. Registration of Transfers and Exchanges.
---------------------------------------
(a) Transfer and Exchange of Certificated Notes. When
Certificated Notes are presented to the Registrar or co-Registrar with a
request:
(i) to register the transfer of the Certificated
Notes; or
(ii) to exchange such Certificated Notes for an equal
principal amount of Certificated Notes of other authorized
denominations,
the Registrar or co-Registrar shall register the transfer or make the exchange
as requested if the requirements under this Indenture as set forth in this
Section 2.16 for such transactions are met; provided, however, that the
Certificated Notes presented or surrendered for registration of transfer or
exchange:
(I) shall be duly endorsed or accompanied by a written
instrument of transfer in form satisfactory to the Registrar or
co-Registrar, duly executed by the Holder thereof or his attorney duly
authorized in writing; and
(II) in the case of Certificated Notes the offer and sale of
which have not been registered under the Securities Act and are
presented for transfer or exchange prior to (x) the date which is two
years after the later of the date of original issue and the last date
on which the Company or any Affiliate of the Company was the owner of
such Note, or any predecessor thereto and (y) such later date, if any,
as may be required by any subsequent change in applicable law (the
"Resale Restriction Termination Date"), such Certificated Notes shall
be accompanied, in the sole discretion of the Company, by the following
additional information and documents, as applicable:
(A) if such Certificated Note is being delivered to
the Registrar or co-Registrar by a Holder for registration in
the name of such Holder, without transfer, a certification to
that effect (substantially in the form of Exhibit C hereto);
or
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(B) if such Certificated Note is being transferred to
a Qualified Institutional Buyer in accordance with Rule 144A,
a certification to that effect (substantially in the form of
Exhibit C hereto); or
(C) if such Certificated Note is being transferred in
reliance on Regulation S, delivery of a certification to that
effect (substantially in the form of Exhibit C hereto) and a
transferor certificate for Regulation S transfers
(substantially in the form of Exhibit E hereto); or
(D) if such Certificated Note is being transferred in
reliance on Rule 144 under the Securities Act, delivery of a
certification to that effect (substantially in the form of
Exhibit C hereto) and, at the option of the Company, an
Opinion of Counsel reasonably satisfactory to the Company to
the effect that such transfer is in compliance with the
Securities Act; or
(E) if such Certificated Note is being transferred in
reliance on another exemption from the registration
requirements of the Securities Act, a certification to that
effect (substantially in the form of Exhibit C hereto) and, at
the option of the Company, an Opinion of Counsel reasonably
satisfactory to the Company to the effect that such transfer
is in compliance with the Securities Act.
(b) Transfer and Exchange of Global Notes. The transfer and
exchange of Global Notes or beneficial interests therein shall be effected
through the Depositary in accordance with this Indenture (including the
restrictions on transfer set forth herein) and the procedures of the Depositary
therefor. Upon receipt by the Registrar or co-Registrar of written instructions,
or such other instruction as is customary for the Depositary, from the
Depositary or its nominee, requesting the registration of transfer of an
interest in a Rule 144A Global Note or Regulation S Global Note, as the case may
be, together with, in the case of a transfer from a Rule 144A Global Note to a
Regulation S Global Note, certificates in the form of Exhibits C and D and, in
the case of a transfer from a Regulation S Global Note to a Rule 144A Global
Note, a certificate in the form of Exhibit C, together with the applicable
Global Notes (or, if the applicable type of Global Note required to represent
the interest as requested to be transferred is not then outstanding, only the
Global Note representing the interest being transferred), the Registrar or
Co-Registrar shall cancel such Global Notes (or Global Note) and the Company
shall issue and the Trustee shall, upon receipt of an authentication order in
the form of an Officers' Certificate in accordance with Section 2.02 hereof,
authenticate new Global Notes of the types so canceled (or the type so canceled
and applicable type required to represent the interest as requested to be
transferred) reflecting the applicable increase and decrease of the principal
amount of Notes represented by such types of Global Notes, giving effect to such
transfer. If the applicable type of Global Note required to represent the
interest as requested to be transferred is not outstanding at the time of such
request, the Company shall issue and the Trustee shall, upon written
instructions from the Company in accordance with Section 2.02 hereof,
authenticate a new Global Note of such type in principal amount equal to the
principal amount of the interest requested to be transferred.
(c) Other Transfers. Any transfer of Restricted Notes not
described above (other than a transfer of a beneficial interest in a Global Note
that does not involve an exchange of such interest for a Certificated Note or a
beneficial interest in another Global Note, which must be effected in accordance
with applicable law and the rules and procedures of the Depositary, but is not
subject to any procedure required by this Indenture) shall be made only upon
receipt by the Registrar of such Opinions of Counsel, certificates and/or other
information reasonably required by and satisfactory to it in order to ensure
compliance with the Securities Act.
-22-
(d) Restrictions on Transfer and Exchange of Global Notes.
Notwithstanding any other provisions of this Indenture, a Global Note may not be
transferred as a whole except 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.
(e) Private Placement Legend. Upon the transfer, exchange or
replacement of Notes not bearing the Private Placement Legend, the Registrar or
co-Registrar shall deliver Notes that do not bear the Private Placement Legend.
Upon the transfer, exchange or replacement of Notes bearing the Private
Placement Legend, the Registrar or co-Registrar shall deliver only Notes that
bear the Private Placement Legend unless, and the Trustee is hereby authorized
to deliver Notes without the Private Placement Legend if (i) the Resale
Restriction Termination Date shall have occurred, (ii) there is delivered to the
Trustee an Opinion of Counsel reasonably satisfactory to the Company and the
Trustee to the effect that neither such legend nor the related restrictions on
transfer are required in order to maintain compliance with the provisions of the
Securities Act or (iii) such Note has been sold pursuant to an effective
registration statement under the Securities Act.
(f) General. By its acceptance of any Note bearing the Private
Placement Legend, each Holder of such a Note acknowledges the restrictions on
transfer of such Note set forth in this Indenture and in the Private Placement
Legend and agrees that it will transfer such Note only as provided in this
Indenture.
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 interest 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.
The Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.15 hereof or this
Section 2.16. The Company shall have the right to inspect and make copies of all
such letters, notices or other written communications at any reasonable time
upon the giving of reasonable written notice to the Registrar.
Section 2.17. Restrictive Legends.
-------------------
Each Note that constitutes a Restricted Security shall bear
the following legend (the "Private Placement Legend") on the face thereof until
September 25, 2002, unless otherwise agreed to by the Company and the Holder
thereof:
THE NOTE (OR ITS PREDECESSORS) EVIDENCED HEREBY WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER XXXXXXX 0 XX XXX
XXXXXX XXXXXX SECURITIES ACT OF 1933, AS AMENDED, AND THE NOTE
EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
EACH PURCHASER OF THE NOTE EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE
SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER OR ANOTHER
EXEMPTION UNDER THE SECURITIES ACT. THE HOLDER OF THE NOTE EVIDENCED
HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) SUCH NOTE MAY BE
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (i)(a) TO A PERSON WHO
THE
-23-
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT), PURCHASING FOR ITS OWN
ACCOUNT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER
THE SECURITIES ACT, (b) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144 OF THE SECURITIES ACT, (c) OUTSIDE THE UNITED STATES TO A
FOREIGN PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 OF
REGULATION S UNDER THE SECURITIES ACT OR (d) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
PROVIDED THAT IN THE CASE OF A TRANSFER PURSUANT TO THIS CLAUSE (d)
SUCH TRANSFER IS SUBJECT TO THE RECEIPT BY THE TRUSTEE (AND THE
COMPANY, IF IT SO REQUESTS) OF A CERTIFICATION OF THE TRANSFEROR AND AN
OPINION OF COUNSEL TO THE EFFECT THAT SUCH TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT, (ii) TO THE COMPANY OR (iii) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND, IN EACH
CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF
THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND THE
INDENTURE GOVERNING THE NOTES AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE
NOTE EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A)
ABOVE.
Each Global Note shall also bear the following legend:
THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. THIS NOTE IS
NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER
THAN THE DEPOSITARY OR ITS NOMINEE EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A
TRANSFER OF THIS NOTE 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) MAY BE REGISTERED EXCEPT IN THE
LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.
TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, AND TRANSFERS OF INTERESTS IN THIS GLOBAL NOTE
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN SECTION 2.16 OF THE INDENTURE.
ARTICLE 3
REDEMPTION
Section 3.01. Notices to Trustee.
------------------
If the Company elects to redeem Notes pursuant to paragraph 6
of the Notes, at least 60 days prior to the Redemption Date or during such other
period as the Trustee may agree to, the Company shall notify the Trustee in
writing of the Redemption Date, the principal amount of Notes to be redeemed and
the
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Redemption Price, and deliver to the Trustee an Officers' Certificate stating
that such redemption will comply with the conditions contained herein and in the
Notes, as appropriate.
Section 3.02. Selection of Notes To Be Redeemed.
---------------------------------
(a) In the event that less than all of the Notes are to be
redeemed at any time, selection of the Notes to be redeemed shall be made by the
Trustee on a pro rata basis, by lot or by such method as the Trustee shall deem
fair and equitable; provided, however, that no Notes of a principal amount of
$1,000 or less shall be redeemed in part; provided, further, that if a partial
redemption is made with the proceeds of any Equity Offering, selection of the
Notes or portions thereof for redemption shall be made by the Trustee only on a
pro rata basis or on as nearly a pro rata basis as is practicable (subject to
the procedures of the Depositary), unless such method is otherwise prohibited.
The Trustee shall make the selection from the outstanding Notes not previously
called for redemption. The Trustee shall promptly notify the Company in writing
of the Notes selected for redemption and, in the case of any Notes selected for
partial redemption, the principal amount of the Notes to be redeemed. In the
event of a partial redemption by lot, the Trustee shall select the particular
Notes to be redeemed not less than 30 nor more than 60 days prior to the
relevant Redemption Date from the Outstanding Notes not previously called for
redemption. The Company may redeem Notes in denominations of $1,000 only in
whole. The Trustee may select for redemption portions (equal to $1,000 or any
integral multiple of $1,000) of the principal of Notes that have denominations
larger than $1,000. A new Note in a principal amount equal to the unredeemed
portion thereof will be issued in the name of the Holder thereof upon delivery
of the original Note to the Paying Agent and cancellation of the original Note.
On and after the Redemption Date, interest will cease to accrue on Notes or
portions thereof called for redemption as long as the Company has made a deposit
with the Paying Agent in U.S. legal tender in satisfaction of the applicable
Redemption Price pursuant to this Indenture.
(b) For all purposes of this Indenture, unless the context
otherwise requires, all provisions relating to redemption of Notes shall relate,
in the case of any Note redeemed or to be redeemed only in part, to the portion
of the principal amount of that Note which has been or is to be redeemed.
Section 3.03. Notice of Redemption.
--------------------
Notice of redemption shall be mailed by first class mail at
least 30 but not more than 60 calendar days before the Redemption Date to each
Holder of Notes to be redeemed at the registered address of such Holder. 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. If the Company elects to have the Trustee give notice of redemption,
the Trustee shall give notice in the name of the Company and at the Company's
expense; provided, however, that the Company shall furnish the Trustee all
information required to be contained in the notice.
The notice shall identify the Notes to be redeemed and shall
state:
(1) the Redemption Date;
(2) the Redemption Price and the amount of accrued interest,
if any, to be paid;
(3) whether or not the Company is redeeming all outstanding
Notes and if any Note is being redeemed in part, the portion of the
principal amount (equal to $1,000 in principal amount or any integral
multiple thereof) of such Note to be redeemed and that, on and after
the Redemption Date, upon
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surrender of such Note, a new Note or Notes in principal amount equal
to the unredeemed portion thereof will be issued;
(4) the name, address and telephone number of the Paying
Agent;
(5) that Notes called for redemption must be surrendered to
the Paying Agent at the address specified in such notice to collect the
Redemption Price plus accrued interest, if any;
(6) that, unless the Company defaults in making the redemption
payment, interest on Notes called for redemption ceases to accrue on
and after the Redemption Date and the only remaining right of the
Holders is to receive payment of the Redemption Price plus accrued
interest to the Redemption Date upon surrender of the Notes to the
Paying Agent;
(7) the subparagraph of the Notes pursuant to which the Notes
called for redemption are being redeemed;
(8) if fewer than all the Notes are to be redeemed, the
identification of the particular Notes (or portion thereof) to be
redeemed, as well as the aggregate principal amount of Notes to be
redeemed and the aggregate principal amount of Notes to be outstanding
after such partial redemption; and
(9) the CUSIP or ISIN number, if any, listed in the notice or
printed on the Notes, and that no representation is made as to the
accuracy or correctness of such CUSIP or ISIN number.
Section 3.04. Effect of Notice of Redemption.
------------------------------
Once the notice of redemption described in Section 3.03 hereof
is mailed, Notes called for redemption become due and payable on the Redemption
Date and at the Redemption Price, including any premium, plus accrued interest
to the Redemption Date, if any. Upon surrender to the Paying Agent, such Notes
shall be paid at the Redemption Price, including any premium, plus accrued
interest to the Redemption Date, if any; provided that if the Redemption Date is
after a Record Date and on or prior to the Interest Payment Date, the accrued
interest shall be payable to the Holder of the redeemed Notes registered on the
relevant Record Date.
Section 3.05. Deposit of Redemption Price.
---------------------------
On or prior to 10:00 a.m., New York City time, on the relevant
Redemption Date, the Company shall have deposited with the Paying Agent in
immediately available funds U.S. legal tender sufficient to pay the Redemption
Price of and accrued interest, if any, on all Notes to be redeemed on that date.
The Paying Agent shall return to the Company any money deposited with the Paying
Agent by the Company in excess of the amount necessary to pay the Redemption
Price of and accrued interest, if any, on all Notes to be redeemed.
On and after any Redemption Date, if U.S. legal tender
sufficient to pay the Redemption Price of and accrued interest, if any, on Notes
called for redemption shall have been made available in accordance with the
preceding paragraph, the Notes called for redemption will cease to accrue
interest and the only right of the Holders of such Notes will be to receive
payment of the Redemption Price of and, subject to the proviso in Section 3.04
hereof, accrued and unpaid interest on such Notes to the Redemption Date, if
any. If any Note called for redemption shall not be so paid, interest will
continue to accrue and be paid, from the Redemption Date until such redemption
payment is made, on the unpaid principal of the Note and any interest not paid
on such unpaid principal, in each case, at the rate and in the manner provided
for in Section 2.12 hereof.
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Section 3.06. Notes Redeemed in Part.
----------------------
Upon surrender of a Note that is redeemed in part, the Company
shall execute and the Trustee shall authenticate, at the expense of the Company,
for a Holder a new Note equal in principal amount to the unredeemed portion of
the Note surrendered; provided that each new Note will be in a principal amount
of $1,000 or an integral multiple of $1,000.
ARTICLE 4
COVENANTS
Section 4.01. Payment of Notes.
----------------
The Company shall pay the principal of and interest (including
all Additional Interest as provided in the Registration Rights Agreement) on the
Notes on the dates and in the manner provided in the Notes and this Indenture.
An installment of principal or interest shall be considered paid on the date it
is due if the Trustee or Paying Agent holds, for the benefit of the Holders, on
that date money designated for and sufficient to pay such installment in full
and is not prohibited from paying such money to the Holders pursuant to the
terms of this Indenture.
The Company shall pay interest on overdue principal and
interest on overdue interest, to the extent lawful as provided for in Section
2.12 hereof.
Section 4.02. Reports.
-------
Whether or not required by the rules and regulations of the
Commission, so long as any Notes are outstanding, the Company shall file with
the Commission, to the extent such filings are accepted by the Commission, and
shall furnish (within 15 days after such filing) to the Trustee and to the
Holders all quarterly and annual reports and other information, documents and
reports that would be required to be filed with the Commission pursuant to
Section 13 of the Exchange Act if the Company were required to file under such
section. In addition, the Company shall make such information available to
prospective purchasers of the Notes, securities analysts and broker-dealers who
request it in writing. Delivery of such reports, information and documents to
the Trustee is for informational purposes only and the Trustee's receipt of such
shall not constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Company's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates).
Section 4.03. Waiver of Stay, Extension or Usury Laws.
---------------------------------------
The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead (as a defense or
otherwise) or in any manner whatsoever claim or take the benefit or advantage
of, any stay or extension law or any usury law or other law which would prohibit
or forgive the Company from paying all or any portion of the principal of,
premium, if any, and/or interest on the Notes as contemplated herein, wherever
enacted, now or at any time hereafter in force, or which may affect the
covenants or the performance of this Indenture; and the Company hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.
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Section 4.04. Compliance Certificate; Notice of Default; Tax Information.
----------------------------------------------------------
(a) The Company shall deliver to the Trustee, within 90 days
after the end of the Company's fiscal year commencing with the fiscal year
ending December 31, 2000, an Officers' Certificate (one of the signers of which
shall be the principal executive officer, principal financial officer or
principal accounting officer of the Company) stating that to the best of his or
her knowledge no Default or Event of Default has occurred, listing all
Restricted Payments for such year, and if a Default or Event of Default shall
have occurred, describing all of such Defaults or Events of Default of which he
or she may have knowledge and what action the Company is taking or proposes to
take with respect thereto. The Officers' Certificate shall also notify the
Trustee should the Company elect to change the manner in which it fixes its
fiscal year end.
(b) The annual financial statements delivered pursuant to
Section 4.02 shall be accompanied by a written report addressed to the Trustee
of the Company's independent accountants (who shall be a firm of established
national reputation) that in conducting their audit of such financial statements
nothing has come to their attention that would lead them to believe that a
Default or Event of Default has occurred under this Indenture insofar as they
relate to accounting matters or, if any such violation has occurred, specifying
the nature and period of existence thereof, it being understood that such
accountants shall not be liable directly or indirectly to any Person for any
failure to obtain knowledge of any such violation.
(c) If (i) any Default or Event of Default has occurred and is
continuing or (ii) any Holder seeks to exercise any remedy hereunder with
respect to a claimed default under this Indenture or the Notes, the Company
shall deliver to the Trustee, at its address set forth in Section 11.02 hereof,
by registered or certified mail or by telegram or facsimile transmission
followed by hard copy by registered or certified mail an Officers' Certificate
specifying such Default or Event of Default, notice or other action, the status
thereof and what action the Company is taking or proposes to take, which
Officers' Certificate shall be so delivered within five (5) Business Days of its
becoming aware of such occurrence.
Section 4.05. Payment of Taxes and Other Claims.
---------------------------------
The Company shall pay or discharge or cause to be paid or
discharged, before the same shall become delinquent, (i) all material taxes,
assessments and governmental charges (including withholding taxes and any
penalties, interest and additions to taxes) levied or imposed upon it or any of
its Subsidiaries or properties of it or any of its Subsidiaries and (ii) all
lawful claims for labor, materials and supplies that, if unpaid, might by law
become a Lien upon the property of it or any of its Subsidiaries; provided,
however, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings properly instituted and diligently conducted for which adequate
reserves, to the extent required under GAAP, have been taken.
Section 4.06. Corporate Existence.
-------------------
Subject to Article 5 hereof, the Company shall do or cause to
be done all things necessary to preserve and keep in full force and effect (i)
its corporate existence, and the corporate, partnership or limited liability
company or other existence of each Subsidiary, in accordance with the respective
organizational documents (as the same may be amended from time to time) of each
Subsidiary and the material rights (charter and statutory), licenses and
franchises of the Company and its Subsidiaries except where the failure to
preserve and keep in full force and effect any such rights, licenses and
franchises shall not have a material adverse effect on the financial condition,
business, operations or prospects of the Company and its Subsidiaries taken as a
whole; and provided that the Company shall not be required to preserve any such
right, license or franchise, or
-28-
the corporate, limited liability company, partnership or other existence of any
of the Subsidiaries, if the Board of Directors of the Company shall determine
that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries, taken as a whole.
Section 4.07. Maintenance of Office or Agency.
-------------------------------
The Company shall maintain an office or agency in the Borough
of Manhattan, The City of New York, where Notes may be surrendered for
registration of transfer or exchange or for presentation for payment and where
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company shall give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee with the address thereof,
such presentations, surrenders, notices and demands may be made or served at the
address of the Trustee as set forth in Section 11.02 hereof.
The Company 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.
The Company shall give prompt written notice to the Trustee of such designation
or rescission and of any change in the location of any such other office or
agency.
The Company hereby initially designates the Corporate Trust
Office of the Trustee set forth in Section 11.02 hereof as such office of the
Company in the Borough of Manhattan, The City of New York.
Section 4.08. Compliance with Laws.
--------------------
The Company shall comply, and shall cause each of its
Subsidiaries to comply, with all applicable statutes, rules, regulations, orders
and restrictions of the United States of America and all other sovereign
nations, all states and municipalities thereof, and of any governmental
department, commission, board, regulatory authority, bureau, agency and
instrumentality of the foregoing, in respect of the conduct of their respective
businesses and the ownership of their respective properties, except for such
noncompliances as would not in the aggregate have a material adverse effect on
the financial condition or results of operations of the Company and its
Subsidiaries taken as a whole.
Section 4.09. Maintenance of Properties and Insurance.
---------------------------------------
(a) The Company shall cause all material properties owned by
or leased by it or any of its Subsidiaries used or useful to the conduct of the
Company's business or the business of any of its Subsidiaries to be maintained
and kept in normal condition, repair and working order and supplied with all
necessary equipment and shall cause to be made all necessary repairs, renewals,
replacements, betterments and improvements thereof, all as in its judgment may
be necessary, so that the business carried on in connection therewith may be
properly and advantageously conducted at all times; provided, however, that
nothing in this Section 4.09 shall prevent the Company or any of its
Subsidiaries from discontinuing the use, operation or maintenance of any of such
properties, or disposing of any of them, if such discontinuance or disposal is,
in the judgment of the Board of Directors of the Company or of the Board of
Directors of the Subsidiary of the Company concerned, desirable in the conduct
of the business of the Company or any Subsidiary of the Company.
(b) The Company shall maintain, and shall cause the
Subsidiaries to maintain, insurance with responsible carriers against such risks
and in such amounts, and with such deductibles, retentions, self-insured amounts
and co-insurance provisions, as, in the reasonable judgment of the Company, may
be necessary.
-29-
Section 4.10. Limitation on Restricted Payments.
---------------------------------
The Company shall not, and shall not permit any of its
Subsidiaries, directly or indirectly, to make any Restricted Payment if at the
time of such Restricted Payment: (i) a Default or Event of Default shall have
occurred and be continuing or shall occur as a consequence thereof; (ii) after
giving effect to the proposed Restricted Payment, the amount of such Restricted
Payment, when added to the aggregate amount of all Restricted Payments made
after the Issue Date, exceeds the sum of: (a) 50% of the Company's Consolidated
Net Income accrued during the period (taken as a single period) commencing on
July 1, 1997 to and including the fiscal quarter ended immediately prior to the
date of such Restricted Payment (or, if such aggregate Consolidated Net Income
shall be a deficit, minus 100% of such aggregate deficit); (b) the net cash
proceeds from the issuance and sale of the Company's Capital Stock (other than
to a Subsidiary of the Company) that is not Disqualified Stock during the period
(taken as a single period) commencing with the Issue Date; and (c) $50,000,000;
or (iii) the Company would not be able to incur an additional $1.00 of
Indebtedness pursuant to Section 4.11 hereof.
Notwithstanding the foregoing, the Company may: (w) pay any
dividend within 60 days after the date of declaration thereof if the payment
thereof would have complied with the limitations of this Section 4.10 on the
date of declaration; (x) retire shares of the Company's Capital Stock or the
Company's or a Subsidiary of the Company's Indebtedness out of the proceeds of a
substantially concurrent sale (other than to a Subsidiary of the Company) of
shares of the Company's Capital Stock (other than Disqualified Stock); (y) make
Investments in Joint Ventures, when added to the aggregate amount of all such
other Investments made pursuant to this clause (y) after the Issue Date, not
exceeding at any time 5% of Consolidated Tangible Assets (with each such
Investment being valued as of the date made and without regard to subsequent
changes in value); and (z) make Investments, when added to the aggregate amount
of all such other Investments made pursuant to this clause (z) after the Issue
Date, not exceeding at any time 2.5% of Consolidated Tangible Assets (with each
such Investment being valued as of the date made and without regard to
subsequent changes in value); provided, however, that each Restricted Payment
described in clauses (w) and (x) above shall be taken into account for purposes
of computing the aggregate amount of all Restricted Payments pursuant to clause
(ii) of the immediately preceding paragraph.
Section 4.11. Limitation on Additional Indebtedness and Subsidiary Preferred
Stock.
(a) After the Issue Date, (i) the Company shall not, and shall
not permit any of its Subsidiaries to, directly or indirectly, create, incur,
issue, assume, guarantee, extend the Stated Maturity of, or otherwise become
liable with respect to (collectively, "incur"), any Indebtedness (including,
without limitation, Acquired Indebtedness) and (ii) the Company shall not permit
any of its Subsidiaries to issue (except to the Company or any of its Wholly
Owned Subsidiaries) or create any Preferred Stock or permit any Person (other
than the Company or a Wholly Owned Subsidiary) to own or hold any interest in
any Preferred Stock of any such Subsidiary; provided, however, that the Company
may incur Indebtedness and the Company may permit its Subsidiaries to issue or
create Preferred Stock if, after giving effect thereto, the Company's EBITDA
Coverage Ratio on the date thereof would be at least 2.5 to 1, determined on a
pro forma basis as if the incurrence of such additional Indebtedness or the
issuance of such Preferred Stock (declared to have an aggregate principal amount
equal to the aggregate liquidation value of such Preferred Stock), as the case
may be, and the application of the net proceeds therefrom, had occurred at the
beginning of the four-quarter period used to calculate the Company's EBITDA
Coverage Ratio.
(b) Notwithstanding the foregoing, and irrespective of the
EBITDA Coverage Ratio, in addition to Existing Indebtedness: (i) the Company may
incur Indebtedness pursuant to the Notes issued on the Issue Date and the
Exchange Notes issued in exchange for such Notes; (ii) the Company may incur
Indebtedness under the New Credit Agreement in an aggregate principal amount at
any time not to exceed $400,000,000;
-30-
(iii) the Company and its Subsidiaries may incur Refinancing Indebtedness; (iv)
the Company may incur any Indebtedness to any Subsidiary or any Subsidiary may
incur any Indebtedness to the Company or to any Subsidiary; (v) the Company and
its Subsidiaries may incur any Indebtedness evidenced by letters of credit which
are used in the ordinary course of business of the Company and its Subsidiaries
to secure workers' compensation and other insurance coverages; (vi) the Company
and its Subsidiaries may incur Capitalized Lease Obligations and Attributable
Indebtedness, in each case excluding Existing Indebtedness, in an aggregate
principal amount at any one time outstanding not to exceed 10% of Consolidated
Tangible Assets; and (vii) the Subsidiaries of the Company may incur
Indebtedness, excluding Existing Indebtedness, in an aggregate principal amount
at any time outstanding not to exceed $250,000,000, in addition to Indebtedness
permitted to be incurred by Subsidiaries pursuant to the foregoing clauses (iii)
- (vi).
(c) Notwithstanding the foregoing, the Company may permit any
Subsidiary which is a partnership formed to operate a single healthcare facility
to issue or create Preferred Stock, provided that the aggregate amount of all
such Preferred Stock outstanding after giving effect to such issuance or
creation shall not exceed 1% of Consolidated Tangible Assets as of the date of
such issuance or creation.
Section 4.12. Limitation on Asset Sales.
-------------------------
(a) The Company shall not, and shall not permit any of its
Subsidiaries to, consummate any Asset Sale unless (i) the Company or such
Subsidiary receives consideration at the time of such Asset Sale at least equal
to the Fair Market Value of the assets included in such Asset Sale, (ii)
immediately before and immediately after giving effect to such Asset Sale, no
Default or Event of Default shall have occurred and be continuing and (iii) at
least 75% of the consideration received by the Company or such Subsidiary
therefor is in the form of cash paid at the closing thereof, provided, however,
that this clause (iii) shall not apply if, after giving effect to such Asset
Sale, the aggregate principal amount of all notes or similar debt obligations
and Fair Market Value of all equity securities received by the Company from all
Asset Sales since the Issue Date (other than such notes or similar debt
obligations and such equity securities converted into or otherwise disposed of
for cash and applied in accordance with the second succeeding sentence) would
not exceed 2.5% of Consolidated Tangible Assets. The amount (without
duplication) of any (x) Indebtedness (other than Subordinated Indebtedness) of
the Company or such Subsidiary that is expressly assumed by the transferee in
such Asset Sale and with respect to which the Company or such Subsidiary, as the
case may be, is unconditionally released by the holder of such Indebtedness and
(y) any notes, securities or similar obligations or items of property received
from such transferee that are immediately converted, sold or exchanged by the
Company or such Subsidiary for cash (to the extent of the cash actually so
received), shall be deemed to be cash for purposes of this Section 4.12. If at
any time any non-cash consideration received by the Company or such Subsidiary,
as the case may be, in connection with any Asset Sale is converted into or sold
or otherwise disposed of for cash (other than interest received with respect to
any such non-cash consideration), then the date of such conversion or
disposition shall be deemed to constitute the date of an Asset Sale hereunder
and the Net Proceeds thereof shall be applied in accordance with this Section
4.12. A transfer of assets by the Company to a Wholly Owned Subsidiary or by a
Wholly Owned Subsidiary to the Company or to another Wholly Owned Subsidiary
will not be deemed to be an Asset Sale, and a transfer of assets that
constitutes a Restricted Payment and that is permitted under Section 4.10 hereof
will not be deemed to be an Asset Sale.
(b) If the Company or any Subsidiary engages in an Asset Sale,
the Company or such Subsidiary shall, no later than 360 days after such Asset
Sale, (i) apply all or any of the Net Proceeds therefrom to repay Senior
Indebtedness in accordance with the applicable provisions thereof, (ii) invest
all or any part of the Net Proceeds therefrom in the lines of business of the
Company or any of its Subsidiaries immediately prior to such investment or (iii)
any combination of clauses (i) and (ii) above. The amount of such Net Proceeds
not applied or invested as provided in this paragraph (b) will constitute
"Excess Proceeds."
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(c) When the aggregate amount of Excess Proceeds equals or
exceeds $5,000,000, the Company shall be required to make an offer to purchase
(an "Asset Sale Offer") from all Holders, an aggregate principal amount of Notes
equal to the amount of such Excess Proceeds as follows:
(i) The Company shall make an Asset Sale Offer to all Holders
in accordance with the procedures set forth in this Section 4.12 to
purchase the maximum principal amount (expressed as a multiple of
$1,000) of Notes that may be purchased out of the amount (the "Asset
Sale Payment Amount") of such Excess Proceeds.
(ii) The offer price for the Notes shall be payable in cash in
an amount equal to 100% of the principal amount of the Notes tendered
pursuant to such Asset Sale Offer, plus accrued and unpaid interest and
Additional Interest, if any, to the date such Asset Sale Offer is
consummated (the "Asset Sale Purchase Price"), in accordance with the
procedures set forth in this Section 4.12. To the extent that the
aggregate Asset Sale Purchase Price of Notes tendered pursuant to an
Asset Sale Offer is less than the Asset Sale Payment Amount relating
thereto (such shortfall constituting a "Net Proceeds Deficiency"), the
Company may use such Net Proceeds Deficiency, or a portion thereof, for
general corporate purposes.
(iii) If the aggregate Asset Sale Purchase Price of Notes
validly tendered and not withdrawn by holders thereof exceeds the Asset
Sale Payment Amount, Notes to be purchased shall be selected on a pro
rata basis.
(iv) Upon completion of such Asset Sale Offer in accordance
with the foregoing provisions, the amount of Excess Proceeds with
respect to which such Asset Sale Offer was made shall be deemed to be
zero.
In the event that any other Indebtedness of the Company which
ranks pari passu with the Notes ("Other Debt") requires an offer to purchase to
be made to repurchase such Other Debt upon the consummation of an Asset Sale,
the Company may apply the Excess Proceeds to both purchase such Other Debt and
to make an Asset Sale Offer, provided, that the purchase price of such Other
Debt does not exceed 100% of the aggregate principal amount or accreted value
thereof plus interest thereon. With respect to any Excess Proceeds, the Company
shall make the Asset Sale Offer in respect thereof at the same time as the
analogous offer to purchase is made pursuant to any Other Debt and the purchase
date in respect thereof shall be the same as the purchase date in respect
thereof pursuant to any Other Debt.
With respect to any Asset Sale Offer effected pursuant to this
Section 4.12, to the extent the aggregate principal amount of Notes and Other
Debt, if any, tendered pursuant to such Asset Sale Offer and the concurrent
offer to purchase with respect to such Other Debt exceeds the Excess Proceeds,
such Notes and Other Debt, if any, shall be purchased pro rata based on the
aggregate principal amount of such Notes and such Other Debt tendered by each
holder thereof.
(d) If the Company is required to make an Asset Sale Offer,
the Company shall, within 30 days following the date specified in clause (c)
above, notify the Trustee thereof and give written notice of such Asset Sale
Offer to each Holder by first-class mail, postage prepaid, at the address of
such Holder appearing in the register maintained by the Registrar, stating:
(1) that an Asset Sale Offer is being made pursuant to this
Section 4.12;
-32-
(2) that such Holders have the right to require the Company to
apply the Excess Proceeds to repurchase the Notes at a purchase price
in cash equal to 100% of the principal amount thereof plus accrued and
unpaid interest, if any, to the purchase date which shall be no earlier
than 30 days and not later than 60 days from the date such notice is
mailed (the "Excess Proceeds Payment Date");
(3) that any Note not tendered or accepted for payment will
continue to accrue interest;
(4) that any Notes accepted for payment pursuant to the Asset
Sale Offer shall cease to accrue interest after the Excess Proceeds
Payment Date;
(5) that Holders accepting the offer to have their Notes
purchased pursuant to the Asset Sale Offer will be required to
surrender the Notes, with the form entitled "Option of Holder to Elect
Purchase" on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on
the Business Day preceding the Excess Proceeds Payment Date;
(6) that Holders will be entitled to withdraw their acceptance
of the Asset Sale Offer if the Paying Agent receives, not later than
the close of business on the third Business Day preceding the Excess
Proceeds Payment Date, a telegram, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of the Notes
delivered for purchase and a statement that such Holder is withdrawing
his or her election to have such Notes purchased;
(7) that if the aggregate principal amount of Notes
surrendered by Holders exceeds the amount of Excess Proceeds, Company
shall select the Notes to be purchased on a pro rata basis so that the
aggregate amount of Notes so purchased equals the amount of Excess
Proceeds (with such adjustments as may be deemed appropriate by the
Company so that only Notes in denominations of $1,000 or integral
multiples thereof shall be purchased);
(8) that Holders whose Notes are being purchased only in part
will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered; provided that each Note purchased and
each such new Note issued shall be in an original principal amount in
denominations of $1,000 or integral multiples thereof;
(9) the calculations used in determining the amount of Excess
Proceeds to be applied to the purchase of such Notes;
(10) any other procedures that a Holder must follow to accept
an Asset Sale Offer or effect withdrawal of such acceptance; and
(11) the name and address of the Paying Agent.
On the Excess Proceeds Payment Date, the Company shall, to the
extent lawful, (1) accept for payment, on a pro rata basis to the extent
necessary, Notes or portions thereof tendered pursuant to the Asset Sale Offer,
(2) deposit with the Paying Agent US legal tender sufficient to pay the purchase
price plus accrued and unpaid interest, if any, on the Notes to be purchased or
portions thereof, (3) deliver or cause to be delivered to the Trustee Notes so
accepted together with an Officers' Certificate stating that such Notes or
portions thereof were accepted for payment by the Company in accordance with the
terms of this Section 4.12. The Paying Agent shall promptly mail to each Holder
so accepted payment in an amount equal to the purchase price for such Notes, and
the Company shall execute and issue, and the Trustee shall promptly authenticate
and make available for delivery to such Holder, a new Note equal in principal
amount to any unpurchased portion of the Notes
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surrendered; provided that each Note purchased and each such new Note issued
shall be in an original principal amount in denominations of $1,000 or integral
multiples thereof.
(e) The Company shall comply with the requirements of Rule
14e-1 under the Exchange Act and other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with the repurchase of Notes pursuant to an Asset Sale Offer. To the extent that
the provisions of any securities laws or regulations conflict with this Section
4.12, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under this
Section 4.12 by virtue thereof.
Section 4.13. Limitation on Transactions with Affiliates.
------------------------------------------
Neither the Company nor any of its Subsidiaries shall,
directly or indirectly, in one transaction or a series of transactions, make any
loan, advance, guarantee or capital contribution to, or for the benefit of, or
sell, lease, transfer or otherwise dispose of any of its properties or assets
to, or for the benefit of, or purchase or lease any property or assets from, or
enter into or amend any contract, agreement or understanding with, or for the
benefit of, any Affiliate of the Company or any of its Subsidiaries or any
Person (or any Affiliate of such Person) holding 10% or more of the Common
Equity of the Company or any of its Subsidiaries, other than transactions in the
ordinary course between the Company and its Subsidiaries or among Subsidiaries
of the Company (an "Affiliate Transaction"), unless: (i) the terms of such
Affiliate Transactions are fair and reasonable to the Company or such
Subsidiary, as the case may be, and are at least as favorable as the terms which
could be obtained by the Company or such Subsidiary, as the case may be, in a
comparable transaction made on an arm's-length basis between unaffiliated
parties; (ii) with respect to any such Affiliate Transaction involving aggregate
payments in excess of $5,000,000, the Company delivers an Officers' Certificate
to the Trustee certifying that such Affiliate Transaction complies with clause
(i) above and a Secretary's Certificate which sets forth and authenticates a
resolution that has been adopted by a vote of a majority of the disinterested
members of the Board of Directors approving such Affiliate Transaction; and
(iii) with respect to any such Affiliate Transaction involving aggregate
payments in excess of $25,000,000, the Company delivers to the Trustee the
certificates specified in clause (ii) above and an opinion of an independent
investment banking firm of national standing in the United States, stating that
such Affiliate Transaction is fair from a financial point of view to the Company
or such Subsidiary, as the case may be; provided, however, that the foregoing
clauses (ii) and (iii) shall not apply to transactions between the Company or
any of its Subsidiaries and XxxXxxxxxXxxxxx.xxx, Inc. or any entity to which the
Company transfers all or substantially all of the rights to its HEALTHSOUTH
Clinical Automation Program.
Section 4.14. Limitation on Liens.
-------------------
The Company shall not create or suffer to exist any Lien
(including any Lien created to secure the Company's obligation to repay Senior
Subordinated Indebtedness other than any amounts owing in respect of the Notes),
other than Permitted Liens, on any of its assets unless all payments due under
this Indenture and the Notes are secured on an equal and ratable basis with the
obligation so secured until such time as such obligation is no longer secured by
a Lien.
Section 4.15. Purchase of Notes upon a Change of Control.
------------------------------------------
(a) Upon the occurrence of a Change of Control, the Company
shall be obligated to make an offer to purchase (the "Change of Control Offer")
the outstanding Notes of each Holder in whole or in part in integral multiples
of $1,000, at a purchase price (the "Change of Control Purchase Price") in cash
in an amount
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equal to 101% of the principal amount thereof, plus accrued interest, if any, to
the date of purchase (the "Change of Control Purchase Date"), pursuant to the
procedures set forth below.
(b) Within 30 days following any Change of Control, the
Company shall notify the Trustee thereof and give written notice of such Change
of Control to each Holder by first-class mail, postage prepaid, at the address
of such Holder appearing in the register maintained by the Registrar, stating,
among other things:
(1) that the Change of Control Offer is being made pursuant to
this Section 4.15;
(2) that such Holders have the right to require the Company to
repurchase such Notes at the Change of Control Purchase Price on the
Change of Control Purchase Date which shall be no earlier than 30 days
and not later than 60 days from the date such notice is mailed;
(3) that any Note not tendered or accepted for payment will
continue to accrue interest;
(4) that, unless the Company defaults in its payment of the
Change of Control Purchase Price, any Note accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest
after the Change of Control Purchase Date;
(5) that Holders accepting the offer to have their Notes
purchased pursuant to a Change of Control Offer will be required to
surrender the Notes, with the form entitled "Option of Holder to Elect
Purchase" on the reverse of the Note completed, to the Paying Agent at
the address specified in the notice prior to the close of business on
the Business Day preceding the Change of Control Purchase Date;
(6) that Holders will be entitled to withdraw their acceptance
of the Change of Control Offer if the Paying Agent receives, not later
than the close of business on the third Business Day preceding the
Change of Control Purchase Date, a telegram, facsimile transmission or
letter setting forth the name of the Holder, the principal amount of
the Notes delivered for purchase and a statement that such Holder is
withdrawing his or her election to have such Notes purchased;
(7) any other procedures that a Holder must follow to accept
an Change of Control Offer or effect withdrawal of such acceptance; and
(8) the name and address of the Paying Agent.
On the Change of Control Payment Date, the Company shall, to
the extent lawful, (1) accept for payment Notes or portions thereof tendered
pursuant to the Change of Control Offer, (2) deposit with the Paying Agent U.S.
legal tender sufficient to pay the purchase price of all Notes or portions
thereof so tendered and (3) deliver or cause to be delivered to the Trustee
Notes so accepted together with an Officers' Certificate stating that such Notes
or portions thereof were accepted for payment by the Company pursuant to this
Section 4.15. The Paying Agent shall promptly mail to each Holder so accepted
payment in an amount equal to the purchase price for such Notes, and the Company
shall execute and issue, and the Trustee shall promptly authenticate and mail to
such Holder, a new Note equal in principal amount to any unpurchased portion of
the Notes surrendered; provided that each such new Note shall be issued in an
original amount in denominations of $1,000 and integral multiples thereof.
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(c) The Company shall comply with the requirements of Rule
14e-1 under the Exchange Act and other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with the repurchase of Notes pursuant to a Change of Control Offer. To the
extent that the provisions of any securities laws or regulations conflict with
this Section 4.15, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
this Section 4.15 by virtue thereof.
Section 4.16. Limitation on Restrictions on Distributions from Subsidiaries.
--------------------------------------------------------------
The Company shall not, and shall not permit any of its
Subsidiaries to, create or otherwise cause or suffer to exist or become
effective any consensual encumbrance or restriction (other than encumbrances or
restrictions imposed by law or by judicial or regulatory action or by provisions
in leases or other agreements that restrict the assignability thereof) on the
ability of any Subsidiary of the Company to (i) pay dividends or make any other
distributions on its Capital Stock or any other interest or participation in, or
measured by, its profits, owned by the Company or any of its other Subsidiaries,
or pay interest on or principal of any Indebtedness owed to the Company or any
of its other Subsidiaries, (ii) make loans or advances to the Company or any of
its other Subsidiaries or (iii) transfer any of its properties or assets to the
Company or any of its other Subsidiaries, in each case except for encumbrances
or restrictions existing under or by reason of (a) applicable law, (b) the
Credit Agreements, (c) Existing Indebtedness, (d) any restrictions under any
agreement evidencing any Acquired Indebtedness that was permitted to be incurred
pursuant to this Indenture and which was not incurred in anticipation or
contemplation of the related acquisition, provided that such restrictions and
encumbrances only apply to assets that were subject to such restrictions and
encumbrances prior to the acquisition of such assets by the Company or its
Subsidiaries, (e) restrictions or encumbrances replacing those permitted by
clause (b), (c) or (d) above which, taken as a whole, are not materially more
restrictive, (f) this Indenture, (g) any restrictions and encumbrances arising
in connection with Refinancing Indebtedness; provided, however, that any
restrictions or encumbrances of the type described in this clause (g) that arise
under such Refinancing Indebtedness are not, taken as a whole, materially more
restrictive than those under the agreement creating or evidencing the
Indebtedness being refunded or refinanced, (h) any restrictions with respect to
a Subsidiary of the Company imposed pursuant to an agreement that has been
entered into for the sale or other disposition of all or substantially all of
the Capital Stock or assets of such Subsidiary, (i) any agreement restricting
the sale or other disposition of property securing Indebtedness if such
agreement does not expressly restrict the ability of a Subsidiary of the Company
to pay dividends or make loans or advances and (j) customary restrictions in
purchase money debt or leases relating to the property covered thereby.
Section 4.17. Limitations on Certain Other Subordinated Indebtedness.
------------------------------------------------------
The Company shall not create, incur, assume or suffer to exist
any Indebtedness that is subordinate in right of payment to any Senior
Indebtedness unless such Indebtedness by its terms or the terms of the
instrument creating or evidencing such Indebtedness is subordinate in right of
payment to, or ranks pari passu with, the Notes.
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ARTICLE 5
SURVIVING ENTITY
Section 5.01. Limitations on Mergers and Consolidations.
-----------------------------------------
The Company shall not consolidate or merge with or into, or
sell, lease, convey or otherwise dispose of all or substantially all of its
assets, or assign any of its obligations under the Notes or this Indenture, to
any Person unless: (i) the Person formed by or surviving such consolidation or
merger (if other than the Company), or to which such sale, lease, conveyance or
other disposition or assignment shall be made (collectively, the "Successor"),
is a corporation organized and existing under the laws of the United States or
any State thereof or the District of Columbia, and the Successor assumes by
supplemental indenture in a form satisfactory to the Trustee all of the
obligations of the Company under the Notes and this Indenture; (ii) immediately
after giving effect to such consolidation, merger, sale, lease, conveyance or
other disposition or assignment and the use of any net proceeds therefrom on a
pro forma basis, no Default or Event of Default shall have occurred and be
continuing; (iii) immediately after giving effect to such consolidation, merger,
sale, lease, conveyance or other disposition or assignment and the use of any
net proceeds therefrom on a pro forma basis, the Consolidated Net Worth of the
Company or the Successor, as the case may be, would be at least equal to the
Consolidated Net Worth of the Company immediately prior to such transaction;
(iv) immediately after giving effect to such consolidation, merger, sale, lease,
conveyance or other disposition or assignment and the use of any net proceeds
therefrom on a pro forma basis, the EBITDA Coverage Ratio of the Company or the
Successor, as the case may be, would be such that the Company or the Successor,
as the case may be, would be entitled to incur at least $1.00 of additional
Indebtedness under the EBITDA Coverage Ratio test in Section 4.11 hereof; and
(v) the Company shall have delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel, each stating that such consolidation, merger, sale,
lease, conveyance or other disposition or assignment complies with the
provisions of this Indenture.
Section 5.02. Successor Substituted.
---------------------
Upon any consolidation, merger, conveyance or any transfer of
all or substantially all of the assets of the Company in accordance with Section
5.01 hereof, the surviving entity formed by such consolidation or into which the
Company or any such Subsidiary is merged or to which such transfer is made shall
succeed to, and be substituted for, and may exercise every right and power of,
the Company or such Subsidiary, as the case may be, under this Indenture with
the same effect as if such surviving entity had been named as the Company or
such Subsidiary, as the case may be herein, and thereafter the predecessor
entity shall be relieved of all obligations and covenants under this Indenture
and the Notes.
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ARTICLE 6
DEFAULTS AND REMEDIES
Section 6.01. Events of Default.
-----------------
An "Event of Default" occurs if:
(a) there is a failure by the Company to pay interest on any
of the Notes when it becomes due and payable and the continuance of any
such failure for 30 days (whether or not prohibited by Article 10
hereof);
(b) there is a failure by the Company to pay the principal of
(or premium, if any, on) the Notes when it becomes due and payable,
whether at its Stated Maturity, upon redemption, upon acceleration or
otherwise (whether or not prohibited by Article 10 hereof);
(c) there is a failure by the Company to comply with its
obligations or covenants described under Section 4.12, Section 4.15 or
Article 5 hereof (whether or not prohibited by Article 10 hereof);
(d) there is a failure by the Company to comply with any
covenant in this Indenture (except the covenants referred to in clauses
(a), (b) and (c) above) and continuance of such failure for 30 days
after notice of such failure has been given to the Company by the
Trustee or to the Company and the Trustee by the Holders of at least
25% in principal amount of the Notes then outstanding;
(e) there is any acceleration of the Stated Maturity of
Indebtedness of the Company or any of its Significant Subsidiaries
having an outstanding principal amount of at least $25,000,000 or a
failure to pay such Indebtedness at its Stated Maturity, provided that
such acceleration or failure to pay is not cured within 10 days after
such acceleration or failure to pay;
(f) there is a final judgment or final judgments that exceed
$25,000,000 for the payment of money that has been entered by a court
or courts of competent jurisdiction against the Company and/or any
Significant Subsidiary of the Company and such judgment or judgments
have not been discharged within 30 days after all rights to appeal have
been exhausted;
(g) the Company or any of its Significant Subsidiaries
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) takes any corporate action to authorize or effect
any of the foregoing; and
-38-
(h) a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that:
(A) is for relief against the Company or any of its
Significant Subsidiaries in an involuntary case,
(B) appoints a Custodian of the Company or any of its
Significant Subsidiaries or for all or substantially all of
the Property of the Company or such Significant Subsidiary, or
(C) orders the liquidation of the Company or any of
its Significant Subsidiaries,
and the order or decree remains unstayed and in effect for 60 days.
The term "Bankruptcy Law" means Title 11, U.S. Code or any
similar Federal, state or foreign law for the relief of debtors. The term
"Custodian" means any receiver, trustee, assignee, liquidator or similar
official under any Bankruptcy Law.
Section 6.02. Acceleration.
------------
If an Event of Default (other than an Event of Default
specified in Section 6.01(g) or 6.01(h) hereof relating to the Company) shall
have occurred and be continuing under this Indenture, the Trustee, by written
notice to the Company, or the Holders of at least 25% in aggregate principal
amount of the Notes then outstanding by written notice to the Company and the
Trustee, may declare all amounts owing under the Notes to be due and payable.
Upon effectiveness of such acceleration, the aggregate principal of, premium, if
any, and interest on the outstanding Notes shall immediately become due and
payable. At any time after such acceleration but before a judgment or decree
based on such acceleration is obtained by the Trustee, or any Holder, the
Holders of a majority in aggregate principal amount of outstanding Notes, by
written notice to the Company and the Trustee, may rescind and annul such
acceleration if:
(a) the Company has paid or deposited with the Trustee a sum
sufficient to pay:
(1) all overdue interest on the Notes;
(2) all unpaid principal of and premium, if any, on
any of the outstanding Notes that has become due otherwise
than by such declaration of acceleration and interest thereon
at the rate borne by the Notes;
(3) to the extent that payment of such interest is
lawful, interest upon overdue interest and overdue principal
at the rate borne by the Notes;
(4) all sums paid or advanced by the Trustee under
this Indenture and the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and
counsel;
(b) all Events of Default, other than the non-payment of
amounts of principal of, premium, if any, or interest on the Notes that
has become due solely by such declaration of acceleration, have been
cured or waived; and
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(c) in the event of the cure or waiver of an Event of Default
with respect to the Company of the type described in Section 6.01(g) or
(h) hereof, the Trustee shall have received an Officers' Certificate
and an Opinion of Counsel that such Event of Default has been cured or
waived.
No such rescission shall affect any subsequent Default or
impair any right consequent thereto.
In case an Event of Default with respect to the Company of the
type described in Section 6.01(g) or (h) hereof shall occur, the aggregate
principal of, premium, if any, and interest on the outstanding Notes shall
immediately become due and payable without any declaration or other act on the
part of the Trustee or the Holders.
Section 6.03. Other Remedies.
--------------
If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy by proceeding at law or in equity to collect the
payment of principal of, or premium, if any, and interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture and may
take any necessary action requested of it as Trustee to settle, compromise,
adjust or otherwise conclude any proceedings to which it is a party.
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. No remedy is
exclusive of any other remedy. All available remedies are cumulative to the
extent permitted by law.
Section 6.04. Waiver of Existing Defaults and Events of Default.
-------------------------------------------------
Subject to Sections 2.09, 6.02, 6.07 and 8.02 hereof, the
Holders of a majority in principal amount of the Notes then outstanding have the
right to waive existing Defaults under or in compliance with any provision of
this Indenture or the Notes except a continuing Default in the payment of the
principal of, or interest or premium, if any, on any Note as specified in
clauses (a) and (b) of Section 6.01 hereof or in respect of a covenant or a
provision which cannot be modified or amended without the consent of all Holders
as provided for in Section 8.02 hereof. The Company shall deliver to the Trustee
an Officers' Certificate stating that the requisite percentage of Holders have
consented to such waiver and attach copies of such consents. In case of any such
waiver, the Company, the Trustee and the Holders shall be restored to their
former positions and rights hereunder and under the Notes, respectively. This
paragraph of this Section 6.04 shall be in lieu of ss. 316(a)(1)(B) of the TIA
and such ss. 316(a)(1)(B) of the TIA is hereby expressly excluded from this
Indenture and the Notes, as permitted by the TIA.
Upon any such waiver, such Default shall cease to exist and be
deemed to have been cured and not to have occurred, and any Event of Default
arising therefrom shall be deemed to have been cured and not to have occurred
for every purpose of this Indenture, but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereto.
Section 6.05. Control by Majority.
-------------------
Subject to Section 2.09 hereof, the Holders of a majority in
principal amount of the then outstanding Notes shall have the right to direct
the time, method and place of conducting any proceeding for exercising any
remedy available to the Trustee or exercising any trust or power conferred on
the Trustee by this
-40-
Indenture. The Trustee, however, may refuse to follow any direction that
conflicts with law or this Indenture or that the Trustee determines in its
reasonable judgment may be unduly prejudicial to the rights of another Holder
not taking part in such direction, and the Trustee shall have the right to
decline to follow any such direction if the Trustee, being advised by counsel,
determines that the action so directed may not lawfully be taken or if the
Trustee in good faith shall, by a Trust Officer, determine that the proceedings
so directed may involve it in personal liability; provided that the Trustee may
take any other action deemed proper by the Trustee which is not inconsistent
with such direction. In the event the Trustee takes any action or follows any
direction pursuant to this Indenture, the Trustee shall be entitled to
indemnification satisfactory to it in its sole discretion against any loss or
expense caused by taking such action or following such direction. This Section
6.05 shall be in lieu of Section 316(a)(1)(A) of the TIA, and such Section
316(a)(1)(A) of the TIA is hereby expressly excluded from this Indenture and the
Notes, as permitted by the TIA.
Section 6.06. Limitation on Suits.
-------------------
Subject to Section 6.07 hereof, no Holder has any right to
institute any proceeding with respect to this Indenture or any remedy hereunder
unless:
(1) the Holder gives the Trustee written notice of a
continuing Event of Default;
(2) the Holders of at least 25% in aggregate principal amount
of the outstanding Notes make a written request to the Trustee to
pursue the remedy;
(3) such Holder or Holders offer to the Trustee indemnity
reasonably satisfactory to the Trustee against any loss, liability or
expense which may be incurred in compliance with such request;
(4) the Trustee fails to institute such proceeding within 60
calendar days after receipt of such notice and the offer of indemnity;
and
(5) the Trustee has not received directions inconsistent with
such written request during such 60-day period by the Holders of a
majority in aggregate principal amount of then outstanding Notes.
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 6.07. Rights of Holders To Receive Payment.
------------------------------------
Notwithstanding any other provision of this Indenture, the
right of any Holder to receive payment of principal of, or premium, if any, or
accrued interest on any Note held by such Holder on or after the respective due
dates expressed in such Note, or to bring suit for the enforcement of any such
payment on or after such respective dates, is absolute and unconditional
(subject to the terms of this Indenture) and shall not be impaired or affected
without the consent of such Holder.
Section 6.08. Collection Suit by Trustee.
--------------------------
If an Event of Default occurs and is continuing, the Trustee
may recover judgment in its own name and as trustee of an express trust against
the Company for the whole amount of unpaid principal, premium, if any, and
accrued interest remaining unpaid, together with, to the extent that payment of
such interest is lawful, interest on overdue principal and interest on overdue
installments of interest, in each case at the rate set forth in Section 4.01
hereof, and such further amounts as shall be sufficient to cover the costs and
expenses of collection,
-41-
including the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel.
Section 6.09. Trustee May File Proofs of Claim.
--------------------------------
The Trustee may file such proofs of claim and other papers or
documents 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 the Company (or any
other obligor upon the Notes), its creditors or its property and shall be
entitled and empowered to collect and receive any monies or other property
payable or deliverable on any such claims and to distribute the same after
deduction of its charges and expenses to the extent that any such charges and
expenses are not paid out of the estate in any such proceedings 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 7.07 hereof.
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 or reorganization, arrangement, adjustment or composition affecting the
Notes or the rights of any Holder thereof, or to authorize the Trustee to vote
in respect of the claim of any Holder in any such proceedings.
Section 6.10. Priorities.
----------
If the Trustee collects any money pursuant to this Article 6,
it shall pay out the money in the following order:
FIRST: to the Trustee for amounts due under Section 7.07
hereof;
SECOND: if the Holders are forced to proceed against the
Company directly without the Trustee, to Holders for their collection
costs; and
THIRD: to Holders for amounts due and unpaid on the Notes for
principal, premium, if any, and interest as to each, ratably, without
preference or priority of any kind, according to the amounts due and
payable on the Notes.
The Trustee, upon prior written notice to the Company, 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 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 6.07 hereof or a suit by Holders of more than 10% in
principal amount of the Notes then outstanding.
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ARTICLE 7
TRUSTEE
Section 7.01. Duties of Trustee.
-----------------
(a) If an Event of Default actually known to a Trust Officer
of the Trustee has occurred and is continuing, the Trustee shall exercise such
rights and powers vested in it by this Indenture and use the same degree of care
and skill in their exercise as a prudent Person would exercise under the
circumstances in the conduct of such Person's own affairs.
(b) Except during the continuance of a Default or an Event of
Default:
(1) The Trustee need perform only those duties and
obligations that are specifically set forth in this Indenture.
(2) In the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture
but, in the case of any such certificates or opinions which by
any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine
the same to determine whether or not they conform to the
requirements of this Indenture.
(c) Notwithstanding anything to the contrary herein contained,
the Trustee may not be relieved from liability for its own negligent
action, its own negligent failure to act, or its own willful
misconduct, except that:
(A) This paragraph does not limit the effect of
paragraph (b) of this Section 7.01.
(B) The Trustee shall not be liable for any error of
judgment made in good faith by a Trust Officer of the Trustee,
unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.
(C) 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
Sections 6.02, 6.04 and 6.05 hereof.
(d) No provision of this Indenture shall require the Trustee
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder or to take or omit to take any
action under this Indenture or take any action at the request or direction of
Holders if it shall have reasonable grounds for believing that repayment of such
funds is not assured to it or it does not receive from such Holders an indemnity
reasonably satisfactory to it against such risk, liability, loss, fee or expense
which might be incurred by it in compliance with such request or direction.
(e) Whether or not expressly so provided, the provisions of
the TIA and paragraphs (a), (b), (c) and (d) of this Section 7.01 shall govern
every provision of this Indenture that in any way relates to the Trustee.
-43-
(f) The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by the law or as otherwise agreed to in writing by
the Trustee and the Company.
(g) Unless otherwise specifically provided in this Indenture,
any demand, request direction or notice from the Company shall be sufficient if
signed by an Officer of the Company.
Section 7.02. Rights of Trustee.
-----------------
Subject to Section 7.01 hereof:
(1) The Trustee may conclusively rely on any document believed
by it in good faith 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.
(2) Before the Trustee acts or refrains from acting with
respect to any matters contemplated by this Indenture or the Notes it
may require an Officers' Certificate or an Opinion of Counsel, or both,
which shall conform to the provisions of Section 11.05 hereof. The
Trustee shall be fully protected and 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.
(3) The Trustee may act through agents, attorneys, custodians
or nominees and shall not be responsible for the misconduct or
negligence of any agent, attorney, custodian or nominee appointed with
due care by it hereunder.
(4) The Trustee shall not be liable for any action it takes or
omits to take in good faith which it reasonably believes to be
authorized or within its rights or powers under this Indenture.
(5) Before the Trustee acts or refrains from acting with
respect to any matters contemplated by this Indenture or the Notes, the
Trustee may consult with counsel of its selection, and the advice or
opinion of such counsel, accountant, appraiser or other expert adviser
whether retained or employed by the Company or the Trustee shall be
full and complete authorization and protection from liability in
respect of any action taken, omitted or suffered by it hereunder in
good faith and in reliance thereon.
(6) The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document, but the
Trustee, in its discretion, may make such further inquiry or
investigation into such facts or matters as it may see fit, and if the
Trustee shall determine in good faith to make such further inquiry or
investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney at the sole
cost of the Company and shall incur no liability or additional
liability of any kind by reason of such inquiry or investigation.
(7) In no event shall the Trustee be liable for the selection
of investments or for investment losses incurred thereon. The Trustee
shall have no liability in respect of losses incurred as a result of
the liquidation of any such investment prior to its Stated Maturity or
the failure of the party directing such investment to provide timely
written investment direction. The Trustee shall have no
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obligation to invest or reinvest any amounts held hereunder in the
absence of specific written investment direction.
(8) The rights, privileges, immunities and protections
afforded to the Trustee pursuant to this Indenture (including, without
limitation, the right to be indemnified) shall also be afforded to the
Trustee in each of its capacities hereunder and each Paying Agent,
Registrar, Co-Registrar, Custodian, transfer agent or tender agent and
each agent or other Person employed to act hereunder.
(9) The Trustee shall not be deemed to have notice of any
Default or Event of Default unless a Trust Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is
in fact such a default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Notes and
this Indenture.
(10) The Trustee may request that the Company 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 7.03. Individual Rights of Trustee.
----------------------------
The Trustee in its individual or any other capacity may become
the owner or pledgee of Notes and may make loans to, accept deposits from,
perform services for or otherwise deal with the Company, or any Affiliates
thereof, with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee, however, shall be subject to
Sections 7.10 and 7.11 hereof.
Section 7.04. Trustee's Disclaimer.
--------------------
The Trustee shall not be responsible for and makes no
representation as to the validity or adequacy of this Indenture or the Notes or
any recitals therein, it shall not be accountable for the Company's use of the
proceeds from the sale of Notes or any money paid to the Company pursuant to the
terms of this Indenture and it shall not be responsible for any statement in the
Notes other than its certificate of authentication.
Section 7.05. Notice of Defaults.
-------------------
If a Default or an Event of Default occurs and is continuing
and is known to a Trust Officer of the Trustee, the Trustee shall mail to each
Holder notice of the uncured Default or Event of Default within 5 days after
obtaining knowledge thereof. Except in the case of a Default or an Event of
Default in payment of principal of, premium, if any, or interest on, any Note,
including an accelerated payment and the failure to make payment on the Change
of Control Payment Date pursuant to a Change of Control Offer or on the Excess
Proceeds Payment Date pursuant to an Asset Sale Offer, and except in the case of
a failure to comply with Article 5 hereof the Trustee may withhold the notice if
and so long as a committee of its Trust Officers in good faith determines that
withholding the notice is in the best interest of the Holders. This Section 7.05
shall be in lieu of the proviso to Section 315(b) of the TIA, and such proviso
of Section 315(b) of the TIA is hereby expressly excluded from this Indenture
and the Notes, as permitted by the TIA.
-45-
Section 7.06. Reports by Trustee to Holders.
-----------------------------
If required by TIA Section 313(a), within 60 days after May 15
of any year, commencing on May 15, 2001, the Trustee shall transmit by mail to
each Holder a brief report dated as of such May 15 that complies with TIA
Section 313(a). The Trustee also shall comply with the reporting requirements of
TIA Sections 313(b), (c) and (d).
A copy of each such report at the time of such mailing to
Holders shall be mailed to the Company and, if the Notes are listed on a stock
exchange, filed with the Commission and each stock exchange on which the Notes
are listed as provided by TIA Section 313(d). The Company shall promptly notify
the Trustee when the Notes are listed on any stock exchange and any delisting
thereof.
Section 7.07. Compensation and Indemnity.
--------------------------
The Company shall pay to the Trustee from time to time such
compensation as may from time to time be agreed in writing between the Company
and the Trustee for its services hereunder (which compensation shall not be
limited by any provision of law in regard to the compensation of a trustee of an
express trust). Except as otherwise provided herein, the Company shall reimburse
the Trustee upon request for all reasonable disbursements, expenses and advances
incurred or made by it in connection with its duties under this Indenture,
including the reasonable compensation, disbursements and expenses of the
Trustee's agents, counsel, custodians and nominees, except for any such
disbursement or expense as may be attributable to the Trustee's negligence, bad
faith or willful misconduct.
The Company shall indemnify each of the Trustee and its
officers, directors, employees and agents and any predecessor Trustee and its
officers, directors, employees and agents for, and hold it or them harmless
against, any and all loss, damage, claim, liability or reasonable expense,
including taxes (other than franchise taxes and taxes based on the income of the
Trustee) incurred by it or them in connection with the acceptance or performance
of its duties under this Indenture and any other documents and transactions in
connection therewith including the reasonable costs and expenses of defending
itself against any claim (whether asserted by the Company, or any Holder or any
other Person) or liability in connection with the exercise or performance of any
of its or their powers or duties hereunder (including, without limitation,
settlement costs, provided any settlement with respect to which indemnification
is sought shall have been consented to by the Company). The Trustee shall notify
the Company in writing promptly of any claim asserted against the Trustee for
which it may seek indemnity. However, the failure by the Trustee to so notify
the Company shall not relieve the Company of its obligations hereunder except to
the extent the Company is prejudiced thereby. This Section 7.07 shall survive
the termination of this Indenture and the earlier resignation or removal of the
Trustee.
Notwithstanding the foregoing, the Company need not reimburse
the Trustee for any expense or indemnify it against any loss, damage, claim or
liability incurred by the Trustee through its negligence, bad faith or willful
misconduct. To secure the payment obligations of the Company in this Section
7.07, the Trustee shall have a lien prior to the Notes on all money or property
held or collected by the Trustee except such money or property held in trust to
pay principal of and interest on particular Notes.
When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(g) or (h) hereof occurs, the expenses
(including the reasonable charges and expenses of its counsel) and the
compensation for the services are intended to constitute expenses of
administration under any Federal or state bankruptcy, insolvency or similar law.
-46-
The obligation of the Company under this Section 7.07 shall
survive the resignation or removal of the Trustee and the satisfaction and
discharge of this Indenture.
Section 7.08. Replacement of Trustee.
----------------------
The Trustee may resign by so notifying the Company in writing.
The Holders of a majority in principal amount of the then outstanding Notes may
remove the Trustee by notifying the removed Trustee and the Company in writing
and may appoint a successor Trustee with the Company's written consent. The
Company may remove the Trustee at its election if:
(1) the Trustee fails to comply with Section 7.10 hereof;
(2) 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;
(3) a receiver or other public officer takes charge or control
of the Trustee or its property or affairs; or
(4) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee.
No resignation or removal of the Trustee shall become
effective until the acceptance of appointment by the successor Trustee. If a
successor Trustee does not take office within 30 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company or the Holders of a
majority in principal amount of the outstanding Notes may petition any court of
competent jurisdiction at the expense of the Company for the appointment of a
successor Trustee.
If the Trustee fails to comply with Section 7.10 hereof, any
Holder may petition any court of competent jurisdiction for the removal of the
Trustee and the appointment of a successor Trustee if the Trustee fails after
written request thereof by such Holder to comply with such Section 7.10.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately following
such delivery, the resignation or removal of the retiring Trustee shall become
effective and the retiring Trustee shall, subject to its rights under Section
7.07 hereof, transfer all property held by it as Trustee to the successor
Trustee, and the successor Trustee, after any and all amounts then due and owing
the Trustee hereunder have been paid in full, shall have all the rights, powers
and duties of the Trustee under this Indenture. A successor Trustee shall mail
notice of its succession to each Holder. Notwithstanding replacement of the
Trustee pursuant to this Section 7.08, the Company's obligations under Section
7.07 hereof shall continue for the benefit of the retiring Trustee.
Section 7.09. Successor Trustee by Consolidation, Merger or Conversion.
--------------------------------------------------------
If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust assets to, another
corporation, subject to Section 7.10 hereof, the successor corporation without
any further act shall be the successor Trustee. In case at the time such
successor or successors by merger, conversion or consolidation to the Trustee
shall succeed to the trusts created by this Indenture any of the Notes shall
have been authenticated but not delivered, any such successor to the Trustee may
adopt the certificate of
-47-
authentication of any predecessor trustee, and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been
authenticated, any such successor to the Trustee may authenticate such Notes
either in the name of any predecessor hereunder or in the name of the successor
to the Trustee; and in all such cases such certificates shall have the full
force which it is anywhere in the Notes or in this Indenture provided that the
certificate of the Trustee shall have.
Section 7.10. Eligibility; Disqualification.
-----------------------------
This Indenture shall always have a Trustee which shall be
eligible to act as Trustee under TIA Sections 310(a)(1) and 310(a)(2). The
Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition. If the Trustee
has or shall acquire any "conflicting interest" within the meaning of TIA
Section 310(b), the Trustee and the Company shall comply with the provisions of
TIA Section 310(b); provided, however, that there shall be excluded from the
operation of TIA Section 310(b)(1) any indenture or indentures under which other
securities or certificates of interest or participation in other securities of
the Company are outstanding if the requirements for such exclusion set forth in
TIA Section 310(b)(1) are met. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section 7.10, the Trustee
shall resign immediately in the manner and with the effect hereinbefore
specified in this Article 7.
Section 7.11. Preferential Collection of Claims Against Company.
-------------------------------------------------
The Trustee shall comply with TIA Section 311(a), excluding
any creditor relationship listed in TIA Section 311(b). A Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated therein.
ARTICLE 8
MODIFICATIONS, AMENDMENTS, SUPPLEMENTS AND WAIVERS
Section 8.01. Without Consent of Holders.
--------------------------
The Company, when authorized by a Board Resolution of the
Company, and the Trustee may modify, amend or supplement this Indenture or the
Notes without notice to or consent of any Holder:
(1) to cure any ambiguity, or to correct or supplement any
provision in this Indenture or the Notes or make any other provisions
with respect to matters or questions arising under this Indenture or
the Notes; provided that, in each case, such provisions shall not
adversely affect the interest of the Holders;
(2) to provide for uncertificated Notes in addition to or in
place of certificated Notes;
(3) to provide for the assumption by a successor corporation
of the Company's obligations under this Indenture;
(4) to add guarantees with respect to the Notes;
(5) to secure the Notes;
-48-
(6) to add to the covenants of the Company or the Events of
Default for the benefit of Holders;
(7) to surrender any right or power conferred on the Company;
or
(8) to make any other change that does not adversely affect
the rights of any Holder or to comply with any requirement of the
Commission in connection with the qualification of this Indenture under
the Trust Indenture Act.
Section 8.02. With Consent of Holders.
-----------------------
Subject to Section 6.07 hereof, the Company and the Trustee
may modify, amend or supplement this Indenture or the Notes with the written
consent of the Holders of a majority in principal amount of the then outstanding
Notes (including consents obtained in connection with a tender offer or exchange
offer for, or purchase of, the Notes). Subject to Sections 6.04 and 6.07 hereof,
the Holders of a majority in principal amount of the then outstanding Notes may
waive compliance by the Company with any provision of this Indenture or the
Notes. However, without the consent of each Holder affected (including consents
obtained in connection with a tender offer or exchange offer for, or purchase
of, the Notes), a modification, amendment, supplement or waiver, including a
waiver pursuant to Section 6.04 hereof, may not:
(1) change the Stated Maturity of the principal of, or any
installment of interest on, such Note or alter the optional redemption
provisions thereof;
(2) reduce the principal amount of, or premium, if any, or
interest on, such Note or extend the time of payments under the Notes;
(3) modify the subordination provisions in this Indenture in a
manner adverse to the Holder (including any modification of the
definition of Senior Indebtedness);
(4) change the place or currency of payment of principal of,
or premium, if any, or interest on, such Note;
(5) alter the provisions with respect to the obligation of the
Company to make a Change of Control Offer in accordance with Section
4.15 hereof or to make an Asset Sale Offer in accordance with Section
4.12 hereof;
(6) impair the right to institute suit for the enforcement of
any payment on or with respect to such Note; or
(7) reduce the percentage in principal amount of outstanding
Notes, the consent of whose Holders is required for modification or
amendment of this Indenture or for waiver of compliance with certain
provisions of this Indenture or for waiver of certain Defaults or
Events of Default.
After an amendment, supplement or waiver under this Section
8.02 becomes effective, the Company shall mail to the Holders a notice briefly
describing the amendment, supplement or waiver. Any failure of the Company to
mail such notice, or any defect therein, shall not, however, in any way impair
or affect the validity of any such supplemental indenture.
-49-
Upon the request of the Company, accompanied by a Board
Resolution authorizing the execution of any such supplemental indenture, and
upon the receipt by the Trustee of evidence reasonably satisfactory to the
Trustee of the consent of the Holders as aforesaid and upon receipt by the
Trustee of the documents described in Section 8.06 hereof, the Trustee shall
join with the Company in the execution of such supplemental indenture unless
such supplemental indenture affects the Trustee's own rights, duties or
immunities under this Indenture, in which case the Trustee may in its own
discretion, but shall not be obligated to, enter into such supplemental
indenture.
It shall not be necessary for the consent of the Holders under
this Section 8.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
Section 8.03. Compliance with TIA.
-------------------
Every amendment to or supplement of this Indenture or the
Notes shall comply with the TIA as then in effect.
Section 8.04. Revocation and Effect of Consents.
---------------------------------
Until an amendment, waiver or supplement becomes effective, a
consent to it by a Holder is a continuing consent by the Holder and every
subsequent Holder of a Note or portion of a Note that evidences the same debt as
the consenting Holder's Note, even if notation of the consent is not made on any
Note. Subject to the following paragraph, any such Holder or subsequent Holder
may revoke the consent as to such Holder's Note or portion of such Note by
notice to the Trustee or the Company received before the date on which the
Trustee receives an Officers' Certificate certifying that the Holders of the
requisite principal amount of Notes have consented (and not theretofore revoked
such consent) to the amendment, supplement or waiver.
The Company may, but shall not be obligated to, fix a Record
Date for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver. If a Record Date is fixed, then notwithstanding
the last sentence of the immediately preceding paragraph, those Persons who were
Holders at such Record Date (or their duly designated proxies), and only those
Persons, shall be entitled to revoke any consent previously given, whether or
not such Persons shall continue to be Holders after such Record Date. No such
consent shall be valid or effective for more than 90 days after such Record
Date.
After an amendment, supplement or waiver becomes effective, it
shall bind every Holder, unless it makes a change described in any of clauses
(1) through (7) of Section 8.02 hereof, in which case, the amendment, supplement
or waiver shall bind only each Holder of a Note who has consented to it and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder's Note; provided that any such waiver shall not
impair or affect the right of any Holder to receive payment of principal of and
interest on a Note, on or after the respective due dates expressed in such Note,
or to bring suit for the enforcement of any such payment on or after such
respective dates without the consent of such Holder.
Section 8.05. Notation on or Exchange of Notes.
--------------------------------
If an amendment, supplement, or waiver changes the terms of a
Note, the Trustee may request the Holder to deliver it to the Trustee. In such
case, the Trustee shall place an appropriate notation on the Note about the
changed terms and return it to the Holder. Alternatively, if the Company or the
Trustee so determine, in exchange for the Note the Company shall issue and the
Trustee shall authenticate a new Note that reflects the
-50-
changed terms. 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 8.06. Trustee To Sign Amendments, etc.
-------------------------------
The Trustee shall be entitled to receive, and shall be fully
protected in relying upon, an Officers' Certificate and an Opinion of Counsel
stating that the execution of any amendment, supplement or waiver authorized
pursuant to this Article 8 is authorized or permitted by this Indenture and that
such amendment, supplement or waiver constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms (subject to
customary exceptions). The Trustee may, but shall not be obligated to, execute
any such amendment, supplement or waiver which affects the Trustee's own rights,
duties or immunities under this Indenture or otherwise.
ARTICLE 9
DISCHARGE OF INDENTURE; DEFEASANCE
Section 9.01. Satisfaction and Discharge of Indenture.
---------------------------------------
This Indenture shall be discharged and shall cease to be of
further effect (except those obligations referred to in the penultimate
paragraph of this Section 9.01) and the Trustee, on written demand of and at the
expense of the Company, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when either:
(a) all Notes theretofore authenticated and delivered (other
than (i) Notes which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 2.07 hereof and (ii) Notes
for whose payment money has theretofore been deposited in trust or
segregated and held in trust by the Company and thereafter repaid to
the Company or discharged from such trust) have been delivered to the
Trustee for cancellation; or
(b) (i) either (A) pursuant to Article 3 hereof, the Company
shall have given notice to the Trustee and mailed a notice of
redemption to each Holder of the redemption of all of the Notes under
arrangements satisfactory to the Trustee for the giving of such notice
or (B) all Notes not theretofore delivered to the Trustee for
cancellation have become due and payable; (ii) the Company has
irrevocably deposited or caused to be deposited with the Trustee in
trust for the purpose an amount in U.S. legal tender sufficient to pay
and discharge the entire Indebtedness on such Notes not theretofore
delivered to the Trustee for cancellation, for the principal of,
premium, if any, and interest to the date of such deposit; (iii) no
Default or Event of Default with respect to this Indenture or the Notes
shall have occurred and be continuing on the date of such deposit or
shall occur as a result of such deposit and such deposit will not
result in a breach or violation of, or constitute a default under, any
other material instrument to which the Company is a party or by which
it is bound (other than a Default or Event of Default resulting from
the incurrence of Indebtedness, all or a portion of which will be used
to defease the Notes concurrently with such incurrence); (iv) the
Company has paid or caused to be paid all other sums payable hereunder
by the Company; and (v) the Company has delivered to the Trustee
(A) irrevocable instructions to apply the deposited money toward
payment of the Notes at the Stated Maturity thereof, and (B) an
Officers' Certificate and an Opinion of Counsel each stating that all
conditions precedent herein provided for relating to the satisfaction
and discharge of this Indenture have
-51-
been complied with and that such satisfaction and discharge does not
result in a default under any material agreement or instrument then
known to such counsel which binds or affects the Company.
Notwithstanding the foregoing paragraph, the Company's
obligations in Article 2 and Sections 4.01, 4.07, 7.07 and 8.06 hereof shall
survive until the Notes are no longer outstanding pursuant to the last paragraph
of Section 2.08 hereof. After the Notes are no longer outstanding pursuant to
Section 2.08 hereof, the Company's obligations under Section 7.07 and 8.06 shall
survive.
After such delivery or irrevocable deposit, the Trustee upon
request shall acknowledge in writing the discharge of the Company's obligations
under the Notes and this Indenture except for those surviving obligations
specified above.
Section 9.02. Legal Defeasance.
----------------
(a) The Company may, at its option by a Board Resolution of
the Board of Directors of the Company, at any time, elect to have this Section
9.02 be applied to all outstanding Notes upon compliance with the conditions set
forth in Section 9.04 hereof.
(b) Upon the Company's exercise under paragraph (a) hereof of
the option applicable to this paragraph (b), the Company shall, subject to the
satisfaction of the conditions set forth in Section 9.04 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 the Company shall be
deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Notes, which shall thereafter be deemed to be "outstanding" only for
the purposes of Section 9.05 hereof and the other Sections of this Indenture
referred to in clauses (i) and (ii) below, and to have satisfied all its other
obligations under such Notes and this Indenture (and the Trustee, on demand of
and at the expense of the Company, shall execute proper instruments
acknowledging the same), and Holders and any amounts deposited under Section
9.04 hereof shall cease to be subject to any obligations to, or the rights of,
any holder of Senior Indebtedness under Article 10 or otherwise, except for the
following provisions, which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of outstanding Notes to receive,
solely from the trust fund described in Section 9.05 hereof and as more fully
set forth in such Section, payments in respect of the principal of, premium, if
any, and interest on such Notes when such payments are due on the Stated
Maturity thereof (or, upon redemption, if applicable), (ii) the Company's
obligations with respect to such Notes under Article 2 and Section 4.07 hereof,
(iii) the rights, powers, trusts, duties and immunities of the Trustee hereunder
and the Company's obligations in connection therewith and (iv) this Article 9.
Subject to compliance with this Article 9, the Company may exercise its option
under this Section 9.02 notwithstanding the prior exercise of its option under
Section 9.03 below with respect to the Notes.
Section 9.03. Covenant Defeasance.
-------------------
(a) The Company may, at its option by a Board Resolution of
the Board of Directors of the Company, at any time, elect to have this Section
9.03 be applied to all outstanding Notes upon compliance with the conditions set
forth in Section 9.04 hereof.
(b) Upon the Company's exercise under paragraph (a) hereof of
the option applicable to this paragraph (b), the Company shall, subject to the
satisfaction of the conditions set forth in Section 9.04 hereof, be released
from its obligations under the covenants contained in Sections 4.05, 4.08 and
4.09 through 4.17, inclusive, and Article 5 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
-52-
"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 and Holders and any amounts deposited under Section 9.04 hereof shall
cease to be subject to any obligations to, or the rights of, any holder of
Senior Indebtedness under Article 10 or otherwise. For this purpose, such
Covenant Defeasance means that, with respect to the outstanding Notes, the
Company may omit to comply with and shall have no liability in respect of any
term, condition or limitation set forth in any such covenant, whether directly
or indirectly, by reason of any reference elsewhere herein to any such covenant
or by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply shall not constitute a
Default or an Event or Default under Section 6.01(c) or 6.01(d) hereof, but,
except as specified above, the remainder of this Indenture, and such Notes shall
be unaffected thereby. In addition, upon the Company's exercise under paragraph
(a) hereof of the option applicable to this paragraph (b), subject to the
satisfaction of the conditions set forth in Section 9.04 hereof, Sections
6.01(c), 6.01(d), 6.01(e) and 6.01(f) shall not constitute Events of Default.
Section 9.04. Conditions to Legal Defeasance or Covenant Defeasance.
-----------------------------------------------------
The following shall be the conditions to the application of
either Section 9.02 or 9.03 hereof to the outstanding Notes:
In order to exercise either Legal Defeasance or Covenant
Defeasance:
(a) the Company must irrevocably deposit or cause to be
deposited with the Trustee, as trust funds in trust, specifically
pledged as security for, and dedicated solely to, the benefit of the
Holders, cash in U.S. dollars, or U.S. Government Obligations, or in
the case of Covenant Defeasance, corporate obligations rated at least
"A" by Standard & Poor's Ratings Group or at least "A" by Xxxxx'x
Investors Service, Inc. or a combination thereof, in such amounts as
will be sufficient, in the opinion of a nationally recognized firm of
independent public accountants, to pay and discharge the principal of,
premium, if any, and interest on the outstanding Notes on the Stated
Maturity thereof (or upon redemption, if applicable) of such principal,
premium, if any, or installment of interest;
(b) no Default or Event of Default with respect to the Notes
shall have occurred and be continuing on the date of such deposit or,
insofar as an event of bankruptcy under clauses (g) or (h) of Section
6.01 hereof is concerned, at any time during the period ending on the
91st day after the date of such deposit;
(c) such Legal Defeasance or Covenant Defeasance shall not
result in a breach or violation of, or constitute a default under, this
Indenture or any material agreement or instrument to which the Company
is a party or by which it is bound;
(d) in the case of Legal Defeasance, the Company shall have
delivered to the Trustee an Opinion of Counsel stating that the Company
has received from, or there has been published by, the Internal Revenue
Service a ruling, or since the Issue Date, there has been a change in
applicable federal income tax law, in either case to the effect that,
and based thereon such opinion shall confirm that, the Holders of the
outstanding Notes of such series will not recognize income, gain or
loss for federal income tax purposes as a result of such defeasance and
will be subject to federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such
defeasance had not occurred; and
-53-
(e) in the case of Covenant Defeasance, the Company shall have
delivered to the Trustee an Opinion of Counsel to the effect that the
Holders of outstanding Notes of such series will not recognize income,
gain or loss for federal income tax purposes as a result of such
defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been
the case if such defeasance had not occurred; and
(f) the Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for relating to either the Legal
Defeasance or the Covenant Defeasance, as the case may be, have been
complied with.
Section 9.05. Application of Trust Money.
--------------------------
All money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 9.01 or 9.04 hereof in respect of the outstanding
Notes shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any 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 accrued interest, but such money need not be segregated
from other funds except to the extent required by law.
Anything in this Article 9 to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon a written
request of the Company in the form of an Officers' Certificate any money or U.S.
Government Obligations held by it as provided in Section 9.01 or 9.04 hereof
which, in the opinion of a nationally-recognized firm of independent public
accountants expressed in a written certification thereof delivered to the
Trustee, are in excess of the amount thereof which would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.
Section 9.06. Repayment to the Company.
------------------------
Subject to Sections 9.01, 9.,02, 9.03, 9.04, 9.05 and 9.07,
the Trustee and the Paying Agent shall promptly pay to the Company upon request
any excess U.S. legal tender or U.S. Government Obligations held by them at any
time and thereupon shall be relieved from all liability with respect to such
money. The Trustee and the Paying Agent shall pay to the Company upon request
any money held by them for the payment of principal, premium, if any, or
interest that remains unclaimed for two years; provided that the Trustee or such
Paying Agent, before being required to make any payment, may at the expense of
the Company cause to be published once in a newspaper of general circulation in
the City of New York or mail to each Holder entitled to such money notice that
such money remains unclaimed, and that after a date specified therein which
shall be at least 30 days from the date of such publication or mailing, any
unclaimed balance of such money then remaining will be repaid to the Company.
After payment to the Company, Holders entitled to such money must look to the
Company for payment as general creditors unless an applicable law designates
another Person.
Section 9.07. Reinstatement.
-------------
If the Trustee or Paying Agent is unable to apply any money or
U.S. Government Obligations in accordance with Section 9.01, 9.02 or 9.03 hereof
by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company's obligations under this Indenture and the Notes
shall be revived and reinstated as though no deposit had occurred pursuant to
this Article 9 until such time as the Trustee or Paying Agent is permitted to
apply all such money and U.S. Government Obligations in accordance with Section
9.01 hereof; provided, however, that if the Company has made any payment of
principal of, premium, if any, or accrued
-54-
interest on any Notes because of the reinstatement of their obligations, the
Company shall be subrogated to the rights of the Holders of such Notes to
receive such payment from the money and U.S. Government Obligations held by the
Trustee or Paying Agent.
ARTICLE 10
SUBORDINATION
Section 10.01. Agreement To Subordinate.
------------------------
The Company agrees, and each Holder by accepting a Note
agrees, that the Indebtedness evidenced by the Notes and the payment of
principal of, and premium, if any, and interest (including Additional Interest)
thereof are subordinated in right of payment, to the extent and in the manner
provided in this Article 10, to the prior payment in full in cash when due of
the principal of, and premium if any, and accrued and unpaid interest on and all
other amounts owing in respect of all Senior Indebtedness of the Company and
that the subordination is for the benefit of the holders of Senior Indebtedness
of the Company.
Money and U.S. Government Obligations held in trust pursuant
to Article 9 are not subject to the subordination provisions of this Article 10.
Section 10.02. Liquidation; Dissolution; Bankruptcy.
------------------------------------
Upon any payment or distribution to creditors of the Company
of the assets of the Company of any kind or character in a total or partial
liquidation or dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company, whether
voluntary or involuntary (including any assignment for the benefit of creditors
and proceedings for marshaling of assets and liabilities of the Company), the
holders of all Senior Indebtedness of the Company then outstanding will be
entitled to payment in full in cash before the Holders are entitled to receive
any payment (other than payments made from a trust previously established
pursuant to provisions described under Article 9 hereof) on or with respect to
the Notes and, until all Senior Indebtedness receives payment in full in cash,
any distribution to which the Holders would be entitled will be made to holders
of Senior Indebtedness.
Section 10.03. Company Not To Make Payments with Respect to
Notes in Certain Circumstances.
--------------------------------------------
Upon the occurrence of any default in the payment of any
principal of or interest on or other amounts due on any Senior Indebtedness of
the Company in excess of $5,000,000 beyond any applicable grace period (a
"Payment Default"), no payment of any kind or character shall be made by the
Company (or by any other Person on its behalf) with respect to the Notes unless
and until (i) such Payment Default shall have been cured or waived in accordance
with the instruments governing such Senior Indebtedness or shall have ceased to
exist, (ii) such Senior Indebtedness shall have been discharged or paid in full
in cash in accordance with the instruments governing such Senior Indebtedness or
(iii) the benefits of this sentence have been waived by the holders of such
Senior Indebtedness or their representative, immediately after which the Company
must resume making any and all required payments, including missed payments, in
respect of its obligations under the Notes.
Upon (1) the occurrence and continuance of an event of default
(other than a Payment Default) relating to Designated Senior Indebtedness of the
Company, as such event of default is defined therein or in the
-55-
instrument or agreement under which it is outstanding, which event of default,
pursuant to the instruments governing such Designated Senior Indebtedness,
entitles the holders (or a specified portion of the holders) of such Designated
Senior Indebtedness or their designated representative to accelerate (either
immediately or with the passage of time or the giving of notice or both) the
Stated Maturity of such Designated Senior Indebtedness (whether or not such
acceleration has actually occurred) (a "Non-payment Default") and (2) the
receipt by the Trustee and the Company from the trustee or other representative
of holders of such Designated Senior Indebtedness of written notice (a "Payment
Blockage Notice") of such occurrence, no payment is permitted to be made by the
Company (or by any other Person on its behalf) in respect of the Notes for a
period (a "Payment Blockage Period") commencing on the date of receipt by the
Trustee of such notice and ending on the earliest to occur of the following
events (subject to any blockage of payments that may then be in effect due to a
Payment Default on Senior Indebtedness): (v) the acceleration of the maturity of
any Indebtedness (other than Senior Indebtedness) by virtue of the event that
resulted in such Payment Blockage Period; (w) such Non-payment Default has been
cured or waived or has ceased to exist; (x) a 179-consecutive-day period
commencing on the date such written notice is received by the Trustee has
elapsed; (y) such Payment Blockage Period has been terminated by written notice
to the Trustee from the trustee or other representative of holders of such
Designated Senior Indebtedness, whether or not such Non-payment Default has been
cured or waived or has ceased to exist; and (z) such Designated Senior
Indebtedness has been discharged or paid in full in cash, immediately after
which, in the case of clause (v), (w), (x), (y) or (z), the Company must resume
making any and all required payments, including missed payments, in respect of
its obligations under the Notes. Notwithstanding the foregoing, (a) not more
than one Payment Blockage Period may be commenced in any period of 365
consecutive days and (b) no default or event of default with respect to the
Designated Senior Indebtedness of the Company that was the subject of a Payment
Blockage Notice which existed or was continuing on the date of the giving of any
Payment Blockage Notice shall be or serve as the basis for the giving of a
subsequent Payment Blockage Notice whether or not within a period of 365
consecutive days unless such default or event of default shall have been cured
or waived for a period of at least 90 consecutive days after such date.
Regardless of anything to the contrary herein, nothing shall
prevent (a) any payment by the Trustee to the Holders of amounts deposited with
it pursuant to Article 9 or (b) any payment by the Trustee or the Paying Agent
as permitted by Section 10.11 hereof.
Section 10.04. Acceleration of Notes.
---------------------
If payment of the Notes is accelerated because of an Event of
Default, the Company shall promptly notify holders of Senior Indebtedness of the
Company of the acceleration.
Section 10.05. When Distribution Must Be Paid Over.
-----------------------------------
In the event that, notwithstanding the foregoing, any payment
or distribution of assets of the Company, whether in cash, property or
securities, shall be received by the Trustee or the Holders at a time when such
payment or distribution is prohibited by the foregoing provisions, such payment
or distribution shall be segregated from other funds or assets and held in trust
for the benefit of the holders of Senior Indebtedness of the Company and shall
be paid or delivered by the Trustee or such Holders, as the case may be, to the
holders of the Senior Indebtedness of the Company remaining unpaid or unprovided
for or their representative or representatives, or to the trustee or trustees
under any indenture pursuant to which any instruments evidencing any of such
Senior Indebtedness of the Company may have been issued, ratably according to
the aggregate amounts remaining unpaid on account of the Senior Indebtedness of
the Company held or represented by each, for application to the payment of all
Senior Indebtedness of the Company remaining unpaid, to the extent necessary to
pay or to provide for the payment in full in cash of all such Senior
Indebtedness after giving effect to any concurrent payment or distribution to
the holders of such Senior Indebtedness.
-56-
Notwithstanding the foregoing, Holders may receive and retain
payment from the money or the proceeds held in any defeasance trust described
under Article 9, and no such receipt or retention will be contractually
subordinated in right of payment to any Senior Indebtedness or subject to the
restrictions described in this Article 10.
Section 10.06. Notice by Company.
-----------------
The Company shall promptly notify the Trustee and the Paying
Agent in writing of any facts known to the Company that would cause a payment of
principal of or interest on Notes to violate this Article 10, but failure to
give such notice shall not affect the subordination of the Notes to the Senior
Indebtedness of the Company provided in this Article 10.
Section 10.07. Subrogation.
-----------
After all Senior Indebtedness of the Company is paid in full
and until the Notes are paid in full, Holders shall be subrogated to the rights
of holders of Senior Indebtedness of the Company to receive distributions
applicable to Senior Indebtedness of the Company to the extent that
distributions otherwise payable to the Holders have been applied to the payment
of Senior Indebtedness of the Company. A distribution made under this Article 10
to holders of Senior Indebtedness of the Company which otherwise would have been
made to Holders is not, as between the Company and Holders, a payment by the
Company on Senior Indebtedness.
Section 10.08. Relative Rights.
---------------
This Article 10 defines the relative rights of Holders and
holders of Senior Indebtedness. Nothing in this Indenture shall:
(1) impair, as between the Company and Holders, the obligation
of the Company, which is absolute and unconditional, to pay principal
of, premium, if any, and interest on the Notes in accordance with their
terms;
(2) affect the relative rights of Holders and creditors of the
Company other than holders of Senior Indebtedness of the Company; or
(3) prevent the Trustee or any Holder from exercising its
available remedies upon a Default or Event of Default, subject to the
rights of holders of Senior Indebtedness of the Company to receive
distributions otherwise payable to Holders.
Section 10.09. Subordination May Not Be Impaired by the Company.
------------------------------------------------
No right of any holder of Senior Indebtedness of the Company
to enforce the subordination of the indebtedness evidenced by the Notes shall be
impaired by any act or failure to act by the Company or by its failure to comply
with this Indenture.
Section 10.10. Distribution or Notice to Representative.
----------------------------------------
Whenever a distribution is to be made or a notice given to
holders of Senior Indebtedness of the Company, the distribution may be made and
the notice given to their Representatives.
-57-
Section 10.11. Rights of Trustee and Paying Agent.
----------------------------------
The Trustee or Paying Agent may continue to make payments on
the Notes until it receives written notice of facts that would cause a payment
of principal of or interest on the Notes to violate this Article 10. Only the
Company, a Representative or a holder of an issue of Senior Indebtedness of the
Company that has no Representative may give the notice.
The Trustee shall be entitled to conclusively rely on the
delivery to it of a written notice by a person representing himself to be a
holder of Senior Indebtedness of the Company (or a Representative on behalf of
such holder) to establish that such notice has been given by a holder of Senior
Indebtedness of the Company or a Representative on behalf of any such holder.
The Trustee in its individual or any other capacity may hold
Senior Indebtedness of the Company with the same rights it would have if it were
not Trustee. Any Agent may do the same with like rights.
The Trustee shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness of the Company and shall not be liable to any
such holder if it shall mistakenly pay over or distribute to Holders or the
Company or any other person money or assets to which any holders of Senior
Indebtedness of the Company shall be entitled by virtue of this Article 10 or
otherwise.
Section 10.12. Officers' Certificate.
---------------------
If there occurs an event referred to in Section 10.02 or 10.03
hereof, the Company shall promptly give to the Trustee an Officers' Certificate
(on which the Trustee may conclusively rely) identifying all holders of Senior
Indebtedness of the Company or their Representatives and the principal amount of
Senior Indebtedness of the Company then outstanding held by each such holder and
stating the reasons why such Officers' Certificate is being delivered to the
Trustee.
Section 10.13. Obligation of Company Unconditional.
-----------------------------------
Nothing contained in this Article 10 or elsewhere in this
Indenture or in any Note is intended to or shall impair, as between the Company,
its creditors other than holders of Senior Indebtedness of the Company and the
Holders, the obligation of the Company, which is absolute and unconditional, to
pay to the Holders the principal of, premium, if any, and interest on the Notes
as and when the same shall become due and payable in accordance with their
terms, or is intended to or shall affect the relative rights of the Holders and
creditors of the Company other than the holders of the Senior Indebtedness of
the Company, nor shall anything herein or therein prevent the Trustee or the
Holder of any Note from exercising all remedies otherwise permitted by
applicable law upon default under this Indenture, subject to the rights, if any,
under this Article 10 of the holders of Senior Indebtedness of the Company in
respect of cash, property or securities of the Company received upon the
exercise of any such remedy. Upon any distribution of assets of the Company
referred to in this Article 10, the Trustee, subject to the provisions of
Sections 7.01 and 7.02 hereof, and the Holders shall be entitled to conclusively
rely upon any order or decree by any court of competent jurisdiction in which
such dissolution, winding up, liquidation or reorganization proceedings are
pending, or a certificate of the liquidating trustee or agent or other person
making any distribution to the Trustee or the Holders, for the purpose of
ascertaining the persons entitled to participate in such distribution, the
holders of the Senior Indebtedness of the Company and other indebtedness of the
Company, the amount thereof or payable thereon, the amount or amounts paid or
distributed thereon and all other facts pertinent thereto or to this Article 10.
Nothing contained in this Article 10 or elsewhere in this Indenture or in any
Note is intended to or shall affect the obligation of the Company to make, or
prevent the Company from making, at any time except during the pendency of any
dissolution, winding up,
-58-
liquidation or reorganization proceeding, and except during the continuance of
any default specified in Section 10.03 hereof (not cured or waived), payments at
any time of the principal or of interest on the Notes.
Section 10.14. Article 10 Not To Prevent Events of Default.
-------------------------------------------
The failure to make a payment of principal of, premium, if
any, or interest on the Notes by reason of any provision of this Article Ten
shall not be construed as preventing the occurrence of an Event of Default under
Section 6.01 hereof.
ARTICLE 11
MISCELLANEOUS
Section 11.01. TIA Controls.
------------
If any provision of this Indenture limits, qualifies or
conflicts with another provision which is required to be included in this
Indenture by the TIA, the required provision shall control.
Section 11.02. Notices.
-------
Any notices or other communications required or permitted
hereunder shall be in writing, and shall be sufficiently given if made by hand
delivery, by telecopier or registered or certified mail, postage prepaid, return
receipt requested, addressed as follows:
If to the Company:
HEALTHSOUTH Corporation
Xxx XxxxxxXxxxx Xxxxxxx
Xxxxxxxxxx, Xxxxxxx 00000
Telephone No.: (000) 000-0000
Facsimile No.: (000) 000-0000
Attention: Xxxxxxx X. Xxxxxx
If to the Trustee:
The Bank of New York
000 Xxxxxxx Xxxxxx, Xxxxx 00 Xxxx
Xxx Xxxx, Xxx Xxxx 00000
Telephone No.: (000) 000-0000
Facsimile No.: (000) 000-0000
Attention: Corporate Trust Trustee Administration
The Company or the Trustee by written notice to the others may
designate additional or different addresses for subsequent notices or
communications. Any notice or communication to the Company or the Trustee, shall
be deemed to have been given or made when actually received.
-59-
Any notice or communication mailed to a Holder shall be mailed
by first-class mail, postage prepaid, at the address shown on the register kept
by the Registrar.
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 to a Holder is mailed in the manner provided above, it
shall be deemed duly given, whether or not the addressee receives it.
In case by reason of the suspension of regular mail service,
or by reason of any other cause, it shall be impossible to mail any notice as
required by this Indenture, then such method of notification as shall be made
with the approval of the Trustee shall constitute a sufficient mailing of such
notice.
Section 11.03. Communications by Holders with Other Holders.
--------------------------------------------
Holders may communicate pursuant to TIA Section 312(b) with
other Holders with respect to their rights under this Indenture or the Notes.
The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA Section 312(c).
Section 11.04. Certificate and Opinion as to Conditions Precedent.
--------------------------------------------------
Upon any request or application by the Company to the Trustee
to take any action under this Indenture, the Company shall furnish to the
Trustee:
(1) an Officers' Certificate (which shall include the
statements set forth in Section 11.05 hereof) stating that, in the
opinion of the signers, all conditions precedent, if any, provided for
in this Indenture relating to the proposed action have been complied
with; and
(2) an Opinion of Counsel (which shall include the statements
set forth in Section 11.05 hereof) stating that, in the opinion of such
counsel, all such conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with.
Section 11.05. Statements Required in Certificate and Opinion.
----------------------------------------------
Each certificate and opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(1) a statement that the person making such certificate or
opinion has read such covenant or condition and the definitions
relating thereto;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
(3) a statement that, in the opinion of such person, it or he
has made such examination or investigation as is reasonably necessary
to enable such person to express an informed opinion as to whether or
not such covenant or condition has been complied with; and
(4) a statement as to whether or not, in the opinion of such
person, such covenant or condition has been complied with; provided,
however, that with respect to matters of fact, an Opinion of Counsel
may rely on an Officers' Certificate or certificates of public
officials.
-60-
Section 11.06. Rules by Trustee and Agents.
---------------------------
The Trustee may make reasonable rules for action by or at
meetings of Holders. The Registrar and Paying Agent may make reasonable rules
for their functions.
Section 11.07. Business Days; Legal Holidays.
-----------------------------
A "Business Day" is a day that is not a Legal Holiday. A
"Legal Holiday" is a Saturday, a Sunday, a federally-recognized holiday or a day
on which banking institutions are not required to be open in the State of New
York. If a payment date is a Legal Holiday at a place of payment, payment may 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.
Section 11.08. Governing Law.
-------------
THIS INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO
THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE OR THE NOTES.
Section 11.09. Waiver of Trial by Jury.
-----------------------
The Company hereby irrevocably waives any and all rights to
trial by jury in any legal proceeding arising out of or relating to this
Indenture.
Section 11.10. Submission to Jurisdiction.
--------------------------
The Company hereby consents to the non-exclusive jurisdiction
of a state or federal court situated in New York City, New York in connection
with any dispute arising hereunder or under the Notes. The Company hereby
irrevocably waives, to the fullest extent permitted by applicable law, any
objection which it may now or hereafter have to the laying of venue of any such
proceeding brought in such a court and any claim that such proceeding brought in
such a court has been brought in an inconvenient forum.
Section 11.11. No Adverse Interpretation of Other Agreements.
---------------------------------------------
This Indenture may not be used to interpret another indenture,
loan, security or debt agreement of the Company or any Subsidiary thereof. No
such indenture, loan, security or debt agreement may be used to interpret this
Indenture.
Section 11.12. No Recourse Against Others.
--------------------------
No incorporator, director, officer, employee, stockholder or
controlling person, as such, of the Company shall have any liability for any
obligations of the Company under the Notes or this Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. By
accepting a Note, each Holder shall waive and release all such liability. The
waiver and release shall be part of the consideration for the issue of the
Notes.
-61-
Section 11.13. Successors.
----------
All agreements of each of the Company in this Indenture and
the Notes shall bind their respective successors. All agreements of the Trustee,
any additional trustee and any Paying Agents in this Indenture shall bind its
successor.
Section 11.14. Multiple Counterparts.
---------------------
The parties may sign multiple counterparts of this Indenture.
Each signed counterpart shall be deemed an original, but all of them together
represent one and the same agreement.
Section 11.15. Table of Contents, Headings, etc.
--------------------------------
The table of contents, cross-reference sheet and headings of
the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.
Section 11.16. Separability.
------------
Each provision of this Indenture shall be considered separable
and if for any reason any provision 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 to the extent allowed by law.
Section 11.17. Translation.
-----------
The original and controlling version of this Indenture and any
related agreements shall be the English language version. All translations of
this Indenture or any agreements related hereto into other languages shall be
for the convenience of the parties only, and shall not control the meaning or
application of this Indenture. All notices and other communications required or
permitted by this Indenture or any other transactional agreement must be in
English or accompanied by an English translation, and the interpretation and
application of such notices and other communications shall be based solely upon
the English language version thereof.
-62-
IN WITNESS WHEREOF, the parties have caused this Indenture to
be duly executed all as of the date and year first written above.
Company:
-------
HEALTHSOUTH CORPORATION
By: /s/ Xxxxxxx X. Xxxxx
---------------------------------------
Xxxxxxx X. Xxxxx
Executive Vice President and
Chief Financial Officer
Trustee:
-------
THE BANK OF NEW YORK,
as Trustee
By: /s/ Xxxxxx X. Xxxxxxxxxx
---------------------------------------
Xxxxxx X. Xxxxxxxxxx
Assistant Vice President
S-1
EXHIBIT A
[FORM OF SERIES A NOTE]
CUSIP No.:
HEALTHSOUTH CORPORATION
10-3/4% SENIOR SUBORDINATED NOTE DUE 2008
No. $
HEALTHSOUTH CORPORATION, a corporation incorporated in
Delaware (the "Company," which term includes any successor entity), for value
received promises to pay to or registered assigns, the principal sum of $ on
October 1, 2008.
Interest Payment Dates: April 1 and October 1, commencing
April 1, 2001.
Record Dates: March 15 and September 15.
Reference is made to the further provisions of this Note
contained herein and the Indenture (as defined), which will for all purposes
have the same effect as if set forth at this place.
A-1
IN WITNESS WHEREOF, the Company has caused this Note to be
signed manually or by facsimile by its duly authorized directors, officers or
other authorized signatories.
HEALTHSOUTH CORPORATION
By:
--------------------------------
Name:
Title:
By:
--------------------------------
Name:
Title:
CERTIFICATE OF AUTHENTICATION
Date: September 25, 2000
This is one of the 10-3/4% Senior Subordinated Notes due 2008
referred to in the within-mentioned Indenture.
THE BANK OF NEW YORK,
as Trustee
By:
--------------------------------
Authorized Signatory
A-2
(REVERSE OF SECURITY)
10-3/4% SENIOR SUBORDINATED NOTE DUE 2008
1. Interest. HEALTHSOUTH CORPORATION, a corporation
incorporated in Delaware (the "Company"), promises to pay interest on the
principal amount of this Note at the rate per annum shown above. Interest on the
Notes will accrue from the most recent date on which interest has been paid or
duly provided for, or if no interest has been paid, from the date of the
original issuance of the Notes. The Company will pay interest semi-annually in
arrears on each Interest Payment Date, commencing April 1, 2001. Interest will
be computed on the basis of a 360-day year comprised of twelve 30-day months.
The Company shall pay interest on overdue principal and on
overdue installments of interest (without regard to any applicable grace
periods) to the extent lawful from time to time on demand at the rate borne by
the Notes.
2. Method of Payment. The Company shall pay interest on the
Notes (except defaulted interest) to the Persons who are the registered Holders
at the close of business on March 15 or September 15 immediately preceding the
Interest Payment Date (whether or not such day is a Business Day) even if the
Notes are canceled on registration of transfer or registration of exchange after
such Record Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. Payments of principal and premium, if any, will be made (on
presentation of such Notes if in certificated form) in U.S. legal tender;
provided, however, that the Company may pay principal, premium, if any, and
interest by check payable in U.S. legal tender. The Company may deliver any such
interest payment by check mailed to the address of the Person entitled thereto
as such address will appear on the security register.
3. Paying Agents and Registrar. Initially, The Bank of New
York, a banking organization organized under the laws of New York (the
"Trustee"), will act as Paying Agent and the Trustee will act as Registrar. The
Company may change any Paying Agents, Registrar or co-Registrar without notice
to the Holders. Neither the Company nor any of its Subsidiaries or Affiliates
may act as Paying Agent but may act as Registrar or co-Registrar.
4. Indenture. The Company issued this Note under an Indenture,
dated as of September 25, 2000 (the "Indenture"), by and among the Company and
the Trustee. This Note is one of a duly authorized issue of Initial Notes of the
Company designated as its 10-3/4% Senior Subordinated Notes due 2008 (the
"Notes"). The Notes include the Initial Notes and the Exchange Notes issued
pursuant to the Indenture. The Initial Notes and the Exchange Notes are treated
as a single class of securities under the Indenture. Capitalized terms herein
are used as defined in the Indenture unless otherwise defined herein. The terms
of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code xx.xx.
77aaa-77bbbb) (the "TIA"), as in effect on the date of the Indenture.
Notwithstanding anything to the contrary herein, the Notes are subject to all
such terms, and Holders of Notes are referred to the Indenture and the TIA for a
statement of them. The Notes are general unsecured obligations of the Company.
A-3
5. Subordination. The Notes are unsecured obligations of the
Company and subordinated in right of payment, in the manner and to the extent
set forth in the Indenture, to the prior payment in full of all Senior
Indebtedness of the Company, whether outstanding on the date of the Indenture or
thereafter created, incurred, assumed or guaranteed. Each Holder by his
acceptance hereof agrees to be bound by such provisions and authorizes and
expressly directs the Trustee, on his behalf, to take such action as may be
necessary or appropriate to effectuate the subordination provided for in the
Indenture and appoints the Trustee his attorney-in-fact for such purposes.
6. Redemption.
----------
(a) Optional Redemption upon an Equity Offering. At any time
prior to October 1, 2003, the Company may redeem up to 35% of the aggregate
principal amount of the Notes outstanding on the Issue Date with the net cash
proceeds of one or more Equity Offerings. The Redemption Price for any such
redemption will be 110.750% of the principal amount of the Notes being redeemed,
plus accrued and unpaid interest and Additional Interest, if any, to the
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. At
least 65% of the aggregate principal amount of the Notes outstanding on the
Issue Date must remain outstanding immediately after any such redemption, and
each such redemption must occur within 60 days after the Equity Offering closes.
(b) Optional Redemption. The Company may redeem the Notes, at
its option, in whole at any time or in part from time to time, on and after
October 1, 2004 at the following Redemption Prices (expressed as percentages of
the principal amount thereof), together with accrued and unpaid interest and
Additional Interest, if any, thereon to the Redemption Date, if redeemed during
the twelve-month period commencing on October 1 of the year set forth below:
Year Percentage
---- ----------
2004.......................................................... 105.375%
2005.......................................................... 103.583%
2006.......................................................... 101.792%
2007 and thereafter........................................... 100.000%
7. Notice of Redemption. Notice of redemption under paragraphs
6(a) and 6(b) of this Note will be mailed at least 30 days but not more than 60
days before the Redemption Date to each Holder of Notes to be redeemed at such
Holder's registered address.
Except as set forth in the Indenture, if monies for the
redemption of the Notes called for redemption shall have been deposited with the
Paying Agent for redemption on such Redemption Date, then the Notes called for
redemption will cease to bear interest from and after such Redemption Date and
the only right of the Holders of such Notes will be to receive payment of the
Redemption Price plus interest accrued through the Redemption Date, if any.
8. Offers to Purchase. The Indenture provides that, after
certain Asset Sales (as defined in the Indenture) and upon the occurrence of a
Change of Control (as defined in the Indenture), and subject to further
limitations contained therein, the Company will make an offer to purchase
certain amounts of the Notes in accordance with the procedures set forth in the
Indenture.
9. Registration Rights. Pursuant to the Registration Rights
Agreement by and between the Company and the Initial Purchasers, the Company
will be obligated to consummate an exchange offer pursuant to which the Holder
of this Note shall have the right to exchange this Note for the Company's Series
B 10-3/4% Senior Subordinated Notes due 2008 (the "Exchange Notes"), at such
time as the Exchange Notes shall have been registered under the Securities Act,
in like principal amount and having terms identical in all material
A-4
respects to the Initial Notes. The Holders of the Initial Notes shall be
entitled to receive certain Additional Interest payments in the event such
exchange offer is not consummated and upon certain other conditions, all
pursuant to and in accordance with the terms of the Registration Rights
Agreement.
10. Denominations; Transfer; Exchange. The Notes are in
definitive, fully registered form, without coupons, in minimum denominations of
$1,000 and in integral multiples thereof. A Holder shall register the transfer
or exchange of Notes in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture. The Registrar
need not register the transfer of or exchange of any Notes or portions thereof
selected for redemption.
11. Persons Deemed Owners. The registered Holder of a Note
shall be treated as the owner of such Note for all purposes.
12. Unclaimed Money. If money for the payment of principal or
interest remains unclaimed for two years, the Trustee and the Paying Agent will
pay the money back to the Company. After that, Holders entitled to money must
look to the Company for payment as general creditors unless an "abandoned
property" law designates another person.
13. Legal Defeasance and Covenant Defeasance. If the Company
at any time deposits with the Trustee U.S. legal tender or other obligations of
the types set forth in the Indenture sufficient to pay the principal of and
interest on the Notes to Stated Maturity or redemption, if applicable, and
complies with the other provisions of the Indenture relating to Legal Defeasance
or Covenant Defeasance, the Company will be discharged from certain provisions
of the Indenture and the Notes (including certain covenants, but excluding its
obligation to pay the principal of and interest on the Notes).
14. Amendments, Supplements, and Waivers. Subject to certain
exceptions, the Indenture or the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in aggregate outstanding
principal amounts of the Notes, and any existing Default or Event of Default or
noncompliance with any provision may be waived with the written consent of the
Holders of a majority in aggregate principal amount of the Notes then
outstanding. Without notice to or consent of any Holder, the parties thereto may
amend or supplement the Indenture or the Notes to, among other things, cure any
ambiguity, defect or inconsistency or make any other change that does not
adversely affect in any material respect the rights of any Holder of a Note.
15. Restrictive Covenants. The Indenture imposes certain
limitations on the ability of the Company and its Subsidiaries to, among other
things, make payments in respect of its Capital Stock, incur additional
Indebtedness, make certain investments, sell assets, enter into transactions
with Affiliates, create Liens, merge or consolidate with or into any other
Person or sell, lease, convey or otherwise dispose of all or substantially all
of its assets or create dividend or other payment restrictions affecting
Subsidiaries of the Company. Such limitations are subject to a number of
important qualifications and exceptions. The Company must report on an annual
basis to the Trustee on compliance with such limitations.
16. Successor. When a Successor assumes, in accordance with
the Indenture, all the obligations of its predecessor under the Notes and the
Indenture, and immediately before and thereafter no Default exists and certain
other conditions are satisfied, the predecessor entity will be released from
those obligations.
17. Defaults and Remedies. Events of Default are set forth in
the Indenture. If an Event of Default (other than an Event of Default with
respect to the Company pursuant to Section 6.01(g) or (h) of the Indenture)
shall have occurred and be continuing, then the Trustee by written notice to the
Company or the Holders of not less than 25% in aggregate principal amount of the
Notes then outstanding may declare to be
A-5
immediately due and payable the entire principal amount of all the Notes then
outstanding plus accrued interest to the date of acceleration; provided,
however, that after such acceleration but before a judgment or decree based on
such acceleration is obtained by the Trustee, the Holders of a majority in
aggregate principal amount of the outstanding Notes by written notice to the
Company and the Trustee may rescind and annul such acceleration and its
consequences if all existing Events of Default, other than the nonpayment of
principal, premium, if any, or interest that has become due solely because of
the acceleration, have been cured or waived. No such rescission shall affect any
subsequent Default or impair any right consequent thereto. In case an Event of
Default with respect to the Company specified in Section 6.01(g) or (h) of the
Indenture occurs, such principal amount, together with premium, if any, and
interest with respect to all of the Notes, shall be due and payable immediately
without any declaration or other act on the part of the Trustee or the Holders
of the Notes.
18. Trustee Dealings with Company. The Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company, and may otherwise deal with
the Company, its Subsidiaries or their respective Affiliates as if it were not
the Trustee.
19. No Recourse Against Others. No incorporator, director,
officer, employee, stockholder or controlling person, as such, of the Company
shall have any liability for any obligations of the Company under the Notes or
the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Note, each Holder shall waive and
release all such liability. The waiver and release shall be part of the
consideration for the issue of the Notes.
20. Authentication. This Note shall not be valid until the
Trustee or Authenticating Agent manually signs the certificate of authentication
on this Note.
21. Multiple Counterparts. The parties may sign multiple
counterparts of this Note. Each signed counterpart shall be deemed an original
but all of them together represent one and the same Note.
22. Governing Law. THIS NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES TO THE INDENTURE HAS AGREED
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.
23. Abbreviations and Defined Terms. Customary abbreviations
may be used in the name of a Holder of a Note 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 (=
Cus-todian), and U/G/M/A (= Uniform Gifts to Minors Act).
24. CUSIP Numbers. The Company has caused CUSIP numbers to be
printed on the Notes as a convenience to the Holders. No representation is made
as to the accuracy of such numbers as printed on the Notes and reliance may be
placed only on the other identification numbers printed hereon.
25. Indenture. Each Holder, by accepting a Note, agrees to be
bound by all of the terms and provisions of the Indenture, as the same may be
amended from time to time.
The Company will furnish to any Holder of a Note upon written
request and without charge a copy of the Indenture which has the text of this
Note in larger type. Requests may be made to: HEALTHSOUTH Corporation, Xxx
XxxxxxXxxxx Xxxxxxx, Xxxxxxxxxx, Xxxxxxx 00000, Telephone No. (000) 000-0000,
Facsimile No. (000) 000-0000, Attention: Xxxxxxx X. Xxxxxx.
A-6
ASSIGNMENT FORM
If you the Holder want to assign this Note, fill in the form
below and have your signature guaranteed:
I or we assign and transfer this Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ,
-------------------------------------------------------------------------------
agent to transfer this Note on the books of the Company. The agent may substit
ute another to act for him.
Date: Signed:
----------------- ----------------------------------------------
(Sign exactly as your name appears on the other
side of this Note)
Medallion Guarantee:
-------------------
A-7
[OPTION OF HOLDER TO ELECT PURCHASE]
If you want to elect to have this Note purchased by the
Company pursuant to Section 4.12 or Section 4.15 of the Indenture, check the
appropriate box:
Section 4.12 |_|
Section 4.15 |_|
If you want to elect to have only part of this Note purchased
by the Company pursuant to Section 4.12 or Section 4.15 of the Indenture, state
the amount you elect to have purchased:
$ ------------------------
Date:
------------------------- --------------------------------------------
NOTICE: The signature on this assignment
must correspond with the name as it appears
upon the face of the within Note in every
particular without alteration or enlargement
or any change whatsoever and be guaranteed
by the endorser's bank or broker.
Medallion Guarantee:
-------------------
A-8
EXHIBIT B
[FORM OF SERIES B NOTE]
CUSIP No.:
HEALTHSOUTH CORPORATION
10-3/4% SENIOR SUBORDINATED NOTE DUE 2008
No. $
HEALTHSOUTH CORPORATION, a corporation incorporated in
Delaware (the "Company," which term includes any successor entity), for value
received promises to pay to or registered assigns, the principal sum of $ on
October 1, 2008.
Interest Payment Dates: April 1 and October 1, commencing
April 1, 2001.
Record Dates: March 15 and September 15.
Reference is made to the further provisions of this Note
contained herein and the Indenture (as defined), which will for all purposes
have the same effect as if set forth at this place.
B-1
IN WITNESS WHEREOF, the Company has caused this Note to be
signed manually or by facsimile by its duly authorized directors, officers or
other authorized signatories.
HEALTHSOUTH CORPORATION
By: --------------------------------
Name:
Title:
By:
--------------------------------
Name:
Title:
CERTIFICATE OF AUTHENTICATION
Date: September 25, 2000
This is one of the 10-3/4% Senior Subordinated Notes due 2008
referred to in the within-mentioned Indenture.
THE BANK OF NEW YORK,
as Trustee
By:
--------------------------------
Authorized Signatory
B-2
(REVERSE OF SECURITY)
10-3/4% SENIOR SUBORDINATED NOTE DUE 2008
1. Interest. HEALTHSOUTH CORPORATION, a corporation
incorporated in Delaware (the "Company"), promises to pay interest on the
principal amount of this Note at the rate per annum shown above. Interest on the
Notes will accrue from the most recent date on which interest has been paid or
duly provided for, or if no interest has been paid, from the date of the
original issuance of the Notes. The Company will pay interest semi-annually in
arrears on each Interest Payment Date, commencing April 1, 2001. Interest will
be computed on the basis of a 360-day year comprised of twelve 30-day months.
The Company shall pay interest on overdue principal and on
overdue installments of interest (without regard to any applicable grace
periods) to the extent lawful from time to time on demand at the rate borne by
the Notes.
2. Method of Payment. The Company shall pay interest on the
Notes (except defaulted interest) to the Persons who are the registered Holders
at the close of business on March 15 or September 15 immediately preceding the
Interest Payment Date (whether or not such day is a Business Day) even if the
Notes are canceled on registration of transfer or registration of exchange after
such Record Date. Holders must surrender Notes to a Paying Agent to collect
principal payments. Payments of principal and premium, if any, will be made (on
presentation of such Notes if in certificated form) in U.S. legal tender;
provided, however, that the Company may pay principal, premium, if any, and
interest by check payable in U.S. legal tender. The Company may deliver any such
interest payment by check mailed to the address of the Person entitled thereto
as such address will appear on the security register.
3. Paying Agents and Registrar. Initially, The Bank of New
York, a banking organization organized under the laws of New York (the
"Trustee"), will act as Paying Agent and the Trustee will act as Registrar. The
Company may change any Paying Agents, Registrar or co-Registrar without notice
to the Holders. Neither the Company nor any of its Subsidiaries or Affiliates
may act as Paying Agent but may act as Registrar or co-Registrar.
4. Indenture. The Company issued this Note under an Indenture,
dated as of September 25, 2000 (the "Indenture"), by and among the Company and
the Trustee. This Note is one of a duly authorized issue of Exchange Notes of
the Company designated as its 10-3/4% Senior Subordinated Notes due 2008 (the
"Notes"). The Notes include the Initial Notes and the Exchange Notes issued
pursuant to the Indenture. The Initial Notes and the Exchange Notes are treated
as a single class of securities under the Indenture. Capitalized terms herein
are used as defined in the Indenture unless otherwise defined herein. The terms
of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code xx.xx.
77aaa-77bbbb) (the "TIA"), as in effect on the date of the Indenture.
Notwithstanding anything to the contrary herein, the Notes are subject to all
such terms, and Holders of Notes are referred to the Indenture and the TIA for a
statement of them. The Notes are general unsecured obligations of the Company.
5. Subordination. The Notes are unsecured obligations of the
Company and subordinated in right of payment, in the manner and to the extent
set forth in the Indenture, to the prior payment in full of all Senior
Indebtedness of the Company, whether outstanding on the date of the Indenture or
thereafter created, incurred, assumed or guaranteed. Each Holder by his
acceptance hereof agrees to be bound by such provisions and authorizes and
expressly directs the Trustee, on his behalf, to take such action as may be
necessary or appropriate to effectuate the subordination provided for in the
Indenture and appoints the Trustee his attorney-in-fact for such purposes.
B-3
6. Redemption.
----------
(a) Optional Redemption upon an Equity Offering. At any time
prior to October 1, 2003, the Company may redeem up to 35% of the aggregate
principal amount of the Notes outstanding on the Issue Date with the net cash
proceeds of one or more Equity Offerings. The Redemption Price for any such
redemption will be 110.750% of the principal amount of the Notes being redeemed,
plus accrued and unpaid interest and Additional Interest, if any, to the
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. At
least 65% of the aggregate principal amount of the Notes outstanding on the
Issue Date must remain outstanding immediately after any such redemption, and
each such redemption must occur within 60 days after the Equity Offering closes.
(b) Optional Redemption. The Company may redeem the Notes, at
its option, in whole at any time or in part from time to time, on and after
October 1, 2004 at the following Redemption Prices (expressed as percentages of
the principal amount thereof), together with accrued and unpaid interest and
Additional Interest, if any, thereon to the date of redemption, if redeemed
during the twelve-month period commencing on October 1 of the year set forth
below:
Year Percentage
---- ----------
2004.......................................................... 105.375%
2005.......................................................... 103.583%
2006.......................................................... 101.792%
2007 and thereafter........................................... 100.000%
7. Notice of Redemption. Notice of redemption under paragraphs
6(a) and 6(b) of this Note will be mailed at least 30 days but not more than 60
days before the Redemption Date to each Holder of Notes to be redeemed at such
Holder's registered address.
Except as set forth in the Indenture, if monies for the
redemption of the Notes called for redemption shall have been deposited with the
Paying Agent for redemption on such Redemption Date, then the Notes called for
redemption will cease to bear interest from and after such Redemption Date and
the only right of the Holders of such Notes will be to receive payment of the
Redemption Price plus interest accrued through the Redemption Date, if any.
8. Offers to Purchase. The Indenture provides that, after
certain Asset Sales (as defined in the Indenture) and upon the occurrence of a
Change of Control (as defined in the Indenture), and subject to further
limitations contained therein, the Company will make an offer to purchase
certain amounts of the Notes in accordance with the procedures set forth in the
Indenture.
9. Denominations; Transfer; Exchange. The Notes are in
definitive, fully registered form, without coupons, in minimum denominations of
$1,000 and in integral multiples thereof. A Holder shall register the transfer
or exchange of Notes in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture. The Registrar
need not register the transfer of or exchange of any Notes or portions thereof
selected for redemption.
10. Persons Deemed Owners. The registered Holder of a Note
shall be treated as the owner of such Note for all purposes.
11. Unclaimed Money. If money for the payment of principal or
interest remains unclaimed for two years, the Trustee and the Paying Agent will
pay the money back to the Company. After that,
B-4
Holders entitled to money must look to the Company for payment as general
creditors unless an "abandoned property" law designates another person.
12. Legal Defeasance and Covenant Defeasance. If the Company
at any time deposits with the Trustee U.S. legal tender or other obligations of
the types set forth in the Indenture sufficient to pay the principal of and
interest on the Notes to Stated Maturity or redemption, if applicable, and
complies with the other provisions of the Indenture relating to Legal Defeasance
or Covenant Defeasance, the Company will be discharged from certain provisions
of the Indenture and the Notes (including certain covenants, but excluding its
obligation to pay the principal of and interest on the Notes).
13. Amendments, Supplements, and Waivers. Subject to certain
exceptions, the Indenture or the Notes may be amended or supplemented with the
written consent of the Holders of at least a majority in aggregate outstanding
principal amounts of the Notes, and any existing Default or Event of Default or
noncompliance with any provision may be waived with the written consent of the
Holders of a majority in aggregate principal amount of the Notes then
outstanding. Without notice to or consent of any Holder, the parties thereto may
amend or supplement the Indenture or the Notes to, among other things, cure any
ambiguity, defect or inconsistency or make any other change that does not
adversely affect in any material respect the rights of any Holder of a Note.
14. Restrictive Covenants. The Indenture imposes certain
limitations on the ability of the Company and its Subsidiaries to, among other
things, make payments in respect of its Capital Stock, incur additional
Indebtedness, make certain investments, sell assets, enter into transactions
with Affiliates, create Liens, merge or consolidate with or into any other
Person or sell, lease, convey or otherwise dispose of all or substantially all
of its assets or create dividend or other payment restrictions affecting
Subsidiaries of the Company. Such limitations are subject to a number of
important qualifications and exceptions. The Company must report on an annual
basis to the Trustee on compliance with such limitations.
15. Successor. When a Successor assumes, in accordance with
the Indenture, all the obligations of its predecessor under the Notes and the
Indenture, and immediately before and thereafter no Default exists and certain
other conditions are satisfied, the predecessor entity will be released from
those obligations.
16. Defaults and Remedies. Events of Default are set forth in
the Indenture. If an Event of Default (other than an Event of Default with
respect to the Company pursuant to Section 6.01(g) or (h) of the Indenture)
shall have occurred and be continuing, then the Trustee by written notice to the
Company or the Holders of not less than 25% in aggregate principal amount of the
Notes then outstanding may declare to be immediately due and payable the entire
principal amount of all the Notes then outstanding plus accrued interest to the
date of acceleration; provided, however, that after such acceleration but before
a judgment or decree based on such acceleration is obtained by the Trustee, the
Holders of a majority in aggregate principal amount of the outstanding Notes by
written notice to the Company and the Trustee may by written notice to the
Company and the Trustee rescind and annul such acceleration and its consequences
if all existing Events of Default, other than the nonpayment of principal,
premium, if any, or interest that has become due solely because of the
acceleration, have been cured or waived. No such rescission shall affect any
subsequent Default or impair any right consequent thereto. In case an Event of
Default with respect to the Company specified in Section 6.01(g) or (h) of the
Indenture occurs, such principal amount, together with premium, if any, and
interest with respect to all of the Notes, shall be due and payable immediately
without any declaration or other act on the part of the Trustee or the Holders
of the Notes.
17. Trustee Dealings with Company. The Trustee under the
Indenture, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company, and may otherwise deal with
the Company, its Subsidiaries or their respective Affiliates as if it were not
the Trustee.
B-5
18. No Recourse Against Others. No incorporator, director,
officer, employee, stockholder or controlling person, as such, of the Company
shall have any liability for any obligations of the Company under the Notes or
the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. By accepting a Note, each Holder shall waive and
release all such liability. The waiver and release shall be part of the
consideration for the issue of the Notes.
19. Authentication. This Note shall not be valid until the
Trustee or Authenticating Agent manually signs the certificate of authentication
on this Note.
20. Multiple Counterparts. The parties may sign multiple
counterparts of this Note. Each signed counterpart shall be deemed an original
but all of them together represent one and the same Note.
21. Governing Law. THIS NOTE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES TO THE INDENTURE HAS AGREED
TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY
ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE.
22. Abbreviations and Defined Terms. Customary abbreviations
may be used in the name of a Holder of a Note 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).
23. CUSIP Numbers. The Company has caused CUSIP numbers to be
printed on the Notes as a convenience to the Holders. No representation is made
as to the accuracy of such numbers as printed on the Notes and reliance may be
placed only on the other identification numbers printed hereon.
24. Indenture. Each Holder, by accepting a Note, agrees to be
bound by all of the terms and provisions of the Indenture, as the same may be
amended from time to time.
The Company will furnish to any Holder of a Note upon written
request and without charge a copy of the Indenture which has the text of this
Note in larger type. Requests may be made to: HEALTHSOUTH Corporation, Xxx
XxxxxxXxxxx Xxxxxxx, Xxxxxxxxxx, Xxxxxxx 00000, Telephone No. (000) 000-0000,
Facsimile No. (000) 000-0000, Attention: Xxxxxxx X. Xxxxxx.
B-6
ASSIGNMENT FORM
If you the Holder want to assign this Note, fill in the form
below and have your signature guaranteed:
I or we assign and transfer this Note to:
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code and
social security or tax ID number of assignee)
and irrevocably appoint ,
--------------------------------------------------------
agent to transfer this Note on the books of the Company. The agent may
substitute another to act for him.
Date: Signed:
------------------------ ---------------------------------------
(Sign exactly as your name appears on the other
side of this Note)
Medallion Guarantee: ____________________
B-7
[OPTION OF HOLDER TO ELECT PURCHASE]
If you want to elect to have this Note purchased by the
Company pursuant to Section 4.12 or Section 4.15 of the Indenture, check the
appropriate box:
Section 4.12 |_|
Section 4.15 |_|
If you want to elect to have only part of this Note purchased
by the Company pursuant to Section 4.12 or Section 4.15 of the Indenture, state
the amount you elect to have purchased:
$ ----------------------
Date:
-------------------------- --------------------------------------------
NOTICE: The signature on this assignment
must correspond with the name as it appears
upon the face of the within Note in every
particular without alteration or enlargement
or any change whatsoever and be guaranteed
by the endorser's bank or broker.
Medallion Guarantee: ___________________
B-8
EXHIBIT C
CERTIFICATE TO BE DELIVERED UPON EXCHANGE
OR REGISTRATION OF TRANSFER OF SECURITIES
Re: HEALTHSOUTH Corporation (the "Company")
10-3/4% Senior Subordinated Notes due 2008 (the "Notes")
--------------------------------------------------------
This Certificate relates to $_______ principal amount of Notes
held in the form of* ___ a beneficial interest in a Global Note or* _______
Certificated Notes by ______ (the "Transferor").
The Transferor:
Has requested by written order that the Registrar exchange or
register the transfer of a Certificated Note or Certificated Notes.
In connection with such request and in respect of each such
Note, the Transferor does hereby certify that the Transferor is familiar with
the Indenture relating to the above captioned Notes and the restrictions on
transfers thereof as provided in Section 2.16 of such Indenture, and that the
transfer of the Notes does not require registration under the Securities Act of
1933, as amended (the "Securities Act"), because*:
|_| Such Note is being acquired for the Transferor's own
account, without transfer (in satisfaction of Section 2.16 of the Indenture).
|_| Such Note is being transferred to a "qualified
institutional buyer" (as defined in Rule 144A under the Securities Act), in
reliance on Rule 144A.
|_| Such Note is being transferred in reliance on Regulation S
under the Securities Act and a transfer certificate for Regulation S transfers
in the form of Exhibit D to the Indenture accompanies this certification.
|_| Such Note is being transferred in reliance on Rule 144
under the Securities Act. An Opinion of Counsel to the effect that such transfer
does not require registration under the Securities Act accompanies this
certification.
|_| Such Note is being transferred in reliance on and in
compliance with an exemption from the registration requirements of the
Securities Act other than Rule 144A or Rule 144 or Regulation S under the
Securities Act. An Opinion of Counsel to the effect that such transfer does not
require registration under the Securities Act accompanies this certification.
------------------------------------
[INSERT NAME OF TRANSFEROR]
By:
--------------------------------
[Authorized Signatory]
Date:
---------------------------
*Check applicable box.
C-1
EXHIBIT D
Form of Certificate To Be
Delivered in Connection
with Regulation S Transfers
---------------, ----
Attention: Corporate Trust Administration
Re: HEALTHSOUTH Corporation
10-3/4% Senior Subordinated Notes due 2008 (the "Notes")
--------------------------------------------------------
Ladies and Gentlemen:
In connection with our proposed sale of $__________ aggregate
principal amount of the Notes, we confirm that such sale has been effected
pursuant to and in accordance with Regulation S under the Securities Act of
1933, as amended (the "Securities Act"), and, accordingly, we represent that:
(1) the offer of the Notes was not made to a person in the
United States;
(2) either (a) at the time the buy offer was originated, the
transferee was outside the United States or we and any person acting on
our behalf reasonably believed that the transferee was outside the
United States, or (b) the transaction was executed in, on or through
the facilities of a designated off-shore securities market and neither
we nor any person acting on our behalf knows that the transaction has
been prearranged with a buyer in the United States;
(3) no directed selling efforts have been made in the United
States in contravention of the requirements of Rule 903(a) or Rule
904(a) of Regulation S, as applicable;
(4) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act; and
(5) we have advised the transferee of the transfer
restrictions applicable to the Notes.
You and the Company are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby. Defined terms used herein without
definition have the respective meanings provided in Regulation S.
Very truly yours,
[Name of Transferor]
By:
-------------------------------
D-1
