EXHIBIT T3C
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NEENAH FOUNDRY COMPANY,
AS ISSUER,
ADVANCED CAST PRODUCTS, INC.,
XXXXXX CORPORATION,
XXXXXX CORPORATION, WARSAW MANUFACTURING FACILITY,
XXXXXX CORPORATION, STRYKER MACHINING FACILITY,
XXXXXX FOUNDRY, INC.,
XXXXX INDUSTRIES, INC.,
XXXXXX FORGE CORPORATION,
A&M SPECIALTIES, INC.,
NEENAH TRANSPORT, INC.,
AS SUBSIDIARY GUARANTORS
AND
--------------------
THE BANK OF NEW YORK
AS TRUSTEE
--------------------
INDENTURE
DATED AS OF , 2003
--------------------
UP TO $100,000,000
13% SENIOR SUBORDINATED NOTES DUE 2013
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TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE....................................... 1
Section 1.1. Definitions............................................................. 1
Section 1.2. Incorporation by Reference of TIA....................................... 20
Section 1.3. Rules of Construction................................................... 20
ARTICLE II THE NOTES........................................................................ 21
Section 2.1. Form and Dating......................................................... 21
Section 2.2. Execution and Authentication............................................ 22
Section 2.3. Registrar and Paying Agent.............................................. 23
Section 2.4. Paying Agent to Hold Assets in Trust.................................... 24
Section 2.5. Noteholder Lists........................................................ 24
Section 2.6. Transfer and Exchange................................................... 24
Section 2.7. Replacement Notes....................................................... 28
Section 2.8. Outstanding Notes....................................................... 28
Section 2.9. Treasury Notes.......................................................... 29
Section 2.10. Temporary Notes......................................................... 29
Section 2.11. Cancellation............................................................ 29
Section 2.12. Defaulted Interest...................................................... 30
Section 2.13. Persons Deemed Owners................................................... 31
Section 2.14. Issuance of Additional Notes ........................................... 31
Section 2.15. CUSIP Numbers........................................................... 32
ARTICLE III REDEMPTION....................................................................... 32
Section 3.1. Right of Redemption..................................................... 32
Section 3.2. Notices to Trustee...................................................... 32
Section 3.3. Selection of Notes to Be Redeemed....................................... 32
Section 3.4. Notice of Redemption.................................................... 33
Section 3.5. Effect of Notice of Redemption.......................................... 34
Section 3.6. Deposit of Redemption Price............................................. 34
Section 3.7. Notes Redeemed in Part.................................................. 35
Section 3.8. Optional Redemption..................................................... 35
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TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 3.9. Mandatory Redemption.................................................... 35
ARTICLE IV COVENANTS........................................................................ 35
Section 4.1. Payment of Notes........................................................ 35
Section 4.2. Maintenance of Office or Agency......................................... 36
Section 4.3. Corporate Existence..................................................... 36
Section 4.4. Payment of Taxes and Other Claims....................................... 36
Section 4.5. Maintenance of Properties and Insurance................................. 37
Section 4.6. Compliance Certificate; Notice of Default............................... 37
Section 4.7. Reports................................................................. 38
Section 4.8. Limitation on Status as Investment Company.............................. 38
Section 4.9. Waiver of Stay, Extension or Usury Laws................................. 38
Section 4.10. [Reserved].............................................................. 39
Section 4.11. Limitation on the Incurrence of Indebtedness and
Issuance of Disqualified Stock ......................................... 39
Section 4.12. Limitation on Restricted Payments....................................... 41
Section 4.13. Limitation on Liens..................................................... 43
Section 4.14. Limitation on Dividends and Other Payment Restrictions
Affecting Subsidiaries ................................................. 44
Section 4.15. Limitation on Transactions with Affiliates.............................. 45
Section 4.16. Limitation on Lines of Business......................................... 45
Section 4.17. Limitation on Layering Debt............................................. 46
Section 4.18. Future Guarantors....................................................... 46
Section 4.19. Payments for Consent.................................................... 46
Section 4.20. Asset Sales............................................................. 46
Section 4.21. Change of Control....................................................... 49
Section 4.22. Calculation of Original Issue Discount.................................. 52
ARTICLE V SUCCESSORS....................................................................... 52
Section 5.1. Limitation on Merger, Consolidation or Sale of Assets................... 52
Section 5.2. Successor Corporation Substituted....................................... 53
ARTICLE VI EVENTS OF DEFAULT AND REMEDIES................................................... 53
ii
TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 6.1. Events of Default....................................................... 53
Section 6.2. Acceleration of Maturity Date; Rescission and Annulment................. 55
Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee......... 56
Section 6.4. Trustee May File Proofs of Claim........................................ 57
Section 6.5. Trustee May Enforce Claims Without Possession of Notes.................. 58
Section 6.6. Priorities.............................................................. 58
Section 6.7. Limitation on Suits..................................................... 58
Section 6.8. Unconditional Right of Holders to Receive Principal,
Premium and Interest ................................................... 59
Section 6.9. Rights and Remedies Cumulative.......................................... 59
Section 6.10. Delay or Omission Not Waiver............................................ 60
Section 6.11. Control by Holders...................................................... 60
Section 6.12. Waiver of Past Default.................................................. 60
Section 6.13. Undertaking for Costs................................................... 61
Section 6.14. Restoration of Rights and Remedies...................................... 61
ARTICLE VII TRUSTEE.......................................................................... 62
Section 7.1. Duties of Trustee....................................................... 62
Section 7.2. Rights of Trustee....................................................... 63
Section 7.3. Individual Rights of Trustee............................................ 64
Section 7.4. Trustee's Disclaimer.................................................... 64
Section 7.5. Notice of Default....................................................... 65
Section 7.6. Reports by Trustee to Holders........................................... 65
Section 7.7. Compensation and Indemnity.............................................. 65
Section 7.8. Replacement of Trustee.................................................. 66
Section 7.9. Successor Trustee by Merger, Etc........................................ 68
Section 7.10. Eligibility; Disqualification........................................... 68
Section 7.11. Preferential Collection of Claims Against Company....................... 68
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TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 7.12. "Trustee" to Include Paying Agent....................................... 68
ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE......................................... 69
Section 8.1. Option to Effect Legal Defeasance or Covenant Defeasance................ 69
Section 8.2. Legal Defeasance and Discharge.......................................... 69
Section 8.3. Covenant Defeasance..................................................... 69
Section 8.4. Conditions to Legal or Covenant Defeasance.............................. 70
Section 8.5. Deposited Money and Government Securities to be Held in
Trust; Other Miscellaneous Provisions .................................. 71
Section 8.6. Repayment to Company.................................................... 72
Section 8.7. Reinstatement........................................................... 72
Section 8.8. Discharge of Liability on Securities; Defeasance........................ 73
ARTICLE IX AMENDMENTS, SUPPLEMENTS AND WAIVERS.............................................. 73
Section 9.1. Without Consent of Holders.............................................. 73
Section 9.2. With Consent of Holders................................................. 74
Section 9.3. Compliance with TIA..................................................... 75
Section 9.4. Revocation and Effect of Consents....................................... 76
Section 9.5. Notation on or Exchange of Notes........................................ 76
Section 9.6. Trustee to Sign Amendments, Etc......................................... 76
ARTICLE X GUARANTEE OF NOTES............................................................... 77
Section 10.1. Subsidiary Guarantee.................................................... 77
Section 10.2. Execution and Delivery of Subsidiary Guarantee.......................... 78
Section 10.3. Subsidiary Guarantors May Consolidate, etc., on Certain Terms........... 79
Section 10.4. Releases Following Sale of Assets....................................... 80
Section 10.5. Releases Following Designation as an Unrestricted Subsidiary........... 80
Section 10.6. Limitation on Subsidiary Guarantor Liability............................ 80
Section 10.7. Subordination of Guarantees............................................. 81
ARTICLE XI SUBORDINATION.................................................................... 81
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TABLE OF CONTENTS
(CONTINUED)
PAGE
Section 11.1. Agreement to Subordinate................................................ 81
Section 11.2. Liquidation; Dissolution; Bankruptcy.................................... 81
Section 11.3. Default on Senior Indebtedness.......................................... 82
Section 11.4. Acceleration of Notes................................................... 82
Section 11.5. When Distribution Must be Paid Over..................................... 82
Section 11.6. Notice by Company....................................................... 83
Section 11.7. Subrogation............................................................. 83
Section 11.8. Relative Rights......................................................... 84
Section 11.9. Subordination May Not be Impaired by Company............................ 84
Section 11.10. Distribution or Notice to Representative................................ 84
Section 11.11. Rights of Trustee and Paying Agent...................................... 85
Section 11.12. Authorization to Effect Subordination................................... 85
Section 11.13. Payment................................................................. 85
ARTICLE XII MISCELLANEOUS.................................................................... 86
Section 12.1. TIA Controls............................................................ 86
Section 12.2. Notices................................................................. 86
Section 12.3. Communications by Holders with Other Holders............................ 87
Section 12.4. Certificate and Opinion as to Conditions Precedent...................... 87
Section 12.5. Statements Required in Certificate or Opinion........................... 87
Section 12.6. Rules by Trustee, Paying Agent, Registrar............................... 88
Section 12.7. Business Day............................................................ 88
Section 12.8. Governing Law........................................................... 89
Section 12.9. No Adverse Interpretation of Other Agreements........................... 89
Section 12.10. No Recourse Against Others.............................................. 89
Section 12.11. Successors.............................................................. 89
Section 12.12. Duplicate Originals..................................................... 89
Section 12.13. Severability............................................................ 89
Section 12.14. Table of Contents, Headings, Etc........................................ 90
Section 12.15. Qualification of Indenture.............................................. 90
EXHIBIT A - FORM OF NOTE .............................................................. X-0
XXXXXXX X - XXXXXXXXX................................................................... X-0
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CROSS-REFERENCE TABLE
TIA INDENTURE
SECTION SECTION
310 (a)(1)........................................................................ Section 7.10
(a)(2)........................................................................ Section 7.10
(a)(3)........................................................................ N.A.
(a)(4)........................................................................ N.A.
(a)(5)........................................................................ Section 7.8,
Section 7.10
(b)........................................................................... Section 7.10
(b)(1)........................................................................ Section 7.10
(c)........................................................................... N.A.
311 (a)........................................................................... Section 7.11
(b)........................................................................... Section 7.11
(c)........................................................................... N.A.
312 (a)........................................................................... Section 2.5
(b)........................................................................... Section 12.3
(c)........................................................................... Section 12.3
313 (a)........................................................................... Section 7.6
(b)........................................................................... Section 7.6
(b)(1)........................................................................ N.A.
(b)(2)........................................................................ N.A.
(c)........................................................................... Section 7.6
(d)........................................................................... N.A.
314 (a)........................................................................... N.A.
(a)(4)........................................................................ Section 4.6
(b)........................................................................... N.A.
(c)(1)........................................................................ N.A.
(c)(2)........................................................................ N.A.
(c)(3)........................................................................ N.A.
(d)........................................................................... N.A.
(e)........................................................................... N.A.
(f)........................................................................... N.A.
315 (a)........................................................................... N.A.
(b)........................................................................... N.A.
(c)........................................................................... N.A.
(d)........................................................................... N.A.
(e)........................................................................... N.A.
316 (a)........................................................................... N.A.
(a)(1)(A)..................................................................... N.A.
(a)(1)(B)..................................................................... N.A.
(a)(2)........................................................................ N.A.
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CROSS-REFERENCE TABLE
TIA INDENTURE
SECTION SECTION
(b)........................................................................... N.A.
317 (a)(1)........................................................................ N.A.
(a)(2)........................................................................ N.A.
(b)........................................................................... N.A.
318 (a)........................................................................... N.A.
N.A. means Not Applicable.
Note: This Cross-Reference Table shall not, for any purpose, be deemed to be a
part of the Indenture.
ii
INDENTURE, dated as of , 2003, between Neenah Foundry
Company, a Wisconsin corporation (the "Company"), each Subsidiary Guarantor
listed on the signature pages hereto or which becomes a party hereto pursuant to
a supplemental indenture and The Bank of New York, a New York banking
corporation, as Trustee.
The Company, the Subsidiary Guarantors and the Trustee agree
as follows for the equal and rateable benefit of the Holders of the 13% Senior
Subordinated Notes due 2013 (the "Notes"):
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.1. DEFINITIONS.
"Acceleration Notice" shall have the meaning specified in
Section 6.2.
"ACP Holding" means ACP Holding Company, a Delaware
corporation.
"Acquired Debt" means, with respect to any specified Person:
(i) Indebtedness of any other Person existing at the time such other Person
merged with or into or became a Restricted Subsidiary of such specified Person,
including, without limitation, Indebtedness incurred in connection with, or in
contemplation of, such other Person merging with or into or becoming a
Restricted Subsidiary of such specified Person and (ii) Indebtedness secured by
a Lien encumbering any asset acquired by such specified Person.
"Additional Notes" means any Notes (other than Initial Notes
and Notes issued under Sections 2.6, 2.7, 2.10 and 3.1 hereof) issued under this
Indenture in accordance with Sections 2.2, 2.14 and 4.11 hereof, as part of the
same series as the Initial Notes or as an additional series.
"Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition,
"control" (including, with correlative meanings, the terms "controlling,"
"controlled by" and "under common control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of such Person,
whether through the ownership of voting securities, by agreement or otherwise;
provided, however, that beneficial ownership of 10% or more of the voting
securities (or the equivalents) of a Person shall be deemed to be control.
"Affiliate Transaction" shall have the meaning specified in
Section 4.15.
"Agent" means any Registrar, Paying Agent or co-Registrar.
"Agent Member" means a member of, or a participant in, the
Depositary.
"Asset Sale" means any sale, transfer or other disposition
(including, without limitation, by merger, consolidation or sale-and-leaseback
transaction) of (i) shares of Capital Stock of a Subsidiary of the Company
(other than directors' qualifying shares), including any issuance of such
Capital Stock, or (ii) property or assets of the Company or any Restricted
Subsidiary of the Company other than in the ordinary course of business;
provided, however, that an Asset Sale shall not include (a) any sale, transfer
or other disposition of shares of Capital Stock, property or assets by a
Restricted Subsidiary of the Company to the Company or to any Restricted
Subsidiary that is a Wholly Owned Subsidiary of the Company, (b) any sale,
transfer or other disposition of defaulted receivables for collection, (c) any
isolated sale, transfer or other disposition that does not involve aggregate
consideration in excess of $500,000 individually, (d) the grant in the ordinary
course of business of any license of patents, trademarks, registrations therefor
and other similar intellectual property, (e) any Lien (or foreclosure thereon)
securing Indebtedness to the extent that such Lien is granted in compliance with
Section 4.13, (f) any Restricted Payment or Permitted Investment permitted by
Section 4.12, (g) any disposition of assets or property to the extent such
assets are obsolete, worn-out or no longer useful in the Company's or any
Restricted Subsidiary's business, (h) the sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company as
permitted by Article V; provided, that the assets not so sold, leased, conveyed,
disposed of or otherwise transferred shall be deemed an Asset Sale or (i) any
disposition that constitutes a Change of Control, (j) any transaction or series
of transactions pertaining to sales, transfers or other dispositions of
properties or assets of the Company or any Restricted Subsidiary in connection
with closures of plants for a purchase price not exceeding 10% of the total
assets of Company as reflected on its balance sheet as of the Company's fiscal
year end immediately preceding the first sale of such property or assets.
"Asset Sale Offer" shall have the meaning specified in Section
4.20.
"Bankruptcy Law" means title 11, U.S. Code, or any similar
federal, state or foreign law for the relief of debtors.
"Beneficial Owner" has the meaning assigned to such term in
Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the
beneficial ownership of any particular "person" (as that term is used in Section
13(d)(3) of the Exchange Act), such "person" will be deemed to have beneficial
ownership of all securities that such "person" has the right to acquire by
conversion or exercise of other securities, whether such right is currently
exercisable or is exercisable only upon the occurrence of a subsequent
condition. The terms "Beneficially Owns" and "Beneficially Owned" have a
corresponding meaning.
"Board of Directors" means, with respect to any Person, the
Board of Directors of such Person or any committee of the Board of Directors of
such Person authorized, with respect to any particular matter, to exercise the
power of the Board of Directors of such Person.
2
"Board Resolution" means, with respect to any Person, a duly
adopted resolution of the Board of Directors of such Person.
"Borrowing Base Amount" means, as to the Company and its
Restricted Subsidiaries, the sum of (x) 65% of Inventory plus (y) 85% of
Receivables, determined on a consolidated basis in accordance with GAAP.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday
and Friday that is not a day on which banking institutions in New York, New York
are authorized or obligated by law or executive order to close.
"Capital Lease Obligation" means, at the time any
determination thereof is to be made, the amount of the liability in respect of a
capital lease that would at such time be so required to be capitalized on the
balance sheet in accordance with GAAP.
"Capital Stock" means (i) any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock, (ii) in the case of a partnership, partnership interests (whether general
or limited) and (iii) any other interest or participation that confers on a
Person the right to receive a share of the profits and losses of, or
distributions of assets of, the issuing Person.
"Cash" means such coin or currency of the United States of
America as at the time of payment shall be legal tender for the payment of
public and private debts.
"Cash Equivalents" means (i) United States dollars, (ii)
securities issued or directly and fully guaranteed or insured by the United
States government or any agency or instrumentality thereof having maturities of
not more than six months from the date of acquisition, (iii) certificates of
deposit and Eurodollar time deposits with maturities of six months or less from
the date of acquisition, bankers' acceptances with maturities not exceeding six
months and overnight bank deposits, in each case with any domestic commercial
bank having capital and surplus in excess of $500,000,000, (iv) repurchase
obligations with a term of not more than seven days for underlying securities of
the types described in clauses (ii) and (iii) entered into with any financial
institution meeting the qualifications specified in clause (iii) above, (v)
commercial paper having the highest rating obtainable from Xxxxx'x Investors
Service, Inc. or Standard & Poor's Corporation and in each case maturing within
six months after the date of acquisition and (vi) shares of any money market
mutual fund, or similar fund, in each case having assets in excess of
$500,000,000, which invests solely in investments of the types described in
clauses (i) through (v) above.
"Change of Control" means the occurrence of any of the
following:
(1) the direct or indirect sale, transfer, conveyance or
other disposition (other than by way of merger or consolidation), in one or a
series of related transactions, of all or substantially all of the properties or
assets of ACP Holding, NFC Castings or the
3
Company and the Restricted Subsidiaries, taken as a whole, to any "person" (as
that term is used in Section 13(d)(3) of the Exchange Act);
(2) the adoption of a plan relating to the liquidation or
dissolution of NFC Castings or ACP Holding (or any other direct or indirect
parent of the Company) or the Company;
(3) the consummation of any transaction, as a result of
which any "person" (as referenced in clause (2) above), other than the Permitted
Holders, becomes the Beneficial Owner, directly or indirectly, of, in the
aggregate, more than 50% of the total voting power of the Voting Stock of the
Company, NFC Castings or ACP Holding, whether as a result of issuance of
securities of NFC Castings or ACP Holding (or any other direct or indirect
parent of the Company) or the Company, any merger, consolidation, liquidation or
dissolution of NFC Castings or ACP Holding (or any other direct or indirect
parent of the Company) or the Company or otherwise, provided, however, that the
Permitted Holders Beneficially Own, directly or indirectly, less than such
"person"; or
(4) the first day on which a majority of the members of
the Board of Directors of either the Company, NFC Castings or ACP Holding are
not Continuing Directors;
provided, however, for purposes of clause (3), the Permitted Holders shall be
deemed to Beneficially Own any Voting Stock of a Person held by any other Person
(the "parent entity") so long as the Permitted Holders Beneficially Own,
directly or indirectly, in the aggregate a majority of the voting power of the
Voting Stock of the parent entity.
"Change of Control Offer" shall have the meaning specified in
Section 4.21.
"Change of Control Payment Date" shall have the meaning
specified in Section 4.21.
"Change of Control Put Date" shall have the meaning specified
in Section 4.21.
"Change of Control Repurchase Price" shall have the meaning
specified in Section 4.21.
"Code" means the Internal Revenue Code of 1986, as amended.
"Commission" means the Securities and Exchange Commission.
"Commitment Fee" means the Commitment Fee payable to the
Permitted Holders pursuant to the Standby Funding Commitment Letters, dated June
30, 2003, between the Company and each of the Permitted Holders.
"Commodity Agreement" means any commodity futures contract,
commodity option or other similar agreement or arrangement entered into by the
4
Company or any of its Restricted Subsidiaries designed to protect the Company or
any of its Restricted Subsidiaries against fluctuations in the price of
commodities actually used in the ordinary course of business of the Company and
its Restricted Subsidiaries.
"Common Stock" means, with respect to any Person, Capital
Stock of such Person that does not rank prior, as to the payment of dividends or
as to the distribution of assets upon any voluntary or involuntary liquidation,
dissolution or winding up of such Person, to shares of Capital Stock of any
other class of such Person.
"Company" means the party named as such in the first paragraph
of this Indenture until a successor replaces it pursuant to this Indenture, and
thereafter means such successor.
"Consolidated Coverage Ratio" as of any date of determination
means the ratio of (i) the aggregate amount of EBITDA for the period of the most
recent four consecutive fiscal quarters ending at least 45 days prior to the
date of such determination to (ii) Consolidated Interest Expense for such four
fiscal quarters; provided, however, that
(1) if the Company or any Restricted Subsidiary has
incurred any Indebtedness since the beginning of such period that
remains outstanding on such date of determination or if the transaction
giving rise to the need to calculate the Consolidated Coverage Ratio is
an incurrence of Indebtedness, EBITDA and Consolidated Interest Expense
for such period shall be calculated after giving effect on a pro forma
basis to such Indebtedness and the application of the proceeds thereof
as if such Indebtedness had been incurred on the first day of such
period and the discharge of any other Indebtedness repaid, repurchased,
defeased or otherwise discharged with the proceeds of such new
Indebtedness as if such discharge had occurred on the first day of such
period (except that in the case of Indebtedness to finance seasonal
fluctuations in working capital needs incurred under a revolving credit
or similar arrangement, the amount thereof shall be deemed to be the
average daily balance of such Indebtedness during such four quarter
period;
(2) if since the beginning of such period the Company or
any Restricted Subsidiary shall have disposed of any assets
constituting all or substantially all of the assets of an operating
unit of a business (a "Disposal"), (x) the EBITDA for such period shall
be reduced by an amount equal to the EBITDA (if positive) directly
attributable to the assets which are the subject of such Disposal for
such period or increased by an amount equal to the EBITDA (if negative)
directly attributable thereto for such period and (y) Consolidated
Interest Expense for such period shall be reduced by an amount equal to
the Consolidated Interest Expense directly attributable to any
Indebtedness of the Company or any Restricted Subsidiary repaid,
repurchased, defeased or otherwise discharged with respect to the
Company and its continuing Restricted Subsidiaries in connection with
such Disposal for such period (or, if the Capital Stock of any
Restricted Subsidiary is sold, the Consolidated Interest Expense for
such period
5
directly attributable to the Indebtedness of such Restricted Subsidiary
to the extent the Company and its continuing Restricted Subsidiaries
are no longer liable for such Indebtedness after such sale);
(3) if since the beginning of such period the Company or
any Restricted Subsidiary (by merger or otherwise) shall have made an
Investment in any Restricted Subsidiary (or any Person which becomes a
Restricted Subsidiary) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction
causing a calculation to be made hereunder, which constitutes all or
substantially all of the assets of an operating unit of a business,
EBITDA and Consolidated Interest Expense for such period shall be
calculated after giving pro forma effect thereto (including the
incurrence of any Indebtedness in connection therewith) as if such
Investment or acquisition occurred on the first day of such period; and
(4) if since the beginning of such period any Person
(that subsequently became a Restricted Subsidiary or was merged with or
into the Company or any Restricted Subsidiary since the beginning of
such period) shall have made any Disposal or any Investment or
acquisition of assets that would have required an adjustment pursuant
to clause (2) or (3) above if made by the Company or a Restricted
Subsidiary during such period, EBITDA and Consolidated Interest Expense
for such period shall be calculated after giving pro forma effect
thereto as if such Disposal, Investment or acquisition of assets
occurred on the first day of such period.
For purposes of this definition, whenever pro forma effect is
to be given to an acquisition of assets, the amount of income or earnings
relating thereto and the amount of Consolidated Interest Expense associated with
any Indebtedness incurred in connection therewith, the pro forma calculations
shall be determined in good faith by a responsible financial or accounting
Officer of the Company. If any Indebtedness bears a floating rate of interest
and is being given pro forma effect, the interest expense on such Indebtedness
shall be calculated as if the rate in effect on the date of determination had
been the applicable rate for the entire period (taking into account any Interest
Rate Agreement applicable to such Indebtedness if such Interest Rate Agreement
has a remaining term as at the date of determination in excess of 12 months). If
any Indebtedness bears, at the option of the Company or a Restricted Subsidiary,
a fixed or floating rate of interest and is being given pro forma effect, then
(i) if any interest had accrued on such Indebtedness prior to the date of
determination, the interest expense on such Indebtedness shall be computed by
applying a fixed or floating rate of interest as selected by the Company or such
Restricted Subsidiary for the interest period immediately preceding such
determination or (ii) if no interest accrued on such Indebtedness prior to the
date of determination, the interest expense on such Indebtedness shall be
computed by applying, at the option of the Company or such Restricted
Subsidiary, either a fixed or floating rate. If any Indebtedness which is being
given pro forma effect was incurred under a revolving credit facility that was
in effect throughout
6
the applicable period, the interest expense on such Indebtedness shall be
computed based upon the average daily balance of such Indebtedness during the
applicable period.
"Consolidated Interest Expense" means, with respect to any
Person for any period, the aggregate consolidated interest, whether expensed or
capitalized, paid, accrued or scheduled to be paid or accrued, of such Person
and its Restricted Subsidiaries for such period (including (i) amortization of
original issue discount and deferred financing costs and non-cash interest
payments and accruals, (ii) the interest portion of all deferred payment
obligations, calculated in accordance with the effective interest method, and
(iii) the interest component of any payments associated with Capital Lease
Obligations and net payments (if any) pursuant to Hedging Obligations, in each
case, to the extent attributable to such period, but excluding (x) commissions,
discounts and other fees and charges incurred with respect to letters of credit
and bankers' acceptances financing and (y) any interest expense on Indebtedness
of another Person that is Guaranteed by such Person or secured by a Lien on
assets of such Person) determined in accordance with GAAP. Consolidated Interest
Expense of the Company shall not include any prepayment premiums or amortization
of original issue discount or deferred financing costs, to the extent such
amounts are incurred as a result of the prepayment on the date of this Indenture
of any Indebtedness of the Company with the proceeds of the Notes.
"Consolidated Net Income" means, with respect to any Person
for any period, the aggregate of the Net Income of such Person and its
Restricted Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP, adjusted to exclude (only to the extent included and
without duplication): (i) all gains which are extraordinary or are non-recurring
(including any gain from the sale or other disposition of assets outside the
ordinary course of business or from the issuance or sale of Capital Stock); (ii)
all gains resulting from currency or hedging transactions; (iii) the Net Income
of any Person acquired in a pooling of interests transaction for any period
prior to the date of such acquisition; (iv) depreciation, amortization or other
expenses recorded as a result of the application of purchase accounting in
accordance with Statements of Financial Accounting Standards Nos. 141 and 142;
and (v) the cumulative effect of a change in accounting principles; provided
that (a) the Net Income of any Person that is not a Subsidiary or that is
accounted for by the equity method of accounting shall be included only to the
extent of the amount of cash dividends or cash distributions actually paid to
the referent Person or a Wholly Owned Subsidiary thereof that is a Restricted
Subsidiary and (b) the Net Income of any Person that is an Unrestricted
Subsidiary shall be included only to the extent of the amount of cash dividends
or cash distributions paid to the referent Person or a Restricted Subsidiary
thereof.
"Continuing Director" means, as of any date of determination,
any member of the Board of Directors of the Company or, NFC Castings ACP Holding
who (i) was a member of such Board of Directors on the date of this Indenture,
(ii) was nominated for election or elected to such Board of Directors with the
affirmative vote of a majority of the Continuing Directors who were members of
such Board of Directors at
7
the time of such nomination or election or (iii) was selected by MacKay Xxxxxxx
LLC, Citicorp Mezzanine III, L.P. or the Trust Company of the West.
"Covenant Defeasance" shall have the meaning specified in
Section 8.3.
"Credit Agreement" means the Credit Agreement, dated the date
hereof, among the Company, the guarantors party thereto, the lenders from time
to time party to such agreement, Fleet Capital Corporation, as Agent and Fleet
Securities, Inc., as Arranger, including any related notes, collateral
documents, letters of credit and documentation and guarantees and any
appendices, exhibits or schedules to any of the foregoing, as well as any and
all of such agreements (and any other agreements that refinance any and all such
agreements), as may be amended restated, modified or supplemented from time to
time, or renewed, refunded, refinanced, restructured, replaced, repaid or
extended from time to time (including increases in principal amount), whether
with the original agents and lenders and other agents or lenders.
"Custodian" means any receiver, trustee, assignee, liquidator,
sequestrator or similar official under any Bankruptcy Law.
"Currency Agreement" means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to
protect the Company or any of its Restricted Subsidiaries in the ordinary course
of business against fluctuation in the values of the currencies of the countries
(other than the United States) in which the Company or its Restricted
Subsidiaries conduct business.
"Default" means any event or condition that is, or with the
passage of time or the giving of notice, or both, would be, an Event of Default.
"Defaulted Interest" shall have the meaning specified in
Section 2.12.
"Definitive Notes" means a certificated Note registered in the
name of the Holder thereof and issued in accordance with Section 2.1 hereof,
substantially in the form of Exhibit A hereto except that such Note shall not
bear the Global Note legend.
"Depositary" means, with respect to the Notes issuable or
issued in whole or in part in global form, the person specified in Section 2.3
as the Depositary with respect to the Notes, until a successor shall have been
appointed and become such pursuant to the applicable provision of this
Indenture, and, thereafter, "Depositary" shall mean or include such successor.
"Disqualified Stock" means any Capital Stock which, by its
terms (or by the terms of any security into which it is convertible or for which
it is exchangeable), or upon the happening of any event, matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or
is redeemable or is convertible or exchangeable for Indebtedness at the option
of the holder thereof, in whole or in part, on or prior to 90 days after the
Stated Maturity of the Notes provided that any Capital Stock that would not
8
constitute Disqualified Stock but for provisions thereof giving holders thereof
the right to require such Person to repurchase or redeem such Capital Stock upon
the occurrence of an "asset sale" or "change of control" occurring prior to the
Stated Maturity of the Notes shall not constitute Disqualified Stock if (i) the
"asset sale" or "change of control" provisions applicable to such Capital Stock
are no more favorable to the holders of such Capital Stock than the provisions
in favor of Holders of Notes set forth under Section 4.20 and Section 4.21, as
the case may be, (ii) such Capital Stock specifically provides that such Person
will not repurchase or redeem any such stock pursuant to such provision prior to
the Company's repurchase of such Notes as are required to be repurchased
pursuant to Section 4.20 and Section 4.21 and (iii) such Capital Stock is
redeemable within 90 days of the "asset sale" or "change of control" events
applicable to such Capital Stock.
"Domestic Restricted Subsidiary" means any Restricted
Subsidiary other than (a) a Foreign Restricted Subsidiary or (b) a Subsidiary of
a Foreign Restricted Subsidiary.
"DTC" shall have the meaning specified in Section 2.3.
"EBITDA" means, for any period, an amount equal to, for the
Company and its consolidated Restricted Subsidiaries:
(a) the sum of Consolidated Net Income for such period,
plus the following to the extent reducing Consolidated Net Income for such
period:
(1) the provision for taxes based on income or profits or
utilized in computing net loss,
(2) Consolidated Interest Expense,
(3) depreciation,
(4) amortization of intangibles, and
(5) any other non-cash items (other than any such
non-cash item to the extent that it represents an accrual of, or reserve for,
cash expenditures in any future period), minus
(b) all non-cash items increasing Consolidated Net Income
for such period (other than any such non-cash item to the extent that it will
result in the receipt of cash payments in any future period).
Notwithstanding the foregoing clause (a), the provision for taxes and the
depreciation, amortization and non-cash items of a Restricted Subsidiary shall
be added to Consolidated Net Income to compute EBITDA only to the extent (and in
the same proportion) that the net income of such Restricted Subsidiary was
included in calculating Consolidated Net Income and only if a corresponding
amount would be permitted at the
9
date of determination to be dividended to the Company by such Restricted
Subsidiary without prior approval (that has not been obtained), pursuant to the
terms of its charter and all agreements, instruments, judgments, decrees,
orders, statutes, rules and governmental regulations applicable to such
Restricted Subsidiary or its shareholders.
"Equity Interests" means Capital Stock and all warrants,
options or other rights to acquire Capital Stock (but excluding any debt
security that is convertible into, or exchangeable for, Capital Stock).
"Event of Default" shall have the meaning specified in Section
6.1.
"Excess Proceeds" shall have the meaning specified in Section
4.20.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations promulgated by the Commission thereunder.
"Fair Market Value" means, with respect to any asset, the
price (after taking into account any liabilities relating to such assets) which
could be negotiated in an arm's-length free market transaction, for cash,
between a willing seller and a willing buyer, neither of which is under pressure
or compulsion to complete the transaction; provided, that, the Fair Market Value
of any such asset or assets shall be determined by the Board of Directors of the
Company, acting in good faith and by unanimous resolution, and which
determination shall be evidenced by an Officers' Certificate delivered to the
Trustee.
"Foreign Restricted Subsidiary" means any Restricted
Subsidiary which is not organized under the laws of the United States of America
or any State thereof or the District of Columbia.
"GAAP" means generally accepted accounting principles set
forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as have been approved by a significant segment
of the accounting profession, which are in effect in the United States on the
date of this Indenture.
"Global Note" means a Note substantially in the form of the
Note attached hereto as Exhibit A that contains a global note legend.
"Guarantee" means a guarantee (other than by endorsement of
negotiable instruments for collection in the ordinary course of business),
direct or indirect, in any manner (including, without limitation, letters of
credit and reimbursement agreements in respect thereof), of all or any part of
any Indebtedness.
10
"Hedging Obligations" means, with respect to any Person, the
obligations of such Person under (i) Interest Rate Agreements, (ii) Currency
Agreements and (iii) Commodity Agreements.
"Holder" or "Noteholder" means the person in whose name a Note
is registered on the Registrar's books.
"Indebtedness" means, with respect to any Person, without
duplication, any indebtedness of such Person, whether or not contingent, in
respect of borrowed money or evidenced by bonds, notes, debentures or similar
instruments or letters of credit (or reimbursement agreements in respect
thereof) or bankers' acceptances or representing Capital Lease Obligations or
the balance deferred and unpaid of the purchase price of any property or
representing any Hedging Obligations, except any such balance that constitutes
an accrued expense or trade payable, if and to the extent any of the foregoing
indebtedness (other than letters of credit and Hedging Obligations) would appear
as a liability upon a balance sheet of such Person prepared in accordance with
GAAP, as well as all indebtedness of others secured by a Lien on any asset of
such Person (whether or not such indebtedness is assumed by such Person) and, to
the extent not otherwise included, the Guarantee of any Indebtedness of such
Person or any other Person.
"Indenture" means this Indenture, as amended or supplemented
from time to time in accordance with the terms hereof.
"Initial Notes" means $100.0 million aggregate principal
amount of Notes issued under this Indenture on the date hereof.
"Intercompany Indebtedness" shall have the meaning specified
in Section 4.11.
"Interest Payment Date" means the stated due date of an
installment of interest on the Notes.
"Interest Rate Agreement" means any interest rate swap
agreement, interest rate cap agreement, interest rate collar agreement or other
similar agreement or arrangement entered into by the Company or any of its
Restricted Subsidiaries designed to protect the Company or any of its Restricted
Subsidiaries in the ordinary course of business against fluctuations in interest
rates.
"Inventory" means, with respect to the Company, the
consolidated inventory of the Company, determined in accordance with GAAP.
"Investments" means, with respect to any Person, all
investments by such Person in other Persons (including Affiliates) in the forms
of direct or indirect loans (including Guarantees), advances or capital
contributions (excluding commission, travel and similar advances to officers and
employees made in the ordinary course of business), purchases or other
acquisitions for consideration of Indebtedness, Equity Interests or
11
other securities and all other items that are or would be classified as
investments on a balance sheet prepared in accordance with GAAP.
"Issue Date" means the date of first issuance of the Notes
under this Indenture.
"Legal Defeasance" shall have the meaning specified in Section
8.2.
"Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law (including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing
statement under the Uniform Commercial Code (or equivalent statutes) of any
jurisdiction.)
"Net Income" means, with respect to any Person, the net income
(loss) of such Person, determined in accordance with GAAP and before any
reduction in respect of preferred stock dividends, excluding, however, (i) any
gain (but not loss), together with any related provision for taxes on such gain
(but not loss), realized in connection with (a) any sale of assets (including,
without limitation, dispositions pursuant to sale/leaseback transactions) or (b)
the disposition of any securities or the extinguishment of any Indebtedness of
such Person or any of its Restricted Subsidiaries, and (ii) any extraordinary
gain (but not loss), together with any related provision for taxes on such
extraordinary gain (but not loss).
"Net Proceeds" means the aggregate amount of consideration
received by the Company or any of its Restricted Subsidiaries in respect of any
Asset Sale in the form of cash or Cash Equivalents (including, without
limitation, any cash received upon the sale or other disposition of any non-cash
consideration received in any Asset Sale), net of the direct costs relating to
such Asset Sale (including, without limitation, legal, accounting and investment
banking fees, and sales commissions) and any relocation expenses incurred as a
result thereof, taxes paid or payable as a result thereof, amounts required to
be applied to the repayment of Indebtedness secured by a Lien on the asset or
assets (including Equity Interests) the subject of such Asset Sale and any
reserve for adjustment in respect of the sale price of such asset or assets.
"New Credit Facility" means the credit facilities provided
under the Credit Agreement.
"NFC Castings" means NFC Castings, Inc., a Delaware
corporation.
"Non-Recourse Debt" means Indebtedness (i) as to which neither
the Company nor any of its Restricted Subsidiaries (a) provides credit support
of any kind (including any undertaking, agreement or instrument that would
constitute Indebtedness), (b) is directly or indirectly liable (as guarantor or
otherwise), or (c) constitutes the lender;
12
(ii) no default with respect to which (including any rights that the holders
thereof may have to take enforcement action against an Unrestricted Subsidiary)
would permit (upon notice, lapse of time or both) any holder of any other
Indebtedness of the Company or any of its Restricted Subsidiaries to declare a
default on such other Indebtedness or cause the payment thereof to be
accelerated or payable prior to its stated maturity; and (iii) as to which the
lenders have been notified in writing that they will not have any recourse to
the stock or assets of the Company or any of its Restricted Subsidiaries.
"Note Custodian" means the Trustee, as custodian with respect
to the Notes in global form, or any successor entity thereto.
"Notes" shall have the meaning specified in the second
paragraph of this Indenture.
"Notice of Default" shall have the meaning specified in
Section 6.1(d).
"Obligations" means with respect to any Indebtedness, the
principal of premium, if any, and interest on (such interest on such
Indebtedness, wherever referred to in this Indenture, is deemed to include
interest accruing after the filing of a petition initiating any proceeding
pursuant to any bankruptcy law in accordance with and at the rate (including any
rate applicable upon any default or event of default, to the extent lawful)
specified in any document evidencing such Indebtedness, whether or not the claim
for such interest is allowed as a claim after such filing in any proceeding
under such bankruptcy law) and other amounts, including, but not limited to,
penalties, fees, indemnifications, reimbursements, damages and other liabilities
payable under any document governing any Indebtedness.
"Officer" means, with respect to the Company, the Chief
Executive Officer, the President, any Vice President, the Chief Financial
Officer, the Treasurer, the Controller or the Secretary of the Company.
"Officers' Certificate" means, with respect to any Person, a
certificate signed by (i) the Chief Executive Officer or President and (ii) the
Chief Financial Officer or chief accounting officer of such Person.
"Opinion of Counsel" means a written opinion from legal
counsel which complies with the requirements of Sections 14.4 and 14.5.
"Original Issue Date" of any Note (or portion thereof) means
the earlier of (a) the date of such Note or (b) the date of any Note (or portion
thereof) for which such Note was issued (directly or indirectly) on registration
of transfer, exchange or substitution.
"Paying Agent" shall have the meaning specified in Section
2.3.
13
"Payment Blockage Period" shall have the meaning specified in
Section 11.3.
"Payment Default" shall have the meaning specified in Section
6.1(e).
"Permitted Holders" means each of MacKay Xxxxxxx LLC, Citicorp
Mezzanine III, L.P., Metropolitan Life Insurance Company, Exis Differential
Holdings, Ltd. and Trust Company of The West and its Related Persons and
Affiliates.
"Permitted Investments" means (i) any Investment in the
Company or in a Wholly Owned Subsidiary of the Company that is a Restricted
Subsidiary; (ii) any Investment in Cash Equivalents; (iii) Investments by the
Company or any Restricted Subsidiary of the Company in a Person, if as a result
of such Investment (a) such Person becomes a Wholly Owned Subsidiary of the
Company that is a Restricted Subsidiary or (b) such Person is merged,
consolidated or amalgamated with or into, or transfers or conveys substantially
all of its assets to, or is liquidated into, the Company or a Wholly Owned
Subsidiary of the Company that is a Restricted Subsidiary; (iv) any Investment
made as a result of the receipt of non-cash consideration from an Asset Sale
that was made in compliance with Section 4.20 (v) any Investment solely in
exchange for the issuance of Equity Interests (other than Disqualified Stock) of
the Company; and (vi) any Investments received in compromise of obligations of
such persons incurred in the ordinary course of trade creditors or customers
that were incurred in the ordinary course of business, including pursuant to any
plan of reorganization or similar arrangement upon the bankruptcy or insolvency
of any trade creditor or customer.
"Permitted Liens" means (i) Liens in favor of the Company or a
Restricted Subsidiary; (ii) Liens securing Senior Indebtedness of the Company or
a Restricted Subsidiary that was permitted to be incurred pursuant to this
Indenture; (iii) Liens on property of a Person existing at the time such Person
is merged into or consolidated with the Company or any Restricted Subsidiary of
the Company, provided that such Liens were not created in contemplation of such
merger or consolidation and do not extend to any assets other than those of the
Person merged into or consolidated with the Company or such Restricted
Subsidiary; (iv) Liens on property existing at the time of acquisition thereof
by the Company or any Restricted Subsidiary of the Company; provided that such
Liens were not created in contemplation of such acquisition and do not extend to
any other assets of the Company or any Restricted Subsidiary of the Company; (v)
Liens to secure the performance of statutory obligations, surety or appeal
bonds, performance bonds or other obligations of a like nature incurred in the
ordinary course of business; (vi) Liens existing on the date of this Indenture;
(vii) Liens for taxes, assessments or governmental charges or claims that are
not yet delinquent or that are being contested in good faith by appropriate
proceedings promptly instituted and diligently concluded, provided that any
reserve or other appropriate provision, if any, as shall be required in
conformity with GAAP shall have been made therefor; (viii) Liens imposed by law,
such as mechanics', carriers', warehousemen's, materialmen's and vendors' Liens,
incurred in good faith in the ordinary course of business with respect to
amounts not yet delinquent or being contested in good faith by appropriate
proceedings if a reserve or other
14
appropriate provisions, if any, shall be required by GAAP shall have been made
therefor; (ix) zoning restrictions, easements, licenses, covenants,
reservations, restrictions on the use of real property or minor irregularities
of title incident thereto that do not, in the aggregate, materially detract from
the value of the property or the assets of the Company or impair the use of such
property in the operation of the Company's business; (x) judgment Liens to the
extent that such judgments do not cause or constitute a Default or an Event of
Default; (xi) Liens to secure the payment of all or a part of the purchase price
of property or assets acquired or constructed in the ordinary course of business
on or after the date of this Indenture, provided that (a) such property or
assets are used in the same or a similar line of business as the Company was
engaged in on the date of this Indenture, (b) at the time of incurrence of any
such Lien, the aggregate principal amount of the obligations secured by such
Lien shall not exceed the cost of the assets or property (or portions thereof)
so acquired or constructed, (c) each such Lien shall encumber only the assets or
property (or portions thereof) so acquired or constructed and shall attach to
such property within 120 days of the purchase or construction thereof and (d)
any Indebtedness secured by such Lien shall have been permitted to be incurred
under Section 4.11; (xii) precautionary filings of any financial statement under
the Uniform Commercial Code (or equivalent statutes) of any jurisdiction made in
connection with Capital Lease Obligations permitted to be incurred under Section
4.11, provided that such Lien does not violate clauses (a), (b) and (c) of
clause (xi) hereof; (xiii) liens incurred in the ordinary course of business
securing assets having a fair market value not in excess of $500,000 in the
aggregate; (xiv) Liens to secure permitted Refinancing Indebtedness incurred to
refinance existing Indebtedness or permitted Refinancing Indebtedness which is
secured by Liens permitted by this clause (xiv); provided, that such Liens do
not extend to any categories of assets other than the categories of assets
securing existing Indebtedness as of the date of this Indenture; (xv) Liens
securing reimbursement obligations with respect to commercial letters of credit
which encumber documents and other property relating to such letters of credit
and products and proceeds thereof and (xvi) leases or subleases granted to
others that do not materially interfere with the ordinary course of business of
the Company and its Restricted Subsidiaries.
"Permitted Refinancing" shall have the meaning specified in
Section 4.11.
"Person" or "person" means an individual, limited or general
partnership, corporation, limited liability company, association, unincorporated
organization, trust, joint stock company or joint venture, or a government or
any agency or political subdivision thereof.
"principal" of any Indebtedness means the principal of such
Indebtedness plus, without duplication, any applicable premium, if any, on such
Indebtedness.
"property" means any right or interest in or to property or
assets of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible.
"Purchase Money Obligations" of any Person means any
obligations of such Person or any of its Restricted Subsidiaries to any seller
or any other Person
15
incurred or assumed in connection with the purchase of real or personal property
or in the Capital Stock of a Person owning such real or personal property to be
used in the business of such Person or any of its subsidiaries within 180 days
of such incurrence or assumption.
"Qualified Stock" means any Capital Stock of the Company that
is not Disqualified Stock.
"Receivables" means the consolidated trade receivables of the
Company, net of allowance for doubtful accounts, as determined in accordance
with GAAP.
"Record Date" means a Record Date specified in the Notes
whether or not such Record Date is a Business Day.
"Redemption Date" means, when used with respect to any Note to
be redeemed, the date fixed for such redemption pursuant to Article III of this
Indenture and Paragraph 5 in the form of Note.
"Redemption Price" means, when used with respect to any Note
to be redeemed, the redemption price for such redemption pursuant to Paragraph 5
in the form of Note, which shall include, without duplication, in each case,
accrued and unpaid interest, if any, to and including the Redemption Date.
"Refinancing Indebtedness" shall have the meaning specified in
Section 4.11.
"Registrar" shall have the meaning specified in Section 2.3.
"Related Business" means any business which is the same as or
related, ancillary or complementary to any of the businesses of the Company and
its Restricted Subsidiaries on the date hereof.
"Related Person" of any Person means any other Person directly
or indirectly owning (a) 5% or more of the outstanding Common Stock of such
Person (or, in the case of a Person that is not a corporation, 5% or more of the
equity interests in such Person) or (b) 5% or more of the combined voting power
of the Voting Stock of such Person.
"Representative" means, any trustee, agent or representative
(if any) for an issue of Senior Indebtedness of the Company.
"Repurchase Date" shall have the meaning specified in Section
4.20.
"Repurchase Offer Period" shall have the meaning specified in
Section 4.20.
"Repurchase Price" shall have the meaning specified in Section
4.20.
16
"Restricted Investment" means an Investment other than a
Permitted Investment. With respect to Unrestricted Subsidiaries or Restricted
Subsidiaries, the amount of Restricted Investments shall be calculated as the
greater of (i) the book value of assets contributed by the Company or a
Restricted Subsidiary or (ii) the Fair Market Value of the assets contributed by
the Company or a Restricted Subsidiary (as certified by a resolution of
independent directors of the Company.
"Restricted Payment" shall have the meaning specified in
Section 4.12.
"Restricted Subsidiary" means (i) any Subsidiary of the
Company (other than a Subsidiary that is also a Subsidiary of an Unrestricted
Subsidiary) organized or acquired after the date of this Indenture, unless such
Subsidiary shall have been designated as an Unrestricted Subsidiary by
resolution of the Board of Directors as provided in and in compliance with the
definition of "Unrestricted Subsidiary" and (ii) any Unrestricted Subsidiary
which is designated as a Restricted Subsidiary by the Board of Directors of the
Company; provided that immediately after giving effect to the designation
referred to in clause (ii), no Default or Event of Default shall have occurred
and be continuing and the Company could incur at least $1.00 of additional
Indebtedness under Section 4.11. The Company shall evidence any such designation
to the Trustee by promptly filing with the Trustee an Officers' Certificate
certifying that such designation has been made and stating that such designation
complies with the requirements of the immediately preceding sentence.
"Revolver" means the revolving credit facility extended to the
Company as part of the New Credit Facility under the Credit Agreement.
"Securities Act" means the Securities Act of 1933, as amended,
and the rules and regulations of the Commission promulgated thereunder.
"Senior Indebtedness" means, with respect to the Company and
Subsidiary Guarantors, the Obligations of the Company and the Subsidiary
Guarantors under the Credit Agreement, the Senior Secured Notes Indenture and
the Senior Secured Notes.
"Senior Secured Notes" means the Company's 11% Senior Secured
Notes due 2010, issued pursuant to an Indenture, dated the date hereof, among
the Company, the Subsidiaries party thereto and The Bank of New York, as
trustee, and any securities issued in exchange or in substitution therefor.
"Senior Secured Notes Change of Control Offer" means an offer
to purchase Senior Secured Notes upon a Change of Control pursuant to the
provisions of the Senior Secured Notes Indenture.
"Senior Secured Notes Indenture" means the Indenture, dated
the date hereof, among the Company the Subsidiary Guarantors parties thereto and
The Bank of New York, as trustee, relating to the Senior Secured Notes, as may
be amended or supplemented from time to time in accordance with the terms
thereof.
17
"Special Record Date" for payment of any Defaulted Interest
means a date fixed by the Trustee pursuant to Section 2.12.
"Stated Maturity," when used with respect to any Note, means
September 30, 2013.
"Subsidiary" means, with respect to any Person, (i) any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled, directly or indirectly, by
such Person or one or more of the other Subsidiaries of that Person or a
combination thereof and (ii) any partnership (a) the sole general partner or the
managing general partner of which is such Person or a Subsidiary of such Person
or (b) the only general partners of which are such Persons or one or more
Subsidiaries of such Person or any combination thereof.
"Subsidiary Guarantee" means a guarantee on the terms set
forth in this Indenture by a Subsidiary Guarantor of the Company's obligations
with respect to the Notes.
"Subsidiary Guarantor" means each Domestic Restricted
Subsidiary and any other Person that becomes a Subsidiary Guarantor pursuant to
the provisions of Section 4.18 hereof or who otherwise exercises and delivers
supplemental indenture to the Trustee providing for a Subsidiary Guarantee.
"Term Loan" means the term loan made to the Company as part of
the New Credit Facility under the Credit Agreement.
"TIA" means the Trust Indenture Act of 1939, as amended and in
effect on the date of the execution of this Indenture unless otherwise specified
herein.
"Trustee" means the party named as such in this Indenture
until a successor replaces it in accordance with the provisions of this
Indenture and thereafter means such successor.
"Trust Officer" means any officer within the corporate trust
division (or any successor group) of the Trustee or any other officer of the
Trustee customarily performing functions similar to those performed by the
Persons who at that time shall be such officers, and also means, with respect to
a particular corporate trust matter, any other officer of the Trustee to whom
such trust matter is referred because of his knowledge of and familiarity with
the particular subject.
"Unrestricted Subsidiary" means, until such time as any of the
following shall be designated as a Restricted Subsidiary of the Company by the
Board of Directors of the Company as provided in and in compliance with the
definition of "Restricted Subsidiary," (i) any Subsidiary of the Company or of a
Restricted Subsidiary of the
18
Company organized or acquired after the date of this Indenture that is
designated concurrently with its organization or acquisition as an Unrestricted
Subsidiary by resolution of the Board of Directors of the Company, (ii) any
Subsidiary of any Unrestricted Subsidiary and (iii) any Restricted Subsidiary of
the Company that is designated as an Unrestricted Subsidiary by resolution of
the Board of Directors of the Company, provided that (a) immediately after
giving effect to such designation, no Default or Event of Default shall have
occurred and be continuing, (b) any such designation shall be deemed, at the
election of the Company at the time of such designation, to be either (but not
both) (x) the making of a Restricted Payment at the time of such designation in
an amount equal to the Investment in such Subsidiary subject to the restrictions
contained in Section 4.12 or (y) the making of an Asset Sale at the time of such
designation in an amount equal to the Investment in such Subsidiary subject to
the restrictions contained in Section 4.20, and (c) such Subsidiary or any of
its Subsidiaries does not own any Capital Stock or Indebtedness of, or own or
hold any Lien on any property of, the Company or any other Subsidiary of the
Company that is not a Subsidiary of the Subsidiary to be so designated. A Person
may be designated as an Unrestricted Subsidiary only if and for so long as such
Person (i) has no Indebtedness other than Non- Recourse Debt; (ii) is a Person
with respect to which neither the Company nor any of its Restricted Subsidiaries
has any direct or indirect obligation (a) to subscribe for additional Equity
Interests or (b) to make any payment to maintain or preserve such Person's
financial condition or to cause such Person to achieve any specified levels of
operating results; and (iii) has not guaranteed or otherwise directly or
indirectly provided credit support for any Indebtedness of the Company or any of
its Restricted Subsidiaries. The Company shall evidence any designation pursuant
to clause (i) or (iii) of the first sentence hereof to the Trustee by filing
with the Trustee within 45 days of such designation an Officers' Certificate
certifying that such designation has been made and, in the case of clause (iii)
of the first sentence hereof, the related election of the Company in respect
thereof.
"U.S. Government Obligations" means direct non-callable
obligations of, or noncallable obligations guaranteed by, the United States of
America for the payment of which obligation or guarantee the full faith and
credit of the United States of America is pledged.
"Voting Stock" means any class or classes of Capital Stock
pursuant to which the holders thereof have the general voting power under
ordinary circumstances to elect at least a majority of the board of directors,
managers, general partners or trustees of any Person (irrespective of whether or
not, at the time, Capital Stock of any other class or classes shall have, or
might have, voting power by reasons of the happening of any contingency) or,
with respect to a partnership (whether general or limited), any general partner
interest in such partnership.
"Weighted Average Life to Maturity" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing (i) the sum
of the products obtained by multiplying (a) the amount of each then remaining
installment, sinking fund, serial maturity or other required payments of
principal, including payment
19
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, by (ii) the then outstanding principal amount of such
Indebtedness.
"Wholly Owned Subsidiary" of any Person means a Subsidiary of
such Person 100% of the outstanding Capital Stock or other ownership interests
of which (other than directors' qualifying shares) shall be at the time be
beneficially owned by such Person either directly or indirectly through Wholly
Owned Subsidiaries.
SECTION 1.2. INCORPORATION BY REFERENCE OF TIA.
Whenever this Indenture refers to a provision of the TIA, such
provision is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:
(1) "indenture securities" means the Notes.
(2) "indenture security holder" means a Holder or a
Noteholder.
(3) "indenture to be qualified" means this Indenture.
(4) "indenture trustee" or "institutional trustee" means
the Trustee.
(5) "obligor" on the indenture securities means the
Company and any other obligor on the Notes.
All other TIA terms used in this Indenture that are defined by
the TIA, defined by TIA reference to another statute or defined by Commission
rule and not otherwise defined herein have the meanings assigned to them
thereby.
SECTION 1.3. RULES OF CONSTRUCTION.
Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP;
(3) "or" is not exclusive;
(4) words in the singular include the plural, and words
in the plural include the singular;
(5) provisions apply to successive events and
transactions;
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(6) "herein," "hereof" and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision;
(7) references to Sections or Articles means reference to
such Section or Article in this Indenture, unless stated otherwise; and
(8) terms defined in this Article include the plural as
well as the singular.
ARTICLE II
THE NOTES
SECTION 2.1. FORM AND DATING.
The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rule or usage
in addition to those set forth in Exhibit A hereto. The Company shall approve
the form of the Notes and any notation, legend or endorsement on them. Each Note
shall be dated the date of its authentication. The Notes shall be in
denominations of $1,000 and integral multiples thereof.
The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. To the
extent any provision of any Note conflicts with the express provisions of this
Indenture, the provisions of this Indenture shall govern and be controlling.
(a) Global Notes. Subject to the right of holders to take
Definitive Notes, the Notes issued hereunder shall be evidenced by a Global
Note, deposited with the Trustee, as custodian for the Depositary, and
registered in the name of the Depositary or a nominee of the Depositary, duly
executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of the Global Note may from time to
time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary or its nominee, as hereinafter
provided.
The Global Note shall represent such of the outstanding Notes
as shall be specified therein and shall provide that it shall represent the
aggregate amount of outstanding Notes from time to time endorsed thereon and
that the aggregate amount of outstanding Notes represented thereby may from time
to time be reduced or increased, as appropriate, to reflect exchanges,
redemptions and transfers of interests therein in accordance with the terms of
this Indenture. Any endorsement of a Global Note to reflect the amount of any
increase or decrease in the principal amount of outstanding Notes represented
thereby shall be made by the Trustee or Note Custodian, at the election of the
21
Trustee, in accordance with instructions given by the Holder thereof as required
by Section 2.6 hereof.
Except as set forth in Section 2.6 hereof, the Global Note may
be transferred, in whole and not in part, only to another nominee of the
Depositary or to a successor of the Depositary or its nominee.
(b) Book-Entry Provisions. This Section 2.1(b) shall
apply only to the Global Notes deposited with or on behalf of the Depositary.
The Company shall execute and the Trustee shall, in accordance
with Section 2.2, authenticate and deliver the Global Note, which (i) shall be
registered in the name of the Depositary or the nominee of the Depositary and
(ii) shall be delivered by the Trustee to the Depositary pursuant to the
Depositary's instructions or held by the Trustee as custodian for the
Depositary.
Agent Members shall have no rights either under this Indenture
with respect to any Global Note held on their behalf by the Depositary or by the
Trustee as custodian for the Depositary or under such Global Note, and the
Depositary may be treated by the Company, the Trustee and any agent of the
Company or the Trustee as the absolute owner of such Global Note for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
the Company, the Trustee or any agent of the Company or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by
the Depositary or impair, as between the Depositary and its Agent Members, the
operation of customary practices of such Depositary governing the exercise of
the rights of an owner of a beneficial interest in any Global Note.
(c) Definitive Notes. Notes issued in certificated form
shall be substantially in the form of Exhibit A attached hereto registered in
the name of the Holder thereof, substantially in the form of Exhibit A hereto
except that such Notes shall not bear the Global Note legend referred to in
footnote 1 thereto.
SECTION 2.2. EXECUTION AND AUTHENTICATION.
Two Officers shall sign the Notes for the Company by manual or
facsimile signature. The Company's seal shall be impressed, affixed, imprinted
or reproduced on the Notes and may be in facsimile form.
If an Officer whose signature is on a Note no longer holds
that office at the time the Note is authenticated, the Note shall nevertheless
be valid.
A Note shall not be valid until authenticated by the manual
signature of the Trustee. The signature shall be conclusive evidence that the
Note has been authenticated pursuant to the terms of this Indenture.
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The Trustee shall, upon written order of the Company signed by
two Officers, authenticate Notes for original issue in the aggregate principal
amount of up to $100,000,000 in one or more series. The aggregate principal
amount of Notes outstanding at any time may not exceed $100,000,000 except as
provided in Section 2.8. As of the date of this Indenture, there shall be
issued, authenticated and outstanding not more than $100,000,000 aggregate
principal amount of Notes. The written order shall specify the amount of Notes
to be authenticated and the date on which the Notes are to be authenticated.
The Trustee may appoint an authenticating agent acceptable to
the Company to authenticate Notes. Unless otherwise provided in the appointment,
an authenticating agent may authenticate Notes whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with the Company, any Affiliate of the Company, or any of their
respective Subsidiaries.
SECTION 2.3. REGISTRAR AND PAYING AGENT.
The Company shall maintain an office or agency, where Notes
may be presented for registration of transfer or for exchange ("Registrar") and
an office or agency where Notes may be presented for payment ("Paying Agent").
The Registrar shall keep a register of the Notes (including principal and
interest thereon) and of their transfer and exchange. The Company may have one
or more co-Registrars and one or more additional Paying Agents. The term
"Registrar" includes any co-Registrars and the term "Paying Agent" includes any
additional Paying Agent. The Company or any of its Restricted Subsidiaries may
act as Paying Agent or Registrar.
The Company shall enter into an appropriate written agency
agreement with any Agent not a party to this Indenture, which agreement shall
implement the provisions of this Indenture that relate to such Agent. The
Company shall promptly 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,
the Trustee shall act as such and shall be duly compensated therefor in
accordance with the Trustee's customary fees for providing such service.
The Company may change any Paying Agent or Registrar without
notice to any Holder. The Company hereby initially appoints the Trustee as
Registrar and Paying Agent, and the Trustee hereby initially agrees so to act.
The Company initially appoints The Depository Trust Company
("DTC") to act as Depositary with respect to any Global Notes.
The Company initially appoints the Trustee to act as Note
Custodian with respect to any Global Notes.
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SECTION 2.4. PAYING AGENT TO HOLD ASSETS IN TRUST.
The Company shall require each Paying Agent other than the
Trustee to agree in writing that each Paying Agent shall hold in trust for the
benefit of Holders and the Trustee all assets held by the Paying Agent for the
payment of principal, premium and interest with respect to the Notes (whether
such assets have been distributed to it by the Company or any other obligor on
the Notes), and shall notify the Trustee in writing of any Default in making any
such payment. If either of the Company or a Subsidiary of the Company acts as
Paying Agent, it shall segregate such assets and hold them as a separate trust
fund for the benefit of the Holders and the Trustee. The Company at any time may
require a Paying Agent to distribute all assets held by it to the Trustee and
account for any assets disbursed, and the Trustee may at any time during the
continuance of any payment Default, upon written request to a Paying Agent,
require such Paying Agent to distribute all assets held by it to the Trustee and
to account for any assets distributed. Upon distribution to the Trustee of all
assets that shall have been delivered by the Company to the Paying Agent, the
Paying Agent (if other than the Company or an Affiliate of the Company) shall
have no further liability for such assets.
SECTION 2.5. NOTEHOLDER LISTS.
The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Holders and shall otherwise comply with Section 312(a) of the TIA.
If the Trustee is not the Registrar, the Company shall furnish to the Trustee at
least seven Business Days before each Interest Payment Date and at such other
times as the Trustee may request in writing a list in such form and as of such
date as the Trustee reasonably may require of the names and addresses of Holders
(which list may be conclusively relied upon by the Trustee) and the Company
shall otherwise comply with Section 312(a) of the TIA.
SECTION 2.6. TRANSFER AND EXCHANGE.
(a) Transfer and Exchange of Global Notes. (i) The
transfer and exchange of Global Notes or beneficial interests therein shall be
effected through the Depositary, in accordance with this Indenture and the
procedures of the Depositary therefor. Notwithstanding any other provision in
this Indenture, no Global Note may be transferred to, or registered or exchanged
for Notes registered in the name of, any Person other than the Depositary for
such Global Note or any nominee thereof, and no such transfer may be registered,
unless (i) such Depositary (A) notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Note or (B) ceases to be a
clearing agency registered under the Exchange Act, (ii) the Company delivers to
the Trustee an Officers' Certificate stating that such Global Note shall be so
transferable, registrable, and exchangeable, and such transfers shall be
registrable, or (iii) upon the request of a Holder if there shall have occurred
and be continuing an Event of Default with respect to the Notes evidenced by
such Global Note. Notwithstanding any other provision in this Indenture, a
Global Note to which the restriction set forth in the preceding sentence shall
have ceased to apply may be transferred only to, and may be
24
registered and exchanged for Notes registered only in the name or names of, such
Person or Persons as the Depositary for such Global Note shall have directed,
and no transfer thereof other than such a transfer may be registered. Every Note
authenticated and delivered upon registration of transfer of, or in exchange for
or in lieu of, a Global Note to which the restriction set forth in the first
sentence of this paragraph shall apply, whether pursuant to this Section 2.6 or
otherwise, shall be authenticated and delivered in the form of, and shall be, a
Global Note.
(ii) When a Global Note is presented to the
Registrar with a request (1) to register the transfer of the Global
Note or (2) to exchange such Global Note for an equal principal amount
of Notes of other denominations, the Registrar shall register the
transfer or make the exchange of its requirements for such transactions
are met; provided, however, that any Note presented or surrendered for
registration of transfer or exchange shall be duly endorsed or
accompanied by a written instrument of transfer in form satisfactory to
the Registrar and the Trustee duly executed by the Holder thereof or by
his attorney duly authorized in writing. To permit registrations of
transfer and exchanges, the Company shall issue and the Trustee shall
authenticate Notes at the Registrar's request, subject to such rules as
the Trustee may reasonably require.
(b) Transfer and Exchange of Definitive Notes. When
Definitive Notes are presented to the Registrar with a request to register the
transfer of such Definitive Notes, or to exchange such Definitive Notes for an
equal principal amount of Definitive Notes of other authorized denominations,
the Registrar shall register the transfer or make the exchange as requested only
if its reasonable requirements for such transaction are met; provided, however,
that the Definitive Notes presented and surrendered for registration of transfer
or exchange shall be duly endorsed or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Company and the Registrar, duly
executed by the older thereof or his attorney duly authorized in writing.
(c) Transfer of a Definitive Note for a Beneficial
Interest in the Global Note. A Definitive Note may be exchanged for a beneficial
interest in the Global Note only upon receipt by the Trustee of a Definitive
Note, duly endorsed or accompanied by appropriate instruments of transfer, in
form reasonably satisfactory to the Trustee and the Company, together with
written instructions directing the Trustee to make an endorsement on the Global
Note to reflect an increase in the aggregate principal amount of the Notes
represented by the Global Note.
(d) Transfer of a Beneficial Interest in a Global Note
for a Definitive Note. A beneficial interest in the Global Note may be exchanged
for a Definitive Note only under the circumstances described in Section 2.6(g)
and upon receipt by the Trustee of written transfer instructions (or such other
form of instructions as is customary for the Depositary) from the Depositary (or
its nominee) on behalf of any Person having a beneficial interest in a Global
Note that such Note is being transferred, in which case the Trustee shall, in
accordance with the standing instructions and procedures existing
25
between the Depositary and the Trustee, cause the aggregate principal amount of
the Global Note to be reduced accordingly and, following such reduction, the
Company shall execute and the Trustee shall authenticate and make available for
delivery to the transferee a Definitive Note in the appropriate principal
amount. Definitive Notes issued in exchange for a beneficial interest in a
Global Note pursuant to subsection (a) this Section 2.6 shall be registered in
such names and in such authorized denominations as the Depositary, pursuant to
instructions from its direct or indirect participants or otherwise, shall
instruct the Trustee. The Trustee shall deliver such Definitive Notes to the
persons in whose names such Notes are so registered.
(e) Cancellation and/or Adjustment of the Global Note. At
such time as all beneficial interests in the Global Note have either been
exchanged for Definitive Notes, redeemed, repurchased or canceled, the Global
Note shall be returned to or retained and canceled by the Trustee. At any time
prior to such cancellation, if any beneficial interest in the Global Note is
exchanged for Definitive Notes, redeemed, repurchased or canceled, the aggregate
principal amount of Notes represented by such Global Note shall be reduced
accordingly, and an endorsement shall be made on such Global Note by the Trustee
to reflect such reduction.
(f) General Provisions Relating to Transfers and
Exchanges.
(i) To permit registrations of transfers and
exchanges effected in accordance with this Indenture, the Company shall
execute and the Trustee shall authenticate the Global Note and any
Definitive Notes at the Registrar's request. The Global Note and any
Definitive Notes issued upon any registration of transfer or exchange
of beneficial interests in the Global Note or the Definitive Notes
shall be legal, valid and binding obligations of the Company,
evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Definitive Notes or Global Note surrendered upon such
registration of transfer or exchange.
(ii) Neither the Company nor the Registrar shall
be required to (a) issue, register the transfer of or exchange Notes
during a period beginning at the opening of business on a Business Day
15 days before the day of mailing of any notice of redemption of Notes
under Section 3.3 hereof and ending at the close of business on the day
of such mailing or (b) register the transfer of or exchange any Note so
selected for redemption in whole or in part, except the unredeemed
portion of any Note being redeemed in part.
(iii) No service fee shall be charged to any
Holder of a Note for any registration of transfer or exchange (except
as otherwise expressly permitted herein), but the Company may require
payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than such
transfer tax or similar governmental charge payable upon exchanges
pursuant to Sections 2.10, 3.7, 4.20, 4.21 or 9.5 hereof, which shall
be paid by the Company).
26
(iv) Prior to due presentment to the Trustee for
registration of the transfer of any Note, the Trustee, any Agent and
the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of
receiving payment of principal of and interest on such Note and for all
other purposes whatsoever, whether or not such Note is overdue, and
none of the Trustee, any Agent or the Company shall be affected by
notice to the contrary.
(v) The Trustee shall authenticate Global Notes
and Definitive Notes in accordance with the provisions of Section 2.2
hereof.
(vi) All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant
to this Section 2.6 to effect a registration of transfer or exchange
may be submitted by facsimile.
(vii) The Trustee is hereby authorized to enter
into a letter of representation with the Depositary in the form
provided by the Company and to act in accordance with such letter.
(g) Legends.
The following legend shall appear on the face of all Global
Notes issued under this Indenture:
"THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE
BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY
CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY
BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY
BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE
INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE
MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF
THE COMPANY.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES
IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 XXXXX XXXXXX, XXX XXXX, XXX XXXX) ("XXX"), TO THE
COMPANY OR ITS
27
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO, OR IN SUCH OTHER NAME AS MAY BE REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR
TO SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS
AN INTEREST HEREIN."
SECTION 2.7. REPLACEMENT NOTES.
If a mutilated Note is surrendered to the Trustee or if the
Holder of a Note claims and submits an affidavit or other evidence, satisfactory
to the Trustee, to the Trustee to the effect that the 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 are met. If
required by the Trustee or the Company, such Holder must provide an indemnity
bond or other indemnity, sufficient in the judgment of both the Company and the
Trustee, to protect the Company, the Trustee or any agent from any loss which
any of them may suffer if a Note is replaced. The Company may charge such Holder
for its reasonable, out-of-pocket expenses in replacing a Note.
In case any such mutilated, destroyed, lost or stolen Note has
become or is about to become due and payable, the Company in its discretion,
may, instead of issuing a new Note, pay such Note, upon satisfaction of the
conditions set forth in the preceding paragraph.
Every new Note issued pursuant to this Section 2.7 in lieu of
any mutilated, destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Note shall be at any time enforceable by anyone, and
such new Note shall be entitled to all the benefits of this Indenture equally
and proportionately with any and all other Notes duly issued hereunder.
The provisions of this Section 2.7 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies of any Holder with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Notes.
SECTION 2.8. OUTSTANDING NOTES.
Notes outstanding at any time are all the Notes that have been
authenticated by the Trustee (including any Note represented by a Global Note)
except those cancelled by it, those delivered to it for cancellation, those
reductions in the interest in a Global Note effected by the Trustee hereunder
and those described in this Section 2.8 as not outstanding. A Note does not
cease to be outstanding because the Company or an Affiliate of the Company holds
the Note, except as provided in Section 2.9.
28
If a Note is replaced pursuant to Section 2.7 (other than a
mutilated Note surrendered for replacement), it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Note is held by
a bona fide purchaser. A mutilated Note ceases to be outstanding upon surrender
of such Note and replacement thereof pursuant to Section 2.7.
If on a Redemption Date the Paying Agent (other than the
Company or an Affiliate of the Company) holds Cash or U.S. Government
Obligations sufficient to pay all of the principal and interest due on the Notes
payable on that date in accordance with Section 3.6 hereof and payment of the
Notes called for redemption is not otherwise prohibited pursuant to Article XI
hereof or otherwise, then on and after that date such Notes cease to be
outstanding and interest on them ceases to accrue.
SECTION 2.9. TREASURY NOTES.
In determining whether the Holders of the required principal
amount of Notes have concurred in any direction, amendment, supplement, waiver
or consent, Notes owned by the Company or an Affiliate of the Company shall be
disregarded, except that, for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, amendment, supplement,
waiver or consent, only Notes that a Trust Officer of the Trustee actually knows
are so owned shall be disregarded. The Trustee may require an Officer's
Certificate listing Notes owned by the Company, a subsidiary of the Company or
an Affiliate of the Company.
SECTION 2.10. TEMPORARY NOTES.
Until definitive Notes are ready for delivery, the Company may
prepare and, upon written order of the Company specifying the amount of
temporary Notes and date on which the temporary Notes are to be authenticated,
the Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Company reasonably and in good faith considers appropriate for temporary Notes.
Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Notes in exchange for temporary Notes. Until so
exchanged, the temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as permanent Notes authenticated and delivered
hereunder.
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, or
at the direction of the Trustee, the Registrar or the Paying Agent (other than
the Company or an Affiliate of the Company), and no one else, shall cancel and,
at the written direction of the Company, shall dispose of all Notes surrendered
for transfer, exchange, payment or cancellation. Subject to Section 2.7 and the
Registered Exchange Offer, the Company may not issue
29
new Notes to replace Notes that have been paid or delivered to the Trustee for
cancellation. No Notes shall be authenticated in lieu of or in exchange for any
Notes cancelled as provided in this Section 2.11, except as expressly permitted
in the form of Notes and as permitted by this Indenture.
SECTION 2.12. DEFAULTED INTEREST.
Interest on any Note which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the person
in whose name that Note (or one or more predecessor Notes) is registered at the
close of business on the Record Date for such interest.
Any interest on any Note which is payable, but is not
punctually paid or duly provided for, on any Interest Payment Date plus, to the
extent lawful, interest payable on the defaulted interest at the same rate per
annum borne by the Notes (collectively, herein called "Defaulted Interest")
shall forthwith cease to be payable to the registered Holder on the relevant
Record Date, and such Defaulted Interest may be paid by the Company, at its
election in each case, as provided in clause (1) or (2) below:
(1) The Company may elect to make payment of any
Defaulted Interest to the persons in whose names the Notes (or
their respective predecessor Notes) are registered at the
close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following
manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Note
and the date of the proposed payment, and at the same time the
Company shall deposit with the Trustee an amount of Cash equal
to the aggregate amount proposed to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to
the Trustee for such deposit prior to the date of the proposed
payment, such Cash when deposited to be held in trust for the
benefit of the persons entitled to such Defaulted Interest as
provided in this clause (1). Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest
which shall be not more than 15 days and not less than 10 days
prior to the date of the proposed payment and not less than 10
days after the receipt by the Trustee of the notice of the
proposed payment. The Trustee shall promptly notify the
Company of such Special Record Date and, in the name and at
the expense of the Company, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date
therefor to be mailed, first-class postage prepaid, to each
Holder at his address as it appears in the Note register not
less than 10 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the
Special Record Date therefor having been mailed as aforesaid,
such Defaulted Interest shall be paid to the persons in whose
names the Notes (or their respective predecessor Notes) are
30
registered on such Special Record Date and shall no longer be
payable pursuant to the following clause (2).
(2) The Company may make payment of any
Defaulted Interest in any other lawful manner not inconsistent
with the requirements of any securities exchange on which the
Notes may be listed, and upon such notice as may be required
by such exchange, if, after notice given by the Company to the
Trustee of the proposed payment pursuant to this clause, such
manner shall be deemed practicable by the Trustee.
Subject to the foregoing provisions of this Section 2.12, each
Note delivered under this Indenture upon transfer of or in exchange for or in
lieu of any other Note shall carry the rights to interest accrued and unpaid,
and to accrue, which were carried by such other Note.
SECTION 2.13. PERSONS DEEMED OWNERS.
The Company, the Trustee, any Paying Agent and any
authenticating agent may treat the Person in whose name any Note is registered
as the owner of such Note for the purpose of receiving payments of principal of,
premium, if any, or interest on such Note and for all other purposes. None of
the Company, the Trustee, any Paying Agent or any authenticating agent shall be
affected by any notice to the contrary.
SECTION 2.14. ISSUANCE OF ADDITIONAL NOTES .
The Company shall be entitled, subject to its compliance with
Section 4.11 hereof, to issue Additional Notes under this Indenture which shall
have identical terms as the Initial Notes issued on the date hereof, other than
with respect to the date of issuance, and issue price. The Initial Notes issued
on the date hereof and any Additional Notes shall be treated as a single class
for all purposes under this Indenture, including without limitation, directions,
waivers, consents, redemptions and Offers to Purchase.
With respect to any Additional Notes, the Company shall set
forth in a Board Resolution and an Officers' Certificate, a copy of each of
which shall be delivered to the Trustee, the following information:
(a) the aggregate principal amount of such Additional
Notes to be authenticated and delivered pursuant to this Indenture;
(b) the issue price, the issue date and the CUSIP and/or
ISIN number of such Additional Notes; and
(c) whether such Additional Notes shall be subject to the
restrictions on transfer set forth in Section 2.6 hereof relating to Restricted
Global Notes and Restricted Definitive Notes.
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SECTION 2.15. CUSIP NUMBERS.
The Company in issuing the Notes may use "CUSIP" numbers (if
then generally in use), and, if so, the Trustee shall use "CUSIP" numbers in
notices of redemption as a convenience to Holders; provided that any such notice
may state that no representation is made as to the correctness of such numbers
either as printed on the Notes or as contained in any notice of a redemption and
that reliance may be placed only on the other identification numbers printed on
the Notes, and any such redemption shall not be affected by any defect in or
omission of such numbers. The Company will promptly notify the Trustee in
writing of any change in the "CUSIP" numbers.
ARTICLE III
REDEMPTION
SECTION 3.1. RIGHT OF REDEMPTION.
Redemption of Notes, as permitted by any provision of this
Indenture, shall be made in accordance with Paragraph 5 of the Notes and this
Article III.
SECTION 3.2. NOTICES TO TRUSTEE.
If the Company elects to redeem Notes pursuant to the optional
redemption provisions of Section 3.8 hereof and Paragraph 5 of the Notes, it
shall notify the Trustee in an Officer's Certificate of the Redemption Date, the
Redemption Price, the principal amount of Notes to be redeemed and stating that
the redemption will comply with the conditions contained herein and whether it
wants the Trustee to give notice of redemption to the Holders.
If the Company elects to reduce the principal amount of Notes
to be redeemed pursuant to Section 3.8 hereof and Paragraph 5 of the Notes by
crediting against any such redemption Notes it has not previously delivered to
the Trustee for cancellation, it shall so notify the Trustee of the amount of
the reduction and deliver such Notes with such notice.
The Company shall give each notice to the Trustee provided for
in this Section 3.2 at least 45 days before the Redemption Date (unless a
shorter notice shall be satisfactory to the Trustee). Any such notice may be
cancelled at any time prior to notice of such redemption being mailed to any
Holder and shall thereby be void and of no effect.
SECTION 3.3. SELECTION OF NOTES TO BE REDEEMED.
If less than all of the Notes are to be redeemed at any time,
the Trustee shall select the Notes to be redeemed in such manner as complies
with any applicable depositary, legal and national securities exchange or
automated quotation system if any,
32
on which the Notes are listed or, if the Notes are not so listed, on a pro rata
basis, by lot or by such other method as the Trustee shall determine to be fair
and appropriate, provided that no Notes of $1,000 principal amount or less shall
be redeemed in part.
The Trustee shall make the selection from the Notes
outstanding and not previously called for redemption and shall promptly notify
the Company in writing of the Notes selected for redemption and, in the case of
any Note selected for partial redemption, the principal amount thereof to be
redeemed. The Trustee may select for redemption portions (equal to $1,000 or any
integral multiple thereof) of the principal of Notes that have denominations
larger than $1,000. Provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.
SECTION 3.4. NOTICE OF REDEMPTION.
At least 30 days but not more than 60 days before a Redemption
Date, the Company shall send a notice of redemption, by first class mail, to the
Trustee and to each Holder whose Notes are to be redeemed. At the Company's
request, the Trustee shall give the notice of redemption in the Company's name
and at the Company's expense. Each notice for redemption shall identify the
Notes to be redeemed and shall state:
(1) the Redemption Date;
(2) the Redemption Price, including the amount
of accrued and unpaid interest, if any, to be paid upon such
redemption;
(3) the name, address and telephone number of
the Paying Agent;
(4) that Notes called for redemption must be
surrendered to the Paying Agent at the address specified in
such notice to collect the Redemption Price;
(5) that, unless (a) the Company defaults in its
obligation to deposit Cash with the Paying Agent in accordance
with Section 3.6 hereof or (b) such redemption payment is
prohibited pursuant to Article XI hereof or otherwise, Notes
called for redemption cease to accrue interest on and after
the Redemption Date, and the only remaining right of the
Holders of such Notes is to receive payment of the Redemption
Price, including accrued and unpaid interest thereon to, but
excluding, the Redemption Date, upon surrender to the Paying
Agent of the Notes called for redemption and to be redeemed;
(6) if any Note is being redeemed in part, the
portion of the principal amount, equal to $1,000 or any
integral multiple thereof, of such Note to be redeemed and
that, after the Redemption Date, and upon
33
surrender of such Note, a new Note or Notes in aggregate
principal amount equal to the unredeemed portion thereof will
be issued;
(7) if less 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 such Notes to be redeemed and the
aggregate principal amount of Notes to be outstanding after
such partial redemption;
(8) the CUSIP number of the Notes to be
redeemed; and
(9) that the notice is being sent pursuant to
this Section 3.4 and pursuant to the redemption provisions of
Paragraph 5 of the Notes.
SECTION 3.5. EFFECT OF NOTICE OF REDEMPTION.
Once notice of redemption is mailed in accordance with Section
3.4, Notes called for redemption become due and payable on the Redemption Date
and at the Redemption Price, including accrued and unpaid interest, if any, to
the Redemption Date. Upon surrender to the Trustee or Paying Agent, such Notes
called for redemption shall be paid at the Redemption Price, including accrued
and unpaid interest, if any, to, but excluding, the Redemption Date; provided
that if the Redemption Date is after a regular Record Date and on or prior to
the corresponding Interest Payment Date, the accrued interest shall be payable
to the Holder of the redeemed Notes registered on the relevant Record Date; and
provided, further, that if a Redemption Date is not a Business Day, payment
shall be made on the next succeeding Business Day and no interest shall accrue
for the period from such Redemption Date to such succeeding Business Day.
SECTION 3.6. DEPOSIT OF REDEMPTION PRICE.
On or prior to the Redemption Date, the Company shall deposit
with the Paying Agent (other than the Company or an Affiliate of the Company)
Cash sufficient to pay the Redemption Price of, including accrued and unpaid
interest on all Notes to be redeemed on such Redemption Date (other than Notes
or portions thereof called for redemption on that date that have been delivered
by the Company to the Trustee for cancellation). The Paying Agent shall promptly
return to the Company any Cash so deposited which is not required for that
purpose upon the written request of the Company.
If the Company complies with the preceding paragraph and the
other provisions of this Article III and payment of the Notes called for
redemption is not prohibited under Article XI or otherwise, interest on the
Notes to be redeemed will cease to accrue on and after the applicable Redemption
Date, whether or not such Notes are presented for payment. Notwithstanding
anything herein to the contrary, if any Note surrendered for redemption in the
manner provided in the Notes shall not be so paid upon surrender for redemption
because of the failure of the Company to comply with the
34
preceding paragraph, interest shall continue to accrue and be paid from the
Redemption Date until such payment is made on the unpaid principal, and, to the
extent lawful, on any interest not paid on such unpaid principal, in each case
at the rate and in the manner provided in Section 4.1 hereof and the Note.
SECTION 3.7. NOTES REDEEMED IN PART.
Upon surrender of a Note that is to be redeemed in part, the
Company shall execute and the Trustee shall authenticate and deliver to the
Holder, without service charge to the Holder, a new Note or Notes equal in
principal amount to the unredeemed portion of the Note surrendered.
SECTION 3.8. OPTIONAL REDEMPTION.
The Notes may be redeemed in whole or from time to time in
part at any time, at the option of the Company, at the Redemption Prices
(expressed as a percentage of principal amount) set forth below with respect to
the indicated Redemption Date, in each case, plus any accrued but unpaid
interest to, but excluding, the Redemption Date.
If redeemed during
the 12-month period
beginning September 30, Redemption Price
----------------------- ----------------
2003................................................ 103%
2004................................................ 102%
2005................................................ 101%
2006 and thereafter................................. 100%
SECTION 3.9. MANDATORY REDEMPTION.
Except as set forth under Sections 4.20 and 4.21 hereof, the
Company shall not be required to make mandatory redemption payments with respect
to the Notes.
ARTICLE IV
COVENANTS
SECTION 4.1. PAYMENT OF NOTES.
The Company shall pay the principal of and interest on the
Notes on the dates and in the manner provided in the Notes. An installment of
principal of, or interest on the Notes shall be considered paid on the date it
is due if the Trustee or Paying Agent (other than the Company or an Affiliate of
the Company) holds for the benefit of the Holders, on or before 10:00 a.m. New
York City time on that date, Cash deposited and designated for and sufficient to
pay the installment.
35
The Company shall pay interest on overdue principal and on
overdue installments of interest at the rate specified in the Notes compounded
semi-annually, to the extent lawful.
SECTION 4.2. MAINTENANCE OF OFFICE OR AGENCY.
The Company shall maintain in the Borough of Manhattan, The
City of New York, an office or agency where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company 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 set forth in Section 12.2.
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;
provided, however, that no such designation or rescission shall in any manner
relieve the Company of its obligation to maintain an office or agency in the
Borough of Manhattan, The City of New York, for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and 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 as
such office.
SECTION 4.3. CORPORATE EXISTENCE.
Subject to Article V, the Company shall do or cause to be done
all things necessary to preserve and keep in full force and effect its corporate
existence and the corporate or other existence of each of its Subsidiaries in
accordance with the respective organizational documents of each of them and the
rights (charter and statutory) and corporate franchises of the Company and each
of its Subsidiaries; provided, however, that the Company shall not be required
to preserve, with respect to itself, any right or franchise, and with respect to
any of its Subsidiaries, any such existence, right or franchise, if (a) the
Company shall, in good faith, reasonably determine that the preservation thereof
is no longer desirable in the conduct of the business of such entity and (b) the
loss thereof is not disadvantageous in any material respect to the Holders.
SECTION 4.4. PAYMENT OF TAXES AND OTHER CLAIMS.
Except with respect to immaterial items, the Company shall,
and shall cause each of its Subsidiaries to, pay or discharge or cause to be
paid or discharged, before the same shall become delinquent, (i) all taxes,
assessments and governmental charges (including withholding taxes and any
penalties, interest and additions to taxes) levied or imposed upon the Company
or any of its Subsidiaries or any of their respective
36
properties and assets and (ii) all lawful claims, whether for labor, materials,
supplies, services or anything else, which have become due and payable and which
by law have or may become a Lien upon the property and assets of the Company or
any of its Subsidiaries; provided, however, that neither the Company nor any
Subsidiary shall be required to pay or discharge or cause to be paid or
discharged any such tax, assessment, charge or claim whose amount, applicability
or validity is being contested in good faith by appropriate proceedings and for
which disputed amounts adequate reserves have been established in accordance
with GAAP.
SECTION 4.5. MAINTENANCE OF PROPERTIES AND INSURANCE.
The Company shall cause all material properties used or useful
to the conduct of its business and the business of each of its Subsidiaries to
be maintained and kept in good condition, repair and working order (reasonable
wear and tear excepted) 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 reasonable good faith judgment may be
necessary, so that the business carried on in connection therewith may be
properly conducted at all times; provided, however, that nothing in this Section
4.5 shall prevent the Company or any Subsidiary from discontinuing any operation
or maintenance of any of such properties, or disposing of any of them, if such
discontinuance or disposal is (a) in the judgment of the Company, desirable in
the conduct of the business of such entity and (b) not disadvantageous in any
material respect to the Holders.
The Company shall provide, or cause to be provided, for itself
and each of its Subsidiaries, insurance (including appropriate self-insurance)
against loss or damage of the kinds that, in the reasonable, good faith judgment
of the Company is adequate and appropriate for the conduct of the business of
the Company and such Subsidiaries in a prudent manner, with (except for
self-insurance) reputable insurers or with the government of the United States
of America or an agency or instrumentality thereof, in such amounts, with such
deductibles, and by such methods as shall be customary, in the reasonable, good
faith judgment of the Company and adequate and appropriate for the conduct of
the business of the Company and such Subsidiaries in a prudent manner for
entities similarly situated in their industry, unless failure to provide such
insurance (together with all other such failures) would not have a material
adverse effect on the financial condition or results of operations of the
Company or such Subsidiary.
SECTION 4.6. COMPLIANCE CERTIFICATE; NOTICE OF DEFAULT.
(a) The Company shall deliver to the Trustee within 120
days after the end of its fiscal year an Officers' Certificate complying with
Section 314(a)(4) of the TIA and stating that a review of its activities and the
activities of its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining whether
the Company has kept, observed, performed and fulfilled its obligations under
this Indenture and further stating, as to each such Officer signing such
certificate, whether or not the signer knows of any failure by the Company or
any
37
Subsidiary of the Company to comply with any conditions or covenants in this
Indenture and, if such xxxxxx does know of such a failure to comply, the
certificate shall describe such failure with particularity. The Officers'
Certificate shall also notify the Trustee should the relevant fiscal year end on
any date other than the current fiscal year end date.
(b) The Company shall, so long as any of the Notes are
outstanding, deliver to the Trustee, promptly upon becoming aware of any
Default, Event of Default or fact which would prohibit the making of any payment
to or by the Trustee in respect of the Notes, an Officers' Certificate
specifying such Default, Event of Default or fact and what action the Company is
taking or proposes to take with respect thereto. The Trustee shall not be deemed
to have knowledge of any Default, any Event of Default or any such fact unless
one of its Trust Officers receives notice thereof from the Company or any of the
Holders.
SECTION 4.7. REPORTS.
Whether or not the Company is subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, the Company shall
deliver to the Trustee and to each Holder and to prospective purchasers of Notes
identified to the Company, within 15 days after it is or would have been
required to file such with the Commission, annual and quarterly consolidated
financial statements substantially equivalent to financial statements that would
have been included in reports filed with the Commission if the Company was
subject to the requirements of Section 13 or 15(d) of the Exchange Act,
including, with respect to annual information only, a report thereon by the
Company's certified independent public accountants as such would be required in
such reports to the Commission and, in each case, together with a management's
discussion and analysis of financial condition and results of operations which
would be so required. 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 4.8. LIMITATION ON STATUS AS INVESTMENT COMPANY.
Neither the Company nor any of its Subsidiaries shall become
an "investment company" (as that term is defined in the Investment Company Act
of 1940, as amended), or otherwise become subject to regulation under the
Investment Company Act.
SECTION 4.9. 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, plead, or in any manner whatsoever
claim or take the benefit or advantage of, any stay or extension law or any
usury law or other law which would prohibit or forgive the Company from paying
all or any portion of the principal of,
38
premium of, 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 (to the extent that it may lawfully do so)
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.
SECTION 4.10. [RESERVED].
SECTION 4.11. LIMITATION ON THE INCURRENCE OF INDEBTEDNESS AND
ISSUANCE OF DISQUALIFIED STOCK.
The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, issue,
assume, guarantee or otherwise become directly or indirectly liable with respect
to (collectively, "incur" and, correlatively, "incurred" and "incurrence") any
Indebtedness (including, without limitation, Acquired Debt), and the Company
shall not issue any Disqualified Stock and shall not permit any of its
Restricted Subsidiaries to issue any preferred stock; provided, however, that
the Company and its Restricted Subsidiaries may incur Indebtedness (including
Acquired Debt) if after giving effect to the incurrence of such Indebtedness and
the application of the proceeds thereof, the Consolidated Coverage Ratio of the
Company and its Restricted Subsidiaries (on a consolidated basis) would not
exceed 2.00 to 1.00.
The foregoing limitations shall not apply to:
(i) Indebtedness incurred by the Company under
the Credit Agreement in an aggregate principal amount equal to the
greater of $95 million and the Borrowing Base Amount;
(ii) Indebtedness represented by the Senior
Secured Notes;
(iii) additional Indebtedness incurred by the
Company in respect of Capital Lease Obligations or Purchase Money
Obligations in an aggregate principal amount not to exceed $10,000,000
at any time outstanding;
(iv) Indebtedness represented by the Notes and
this Indenture;
(v) Hedging Obligations incurred by the Company
pursuant to agreements or other arrangements designed to protect the
Company against fluctuations in interest rates and/or currency exchange
rate resulting from its borrowings under the Credit Agreement;
(vi) additional unsecured Indebtedness which is
subordinate in right of payment to the Notes, not to exceed $5,000,000
at any time outstanding;
39
(vii) Indebtedness of the Company to any of its
Wholly Owned Subsidiaries that is a Restricted Subsidiary, and
Indebtedness of any Wholly Owned Subsidiary of the Company that is a
Restricted Subsidiary to the Company or any of its Wholly Owned
Subsidiaries that is a Restricted Subsidiary (the Indebtedness incurred
pursuant to this clause (vii) being hereinafter referred to as
"Intercompany Indebtedness"); provided that in the case of Indebtedness
of the Company such obligations shall be unsecured and subordinated in
all respects to the Company's obligations pursuant to the Notes;
provided, further, that an incurrence of Indebtedness shall be deemed
to have occurred upon (a) any sale or other disposition of Intercompany
Indebtedness to a Person other than the Company or any of its
Restricted Subsidiaries, (b) any sale or other disposition of Equity
Interests of any Restricted Subsidiary of the Company which holds
Intercompany Indebtedness such that such Restricted Subsidiary ceases
to be a Restricted Subsidiary after such sale or other disposition or
(c) designation of a Restricted Subsidiary as an Unrestricted
Subsidiary;
(viii) the incurrence by the Company of
Indebtedness issued in exchange for, or the proceeds of which are used
to extend, refinance, renew, replace, defease or refund Indebtedness
incurred pursuant to the Leverage Ratio test set forth in the first
paragraph of this covenant or pursuant to clauses (i), (ii) or (iv) of
this covenant in whole or in part (the "Refinancing Indebtedness");
provided, however, that (A) the aggregate principal amount of such
Refinancing Indebtedness shall not exceed the aggregate principal
amount of Indebtedness so extended, refinanced, renewed, replaced,
defeased or refunded; (B) the Refinancing Indebtedness shall have a
Weighted Average Life to Maturity equal to or greater than the Weighted
Average Life to Maturity of the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded; (C) if the
Indebtedness being extended, refinanced, renewed, replaced, defeased or
refunded is pari passu with or subordinated in right of payment to the
Notes, the Refinancing Indebtedness shall be pari passu with or
subordinated, as the case may be, in right of payment to the Notes on
terms at least as favorable to the Holders of Notes as those contained
in the documentation governing the Indebtedness being extended,
refinanced, renewed, replaced, defeased or refunded (any such
extension, refinancing, renewal, replacement, defeasance or refunding
being referred to as a "Permitted Refinancing");
(ix) Indebtedness of the Company or any
Restricted Subsidiary consisting of guarantees, indemnities, or
obligations in respect of purchase price adjustments, in connection
with the acquisition or disposition of any business, assets or
Subsidiary of the Company permitted under this Indenture; and
(x) Indebtedness of the Company or a Restricted
Subsidiary owed to any Person in connection with liability insurance
provided by such Person to the Company or such Restricted Subsidiary,
pursuant to reimbursement or indemnification obligations to such
Person, in each case incurred in the ordinary course of business.
40
SECTION 4.12. LIMITATION ON RESTRICTED PAYMENTS.
(a) The Company shall not, and shall not permit any of
its Restricted Subsidiaries to, directly or indirectly:
(i) declare or pay any dividend or make any
distribution on account of Equity Interests, other than
(A) dividends or distributions payable
in Equity Interests (other than Disqualified Stock)
of the Company; or
(B) dividends or distributions payable
to the Company or a Wholly Owned Subsidiary of the
Company that is a Restricted Subsidiary;
(ii) purchase, redeem or otherwise acquire or
retire for value any Equity Interests of the Company (other than any
such Equity Interests owned by the Company or a Wholly Owned Subsidiary
of the Company that is a Restricted Subsidiary);
(iii) purchase, redeem, repay, defease or
otherwise acquire or retire for value any Indebtedness that is
subordinated in right of payment to the Notes except for payment of
interest or principal at maturity thereof;
(iv) make any Investment (other than a Permitted
Investment);
(all such payments and other actions set forth in clauses (i) through
(iv) above being collectively referred to as "Restricted Payments");
unless, at the time of and after giving effect to such Restricted
Payment:
(A) no Default or Event of Default
shall have occurred and be continuing or would occur as a consequence
thereof;
(B) the Company would, at the time of
such Restricted Payment and after giving pro forma effect thereto as if
such Restricted Payment had been made at the beginning of the
applicable four-quarter period, have been permitted to incur at least
$1.00 of additional Indebtedness pursuant to the Consolidated Coverage
Ratio test set forth in Section 4.11; and
(C) such Restricted Payment (the amount
of any such payment, if other than cash, to be determined in good faith
by the Board of Directors, whose determination shall be conclusive and
evidenced by a resolution in an Officers' Certificate delivered to the
Trustee), together with the aggregate of all other Restricted Payments
made by the Company and its Restricted Subsidiaries after the date of
this Indenture (including Restricted Payments permitted by the next
succeeding paragraph, except as set forth therein), shall not
41
exceed the sum of (w) 50% of the Consolidated Net Income of the Company
for the period (taken as one accounting period) commencing on the first
day of the Company's first fiscal quarter beginning after the initial
issuance of the Notes and ending on the last day of the Company's most
recently ended fiscal quarter for which internal financial statements
are available at the time of such Restricted Payment (or, if such
Consolidated Net Income for such period is a deficit, 100% of such
deficit as a negative number), plus (x) 100% of the aggregate net cash
proceeds received by the Company from the issuance or sale since the
date of initial issuance of the Notes of Equity Interests of the
Company or of debt securities of the Company that have been converted
into such Equity Interests (other than Equity Interests (or convertible
debt securities) sold to a Subsidiary of the Company and other than
Disqualified Stock or debt securities that have been converted into
Disqualified Stock), plus (y) the aggregate cash received by the
Company as capital contributions to the Company after the date of
initial issuance of the Notes (other than from a Subsidiary), plus (z)
any cash received by the Company after the date of initial issuance of
the Notes as a dividend or distribution from any of its Unrestricted
Subsidiaries or from the sale of any of its Unrestricted Subsidiaries
less the cost of disposition and taxes, if any (but in each case
excluding any such amounts included in Consolidated Net Income).
(b) The foregoing provisions shall not prohibit:
(i) the payment of any dividend within 60 days
after the date of declaration thereof, if at said date of declaration
such payment would have complied with the provisions of this Indenture;
(ii) the redemption, repurchase, retirement or
other acquisition of any Equity Interests of the Company, or the
defeasance, redemption or repurchase of subordinated Indebtedness in
exchange for, or out of the proceeds of, the substantially concurrent
sale (other than to a Subsidiary of the Company) of Equity Interests of
the Company (other than any Disqualified Stock) or out of the net
proceeds of a substantially concurrent cash capital contribution
received by the Company; provided that the amount of any such proceeds
that are utilized for any such redemption, repurchase, retirement,
defeasance or other acquisition shall be excluded from Section
4.2(a)(C)(x);
(iii) the repayment, defeasance, redemption or
repurchase of subordinated Indebtedness with the net proceeds from an
incurrence of Refinancing Indebtedness in a Permitted Refinancing;
(iv) any Investment made with the proceeds of a
substantially concurrent sale (other than to a Restricted Subsidiary of
the Company) of Capital Stock of the Company (other than Disqualified
Stock); provided, however, the proceeds of such sale shall not be (and
have not been) included in Section 4.12(a)(C) hereof;
42
(v) other restricted payments of up to
$5,000,000 in the aggregate;
(vi) the payment of a dividend or distribution by
the Company and its Subsidiaries, directly or indirectly, to ACP
Holding in an amount sufficient to permit ACP Holding to pay its
consolidated, combined or unitary United States federal, state and
local tax liabilities relating to the business of the Company and its
Subsidiaries, provided that ACP Holding applies the amount of such
dividend or distribution for such purpose at such time; or
(vii) payments by the Company to NFC Castings or
ACP Holding not to exceed an amount necessary to permit NFC Castings or
ACP Holding to (A) make payments in respect to its indemnification
obligations owing to directors, officers, or other Persons under NFC
Castings' or ACP Holding's charter or by-laws or pursuant to written
agreements with any such Person, (B) make payments in respect of its
other operational expenses (other than taxes) incurred in the ordinary
course of business, or (c) make payments in respect of indemnification
obligations and costs and expenses incurred by ACP Holding in
connection with any offering of common stock of ACP Holding.
provided, further, however, that at the time of, and after giving effect to, any
Restricted Payment permitted under clauses (i), (ii) - (iii) and (vii) no
Default or Event of Default shall have occurred and be continuing; provided,
further, that the Restricted Payments described in clauses (v) and (vi), shall
not be counted in computing the aggregate amount of all Restricted Payments made
pursuant to this Indenture.
For purposes of the foregoing calculations, the amount of any
Investment that constitutes a Restricted Payment shall be equal to the greater
of (i) the net book value of such Investment and (ii) the fair market value of
such Investment (in each case as certified by a resolution of the independent
directors of the Company if the book value or fair market value of such
investment exceeds $1,000,000).
Not later than the date of making any Restricted Payment, the
Company shall deliver to the Trustee an Officers' Certificate stating that such
Restricted Payment is permitted and setting forth the basis upon which the
calculations required by this Section 4.12 were computed, which calculations may
be based upon the Company's latest available financial statements.
SECTION 4.13. LIMITATION ON LIENS.
The Company shall not, and shall not cause or permit any of
its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Liens on any asset now owned or acquired after the date of
this Indenture or any income or profits therefrom or assign or convey any right
to receive income therefrom, except Permitted Liens; provided, that, in the case
of Permitted Liens securing Indebtedness that is expressly subordinate or junior
in right of payment to the Notes or a Subsidiary
43
Guarantee, the Notes or such Subsidiary Guarantee is secured by a Lien on such
property, assets or proceeds that is senior in priority to such Liens.
SECTION 4.14. LIMITATION ON DIVIDENDS AND OTHER PAYMENT
RESTRICTIONS AFFECTING SUBSIDIARIES.
The Company shall not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any consensual encumbrance or restriction on
the ability of any Restricted Subsidiary to:
(i) pay dividends or make any other
distributions to the Company or any of its Restricted Subsidiaries (a)
on its Capital Stock or (b) with respect to any other interest or
participation in, or measured by, its profits;
(ii) pay any Indebtedness owed to the Company or
any of its Restricted Subsidiaries;
(iii) make loans or advances to the Company or any
of its Restricted Subsidiaries; or
(iv) transfer any of its properties or assets to
the Company or any of its Restricted Subsidiaries;
except for such encumbrances or restrictions existing under or by reason of (a)
the Senior Indebtedness and any amendments, modifications, restatements,
renewals, increases, supplements, refundings, replacements or refinancings of
those agreements; provided that they are no more restrictive in any material
respect than the restrictions contained in those agreements on the date of this
Indenture, (b) this Indenture and the Notes, (c) applicable law, (d) any
instrument governing Indebtedness or Capital Stock of a Person acquired by the
Company or any of its Restricted Subsidiaries as in effect at the time of such
acquisition (except to the extent such Indebtedness was incurred in connection
with or in contemplation of such acquisition), which encumbrance or restriction
is not applicable to any Person, or the properties or assets of any Person,
other than the Person, or the property or assets of the Person, so acquired, (e)
customary nonassignment provisions in leases entered into in the ordinary course
of business and consistent with past practices, (f) Purchase Money Obligations
for property acquired in the ordinary course of business that impose
restrictions of the nature described in clause (iv) above on the property so
acquired; or (g) Refinancing Indebtedness, provided that the restrictions
contained in the agreements governing such Refinancing Indebtedness are no more
restrictive with respect to the provisions set forth in clauses (i), (ii), (iii)
and (iv) above than those contained in the agreements governing the Indebtedness
being refinanced, (h) any agreement for the sale or other disposition of a
Restricted Subsidiary that restricts distributions by that Restricted Subsidiary
pending its sale or other disposition or (i) restrictions on cash or other
deposits or net worth imposed by customers or suppliers under contracts entered
into in the ordinary course of business.
44
SECTION 4.15. LIMITATION ON TRANSACTIONS WITH AFFILIATES.
The Company shall not, and shall not permit, cause, or suffer
any Restricted Subsidiary of the Company to, directly or indirectly, sell,
lease, license, transfer or otherwise dispose of any of its properties or assets
to, or purchase any property or assets from, or enter into any contract,
agreement, understanding, loan, advance or guarantee with, or for the benefit
of, any Affiliate (each of the foregoing, an "Affiliate Transaction"), unless:
(i) such Affiliate Transaction is on terms that
are no less favorable to the Company or the relevant Restricted
Subsidiary than those that would have been obtained in a comparable
arms' length transaction by the Company or such Restricted Subsidiary
with an unrelated Person; and
(ii) the Company delivers to the Trustee (a) with
respect to any Affiliate Transaction involving aggregate payments in
excess of $500,000, a resolution of the Board of Directors set forth in
an Officers' Certificate certifying that such Affiliate Transaction
complies with clause (i) above and such Affiliate Transaction is
approved by a majority of the disinterested members, if any, of the
Board of Directors and (b) with respect to any Affiliate Transaction
involving aggregate payments in excess of $20,000,000, an opinion as to
the fairness to the Company or such Restricted Subsidiary from a
financial point of view issued by a nationally recognized independent
financial advisor;
provided, however, that (i) any reasonable fees, advances and compensation
provided to, and indemnity provided on behalf of, officers, directors and
employees of NFC Castings, ACP Holding, the Company and its Restricted
Subsidiaries as determined in good faith by the Board of Directors of the
Company, (ii) transactions between or among the Company and its Wholly Owned
Subsidiaries that are Restricted Subsidiaries, (iii) Restricted Payments
permitted by Section 4.12 (iv) payment of principal of, and interest on, the
Notes or the Senior Subordinated Notes held by Affiliates, (v) payment of the
Commitment Fee, in each case, shall not be deemed to be Affiliate Transactions,
(vi) any issuance of securities, or other payments, awards or grants in cash,
securities or otherwise pursuant to, or the funding of, employment arrangements,
stock options and stock ownership plans approved by the Board of Directors; and
(vii) transactions pursuant to agreements entered into or in effect on the date
of this Indenture, including amendments thereto entered into after the date of
this Indenture, provided that (A) the terms of any such amendment are not, in
the aggregate, less favorable to the Company or such Restricted Subsidiary than
the terms of such agreement prior to such amendment and (B) the transactions
contemplated by such amendment are permitted by this Indenture.
SECTION 4.16. LIMITATION ON LINES OF BUSINESS.
The Company shall not, and shall not permit any Restricted
Subsidiary to, engage in any business other than a Related Business.
45
SECTION 4.17. LIMITATION ON LAYERING DEBT.
Neither the Company nor any Subsidiary Guarantor shall incur,
create, issue, assume, guarantee or otherwise become liable for any Indebtedness
that is subordinate or junior in right of payment to any Senior Indebtedness of
the Company and senior in any respect in right of payment to the Notes or the
Subsidiary Guarantees, as applicable.
SECTION 4.18. FUTURE GUARANTORS.
The Company shall cause each Person that (a) becomes a
Domestic Restricted Subsidiary following the date of this Indenture and (b)
guarantees any Indebtedness of the Company or any Subsidiary thereof to execute
and deliver to the Trustee a Subsidiary Guarantee at the time such Person
becomes obligated under any such Guarantee.
SECTION 4.19. PAYMENTS FOR CONSENT.
Neither the Company, nor any of the Company's Subsidiaries,
shall, directly or indirectly, pay or cause to be paid any consideration,
whether by way of interest, fee or otherwise, to any holder of any Notes for or
as an inducement to any consent, waiver or amendment of any of the terms or
provisions hereof or the Notes unless such consideration is offered to be paid
or agreed to be paid to all holders of the Notes which so consent, waive or
agree to amend in the time frame set forth in the solicitation documents
relating to such consent, waiver or agreement.
SECTION 4.20. ASSET SALES.
Neither the Company nor any of its Restricted Subsidiaries
shall engage in any Asset Sale, unless:
(i) the Company or such Restricted Subsidiary,
as the case may be, receives consideration at the time of such Asset
Sale at least equal to the Fair Market Value (evidenced by a resolution
of the Board of Directors set forth in an Officers' Certificate
delivered to the Trustee) of the assets sold or otherwise disposed of;
and
(ii) at least 20% of the consideration therefor
received by the Company or such Restricted Subsidiary is in the form of
Cash or Cash Equivalents; provided, however, that if the Fair Market
Value of the assets sold or otherwise disposed of exceeds $10,000,000,
at least 75% of the consideration therefor received by the Company or
such Restricted Subsidiaries is in the form of Cash or Cash
Equivalents;
provided, further, however, that the amount of (a) any liabilities (as shown on
the Company's or such Restricted Subsidiary's most recent balance sheet or in
the notes
46
thereto) of the Company or such Restricted Subsidiary (other than liabilities
that are by their terms subordinated in right of payment to the Notes) that are
assumed by the transferee of any such assets and (b) any notes or other
obligations received by the Company or such Restricted Subsidiary from such
transferee that are converted within 60 days by the Company or such Restricted
Subsidiary into cash (to the extent of the cash so received), shall be deemed to
be cash for purposes of this provision.
Within 180 days after the receipt of the Net Proceeds from an
Asset Sale, the Company shall apply the Net Proceeds from such Asset Sale, to
repay the Term Loan, and to the extent such Indebtedness is paid in full, to
permanently repay or reduce all other Senior Indebtedness, including in the case
of the Revolver, permanently reduce the commitment thereunder. Pending the final
application of any such Net Proceeds, the Company may invest such Net Proceeds
in any manner that is not prohibited by this Indenture. Any Net Proceeds from
the Asset Sale that are not applied as provided in the first sentence of this
paragraph will be deemed to constitute "Excess Proceeds."
When the aggregate cumulative amount of Excess Proceeds
exceeds $5,000,000, the Company shall make an offer to all Holders of Notes to
purchase the maximum principal amount of Notes that may be purchased with the
Excess Proceeds, at an offer price in cash in an amount equal to 100% of the
principal amount thereof plus accrued and unpaid interest thereon to the date of
purchase, in accordance with the procedures set forth in this Section 4.20 (an
"Asset Sale Offer"). To the extent that the aggregate principal amount of Notes
tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds, the
Company may use such deficiency for general corporate purposes in any manner not
prohibited by this Indenture.
If the aggregate principal amount of Notes surrendered by
Holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select
the Notes to be purchased on a pro rata basis. Upon completion of such offer to
purchase, the amount of Excess Proceeds shall be reset at zero.
In the event that the Company shall be required to commence an
Asset Sale Offer to all Holders to purchase Notes pursuant to this Section 4.20,
it shall follow the procedures specified below.
The Asset Sale Offer shall be commenced within 30 days
following the first date on which the Company has cumulative Excess Proceeds of
at least $5,000,000 and remain open for a period of at least 30 and not more
than 40 days, except to the extent that a longer period is required by
applicable law (the "Repurchase Offer Period"). No later than five Business Days
after the termination of the Offer Period (the "Repurchase Date"), the Company
shall purchase the principal amount of Notes required to be purchased pursuant
to this Section 4.20 hereof (the "Repurchase Price") or, if Notes having an
aggregate principal amount less than the amount of Excess Proceeds subject to
such Asset Sale Offer have been tendered, all Notes tendered in response to the
Asset Sale Offer. Payment for any Notes so purchased shall be made in the same
manner as interest payments are made.
47
If the Repurchase Date is on or after an interest record date
and on or before the related interest payment date, any accrued and unpaid
interest shall be paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional interest shall be
payable to Holders who tender Notes pursuant to the Asset Sale Offer.
Upon the commencement of an Asset Sale Offer, the Company
shall send, by first class mail, a notice to the Trustee or to each of the
Holders, with a copy to the Trustee. The notice shall contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The Asset Sale Offer shall be made to all Holders. The notice,
which shall govern the terms of the Asset Sale Offer, shall state:
(a) that the Asset Sale Offer is being made pursuant to
this Section 4.20 and the length of time the Asset Sale Offer shall remain open;
(b) the Asset Sale Offer, the Repurchase Price and the
Repurchase Date;
(c) that any Note not tendered or accepted for payment
shall continue to accrue interest;
(d) that, unless the Company defaults in making such
payment, any Note accepted for payment pursuant to the Asset Sale Offer shall
cease to accrue interest after the Repurchase Date;
(e) that Holders electing to have a Note purchased
pursuant to a Asset Sale Offer may only elect to have all of such Note purchased
and may not elect to have only a portion of such Note purchased;
(f) that Holders electing to have a Note purchased
pursuant to any Asset Sale Offer shall be required to surrender the Note, with
the form entitled "Option of Holder to Elect Purchase" on the reverse of the
Note completed, or transfer by book-entry transfer, to the Company, a
depositary, if appointed by the Company, or a Paying Agent at the address
specified in the notice at least three days before the Asset Sale Purchase Date;
(g) that Holders shall be entitled to withdraw their
election if the Company, the Depositary or the Paying Agent, as the case may be,
receives, not later than the expiration of the Repurchase Offer Period, a
telegram, telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note
purchased;
(h) that, if the aggregate principal amount of Notes
surrendered by Holders exceeds the Repurchase Price, the Trustee shall select
the Notes to be purchased
48
on a pro rata basis (with such adjustments as may be deemed appropriate by the
Trustee so that only Notes in denominations of $1,000, or integral multiples
thereof, shall be purchased); and
(i) that Holders whose Notes were purchased only in part
shall be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered (or transferred by book-entry transfer).
The Company, the Depositary or the Paying Agent, as the case
may be, shall promptly (but in any case not later than five days after the
Repurchase Date) mail or deliver to each tendering Holder an amount equal to the
purchase price of the Notes tendered by such Holder and accepted by the Company
for purchase, and the Company shall promptly issue a new Note, and the Trustee,
upon written order from the Company shall authenticate and mail or deliver such
new Note to such Holder, in a principal amount equal to any unpurchased portion
of the Note surrendered. Any Note not so accepted shall be promptly mailed or
delivered by the Company to the Holder thereof. The Company shall publicly
announce the results of the Asset Sale Offer on the Repurchase Date.
The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws, rules and regulations
thereunder to the extent such laws, rules and regulations are applicable in
connection with the repurchase of Notes pursuant to Asset Sale Offer.
SECTION 4.21. CHANGE OF CONTROL.
(a) In the event that a Change of Control occurs, each
Holder shall have the right, at such Holder's option, subject to the terms and
conditions of this Indenture, to require the Company to repurchase all or any
part of such Holder's Notes (provided, that the principal amount of such Notes
must be $1,000 or an integral multiple thereof) on a date to be established by
the Company (the "Change of Control Payment Date") after the occurrence of such
Change of Control, at a cash price (the "Change of Control Repurchase Price")
equal to 101% of the aggregate principal amount thereof, together with accrued
and unpaid interest thereon to, but excluding, the Change of Control Payment
Date.
(b) In the event that, pursuant to this Section 4.21, the
Company shall be required to commence an offer to purchase Notes (the "Change of
Control Offer"), the Company shall follow the procedures set forth in this
Section 4.21 as follows:
(1) the Company shall prepare and mail, with a
copy to the Trustee, or at the option of the Company and at
the expense of the Company, mail by the Trustee, the Change of
Control Offer to each Holder of Notes, within 30 days
following the completion of the Senior Secured Notes Offer to
Purchase, or if no Senior Secured Notes are outstanding at
such time, within 30 days following a Change of Control;
49
(2) the Change of Control Offer shall remain
open for at least 30 and not more than 40 days (unless
otherwise required by applicable law) following its
commencement, except to the extent that a longer period is
required by applicable law;
(3) upon the expiration of a Change of Control
Offer, the Company shall purchase all Notes tendered in
response to the Change of Control Offer;
(4) if the Change of Control Payment Date is on
or after an interest payment record date and on or before the
related Interest Payment Date, any accrued interest will be
paid to the Person in whose name a Note is registered at the
close of business on such record date, and no additional
interest will be payable to Noteholders who tender Notes
pursuant to the Change of Control Offer;
(5) the Company shall provide the Trustee with
notice of the Change of Control Offer at least five Business
Days before the commencement of any Change of Control Offer;
and
(6) on or before the commencement of any Change
of Control Offer, the Company or the Trustee (upon the request
and at the expense of the Company) shall send, by first-class
mail, a notice to each of the Noteholders, which (to the
extent consistent with this Indenture) shall govern the terms
of the Change of Control Offer and shall state:
(i) that the Change of Control Offer is being made
pursuant to such notice and this Section 4.21 and
that all Notes, or portions thereof, tendered will be
accepted for payment;
(ii) the Change of Control Repurchase Price (including the
amount of accrued and unpaid interest) the Change of
Control Payment Date and the Change of Control Put
Date;
(iii) that any Note, or portion thereof, not tendered or
accepted for payment will continue to accrue
interest;
(iv) that, unless the Company defaults in depositing Cash
with the Paying Agent in accordance with the last
paragraph of this clause (b) or such payment is
prevented pursuant to Article XI, any Note, or
portion thereof, accepted for payment pursuant to the
Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date;
(v) that Holders electing to have a Note, or portion
thereof, purchased pursuant to a Change of Control
Offer will be required to surrender
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the Note, with the form entitled "Option of Holder to
Elect Purchase" on the reverse of the Note completed,
to the Paying Agent (which may not for purposes of
this Section 4.21, notwithstanding anything in this
Indenture to the contrary, be the Company or any
Affiliate of the Company) at the address specified in
the notice prior to the close of business on the
earlier of (a) the third Business Day prior to the
Change of Control Payment Date and (b) the third
Business Day following the expiration of the Change
of Control Offer (such earlier date being the "Change
of Control Put Date");
(vi) that Holders will be entitled to withdraw their
election, in whole or in part, if the Paying Agent
(which may not for purposes of this Section 4.21,
notwithstanding anything in this Indenture to the
contrary, be the Company or any Affiliate of the
Company) receives, up to the close of business on the
Change of Control Put Date, a telegram, telex,
facsimile transmission or letter setting forth the
name of the Holder, the principal amount of the Notes
the Holder is withdrawing and a statement that such
Holder is withdrawing his election to have such
principal amount of Notes purchased; and
(vii) a brief description of the events resulting in such
Change of Control.
On or before the Change of Control Date, the Company shall (i)
accept for payment Notes or portions thereof properly tendered pursuant to the
Change of Control Offer on or before the Change of Control Payment Date, (ii)
deposit with the Paying Agent Cash sufficient to pay the Change of Control
Repurchase Price of all Notes or portions thereof so tendered and (iii) deliver
to the Trustee Notes so accepted together with an Officers' Certificate listing
the Notes or portions thereof being purchased by the Company. The Paying Agent
shall promptly mail to Holders of Notes so accepted payment in an amount equal
to the Change of Control Repurchase Price (together with accrued and unpaid
interest), and the Trustee shall promptly authenticate and mail or deliver to
such Holders a new Note or Notes equal in principal amount to any unpurchased
portion of the Notes surrendered. Any Notes not so accepted shall be promptly
mailed or delivered by the Company to the Holder thereof. The Company will
publicly announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.
The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws, rules and regulations
thereunder to the extent such laws, rules and regulations are applicable in
connection with the repurchase of Notes pursuant to Change of Control Offer.
51
SECTION 4.22. CALCULATION OF ORIGINAL ISSUE DISCOUNT.
The Company shall file with the Trustee promptly at the end of
each calendar year (i) a written notice specifying the amount of original issue
discount (including daily rates and accrual periods) accrued on Outstanding
Notes as of the end of such year and (ii) such other specific information
relating to such original issue discount as may then be relevant under the Code
from time to time.
ARTICLE V
SUCCESSORS
SECTION 5.1. LIMITATION ON MERGER, CONSOLIDATION OR SALE OF
ASSETS.
The Company shall not consolidate or merge with or into
(whether or not the Company is the surviving corporation), or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its
properties or assets in one or more related transactions, to another Person or
entity unless:
(i) the Company is the surviving corporation or
the Person formed by or surviving any such consolidation or merger (if
other than the Company) or to which such sale, assignment, transfer,
lease, conveyance or other disposition shall have been made is a
corporation organized or existing under the laws of the United States,
any state thereof or the District of Columbia;
(ii) the Person formed by or surviving any such
consolidation or merger (if other than the Company) or the Person to
which such sale, assignment, transfer, lease, conveyance or other
disposition shall have been made assumes all the obligations of the
Company under the Notes and this Indenture pursuant to a supplemental
indenture in a form reasonably satisfactory to the Trustee;
(iii) immediately before or immediately after
giving effect to such transaction no Default or Event of Default shall
have occurred and be continuing; and
(iv) the Company or any Person formed by or
surviving any such consolidation or merger, or to which such sale,
assignment, transfer, lease, conveyance or other disposition shall have
been made will, at the time of such transaction and after giving pro
forma effect thereto as if such transaction had occurred at the
beginning of the applicable four-quarter period, be permitted to incur
at least $1.00 of additional Indebtedness pursuant to the Consolidated
Coverage Ratio test set forth in Section 4.11.
The preceding clause (iv) shall not prohibit (A) a merger between the Company
or a Subsidiary Guarantor and a Restricted Subsidiary or (B) a merger between
the Company
52
and an Affiliate with no substantial assets or liabilities for the sole purpose
of incorporating or reincorporating or organizing or reorganizing the Company in
another state of the United States, or the District of Columbia.
SECTION 5.2. SUCCESSOR CORPORATION SUBSTITUTED.
Upon any consolidation or merger, or any sale, assignment,
transfer, lease, conveyance or other disposition of all or substantially all of
the assets of the Company in accordance with Section 5.1 hereof, the successor
corporation formed by such consolidation or into or with which the Company is
merged or to which such sale, assignment, transfer, lease, conveyance or other
disposition is made shall succeed to, and be substituted for (so that from and
after the date of such consolidation, merger, sale, lease, conveyance or other
disposition, the provisions of this Indenture referring to the "Company" shall
refer instead to the successor corporation and not to the Company), and may
exercise every right and power of the Company under this Indenture with the same
effect as if such successor Person had been named as the Company herein;
provided, however, that the predecessor Company shall not be relieved from the
obligation to pay the principal of and interest on the Notes except in the case
of a sale of all of the Company's assets that meets the requirements of Section
5.1 hereof.
ARTICLE VI
EVENTS OF DEFAULT AND REMEDIES
SECTION 6.1. EVENTS OF DEFAULT.
"Event of Default," wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be caused voluntarily or involuntarily or effected, without limitation, by
operation of law or pursuant to any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):
(a) failure to pay any installment of interest on any of
the Notes as and when the same becomes due and payable, and the continuance of
such failure for a period of 30 days, whether or not such payment is prohibited
by Article XI;
(b) failure to pay all or any part of the principal of,
or premium, if any, on the Notes when and as the same become due and payable at
maturity, redemption, repurchase or otherwise, whether or not such payment is
prohibited by Article XI;
(c) failure by the Company to comply with the provisions
of Section 4.20, Section 4.21 or Article V;
(d) failure by the Company or any Restricted Subsidiary
to observe or perform any covenant or agreement contained in the Notes or this
Indenture (other than a default in the performance of any covenant or agreement
which is specifically dealt with
53
elsewhere in this Section 6.1), and continuance of such failure for a period of
30 days after there has been given, by registered or certified mail, to the
Company by the Trustee, or to the Company and the Trustee by Holders of at least
25% in aggregate principal amount of the then outstanding Notes, a written
notice specifying such failure, requesting it to be remedied and stating that
such notice is a "Notice of Default" hereunder;
(e) default under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced
any Indebtedness of the Company or any of its Restricted Subsidiaries (or the
payment of which is guaranteed by the Company or any of its Restricted
Subsidiaries) whether such Indebtedness or guarantee now exists, or is created
after the date of this Indenture, which default (a) is caused by a failure to
pay principal of such Indebtedness when due and prior to the expiration of the
grace period provided in such Indebtedness (a "Payment Default") or (b) results
in the acceleration of such Indebtedness prior to its express maturity and, in
each case described in clauses (a) and (b) of this subsection (e), the principal
amount of any such Indebtedness, together with the principal amount of any other
such Indebtedness under which there has been a Payment Default or the maturity
of which has been so accelerated, aggregates $5,000,000 or more;
(f) failure of the Company or any of its Restricted
Subsidiaries to pay final judgments aggregating in excess of $5,000,000, which
judgments have not been paid, stayed, bonded or discharged for a period (during
which execution shall not be effectively stayed) of 60 days (or, in the case of
any such final judgment which provides for payment over time, which shall so
remain unstayed, unbonded or undischarged beyond any applicable payment date
provided therein);
(g) a decree, judgment, or order by a court of competent
jurisdiction shall have been entered adjudging the Company or any of its
Restricted Subsidiaries as bankrupt or insolvent, or approving as properly filed
a petition seeking reorganization of the Company or any of its Restricted
Subsidiaries under any bankruptcy or similar law, and such decree, judgment, or
order shall have continued undischarged and unstayed for a period of 60 days; or
a decree or order of a court of competent jurisdiction over the appointment of a
receiver, liquidator, trustee, or assignee in bankruptcy or insolvency of the
Company, any of its Restricted Subsidiaries, or of the property of any such
Person, or for the winding up or liquidation of the affairs of any such Person,
shall have been entered, and such decree, judgment, or order shall have remained
in force undischarged and unstayed for a period of 60 days; or
(h) the Company or any of its Restricted Subsidiaries
shall institute proceedings to be adjudicated a voluntary bankrupt, or shall
consent to the filing of a bankruptcy proceeding against it, or shall file a
petition or answer or consent seeking reorganization under any bankruptcy or
similar law or similar statute, or shall consent to the filing of any such
petition, or shall consent to the appointment of a Custodian, receiver,
liquidator, trustee, or assignee in bankruptcy or insolvency of it or any of its
assets or property, or shall make a general assignment for the benefit of
creditors; or take
54
any corporate action in furtherance of or to facilitate, conditionally or
otherwise, any of the foregoing; or
(i) any Subsidiary Guaranty relating to the Notes ceases
to be in full force and effect (other than in accordance with the terms of such
Subsidiary Guaranty), or any Subsidiary Guarantor denies or disaffirms its
obligations under its Subsidiary Guaranty relating to the Notes.
Notwithstanding the 30-day period and notice requirement
contained in Section 6.1(d) above, with respect to a default under Section 4.21,
the 30-day period referred to in Section 6.1(d) shall be deemed to have begun as
of the date the Change of Control notice is required to be sent in the event
that the Company has not complied with the provisions of Section 4.21 and the
Trustee or Holders of at least 25% in principal amount of the outstanding Notes
thereafter give the Notice of Default referred to in Section 6.1(d) to the
Company and, if applicable, the Trustee; provided, however, that if the breach
or default is a result of a default in the payment when due of the Repurchase
Price on the Repurchase Date, such Event of Default shall be deemed, for
purposes of this Section 6.1, to arise no later than on the last Repurchase
Date.
SECTION 6.2. ACCELERATION OF MATURITY DATE; RESCISSION AND
ANNULMENT.
(a) If an Event of Default (other than an Event of
Default specified in Section 6.1(g) or 6.1(h) relating to the Company) occurs
and is continuing, then, and in every such case, unless the principal of all of
the Notes shall have already become due and payable, either the Trustee or the
Holders of not less than 25% in aggregate principal amount of then outstanding
Notes, by a notice in writing to the Company (and to the Trustee if given by
such Holders) (an "Acceleration Notice"), may declare all of the principal of
the Notes (or the Repurchase Price if the Event of Default includes failure to
pay the Repurchase Price, determined as set forth below), including in each case
accrued and unpaid interest thereon and all other Obligations thereunder, to be
due and payable immediately. If an Event of Default specified in Section 6.1(g)
or 6.1(h) relating to the Company occurs, all principal, accrued and unpaid
interest thereon and all other Obligations thereunder will become immediately
due and payable on all outstanding Notes without any other act, declaration or
notice on the part of Trustee or the Holders.
At any time after such a declaration of acceleration has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter provided in this Article VI, the Holders
of no less than a majority in aggregate principal amount of then outstanding
Notes, by written notice to the Trustee, may rescind and annul, on behalf of all
Holders, any such declaration of acceleration if:
(1) Company has paid or deposited with the Trustee Cash sufficient
to pay
(A) all overdue interest on all Notes,
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(B) the principal of any Notes which would then be due
otherwise than by such declaration of acceleration,
and interest thereon at the rate borne by the Notes,
(C) to the extent that payment of such interest is
lawful, interest upon overdue interest at the rate
borne by the Notes, and
(D) all sums paid or advanced by the Trustee hereunder
and the compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel;
(2) all Events of Default, other than the non-payment of the
principal of, and premium and interest on Notes that have
become due solely by such declaration of acceleration, have
been cured or waived as provided in Section 6.12, including,
if applicable, any Event of Default relating to the covenants
contained in Section 4.21.
Notwithstanding the previous sentence of this Section 6.2, no waiver shall be
effective against any Holder for any Event of Default or event which with notice
or lapse of time or both would be an Event of Default with respect to any
covenant or provision which cannot be modified or amended without the consent of
the Holder of each outstanding Note affected thereby, unless all such affected
Holders agree, in writing, to waive such Event of Default or other event. No
such waiver shall cure or waive any subsequent Default or Event of Default or
impair any right consequent thereon.
(b) In the case of any Event of Default occurring by
reason of any willful action (or inaction) taken (or not taken) by or on behalf
of the Company with the intention of avoiding payment of the premium that the
Company would have had to pay if the Company then had elected to redeem the
Notes pursuant to the optional redemption provisions of this Indenture, an
equivalent premium shall also become and be immediately due and payable to the
extent permitted by law upon the acceleration of the Notes.
SECTION 6.3. COLLECTION OF INDEBTEDNESS AND SUITS FOR
ENFORCEMENT BY TRUSTEE.
The Company covenants that if an Event of Default in payment
of principal, premium or interest specified in clause (a) or (b) of Section 6.1
occurs and is continuing, the Company shall, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Notes, the whole amount then due and
payable on such Notes for principal, premium, interest and, to the extent that
payment of such interest shall be legally enforceable, interest on any overdue
principal (and premium, if any) and on any overdue interest, at the rate borne
by the Notes, and, in addition thereto, such further amount as shall be
sufficient to cover the reasonable costs and expenses of collection, including
compensation to, and reasonable expenses, disbursements and advances of the
Trustee, its agents and counsel.
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If the Company fails to pay such amounts forthwith upon such
demand, the Trustee, in its own name and as trustee of an express trust in favor
of the Holders, may institute a judicial proceeding for the collection of the
sums so due and unpaid, may prosecute such proceeding to judgment or final
decree and may enforce the same against the Company or any other obligor upon
the Notes and collect the moneys adjudged or decreed to be payable in the manner
provided by law out of the property of the Company or any other obligor upon the
Notes, wherever situated.
If an Event of Default occurs and is continuing, the Trustee
may in its discretion proceed to protect and enforce its rights and the rights
of the Holders by such appropriate judicial proceedings as the Trustee shall
deem most effective to protect and enforce any such rights, whether for the
specific enforcement of any covenant or agreement in this Indenture or in aid of
the exercise of any power granted herein, or to enforce any other proper remedy.
SECTION 6.4. TRUSTEE MAY FILE PROOFS OF CLAIM.
In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or
other judicial proceeding relative to the Company or any other obligor upon the
Notes or the property of the Company or of such other obligor or their
creditors, the Trustee (irrespective of whether the principal of the Notes shall
then be due and payable as therein expressed or by declaration or otherwise and
irrespective of whether the Trustee shall have made any demand on the Company
for the payment of overdue principal or interest shall be entitled and
empowered, by intervention in such proceeding or otherwise to take any and all
actions under the TIA, including
(1) to file and prove a claim for the whole amount of principal
(and premium, if any) and interest owing and unpaid in respect
of the Notes and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its
agents and counsel) and of the Holders allowed in such
judicial proceeding, and
(2) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same in
accordance with Section 6.6;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by
each Holder to make such payments to the Trustee and, in the event that the
Trustee shall consent to the making of such payments directly to the Holders, to
pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.7.
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Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
any plan of reorganization, arrangement, adjustment, or composition affecting
the Notes or the rights of any Holder thereof or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.
SECTION 6.5. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF
NOTES.
All rights of action and claims under this Indenture or the
Notes may be prosecuted and enforced by the Trustee without the possession of
any of the Notes or the production thereof in any proceeding relating thereto,
and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust in favor of the Holders, and any recovery of
judgment shall, after provision for the payment of compensation to, and
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Notes in respect of which such
judgment has been recovered.
SECTION 6.6. PRIORITIES.
Any money collected by the Trustee pursuant to this Article VI
shall be applied in the following order, at the date or dates fixed by the
Trustee and, in case of the distribution of such money on account of principal,
premium or interest upon presentation of the Notes and the notation thereon of
the payment if only partially paid and upon surrender thereof if fully paid:
FIRST: To the Trustee in payment of all amounts due pursuant
to Section 7.7;
SECOND: To the holders of Senior Indebtedness of the Company
to the extent provided in Article XI;
THIRD: To the Holders in payment of the amounts then due and
unpaid for principal of, and interest on, the Notes in respect or for the
benefit of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such Notes for
principal, premium and interest, respectively; and
FOURTH: The remainder, if any, shall be repaid to the Company.
SECTION 6.7. LIMITATION ON SUITS.
No Holder of any Note shall have any right to institute or
order or direct the Trustee to institute any proceeding, judicial or otherwise,
with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless
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(A) such Holder has previously given written
notice to the Trustee of a continuing Event of Default;
(B) the Holders of not less than 25% in
principal amount of then outstanding Notes shall have made written
request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;
(C) such Holder or Holders have offered to the
Trustee security or indemnity reasonably satisfactory to the Trustee
against the costs, expenses and liabilities to be incurred or
reasonably probable to be incurred in compliance with such request;
(D) the Trustee for 60 days after its receipt of
such notice, request and offer of indemnity has failed to institute any
such proceeding; and
(E) no direction inconsistent with such written
request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of then outstanding Notes;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture to affect, disturb or prejudice the rights of any other Holders,
or to obtain or to seek to obtain priority or preference over any other Holders
or to enforce any right under this Indenture, except in the manner herein
provided and for the equal and ratable benefit of all the Holders.
SECTION 6.8. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE
PRINCIPAL, PREMIUM AND INTEREST.
Notwithstanding any other provision of this Indenture but
subject to the provisions of Section 6.6 and Article XI, the Holder of any Note
shall have the right, which is absolute and unconditional, to receive payment of
the principal of, and premium, interest on such Note when due (including, in the
case of redemption, the Redemption Price on the applicable Redemption Date, and
in the case of the Repurchase Price, on the applicable Repurchase Date) and to
institute suit for the enforcement of any such payment, and such rights shall
not be impaired without the consent of such Holder.
SECTION 6.9. RIGHTS AND REMEDIES CUMULATIVE.
Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes in Section 2.7, no
right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or
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now or hereafter existing at law or in equity or otherwise. The assertion or
employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.
SECTION 6.10. DELAY OR OMISSION NOT WAIVER.
No delay or omission by the Trustee or by any Holder of any
Note to exercise any right or remedy arising upon any Event of Default shall
impair the exercise of any such right or remedy or constitute a waiver of any
such Event of Default. Every right and remedy given by this Article VI or by law
to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.
SECTION 6.11. CONTROL BY HOLDERS.
The Holder or Holders of no less than a majority in aggregate
principal amount of then outstanding Notes shall have the right to direct the
time, method and place of conducting any proceeding for any remedy available to
the Trustee or exercising any trust or power conferred upon the Trustee,
provided, that
(1) the Trustee may refuse to follow any direction that conflicts
with any rule of law or with this Indenture,
(2) the Trustee shall not determine that the action so directed
would be unjustly prejudicial to the Holders not taking part
in such direction or that may involve the Trustee in personal
liability, and
(3) 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 reasonably satisfactory to it against any loss, expense or
liability caused by taking such action or following such direction.
SECTION 6.12. WAIVER OF PAST DEFAULT.
The Holder or Holders of not less than a majority in aggregate
principal amount of then outstanding Notes may, on behalf of all Holders, prior
to the declaration of acceleration of the maturity of the Notes, waive any past
default hereunder and its consequences, except a default
(A) in the payment of the principal of, premium, or
interest on any Note not yet cured, or
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(B) in respect of a covenant or provision hereof which,
under Article IX, cannot be modified or amended
without the consent of the Holder of each outstanding
Note affected.
Upon any such waiver, such default shall cease to exist, and
any Event of Default arising therefrom shall be deemed to have been cured, for
every purpose of this Indenture; but no such waiver shall extend to any
subsequent or other default or impair the exercise of any right arising
therefrom.
In the event of a waiver, the Company shall deliver to the
Trustee an Officer's Certificate stating that the requisite percentage of
Holders have consented to such waiver and attaching copies of such consents.
When a Default or Event of Default is waived, it is cured and ceases.
SECTION 6.13. UNDERTAKING FOR COSTS.
All parties to this Indenture agree, and each Holder of any
Note by his acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or
remedy under this Indenture, or in any suit against the Trustee for any action
taken, suffered or omitted to be taken by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys' fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such
party litigant; but the provisions of this Section 6.13 shall not apply to any
suit instituted by the Trustee, to any suit instituted by any Holder, or group
of Holders, holding in the aggregate more than 10% in aggregate principal amount
of then outstanding Notes, or to any suit instituted by any Holder for
enforcement of the payment of principal of, premium or interest on any Note on
or after the respective Stated Maturity of such Note (including, in the case of
redemption, on or after the Redemption Date).
SECTION 6.14. RESTORATION OF RIGHTS AND REMEDIES.
If the Trustee or any Holder has instituted any proceeding to
enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to
the Trustee or to such Holder, then and in every case, subject to any
determination in such proceeding, the Company, the Trustee and the Holders shall
be restored severally and respectively to their former positions hereunder and
thereafter all rights and remedies of the Trustee and the Holders shall continue
as though no such proceeding had been instituted.
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ARTICLE VII
TRUSTEE
The Trustee hereby accepts the trust imposed upon it by this
Indenture and covenants and agrees to perform the same, as herein expressed.
SECTION 7.1. DUTIES OF TRUSTEE.
(a) If a Default or an Event of Default actually known to
the Trustee has occurred and is continuing, the Trustee shall exercise such of
the rights and powers vested in it by this Indenture and use the same degree of
care and skill in their exercise as a prudent Person would exercise or use 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
as are specifically set forth in this Indenture and no others,
and no covenants or obligations shall be implied in or read
into this Indenture as against the Trustee.
(2) In the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed
therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture.
However, with respect to certificates or opinions specifically
required by any provision hereof to be furnished to it, the
Trustee shall examine the certificates and opinions to
determine whether or not they conform to the requirements of
this Indenture.
(c) The Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:
(1) This paragraph does not limit the effect of
paragraph (b) of this Section 7.1.
(2) The Trustee shall not be liable for any
error of judgment made in good faith by a Trust Officer,
unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts.
(3) The Trustee shall not be liable with respect
to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section
6.11 and the Trustee shall be entitled from time to time to
request and receive such direction.
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(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 at the request, order or direction of
the Holders or in the exercise of any of its rights or powers unless it receives
reasonable indemnity satisfactory to it against any loss, liability or expense.
(e) Every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b), (c), (d) and (f) of
this Section 7.1.
(f) The Trustee shall not be liable for interest on any
assets received by it except as the Trustee may agree in writing with the
Company. Assets held in trust by the Trustee need not be segregated from other
assets except to the extent required by law.
SECTION 7.2. RIGHTS OF TRUSTEE.
Subject to Section 7.1:
(a) The Trustee may conclusively rely on any document
believed by it to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in any such
document.
(b) Before the Trustee acts or refrains from acting, it
may consult with counsel and may require an Officers' Certificate or an Opinion
of Counsel, which shall conform to Sections 14.4 and 14.5. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such certificate or advice of counsel.
(c) The Trustee may act through its attorneys and agents
and shall not be responsible for the misconduct or negligence of any agent
appointed with due care.
(d) The Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers conferred upon it by this Indenture.
(e) The Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, 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 at the expense of the Company and shall incur no liability of any
kind by reason of such inquiry or investigation.
(f) The Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Holders, pursuant to the provisions of this
Indenture, unless such Holders shall have
63
offered to the Trustee reasonable security or indemnity satisfactory to it
against the costs, expenses and liabilities which may be incurred therein or
thereby.
(g) Unless otherwise specifically provided for in this
Indenture, any demand, request, direction or notice from the Company shall be
sufficient if signed by an Officer of the Company.
(h) The Trustee shall have no duty to inquire as to the
performance of the Company's covenants in Article IV hereof. In addition, the
Trustee shall not be deemed to have knowledge of any Default or Event of Default
except (i) any Event of Default occurring pursuant to Sections 6.1(a) or 6.1(b),
or (ii) any Default or Event of Default of which a Trust Officer of the Trustee
shall have received written notification or obtained actual knowledge.
(i) Subject to Section 9.2 hereof, the Trustee may (but
shall not be obligated to), without the consent of the Holders, give any
consent, waiver or approval required by the terms hereof. The Trustee shall be
entitled to request and conclusively rely on an Opinion of Counsel with respect
to whether any consent, waiver, approval, amendment or modification shall be
deemed to have a material adverse effect on the interest or rights of any
Holder.
(j) In no event shall the Trustee be responsible or
liable for special, indirect or consequential loss or damage of any kind
whatsoever (including, but not limited to, loss of profit) irrespective of
whether the Trustee has been advised of the likelihood of such loss or damage
and regardless of the form of action.
(k) The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and each agent, custodian and other Person employed
to act hereunder.
SECTION 7.3. INDIVIDUAL RIGHTS OF TRUSTEE.
The Trustee in its individual or any other capacity may become
the owner or pledgee of Notes and may otherwise deal with the Company, any of
its Subsidiaries, or their respective Affiliates with the same rights it would
have if it were not Trustee. Any Agent may do the same with like rights;
however, the Trustee must comply with Sections 7.10 and 7.11.
SECTION 7.4. TRUSTEE'S DISCLAIMER.
The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Notes and it shall not be accountable for the
Company's use of the proceeds from the Notes, and it shall not be responsible
for any statement in the Notes, other than the Trustee's certificate of
authentication, or the use or application of any funds received by a Paying
Agent other than the Trustee.
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SECTION 7.5. NOTICE OF DEFAULT.
Except in the case of a Default or an Event of Default in
payment of principal, premium or interest to any Note (including the payment of
the Repurchase Price on the Repurchase Date and the payment of the Redemption
Price on the Redemption Date), the Trustee may withhold the notice if and so
long as a Trust Officer in good faith determines that withholding the notice is
in the interest of the Noteholders.
SECTION 7.6. REPORTS BY TRUSTEE TO HOLDERS.
Within 60 days after each May 15 beginning with the May 15
following the date of this Indenture, the Trustee shall, if required by TIA
Section 313(a), mail to each Noteholder a brief report dated as of such May 15
that complies with TIA Section 313(a). The Trustee also shall comply with TIA
Sections 313(b) and 313(c).
The Company shall promptly notify the Trustee in writing if
the Notes become listed on any stock exchange or automatic quotation system or
delisted therefrom.
A copy of each report at the time of its mailing to
Noteholders shall be mailed to the Company and filed with the Commission, if
required by law, and each stock exchange, if any, on which the Notes are listed.
SECTION 7.7. COMPENSATION AND INDEMNITY.
The Company agrees to pay to the Trustee from time to time
such compensation as the Company and the Trustee shall from time to time agree
in writing for all services rendered by it hereunder (which compensation shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust). The Company shall also reimburse the Trustee upon
request for all reasonable disbursements, expenses and advances incurred or made
by it. Such expenses shall include the reasonable compensation, disbursements
and expenses of the Trustee's agents, accountants, experts and counsel.
The Trustee shall not be under any obligation to institute any
suit, or take any remedial action under this Indenture, or to enter any
appearance or in any way defend any suit in which it may be a defendant, or to
take any steps in the execution of the trusts created hereby or thereby or in
the enforcement of any rights and powers under this Indenture, until it shall be
indemnified to its reasonable satisfaction against any and all expenses,
disbursements, advances and other liabilities incurred or made by the Trustee in
accordance with any provisions of this Indenture, including compensation for
services, costs, expenses, outlays, counsel fees and other disbursements, and
against all liability not due to its own negligence or willful misconduct.
The Company agrees to indemnify the Trustee (in its capacities
as Trustee, Paying Agent, Registrar and Note Custodian) and each of its
officers, directors,
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attorneys-in-fact and agents for, and hold it and each of them harmless against,
any claim, demand, expense (including but not limited to reasonable
compensation, disbursements and expenses of the Trustee's agents and counsel),
loss, damage or liability incurred by it, arising out of or in connection with
the administration of this trust and its rights or duties hereunder including
the reasonable costs and expenses of defending itself against any claim or
liability in connection with the exercise or performance of any of its powers or
duties hereunder. The Trustee shall notify the Company promptly of any claim
asserted against the Trustee of which a Trust Officer receives written notice
for which it may seek indemnity; however, unless the position of the Company is
prejudiced by such failure, the failure of the Trustee to promptly notify the
Company shall not limit its right to indemnification. The Company shall defend
each such claim. The Trustee may retain separate counsel if the Trustee shall
have been reasonably advised by counsel that there may be one or more legal
defenses available to it that are different from or additional to those
available to the Company and in the reasonable judgment of such counsel it is
advisable for the Trustee to engage separate counsel, and the Company shall
reimburse the Trustee for the reasonable fees and expenses of such counsel. The
Company need not pay for any settlement made without its written consent. The
Company need not reimburse any expense or indemnify against any loss or
liability to the extent incurred by the Trustee through its own negligence, bad
faith or willful misconduct.
To secure the Company's payment obligations in this Section
7.7, the Company and the Holders agree that the Trustee shall have a lien prior
to the Notes on all assets held or collected by the Trustee, in its capacity as
Trustee, except assets held in trust to pay principal of, premium or interest on
particular Notes pursuant to Article III.
When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.1(f) or (g) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.
The Company's obligations under this Section 7.7 and any lien
arising hereunder shall survive the resignation or removal of the Trustee, the
discharge of the Company's obligations pursuant to Article VIII of this
Indenture and any rejection or termination of this Indenture under any
Bankruptcy Law.
SECTION 7.8. REPLACEMENT OF TRUSTEE.
The Trustee may resign by so notifying the Company in writing.
The Holder or Holders of a majority in principal amount of then outstanding
Notes may remove the Trustee by so notifying the Company and the Trustee in
writing. The Company may remove the Trustee if:
(a) the Trustee fails to comply with Section 7.10;
(b) the Trustee is adjudged bankrupt or insolvent;
66
(c) a receiver, Custodian, or other public officer takes
charge of the Trustee or its property; or
(d) the Trustee becomes incapable of acting.
No resignation or removal of the Trustee and no appointment of
a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee in accordance with the
applicable requirements of this Section 7.8.
If the instrument of acceptance by a successor Trustee
required by this Section 7.8 shall not have been delivered to the Trustee within
30 days after the giving of such notice of removal, the removed Trustee may
petition at the expense of the Company any court of competent jurisdiction for
the appointment of a successor Trustee.
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. At any time within one year after a successor Trustee
appointed by the Company takes office, the Holder or Holders of a majority in
principal amount of then outstanding Notes may, with the Company's consent,
appoint a successor Trustee to replace such successor Trustee as so appointed by
the Company.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to the Company. Immediately after that
and provided that all sums owing to the retiring Trustee provided for in Section
7.7 have been paid, the retiring Trustee shall transfer all property held by it
as trustee to the successor Trustee, subject to the lien provided in Section
7.7, the resignation or removal of the retiring Trustee shall become effective,
and the successor Trustee shall have all the rights, powers and duties of the
Trustee under this Indenture. A successor Trustee shall mail notice of its
succession to each Holder.
If a successor Trustee does not take office within 60 days
after the retiring Trustee resigns or is removed, the Company or any Holder or
Holders of at least 10% in principal amount of then outstanding Notes may
petition any court of competent jurisdiction for the appointment of a successor
Trustee.
If the Trustee fails to comply with Section 7.10, any Holder
or Holders of at least 10% in principal amount of then outstanding Notes may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee. Any successor Trustee shall comply with
TIA Section 310(a)(5).
Notwithstanding replacement of the Trustee pursuant to this
Section 7.8, the Company's obligations under Section 7.7 shall continue for the
benefit of the retiring Trustee.
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SECTION 7.9. SUCCESSOR TRUSTEE BY MERGER, ETC.
If the Trustee consolidates with, merges or converts into, or
transfers all or substantially all of its corporate trust business to, another
corporation, the resulting, surviving or transferee corporation without any
further act shall, if such resulting, surviving or transferee corporation is
otherwise eligible hereunder, be the successor Trustee, provided such
corporation shall be otherwise eligible under this Article, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto. In case any Notes shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
delivery the Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes.
SECTION 7.10. ELIGIBILITY; DISQUALIFICATION.
The Trustee shall at all times satisfy the requirements of TIA
Section 310(a)(1), (2) and (5). The Trustee shall have a combined capital and
surplus of at least $50,000,000 (or being a member or subsidiary of a bank
holding system with aggregate combined capital and surplus of at least
$50,000,000) as set forth in its most recent published annual report of
condition if such corporation or system publishes reports of condition at least
annually, pursuant to law or to the requirements of such supervising or
examining authority, then for the purposes of this Section, the combined capital
and surplus of such corporation or system shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. The Trustee shall comply with 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.
The provisions of TIA Section 310 shall apply to the Company, as obligor of the
Notes.
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.
SECTION 7.12. "TRUSTEE" TO INCLUDE PAYING AGENT.
In case at any time any Paying Agent other than the Trustee
shall have been appointed by the Company and be then acting hereunder, the term
"Trustee" as used in this Article VII and in Article X hereof shall in each case
(unless the context shall otherwise require) be construed as extending to and
including such Paying Agent within
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its meaning as fully and for all intents and purposes as if such Paying Agent
were named in this Article VII and in Article X hereof in place of the Trustee.
ARTICLE VIII
LEGAL DEFEASANCE AND COVENANT DEFEASANCE
SECTION 8.1. OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT
DEFEASANCE.
The Company may, at the option of its Board of Directors
evidenced by a resolution set forth in an Officers' Certificate, at any time,
elect to have either Section 8.2 or 8.3 hereof be applied to all outstanding
Notes upon compliance with the conditions set forth below in this Article VIII.
SECTION 8.2. LEGAL DEFEASANCE AND DISCHARGE.
Upon the Company's exercise under Section 8.1 hereof of the
option applicable to this Section 8.2, the Company and each of the Subsidiary
Guarantors shall, subject to the satisfaction of the conditions set forth in
Section 8.4 hereof, be deemed to have been discharged from their 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 8.5
hereof and the other Sections of this Indenture referred to in (a) and (b)
below, and to have satisfied all its other obligations under such Notes and this
Indenture (and the Trustee, on demand of and at the expense of the Company,
shall execute proper instruments acknowledging the same), except for the
following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of outstanding Notes to receive
solely from the trust fund described in Section 8.4 hereof, and as more fully
set forth in such Section, payments in respect of the principal, premium and
interest on such Notes when such payments are due, (b) the Company's obligations
with respect to such Notes under Article II and Section 4.2 hereof, (c) the
rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company's obligations in connection therewith and (d) this Article VIII. Subject
to compliance with this Article VIII, the Company may exercise its option under
this Section 8.2 notwithstanding the prior exercise of its option under Section
8.3 hereof.
SECTION 8.3. COVENANT DEFEASANCE.
Upon the Company's exercise under Section 8.1 hereof of the
option applicable to this Section 8.3, the Company and the Subsidiary Guarantors
shall, subject to the satisfaction of the conditions set forth in Section 8.4
hereof, be released from its obligations under the covenants contained in
Sections 4.4, 4.5, 4.11, 4.12, 4.13, 4.14, 4.15, 4.17, 4.18, 4.19, 4.20 and 4.21
hereof with respect to the outstanding Notes on and
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after the date the conditions set forth below are satisfied (hereinafter,
"Covenant Defeasance") and the Notes shall thereafter be deemed not
"outstanding" for the purposes of any direction, waiver, consent or declaration
or act of Holders (and the consequences of any thereof) in connection with such
covenants, but shall continue to be deemed "outstanding" for all other purposes
hereunder (it being understood that such Notes shall not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that, with
respect to the outstanding Notes and the Subsidiary Guarantees, the Company and
the Subsidiary Guarantors, respectively, may omit to comply with and shall have
no liability in respect of any term, condition or limitation set forth in any
such covenant or Subsidiary Guarantee, 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 in a Subsidiary
Guarantee or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.1 hereof, but,
except as specified above, the remainder of this Indenture, such Notes and the
Subsidiary Guarantees shall be unaffected thereby. In addition, upon the
Company's exercise under Section 8.1 hereof of the option applicable to this
Section 8.3 hereof, subject to the satisfaction of the conditions set forth in
Section 8.4 hereof, Sections 6.1(c) through 6.1(g) hereof shall not constitute
Events of Default.
SECTION 8.4. CONDITIONS TO LEGAL OR COVENANT DEFEASANCE.
The following shall be the conditions to the application of
either Section 8.2 or 8.3 hereof to the outstanding Notes:
In order to exercise either Legal Defeasance or Covenant
Defeasance:
(a) the Company must irrevocably deposit with the
Trustee, in trust, for the benefit of the Holders, cash in United States
dollars, non-callable Government Securities, or a combination thereof, in such
amounts as will be sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants, to pay the principal, premium and
interest on the outstanding Notes on the Stated Maturity thereof or on the
applicable redemption date, as the case may be, and the Company must specify
whether the Notes are being defeased to maturity or to a particular redemption
date;
(b) in the case of an election under Section 8.2 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel from
nationally recognized tax counsel reasonably acceptable to the Trustee
confirming that (A) the Company has received from, or there has been published
by, the Internal Revenue Service a ruling or (B) since the date of this
Indenture, there has been a change in the applicable federal income tax law, in
either case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Legal
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 Legal
Defeasance had not occurred;
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(c) in the case of an election under Section 8.3 hereof,
the Company shall have delivered to the Trustee an Opinion of Counsel from
nationally recognized tax counsel reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Notes will not recognize income,
gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and will be subject to federal income tax on the same amounts, in the
same manner and at the same times as would have been the case if such Covenant
Defeasance had not occurred;
(d) no Default or Event of Default shall have occurred
and be continuing on the date of such deposit or insofar as Events of Default
from bankruptcy or insolvency events are concerned, at any time in the period
ending on the 91st day after the date of deposit;
(e) such Legal Defeasance or Covenant Defeasance shall
not result in a breach or violation of, or constitute a default under, any
material agreement or instrument (other than this Indenture) to which the
Company or any of its Restricted Subsidiaries is a party or by which the Company
or any of its Restricted Subsidiaries is bound;
(f) the Company shall have delivered to the Trustee an
Officers' Certificate stating that the deposit was not made by the Company with
the intent of preferring the Holders over any other creditors of the Company or
with the intent of defeating, hindering, delaying or defrauding creditors of the
Company or others;
(g) the Company shall have delivered to the Trustee an
Officers' Certificate and an Opinion of Counsel, each stating that all
conditions precedent provided for or relating to the Legal Defeasance or the
Covenant Defeasance have been complied with; and
(h) the deposit shall not result in the Company, the
Trustee or the trust becoming or being deemed to be an "investment company"
under the Investment Company Act of 1940, as amended.
SECTION 8.5. DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE
HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS.
Subject to Section 8.6 hereof, all money and non-callable
Government Securities (including the proceeds thereof) deposited with the
Trustee (or other qualifying trustee, collectively for purposes of this Section
8.5, the "Trustee") pursuant to Section 8.4 hereof in respect of the outstanding
Notes shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Notes and this Indenture, to the payment, either directly or
through any Paying Agent (including the Company acting as Paying Agent) as the
Trustee may determine, to the Holders of such Notes of all sums due and to
become due thereon in respect of principal, premium, if any, and interest, but
such money need not be segregated from other funds except to the extent required
by law.
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The Company shall pay and indemnify the Trustee against any
tax, fee or other charge imposed on or assessed against the cash or non-callable
Government Securities deposited pursuant to Section 8.4 hereof or the principal
and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the outstanding Notes.
Anything in this Article VII to the contrary notwithstanding,
the Trustee shall deliver or pay to the Company from time to time upon the
request of the Company any money or non-callable Government Securities held by
it as provided in Section 8.4 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.4(a) hereof), are in excess of the amount thereof that
would then be required to be deposited to effect an equivalent Legal Defeasance
or Covenant Defeasance.
SECTION 8.6. REPAYMENT TO COMPANY.
Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium,
if any, or interest on any Note and remaining unclaimed for two years after such
principal, and premium, if any, or interest has become due and payable shall be
paid to the Company on its request or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Note shall thereafter, as a
secured creditor, look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money,
and all liability of the Company as trustee thereof, shall thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may at the expense of the Company cause to be
published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.
SECTION 8.7. REINSTATEMENT.
If the Trustee or Paying Agent is unable to apply any United
States dollars or non-callable Government Securities in accordance with Section
8.2 or 8.3 hereof, as the case may be, by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, then the Company's obligations under this Indenture and the
Note; shall be revived and reinstated as though no deposit had occurred pursuant
to Section 8.2 or 8.3 hereof until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.2 or 8.3 hereof,
as the case may be; provided, however, that, if the Company makes any payment of
principal of, premium, if any, or interest on any Note following the
reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the
Trustee or Paying Agent.
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SECTION 8.8. DISCHARGE OF LIABILITY ON SECURITIES; DEFEASANCE.
When (a)(i) the Company delivers to the Trustee all
outstanding Notes for cancellation or (ii) all outstanding Notes have become due
and payable, whether at maturity or on a specified redemption date as a result
of the mailing of a notice of redemption pursuant to Article III hereof, (b) the
Company irrevocably deposits with the Trustee money sufficient to pay at
maturity or upon redemption all outstanding Notes, including interest and
premium thereon to maturity or such redemption date, and if in either case the
Company pays all other sums payable hereunder by the Company, and (c) if the
Notes have been called for redemption and the redemption date has not occurred,
the Company delivers to the Trustee an Opinion of Counsel in the United States
reasonably acceptable to the Trustee confirming that the Holders of the
outstanding Notes will not recognize income, gain or loss for federal income tax
purposes as a result of such actions and will be subject to federal income tax
on the same amounts, in the same manner and at the same time as would have been
the case if such actions had not occurred, then this Indenture shall cease to be
of further effect except for (i) the provisions set forth in Article II, Section
4.7, 7.7 and 8.6 hereof and (ii) if the Notes have been called for redemption
and the redemption date has not occurred, the Company's obligation to pay the
redemption price on such redemption date. The Trustee shall acknowledge
satisfaction and discharge of this Indenture on demand of the Company
accompanied by an Officer's Certificate and an Opinion of Counsel and at the
cost and expense of the Company.
ARTICLE IX
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.1. WITHOUT CONSENT OF HOLDERS.
The Company, the Subsidiary Guarantors and the Trustee may
amend or supplement this Indenture or the Notes without the consent of any
Holder of Notes:
(i) to cure any ambiguity, defect or
inconsistency;
(ii) to provide for uncertificated Notes in
addition to or in place of certificated Notes;
(iii) to provide for the assumption of the
Company's or a Subsidiary Guarantor's Obligations to Holders in the
case of a merger or consolidation;
(iv) to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does
not adversely affect the legal rights hereunder of any Holder of the
Notes;
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(v) to comply with requirements of the
Commission in order to effect or maintain the qualification of this
Indenture under the TIA;
(vi) to provide for the issuance of Additional
Notes in accordance with the limitations set forth in this Indenture as
of the date hereof; or
(vii) to allow any Subsidiary Guarantor to execute
a supplemental indenture and/or a Subsidiary Guarantee with respect to
the Notes.
Upon the request of the Company, accompanied by a resolution
of the Board of Directors of the Company, authorizing the execution of any such
supplemental indenture or amendment, and upon receipt by the Trustee of the
documents described in Section 9.6 hereof required or requested by the Trustee,
the Trustee shall join with the Company and the Subsidiary Guarantors in the
execution of any supplemental indenture or amendment authorized or permitted by
the terms of this Indenture and to make any further appropriate agreements and
stipulations which may be therein contained, but the Trustee shall not be
obligated to enter into such supplemental indenture or amendment which affects
its own rights, duties or immunities under this Indenture or otherwise.
SECTION 9.2. WITH CONSENT OF HOLDERS.
Except as otherwise provided herein, the Company and the
Trustee may amend or supplement this Indenture, the Notes or the Subsidiary
Guarantees with the written consent of the Holders of at least a majority in
principal amount of the then outstanding Notes (including consents obtained in
connection with a tender offer or exchange offer for the Notes).
Upon the request of the Company, accompanied by a resolution
of the Board of Directors of the Company authorizing the execution of any such
supplemental indenture or amendment, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in Section
9.6 hereof, the Trustee shall join with the Company and the Subsidiary
Guarantors in the execution of such supplemental indenture or amendment unless
such supplemental indenture or amendment affects the Trustee's own rights,
duties or immunities under this Indenture or otherwise, in which case the
Trustee may in its 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 to approve the particular form of any proposed supplemental
indenture or amendment, but it shall be sufficient if such consent approves the
substance thereof.
After a supplemental indenture or amendment under this Section
9.2 becomes effective, the Company shall mail to the Holders of each Note
affected thereby a notice briefly describing the amendment 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
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validity of any such supplemental indenture, amendment or waiver. Subject to
Sections 6.8 and 6.12 hereof, the Holders of a majority in principal amount of
the Notes then outstanding may waive compliance in a particular instance by the
Company with any provision of this Indenture or the Notes. However, without the
consent of each Holder of Notes affected, an amendment or waiver under this
Section may not (with respect to any Notes held by a non-consenting Holder of
Notes):
(a) reduce the principal amount of Notes whose Holders
must consent to an amendment, supplement or waiver;
(b) reduce the principal of or change the fixed maturity
of any Note or alter the optional or mandatory redemption provisions (other than
provisions relating to the covenants described in Section 4.20 or 4.21) or
reduce the prices at which the Company shall offer to purchase such Notes
pursuant to Sections 4.20 or 4.21 hereof;
(c) reduce the rate of or change the time for payment of
interest, including default interest, on any Note;
(d) waive a Default or Event of Default in the payment of
principal of or interest on, or redemption payment with respect to, any Note
(other than a Default in the payment of an amount due as a result of an
acceleration if the Holders of Notes rescind such acceleration pursuant to
Section 6.2);
(e) make any Note payable in money other than that stated
in the Note;
(f) make any change in the provisions of this Indenture
relating to waiver of past defaults or to the rights of Holders to receive
payments of principal, premiums or interest on the Notes or in this sentence of
this Section 9.2;
(g) waive a redemption payment with respect to any Note;
(h) make any change to the subordination provisions of
Article XI of this Indenture that adversely affects Holders of Notes; or
(i) make any change in the foregoing amendment and waiver
provisions.
SECTION 9.3. COMPLIANCE WITH TIA.
If at the time of an amendment to this Indenture or the Notes,
this Indenture shall be qualified under the TIA, every amendment to this
Indenture or the Notes shall be set forth in a supplemental indenture that
complies with the TIA as then in effect.
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SECTION 9.4. REVOCATION AND EFFECT OF CONSENTS.
Until a supplemental indenture, an amendment or waiver becomes
effective, a consent to it by a Holder of a Note is a continuing consent by the
Holder and every subsequent Holder of 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
specified in any solicitation or waiver. Subject to Section 9.2 hereof, a
supplemental indenture, amendment or waiver becomes effective in accordance with
its terms and thereafter binds every Holder of Notes.
The Company may fix a record date for determining which
Holders must consent to such supplemental indenture, amendment or waiver or
action permitted by Section 9.2. If the Company fixes a record date, the record
date shall be fixed at the later of (i) 30 days prior to the first solicitation
of such consent or the date of the most recent list of Holders furnished to the
Trustee prior to such solicitation pursuant to Section 2.5, or (ii) such other
date as the Company shall designate.
SECTION 9.5. NOTATION ON OR EXCHANGE OF NOTES.
The Trustee may place an appropriate notation about a
supplemental indenture, amendment or waiver on any Note thereafter
authenticated. The Company in exchange for all Notes may issue and the Trustee
shall authenticate new Notes that reflect the amendment or waiver.
Failure to make the appropriate notation or issue a new Note
shall not affect the validity and effect of such amendment or waiver.
SECTION 9.6. TRUSTEE TO SIGN AMENDMENTS, ETC.
The Trustee shall sign any amendment or supplemental indenture
authorized pursuant to this Article IX if the amendment does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. If it does,
the Trustee may, but need not, sign it. In signing or refusing to sign such
amendment or supplemental indenture, the Trustee shall be provided with, if
requested, an indemnity reasonably satisfactory to it and to receive and,
subject to Section 7.1, shall be fully protected in relying upon, an Officers'
Certificate and an Opinion of Counsel as conclusive evidence that such amendment
or supplemental indenture is authorized or permitted by this Indenture, that it
is not inconsistent herewith or therewith, and that it will be valid and binding
upon the Company in accordance with its terms. The Company may not sign an
amendment or supplemental indenture until the Board of Directors of the Company
approves it in writing.
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ARTICLE X
GUARANTEE OF NOTES
SECTION 10.1. SUBSIDIARY GUARANTEE.
Subject to Section 10.6 hereof, each of the Subsidiary
Guarantors hereby, jointly and severally, unconditionally guarantees to each
Holder of a Note authenticated and delivered by the Trustee and to the Trustee
and its successors and assigns, irrespective of the validity and enforceability
of this Indenture, the Notes and the Obligations of the Company hereunder and
thereunder, that: (a) the principal of and premium and interest on the Notes
will be promptly paid in full when due, subject to any applicable grace period,
whether at maturity, by acceleration, redemption or otherwise, and interest on
the overdue principal, premium, (to the extent permitted by law) interest on the
Notes, and all other payment Obligations of the Company to the Holders or to the
Trustee hereunder or thereunder will be promptly paid in full and performed, all
in accordance with the terms hereof and thereof; and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other
Obligations, the same will be promptly paid in full when due or performed in
accordance with the terms of the extension or renewal, subject to any applicable
grace period, whether at stated maturity, by acceleration, redemption or
otherwise. Failing payment when so due of any amount so guaranteed or any
performance so guaranteed for whatever reason the Subsidiary Guarantors will be
jointly and severally obligated to pay the same immediately. An Event of Default
under this Indenture or the Notes shall constitute an event of default under the
Subsidiary Guarantees, and shall entitle the Holders to accelerate, the
Obligations of the Subsidiary Guarantors hereunder in the same manner and to the
same extent as the Obligations of the Company. The Subsidiary Guarantors hereby
agree that their Obligations hereunder shall be unconditional, irrespective of
the validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
Subsidiary Guarantor. Each Subsidiary Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of
insolvency or bankruptcy of the Company, any right to require a proceeding first
against the Company, protest, notice and all demands whatsoever and covenants
that this Subsidiary Guarantee will not be discharged except by complete
performance of the Obligations contained in the Notes and this Indenture. If any
Holder or the Trustee is required by any court or otherwise to return to the
Company, the Subsidiary Guarantors, or any Note Custodian, trustee, liquidator
or other similar official acting in relation to either the Company or the
Subsidiary Guarantors, any amount paid by the Company or any Subsidiary
Guarantor to the Trustee or such Holder, this Subsidiary Guarantee, to the
extent theretofore discharged, shall be reinstated in full force and effect.
Each Subsidiary Guarantor agrees that it shall not be entitled to, and hereby
waives, any right of subrogation in relation to the Holders in respect of any
Obligations guaranteed hereby.
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Each Subsidiary Guarantor further agrees that, as between the Subsidiary
Guarantors, on the one hand, and the Holders and the Trustee, on the other hand,
(a) the maturity of the Obligations guaranteed hereby may be accelerated as
provided in Article VI hereof for the purposes of its Subsidiary Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the Obligations guaranteed thereby, and (b) in the
event of any declaration of acceleration of such Obligations as provided in
Article VI hereof, such Obligations (whether or not due and payable) shall
forthwith become due and payable by the Subsidiary Guarantor for the purpose of
its Subsidiary Guarantee. The Subsidiary Guarantors shall have the right to seek
contribution from any non-paying Subsidiary Guarantor so long as the exercise of
such right does not impair the rights of the Holders under the Subsidiary
Guarantees.
SECTION 10.2. EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEE.
To evidence its Subsidiary Guarantee set forth in Section
10.01 hereof, each Subsidiary Guarantor hereby agrees that a notation of such
Subsidiary Guarantee substantially in the form of Exhibit B to the Indenture
shall be endorsed by manual or facsimile signature by an Officer of such
Subsidiary Guarantor on each Note authenticated and delivered by the Trustee and
that this Indenture shall be executed on behalf of such Subsidiary Guarantor, by
manual or facsimile signature, by an Officer of such Subsidiary Guarantor.
After the date of this Indenture, if the Company or any or its
Restricted Subsidiaries shall acquire or create a Domestic Restricted
Subsidiary, or redesignate an Unrestricted Subsidiary to be a Restricted
Subsidiary, then the Company shall cause such Restricted Subsidiary to execute a
Subsidiary Guarantee substantially in the form of Exhibit B. Such Subsidiary
Guarantee shall be accompanied by an appropriate supplemental Indenture, along
with such other opinions, certificates and documents required under this
Indenture; provided, however, that any Subsidiary that has been properly
designated as an Unrestricted Subsidiary in accordance with this Indenture need
not execute a Subsidiary Guarantee for so long as it continues to constitute an
Unrestricted Subsidiary.
Each Subsidiary Guarantor hereby agrees that its Subsidiary
Guarantee shall remain in full force and effect notwithstanding any failure to
endorse on each Note a notation of such Subsidiary Guarantee.
If an Officer whose signature is on this Indenture or on the
Subsidiary Guarantee no longer holds that office at the time the Trustee
authenticates the Senior Note on which a Subsidiary Guarantee is endorsed, the
Subsidiary Guarantee shall be valid nevertheless.
The delivery of any Note by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Subsidiary Guarantee set forth in this Indenture on behalf of the Subsidiary
Guarantors.
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SECTION 10.3. SUBSIDIARY GUARANTORS MAY CONSOLIDATE, ETC., ON
CERTAIN TERMS.
(a) Except as set forth in Articles 4 and 5 hereof,
nothing contained in this Indenture shall prohibit a merger between a Subsidiary
Guarantor and another Subsidiary Guarantor or a merger between a Subsidiary
Guarantor and the Company.
(b) No Subsidiary Guarantor shall consolidate or merge
with or into (whether or not such Subsidiary Guarantor is the surviving Person),
or sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its properties or assets in one or more related
transactions, another corporation, Person or entity whether or not affiliated
with such Subsidiary Guarantor unless, other than with respect to a merger
between a Subsidiary Guarantor and another Subsidiary Guarantor or a merger
between a Subsidiary Guarantor and the Company, (i) the Person formed by or
surviving any such consolidation or merger (if other than such Subsidiary
Guarantor) or to which such sale, assignment, transfer, lease, conveyance or
other disposition shall have been made is a corporation organized or existing
under the laws of the United States, any state thereof or the District of
Columbia; (ii) subject to the provisions of Section 10.04 hereof, the Person
formed by or surviving any such consolidation or merger (if other than such
Subsidiary Guarantor) or the Person to which such sale, assignment, transfer,
lease, conveyance or other disposition shall have been made, assumes all the
obligations of such Subsidiary Guarantor under the Notes and this Indenture
pursuant to a supplemental indenture in a form reasonably satisfactory to the
Trustee; (iii) immediately before or immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be
continuing; (iv) the Company would be permitted to incur at least $1.00 of
additional Indebtedness pursuant to the Consolidated Coverage Ratio test set
forth in the first paragraph of Section 4.11 hereof.
(c) In the case of any such consolidation, merger, sale
or conveyance and upon the assumption by the successor Person, by supplemental
indenture, executed and delivered to the Trustee of the Subsidiary Guarantee
endorsed upon the Notes and the due and punctual performance of all of the
covenants and conditions of this Indenture to be performed by the Subsidiary
Guarantor, such successor Person shall succeed to and be substituted for the
Subsidiary Guarantor with the same effect as if it had been named herein as a
Subsidiary Guarantor;
provided that, solely for purposes of computing pro forma
EBITDA and the Consolidated Coverage Ratio for purposes of Section 4.11 hereof,
the pro forma EBITDA of any Person other than the Company and its Restricted
Subsidiaries shall only be included for periods subsequent to the effective time
of such merger, consolidation, combination or transfer of assets. Such successor
Person thereupon may cause to be signed any or all of the Subsidiary Guarantees
to be endorsed upon all of the Notes issuable hereunder which theretofore shall
not have been signed by the Company and delivered to the Trustee. All of the
Subsidiary Guarantees so issued shall in all respects have the same legal rank
and benefit under this Indenture as the Subsidiary Guarantees
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theretofore and thereafter issued in accordance with the terms of this Indenture
as though all of such Subsidiary Guarantees had been issued at the date of the
execution hereof.
SECTION 10.4. RELEASES FOLLOWING SALE OF ASSETS.
In the event of a sale or other disposition of all of the
assets of any Subsidiary Guarantor, by way of merger, consolidation or
otherwise, or a sale or other disposition of all of the capital stock of any
Subsidiary Guarantor, then such Subsidiary Guarantor (in the event of a sale or
other disposition, by way of such a merger, consolidation or otherwise, of all
of the capital stock of such Subsidiary Guarantor) or the corporation acquiring
the property (in the event of a sale or other disposition of all of the assets
of such Subsidiary Guarantor) shall be released and relieved of any obligations
under its Subsidiary Guarantee; provided that (i) in the event of an Asset Sale,
the Net Proceeds from such sale or other dispositions are treated in accordance
with the provisions of Section 4.20 hereof and (ii) the Company is in compliance
with all other provisions of this Indenture applicable to such disposition. Upon
delivery by the Company to the Trustee of an Officers' Certificate to the effect
of the foregoing, the Trustee shall execute any documents reasonably required in
order to evidence the release of any Subsidiary Guarantor from its Obligation
under its Subsidiary Guarantee. Any Subsidiary Guarantor not released from its
Obligations under its Subsidiary Guarantee shall remain liable for the full
amount of principal of and premium and interest on the Notes and for the other
Obligations of such Subsidiary Guarantor under this Indenture as provided in
this Article X.
SECTION 10.5. RELEASES FOLLOWING DESIGNATION AS AN
UNRESTRICTED SUBSIDIARY.
In the event that the Company designates a Subsidiary
Guarantor to be an Unrestricted Subsidiary, then such Subsidiary Guarantor shall
be released and relieved of any obligations under its Subsidiary Guarantee;
provided that such designation is conducted in accordance with this Indenture.
SECTION 10.6. LIMITATION ON SUBSIDIARY GUARANTOR LIABILITY.
For purposes hereof, each Subsidiary Guarantor's liability
shall be limited to the lesser of (a) the aggregate amount of the Obligations of
the Company under the Notes and this Indenture and (b) the amount, if any, which
would not have (i) rendered such Subsidiary Guarantor insolvent (as such term is
defined in the Bankruptcy Law) or (ii) left such Subsidiary Guarantor with
unreasonably small capital at the time its Subsidiary Guarantee of the Notes was
entered into; provided that, it will be a presumption in any lawsuit or other
proceeding in which a Subsidiary Guarantor is a party that the amount guaranteed
pursuant to the Subsidiary Guarantee is the amount set forth in clause (a) above
unless any creditor, or representative of creditors of such Subsidiary
Guarantor, or debtor in possession or trustee in bankruptcy of the Subsidiary
Guarantor, otherwise proves in such a lawsuit that the aggregate liability of
the Subsidiary Guarantor is the amount set forth in clause (b) above. In making
any
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determination as to solvency or sufficiency of capital of a Subsidiary Guarantor
in accordance with the previous sentence, the right of such Subsidiary Guarantor
to contribution from other Subsidiary Guarantors, and any other rights such
Subsidiary Guarantor may have, contractual or otherwise, shall be taken into
account.
SECTION 10.7. SUBORDINATION OF GUARANTEES.
The Obligations of each Subsidiary Guarantor under its
Subsidiary Guarantee pursuant to this Article X shall be junior and subordinated
to the Senior Indebtedness to the extent applicable to such Subsidiary Guarantor
on the same basis as the Notes are junior and subordinated to the Senior
Indebtedness of the Company. For the purposes of the foregoing sentence, the
Trustee and the Holders shall have the right to receive and/or retain payments
by any of the Subsidiary Guarantors only at such times as they may receive
and/or retain payments in respect of the Notes pursuant to this Indenture,
including Article X hereof.
ARTICLE XI
SUBORDINATION
SECTION 11.1. AGREEMENT TO SUBORDINATE.
The Company agrees, and each Holder by accepting a Note
agrees, that the Indebtedness evidenced by, and the payment of principal,
premium and interest on, the Notes is subordinated in right of payment, to the
extent and in the manner provided in this Article XI, to the prior payment in
full of all Senior Indebtedness, and that the subordination is for the benefit
of the holders of Senior Indebtedness.
SECTION 11.2. LIQUIDATION; DISSOLUTION; BANKRUPTCY.
Upon any distribution to creditors of the Company in a
liquidation or dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company or its
property, an assignment for the benefit of creditors or any marshaling of the
Company's assets and liabilities, in each such case whether voluntary or
involuntary, domestic or foreign:
(a) the holders of Senior Indebtedness shall be entitled
to receive payment in full in cash or Cash Equivalents of all Obligations due in
respect of such Senior Indebtedness (including interest after the commencement
of any such proceeding) in accordance with the terms of the applicable Senior
Indebtedness before Holders shall be entitled to receive any payment of
principal, premium or interest on the Notes; and
(b) until all Obligations with respect to Senior
Indebtedness are paid in full in cash or Cash Equivalents, any such distribution
to which Holders would be entitled shall be made to the holders of such Senior
Indebtedness;
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provided that notwithstanding the foregoing, Holders may receive: (i) Capital
Stock (other than Disqualified Stock); (ii) securities that are subordinated at
least to the same extent as the Notes, to Senior Indebtedness of the Company and
to any securities issued in exchange for such Senior Indebtedness; and (iii)
payments made from the trust described in Article VIII hereof.
SECTION 11.3. DEFAULT ON SENIOR INDEBTEDNESS.
The Company also may not make any payment of principal,
premium and interest on the Notes upon or in respect of the Notes whether on
account of principal, interest, premiums or otherwise (other than as set forth
in Section 11.2(b) hereof) if: (i) a default in the payment of the principal,
premium, if any, or interest on any Senior Indebtedness occurs and is continuing
beyond any applicable period of grace; or (ii) any other default occurs and is
continuing with respect to Senior Indebtedness or would occur as a consequence
of such payment that permits holders of the Senior Indebtedness as to which such
default relates to accelerate its maturity and the Trustee receives a written
notice of such default (a "Payment Blockage Notice") from the holders of any
such Senior Indebtedness.
The Company may and shall resume payment on the Notes: (1) in
the case of a payment default, upon the date on which such Default is cured or
waived or otherwise has ceased to exist, and (2) in the case of a non-payment
default, the earlier of the date on which such other Default is cured or waived
or otherwise has ceased to exist or 179 days after the date on which the
applicable Payment Blockage Notice is received, unless, in the case of either
clause (1) or (2), the maturity of any Senior Indebtedness has been accelerated,
and such acceleration remains in full force and effect. No new period of payment
blockage may be commenced within 360 days after the receipt by the Trustee of
any prior Payment Blockage Notice. No non-payment default that existed or was
continuing on the date of delivery of any Payment Blockage Notice to the Trustee
shall be, or be made, the basis for a subsequent Payment Blockage Notice.
Following the expiration of any period during which the Company is prohibited
from making payments on the Notes pursuant to a Payment Blockage Notice, the
Company will be obligated to resume making any and all required payments in
respect of the Notes, including without limitation any missed payments, unless
the maturity of any Senior Indebtedness has been accelerated, and such
acceleration remains in full force and effect.
SECTION 11.4. 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
acceleration.
SECTION 11.5. WHEN DISTRIBUTION MUST BE PAID OVER.
In the event that the Trustee receives or is holding, or any
Holder receives, any payment of any principal, premium or interest on the Notes
at a time when the Trustee or such Holder, as applicable, has actual knowledge
(in the case of the Trustee as
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described in Section 11.11 hereof), that such payment is prohibited by Section
11.2 or 12.3 hereof, such payment shall be held by the Trustee or such Holder,
in trust for the benefit of, and shall be paid forthwith over and delivered to,
the holders of Senior Indebtedness as their interests may appear or their
Representative under the indenture or other agreement (if any) pursuant to which
Senior Indebtedness may have been issued, as their respective interests may
appear, for application to the payment of all Obligations with respect to the
Senior Indebtedness remaining unpaid to the extent necessary to pay such
Obligations in full in accordance with their terms, after giving effect to any
concurrent payment or distribution to or for the holders of Senior Indebtedness.
With respect to the holders of Senior Indebtedness, the
Trustee undertakes to perform only such obligations on the part of the Trustee
as are specifically set forth in this Article XI, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read
into this Indenture against the Trustee. The Trustee shall not be deemed to owe
any fiduciary duty to the holders of Senior Indebtedness, and shall not be
liable to any such holders if the Trustee shall pay over or distribute to or on
behalf of Holders or the Company or any other Person money or assets to which
any holders of Senior Indebtedness shall be entitled by virtue of this Article
XI, except if such payment is made as a result of the willful misconduct or
gross negligence of the Trustee.
SECTION 11.6. NOTICE BY COMPANY.
The Company shall promptly notify the Trustee and the Paying
Agent of any facts known to the Company that would cause a payment of any
Obligations with respect to the Notes to violate this Article XI, but failure to
give such notice shall not affect the subordination of the Notes to the Senior
Indebtedness as provided in this Article XI.
SECTION 11.7. SUBROGATION.
After all Senior Indebtedness is paid in full and until the
Notes are paid in full, Holders shall be subrogated (equally and ratably with
all other Indebtedness pari passu with the Notes) to the rights of holders of
Senior Indebtedness to receive distributions applicable to Senior Indebtedness
to the extent that distributions otherwise payable to the Holders have been
applied to the payment of Senior Indebtedness. A distribution made under this
Article XI to holders of Senior Indebtedness that otherwise would have been made
to Holders is not, as between the Company and Holders, a payment by the Company
on the Notes.
If any payment or distribution to which the Holders would
otherwise have been entitled but for the provisions of this Article XI shall
have been applied, pursuant to the provisions of this Article XI, to the payment
of all amounts payable under the Senior Indebtedness, then and in such case the
Holders shall be entitled to receive from the holders of such Senior
Indebtedness at the time outstanding any payments or distributions received by
such holders of such Senior Indebtedness in excess of the amount sufficient to
pay all amounts payable under or in respect of such Senior Indebtedness in full;
83
provided that such payments or distributions shall be paid first pro rata to
Holders that previously paid amounts then pro rata to all Holders.
SECTION 11.8. RELATIVE RIGHTS.
This Article XI 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, premium and interest on the Notes in accordance
with their terms;
(2) affect the relative rights of Holders and creditors of the
Company other than their rights in relation to holders of
Senior Indebtedness; or
(3) prevent the Trustee or any Holder from exercising its
available remedies upon a Default or an Event of Default,
subject to the rights of holders and owners of Senior
Indebtedness to receive distributions and payments otherwise
payable to Holders.
If the Company fails because of this Article XI to pay
principal, premium and interest on a Note on the due date, the failure is still
a Default or an Event of Default.
SECTION 11.9. SUBORDINATION MAY NOT BE IMPAIRED BY COMPANY.
No right of any holder of Senior Indebtedness 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 any Holder or by the failure of the
Company or any Holder to comply with this Indenture.
SECTION 11.10. DISTRIBUTION OR NOTICE TO REPRESENTATIVE.
Whenever a distribution is to be made or a notice given to
holders of Senior Indebtedness, the distribution may be made and the notice
given to their Representative.
Upon any payment or distribution of assets of the Company
referred to in this Article XI, the Trustee and the Holders shall be entitled to
rely upon any order or decree made by any court of competent jurisdiction or
upon any certificate of such Representative or of the liquidating trustee or
agent or other person making any distribution to the Trustee or to the Holders
for the purpose of ascertaining the Persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other Indebtedness of
the Company, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Article
XI.
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SECTION 11.11. RIGHTS OF TRUSTEE AND PAYING AGENT.
Notwithstanding the provisions of this Article XI or any other
provision of this Indenture, the Trustee shall not be charged with knowledge of
the existence of any facts that would prohibit the making of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Notes, unless an authorized Officer of the Trustee shall
have received at its office at least two Business Days prior to the due date of
such payment written notice of facts that would cause the payment of any
principal, premium and interest on the Notes to violate this Article XI. Only
the Company or a Representative may give the notice. Nothing in this Article XI
shall impair the claims of, or payments to, the Trustee under or pursuant to
Section 7.7 hereof.
The Trustee in its individual or any other capacity may hold
Senior Indebtedness with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights.
SECTION 11.12. AUTHORIZATION TO EFFECT SUBORDINATION.
Each Holder of a Note by the Holder's acceptance thereof
authorizes and directs the Trustee on the Holder's behalf to take such action as
may be necessary or appropriate to effectuate the subordination as provided in
this Article XI, and appoints the Trustee to act as the Holder's
attorney-in-fact for any and all such purposes. If the Trustee does not file a
proper proof of claim or proof of debt in the form required in any proceeding
referred to in Section 6.4 hereof at least 30 days before the expiration of the
time to file such claim, a Representative of Senior Indebtedness is hereby
authorized to file an appropriate claim for and on behalf of the Holders of the
Notes and the Trustee shall have no liability therefor.
SECTION 11.13. PAYMENT.
A payment with respect to a Note or with respect to principal
of or interest on a Note shall include, without limitation, payment of
principal, premium and interest on any Note, any payment on account of any
mandatory or optional repurchase or redemption of any Note (including payments
pursuant to Article III or Section 4.20 or Section 4.21 hereof) and any payment
or recovery on any claim (whether for rescission or damages and whether based on
contract, tort, duty imposed by law, or any other theory of liability) relating
to or arising out of the offer, sale or purchase of any Note provided that any
such payment, other payment or recovery (i) not prohibited pursuant to this
Article XI at the time actually made shall not be subject to any recovery by any
holder of Senior Indebtedness or Representative therefor or other Person
pursuant to this Article XI at any time thereafter (unless such payment is a
voluntary prepayment on the Notes made at the time a Default exists under this
Indenture) and (ii) made by or from any Person other than the Company shall not
be subject to any recovery by any holder of Senior Indebtedness or
Representative therefor or other Person pursuant to this Article XI at any time
85
thereafter except to the extent such Person recovers any such amount paid from
the Company, whether pursuant to rights of indemnity, rescission or otherwise.
ARTICLE XII
MISCELLANEOUS
SECTION 12.1. TIA CONTROLS.
If any provision of this Indenture limits, qualifies, or
conflicts with the duties imposed by operation of the TIA, the imposed duties,
whether or not this Indenture has been qualified under the TIA, shall control.
SECTION 12.2. NOTICES.
Any notices or other communications to the Company or the
Trustee required or permitted hereunder shall be in writing, and shall be
sufficiently given if made by hand delivery, by telex, by telecopier, by first
class mail postage pre-paid or registered or certified mail, postage prepaid,
return receipt requested, addressed as follows:
if to the Company:
Neenah Foundry Company
0000 Xxxxxx Xxxxxx
X.X. Xxx 000
Xxxxxx, Xxxxxxxxx 00000
Attention: Xxxx X. LaChey
Telecopy: (000) 000-0000
with a copy to:
Xxxxxxxx & Xxxxx
000 Xxxx 00xx Xxxxxx
Xxx Xxxx, XX 00000
Attention: Xxxxxx X. Xxxxx, Esq.
Telecopy: (000) 000-0000
if to the Trustee:
The Bank of New York
000 Xxxxxxx Xxxxxx, 0xx Xxxxx Xxxx
Xxx Xxxx, XX 00000
Attention: Corporate Trust Administration
Telecopy: (000) 000-0000
86
Any party by notice to each other party may designate
additional or different addresses as shall be furnished in writing by such
party. Any notice or communication to any party shall be deemed to have been
given or made as of the date so delivered, if personally delivered; when
answered back, if telexed; when receipt is acknowledged, if telecopied; and five
Business Days after mailing if sent by registered or certified mail, postage
prepaid (except that a notice of change of address shall not be deemed to have
been given until actually received by the addressee).
Any notice or communication mailed to a Noteholder shall be
mailed to him or her by first class mail or other equivalent means at his or her
address as it appears on the registration books of the Registrar and shall be
sufficiently given to him or her if so mailed within the time prescribed.
Failure to mail a notice or communication to a Noteholder or
any defect in it shall not affect its sufficiency with respect to other
Noteholders. If a notice or communication is mailed in the manner provided
above, it is duly given, whether or not the addressee receives it.
SECTION 12.3. COMMUNICATIONS BY HOLDERS WITH OTHER HOLDERS.
Noteholders may communicate pursuant to TIA Section 312(b)
with other Noteholders with respect to their rights under this Indenture or the
Notes. The Company, the Trustee, the Registrar and any other Person shall have
the protection of TIA Section 312(c).
SECTION 12.4. 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 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 fully
complied with; and
(2) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been fully
complied with.
SECTION 12.5. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(1) a statement that the Person making such certificate or opinion
has read such covenant or condition;
87
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based;
(3) a statement that, in the opinion of such Person, he or she has
made such examination or investigation as is necessary to
enable him or her to express an informed opinion as to whether
or not such covenant or condition has been fully complied
with; and
(4) a statement as to whether or not, in the opinion of each such
Person, such condition or covenant has been fully 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.
Any certificate, statement or opinion of an officer of the
Company may be based, insofar as it relates to legal matters, upon a certificate
or opinion of or representations by counsel, unless such officer knows that the
certificate or opinion or representations with respect to the matters upon which
his certificate, statement or opinion may be based as aforesaid are erroneous,
or in the exercise of reasonable care should know that the same are erroneous.
Any certificate, statement or opinion of counsel may be based, insofar as it
relates to factual matters and information which is in the possession of the
Company, upon the certificate, statement or opinion of or representations by an
officer or officers of the Company, unless such counsel knows that the
certificate, statement or opinion or representations with respect to the matters
upon which his certificate, statement or opinion may be based as aforesaid are
erroneous.
Any certificate, statement or opinion of an officer of the
Company or of counsel may be based, insofar as it relates to accounting matters,
upon a certificate or opinion of or representations by an accountant or firm of
accountants in the employ of the Company unless such officer or counsel, as the
case may be, knows that the certificate or opinion or representations with
respect to the accounting matters upon which his certificate, statement or
opinion may be based as aforesaid are erroneous.
Any certificate or opinion of any independent firm of public
accountants filed with the Trustee shall contain a statement that such firm is
independent.
SECTION 12.6. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR.
The Trustee may make reasonable rules for action by or at a
meeting of Noteholders. The Paying Agent or Registrar may make reasonable rules
for its functions.
SECTION 12.7. BUSINESS DAY.
If a payment date is other than a Business Day at such place,
payment may be made at such place on the next succeeding Business Day, and no
interest shall accrue for the intervening period.
88
SECTION 12.8. GOVERNING LAW.
THIS INDENTURE, THE NOTES, THE SUBSIDIARY GUARANTEES AND THE
COLLATERAL DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND
PERFORMED WITHIN THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICT OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF
ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.
SECTION 12.9. NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.
This Indenture may not be used to interpret another indenture,
loan or debt agreement of the Company or any of its Subsidiaries. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.
SECTION 12.10. NO RECOURSE AGAINST OTHERS.
No direct or indirect partner, employee, stockholder, director
or officer, as such, past, present or future of the Company or any successor
corporation, shall have any personal liability in respect of the obligations of
the Company under the Notes or this Indenture by reason of his, her or its
status as such partner, stockholder, employee, director or officer. Each
Noteholder by accepting a Note waives and releases all such liability. Such
waiver and release are part of the consideration for the issuance of the Notes.
SECTION 12.11. SUCCESSORS.
All agreements of the Company in this Indenture and the Notes
shall bind its successor. All agreements of the Trustee in this Indenture shall
bind its successor.
SECTION 12.12. DUPLICATE ORIGINALS.
All parties may sign any number of copies or counterparts of
this Indenture. Each signed copy or counterpart shall be an original, but all of
them together shall represent the same agreement.
SECTION 12.13. SEVERABILITY.
In case any one or more of the provisions in this Indenture or
in the Notes shall be held invalid, illegal or unenforceable, in any respect for
any reason, the validity, legality and enforceability of any such provision in
every other respect and of the remaining provisions shall not in any way be
affected or impaired thereby, it being intended that all of the provisions
hereof shall be enforceable to the full extent permitted by law.
89
SECTION 12.14. TABLE OF CONTENTS, HEADINGS, ETC.
The Table of Contents, Cross-Reference Table and headings of
the Articles and the 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 12.15. QUALIFICATION OF INDENTURE.
The Company shall qualify this Indenture under the TIA and
shall pay all costs and expenses (including attorneys' fees for the Company and
the Trustee) incurred in connection therewith, including, but not limited to,
costs and expenses of qualification of this Indenture and the Notes and printing
this Indenture and the Notes. The Trustee shall be entitled to receive from the
Company any such Officers' Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the TIA.
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SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed as of the date first above written.
NEENAH FOUNDRY COMPANY
By: _______________________________________________
Name:
Title:
ADVANCED CAST PRODUCTS, INC.
By: _______________________________________________
Name:
Title:
XXXXXX CORPORATION
By: _______________________________________________
Name:
Title:
XXXXXX CORPORATION, WARSAW MANUFACTURING FACILITY
By: _______________________________________________
Name:
Title:
XXXXXX CORPORATION, STRYKER MACHINING FACILITY
By: _______________________________________________
Name:
Title:
91
XXXXXX FOUNDRY, INC.
By: _______________________________________________
Name:
Title:
XXXXX INDUSTRIES, INC.
By: _______________________________________________
Name:
Title:
XXXXXX FORGE CORPORATION
By: _______________________________________________
Name:
Title:
A&M SPECIALTIES, INC.
By: _______________________________________________
Name:
Title:
NEENAH TRANSPORT, INC.
By: _______________________________________________
Name:
Title:
THE BANK OF NEW YORK
By: _______________________________________________
Name:
Title:
92
EXHIBIT A
FORM OF NOTE
(FACE OF NOTE)
NEENAH FOUNDRY COMPANY
13% SENIOR SUBORDINATED NOTE
DUE 2013
No. CUSIP No. ____________
$___________
Neenah Foundry Company, a Wisconsin corporation (hereinafter
called the "Company," which term includes any successors under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
Co., Inc., or registered assigns, the principal sum of one hundred million
dollars, on September 30, 2013.
Interest Payment Dates: January 1 and July 1, commencing
January 1, 2003.
Record Dates: December 15 and June 15.
Reference is made to the further provisions of this Note on
the reverse side, 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 Instrument to
be duly executed under its corporate seal.
NEENAH FOUNDRY COMPANY
By: _______________________________________________
Name:
Title:
Attest: _____________________________
Secretary
A-2
FORM OF TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Notes described in the within-mentioned
Indenture.
THE BANK OF NEW YORK
By ________________________________________________
Authorized Signatory
Dated: , 2003
A-3
(BACK OF NOTE)
NEENAH FOUNDRY COMPANY
13% SENIOR SUBORDINATED NOTE
DUE 2013
["THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE
SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE
INDENTURE, (II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN
PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL
NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE
TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF
THE COMPANY.
UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN
DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY
THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY
THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS NOTE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 XXXXX
XXXXXX, XXX XXXX, XXX XXXX) ("XXX"), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO, OR IN SUCH OTHER NAME AS MAY BE
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS
MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH
AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN."](1)
----------------
(1) These paragraphs should only be added if the Note is issued in global form.
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THIS NOTE WAS ISSUED AS PART OF AN INVESTMENT UNIT. THIS NOTE WAS
ISSUED WITH "ORIGINAL ISSUE DISCOUNT" FOR U.S. FEDERAL INCOME TAX
PURPOSES. WITH RESPECT TO THIS INVESTMENT UNIT WITH A PRINCIPAL AMOUNT
OF $1,000, THE ISSUE PRICE IS [_____]. [____] OF SUCH ISSUE PRICE WAS
ALLOCATED TO THE NOTE PORTION. THE TOTAL AMOUNT OF ORIGINAL ISSUE
DISCOUNT IS [___]. THE ISSUE DATE OF THIS SECURITY IS , 2003. THE YIELD
TO MATURITY OF THIS SECURITY ON THE ISSUE DATE IS [____]%, COMPOUNDED
SEMIANNUALLY.
1. Interest.
Neenah Foundry Company, a Wisconsin corporation (hereinafter
called the "Company," which term includes any successors under the Indenture
hereinafter referred to), promises to pay interest on the principal amount of
this Note at the rate of 13% per annum. To the extent it is lawful, the Company
promises to pay interest on any interest payment due but unpaid at the same rate
of interest borne by the Notes.
The Company will pay interest semi-annually on January 1 and
July 1 of each year (each, an "Interest Payment Date"), commencing January 1,
2004. Interest on the Notes will accrue from the most recent date to which
interest has been paid or, if no interest has been paid on the Notes, from
September 30, 2003. Interest will be computed on the basis of a 360-day year
consisting of twelve 30-day months.
Notwithstanding the foregoing, on or before any Interest
Payment Date, the Company may defer the payment of a portion of the interest due
on such Interest Payment Date of up to 8% (the "Deferred Interest Payment"). If
the Company elects to defer the payment of the Deferred Interest Payment as
aforesaid, interest at a rate of 13% will accrue on the principal amount of the
Note and on the accrued but unpaid Deferred Interest Payments. The Company may
elect to defer the payment of Deferred Interest Payments on an unlimited number
of occasions; provided, that, all unpaid Deferred Interest Payments shall be
paid on or before the Stated Maturity of this Note.
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 the Record Date immediately preceding the Interest Payment Date. Holders must
surrender Notes to a Paying Agent to collect principal payments. Any such
interest not so punctually paid, and defaulted interest relating thereto, may be
paid to the Persons who are registered Holders at the close of business on a
Special Record Date for the payment of such defaulted interest, as more fully
provided in the Indenture referred to below. Except as provided below, the
Company shall pay principal and interest in such coin or currency of the United
States of America as at the time of payment shall be legal tender for payment of
public and private debts ("U.S. Legal Tender"). The Notes will be payable as to
principal, premium and interest at the office or agency of the Company
maintained for
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such purpose within the Borough of Manhattan, The City and State of New York, or
at the option of the Company, payment of principal, premium and interest may be
made by check mailed to the Holders at their addresses set forth in the registry
of Holders, and provided that payment by wire transfer of immediately available
funds will be required with respect to principal of, premium and interest on
Global Notes.
3. Paying Agent and Registrar.
Initially, The Bank of New York (the "Trustee") will act as
Paying Agent and Registrar. The Company may change any Paying Agent, Registrar
or co-Registrar without notice to the Holders. The Company or any of its
Subsidiaries may, subject to certain exceptions, act as Paying Agent, Registrar
or co-Registrar.
4. Indenture.
The Company issued the Notes under an Indenture, dated as of ,
2003 (the "Indenture"), between the Company, the Subsidiary Guarantors party
thereto and the Trustee. 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, as in effect on the date of the Indenture. The Notes are
subject to all such terms, and Holders of Notes are referred to the Indenture
and said Act for a statement of them. To the extent any provision of this Note
conflicts with the express provisions of the Indenture, the provisions of the
Indenture shall govern. The Notes are general unsecured obligations of the
Company limited in aggregate principal amount to $100,000,000, and may be issued
in one or more series.
5. Redemption.
The Notes may be redeemed in whole or from time to time in
part at any time, at the option of the Company, at the Redemption Prices
(expressed as a percentage of principal amount) set forth below with respect to
the indicated Redemption Date, in each case, plus any accrued but unpaid
interest to, but excluding, the Redemption Date.
If redeemed during
the 12-month period
beginning September 30, Redemption Price
----------------------- ----------------
2003................................................ 103%
2004................................................ 102%
2005................................................ 101%
2006 and thereafter................................. 100%
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6. Notice of Redemption.
Notice of redemption will be sent by first class mail, postage
prepaid, at least 30 days and not more than 60 days prior to the Redemption Date
to the Holder of each Note to be redeemed at such Holder's last address as then
shown upon the registry books of the Registrar. Notes may be redeemed in part in
multiples of $1,000 only.
Except as set forth in the Indenture, from and after any
Redemption Date, if monies for the redemption of the Notes called for redemption
shall have been deposited with the Paying Agent on such Redemption Date and
payment of the Notes called for redemption is not prohibited under Article XI of
the Indenture, the Notes called for redemption will cease to bear interest and
the only right of the Holders of such Notes will be to receive payment of the
Redemption Price, plus any accrued and unpaid interest to, but excluding the
Redemption Date.
7. Denominations; Transfer; Exchange.
The Notes are in registered form, without coupons, in
denominations of $1,000 and integral multiples of $1,000. A Holder may register
the transfer of, or exchange 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 any taxes and fees required by
law or permitted by the Indenture. The Registrar need not register the transfer
of or exchange any Notes selected for redemption.
8. Persons Deemed Owners.
The registered Holder of a Note may be treated as the owner of
it for all purposes.
9. Unclaimed Money.
If money for the payment of principal or interest remains
unclaimed for two years, the Trustee and the Paying Agent(s) will pay the money
back to the Company at its written request. After that, all liability of the
Trustee and such Paying Agent(s) with respect to such money shall cease.
10. Amendment; Supplement; Waiver.
Subject to certain exceptions, the Indenture or the Notes may
be amended or supplemented, and any existing Default or Event of Default or
compliance 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 the rights of any Holder of a Note.
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11. Ranking.
Payment of principal, premium and interest on the Notes is
subordinated, in the manner and to the extent set forth in the Indenture, to the
prior payment in full of all Senior Indebtedness.
12. Change of Control.
In the event of a Change of Control of the Company, each
Holder of Notes will have the right to require the Company to repurchase all or
any part (equal to $1,000 or an integral multiple thereof) of such Holder's
Notes, at an offer price in cash equal to 101% of the aggregate principal amount
thereof, plus accrued and unpaid interest thereon to the Change of Control
Payment Date.
13. Asset Sales.
In the event of certain Asset Sales, the Company may be
required to make an Asset Sale Offer to purchase the maximum principal amount of
Notes that may be purchased out of Excess Proceeds, at an offer price in cash
equal to 100% of the principal amount of the Notes, plus accrued and unpaid
interest thereon to the date of purchase.
14. Successors.
When a successor assumes all the obligations of its
predecessor under the Notes and the Indenture, the predecessor will be released
from those obligations.
15. Restrictive Covenants.
The Indenture imposes certain limitations on, among other
things, the ability of the Company to consolidate or merge with or into, or
sell, assign, transfer, lease, convey or otherwise dispose of all or
substantially all of its properties or assets, the ability of the Company or its
Restricted Subsidiaries to dispose of certain assets, to declare or pay
dividends or make certain other distributions and payments, to make certain
investments or purchase, redeem, or otherwise acquire or retire for value Equity
Interests, to incur additional Indebtedness or incur Liens and to enter into
certain transactions with Affiliates, all subject to certain limitations
described in the Indenture.
16. Defeasance.
The Indenture contains provisions that permit the Company to
defease the Notes (and satisfy generally its Obligations under the Indenture or
with respect to certain covenants contained therein) under certain circumstances
subject to the conditions specified therein.
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17. Defaults and Remedies.
If an Event of Default occurs and is continuing (other than an
Event of Default relating to certain events of bankruptcy, insolvency or
reorganization), then either the Trustee or the Holders of 25% in aggregate
principal amount of Notes then outstanding may declare all the Notes to be due
and payable immediately; provided, however, that after such acceleration, but
before a judgment or decree based on acceleration, the Holders of a majority in
aggregate principal amount of outstanding Notes may, under certain
circumstances, rescind and annul such acceleration if all Events of Default,
other than non-payment of accelerated principal, have been cured or waived as
provided in the Indenture. Holders of Notes may not enforce the Indenture or the
Notes except as provided in the Indenture. Subject to certain limitations,
Holders of a majority in aggregate principal amount of the Notes then
outstanding may direct the Trustee in its exercise of any trust or power. The
Trustee may withhold from Holders of Notes notice of any continuing Default or
Event of Default (except a Default in payment of principal or interest), if it
determines that withholding notice is in their interest.
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 or its Affiliates, and may otherwise deal with the Company or
its Affiliates as if it were not the Trustee.
19. No Recourse Against Others.
No stockholder, director, officer or employee, as such, past,
present or future, of the Company or any successor corporation shall have any
personal liability in respect of the obligations of the Company under the Notes
or the Indenture by reason of his, her or its status as such stockholder,
director, officer or employee. Each Holder of a Note by accepting a Note waives
and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.
20. Authentication.
This Note shall not be valid until the Trustee or
authenticating agent signs the certificate of authentication on the other side
of this Note.
21. 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).
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22. CUSIP Numbers.
Pursuant to a recommendation promulgated by the Committee on
Uniform Note Identification Procedures, the Company will cause CUSIP numbers to
be printed on the Notes as a convenience to the Holders of the Notes. 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.
23. Additional Rights of Holders of Notes.
The Company will furnish to any Holder upon written request
and without charge a copy of the Indenture. Request may be made to:
Neenah Foundry Company
0000 Xxxxxx Xxxxxx
X.X. Xxx 000
Xxxxxx, Xxxxxxxxx 00000
Attention: Xxxx X. LaChey
24. Governing Law.
This Note and the Indenture shall be governed by and construed
in accordance with the laws of the State of New York, as applied to contracts
made and performed entirely within the State of New York, without regard to
principles of conflicts of law.
25. Agreement to Terms.
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.
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FORM OF ASSIGNMENT
I or we assign this Note to
________________________________________________________________________________
________________________________________________________________________________
________________________________________________________________________________
(Print or type name, address and zip code of assignee)
Please insert Social Note or other identifying 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.
Dated: __________________ Signed: _______________________________
________________________________________________________________________________
(Sign exactly as name appears on
the other side of this Note)
Signature Guarantee: _________________________
NOTICE: Your Signature must be guaranteed by an Institution which is a member of
one of the following recognized signature Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program; (ii) The New York Stock Exchange Medallion
Program; (iii) The Stock Exchange Medallion Program; or (iv) any other guarantee
program acceptable to the Trustee.
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FORM OF OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Note purchased by the
Company pursuant to Section 4.20 or Section 4.21 of the Indenture, check the
appropriate box:
Section 4.20 { } Section 4.21 { }
If you want to have only part of this Note purchased by the
Company pursuant to Section 4.20 or Section 4.21 of the Indenture, state the
amount (in integral multiples of $1,000):
$_________________________
Date: __________________________
Signature: ____________________________________________________
(Sign exactly as your name appears on the other side of this Note)
Signature Guarantee: _______________________________________
NOTICE: Your Signature must be guaranteed by an Institution which is a member of
one of the following recognized signature Guarantee Programs: (i) The Securities
Transfer Agent Medallion Program; (ii) The New York Stock Exchange Medallion
Program; (iii) The Stock Exchange Medallion Program; or (iv) any other guarantee
program acceptable to the Trustee.
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SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE(2)
The following exchanges of a part of this Global Note for a
Definitive Note, or exchange of a Definitive Note for an interest in this Global
Note, have been made:
Principal Amount
Amount of Amount of of this Global Note Signature of
decrease in increase in following such authorized officer
Principal Amount Principal Amount decrease (or of Trustee or Notes
Date of Exchange of this Global Note of this Global Note increase) Custodian
-------------------------------------------------------------------------------------------------------------
--------------------------
(2) This Schedule should only be added if the Note is issued in global form.
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EXHIBIT B
GUARANTEE
For value received, each of the undersigned hereby
unconditionally guarantees to the Holders of Notes the payments of principal of,
premium, if any, and interest on such Notes in the amounts and at the time when
due and interest on the overdue principal, premium, if any, and interest, if
any, of such Notes, if lawful, and the payment or performance of all other
obligations of the Company under the Indenture and the Notes, to the Holders of
the Notes and to the Trustee, all in accordance with and subject to the terms
and limitations of the Notes, Article X of the Indenture and this Guarantee.
This Guarantee will become effective in accordance with Article X of the
Indenture and its terms shall be evidenced therein. The validity and
enforceability of any Guarantee shall not be affected by the fact that it is not
affixed to any particular Note.
The obligations of the undersigned to the Holders of Notes and
to the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth in Article X of the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee and all of the other provisions
of the Indenture to which this Guarantee relates. The Indebtedness evidenced by
this Guarantee is subordinate and subject in right of payment, to the extent and
in the manner provided in the Indenture, and this Guarantee is issued subject to
such provisions. Each Holder of a Note, by accepting the same, (a) agrees to and
shall be bound by such provisions, (b) authorizes and directs the Trustee, on
behalf of such Holder, to take such action as may be necessary to appropriate to
effectuate the subordination as provided in the Indenture and (c) appoints the
Trustee attorney-in-fact of such Holder for such purpose; provided, however,
that such subordination provisions shall cease to affect amounts deposited in
accordance with the defeasance provisions of the Indenture upon the terms and
conditions set forth therein.
This Guarantee is subject to release upon the terms set forth
in the Indenture.
Advanced Cast Products, Inc.
Xxxxxx Corporation,
Xxxxxx Corporation, Warsaw Manufacturing Facility,
Xxxxxx Corporation, Stryker Machining Facility,
Xxxxxx Foundry, Inc.
Xxxxx Industries, Inc.
Xxxxxx Forge Corporation
A&M Specialties, Inc.
Neenah Transport, Inc.
By: __________________________________________
Name:
Title:
B-1
