XXXXXX GROUP INTERNATIONAL, INC., as Issuer
THE XXXXXX GROUP INC., as Guarantor
and
STATE STREET BANK AND TRUST COMPANY, as Trustee
INDENTURE
Dated as of May 28, 1998
$450,000,000
Senior Guaranteed Notes
TABLE OF CONTENTS
PAGE
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ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 1.01. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
SECTION 1.02. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT . . . . . . . . . 21
SECTION 1.03. RULES OF CONSTRUCTION . . . . . . . . . . . . . . . . . . . . . . . 21
ARTICLE 2
THE SENIOR NOTES
SECTION 2.01. ISSUANCE OF SENIOR NOTES. . . . . . . . . . . . . . . . . . . . . . 22
SECTION 2.02. RESTRICTIVE LEGENDS . . . . . . . . . . . . . . . . . . . . . . . . 23
SECTION 2.03. EXECUTION AND AUTHENTICATION. . . . . . . . . . . . . . . . . . . . 25
SECTION 2.04. REGISTRAR AND PAYING AGENT. . . . . . . . . . . . . . . . . . . . . 25
SECTION 2.05. PAYING AGENT TO HOLD MONEY IN TRUST . . . . . . . . . . . . . . . . 26
SECTION 2.06. NOTEHOLDER LISTS. . . . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 2.07. TRANSFER AND EXCHANGE . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 2.08. REPLACEMENT NOTES . . . . . . . . . . . . . . . . . . . . . . . . . 27
SECTION 2.09. BOOK-ENTRY PROVISIONS FOR GLOBAL NOTE . . . . . . . . . . . . . . . 27
SECTION 2.10. SPECIAL TRANSFER PROVISIONS . . . . . . . . . . . . . . . . . . . . 28
SECTION 2.11. FORM OF CERTIFICATES TO BE DELIVERED. . . . . . . . . . . . . . . . 30
SECTION 2.12. OUTSTANDING SENIOR NOTES. . . . . . . . . . . . . . . . . . . . . . 32
SECTION 2.13. TREASURY NOTES. . . . . . . . . . . . . . . . . . . . . . . . . . . 32
SECTION 2.14. TEMPORARY NOTES . . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 2.15. CANCELLATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 2.16. DEFAULTED INTEREST. . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 2.17. CUSIP NUMBER. . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
SECTION 2.18. DEPOSIT OF MONEYS . . . . . . . . . . . . . . . . . . . . . . . . . 34
ARTICLE 3
REDEMPTION OF SENIOR NOTES
SECTION 3.01. NOTICES TO THE TRUSTEE. . . . . . . . . . . . . . . . . . . . . . . 34
SECTION 3.02. SELECTION OF SENIOR NOTES TO BE REDEEMED. . . . . . . . . . . . . . 34
SECTION 3.03. NOTICE OF REDEMPTION. . . . . . . . . . . . . . . . . . . . . . . . 35
SECTION 3.04. EFFECT OF NOTICE OF REDEMPTION. . . . . . . . . . . . . . . . . . . 36
SECTION 3.05. DEPOSIT OF REDEMPTION PRICE . . . . . . . . . . . . . . . . . . . . 36
SECTION 3.06. SENIOR NOTES REDEEMED OR PURCHASED IN PART. . . . . . . . . . . . . 36
i
ARTICLE 4
COVENANTS
SECTION 4.01. PAYMENT OF SENIOR NOTES . . . . . . . . . . . . . . . . . . . . . . 37
SECTION 4.02. MAINTENANCE OF OFFICE OR AGENCY . . . . . . . . . . . . . . . . . . 37
SECTION 4.03. CORPORATE EXISTENCE . . . . . . . . . . . . . . . . . . . . . . . . 37
SECTION 4.04. PAYMENT OF TAXES AND OTHER CLAIMS . . . . . . . . . . . . . . . . . 38
SECTION 4.05. MAINTENANCE OF PROPERTIES; INSURANCE; BOOKS AND
RECORDS; COMPLIANCE WITH LAW. . . . . . . . . . . . . . . . . . . . 38
SECTION 4.06. COMPLIANCE CERTIFICATE. . . . . . . . . . . . . . . . . . . . . . . 39
SECTION 4.07. LIMITATION ON INDEBTEDNESS. . . . . . . . . . . . . . . . . . . . . 40
SECTION 4.08. LIMITATION ON RESTRICTED PAYMENTS . . . . . . . . . . . . . . . . . 40
SECTION 4.09. LIMITATION ON ISSUANCES AND SALE OF PREFERRED
STOCK BY RESTRICTED SUBSIDIARIES. . . . . . . . . . . . . . . . . . 43
SECTION 4.10. LIMITATION ON LIENS . . . . . . . . . . . . . . . . . . . . . . . . 43
SECTION 4.11. CHANGE OF CONTROL . . . . . . . . . . . . . . . . . . . . . . . . . 43
SECTION 4.12. DISPOSITION OF PROCEEDS OF ASSET SALES. . . . . . . . . . . . . . . 46
SECTION 4.13. LIMITATION ON TRANSACTIONS WITH INTERESTED PERSONS. . . . . . . . . 48
SECTION 4.14. LIMITATION ON DIVIDENDS AND OTHER PAYMENT
RESTRICTIONS AFFECTING SUBSIDIARIES . . . . . . . . . . . . . . . . 49
SECTION 4.15. LIMITATIONS ON SALE-LEASEBACK TRANSACTIONS. . . . . . . . . . . . . 50
SECTION 4.16. LIMITATION ON APPLICABILITY OF CERTAIN COVENANTS. . . . . . . . . . 50
SECTION 4.17. COMMISSION REPORTS. . . . . . . . . . . . . . . . . . . . . . . . . 51
SECTION 4.18. RULE 144a INFORMATION REQUIREMENT . . . . . . . . . . . . . . . . . 51
SECTION 4.19. WAIVER OF STAY, EXTENSION OR USURY LAWS . . . . . . . . . . . . . . 51
ARTICLE 5
SUCCESSOR CORPORATION
SECTION 5.01. WHEN LGII MAY MERGE, ETC. . . . . . . . . . . . . . . . . . . . . . 52
SECTION 5.02. SUCCESSOR SUBSTITUTED . . . . . . . . . . . . . . . . . . . . . . . 53
ARTICLE 6
REMEDIES
SECTION 6.01. EVENTS OF DEFAULT . . . . . . . . . . . . . . . . . . . . . . . . . 53
SECTION 6.02. ACCELERATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
SECTION 6.03. OTHER REMEDIES. . . . . . . . . . . . . . . . . . . . . . . . . . . 56
SECTION 6.04. WAIVER OF PAST DEFAULTS . . . . . . . . . . . . . . . . . . . . . . 57
SECTION 6.05. CONTROL BY MAJORITY . . . . . . . . . . . . . . . . . . . . . . . . 57
SECTION 6.06. LIMITATION ON SUITS . . . . . . . . . . . . . . . . . . . . . . . . 57
SECTION 6.07. RIGHT OF HOLDERS TO RECEIVE PAYMENT . . . . . . . . . . . . . . . . 58
SECTION 6.08. COLLECTION SUIT BY TRUSTEE. . . . . . . . . . . . . . . . . . . . . 58
SECTION 6.09. TRUSTEE MAY FILE PROOFS OF CLAIMS . . . . . . . . . . . . . . . . . 58
ii
SECTION 6.10. PRIORITIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 6.11. UNDERTAKING FOR COSTS . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 6.12. RESTORATION OF RIGHTS AND REMEDIES. . . . . . . . . . . . . . . . . 59
ARTICLE 7
TRUSTEE
SECTION 7.01. DUTIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
SECTION 7.02. RIGHTS OF TRUSTEE . . . . . . . . . . . . . . . . . . . . . . . . . 61
SECTION 7.03. INDIVIDUAL RIGHTS OF TRUSTEE. . . . . . . . . . . . . . . . . . . . 62
SECTION 7.04. TRUSTEE'S DISCLAIMER. . . . . . . . . . . . . . . . . . . . . . . . 62
SECTION 7.05. NOTICE OF DEFAULT . . . . . . . . . . . . . . . . . . . . . . . . . 62
SECTION 7.06. MONEY HELD IN TRUST . . . . . . . . . . . . . . . . . . . . . . . . 62
SECTION 7.07. REPORTS BY TRUSTEE TO HOLDERS . . . . . . . . . . . . . . . . . . . 62
SECTION 7.08. COMPENSATION AND INDEMNITY. . . . . . . . . . . . . . . . . . . . . 63
SECTION 7.09. REPLACEMENT OF TRUSTEE. . . . . . . . . . . . . . . . . . . . . . . 64
SECTION 7.10. SUCCESSOR TRUSTEE BY MERGER, ETC. . . . . . . . . . . . . . . . . . 65
SECTION 7.11. ELIGIBILITY; DISQUALIFICATION . . . . . . . . . . . . . . . . . . . 65
SECTION 7.12. PREFERENTIAL COLLECTION OF CLAIMS AGAINST LGII. . . . . . . . . . . 65
ARTICLE 8
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 8.01. TERMINATION OF THE OBLIGATION OF LGII AND THEGUARANTOR. . . . . . . 65
SECTION 8.02. LEGAL DEFEASANCE AND COVENANT DEFEASANCE. . . . . . . . . . . . . . 67
SECTION 8.03. APPLICATION OF TRUST MONEY. . . . . . . . . . . . . . . . . . . . . 70
SECTION 8.04. REPAYMENT TO LGII OR GUARANTOR. . . . . . . . . . . . . . . . . . . 71
SECTION 8.05. REINSTATEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
ARTICLE 9
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. WITHOUT CONSENT OF HOLDERS. . . . . . . . . . . . . . . . . . . . . 71
SECTION 9.02. WITH CONSENT OF HOLDERS . . . . . . . . . . . . . . . . . . . . . . 72
SECTION 9.03. COMPLIANCE WITH TRUST INDENTURE ACT . . . . . . . . . . . . . . . . 73
SECTION 9.04. REVOCATION AND EFFECT OF CONSENTS . . . . . . . . . . . . . . . . . 73
SECTION 9.05. NOTATION ON OR EXCHANGE OF SENIOR NOTES . . . . . . . . . . . . . . 74
SECTION 9.06. TRUSTEE MAY SIGN AMENDMENTS, ETC. . . . . . . . . . . . . . . . . . 74
ARTICLE 10
GUARANTEE OF SENIOR NOTES
SECTION 10.01. GUARANTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75
SECTION 10.02. EXECUTION AND DELIVERY OF GUARANTEE . . . . . . . . . . . . . . . . 76
iii
SECTION 10.03. INTEREST ACT (CANADA) . . . . . . . . . . . . . . . . . . . . . . . 77
ARTICLE 11
MISCELLANEOUS
SECTION 11.01. TRUST INDENTURE ACT OF 1939 . . . . . . . . . . . . . . . . . . . . 77
SECTION 11.02. NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
SECTION 11.03. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS . . . . . . . . . . . . 78
SECTION 11.04. CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT. . . . . . . . . 78
SECTION 11.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION . . . . . . . . . . . 78
SECTION 11.06. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR . . . . . . . . . . . . . 79
SECTION 11.07. GOVERNING LAW . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
SECTION 11.08. CONSENT TO SERVICE OF PROCESS . . . . . . . . . . . . . . . . . . . 79
SECTION 11.09. NO INTERPRETATION OF OTHER AGREEMENTS . . . . . . . . . . . . . . . 80
SECTION 11.10. NO RECOURSE AGAINST OTHERS. . . . . . . . . . . . . . . . . . . . . 80
SECTION 11.11. SUCCESSORS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
SECTION 11.12. DUPLICATE ORIGINALS . . . . . . . . . . . . . . . . . . . . . . . . 80
SECTION 11.13. SEPARABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
SECTION 11.14. TABLE OF CONTENTS, HEADINGS, ETC. . . . . . . . . . . . . . . . . . 80
SECTION 11.15. BENEFITS OF INDENTURE . . . . . . . . . . . . . . . . . . . . . . . 81
EXHIBIT A Form of Global Note
EXHIBIT B Form of Physical Note
EXHIBIT C Form of Senior Guarantee
iv
INDENTURE, dated as of May 28, 1998, between Xxxxxx Group International,
Inc., a Delaware corporation ("LGII"), The Xxxxxx Group Inc., a body
corporate organized under and governed by the laws of the Province of British
Columbia, Canada (the "GUARANTOR") and State Street Bank and Trust Company, a
Massachusetts chartered trust company, as trustee (the "TRUSTEE").
Each party hereto agrees as follows for the benefit of each other party
and, except as otherwise provided herein, for the equal and ratable benefit
of the Holders of LGII's Guaranteed Senior Notes (the "SENIOR NOTES"),
guaranteed by the Guarantor.
ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 1.01. DEFINITIONS.
"ACQUIRED INDEBTEDNESS" means Indebtedness of a person (a) assumed or
created in connection with an Asset Acquisition from such person or (b)
existing at the time such person becomes a Restricted Subsidiary of any other
person.
"AFFILIATE" means, with respect to any specified person, any other
person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person.
"AGENT MEMBERS" shall have the meaning set forth in Section 2.09.
"ASSET ACQUISITION" means (a) an Investment by the Guarantor or any
Restricted Subsidiary of the Guarantor (including, without limitation, LGII)
in any other person pursuant to which such person shall become a Restricted
Subsidiary of the Guarantor, or shall be merged with or into the Guarantor or
any Restricted Subsidiary of the Guarantor, (b) the acquisition by the
Guarantor or any Restricted Subsidiary of the Guarantor of the assets of any
person (other than a Restricted Subsidiary of the Guarantor) which constitute
all or substantially all of the assets of such person or (c) the acquisition
by the Guarantor or any Restricted Subsidiary of the Guarantor of any
division or line of business of any person (other than a Restricted
Subsidiary of the Guarantor).
"ASSET SALE" means any direct or indirect sale, issuance, conveyance,
transfer, lease or other disposition to any person other than the Guarantor
or a Restricted Subsidiary of the Guarantor (including, without limitation,
LGII), in one or a series of related transactions, of (a) any Capital Stock
of any Restricted Subsidiary of the Guarantor (other than in respect of
directors' qualifying shares or investments by foreign nationals mandated by
applicable law) or of First Capital Life Insurance Company of Louisiana,
National Capitol Life Insurance Company, Security Industrial Insurance
Company, Security Industrial Fire Insurance Company or any successors to such
Subsidiaries; (b) all or substantially all of the properties and assets of
any division or line of business of the Guarantor or any Restricted
Subsidiary of the Guarantor; or (c)
any other properties or assets of the Guarantor or any Restricted Subsidiary
of the Guarantor other than properties and assets sold in the ordinary course
of business. For the purposes of this definition, the term "ASSET SALE"
shall not include (i) any sale, transfer or other disposition of equipment,
tools or other assets (including Capital Stock of any Restricted Subsidiary
of the Guarantor) by the Guarantor or any of its Restricted Subsidiaries in
one or a series of related transactions in respect of which the Guarantor or
such Restricted Subsidiary receives cash or property with an aggregate Fair
Market Value of $2,000,000 or less; and (ii) any sale, issuance, conveyance,
transfer, lease or other disposition of properties or assets that is governed
by the provisions of Article 4
"ASSET SALE OFFER" shall have the meaning set forth in Section 4.12.
"ASSET SALE OFFER PRICE" shall have the meaning set forth in Section
4.12.
"ASSET SALE PURCHASE DATE" shall have the meaning set forth in Section
4.12.
"ATTRIBUTABLE VALUE" means, as to any particular lease under which any
person is at the time liable other than a Capitalized Lease Obligation, and
at any date as of which the amount thereof is to be determined, the total net
amount of rent required to be paid by such person under such lease during the
initial term thereof as determined in accordance with GAAP, discounted from
the last date of such initial term to the date of determination at a rate per
annum equal to the discount rate which would be applicable to a Capitalized
Lease Obligation with a like term in accordance with GAAP. The net amount of
rent required to be paid under any such lease for any such period shall be
the aggregate amount of rent payable by the lessee with respect to such
period after excluding amounts required to be paid on account of insurance,
taxes, assessments, utility, operating and labor costs and similar charges.
In the case of any lease which is terminable by the lessee upon the payment
of a penalty, such net amount shall also include the amount of such penalty,
but no rent shall be considered as required to be paid under such lease
subsequent to the first date upon which it may be so terminated.
"ATTRIBUTABLE VALUE" means, as to a Capitalized Lease Obligation under which
any person is at the time liable and at any date as of which the amount
thereof is to be determined, the capitalized amount thereof that would appear
on the face of a balance sheet of such person in accordance with GAAP.
"BANKRUPTCY LAW" means Title 11 of the United States Code or any similar
law for the relief of debtors.
"BOARD OF DIRECTORS" means the board of directors of LGII or the
Guarantor, as the case may be, or any duly authorized committee of such board.
"BOARD RESOLUTION" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of LGII or the Guarantor, as the case may
be, to have been duly adopted by the Board of Directors of LGII or the
Guarantor, as the case may be, and to be in full force and effect on the date
of such certification, and delivered to the Trustee.
2
"BUSINESS DAY" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in The City of New
York, State of New York or the city in which the Corporate Trust Office is
located, are authorized or obligated by law, regulation or executive order to
close.
"CANADIAN REVOLVER" means CDN $50,000,000 Operating Credit Agreement
dated August 15, 1994, as amended from time to time, among The Xxxxxx Group
Inc., Xxxxxx Group International, Inc. and Royal Bank of Canada.
"CAPITAL STOCK" means, with respect to any person, any and all shares,
interests, participations, rights in or other equivalents (however
designated) of such person's capital stock, and any rights (other than debt
securities convertible into capital stock), warrants or options exchangeable
for or convertible into such capital stock.
"CAPITALIZED LEASE OBLIGATION" means any obligation under a lease of (or
other agreement conveying the right to use) any property (whether real,
personal or mixed) that is required to be classified and accounted for as a
capital lease obligation under GAAP, and the amount of any such obligation at
any date shall be the capitalized amount thereof at such date, determined in
accordance with GAAP.
"CASH EQUIVALENTS" means, at any time, (i) any evidence of Indebtedness
with a maturity of 180 days or less issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality
thereof (provided that the full faith and credit of the United States of
America is pledged in support thereof); (ii) certificates of deposit or
acceptances with a maturity of 180 days or less of any financial institution
that is a member of the Federal Reserve System having combined capital and
surplus and undivided profits of not less than $500,000,000; (iii)
certificates of deposit with a maturity of 180 days or less of any financial
institution that is not organized under the laws of the United States, any
state thereof or the District of Columbia that are rated at least A-1 by S&P
or at least P-1 by Xxxxx'x or at least an equivalent rating category of
another nationally recognized securities rating agency; (iv) repurchase
agreements and reverse repurchase agreements relating to marketable direct
obligations issued or unconditionally guaranteed by the government of the
United States of America or issued by any agency thereof and backed by the
full faith and credit of the United States of America, in each case maturing
within 180 days from the date of acquisition; provided that the terms of such
agreements comply with the guidelines set forth in the Federal Financial
Agreements of Depository Institutions With Securities Dealers and Others, as
adopted by the Comptroller of the Currency on October 31, 1985; and (v) notes
held by the Guarantor or any Restricted Subsidiary (including, without
limitation, LGII) which were obtained by the Guarantor or such Restricted
Subsidiary in connection with Asset Sales (x) in the ordinary course of its
funeral home, cemetery or cremation businesses or (y) which were required to
be made pursuant to applicable federal or state law.
"CHANGE OF CONTROL" means the occurrence on or after the Measurement
Date of any of the following events: (a) any "PERSON" or "GROUP" (as such
terms are used in Sections 13(d) and
3
14(d) of the Exchange Act), excluding Permitted Holders, is or becomes the
"BENEFICIAL OWNER" (as defined in Rules 13d-3 and 13d-5 under the Exchange
Act, except that a person shall be deemed to have "BENEFICIAL OWNERSHIP" of
all securities that such person has the right to acquire, whether such right
is exercisable immediately or only after the passage of time, upon the
happening of an event or otherwise), directly or indirectly, of more than 35%
of the total Voting Stock of the Guarantor or LGII, under circumstances where
the Permitted Holders (i) "BENEFICIALLY OWN" (as so defined) a lower
percentage of the Voting Stock than such other "PERSON" or "GROUP" and (ii)
do not have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the Board of Directors of the
Guarantor or LGII; (b) the Guarantor or LGII consolidates with, or merges
with or into, another person or sells, assigns, conveys, transfers, leases or
otherwise disposes of all or substantially all of its assets to another
person, or another person consolidates with, or merges with or into, the
Guarantor or LGII, in any such event pursuant to a transaction in which the
outstanding Voting Stock of the Guarantor or LGII is converted into or
exchanged for cash, securities or other property, other than any such
transaction where (i) the outstanding Voting Stock of the Guarantor or LGII
is converted into or exchanged for (1) Voting Stock (other than Redeemable
Capital Stock) of the surviving or transferee corporation or (2) cash,
securities and other property in an amount which could then be paid by the
Guarantor or LGII as a Restricted Payment under the provisions hereof, and
(ii) immediately after such transaction no "PERSON" or "GROUP" (as such terms
are used in Sections 13(d) and 14(d) of the Exchange Act), excluding
Permitted Holders, is the "BENEFICIAL OWNER" (as defined in Rules 13d-3 and
13d-5 under the Exchange Act, except that a person shall be deemed to have
"BENEFICIAL OWNERSHIP" of all securities that such person has the right to
acquire, whether such right is exercisable immediately or only after the
passage of time, upon the happening of an event or otherwise), directly or
indirectly, of more than 50% of the total Voting Stock of the surviving or
transferee corporation; (c) at any time during any consecutive two-year
period, individuals who at the beginning of such period constituted the Board
of Directors of the Guarantor or LGII (together with any new directors whose
election by such Board of Directors or whose nomination for election by the
shareholders or stockholders of the Guarantor or LGII was approved by a vote
of 66-2/3% of the directors then still in office who were either directors at
the beginning of such period or whose election or nomination for election was
previously so approved) cease for any reason (including the failure of such
individuals to be elected in a proxy contest involving a solicitation of
proxies) to constitute a majority of the Board of Directors of the Guarantor
or LGII then in office; or (d) the Guarantor or LGII is liquidated or
dissolved or adopts a plan of liquidation other than a liquidation of LGII
into the Guarantor.
"CHANGE OF CONTROL OFFER" shall have the meaning set forth in Section
4.11.
"CHANGE OF CONTROL PURCHASE DATE" shall have the meaning set forth in
Section 4.11.
"COLLATERAL AGREEMENT" means the Collateral Trust Agreement, dated as of
May 15, 1996, among Bankers Trust Company, as trustee, the Guarantor, LGII
and various other Subsidiaries, as amended or supplemented from time to time.
4
"COMMISSION" means the Securities and Exchange Commission, as from time
to time constituted, or if at any time after the execution of the Indenture
such Commission is not existing and performing the applicable duties now
assigned to it, then the body or bodies performing such duties at such time.
"COMMON STOCK" means, with respect to any person, any and all shares,
interests or other participations in, and other equivalents (however
designated and whether voting or nonvoting) of, such person's common stock,
whether outstanding at the Issue Date or issued after the Issue Date, and
includes, without limitation, all series and classes of such common stock.
"CONSOLIDATED CASH FLOW AVAILABLE FOR FIXED CHARGES" means, with respect
to any person for any period, (A) the sum of, without duplication, the
amounts for such period, taken as a single accounting period, of (a)
Consolidated Net Income, (b) depreciation, depletion, amortization and other
non-cash charges for such period, (c) Consolidated Interest Expense and (d)
Consolidated Income Tax Expense LESS (B) any non-cash items increasing
Consolidated Net Income for such period.
"CONSOLIDATED FIXED CHARGE COVERAGE RATIO" means, with respect to any
person, the ratio of the aggregate amount of Consolidated Cash Flow Available
for Fixed Charges of such person for the full fiscal quarter immediately
preceding the date of the transaction (the "TRANSACTION DATE") giving rise to
the need to calculate the Consolidated Fixed Charge Coverage Ratio (such full
fiscal quarter period being referred to herein as the "PRIOR QUARTER") to the
aggregate amount of Consolidated Fixed Charges of such person for the Prior
Quarter. In addition to and without limitation of the foregoing, for
purposes of this definition, "CONSOLIDATED CASH FLOW AVAILABLE FOR FIXED
CHARGES" and "CONSOLIDATED FIXED CHARGES" shall be calculated after giving
effect on a PRO FORMA basis for the period of such calculation to, without
duplication, (a) the incurrence of any Indebtedness of such person or any of
its Restricted Subsidiaries (and the application of the net proceeds thereof)
during the period commencing on the first day of the Prior Quarter to and
including the Transaction Date (the "REFERENCE PERIOD"), including, without
limitation, the incurrence of the Indebtedness giving rise to the need to
make such calculation (and the application of the net proceeds thereof), as
if such incurrence (and application) occurred on the first day of the
Reference Period, and (b) any Material Asset Sales or Material Asset
Acquisitions (including, without limitation, any Material Asset Acquisition
giving rise to the need to make such calculation as a result of such person
or one of its Restricted Subsidiaries (including any person who becomes a
Restricted Subsidiary as a result of the Material Asset Acquisition)
incurring, assuming or otherwise being liable for Acquired Indebtedness)
occurring during the Reference Period, as if such Material Asset Sale or
Material Asset Acquisition occurred on the first day of the Reference Period.
Furthermore, in calculating "CONSOLIDATED FIXED CHARGES" for purposes of
determining the denominator (but not the numerator) of this "CONSOLIDATED
FIXED CHARGE COVERAGE RATIO," (i) interest on outstanding Indebtedness
determined on a fluctuating basis as at the Transaction Date and which will
continue to be so determined thereafter shall be deemed to have accrued at a
fixed rate PER ANNUM equal to the rate of interest on such Indebtedness in
effect on the Transaction Date; and (ii) if interest on any Indebtedness
actually incurred on the Transaction Date may optionally be determined at an
5
interest rate based upon a factor of a prime or similar rate, a eurocurrency
interbank offered rate, or other rates, then the interest rate in effect on
the Transaction Date will be deemed to have been in effect during the
Reference Period. If such person or any of its Restricted Subsidiaries
directly or indirectly guarantees Indebtedness of a third person, the above
clause shall give effect to the incurrence of such guaranteed Indebtedness as
if such person or such Restricted Subsidiary had directly incurred or
otherwise assumed such guaranteed Indebtedness. For purposes of this
calculation, a Material Asset Acquisition is an Asset Acquisition which is
deemed by such person to be material for such purposes or which has a
purchase price of $30,000,000 or more and a Material Asset Sale is one or
more Asset Sales which relate to assets with an aggregate value of more than
$30,000,000.
"CONSOLIDATED FIXED CHARGES" means, with respect to any person for any
period, the sum of, without duplication, the amounts for such period of (i)
Consolidated Interest Expense and (ii) the product of (a) the aggregate
amount of dividends and other distributions paid or accrued during such
period in respect of Preferred Stock and Redeemable Capital Stock of such
person and its Restricted Subsidiaries on a consolidated basis and (b) a
multiplier, the numerator of which is one and the denominator of which is one
minus the then current combined federal, state and local statutory tax rate
of such person, expressed as a decimal; PROVIDED, HOWEVER, that the
multiplier in clause (b) shall be one if such dividend or other distribution
is fully tax deductible.
"CONSOLIDATED INCOME TAX EXPENSE" means, with respect to any person for
any period, the provision for federal, state, local and foreign income taxes
of such person and its Restricted Subsidiaries for such period as determined
on a consolidated basis in accordance with GAAP.
"CONSOLIDATED INTEREST EXPENSE" means, with respect to any person for
any period, without duplication, the sum of (i) the interest expense of such
person and its Restricted Subsidiaries for such period as determined on a
consolidated basis in accordance with GAAP, including, without limitation,
(a) any amorti zation of debt discount, (b) the net cost under Interest Rate
Protection Obligations, (c) the interest portion of any deferred payment
obligation, (d) all commissions, discounts and other fees and charges owed
with respect to letters of credit and bankers' acceptance financing and (e)
all accrued interest and (ii) the interest component of Capitalized Lease
Obligations paid, accrued and/or scheduled to be paid or accrued by such
person and its Restricted Subsidiaries during such period as determined on a
consolidated basis in accordance with GAAP.
"CONSOLIDATED NET INCOME" means, with respect to any person, for any
period, the consolidated net income (or loss) of such person and its
Restricted Subsidiaries for such period as determined in accordance with
GAAP, adjusted, to the extent included in calculating such net income, by
excluding, without duplication, (i) all extraordinary gains or losses, (ii)
the portion of net income (but not losses) of such person and its Restricted
Subsidiaries allocable to minority interests in unconsolidated persons to the
extent that cash dividends or distributions have not actually been received
by such person or one of its Restricted Subsidiaries, (iii) net income (or
loss) of any person combined with such person or one of its Restricted
Subsidiaries on a "POOLING OF INTERESTS" basis attributable to any period
prior to the date of combination, (iv) any gain or loss
6
realized upon the termination of any employee pension benefit plan, on an
after-tax basis, (v) gains or losses in respect of any Asset Sales by such
person or one of its Restricted Subsidiaries and (vi) the net income of any
Restricted Subsidiary of such person to the extent that the declaration of
dividends or similar distributions by that Restricted Subsidiary of that
income is not at the time permitted, directly or indirectly, by operation of
the terms of its charter or any agreement, instrument, judgment, decree,
order, statute, rule or governmental regulation applicable to that Restricted
Subsidiary or its stockholders.
"CONSOLIDATED NET TANGIBLE ASSETS" of the Guarantor as at any date means
the total amount of assets of the Guarantor and its Restricted Subsidiaries,
less applicable reserves, on a consolidated basis as of the end of the fiscal
quarter immediately preceding such date, as determined in accordance with
GAAP, less: (i) Intangible Assets and (ii) appropriate adjustments on account
of minority interests of other persons holding equity investments in
Restricted Subsidiaries, in the case of each of clauses (i) and (ii) above as
reflected on the consolidated balance sheet of the Guarantor and its
Restricted Subsidiaries as at the end of the fiscal quarter immediately
preceding such date.
"CONSOLIDATED NET WORTH" means, with respect to any person at any date,
the consolidated stockholders' equity of such person less the amount of such
stockholders' equity attributable to Redeemable Capital Stock of such person
and its Restricted Subsidiaries, as determined in accordance with GAAP.
"CONSOLIDATION" means, with respect to any person, the consolidation of
the accounts of such person and each of its Subsidiaries if and to the extent
the accounts of such person and each of its Restricted Subsidiaries would
normally be consolidated with those of such person, all in accordance with
GAAP. The term "CONSOLIDATED" shall have a meaning correlative to the
foregoing.
"CONTROL" means, with respect to any specified person, the power to
direct the management and policies of such person, directly or indirectly,
whether through the ownership of Voting Stock, by contract or otherwise; and
the terms "CONTROLLING" and "CONTROLLED" have meanings correlative to the
foregoing.
"CORPORATE TRUST OFFICE" means the corporate trust office of the Trustee
at which at any particular time its corporate trust business shall be
principally administered, which on the date hereof is located in Hartford,
Connecticut.
"COVENANT DEFEASANCE" shall have the meaning set forth in Section 8.02.
"CREDIT AGREEMENTS" means the Revolving Credit Facility, the Canadian
Revolver and the MEIP Facility; in each case as any such instrument may be
amended, supplemented or otherwise modified from time to time, and any
successor or replacement facility.
7
"CURRENCY AGREEMENT" means any foreign exchange contract, currency swap
agreement or other similar agreement or arrangement designed to protect the
Guarantor or any of its Restricted Subsidiaries against fluctuations in
currency values.
"CUSTODIAN" means any receiver, trustee, assignee, liquidator,
sequestrator or similar official under any Bankruptcy Law.
"DEFAULT" means any event that is, or after notice or passage of time or
both would be, an Event of Default.
"DEPOSITARY" means The Depositary Trust Company, its nominees and their
respective successors.
"EVENT OF DEFAULT" has the meaning set forth under Section 6.01 herein.
"EXCESS PROCEEDS" shall have the meaning set forth in Section 4.12.
"EXCHANGE ACT" means the Securities Exchange Act of 1934, as amended.
"EXCHANGE NOTES" refers to any Exchange Notes containing terms
substantially identical to the Initial Notes that are issued and exchanged
for the Initial Notes in accordance with the Exchange Offer, as provided for
in the Registration Rights Agreement; except that (i) such Exchange Notes
shall not contain terms with respect to transfer restrictions and shall be
registered under the Securities Act, (ii) certain provisions relating to an
increase in the stated rate of interest thereon shall be eliminated and (iii)
interest thereon shall accure from the last date on which interest was paid
on the Senior Notes, or if no such interest has been paid, from May 28, 1998.
"EXCHANGE OFFER" means the offer by LGII to the Holders of the Initial
Notes to exchange all of the Initial Notes for Exchange Notes, as provided
for in the Registration Rights Agreement.
"EXCHANGE OFFER REGISTRATION STATEMENT" means the Exchange Offer
Registration Statement as defined in the Registration Rights Agreement.
"FAIR MARKET VALUE" means, with respect to any asset, the price 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, HOWEVER, that
with respect to any transaction which involves an asset or assets in excess
of $5,000,000, such determination shall be evidenced by a Board Resolution of
the Guarantor delivered to the Trustee.
"GAAP" means accounting principles generally accepted in Canada
consistently applied until such time as the Guarantor or LGII shall prepare
their respective books of record in
8
accordance with accounting principles generally accepted in the United States
("U.S. GAAP") at which time and all times thereafter GAAP shall mean U.S.
GAAP consistently applied.
"GLOBAL NOTE" shall have the meaning set forth in Section 2.01.
"GUARANTEE" shall mean the guarantee of the Senior Notes by the
Guarantor created pursuant to Article 10.
"GUARANTEE" means, as applied to any obligation, (i) a guarantee (other
than by endorsement of negotiable instruments for collection in the ordinary
course of business), direct or indirect, in any manner, of any part or all of
such obligation and (ii) an agreement, direct or indirect, contingent or
otherwise, the practical effect of which is to assure in any way the payment
or performance (or payment of damages in the event of non-performance) of all
or any part of such obligation, including, without limiting the foregoing,
the payment of amounts drawn down by letters of credit.
"GUARANTOR" shall mean The Xxxxxx Group Inc., and shall include any
successor replacing such Guarantor pursuant to the provisions hereof, and
thereafter means such successor.
"HOLDER" or "NOTEHOLDER" means the person in whose name a Senior Note is
registered on the Registrar's books.
"INDEBTEDNESS" means, with respect to any person, without duplication,
(a) all liabilities of such person for borrowed money or for the deferred
purchase price of property or services, excluding any trade payables and
other accrued current liabilities incurred in the ordinary course of business
and which are not overdue by more than 90 days, but excluding, without
limitation, all obligations, contingent or otherwise, of such person in
connection with any undrawn letters of credit, banker's acceptance or other
similar credit transaction, (b) all obligations of such person evidenced by
bonds, notes, debentures or other similar instruments, (c) all indebtedness
created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such person (even if the
rights and remedies of the seller or lender under such agreement in the event
of default are limited to repossession or sale of such property), but
excluding trade accounts payable arising in the ordinary course of business,
(d) all Capitalized Lease Obligations of such person, (e) all Indebtedness
referred to in the preceding clauses of other persons and all dividends of
other persons, the payment of which is secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien upon property (including, without limitation, accounts
and contract rights) owned by such person, even though such person has not
assumed or become liable for the payment of such Indebtedness (the amount of
such obligation being deemed to be the lesser of the value of such property
or asset or the amount of the obligation so secured), (f) all guarantees of
Indebtedness referred to in this definition by such person, (g) all
Redeemable Capital Stock of such person valued at the greater of its
voluntary or involuntary maximum fixed repurchase price plus accrued divi
dends, (h) all obligations under or in respect of Currency Agreements and
Interest Rate Protection Obligations of such person, (i) any Preferred Stock
of any Restricted Subsidiary of such person valued at the sum of (without
duplication) (A) the liquidation preference thereof, (B)
9
any mandatory redemption payment obligations in respect thereof and (C)
accrued dividends thereon, and (j) any amendment, supplement, modification,
deferral, renewal, extension or refunding of any liability of the types
referred to in clauses (a) through (i) above. For purposes hereof, the
"MAXIMUM FIXED REPURCHASE PRICE" of any Redeemable Capital Stock which does
not have a fixed repurchase price shall be calculated in accordance with the
terms of such Redeemable Capital Stock as if such Redeemable Capital Stock
were purchased on any date on which Indebtedness shall be required to be
determined pursuant to the provisions hereof, and if such price is based
upon, or measured by, the fair market value of such Redeemable Capital Stock,
such fair market value shall be determined in good faith by the board of
directors of the issuer of such Redeemable Capital Stock. For purposes of
this definition, the term "INDEBTEDNESS" shall not include (i) Indebtedness
of a Wholly-Owned Subsidiary owed to and held by the Guarantor, LGII or
another Wholly-Owned Subsidiary, in each case which is not subordinate in
right of payment to any Indebtedness of such Subsidiary, except that (a) any
transfer of such Indebtedness by the Guarantor, LGII or a Wholly-Owned
Subsidiary (other than to the Guarantor, LGII or to a Wholly-Owned
Subsidiary) and (b) the sale, transfer or other disposition by the Guarantor,
LGII or any Restricted Subsidiary of the Guarantor or LGII of Capital Stock
of a Wholly-Owned Subsidiary which is owed Indebtedness of another
Wholly-Owned Subsidiary such that it ceases to be a Wholly-Owned Subsidiary
of the Guarantor or LGII shall, in each case, be an incurrence of
Indebtedness by such Restricted Subsidiary subject to the other provisions
hereof; and (ii) Indebtedness of the Guarantor or LGII owed to and held by a
Wholly-Owned Subsidiary of the Guarantor or LGII which is unsecured and
subordinate in right of payment to the payment and performance of the
Guarantor's or LGII's obligations under the provisions hereof and the Senior
Notes except that (a) any transfer of such Indebtedness by a Wholly-Owned
Subsidiary of the Guarantor or LGII (other than to another Wholly-Owned
Subsidiary of the Guarantor or LGII) and (b) the sale, transfer or other
disposition by the Guarantor or LGII or any Restricted Subsidiary of the
Guarantor or LGII of Capital Stock of a Wholly-Owned Subsidiary which holds
Indebtedness of the Guarantor or LGII such that it ceases to be a
Wholly-Owned Subsidiary shall, in each case, be an incurrence of Indebtedness
by the Guarantor or LGII, as the case may be, subject to the other provisions
hereof.
"INDENTURE" means this Indenture, as amended, modified or supplemented
from time to time, and shall include the form and terms of particular series
of Senior Notes established as contemplated hereby.
"INDEPENDENT FINANCIAL ADVISOR" means a firm (i) which does not, and
whose directors, officers and employees or Affiliates do not, have a direct
or indirect financial interest in the Guarantor or LGII and (ii) which, in
the judgment of the Board of Directors of the Guarantor, is otherwise
independent and qualified to perform the task for which it is to be engaged.
"INITIAL NOTES" refers to Senior Notes initially issued under this
Indenture and distributed in transactions exempt from registration under the
Securities Act prior to the exchange of such Senior Notes for Exchange Notes.
10
"INTEREST" means, with respect to any Senior Note, the amount of all
interest accruing on such Senior Note, including all interest accruing
subsequent to the occurrence of any events specified in Sections 6.01(f) and
(g) or which would have accrued but for any such event, whether or not such
claims are allowable under applicable law.
"INTEREST PAYMENT DATE" means the Stated Maturity of an installment of
interest on the Senior Notes, as set forth therein.
"INTEREST RATE PROTECTION AGREEMENT" means any arrangement with any
other person whereby, directly or indirectly, such person is entitled to
receive from time to time periodic payments calculated by applying either a
floating or a fixed rate of interest on a stated notional amount in exchange
for periodic payments made by such person calculated by applying a fixed or a
floating rate of interest on the same notional amount and shall include,
without limitation, interest rate swaps, caps, floors, collars and similar
agreements.
"INTEREST RATE PROTECTION OBLIGATIONS" means the obligations of any
person under any Interest Rate Protection Agreement.
"INVESTMENT" means, with respect to any person, any direct or indirect
loan or other extension of credit or capital contribution to (by means of any
transfer of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or acquisition by
such person of any Capital Stock, bonds, notes, debentures or other
securities or evidences of Indebtedness issued by, any other person.
"INVESTMENTS" shall exclude extensions of trade credit by the Guarantor and
its Restricted Subsidiaries (including, without limitation, LGII) in the
ordinary course of business in accordance with normal trade practices of the
Guarantor or such Restricted Subsidiary, as the case may be.
"ISSUE DATE" means the issue date specified in the securities of each
series except as otherwise provided in Section 2.01.
"LEGAL DEFEASANCE" shall have the meaning set forth in Section 8.02.
"LIEN" means any mortgage, charge, pledge, lien (statutory or other),
security interest, hypothecation, assignment for security, claim, or
preference or priority or other encumbrance upon or with respect to any
property of any kind. A person shall be deemed to own subject to a Lien any
property which such person has acquired or holds subject to the interest of a
vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement.
"MATURITY DATE" means, with respect to any Senior Note, the date on
which any principal of such Senior Note becomes due and payable as therein or
herein provided, whether at the Stated Maturity with respect to such
principal or by declaration of acceleration, call for redemption or purchase
or otherwise.
"MEASUREMENT DATE" means March 20, 1996.
11
"MEIP FACILITY" means the 1994 Management Equity Investment Plan
("MEIP") Credit Agreement, dated as of June 14, 1994, as amended and restated
from time to time, by and between Xxxxxx Management Investment Corporation,
in its capacity as agent for LGII the Guarantor, the banks listed therein and
Wachovia Bank of Georgia, N.A., as agent.
"MOODY'S" means Xxxxx'x Investors Service, Inc. and its successors.
"NET CASH PROCEEDS" means, with respect to any Asset Sale, the proceeds
thereof in the form of cash or Cash Equivalents including payments in respect
of deferred payment obligations when received in the form of cash or Cash
Equivalents (except to the extent that such obligations are financed or sold
with recourse to the Guarantor or any Restricted Subsidiary of the Guarantor
(including, without limitation, LGII) net of (i) brokerage commissions and
other fees and expenses (including, without limitation, fees and expenses of
legal counsel and investment bankers) related to such Asset Sale, (ii)
provisions for all taxes payable as a result of such Asset Sale, (iii)
amounts required to be paid to any person (other than the Guarantor or any
Restricted Subsidiary of the Guarantor) owning a beneficial interest in the
assets subject to the Asset Sale and (iv) appropriate amounts to be provided
by the Guarantor or any Restricted Subsidiary of the Guarantor, as the case
may be, as a reserve required in accordance with GAAP against any liabilities
associated with such Asset Sale and retained by the Guarantor or any
Restricted Subsidiary of the Guarantor, as the case may be, after such Asset
Sale, including, without limitation, pension and other post-employment
benefit liabilities, liabilities related to environmental matters and
liabilities under any indemnification obligations associated with such Asset
Sale, all as reflected in an officers' certificate delivered to the Trustee.
"OFFICER" means the Chairman of the Board, the Chief Executive Officer,
the Chief Operating Officer, the President, any Executive Vice President, any
Senior Vice President, any Vice President, the Chief Financial Officer, the
Treasurer, the Secretary or the Controller of LGII or the Guarantor, as the
case may be.
"OFFICERS' CERTIFICATE" means a certificate signed by two Officers or by
an Officer and an Assistant Treasurer or Assistant Secretary of LGII or the
Guarantor, as the case may be, and delivered to the Trustee.
"OPINION OF COUNSEL" means a written opinion from legal counsel who is
reasonably acceptable to the Trustee. The counsel may be an employee of or
counsel to LGII.
"PARI PASSU INDEBTEDNESS" means Indebtedness of LGII or the Guarantor
which ranks PARI PASSU in right of payment with the Senior Notes or the
Guarantee, as the case may be.
"PAYING AGENT" has the meaning set forth in Section 2.04, except that,
for the purposes of Section 4.11 and Section 4.12 and Articles Three and
Eight, the Paying Agent shall not be LGII or a Subsidiary of LGII or any of
their respective Affiliates.
12
"PERMITTED HOLDERS" mean (i) Xxxxxxx Xxxxxx and Xxxx Xxxxxx, taken
together, and (ii) in the case of LGII, the Guarantor.
"PERMITTED INDEBTEDNESS" means, without duplication, each of the
following:
(a) the Series 6 Senior Notes, the Series 7 Senior Notes and
Indebtedness of the Guarantor evidenced by its Guarantee with respect
to the Series 6 Senior Notes and the Series 7 Senior Notes;
(b) Indebtedness of the Guarantor and its Restricted
Subsidiaries (including, without limitation, LGII) outstanding on
the Issue Date (other than Indebtedness under the Credit Agreements);
(c) Indebtedness of the Guarantor or LGII, as the case may be,
under the Credit Agreements in an aggregate principal amount at any
one time outstanding not to exceed $750,000,000 less the Net Proceeds
of any Asset Sale that are applied to repay, and permanently reduce
the commitments under, the Credit Agreements (as required by the terms
thereof);
(d) Interest Rate Protection Obligations of the Guarantor
covering Indebtedness of the Guarantor and its Restricted Subsidiaries
(including, without limitation, LGII); (ii) Interest Rate Protection
Obligations of any Restricted Subsidiary of the Guarantor covering
Indebtedness of such Restricted Subsidiary; PROVIDED, HOWEVER, that,
in the case of either clause (i) or (ii), (x) any Indebtedness to
which any such Interest Rate Protection Obligations relate bears
interest at fluctuating interest rates and is otherwise permitted to
be incurred under this covenant and (y) the notional principal amount
of any such Interest Rate Protection Obligations does not exceed the
principal amount of the Indebtedness to which such Interest Rate
Protection Obligations relate;
(e) Indebtedness under Currency Agreements; PROVIDED, HOWEVER,
that in the case of Currency Agreements which relate to Indebtedness,
such Currency Agreements do not increase the Indebtedness of the
Guarantor and its Restricted Subsidiaries (including, without
limitation, LGII) outstanding other than as a result of fluctuations
in foreign currency exchange rates or by reason of fees, indemnities
and compensation payable thereunder;
(f) Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument
inadvertently (except in the case of daylight overdrafts) drawn
against insufficient funds in the ordinary course of business;
PROVIDED, HOWEVER, that such Indebtedness is extinguished within two
business days of incurrence;
13
(g) Indebtedness incurred in respect of performance bonds or
letters of credit in lieu thereof provided in the ordinary course of
business;
(h) Indebtedness of the Guarantor and its Restricted
Subsidiaries (including, without limitation, LGII) represented by
letters of credit for the account of the Guarantor and its Restricted
Subsidiaries in order to provide security for workers' compensation
claims, payment obligations in connection with self-insurance or
similar requirements in the ordinary course of business;
(i) Indebtedness of the Guarantor and its Restricted
Subsidiaries (including, without limitation, LGII) in addition to that
described in clauses (a) through (h) above, in an aggregate principal
amount outstanding at any time not exceeding $5,000,000; and
(j) (i) Indebtedness of the Guarantor the proceeds of which are
used solely to refinance (whether by amendment, renewal, extension or
refunding) Indebtedness of the Guarantor and its Restricted
Subsidiaries (including, without limitation, LGII) and
(ii) Indebtedness of any Restricted Subsidiary of the Guarantor the
proceeds of which are used solely to refinance (whether by amendment,
renewal, extension or refunding) Indebtedness of such Restricted
Subsidiary, in each case other than the Indebtedness refinanced,
redeemed or retired on the Issue Date or Indebtedness incurred under
clause (c), (d), (e), (f), (g), (h), or (i) of this covenant;
PROVIDED, HOWEVER, that (x) the principal amount of Indebtedness
incurred pursuant to this clause (j) (or, if such Indebtedness
provides for an amount less than the principal amount thereof to be
due and payable upon a declaration of acceleration of the maturity
thereof, the original issue price of such Indebtedness) shall not
exceed the sum of the principal amount of Indebtedness so refinanced,
plus the amount of any premium required to be paid in connection with
such refinancing pursuant to the terms of such Indebtedness or the
amount of any premium reasonably determined by the Board of Directors
of the Guarantor as necessary to accomplish such refinancing by means
of a tender offer or privately negotiated purchase, plus the amount of
expenses in connection therewith, (y) in the case of Indebtedness
incurred by the Guarantor pursuant to this clause (j) to refinance
Pari Passu Indebtedness, such Indebtedness constitutes Pari Passu
Indebtedness.
"PERMITTED INVESTMENTS" means any of the following: (i) Investments in
any Wholly-Owned Subsidiary of the Guarantor (including (a) LGII and (b) any
person that pursuant to such Investment becomes a Wholly-Owned Subsidiary of
the Guarantor) and any person that is merged or consolidated with or into, or
transfers or conveys all or substantially all of its assets to, the Guarantor
or any Wholly-Owned Subsidiary of the Guarantor at the time such Investment
is made; (ii) Investments in Cash Equivalents; (iii) Investments in Currency
Agreements on commercially reasonable terms entered into by the Guarantor or
any of its Restricted Subsidiaries in the ordinary course of business in
connection with the operations of the business of the
14
Guarantor or its Restricted Subsidiaries to hedge against fluctuations in
foreign exchange rates; (iv) loans or advances to officers, employees or
consultants of the Guarantor and its Restricted Subsidiaries for travel and
moving expenses in the ordinary course of business for bona fide business
purposes of the Guarantor and its Restricted Subsidiaries; (v) other loans or
advances to officers, employees or consultants of the Guarantor and its
Restricted Subsidiaries in the ordinary course of business for bona fide
business purposes of the Guarantor and its Restricted Subsidiaries not in
excess of $10,000,000 in the aggregate at any one time outstanding; (vi)
Investments in evidences of Indebtedness, securities or other property
received from another person by the Guarantor or any of its Restricted
Subsidiaries in connection with any bankruptcy proceeding or by reason of a
composition or readjustment of debt or a reorganization of such person or as
a result of foreclosure, perfection or enforcement of any Lien in exchange
for evidences of Indebtedness, securities or other property of such person
held by the Guarantor or any of its Restricted Subsidiaries, or for other
liabilities or obligations of such other person to the Guarantor or any of
its Restricted Subsidiaries that were created, in accordance with the terms
of this Indenture; (vii) Investments in Interest Rate Protection Agreements
on commercially reasonable terms entered into by the Guarantor or any of its
Restricted Subsidiaries in the ordinary course of business in connection with
the operations of the Guarantor and its Restricted Subsidiaries to hedge
against fluctuations in interest rates; and (viii) Investments of funds
received by the Guarantor or its Restricted Subsidiaries (including, without
limitation, LGII) in the ordinary course of business, which funds are
required to be held in trust for the benefit of others by the Guarantor or
such Restricted Subsidiary, as the case may be, and which funds do not
constitute assets or liabilities of the Guarantor or such Restricted
Subsidiary; (ix) Investments not in excess of $50,000,000 in the aggregate in
other Unrestricted Subsidiaries which are engaged in the insurance business;
and (x) Investments not in excess of $50,000,000 in persons (other than
Wholly-Owned Subsidiaries) engaged in businesses incidental to the funeral
home, cemetery and cremation businesses of the Guarantor and its Restricted
Subsidiaries.
"PERMITTED LIENS" means the following types of Liens:
(a) Liens for taxes, assessments or governmental charges or
claims either (a) not delinquent or (b) contested in good faith by
appropriate proceedings and as to which the Guarantor or any of its
Restricted Subsidiaries (including, without limitation, LGII) shall
have set aside on its books such reserves as may be required pursuant
to GAAP;
(b) statutory Liens of landlords and Liens of carriers,
warehousemen, mechanics, suppliers, materialmen, repairmen and other
Liens imposed by law incurred in the ordinary course of business for
sums not yet delinquent or being contested in good faith, if such
reserve or other appropriate provision, if any, as shall be required
by GAAP shall have been made in respect thereof;
(c) Liens incurred or deposits made in the ordinary course of
business in connection with workers' compensation, unemployment
insurance and other types of social security, or to secure the
performance of tenders, statutory obligations, surety and appeal
bonds, bids, leases, governmental contracts,
15
performance and return-of-money bonds and other similar obligations
(exclusive of obligations for the payment of borrowed money);
(d) judgment Liens not giving rise to an Event of Default so
long as such Lien is adequately bonded and any appropriate legal
proceedings which may have been duly initiated for the review of such
judgment shall not have been finally terminated or the period within
which such proceedings may be initiated shall not have expired;
(e) easements, rights-of-way, zoning restrictions and other
similar charges or encumbrances in respect of real property not
interfering in any material respect with the ordinary conduct of the
business of the Guarantor or any of its Restricted Subsidiaries
(including, without limitation, LGII);
(f) any interest or title of a lessor under any Capitalized
Lease Obligation or operating lease;
(g) any Lien existing on any asset of any corporation at the
time such corporation becomes a Restricted Subsidiary and not created
in contemplation of such event;
(h) any Lien on any asset securing Indebtedness incurred or
assumed for the purpose of financing all or any part of the cost of
acquiring or constructing such asset; PROVIDED, that such Lien
attaches to such asset concurrently with or within 18 months after the
acquisition or completion thereof;
(i) any Lien on any asset of any corporation existing at the
time such corporation is merged or consolidated with or into the
Guarantor or a Restricted Subsidiary and not created in contemplation
of such event;
(j) any Lien existing on any asset prior to the acquisition
thereof by the Guarantor or a Restricted Subsidiary and not created in
contemplation of such acquisition;
(k) Liens in favor of customs and revenue authorities arising as
a matter of law to secure payment of customs duties in connection with
the importation of goods; and
(l) any extension, renewal or replacement of any Lien permitted
by the preceding clauses (g), (h), (i) or (j) hereof in respect of the
same property or assets theretofore subject to such Lien in connection
with the extension, renewal or refunding of the Indebtedness secured
thereby; PROVIDED that (1) such Lien shall attach solely to the same
property or assets and (2) such extension, renewal or refunding of
such Indebtedness shall be without increase in the principal remaining
unpaid as at the date of such extension, renewal or refunding.
16
"PERSON" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
charitable foundation, unincorporated organization, government or any agency
or political subdivision thereof.
"PHYSICAL NOTE" shall have the meaning set forth in Section 2.01.
"PREDECESSOR NOTES" means, with respect to any particular Senior Note,
every previous Senior Note evidencing all or a portion of the same debt as
that evidenced by such particular Senior Note; and, for the purposes of this
definition, any Senior Notes authenticated and delivered under Section 2.08
hereof in exchange for mutilated Notes or in lieu of lost, destroyed or
stolen Senior Notes, shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Senior Notes.
"PREFERRED SECURITIES" means, with respect to a Special Finance
Subsidiary, any securities of such Subsidiary treated for accounting purposes
as an equity security that has preferential rights to any other security of
such person with respect to dividends or redemptions or upon liquidation.
"PREFERRED STOCK" means, with respect to any person, any Capital Stock
of such person that has preferential rights to any other Capital Stock of
such person with respect to dividends or redemptions or upon liquidation and
any Preferred Securities.
"PRINCIPAL" means, with respect to any debt security, the principal of
the security plus, when appropriate, the premium, if any, on the security and
any interest on overdue principal.
"PRIVATE PLACEMENT LEGEND" shall have the meaning set forth in Section
2.02.
"QIB" means a "QUALIFIED INSTITUTIONAL BUYER" under Rule 144A.
"REDEEMABLE CAPITAL STOCK" means any shares of any class or series of
Capital Stock that, either by the terms thereof, by the terms of any security
into which it is convertible or exchangeable or by contract or otherwise, is
or upon the happening of an event or passage of time would be, required to be
redeemed prior to the Stated Maturity with respect to the principal of any
Senior Note or is redeemable at the option of the holder thereof at any time
prior to any such Stated Maturity, or is convertible into or exchangeable for
debt securities at any time prior to any such Stated Maturity.
"REDEMPTION DATE" means, with respect to any Senior Note to be redeemed,
the date fixed by LGII for such redemption pursuant to this Indenture and the
terms of the Senior Notes.
"REDEMPTION PRICE" means, with respect to any Senior Note to be
redeemed, the price fixed for such redemption pursuant to the terms of this
Indenture and the Senior Notes.
"REGISTRAR" has the meaning set forth in Section 2.04.
17
"REGISTRATION RIGHTS AGREEMENT" means the Registration Rights Agreement,
dated as of May 28, 1998, among LGII, the Guarantor and the Initial
Purchasers.
"REGISTRATION STATEMENT" means the Registration Statement as defined in
the Registration Rights Agreement.
"RELATED OBLIGOR" has the meaning set forth in Section 4.08.
"RESTRICTED PAYMENTS" has the meaning set forth in Section 4.08.
"RESTRICTED SUBSIDIARY" means any Subsidiary of the Guarantor other than
an Unrestricted Subsidiary.
"REVOLVING CREDIT FACILITY" means the $600,000,000 Credit Agreement,
dated as of September 27, 1997 and as amended from time to time, among LGII,
as borrower, TLGI, as guarantor, the lenders named therein, as the lenders,
and Bank of Montreal, as letter of credit issuer, swingline lender and
syndication and administrative agent.
"RULE 144A" means Rule 144A under the Securities Act.
"SALE-LEASEBACK TRANSACTION" of any person means an arrangement with any
lender or investor or to which such lender or investor is a party providing
for the leasing by such person of any property or asset of such person which
has been or is being sold or transferred by such person after the acquisition
thereof or the completion of construction or commencement of operation
thereof to such lender or investor or to any person to whom funds have been
or are to be advanced by such lender or investor on the security of such
property or asset. The stated maturity of such arrangement shall be the date
of the last payment of rent or any other amount due under such arrangement
prior to the first date on which such arrangement may be terminated by the
lessee without payment of a penalty.
"S&P" means Standard & Poor's Corporation, and its successors.
"SECURITIES ACT" means the Securities Act of 1933, as amended from time
to time.
"SELLER FINANCING INDEBTEDNESS" means a purchase money Indebtedness
issued to the seller of a business or other assets for, and not in excess of,
the purchase price thereof.
"SENIOR NOTES" means the securities that are issued under this
Indenture, as amended or supplemented from time to time pursuant to this
Indenture.
"SERIES 6 EXCHANGE NOTES" has the meaning given in Section 2.01.
18
"SERIES 6 INITIAL NOTES" means the $200,000,000 aggregate principal
amount of LGII's 7.20% Series 6 Senior Guaranteed Notes due 2003 issued
pursuant to this Indenture on May 28, 1998.
"SERIES 6 SENIOR NOTES" means the $200,000,000 aggregate principal
amount of LGII's Series 6 Senior Guaranteed Notes dated May 28, 1998, which
are divided into two sub-series of Senior Notes: the Series 6 Initial Notes
and the Series 6 Exchange Notes.
"SERIES 7 EXCHANGE NOTES" has the meaning given in Section 2.01.
"SERIES 7 INITIAL NOTES" means the $250,000,000 aggregate principal
amount of LGII's 7.60% Series 7 Senior Guaranteed Notes due 2008 issued
pursuant to this Indenture on May 28, 1998.
"SERIES 7 SENIOR NOTES" means the $250,000,000 aggregate principal
amount of LGII's Series 7 Senior Guaranteed Notes dated May 28, 1998, which
are divided into two sub-series of Senior Notes: the Series 7 Initial Notes
and the Series 7 Exchange Notes.
"SHELF REGISTRATION STATEMENT" means the Shelf Registration Statement as
defined in the Registration Rights Agreement.
"SIGNIFICANT SUBSIDIARY" shall mean a Restricted Subsidiary which is a
"SIGNIFICANT SUBSIDIARY" as defined in Rule 1.02(v) of Regulation S-X under
the Securities Act.
"SPECIAL FINANCE SUBSIDIARY" means a Restricted Subsidiary whose sole
assets are debt obligations of LGII or the Guarantor and whose sole
liabilities are Preferred Securities the proceeds from the sale of which are
or have been advanced to LGII or the Guarantor.
"STATED MATURITY" means, when used with respect to any Senior Note or
any installment of interest thereon, the date specified in such Senior Note
as the fixed date on which the principal of such Senior Note or such
installment of interest is due and payable, and when used with respect to any
other Indebtedness, means the date specified in the instrument governing such
Indebtedness as the fixed date on which the principal of such Indebtedness,
or any installment of interest thereon, is due and payable.
"SUBSIDIARY" means, with respect to any person, (i) a corporation a
majority of whose Voting Stock is at the time, directly or indirectly, owned
by such person, by one or more Subsidiaries of such person or by such person
and one or more Subsidiaries thereof and (ii) any other person (other than a
corporation), including, without limitation, a joint venture, in which such
person, one or more Subsidiaries thereof or such person and one or more
Subsidiaries thereof, directly or indirectly, at the date of determination
thereof, has at least majority ownership interest entitled to vote in the
election of directors, managers or trustees thereof (or other person
performing similar functions). For purposes of this definition, any
directors' qualifying shares or
19
investments by foreign nationals mandated by applicable law shall be
disregarded in determining the ownership of a Subsidiary.
"SURVIVING ENTITY" shall have the meaning set forth in Section 5.01.
"TIA" means the Trust Indenture Act of 1939 (15 U.S. Code Sections
77aaa-77bbbb) as in effect on the Issue Date.
"TRUST OFFICER" means any officer in the Corporate Trust Administration
of the Trustee or any other officer of the Trustee customarily performing
functions similar to those performed by any of the above-designated officers
and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and
familiarity with the particular subject.
"TRUSTEE" means the party named as such in this Indenture until a
successor replaces such party (or any previous successor) in accordance with
the provisions of this Indenture, and thereafter means such successor.
"U.S. GOVERNMENT OBLIGATIONS" shall have the meaning set forth in
Section 8.02.
"UNRESTRICTED SUBSIDIARY" means (i) First Capital Life Insurance Company
of Louisiana, National Capital Life Insurance Company, Security Industrial
Insurance Company, Security Industrial Fire Insurance Company or any
successors to such Subsidiaries or (ii) a Subsidiary of the Guarantor
declared by the Board of Directors of the Guarantor to be an Unrestricted
Subsidiary; PROVIDED, that no such Subsidiary shall be declared to be an
Unrestricted Subsidiary unless (x) none of its properties or assets were
owned by the Guarantor or any of its Subsidiaries prior to the Issue Date,
other than any such assets as are transferred to such Unrestricted Subsidiary
in accordance with the covenant contained in Section 4.08, (y) its properties
and assets, to the extent that they secure Indebtedness, secure only
Non-Recourse Indebtedness and (z) it has no Indebtedness other than
Non-Recourse Indebtedness. As used above, "NON-RECOURSE INDEBTEDNESS" means
Indebtedness as to which (i) neither the Guarantor nor any of its
Subsidiaries (other than the relevant Unrestricted Subsidiary or another
Unrestricted Subsidiary) (1) provides credit support (including any
undertaking, agreement or instrument which would constitute Indebtedness),
(2) guarantees or is otherwise directly or indirectly liable or (3)
constitutes the lender (in each case, other than pursuant to and in
compliance with the covenant contained in Section 4.08 and (ii) no default
with respect to such Indebtedness (including any rights which the holders
thereof may have to take enforcement action against the relevant Unrestricted
Subsidiary or its assets) would permit (upon notice, lapse of time or both)
any holder of any other Indebtedness of the Guarantor or its Subsidiaries
(other than Unrestricted Subsidiaries) to declare a default on such other
Indebtedness or cause the payment thereof to be accelerated or payable prior
to its stated maturity.
"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 or trustees of any person (irrespective of whether or not, at the
20
time, Capital Stock of any other class or classes shall have, or might have,
voting power by reason of the happening of any contingency).
"WHOLLY-OWNED SUBSIDIARY" means (i) any Restricted Subsidiary of the
Guarantor of which 100% of the outstanding Capital Stock is owned by the
Guarantor or one or more Wholly-Owned Subsidiaries of the Guarantor or by the
Guarantor and one or more Wholly-Owned Subsidiaries of the Guarantor,
including LGII, or (ii) any Subsidiary, at least 66 2/3% of the outstanding
voting securities of which, and all of the outstanding shares entitled to
receive dividends or other distributions of which, shall at the time be owned
or controlled, directly or indirectly, by the Guarantor or one or more
Wholly-Owned Subsidiaries of the Guarantor or by the Guarantor and one or
more Wholly-Owned Subsidiaries of the Guarantor, including LGII. For
purposes of this definition, any directors' qualifying shares or investments
by foreign nationals mandated by applicable law shall be disregarded in
determining the ownership of a Subsidiary.
SECTION 1.02. INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the provision
is incorporated by reference in and made a part of this Indenture. The
following TIA terms used in this Indenture have the following meanings:
"INDENTURE SECURITIES" means the Senior Notes and the Guarantee;
"INDENTURE SECURITY HOLDER" means a Noteholder or Holder;
"INDENTURE TO BE QUALIFIED" means this Indenture;
"INDENTURE TRUSTEE" or "INSTITUTIONAL TRUSTEE" means the Trustee; and
"OBLIGOR" on the indenture securities means LGII, the Guarantor or any
other obligor on the Senior Notes or the Guarantee.
All other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by Commission rule and
not otherwise defined herein have the meanings assigned to them therein.
SECTION 1.03. RULES OF CONSTRUCTION.
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(a) words in the singular include the plural, and words in the
plural include the singular;
(b) "OR" is not exclusive;
21
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP;
(d) the words "HEREIN", "HEREOF" and "HEREUNDER" and other words
of similar import refer to this Indenture as a whole and not to any
particular Article, Section or other subdivision; and
(e) all references to "$" or "DOLLARS" shall refer to the lawful
currency of the United States of America.
ARTICLE 2
THE SENIOR NOTES
SECTION 2.01. ISSUANCE OF SENIOR NOTES.
The aggregate principal amount of Senior Notes which may be outstanding
at any time under this Indenture may not exceed $450,000,000 at any time,
except to the extent permitted by Section 2.08. The Senior Notes may be
issued in one or more series. Upon the execution and delivery of this
Indenture and the Guarantee, Series 6 Senior Notes in an aggregate principal
amount of $200,000,000 and Series 7 Senior Notes in an aggregate principal
amount of $250,000,000 may be executed by LGII and delivered to the Trustee
for authentication. From time to time thereafter LGII may, without
limitation, also issue additional Senior Notes of the same tenor as the
Series 6 Senior Notes or the Series 7 Senior Notes, as the case may be, under
this Indenture so that such additional Senior Notes, together with either the
Series 6 Senior Notes or the Series 7 Senior Notes, as the case may be, shall
form a single series; PROVIDED that with respect to any such additional
Senior Notes the Issue Date may be the date of the purchase and sale of such
additional Senior Notes and interest thereon shall accrue as and from the
Issue Date thereof.
The Series 6 Senior Notes are divided into the following two sub-series,
which collectively form one series of Senior Notes: (i) LGII's 7.20% Series 6
Senior Guaranteed Notes due 2003, issued on May 28, 1998 (the "SERIES 6
INITIAL NOTES") and (ii) LGII's 7.20% Series 6 Senior Guaranteed Notes
(Registered) due 2003 (the "SERIES 6 EXCHANGE NOTES"). A Holder of Series 6
Initial Notes, upon surrender of the certificate representing such Series 6
Initial Notes pursuant to the Exchange Offer, shall be entitled to receive in
exchange therefor a certificate representing Series 6 Exchange Notes, which
shall evidence the same debt as had been evidenced by the Series 6 Initial
Notes so surrendered. Absent repurchase, the aggregate principal amount of
Series 6 Senior Notes shall be $200,000,000, irrespective of whether all,
some or none of the Series 6 Initial Notes are exchanged in the Exchange
Offer.
The Series 7 Senior Notes are divided into the following two sub-series,
which collectively form one series of Senior Notes: (i) LGII's 7.60% Series 7
Senior Guaranteed Notes due 2003, issued on May 28, 1998 (the "SERIES 7
INITIAL NOTES") and (ii) LGII's 7.60% Series 7 Guaranteed Notes (Registered)
due 2008 (the "SERIES 7 EXCHANGE NOTES"). A Holder of Series 7 Initial
22
Notes, upon surrender of the certificate representing such Series 7 Initial
Notes pursuant to the Exchange Offer, shall be entitled to receive in
exchange therefor a certificate representing Series 7 Exchange Notes, which
shall evidence the same debt as had been evidenced by the Series 7 Initial
Notes so surrendered. Absent redemption or repurchase, the aggregate
principal amount of Series 7 Senior Notes shall be $250,000,000, irrespective
of whether all, some or none of the Series 7 Initial Notes are exchanged in
the Exchange Offer.
The Senior Notes of each series and the Trustee's certificate of
authentication thereon shall be in substantially the form of Exhibits A and B
hereto, with such appropriate insertions, omissions, substitutions and other
variations as are required or permitted by this Indenture and may have such
letters, numbers or other marks of identification and such legends or
endorsements placed thereon as may be required to comply with any applicable
law or with the rules of any securities exchange or as may, consistently
herewith, be determined by the Officers executing such Senior Notes, as
evidenced by their execution thereof. The Senior Notes of each series shall
be issuable only in registered form without coupons and only in denominations
of $1,000 and integral multiples thereof.
The definitive Senior Notes and the Guarantee shall be printed,
typewritten, lithographed or engraved or produced by any combination of these
methods or may be produced in any other manner permitted by the rules of any
securities exchange on which the Senior Notes of such series may be listed,
all as determined by the officers executing such Senior Notes, as evidenced
by their execution of such Senior Notes. Each Senior Note shall be dated the
date of its authentication.
Initial Notes offered and sold in reliance on Rule 144A shall be issued
initially in the form of one or more permanent global Senior Notes
substantially in the form set forth in Exhibit A hereto (the "GLOBAL NOTE")
deposited with, or on behalf of, the Depositary or with the Trustee, as
custodian for the Depositary, duly executed by the Company and authenticated
by the Trustee as hereinafter provided. The aggregate principal amount of
the Global Note may from time to time be increased or decreased by
adjustments made on the records of the Depositary or its nominee, or of the
trustee, as custodian for the Depositary or its nominee, as hereinafter
provided.
Initial Notes offered and sold other than as described in the preceding
paragraph shall be issued in the form of permanent certificated Senior Notes
in registered form in substantially the form set forth in Exhibit B hereto
(the "PHYSICAL NOTES"). Senior Notes issued pursuant to Section 2.09 in
exchange for interests in the Global Note shall be in the form of Physical
Notes.
The terms and provisions contained in the form of the Senior Notes,
annexed hereto as Exhibits A and B, shall constitute, and are hereby
expressly made, a part of this Indenture and, to the extent applicable, LGII
and the Trustee, by their execution and delivery of this Indenture, expressly
agree to such terms and provisions and to be bound thereby.
SECTION 2.02. RESTRICTIVE LEGENDS.
Unless and until (i) an Initial Note is sold under an effective
Registration Statement or (ii) an Initial Note is exchanged for an Exchange
Note in connection with an effective Registration
23
Statement, in each case as provided for in the Registration Rights Agreement,
then the Global Note and each Physical Note shall bear the legend set forth
below (the "PRIVATE PLACEMENT LEGEND") on the face thereof:
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED
INVESTOR" (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES
ACT) (AN "ACCREDITED INVESTOR"), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS
AFTER THE ORIGINAL ISSUANCE OF THIS NOTE RESELL OR OTHERWISE TRANSFER THIS
NOTE EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE
UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A
UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED
INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM THE TRUSTEE), (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR
(E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
Each Global Note, whether or not an Initial Note, shall also bear the
following legend on the face thereof:
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
HEREON IS MADE TO CEDE & CO. TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO TRANSFERS MADE IN ACCORDANCE
24
WITH THE RESTRICTIONS SET FORTH IN SECTIONS 2.09 AND 2.10 OF THE INDENTURE.
SECTION 2.03. EXECUTION AND AUTHENTICATION.
Two Officers shall execute the Senior Notes of each series on behalf of
LGII by either manual or facsimile signature. LGII's seal shall be
impressed, affixed, imprinted or reproduced on the Senior Notes.
If an Officer whose signature is on a Senior Note no longer holds that
office at the time the Trustee authenticates the Senior Note or at any time
thereafter, the Senior Note shall be valid nevertheless.
A Senior Note shall not be valid until an authorized signatory of the
Trustee manually signs the certificate of authentication on the Senior Note.
Such signature shall be conclusive evidence that the Senior Note has been
authenticated under this Indenture.
The Trustee shall authenticate Senior Notes for original issue upon
receipt of an Officers' Certificate signed by two Officers of LGII directing
the Trustee to authenticate the Senior Notes and certifying that all
conditions precedent to the issuance of the Senior Notes contained herein
have been complied with.
With the prior written approval of LGII, the Trustee may appoint an
authenticating agent acceptable to LGII to authenticate Senior Notes. Unless
limited by the terms of such appointment, an authenticating agent may authen
ticate Senior Notes whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. Such authenticating agent shall have the same rights as the Trustee in
any dealings hereunder with LGII or with any of LGII's Affiliates.
SECTION 2.04. REGISTRAR AND PAYING AGENT.
LGII shall maintain an office or agency (which shall be located in the
Borough of Manhattan, The City of New York, State of New York) where Senior
Notes of each series may be presented for registration of transfer or for
exchange (the "REGISTRAR"), an office or agency (which shall be located in
the Borough of Manhattan, The City of New York, State of New York) where
Senior Notes may be presented for payment of principal, premium, if any, and
interest (the "PAYING AGENT") and an office or agency where notices and
demands to or upon LGII in respect of the Senior Notes and this Indenture may
be served. The Registrar shall keep a register of the Senior Notes and of
their transfer and exchange. LGII may have one or more co-Registrars and one
or more additional paying agents. The term "PAYING AGENT" includes any
additional paying agent. Except as otherwise expressly provided in this
Indenture, LGII or any Affiliate thereof may act as Paying Agent.
LGII shall enter into an appropriate agency agreement with any Registrar
or Paying Agent not a party to this Indenture, which shall incorporate the
provisions of the TIA. The agreement
25
shall implement the provisions of this Indenture that relate to such
Registrar or Paying Agent. LGII shall notify the Trustee of the name and
address of any such Registrar or Paying Agent. If LGII fails to maintain a
Registrar, Paying Agent or agent for service of notices and demands, or fails
to give the foregoing notice, the Trustee shall act as such and shall be
entitled to appropriate compensation in accordance with Section 7.08.
LGII initially appoints the Trustee as Registrar, Paying Agent and agent
for service of notices and demands in connection with the Senior Notes.
SECTION 2.05. PAYING AGENT TO HOLD MONEY IN TRUST.
Each Paying Agent shall hold in trust for the benefit of Holders or the
Trustee all money held by the Paying Agent for the payment of principal of,
or interest on, the Senior Notes (whether such money has been distributed to
it by LGII or any other obligor on the Senior Notes), and LGII (or any other
obligor on the Senior Notes) and the Paying Agent shall notify the Trustee of
any default by LGII (or any other obligor on the Senior Notes) in making any
such payment. If LGII or an Affiliate of LGII acts as Paying Agent, it shall
segregate the money and hold it as a separate trust fund. LGII at any time
may require a Paying Agent to distribute all money held by it to the Trustee
and account for any funds disbursed and the Trustee may at any time during
the continuance of any Payment Default with respect to the Senior Notes, upon
written request to a Paying Agent, require such Paying Agent to pay all money
held by it to the Trustee and to account for any funds distributed. Upon
doing so, the Paying Agent (other than an obligor on the Senior Notes or the
Guarantee) shall have no further liability for the money so paid over to the
Trustee.
SECTION 2.06 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 TIA Section 312(a). If the
Trustee is not the Registrar, LGII shall furnish to the Trustee at least ten
Business Days before each Interest Payment Date and at such other times as
the Trustee may request in writing a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of Holders,
which list may be conclusively relied upon by the Trustee.
SECTION 2.07. TRANSFER AND EXCHANGE.
When Senior Notes of any series are presented to the Registrar or a
co-Registrar with a request to register the transfer of such Senior Notes or
to exchange such Senior Notes for an equal principal amount of Senior Notes
of other authorized denominations, the Registrar or co-Registrar shall
register the transfer or make the exchange as requested if its requirements
for such transaction are met; PROVIDED, HOWEVER, that the Senior Notes
surrendered for transfer or exchange shall be duly endorsed or accompanied by
a written instrument of transfer in form satisfactory to LGII and the
Registrar or co-Registrar, duly executed by the Holder thereof or his
attorney duly authorized in writing. To permit registrations of transfers
and exchanges, LGII shall execute and the Trustee shall authenticate Senior
Notes at the Registrar's or co-Registrar's
26
request. No service charge shall be made for any transfer, exchange or
redemption, but LGII may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith
(other than any such transfer taxes or similar governmental charge payable
upon exchanges or transfers pursuant to Sections 2.02, 2.07, 2.10, 4.12, 4.13
or 9.05). The Registrar or co- Registrar shall not be required to register
the transfer of or exchange of any Senior Note (i) during a period beginning
at the opening of business 15 days before the mailing of a notice of
redemption of Senior Notes and ending at the close of business on the day of
such mailing and (ii) selected for redemption in whole or in part pursuant to
Article Three, except the unredeemed portion of any Senior Note being
redeemed in part.
Any Holder of the Global Note shall, by acceptance of such Global Note,
agree that transfers of beneficial interests in such Global Note may be
effected only through a book-entry system maintained by the Holder of such
Global Note (or its agent), and that ownership of a beneficial interest in
the Senior Note shall be required to be reflected in a book entry.
SECTION 2.08. REPLACEMENT NOTES.
If a mutilated Senior Note is surrendered to the Trustee or if the
Holder of a Senior Note claims that the Senior Note has been lost, destroyed
or wrongfully taken, LGII shall issue and the Trustee shall authenticate a
replacement Senior Note if the Trustee's requirements are satisfied. If
required by the Trustee or LGII, such Holder must provide an indemnity bond
or other indemnity, sufficient in the judgment of both LGII and the Trustee,
to protect LGII, the Trustee or any Paying Agent or Registrar from any loss
which any of them may suffer if a Senior Note is replaced. LGII may charge
such Holder for its reasonable, out-of-pocket expenses in replacing a Senior
Note, including reasonable fees and expenses of counsel. Every replacement
Senior Note is an additional obligation of LGII and the Guarantor.
SECTION 2.09. BOOK-ENTRY PROVISIONS FOR GLOBAL NOTE. (a) The Global
Note initially shall (i) be registered in the name of the Depositary for such
Global Note or the nominee of such Depositary, (ii) be deposited with, or on
behalf of, the Depositary or with the Trustee, as custodian for such
Depositary, and (iii) bear legends as set forth in Section 2.02 Members of,
or participants in, the Depositary ("AGENT MEMBERS") shall have no rights
under this Indenture with respect to any Global Note held on their behalf by
the Depositary, or the Trustee as its custodian, or under the Global Note,
and the Depositary may be treated by LGII, the Trustee and any agent of LGII
or the Trustee as the absolute owner of such Global Note for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent
LGII, the Trustee or any agent of LGII or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by the
Depositary or shall impair, as between the Depositary and its Agent Members,
the operation of customary practices governing the exercise of the rights of
a Holder of any Senior Note.
(b) Transfers of the Global Note shall be limited to transfers of such
Global Note in whole, but not in part, to the Depositary, its successors or
their respective nominees. Interests of beneficial owners in the Global Note
may be transferred in accordance with the rules and procedures of the
Depositary and the provisions of Section 2.10. In addition, Physical Notes
shall
27
be issued to all beneficial owners in exchange for their beneficial interests
in the Global Note if (i) the Depositary notifies LGII that it is unwilling
or unable to continue as Depositary for the Global Note and a successor
depositary is not appointed by LGII within 90 days of such notice or (ii) an
Event of Default has occurred and is continuing and the Registrar has
received a request from the Depositary.
(c) In connection with any transfer of a portion of the beneficial
interest in the Global Note pursuant to Section 2.09(b) to beneficial owners
who are required to hold Physical Notes, the Registrar shall reflect on its
books and records the date and a decrease in the principal amount of the
Global Note in an amount equal to the principal amount of the beneficial
interest in the Global Note to be transferred, and LGII shall execute, and
the Trustee shall authenticate and deliver, one or more Physical Notes of
like tenor and amount.
(d) In connection with the transfer of the entire Global Note to
beneficial owners pursuant to Section 2.09(b), the Global Note shall be
deemed to be surrendered to the Trustee for cancellation, and LGII shall
execute, and the Trustee shall authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial interest in
the Global Note an equal aggregate principal amount of Physical Notes of
authorized denominations.
(e) Any Physical Note delivered in exchange for an interest in the
Global Note pursuant to subsection (c) or subsection (d) of this Section
shall, except as otherwise provided by paragraph (d) of Section 2.10, bear
the applicable legend regarding transfer restrictions applicable to the
Physical Notes set forth in Section 2.02.
(f) The Holder of the Global Note may grant proxies and otherwise
authorize any person, including Agent Members and persons that may hold
interests through Agent Members, to take any action which a Holder is
entitled to take under this Indenture or the Senior Notes.
(g) QIBs that are beneficial owners of interests in a Global Note may
receive Physical Notes (which shall bear the Private Placement Legend if
required by Section 2.02) in accordance with the procedures of the
Depositary. In connection with the execution, authentication and delivery of
such Physical Notes, the Registrar shall reflect on its books and records a
decrease in the principal amount of the relevant Global Note equal to the
principal amount of such Physical Notes and LGII shall execute and the
Trustee shall authenticate and deliver one or more Physical Notes having an
equal aggregate principal amount.
SECTION 2.10. SPECIAL TRANSFER PROVISIONS. Unless and until (i) an
Initial Note is sold under an effective Registration Statement, or (ii) an
Initial Note is exchanged for an Exchange Note in connection with the
Exchange Offer, in each case pursuant to the Registration Rights Agreement,
the following provisions shall apply:
(a) Transfers to Non-QIB Institutional Accredited Investors. The
following provisions shall apply with respect to the registration of any
proposed transfer of an Initial Note
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to any institutional "ACCREDITED INVESTOR" (as defined in subparagraph
(a)(1), (2), (3) or (7) of Rule 501 under the Securities Act) that is not a
QIB (excluding Non-U.S. Persons):
(i) The Registrar shall register the transfer of any Initial
Note, whether or not such Initial Note bears the Private Placement
Legend, if (x) the requested transfer is at least two years after the
original issue date of the Initial Notes or (y) the proposed
transferee has delivered to the Registrar a certificate substantially
in the form set forth in Section 2.11; and
(ii) If the proposed transferor is an Agent Member holding a
beneficial interest in the Global Note, upon receipt by the Registrar
of (x) the certificate and opinion, if any, required by paragraph (i)
and (y) instructions given in accordance with the Depositary's and the
Registrar's procedures therefor, the Registrar shall reflect on its
books and records the date and a decrease in the principal amount of
the Global Note in an amount equal to the principal amount of the
beneficial interest in the Global Note to be transferred, and LGII
shall execute, and the Trustee shall authenticate and deliver, one or
more Physical Notes of like tenor and amount.
(b) Transfers to QIBs. The following provisions shall apply with
respect to the registration of any proposed transfer of a Physical Note to a
QIB (excluding Non-U.S. Persons):
(i) If the Senior Note to be transferred consists of (A)
Physical Notes, the Registrar shall register the transfer if such
transfer is being made by a proposed transferor who has checked the
box provided for on the form of Initial Note stating, or has otherwise
advised LGII and the Registrar in writing, that the sale has been made
in compliance with the provisions of Rule 144A to a transferee who has
signed the certification provided for on the form of Senior Note
stating, or has otherwise advised LGII and the Registrar in writing,
that it is a QIB, that it is purchasing the Senior Note for its own
account or an account with respect to which it exercises sole
investment discretion (the beneficial owner of which is a QIB) and
that it and any such sale to it is being made in reliance on Rule 144A
and acknowledges that it has received such information regarding LGII
as it has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is
relying upon its foregoing representations in order to claim the
exemption from registration provided by Rule 144A or (B) an interest
in the Global Note, the transfer of such interest may be affected only
through the book entry system maintained by the Depositary.
(ii) If the proposed transferor is an Agent Member, and the
Initial Note to be transferred consists of Physical Notes, upon
receipt by the Registrar of the documents referred to in clause (i)
and instructions given in accordance with the Depositary's and the
Registrar's procedures, the Registrar shall reflect on its books and
records the date and an increase in the principal amount at maturity
of the
29
Global Note in an amount equal to the principal amount at maturity of
the Physical Notes to be transferred, and the Trustee shall cancel the
Physical Note so transferred.
(c) Private Placement Legend. Upon the registration of transfer,
exchange or replacement of Senior Notes not bearing the Private Placement
Legend, the Registrar shall deliver Senior Notes that do not bear the Private
Placement Legend. Upon the registration of transfer, exchange or replacement
of Senior Notes bearing the Private Placement Legend, the Registrar shall
deliver only Senior Notes that bear the Private Placement Legend unless the
condition of paragraph (a)(i)(x) of this Section 2.10 exists or (ii) there is
delivered to the Registrar an Opinion of Counsel reasonably satisfactory to
LGII and the Trustee to the effect that neither such legend nor the related
restrictions on transfer are required in order to maintain compliance with
the provisions of the Securities Act.
(d) General. By its acceptance of any Senior Note bearing the Private
Placement Legend, each Holder of such a Senior Note acknowledges the
restrictions on transfer of such Senior Note set forth in this Indenture and
in the Private Placement Legend and agrees that it will transfer such Senior
Note only as provided in this Indenture.
The Registrar shall retain until such time as no Senior Notes remain
Outstanding copies of all letters, notices and other written communications
received pursuant to Section 2.09 or this Section 2.10. LGII shall have the
right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable
written notice to the Registrar.
SECTION 2.11. FORM OF CERTIFICATES TO BE DELIVERED.
Form of Certificate to be Delivered in Connection with Transfers to
Non-QIB Institutional Accredited Investors.
Xxxxxx Group International, Inc.
0000 Xxxxxxx Xxxxxx
Xxxxxxx, XX 00000
Ladies and Gentlemen:
We are delivering this letter in connection with our proposed purchase
of Senior Guaranteed Notes (the "SENIOR NOTES") of Xxxxxx Group
International, Inc. a Delaware corporation ("LGII"), guaranteed by The Xxxxxx
Group Inc., a body corporate under the laws of the Province of British
Columbia. We hereby confirm that:
(i) we are an institutional "ACCREDITED INVESTOR" within the
meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities Act of
1933, as amended (the "SECURITIES ACT") (an "ACCREDITED INVESTOR");
30
(ii) any purchase of Senior Notes by us will be for our own
account or for the account of one or more other Accredited Investors
as to which we exercise sole investment discretion;
(iii) we have such knowledge and experience in financial and
business matters that we are capable of evaluating the merits and
risks of purchasing Senior Notes and we and any accounts for which we
are acting are able to bear the economic risks of and an entire loss
of our or their investment in the Senior Notes;
(iv) we are not acquiring Senior Notes with a view to any
distribution thereof in a transaction that would violate the
Securities Act or the securities laws of any state of the United
States or any other applicable jurisdiction; PROVIDED that the
disposition of our property and the property of any accounts for which
we are acting as fiduciary shall remain at all times within our and
their control; and
(v) we acknowledge that the Senior Notes have not been
registered under the Securities Act and that none of the Senior Notes
may be offered or sold within the United States or to, or for the
benefit of, U.S. persons except as set forth below.
We agree, on our own behalf and on behalf of each account for which we
acquire any Senior Notes, that, for a period of two years after the original
issuance of the Senior Notes, such Senior Notes may be offered, resold,
pledged or otherwise transferred only (i) to LGII or any of its subsidiaries,
(ii) inside the United States to a person whom we reasonably believe to be a
qualified institutional buyer (as defined in Rule 144A under the Securities
Act) in compliance with Rule 144A under the Securities Act, (iii) inside the
United States to a person we reasonably believe to be an Accredited Investor
that, prior to such transfer, furnished to the trustee under the Indenture
relating to the Senior Notes (the "TRUSTEE") a signed letter containing
certain representations and agreements (a form of which can be obtained from
the Trustee), (iv) pursuant to the exemption from registration provided by
Rule 144 under the Securities Act (if available), or (v) pursuant to an
effective registration statement under the Securities Act, and, in each case,
in accordance with any applicable securities laws of any state of the United
States.
We understand that the Trustee will not be required to accept for
registration of transfer any Senior Notes acquired by us, except upon
presentation of evidence satisfactory to LGII and the Trustee that the
foregoing restrictions on transfer have been complied with. We further
understand that the Senior Notes purchased by us will be in the form of
definitive physical certificates and that such certificates will bear a
legend reflecting the substance of this paragraph. We further agree to
provide to any person acquiring any of the Senior Notes from us a notice
advising such person that resales of the Senior Notes are restricted as
stated herein and that certificates representing the Senior Notes will bear a
legend to that effect.
We acknowledge that you, LGII, the Trustee and others will rely upon our
acknowledgments, representations and agreements set forth herein, and we
agree to notify you
31
promptly in writing if any of our acknowledgments, representations or
agreements herein cease to be accurate and complete.
We represent to you that we have full power to make the foregoing
acknowledgments, representations and agreements on our own behalf and on
behalf of any investor account for which we are acting as a fiduciary or
agent.
THIS LETTER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK.
------------------------------------------------
(Name of Purchaser)
By:
---------------------------------------------
Name:
Title:
Address:
SECTION 2.12. OUTSTANDING SENIOR NOTES.
Senior Notes outstanding at any time are all the Senior Notes that have
been authenticated by the Trustee except those canceled by it, those
delivered to it for cancellation and those described in this Section as not
outstanding. A Senior Note does not cease to be outstanding because LGII or
any of its Affiliates holds the Senior Note.
If a Senior Note is replaced pursuant to SECTION 2.07 (other than a
mutilated Senior Note surrendered for replacement), it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Senior Note is held by a BONA FIDE purchaser. A mutilated Senior
Note ceases to be outstanding upon surrender of such Senior Note and
replacement thereof pursuant to Section 2.07.
If on a Redemption Date or a Maturity Date the Paying Agent (other than
LGII or an Affiliate of LGII) holds cash or U.S. Government Obligations
sufficient to pay all of the principal and interest due on the Senior Notes
payable on that date, and is not prohibited from paying such cash or U.S.
Government Obligations to the Holders of such Senior Notes pursuant to the
terms of this Indenture, then on and after that date such Senior Notes cease
to be outstanding and interest on them shall cease to accrue.
SECTION 2.13. TREASURY NOTES.
In determining whether the Holders of the required principal amount of
Senior Notes have concurred in any direction, waiver or consent, Senior Notes
owned by LGII or any of its Affiliates shall be disregarded, except that, for
the purposes of determining whether the Trustee shall be
32
protected in relying on any such direction, waiver or consent, only Senior Notes
that the Trustee knows or has reason to know are so owned shall be disregarded.
SECTION 2.14. TEMPORARY NOTES.
Until definitive Senior Notes are prepared and ready for delivery, LGII
may prepare and the Trustee shall authenticate temporary Senior Notes.
Temporary Senior Notes shall be substantially in the form of definitive
Senior Notes but may have variations that LGII considers appropriate for
temporary Senior Notes. Without unreasonable delay, LGII shall prepare and
the Trustee shall authenticate definitive Senior Notes in exchange for
temporary Senior Notes. Until such exchange, temporary Senior Notes shall be
entitled to the same rights, benefits and privileges as definitive Senior
Notes.
SECTION 2.15. CANCELLATION.
LGII at any time may deliver Senior Notes to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee
any Senior 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 LGII or an Affiliate of LGII), and no one else, shall
promptly cancel and, at the written direction of LGII, shall dispose of all
Senior Notes surrendered for transfer, exchange, payment or cancellation.
Subject to Section 2.08, LGII may not issue new Senior Notes to replace
Senior Notes that it has paid or delivered to the Trustee for cancellation.
If LGII shall acquire any of the Senior Notes, such acquisition shall not
operate as a redemption or satisfaction of the Indebtedness represented by
such Senior Notes unless and until the same are surrendered to the Trustee
for cancellation pursuant to this Section 2.15.
SECTION 2.16. DEFAULTED INTEREST.
If LGII defaults on a payment of interest on the Senior Notes of any
series, it shall pay the defaulted interest, plus (to the extent permitted by
law) any interest payable on the defaulted interest, in accordance with the
terms hereof, to the persons who are Holders on a subsequent special record
date, which date shall be at least five Business Days prior to the payment
date. LGII shall fix such special record date and payment date in a manner
satisfactory to the Trustee. At least 15 days before such special record
date, LGII shall mail to each Holder a notice that states the special record
date, the payment date and the amount of defaulted interest, and interest
payable on such defaulted interest, if any, to be paid.
SECTION 2.17. CUSIP NUMBER.
LGII in issuing the Senior Notes of each series may use a "CUSIP" number
with respect to each such series (if then generally in use), and if so, the
Trustee may use the CUSIP numbers in notices of redemption or exchange as a
convenience to Holders; PROVIDED, HOWEVER, that any such notice may state
that no representation is made as to the correctness or accuracy of the CUSIP
number printed in the notice or on the Senior Notes, and that reliance may be
placed only on the
33
other identification numbers printed on the Senior Notes. LGII will promptly
notify the Trustee of any change in the CUSIP number.
SECTION 2.18. DEPOSIT OF MONEYS.
On or before each Interest Payment Date and Maturity Date, LGII shall
deposit with the Trustee or Paying Agent in immediately available funds money
sufficient to make cash payments, if any, due on such Interest Payment Date
or Maturity Date, as the case may be, in a timely manner which permits the
Paying Agent to remit payment to the Holders on such Interest Payment Date or
Maturity Date, as the case may be.
ARTICLE 3
REDEMPTION OF SENIOR NOTES
SECTION 3.01. NOTICES TO THE TRUSTEE.
Each series of Senior Notes may provide that such series of Senior Notes
is redeemable in whole or in part at the option of LGII. If LGII is
permitted to redeem Senior Notes of any series pursuant to the terms of such
series of Senior Notes, it shall notify the Trustee of the Redemption Date
and principal amount of Senior Notes to be redeemed.
LGII shall notify the Trustee by an Officer's Certificate, stating that
such redemption will comply with the provisions hereof and of such series of
Senior Notes, of any redemption at least 45 days before the Redemption Date.
SECTION 3.02. SELECTION OF SENIOR NOTES TO BE REDEEMED.
If less than all the Senior Notes of any series are to be redeemed, the
particular Senior Notes or portions thereof to be redeemed shall be selected
from the outstanding Senior Notes of such series not previously called for
redemption either (x) pro rata, by lot or by such other method as the Trustee
considers to be fair and appropriate or (y) in such manner as complies with
the requirements of the principal national securities exchange, if any, on
which the Senior Notes being redeemed are listed. The amounts to be redeemed
shall be equal to $1,000 or any integral multiple thereof.
The Trustee shall promptly notify LGII and the Registrar in writing of
the Senior Notes selected for redemption and, in the case of any Senior Notes
selected for partial redemption, the principal amount thereof to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Senior Notes shall relate,
in the case of any Senior Note redeemed or to be redeemed only in part, to
the portion of the principal amount of such Senior Note which has been or is
to be redeemed.
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SECTION 3.03. NOTICE OF REDEMPTION.
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 10 nor more than 60 days prior to the
Redemption Date, to each Holder of Senior Notes to be redeemed, at the
address of such Holder appearing in the Senior Note register maintained by
the Registrar.
All notices of redemption shall identify the Senior Notes to be redeemed
and shall state:
(a) the Redemption Date;
(b) the Redemption Price and the amount of accrued interest, if any, to
be paid;
(c) that, unless LGII defaults in making the redemption payment,
interest on Senior Notes called for redemption ceases to accrue on and after
the Redemption Date, and the only remaining right of the Holders of such
Senior Notes is to receive payment of the Redemption Price upon surrender to
the Paying Agent of the Senior Notes redeemed;
(d) if any Senior Note is to be redeemed in part, the portion of the
principal amount (equal to $1,000 or any integral multiple thereof) of such
Senior Note to be redeemed and that on and after the Redemption Date, upon
surrender for cancellation of such original Senior Note to the Paying Agent,
a new Senior Note or Senior Notes in the aggregate principal amount equal to
the unredeemed portion thereof will be issued without charge to the Holder;
(e) that Senior Notes called for redemption must be surrendered to the
Paying Agent to collect the Redemption Price and the name and address of the
Paying Agent;
(f) the CUSIP number, if any, relating to such Senior Notes, but no
representation is made as to the correctness or accuracy of any such CUSIP
numbers; and
(g) the paragraph of the Senior Notes pursuant to which the Senior
Notes are being redeemed.
Notice of redemption of Senior Notes to be redeemed at the election of
LGII shall be given by LGII or, at LGII's written request, by the Trustee in
the name and at the expense of LGII.
35
SECTION 3.04. EFFECT OF NOTICE OF REDEMPTION.
Once notice of redemption is mailed, Senior Notes called for redemption
become due and payable on the Redemption Date and at the Redemption Price.
Upon surrender to the Paying Agent, such Senior Notes called for redemption
shall be paid at the Redemption Price plus accrued and unpaid interest to the
Redemption Date.
SECTION 3.05. DEPOSIT OF REDEMPTION PRICE.
On or prior to any Redemption Date, LGII shall deposit with the Paying
Agent an amount of money in same day funds sufficient to pay the Redemption
Price of, and accrued interest on, all the Senior Notes or portions thereof
which are to be redeemed on that date, other than Senior Notes or portions
thereof called for redemption on that date which have been delivered by LGII
of the Trustee for cancellation.
If LGII complies with the preceding paragraph, then, unless LGII
defaults in the payment of such Redemption Price, interest on the Senior
Notes to be redeemed will cease to accrue on and after the applicable
Redemption Date, whether or not such Senior Notes are presented for payment.
If any Senior Note called for redemption shall not be so paid upon surrender
thereof for redemption, the principal, premium, if any, and, to the extent
lawful, accrued and unpaid interest thereon shall, until paid, bear interest
from the Redemption Date at the rate provided in the Senior Notes.
SECTION 3.06. SENIOR NOTES REDEEMED OR PURCHASED IN PART.
Upon surrender to the Paying Agent of a Senior Note which is to be
redeemed in part, LGII shall execute, the Guarantor shall Guarantee and the
Trustee shall authenticate and deliver to the Holder of such Senior Note
without service charge, a new Senior Note or Senior Notes (accompanied by a
notation of Guarantee duly endorsed by the Guarantor), of any authorized
denomination as requested by such Holder in aggregate principal amount equal
to, and in exchange for, the unredeemed portion of the principal of the
Senior Note so surrendered that is not redeemed.
ARTICLE 4
COVENANTS
Each of LGII and the Guarantor hereby jointly and severally covenant as
follows, from and after the Closing Date and continuing so long as any amount
remains unpaid on any Senior Note:
36
SECTION 4.01. PAYMENT OF SENIOR NOTES.
Each of LGII and the Guarantor will pay, or cause to be paid, the
principal of and interest on the Senior Notes of each series on the dates and
in the manner provided in the Senior Notes and this Indenture. An
installment of principal or interest shall be considered paid on the date due
if the Trustee or Paying Agent (other than LGII, the Guarantor, a Subsidiary
of LGII, the Guarantor or any Affiliate thereof) holds on that date money
designated and set aside for and suf ficient to pay the installment in a
timely manner and is not prohibited from paying such money to the Holders of
the Senior Notes pursuant to the terms of this Indenture.
LGII or the Guarantor, as the case may be, will pay interest on overdue
principal at the rate and in the manner provided in the Senior Notes; it
shall pay interest on overdue installments of interest at the same rate and
in the same manner, to the extent lawful.
SECTION 4.02. MAINTENANCE OF OFFICE OR AGENCY.
LGII will maintain in the Borough of Manhattan, The City of New York, an
office or agency where Senior Notes of each series may be surrendered for
registration of transfer or exchange or for presentation for payment and
where notices and demands to or upon LGII in respect of the Senior Notes and
this Indenture may be served. LGII will 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 LGII shall fail to maintain any such required office
or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
address of the Trustee as set forth in Section 11.02.
LGII may also from time to time designate one or more other offices or
agencies where the Senior 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 LGII of its obligation to maintain an office or agency in the Borough
of Manhattan, The City of New York, for such purposes. LGII will 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.
LGII hereby initially designates the office of the Trustee located at
Xxxxxxx Square, 000 Xxxxxx Xxxxxx, Xxxxxxxx, Xxxxxxxxxxx 00000, as such
office of LGII in accordance with this Section 4.02.
SECTION 4.03. CORPORATE EXISTENCE.
Subject to Article Five, each of LGII and the Guarantor shall do or
cause to be done all things necessary to and will cause each Restricted
Subsidiary to, preserve and keep in full force and effect the corporate or
partnership existence and rights (charter and statutory), licenses and/or
franchises of the Guarantor and the Restricted Subsidiaries (including,
without limitation, LGII); PROVIDED, HOWEVER, that the Guarantor and the
Restricted Subsidiaries shall not be required to preserve any such rights,
licenses or franchises if the Board of Directors of the Guarantor shall
37
reasonably determine that (x) the preservation thereof is no longer desirable
in the conduct of the business of the Guarantor and its Subsidiaries taken as
a whole and (y) the loss thereof is not materially adverse to either the
Guarantor and its Subsidiaries taken as a whole or to the ability of LGII or
the Guarantor to otherwise satisfy its obligations hereunder.
SECTION 4.04. PAYMENT OF TAXES AND OTHER CLAIMS.
Each of LGII and the Guarantor will pay or discharge or cause to be paid
or discharged, before the same shall become delinquent, (a) all taxes,
assessments and governmental charges levied or imposed upon the Guarantor or
any of its Restricted Subsidiaries (including, without limitation, LGII) or
upon the income, profits or property of the Guarantor or any of its
Restricted Subsidiaries, and (b) all lawful claims for labor, materials and
supplies which, if unpaid, might by law become a Lien upon the property of
the Guarantor or any Restricted Subsidiary of the Guarantor; PROVIDED,
HOWEVER, that neither LGII nor the Guarantor shall be required to pay or
discharge or cause to be paid or discharged any such tax, assessment, charge
or claim the amount, applicability or validity of which is being contested in
good faith by appropriate proceedings and for which adequate provision has
been made or where the failure to effect such payment or discharge is not
adverse in any material respect to the Guarantor.
SECTION 4.05. MAINTENANCE OF PROPERTIES; INSURANCE; BOOKS AND RECORDS;
COMPLIANCE WITH LAW.
(a) Each of LGII and the Guarantor shall, and shall cause each of its
Restricted Subsidiaries (including, without limitation, LGII) to, cause all
properties and assets 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, additions, betterments and improvements thereto, as
shall be reasonably necessary for the proper conduct of its business;
PROVIDED, HOWEVER, that nothing in this Section 4.05(a) shall prevent the
Guarantor or any of its Restricted Subsidiaries from discontinuing the
operation and maintenance of any of its properties or assets if such
discontinuance is, in the judgment of the Board of Directors of the Guarantor
or such Restricted Subsidiary, desirable in the conduct of its business and
if such discontinuance is not materially adverse to either the Guarantor and
its Subsidiaries taken as a whole or the ability of LGII or the Guarantor to
otherwise satisfy its obligations hereunder.
(b) Each of LGII and the Guarantor shall, and shall cause each of its
Restricted Subsidiaries (including, without limitation, LGII) to, maintain
with financially sound and reputable insurers such insurance as may be
required by law (other than with respect to any environmental impairment
liability insurance not commercially available) and such other insurance to
such extent and against such hazards and liabilities, as is customarily
maintained by companies similarly situated (which may include self-insurance
in the same form as is customarily maintained by companies similarly
situated).
(c) Each of LGII and the Guarantor shall, and shall cause each of its
Restricted Subsidiaries (including, without limitation, LGII) to, keep proper
books of record and account, in
38
which full and correct entries shall be made of all business and financial
transactions of the Guarantor and each Restricted Subsidiary of the Guarantor
and reflect on its financial statements adequate accruals and appropriations
to reserves, all in accordance with GAAP consistently applied to the
Guarantor and its Subsidiaries taken as a whole.
(d) Each of LGII and the Guarantor shall and shall cause each of its
Restricted Subsidiaries (including, without limitation, LGII) to comply with
all statutes, laws, ordinances, or government rules and regulations to which
it is subject, non-compliance with which would materially adversely affect
the business, earnings, properties, assets or condition (financial or
otherwise) of the Guarantor and its Subsidiaries taken as a whole.
SECTION 4.06. COMPLIANCE CERTIFICATE.
(a) Each of LGII and the Guarantor will deliver to the Trustee within
60 days after the end of each of the Guarantor's first three fiscal quarters
and within 90 days after the end of the Guarantor's fiscal year an Officers'
Certificate stating whether or not the signers know of any Default or Event
of Default under this Indenture by LGII or the Guarantor or an event which,
with notice or lapse of time or both, would constitute a default by LGII or
the Guarantor under any Pari Passu Indebtedness that occurred during such
fiscal period. If they do know of such a Default, Event of Default or
default, the certificate shall describe any such Default, Event of Default or
default and its status. The first certificate to be delivered pursuant to
this Section 4.06(a) shall be for the first fiscal quarter of the Guarantor
beginning after the Issue Date. The Guarantor shall also deliver a cer
tificate to the Trustee at least annually from its principal executive,
financial or accounting officer as to his or her knowledge of LGII's and the
Guarantor's compliance with all conditions and covenants under this
Indenture, such compliance to be determined without regard to any period of
grace or requirement of notice provided herein or therein.
(b) The Guarantor shall deliver to the Trustee within 90 days after the
end of each fiscal year a written statement by LGII's and the Guarantor's
independent chartered accountants stating (A) that their audit examination
has included a review of the terms of this Indenture and the Senior Notes as
they relate to accounting matters, and (B) whether, in connection with their
audit examination, any Default or Event of Default under this Indenture or an
event which, with notice or lapse of time or both, would constitute a default
under any Pari Passu Indebtedness has come to their attention and, if such a
Default, Event of Default or a default under any Pari Passu Indebtedness has
come to their attention, specifying the nature and period of existence
thereof; PROVIDED, HOWEVER, that, without any restriction as to the scope of
the audit examination, such independent certified public accountants shall
not be liable by reason of any failure to obtain knowledge of any such
Default, Event of Default or a default under any Pari Passu Indebtedness that
would not be disclosed in the course of an audit examination conducted in
accordance with GAAP.
(c) Each of LGII and the Guarantor will deliver to the Trustee as soon
as possible, and in any event within 10 days after LGII and/or the Guarantor,
as the case may be, becomes aware
39
or should reasonably have become aware of the occurrence of any Default,
Event of Default or an event which, with notice or lapse of time or both,
would constitute a default by LGII and/or the Guarantor, as the case may be,
under any Indebtedness, an Officers' Certificate specifying such Default,
Event of Default or default and what action LGII and/or the Guarantor, as the
case may be, is taking or proposes to take with respect thereto.
SECTION 4.07. LIMITATION ON INDEBTEDNESS.
The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to, directly or
indirectly, create, incur, issue, assume, guarantee or in any manner become
directly or indirectly liable, contingently or otherwise, for the payment of
(collectively, to "INCUR") any Indebtedness (including, without limitation,
any Acquired Indebtedness) other than Permitted Indebtedness.
Notwithstanding the foregoing limitations, the Guarantor and LGII (and any
Wholly-Owned Subsidiary with respect to Seller Financing Indebtedness) will
be permitted to incur Indebtedness (including, without limitation, Acquired
Indebtedness) if at the time of such incurrence, and after giving PRO FORMA
effect thereto, the Consolidated Fixed Charge Coverage Ratio of the Guarantor
is at least equal to 2.25 : 1.
SECTION 4.08. LIMITATION ON RESTRICTED PAYMENTS.
The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to, directly or indirectly:
(a) declare or pay any dividend or make any other distribution
or payment on or in respect of Capital Stock of the Guarantor or any
of its Restricted Subsidiaries or any payment made to the direct or
indirect holders (in their capacities as such) of Capital Stock of the
Guarantor or any of its Restricted Subsidiaries (other than (x)
dividends or distributions payable solely in Capital Stock of the
Guarantor (other than Redeemable Capital Stock) or in options,
warrants or other rights to purchase Capital Stock of the Guarantor
(other than Redeemable Capital Stock) and (y) dividends or other
distributions to the extent declared or paid to the Guarantor or any
Wholly-Owned Subsidiary of the Guarantor),
(b) purchase, redeem, defease or otherwise acquire or retire for
value any Capital Stock of the Guarantor or any of its Restricted
Subsidiaries (other than any such Capital Stock of a Wholly-Owned
Subsidiary of the Guarantor),
(c) make any principal payment on, or purchase, defease,
repurchase, redeem or otherwise acquire or retire for value, prior to
any scheduled maturity, scheduled repayment, scheduled sinking fund
payment or other Stated Maturity, any Indebtedness that is subordinate
or junior in right of payment to the Senior Notes or Pari Passu
Indebtedness (other than any such subordinated or Pari Passu
Indebtedness owned by the Guarantor or a Wholly-Owned Subsidiary of
the Guarantor), or
40
(d) make any Investment (other than any Permitted Investment)
in any person,
(such payments or Investments described in the preceding clauses (a),
(b), (c) and (d) are collectively referred to as "RESTRICTED PAYMENTS"),
unless, at the time of and after giving effect to the proposed Restricted
Payment (the amount of any such Restricted Payment, if other than cash, shall
be the Fair Market Value on the date of such Restricted Payment of the
asset(s) proposed to be transferred by the Guarantor or such Restricted
Subsidiary, as the case may be, pursuant to such Restricted Payment), (A) no
Default or Event of Default shall have occurred and be continuing, (B)
immediately prior to and after giving effect to such Restricted Payment, the
Guarantor would be able to incur $1.00 of additional Indebtedness pursuant to
Section 4.07 (assuming a market rate of interest with respect to such
additional Indebtedness) and (C) the aggregate amount of all Restricted
Payments declared or made from and after the Measurement Date would not
exceed the sum of (1) 50% of the aggregate Consolidated Net Income of the
Guarantor accrued on a cumulative basis during the period beginning on the
first day of the fiscal quarter of the Guarantor during which the Measurement
Date occurs and ending on the last day of the fiscal quarter of the Guarantor
immediately preceding the date of such proposed Restricted Payment, which
period shall be treated as a single accounting period (or, if such aggregate
cumulative Consolidated Net Income of the Guarantor for such period shall be
a deficit, minus 100% of such deficit) PLUS (2) the aggregate net cash
proceeds received by the Guarantor or LGII (without duplication) either (x)
as capital contributions to the Guarantor or LGII (without duplication) after
the Measurement Date from any person (other than the Guarantor, LGII or a
Restricted Subsidiary of the Guarantor or LGII, as the case may be) or (y)
from the issuance or sale of Capital Stock (excluding Redeemable Capital
Stock, but including Capital Stock issued upon the conversion of convertible
Indebtedness or from the exercise of options, warrants or rights to purchase
Capital Stock (other than Redeemable Capital Stock)) of the Guarantor or LGII
(without duplication) to any person (other than to the Guarantor, LGII or a
Restricted Subsidiary of the Guarantor or LGII, as the case may be) after the
Measurement Date PLUS (3) in the case of the disposition or repayment of any
Investment constituting a Restricted Payment made after the Measurement Date
(excluding any Investment described in clause (v) of the following
paragraph), an amount equal to the lesser of the return of capital with
respect to such Investment and the cost of such Investment less, in either
case, the cost of the disposition of such Investment PLUS (4) the sum of
$15,000,000. For purposes of the preceding clause (C)(2), the value of the
aggregate net proceeds received by the Guarantor or LGII (without
duplication) upon the issuance of Capital Stock upon the conversion of
convertible Indebtedness or upon the exercise of options, warrants or rights
will be the net cash proceeds received upon the issuance of such
Indebtedness, options, warrants or rights plus the incremental cash amount
received by the Guarantor or LGII (without duplication) upon the conversion
or exercise thereof.
None of the foregoing provisions will prohibit (i) the payment of any
dividend within 60 days after the date of its declaration, if at the date of
declaration such payment would be permitted by the foregoing paragraph; (ii)
so long as no Default or Event of Default shall have occurred and be
continuing, the redemption, repurchase or other acquisition or retirement of
any
41
shares of any class of Capital Stock of the Guarantor, LGII or any Restricted
Subsidiary of the Guarantor or LGII in exchange for, or out of the net cash
proceeds of, a substantially concurrent (x) capital contribution to the
Guarantor or LGII from any person (other than a Related Obligor) or (y) issue
and sale of other shares of Capital Stock (other than Redeemable Capital
Stock) of the Guarantor or LGII to any person (other than to a Related
Obligor); (iii) so long as no Default or Event of Default shall have occurred
and be continuing, any redemption, repurchase or other acquisition or
retirement of Indebtedness that is subordinate or junior in right of payment
to the Senior Notes and the Guarantee by exchange for, or out of the net cash
proceeds of, a substantially concurrent (x) capital contribution to the
Guarantor or LGII from any person (other than a Related Obligor) or (y) issue
and sale of (1) Capital Stock (other than Redeemable Capital Stock) of the
Guarantor or LGII to any person (other than a Related Obligor); PROVIDED,
HOWEVER, that the amount of any such net proceeds that are utilized for any
such redemption, repurchase or other acquisition or retirement shall be
excluded from clause (C)(2) of the preceding paragraph; or (2) Indebtedness
of the Guarantor or LGII issued to any person (other than a Related Obligor),
so long as such Indebtedness is Pari Passu Indebtedness or Indebtedness that
is subordinate or junior in right of payment to the Senior Notes and the
Guarantee in the same manner and at least to the same extent as the
Indebtedness so purchased, exchanged, redeemed, acquired or retired; (iv) so
long as no Default or Event of Default shall have occurred and be continuing,
any redemption, repurchase or other acquisition or retirement of Pari Passu
Indebtedness by exchange for, or out of the net cash proceeds of, a
substantially concurrent (x) capital contribution to the Guarantor or LGII
from any person (other than a Related Obligor) or (y) issue and sale of (1)
Capital Stock (other than Redeemable Capital Stock) of the Guarantor or LGII
to any person (other than a Related Obligor); PROVIDED, HOWEVER, that the
amount of any such net proceeds that are utilized for any such redemption,
repurchase or other acquisition or retirement shall be excluded from clause
(C)(2) of the preceding paragraph; or (2) Indebtedness of the Guarantor or
LGII issued to any person (other than a Related Obligor), so long as such
Indebtedness is Pari Passu Indebtedness or Indebtedness that is subordinate
or junior in right of payment to the Senior Notes and the Guarantee in the
same manner and at least to the same extent as the Indebtedness so purchased,
exchanged, redeemed, acquired or retired; (v) Investments constituting
Restricted Payments made as a result of the receipt of consideration that
consists of cash or Cash Equivalents from any Asset Sale made pursuant to and
in compliance with Section 4.12; (vi) so long as no Default or Event of
Default has occurred and is continuing, repurchases by the Guarantor of
Common Stock of the Guarantor from employees of the Guarantor or their
authorized representatives upon the death, disability or termination of
employment of such employees, in an aggregate amount not exceeding
$10,000,000 in any calendar year; (vii) Investments constituting Restricted
Payments that are permitted by subparagraphs (iv) and (v) of the proviso to
Section 4.13; and (viii) the declaration or the payment of dividends on, or
the scheduled purchase or redemption of, the Preferred Securities of a
Special Finance Subsidiary or the Series C Preferred Shares, of the
Guarantor. In computing the amount of Restricted Payments previously made
for purposes of clause (C) of the preceding paragraph, Restricted Payments
made under the preceding clauses (v), (vi) and (vii) shall be included and
those under clauses (i), (ii), (iii), (iv) and (viii) shall not be so
included. For purposes of this Section 4.08
42
only, the term "RELATED OBLIGOR" shall mean the Guarantor, LGII or a
Restricted Subsidiary of the Guarantor or LGII.
SECTION 4.09. LIMITATION ON ISSUANCES AND SALE OF PREFERRED STOCK BY
RESTRICTED SUBSIDIARIES.
The Guarantor (a) will not permit any of its Restricted Subsidiaries
(including, without limitation, LGII) to issue any Preferred Stock (other
than (i) Preferred Stock issued to the Guarantor or a Wholly-Owned Subsidiary
of the Guarantor and (ii) Preferred Securities of a Special Finance
Subsidiary); and (b) will not permit any person to own any Preferred Stock of
any Restricted Subsidiary of the Guarantor (other than (i) Preferred Stock
owned by the Guarantor or a Wholly-Owned Subsidiary of the Guarantor and (ii)
Preferred Securities of a Special Finance Subsidiary); PROVIDED, HOWEVER,
that this covenant shall not prohibit the issuance and sale of (x) all, but
not less than all, of the issued and outstanding Capital Stock of any
Restricted Subsidiary of the Guarantor owned by the Guarantor or any of its
Restricted Subsidiaries in compliance with the other provisions of this
Indenture or (y) directors' qualifying shares or investments by foreign
nationals mandated by applicable law.
SECTION 4.10. LIMITATION ON LIENS.
The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to, create, incur, assume
or suffer to exist any Liens of any kind against or upon any of its property
or assets, or any proceeds therefrom where the aggregate amount of
Indebtedness secured by any such Liens, together with the aggregate amount of
property subject to any Sale-Leaseback Transactions of the Guarantor and its
Restricted Subsidiaries (other than Permitted Sale-Leaseback Transactions),
exceeds 10% of the Guarantor's Consolidated Net Worth, unless (x) in the case
of Liens securing Indebtedness that is subordinate or junior in right of
payment to the Senior Notes, the Senior Notes are secured by a Lien on such
property, assets or proceeds that is senior in priority to such Liens and (y)
in all other cases, the Senior Notes are equally and ratably secured except
for (a) Liens existing as at the Measurement Date; (b) Liens securing the
Senior Notes or the Guarantee; (c) Liens in favor of the Guarantor, LGII or
any Wholly-Owned Subsidiary; (d) Liens securing Indebtedness which is
incurred to refinance Indebtedness which has been secured by a Lien permitted
under the provisions of this Indenture and which has been incurred in
accordance with the provisions of the Indenture; PROVIDED, HOWEVER, that such
Liens do not extend to or cover any property or assets of the Guarantor or
any of its Restricted Subsidiaries not securing the Indebtedness so
refinanced; and (e) Permitted Liens.
SECTION 4.11. CHANGE OF CONTROL.
Upon the occurrence of a Change of Control, LGII will be, and the
Guarantor will ensure that LGII will be, obligated to make an offer to
purchase (a "CHANGE OF CONTROL OFFER"), and shall purchase, on a Business Day
(the "CHANGE OF CONTROL PURCHASE DATE") not more than 60 nor less than 30
days following the occurrence of the Change of Control, all of the then
outstanding Senior Notes of each series properly tendered and not withdrawn
at a purchase price (the "CHANGE OF CONTROL PURCHASE PRICE") equal to 101% of
the principal amount thereof plus
43
accrued and unpaid interest, if any, to the Change of Control Purchase Date.
The Change of Control Offer is required to remain open for at least 20
Business Days and until the close of business on the Change of Control
Purchase Date.
Notice of a Change of Control Offer shall be mailed by LGII not later
than the 30th day after the date of occurrence of the Change of Control to
the Holders of Senior Notes at their last registered addresses with a copy to
the Trustee and the Paying Agent. The Change of Control Offer shall remain
open from the time of mailing for at least 20 Business Days and until 5:00
p.m., New York City time, on the Change of Control Purchase Date. The
notice, which shall govern the terms of the Change of Control Offer, shall
include such disclosures as are required by law and shall state:
(a) that the Change of Control Offer is being made pursuant to
this Section 4.11 and that all Senior Notes validly tendered into the
Change of Control Offer and not withdrawn will be accepted for
payment;
(b) the purchase price (including the amount of accrued
interest, if any) for each Senior Note, the Change of Control Purchase
Date and the date on which the Change of Control Offer expires;
(c) that any Senior Note not tendered for payment will continue
to accrue interest in accordance with the terms thereof;
(d) that, unless LGII shall default in the payment of the
purchase price, any Senior Note accepted for payment pursuant to the
Change of Control Offer shall cease to accrue interest after the
Change of Control Purchase Date;
(e) that Holders electing to have Senior Notes purchased
pursuant to a Change of Control Offer will be required to surrender
their Senior Notes to the Paying Agent at the address specified in
the notice prior to 5:00 p.m., New York City time, on the Change of
Control Purchase Date and must complete any form of letter of
transmittal proposed by LGII and reasonably acceptable to the Trustee
and the Paying Agent;
(f) that Holders of Senior Notes will be entitled to withdraw
their election if the Paying Agent receives, not later than 5:00 p.m.,
New York City time, on the Change of Control Purchase Date, a tested
telex, facsimile transmission or letter setting forth the name of the
Holder, the principal amount of Senior Notes the Holder delivered for
purchase, the Senior Note certificate number (if any) and a statement
that such Holder is withdrawing its election to have such Senior Notes
purchased;
44
(g) that Holders whose Senior Notes are purchased only in part
will be issued Senior Notes equal in principal amount to the
unpurchased portion of the Senior Notes surrendered;
(h) the instructions that Holders must follow in order to
tender their Senior Notes; and
(i) information concerning the business of LGII and the
Guarantor, the most recent annual and quarterly reports of the
Guarantor filed with the Commission pursuant to the Exchange Act (or,
if the Guarantor is not then permitted to file any such reports with
the Commission, the comparable reports prepared pursuant to
Section 4.17), a description of material developments in the business
of LGII and the Guarantor, information with respect to PRO FORMA
historical financial information after giving effect to such Change of
Control and such other information concerning the circumstances and
relevant facts regarding such Change of Control Offer as would be
material to a Holder of Senior Notes in connection with the decision
of such Holder as to whether or not it should tender Senior Notes
pursuant to the Change of Control Offer.
On the Change of Control Purchase Date, LGII shall (i) accept for
payment Senior Notes or portions thereof validly tendered pursuant to the
Change of Control Offer, (ii) deposit with the Paying Agent money, in
immediately avail able funds, sufficient to pay the purchase price of all
Senior Notes or portions thereof so tendered and accepted and (iii) deliver
to the Trustee the Senior Notes so accepted together with an Officers'
Certificate setting forth the Senior Notes or portions thereof tendered to
and accepted for payment by LGII. The Paying Agent shall promptly mail or
deliver to the Holders of Senior Notes so accepted payment in an amount equal
to the purchase price, and the Trustee shall promptly authenticate and mail
or deliver to such Holders a new Senior Note equal in principal amount to any
unpurchased portion of the Senior Note surrendered. Any Senior Notes not so
accepted shall be promptly mailed or delivered by LGII to the Holder thereof.
LGII will publicly announce the results of the Change of Control Offer not
later than the first Business Day following the Change of Control Purchase
Date.
If a Change of Control occurs and LGII fails to pay the Purchase Price
for all Senior Notes properly tendered and not withdrawn, the Guarantor will
be obliged to purchase all such Senior Notes at the Change of Control
Purchase Price on the Change of Control Purchase Date in compliance with the
requirements applicable to a Change of Control Offer made by LGII.
LGII shall not be required to make a Change of Control Offer upon a
Change of Control if a third party makes the Change of Control Offer in a
manner, at the times and otherwise in compliance with the requirements
applicable to a Change of Control Offer made by LGII and purchases all Senior
Notes validly tendered and not withdrawn under such Change of Control Offer.
45
LGII and the Guarantor will comply, to the extent applicable, with the
requirements of Section 14(e) of the Exchange Act, and any other securities
laws or regulations in connection with the repurchase of Senior Notes
pursuant to a Change of Control Offer.
SECTION 4.12. DISPOSITION OF PROCEEDS OF ASSET SALES.
(a) The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) or First Capital Life
Insurance Company of Louisiana, National Capital Life Insurance Company,
Security Industrial Insurance Company, Security Industrial Fire Insurance
Company or any successors to such Subsidiaries to, make any Asset Sale unless
(a) the Guarantor 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 of the shares or assets sold or otherwise disposed of and (b) at
least 75% of such consideration consists of cash or Cash Equivalents. To the
extent the Net Cash Proceeds of any Asset Sale are not required to be applied
to repay, and permanently reduce the commitments under, the Credit Agreements
(as required by the terms thereof) or any other Pari Passu Indebtedness, or
are not so applied, the Guarantor or such Restricted Subsidiary, as the case
may be, may, within 180 days of such Asset Sale, apply such Net Cash Proceeds
to an investment in properties and assets that replace the properties and
assets that were the subject of such Asset Sale or in properties and assets
that will be used in the business of the Guarantor and its Restricted
Subsidiaries existing on the Issue Date or in businesses reasonably related
thereto ("REPLACEMENT ASSETS"). Any Net Cash Proceeds from any Asset Sale
that are neither used to repay, and permanently reduce the commitments under,
the Credit Agreements nor invested in Replacement Assets within the 180-day
period described above constitute "EXCESS PROCEEDS" subject to disposition as
provided below.
(b) When the aggregate amount of Excess Proceeds equals or exceeds
$10,000,000, the Guarantor shall cause LGII to make an offer to purchase (an
"ASSET SALE OFFER"), from all holders of each series of the Senior Notes, not
more than 40 Business Days thereafter, an aggregate principal amount of
Senior Notes equal to such Excess Proceeds, at a price in cash equal to 100%
of the outstanding principal amount thereof plus accrued and unpaid interest,
if any, to the purchase date (the Asset Sale Offer Price").
(c) Notice of an Asset Sale Offer shall be mailed by LGII to all
Holders of Senior Notes not less than 20 Business Days nor more than 40
Business Days before the Asset Sale Purchase Date at their last registered
address with a copy to the Trustee and the Paying Agent. The Asset Sale
Offer shall remain open from the time of mailing for at least 20 Business
Days and until at least 5:00 p.m., New York City time, on the Asset Sale
Purchase Date. The notice, which shall govern the terms of the Asset Sale
Offer, shall include such disclosures as are required by law and shall state:
(1) that the Asset Sale Offer is being made pursuant to this
Section 4.12;
46
(2) the Asset Sale Offer Price (including the amount of accrued
interest, if any) for each Senior Note, the Asset Sale Purchase Date
and the date on which the Asset Sale Offer expires;
(3) that any Senior Note not tendered or accepted for payment
will continue to accrue interest in accordance with the terms thereof;
(4) that, unless LGII shall default in the payment of the Asset
Sale Offer Price, any Senior Note accepted for payment pursuant to the
Asset Sale Offer shall cease to accrue interest after the Asset Sale
Purchase Date;
(5) that Holders electing to have Senior Notes purchased
pursuant to an Asset Sale Offer will be required to surrender their
Senior Notes to the Paying Agent at the address specified in the
notice prior to 5:00 p.m., New York City time, on the Asset Sale
Purchase Date and must complete any form of letter of transmittal
proposed by LGII and reasonably acceptable to the Trustee and the
Paying Agent;
(6) that Holders will be entitled to withdraw their election if
the Paying Agent receives, not later than 5:00 p.m., New York City
time, on the Asset Sale Purchase Date, a tested telex, facsimile
transmission or letter setting forth the name of the Holder, the
principal amount of Senior Notes the Holder delivered for purchase,
the Senior Note certificate number (if any) and a statement that such
Holder is withdrawing its election to have such Senior Notes
purchased;
(7) that if Senior Notes in a principal amount in excess of the
Holder's PRO RATA share of the amount of Excess Proceeds are tendered
pursuant to the Asset Sale Offer, LGII shall purchase Senior Notes on
a PRO RATA basis among the Senior Notes tendered (with such
adjustments as may be deemed appropriate by LGII so that only Senior
Notes in denominations of $1,000 or integral multiples of $1,000 shall
be acquired);
(8) that Holders whose Senior Notes are purchased only in part
will be issued new Senior Notes equal in principal amount to the
unpurchased portion of the Senior Notes surrendered;
(9) the instructions that Holders must follow in order to
tender their Senior Notes; and
(10) information concerning the business of LGII and the
Guarantor, the most recent annual and quarterly reports of the
Guarantor filed with the Commission pursuant to the Exchange Act (or,
if the Guarantor is not permitted to file any such reports with the
Commission, the comparable reports prepared pursuant to Section 4.17),
a description of material developments in the business
47
of LGII and the Guarantor, information with respect to PRO FORMA
historical financial information after giving effect to such Asset
Sale and Asset Sale Offer and such other information concerning the
circumstances and relevant facts regarding such Asset Sale Offer as
would be material to a Holder of Senior Notes in connection with the
decision of such Holder as to whether or not it should tender Senior
Notes pursuant to the Asset Sale Offer.
(11) On the Asset Sale Purchase Date, LGII shall (i) accept for
payment, on a PRO RATA basis, Senior Notes or portions thereof
tendered pursuant to the Asset Sale Offer, (ii) deposit with the
Paying Agent money, in immediately available funds, in an amount
sufficient to pay the Asset Sale Offer Price of all Senior Notes or
portions thereof so tendered and accepted and (iii) deliver to the
Trustee the Senior Notes so accepted together with an Officers'
Certificate setting forth the Senior Notes or portions thereof
tendered to and accepted for payment by LGII. The Paying Agent shall
promptly mail or deliver to Holders of Senior Notes so accepted
payment in an amount equal to the Asset Sale Offer Price, and the
Trustee shall promptly authenticate and mail or deliver to such
Holders a new Senior Note equal in principal amount to any unpurchased
portion of the Senior Note surrendered. Any Senior Notes not so
accepted shall be promptly mailed or delivered by LGII to the Holder
thereof. LGII will publicly announce the results of the Asset Sale
Offer not later than the first Business Day following the Asset Sale
Purchase Date. To the extent that the aggregate principal amount of
Senior Notes tendered pursuant to an Asset Sale Offer is less than the
Excess Proceeds, LGII or the Guarantor, as the case may be, may use
such deficiency for general corporate purposes. Upon completion of
such Asset Sale Offer, the amount of Excess Proceeds shall be reset to
zero. For purposes of this Section 4.12, the Trustee shall act as
Paying Agent.
(12) LGII and the Guarantor will comply, to the extent
applicable, with the requirements of Section 14(e) of the Exchange Act
and any other securities laws or regulations in connection with the
repurchase of Senior Notes pursuant to the Asset Sale Offer.
SECTION 4.13. LIMITATION ON TRANSACTIONS WITH INTERESTED PERSONS.
The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to, directly or
indirectly, enter into or suffer to exist any transaction or series of
related transactions (including, without limitation, the sale, transfer,
disposition, purchase, exchange or lease of assets, property or services)
with, or for the benefit of, any Affiliate of the Guarantor or any beneficial
owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except
that a person shall be deemed to have "BENEFICIAL OWNERSHIP" of all
securities that such person has the right to acquire, whether such right is
exercisable immediately, after the passage of time or upon the happening of
an event) of 5% or more of the Common Shares at any time outstanding
("INTERESTED PERSONS"), unless (a) such transaction or series of
48
related transactions are on terms that are no less favorable to the Guarantor
or such Restricted Subsidiary, as the case may be, than those which could
have been obtained in a comparable transaction at such time from persons who
are not Affiliates of the Guarantor or Interested Persons, (b) with respect
to a transaction or series of transactions involving aggregate payments or
value equal to or greater than $10,000,000, the Guarantor has obtained a
written opinion from an Independent Financial Advisor stating that the terms
of such transaction or series of transactions are fair to the Guarantor or
its Restricted Subsidiary, as the case may be, from a financial point of view
and (c) with respect to a transaction or series of transactions involving
aggregate payments or value equal to or greater than $2,500,000, the
Guarantor shall have delivered an Officer's Certificate to the Trustee
certifying that such transaction or series of transactions comply with the
preceding clause (a) and, if applicable, certifying that the opinion referred
to in the preceding clause (b) has been delivered and that such transaction
or series of transactions has been approved by a majority of the Board of
Directors of the Guarantor (including a majority of the disinterested
directors); PROVIDED, HOWEVER, that this covenant will not restrict the
Guarantor from (i) paying dividends in respect of its Capital Stock permitted
under Section 4.08, (ii) paying reasonable and customary fees to directors of
the Guarantor or any Restricted Subsidiary who are not employees of the
Guarantor or any Restricted Subsidiary, (iii) entering into transactions with
its Wholly- Owned Subsidiaries or permitting its Wholly-Owned Subsidiaries
from entering into transactions with other Wholly-Owned Subsidiaries of the
Guarantor, (iv) making loans or advances to senior officers and directors of
the Guarantor or any Restricted Subsidiary not in excess of $6,000,000 in the
aggregate at any one time outstanding, (v) guaranteeing loans made to
officers and other employees of the Guarantor or any Restricted Subsidiaries
in connection with the Guarantor's 1994 Management Equity Investment Plan not
in excess of $6,000,000 in the aggregate at any tone time outstanding, (vi)
making loans or advances to officers, employees or consultants of the
Guarantor and its Restricted Subsidiaries for travel and moving expenses in
the ordinary course of business for bona fide business purposes of the
Guarantor and its Restricted Subsidiaries, (vii) making other loans or
advances to officers, employees or consultants of the Guarantor and its
Restricted Subsidiaries in the ordinary course of business for bona fide
business purposes of the Guarantor and its Restricted Subsidiaries not in
excess of $10,000,000 in the aggregate at any one time outstanding, (viii)
making payments to officers or employees of the Guarantor or its Restricted
Subsidiaries pursuant to obligations undertaken, at a time when such persons
were not officers or employees of the Guarantor or its Restricted
Subsidiaries, in connection with arms' length Asset Acquisitions or (ix)
declaring or paying dividends on, or purchasing or redeeming, the Preferred
Securities of a Special Finance Subsidiary.
SECTION 4.14. LIMITATION ON DIVIDENDS AND OTHER PAYMENT RESTRICTIONS
AFFECTING SUBSIDIARIES.
The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to, directly or
indirectly, create or otherwise cause or suffer to exist or become effective
any encumbrance or restriction on the ability of any Restricted Subsidiary of
the Guarantor to (a) pay dividends, in cash or otherwise, or make any other
distributions on or in respect of its Capital Stock or any other interest or
participation in, or measured by, its profits, (b)
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pay any Indebtedness owed to the Guarantor or any other Restricted Subsidiary
of the Guarantor, (c) make loans or advances to, or any Investment in, the
Guarantor or any other Restricted Subsidiary of the Guarantor, (d) transfer
any of its properties or assets to the Guarantor or any other Restricted
Subsidiary of the Guarantor or (e) guarantee any Indebtedness of the
Guarantor or any other Restricted Subsidiary of the Guarantor, except for
such encumbrances or restrictions existing under or by reason of (i)
applicable law, (ii) customary non-assignment provisions of any contract or
any lease governing a leasehold interest of the Guarantor or any Restricted
Subsidiary of the Guarantor, (iii) customary restrictions on transfers of
property subject to a Lien permitted under the provisions of this Indenture
which could not materially adversely affect the Guarantor's ability to
satisfy its obligations under the provisions of this Indenture and the Senior
Notes, (iv) any agreement or other instrument of a person acquired by the
Guarantor or any Restricted Subsidiary of the Guarantor (or a Restricted
Subsidiary of such person) in existence at the time of such acquisition (but
not created in contemplation thereof), which encumbrance or restriction is
not applicable to any person, or the properties or assets of any person,
other than the person, or the properties or assets of the person, so
acquired, (v) provisions contained in any agreement or instrument relating to
Indebtedness which prohibit the transfer of all or substantially all of the
assets of the obligor thereunder unless the transferee shall assume the
obligations of the obligor under such agreement or instrument and (vi)
encumbrances and restrictions under Indebtedness in effect on the Issue Date
(including under the Senior Notes) and encumbrances and restrictions in
permitted refinancings or replacements thereof which are no less favorable to
the holders of the Senior Notes than those contained in the Indebtedness so
refinanced or replaced.
SECTION 4.15. LIMITATIONS ON SALE-LEASEBACK TRANSACTIONS.
The Guarantor will not, and will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to, enter into any
Sale-Leaseback Transaction with respect to any property of the Guarantor or
any of its Restricted Subsidiaries where the aggregate amount of property
subject to such Sale-Leaseback Transactions, together with the aggregate
amount of Liens securing Indebtedness of the Guarantor and its Restricted
Subsidiaries (other than Permitted Liens), exceeds 10% of the Guarantor's
Consolidated Net Worth. Notwithstanding the foregoing, the Guarantor and its
Restricted Subsidiaries may enter into Sale-Leaseback Transactions
("PERMITTED SALE-LEASEBACK TRANSACTIONS") with respect to property acquired
or constructed after May 28, 1998; PROVIDED that (a) the Attributable Value
of such Sale-Leaseback Transaction shall be deemed to be Indebtedness of the
Guarantor or such Restricted Subsidiary, as the case may be, and (b) after
giving PRO FORMA effect to any such Sale-Leaseback Transaction and the
foregoing clause (a), the Guarantor would be able to incur $1.00 of
additional Indebtedness pursuant to 4.07 (assuming a market rate of interest
with respect to such additional Indebtedness).
SECTION 4.16. LIMITATION ON APPLICABILITY OF CERTAIN COVENANTS.
During any period of time that (i) the ratings assigned to the Senior
Notes by each of S&P and Xxxxx'x (collectively, the "RATING AGENCIES") are no
less than BBB-and Baa3, respectively (the "INVESTMENT GRADE RATINGS"), and
(ii) no Default or Event of Default has occurred and is continuing, the
Guarantor and its Restricted Subsidiaries (including, without limitation,
LGII) will
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not be subject to the covenants contained in Sections 4.07, 4.08, 4.09, 4.12,
4.13 and 4.14 (collectively, the "SUSPENDED COVENANTS"). If one or both
Rating Agencies withdraws its rating or downgrades its Investment Grade
Rating, then thereafter the Guarantor and its Restricted Subsidiaries will be
subject, on a prospective basis, to the Suspended Covenants (until the Rating
Agencies have again assigned Investment Grade Ratings to the Senior Notes)
and compliance with the Suspended Covenants with respect to Restricted
Payments made after the time of such withdrawal or downgrade will be
calculated in accordance with the covenant contained in Section 4.07 as if
such covenant had been in effect at all times after the Measurement Date.
SECTION 4.17. COMMISSION REPORTS.
The Guarantor shall file with the Commission, or if not permitted or
required to so file will deliver to the Trustee, the annual reports,
quarterly reports and the information, documents and other reports required
to be filed with the Commission pursuant to Sections 13 and 15 of the
Exchange Act, whether or not the Guarantor has a class of securities
registered under the Exchange Act. In accordance with the provisions of TIA
Section 314(a), the Guarantor shall file with the Trustee and provide to
each Holder, within 15 days after it files them with the Commission (or if
such filing is not permitted under the Exchange Act, 15 days after the
Guarantor would have been required to make such filing), copies of such
reports. The Guarantor also shall comply with the other provisions of TIA
Section 314(a). In addition, the Guarantor shall cause its annual reports
to stockholders and any quarterly or other financial reports furnished by it
to stockholders generally to be filed with the Trustee and mailed no later
than the date such materials are mailed or made available to the Guarantor's
stockholders, to the Holders at their addresses as set forth in the register
of securities maintained by the Registrar.
SECTION 4.18. RULE 144A INFORMATION REQUIREMENT.
If at any time the Guarantor is no longer subject to the reporting
requirements of the Exchange Act, it will furnish to the Holders or
beneficial holders of the Senior Notes and prospective purchasers of the
Senior Notes designated by the holders of the Senior Notes, upon their
request, any information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.
SECTION 4.19. WAIVER OF STAY, EXTENSION OR USURY LAWS.
Each of LGII and the Guarantor covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law which would prohibit or forgive
LGII or the Guarantor, as the case may be, from paying all or any portion of
the principal of, premium, if any, or interest on the Senior 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) each of LGII and the Guarantor
hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not hinder, delay or impede the execution of any power
herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.
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ARTICLE 5
SUCCESSOR CORPORATION
SECTION 5.01. WHEN LGII MAY MERGE, ETC..
(a) The Guarantor will not, and will not permit LGII to, in any
transaction or series of transactions, merge or consolidate with or into, or
sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets as an entirety to, any person
or persons, and the Guarantor will not permit any of its Restricted
Subsidiaries (including, without limitation, LGII) to enter into any such
transaction or series of transactions if such transaction or series of
transactions, in the aggregate, would result in a sale, assignment,
conveyance, transfer, lease or other disposition of all or substantially all
of the properties and assets of the Guarantor or LGII or the Guarantor and
its Restricted Subsidiaries, taken as a whole, or LGII and its Restricted
Subsidiaries, taken as a whole, to any other person or persons, unless at the
time of and after giving effect thereto (a) either (i) if the transaction or
series of transactions is a merger or consolidation, the Guarantor or LGII or
the Restricted Subsidiary, as the case may be, shall be the surviving person
of such merger or consolidation, or (ii) the person formed by such
consolidation or into which the Guarantor, LGII or such Restricted
Subsidiary, as the case may be, is merged or to which the properties and
assets of the Guarantor, LGII or such Restricted Subsidiary, as the case may
be, are transferred (any such surviving person or transferee person being the
"SURVIVING ENTITY") shall be a corporation organized and existing under the
laws of the United States of America, any state thereof, the District of
Columbia, Canada or any province or territory thereof and shall expressly
assume by a supplemental indenture executed and delivered to the Trustee, in
form reasonably satisfactory to the Trustee, the due and punctual payment of
the principal of, premium, if any, and interest on all the Senior Notes and
the performance and observance of every covenant and obligation of this
Indenture and the Senior Notes on the part of the Guarantor or LGII, as the
case may be, to be performed or observed and, in each case, this Indenture
shall remain in full force and effect; (b) immediately before and immediately
after giving effect to such transaction or series of transactions on a PRO
FORMA basis (including, without limitation, any Indebtedness incurred or
anticipated to be incurred in connection with or in respect of such
transaction or series of transactions), no Default or Event of Default shall
have occurred and be continuing and the Guarantor, LGII or the Surviving
Entity, as the case may be, after giving effect to such transaction or series
of transactions on a PRO FORMA basis (including, without limitation, any
Indebtedness incurred or anticipated to be incurred in connection with or in
respect of such transaction or series of transactions), could incur $1.00 of
additional Indebtedness pursuant to Section 4.07 (assuming a market rate of
interest with respect to such additional Indebtedness); (c) immediately after
giving effect to such transaction or series of transactions on a PRO FORMA
basis (including, without limitation, any Indebtedness incurred or
anticipated to be incurred in connection with or in respect of such
transaction or series of transactions), the Consolidated Net Worth of the
Guarantor, LGII or the Surviving Entity, as the case may be, is at least
equal to the Consolidated Net Worth of the Guarantor or LGII, as the case may
be, immediately before such transaction or series of transactions; and (d)
the Guarantor, LGII or the Surviving Entity, as the
52
case may be, shall have delivered to the Trustee an Officers' Certificate and
an Opinion of Counsel, each in form and substance reasonably satisfactory to
the Trustee, each stating that such consolidation, merger, sale, assignment,
conveyance, transfer, lease or other disposition and, if a supplemental
indenture is required in connection with such transaction or series of
transactions, such supplemental indenture, complies with this Indenture and
that all conditions precedent herein provided for relating to such
transaction or series of transactions have been complied with; PROVIDED,
HOWEVER, that solely for purposes of computing amounts described in
subclause (C) of Section 4.08, any such successor person shall only be deemed
to have succeeded to and be substituted for the Guarantor or LGII, as the
case may be, with respect to periods subsequent to the effective time of such
merger, consolidation or transfer of assets.
SECTION 5.02. SUCCESSOR SUBSTITUTED.
Upon any consolidation or merger, or any sale, assignment, conveyance,
transfer, lease or disposition of all or substantially all of the properties
and assets of the Guarantor or LGII in accordance with Section 5.01 hereof,
the successor person or persons formed by such consolidation or into which
the Guarantor or LGII is merged or the successor person to which such sale,
assignment, conveyance, transfer, lease or other disposition is made, shall
succeed to, and be substituted for, and may exercise every right and power
of, the Guarantor or LGII, as the case may be, under this Indenture and the
Senior Notes with the same effect as if such successor had been named as the
Guarantor or LGII, as the case may be, herein; PROVIDED, HOWEVER, that solely
for purposes of computing amounts described in subclause (C) of Section 4.08,
any such successor person shall only be deemed to have succeeded to and be
substituted for the Guarantor or LGII, as the case may be, with respect to
periods subsequent to the effective time of such merger, consolidation or
transfer of assets.
ARTICLE 6
REMEDIES
SECTION 6.01. EVENTS OF DEFAULT.
An "EVENT OF DEFAULT" with respect to each series of Senior Notes means
any of the following events:
(a) default in the payment of the principal of or premium, if
any, on any Senior Note of such series when the same becomes due and
payable (upon Stated Maturity, acceleration, optional redemption,
required purchase, scheduled principal payment or otherwise); or
(b) default in the payment of an installment of interest on any
of the Senior Notes of such series, when the same becomes due and
payable, and any such Default continues for a period of 30 days; or
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(c) failure to perform or observe any other term, covenant or
agreement contained in the Senior Notes of such series or the
Guarantee with respect to Senior Notes of such series or pursuant to
the provisions of this Indenture (other than Defaults specified in
clause (a) or (b) above) and such Default continues for a period of 30
days after written notice of such Default requiring the Guarantor and
LGII to remedy the same shall have been given (i) to the Guarantor and
LGII by the Trustee or (ii) to Guarantor, LGII and the Trustee by
Holders of at least 25% in aggregate principal amount of the Senior
Notes of such series then outstanding; or
(d) default or defaults under one or more agreements,
instruments, mortgages, bonds, debentures or other evidences of
Indebtedness under which the Guarantor or any Restricted Subsidiary of
the Guarantor (including, without limitation, LGII) then has
outstanding Indebtedness in excess of $20,000,000 (including Senior
Notes of another series), individually or in the aggregate, and either
(i) such Indebtedness is already due and payable in full or (ii) such
default or defaults have resulted in the acceleration of the maturity
of such Indebtedness; or
(e) one or more judgments, orders or decrees of any court or
regulatory or administrative agency of competent jurisdiction for the
payment of money in excess of $20,000,000, either individually or in
the aggregate, shall be entered against the Guarantor or any
Restricted Subsidiary of the Guarantor (including, without limitation,
LGII) or any of their respective properties and shall not be
discharged or bonded against or stayed and there shall have been a
period of 60 days after the date on which any period for appeal has
expired and during which a stay of enforcement of such judgment, order
or decree, shall not be in effect; or
(f) either (i) the collateral agent under the Collateral
Agreement or (ii) any holder of at least $20,000,000 in aggregate
principal amount of Indebtedness of the Guarantor or any of its
Restricted Subsidiaries (including, without limitation, LGII) shall
commence judicial proceedings to foreclose upon assets of the
Guarantor or any of its Restricted Subsidiaries having an aggregate
Fair Market Value, individually or in the aggregate, in excess of
$20,000,000 or shall have exercised any right under applicable law or
applicable security documents to take ownership of any such assets in
lieu of foreclosure; or
(g) the Guarantor or any Significant Subsidiary of the
Guarantor pursuant to or under or within the meaning of any Bankruptcy
Law:
(1) commences a voluntary case or proceeding;
(2) onsents to the entry of an order for relief against it
in an involuntary case or proceeding;
54
(3) consents to the appointment of a Custodian of it or for
all or substantially all of its property;
(4) makes a general assignment for the benefit of its
creditors; or
(5) shall generally not pay its debts when such debts
become due or shall admit in writing its inability to pay its
debts generally; or
(h) a court of competent jurisdiction enters an order or decree
under any Bankruptcy Law that:
(1) is for relief against the Guarantor or any Significant
Subsidiary of the Guarantor in an involuntary case or proceeding,
(2) appoints a Custodian of the Guarantor or any
Significant Subsidiary of the Guarantor for all or substantially
all of its properties, or
(3) orders the liquidation of the Guarantor or any
Significant Subsidiary of the Guarantor, and in each case the
order or decree remains unstayed and in effect for 60 days; or
(i) the Guarantee with respect to such series ceases to be in
full force and effect or is declared null and void, or the Guarantor
denies that it has any further liability under the Guarantee with
respect to such series, or gives notice to such effect and such
condition shall have continued for a period of 60 days after written
notice of such failure (which notice shall specify the Default, demand
that it be remedied and state that it is a "NOTICE OF DEFAULT")
requiring the Guarantor and LGII to remedy the same shall have been
given (x) to the Guarantor and LGII by the Trustee or (y) to the
Guarantor, LGII and the Trustee by Holders of at least 25% in
aggregate principal amount of the Senior Notes of any series then
outstanding.
Subject to the provisions of Sections 7.01 and 7.02, the Trustee shall
not be charged with knowledge of any Default or Event of Default unless
written notice thereof shall have been given to a Trust Officer at the
Corporate Trust Office of the Trustee by LGII, the Guarantor, the Paying
Agent, any Holder, any holder of Indebtedness or any of their respective
agents.
SECTION 6.02. ACCELERATION.
If an Event of Default (other than as specified in Section 6.01(g) or
6.01(h) occurs and is continuing with respect to the Senior Notes of any
series, the Trustee, by written notice to the Guarantor and LGII, or the
Holders of at least 25% in aggregate principal amount of the Senior Notes of
such series then out standing, by written notice to the Trustee, the
Guarantor and LGII,
55
may declare the principal of, premium, if any, and accrued and unpaid
interest, if any, on all of the Senior Notes of such series to be due and
payable immediately, upon which declaration, all amounts payable in respect
of the Senior Notes of such series shall be immediately due and payable. If
an Event of Default specified in Section 6.01(g) or 6.01(h) occurs and is
continuing, then the principal of, premium, if any, and accrued and unpaid
interest, if any, on all of the Senior Notes shall IPSO FACTO become and be
immediately due and payable without any declaration or other act on the part
of the Trustee or any Holder of Senior Notes.
After a declaration of acceleration hereunder with respect to the Senior
Notes of any series, but before a judgment or decree for payment of the money
due has been obtained by the Trustee, the Holders of a majority in aggregate
principal amount of the outstanding Senior Notes of such series, by written
notice to the Guarantor, LGII and the Trustee, may rescind such declaration
if (a) the Guarantor or LGII has paid or deposited with the Trustee a sum
sufficient to pay (i) all amounts due the Trustee under Section 7.08 and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, (ii) all overdue interest on all Senior Notes of such
series, (iii) the principal of and premium, if any, on any Senior Notes of
such series which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate borne by the Senior Notes of
such series, and (iv) to the extent that payment of such interest is lawful,
interest upon overdue interest and overdue principal which has become due
otherwise than by such declaration of acceleration at the rate borne by the
Senior Notes of such series; (b) the rescission would not conflict with any
judgment or decree of a court of competent jurisdiction; and (c) all Events
of Default, other than the non-payment of principal of, premium, if any, and
interest on the Senior Notes of such series that has become due solely by
such declaration of acceleration, have been cured or waived as provided in
Section 6.04.
No such rescission shall affect any subsequent Default or Event of
Default or impair any right subsequent therein.
SECTION 6.03. OTHER REMEDIES.
If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy by proceeding at law or in equity to collect the payment
of principal of, premium, if any, or interest on the Senior Notes or to
enforce the performance of any provision of the Senior Notes or this
Indenture.
All rights of action and claims under this Indenture or the Senior Notes
may be enforced by the Trustee even if it does not possess any of the Senior
Notes or does not produce any of them in the proceeding. A delay or omission
by the Trustee or any Holder in exercising any right or remedy accruing upon
an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. No remedy is exclusive of
any other remedy. All available remedies are cumulative to the extent
permitted by law.
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SECTION 6.04. WAIVER OF PAST DEFAULTS.
Subject to the provisions of Section 6.07 and 9.02, the Holders of not
less than a majority in aggregate principal amount of the outstanding Senior
Notes of any series by notice to the Trustee may, on behalf of the Holders of
all the Senior Notes of any such series, waive any existing Default or Event
of Default and its consequences, except a Default or Event of Default
specified in Section 6.01(a) or (b) or in respect of any provision hereof
which cannot be modified or amended without the consent of the Holder so
affected pursuant to Section 9.02. When a Default or Event of Default is so
waived, it shall be deemed cured and shall cease to exist.
SECTION 6.05. CONTROL BY MAJORITY.
The Holders of not less than a majority in aggregate principal amount of
the outstanding Senior Notes shall have the right to direct the time, method
and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred on the Trustee, PROVIDED,
HOWEVER, that the Trustee may refuse to follow any direction (a) that
conflicts with any rule of law or this Indenture, (b) that the Trustee
determines may be unduly prejudicial to the rights of another Noteholder, or
(c) that may expose the Trustee to personal liability unless the Trustee has
been provided reasonable indemnity against any loss or expense caused by its
following such direction; and PROVIDED, FURTHER, that the Trustee may take
any other action deemed proper by the Trustee that is not inconsistent with
such direction.
SECTION 6.06. LIMITATION ON SUITS.
No Holder of any Senior Notes of any series shall have any right to
institute any proceeding or pursue any remedy with respect to this Indenture
or the Senior Notes of such series unless:
(1) the Holder gives written notice to the Trustee of a
continuing Event of Default;
(2) the Holders of at least 25% in aggregate principal amount
of the outstanding Senior Notes of such series make a written request
to the Trustee to pursue the remedy;
(3) such Holder or Holders offer and, if requested, provide to
the Trustee reasonable indemnity against any loss, liability or
expense;
(4) the Trustee does not comply with the request within 30 days
after receipt of the request and the offer and, if requested,
provision of indemnity; and
(5) during such 30-day period the Holders of a majority in
aggregate principal amount of the outstanding Senior Notes do not give
the Trustee a direction which is inconsistent with the request;
57
The foregoing limitations shall not apply to a suit instituted by a
Holder for the enforcement of the payment of principal of, premium, if any,
or accrued interest on, such Senior Note on or after the respective due dates
set forth in such Senior Note.
A Holder may not use this Indenture to prejudice the rights of any other
Holders or to obtain priority or preference over such other Holders.
SECTION 6.07. RIGHT OF HOLDERS TO RECEIVE PAYMENT.
Notwithstanding any other provision in this Indenture, the right of any
Holder of a Senior Note to receive payment of the principal of, premium, if
any, and interest on such Senior Note, on or after the respective Stated
Maturities expressed in such Senior Note, or to bring suit for the
enforcement of any such payment on or after the respective Stated Maturities,
is absolute and unconditional and shall not be impaired or affected without
the consent of the Holder.
SECTION 6.08. COLLECTION SUIT BY TRUSTEE.
If an Event of Default specified in clause (a) or (b) of Section 6.01
occurs and is continuing, the Trustee may recover judgment in its own name
and as trustee of an express trust against LGII, the Guarantor or any other
obligor on the Senior Notes for the whole amount of principal of, premium, if
any, and accrued interest remaining unpaid, together with interest on overdue
principal and, to the extent that payment of such interest is lawful,
interest on overdue installments of interest, in each case at the rate per
annum borne by the Senior Notes and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.
SECTION 6.09. TRUSTEE MAY FILE PROOFS OF CLAIMS.
The Trustee may file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and the Holders allowed
in any judicial proceedings relative to the Guarantor, LGII or the
Subsidiaries of the of the Guarantor and LGII (or any other obligor upon the
Senior Notes), their creditors or their property and shall be entitled and
empowered to collect and receive any monies or other property payable or
deliverable on any such claims and to distribute the same, and any Custodian
in any such judicial proceedings is hereby authorized by each Holder to make
such payments to the Trustee and, in the event that the Trustee shall consent
to the making of such payments directly to the Holders, to pay to the Trustee
any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agent and counsel, and any other amounts due
the Trustee under Section 7.08. 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 Senior 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.
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SECTION 6.10. PRIORITIES.
If the Trustee collects any money pursuant to this Article Six, it shall
pay out such money in the following order:
First: to the Trustee for amounts due under Section 7.08;
Second: to the Holders for interest accrued on the Senior Notes,
ratably, without preference or priority of any kind, according to the
amounts due and payable on the Senior Notes for interest;
Third: to the Holders for principal amounts (including any
premium) owing under the Senior Notes, ratably, without preference or
priority of any kind, according to the amounts due and payable on the
Senior Notes for principal (including any premium); and
Fourth: the balance, if any, to LGII or the Guarantor, as the
case may be.
The Trustee, upon prior written notice to LGII, may fix a record date
and payment date for any payment to Noteholders pursuant to this Section 6.10.
SECTION 6.11. UNDERTAKING FOR COSTS.
In any suit for the enforcement of any right or remedy under this
Indenture or in any suit against the Trustee for any action taken or omitted
by it as Trustee, a court may in its discretion require the filing by any
party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in the suit, having
due regard to the merits and good faith of the claims or defenses made by the
party litigant. This Section 6.11 does not apply to any suit by the Trustee,
any suit by a Holder pursuant to Section 6.07, or a suit by Holders of more
than 10% in aggregate principal amount of the outstanding Senior Notes.
SECTION 6.12. RESTORATION OF RIGHTS AND REMEDIES.
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture or any Senior Note or the Guarantee
and such proceeding has been discontinued or abandoned for any reason, or has
been deter mined adversely to the Trustee or to such Holder, then and in
every such case LGII, the Guarantor, the Trustee and the Holders shall,
subject to any determination in such proceeding, 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 7
TRUSTEE
SECTION 7.01. DUTIES.
(a) In case an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in 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 an Event of Default,
(1) the Trustee need perform only such duties as are
specifically set forth in this Indenture, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or
opinions furnished to the Trustee and conforming to the requirements
of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine
the same to determine whether or not they conform to the requirements
of this Indenture.
(c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure
to act, or its own willful misconduct, except that
(1) this paragraph does not limit the effect of paragraph (b)
of this Section 7.01;
(2) the Trustee shall not be liable for any error of judgment
made in good faith by a 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 6.05;
(d) No provision of this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers if it shall have reasonable grounds for believing that
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repayment of such funds or adequate indemnity against such risk or liability
is not reasonably assured to it.
(e) Every provision of this Indenture that in any way relates to the
Trustee is subject to paragraphs (a), (b), (c) and (d) of this Section 7.01.
SECTION 7.02. RIGHTS OF TRUSTEE.
Subject to Section 113 hereof and the provisions of TIA Section 315:
(a) the Trustee may rely on any document reasonably
believed by it to be genuine and to have been signed or presented
by the proper person. The Trustee need not investigate any fact
or matter stated in the document.
(b) before the Trustee acts or refrains from acting, it
may consult with counsel and may require an Officers' Certificate
or an Opinion of Counsel, which shall conform to Sections 11.04
and 11.05. The Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on such
certificate or opinion.
(c) the Trustee may act through its attorneys 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 taken or
omitted by it in good faith and reasonably believed by it to be
authorized or within the discretion, rights or powers conferred
upon it by this Indenture other than any liabilities arising out
of its own negligence.
(e) the Trustee may consult with counsel of its own
choosing and the advice or opinion of such counsel as to matters
of law shall be full and complete authorization and protection in
respect of any action taken, omitted or suffered by it hereunder
in good faith and in accordance with the advice or opinion of
such counsel.
(f) the Trustee shall 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.
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(g) the Trustee shall be under no obligation to exercise
any of the rights or powers vested in it by this Indenture at the
request, order or direction of any of the Holders pursuant to the
provisions of this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against
the costs, expenses and liabilities which may be incurred therein
or thereby.
SECTION 7.03. INDIVIDUAL RIGHTS OF TRUSTEE.
The Trustee, any Paying Agent, Registrar or any other agent of LGII or
the Guarantor, in its individual or any other capacity, may become the owner
or pledgee of Senior Notes and, subject to Sections 7.11 and 7.12 and TIA
Sections 310 and 311, may otherwise deal with LGII, the Guarantor and their
Subsidiaries with the same rights it would have if it were not the Trustee,
Paying Agent, Registrar or such other agent.
SECTION 7.04. TRUSTEE'S DISCLAIMER.
The Trustee makes no representations as to the validity or sufficiency
of this Indenture or of the Senior Notes or of the Guarantee, it shall not be
accountable for LGII's use or application of the proceeds from the Senior
Notes, it shall not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee and it shall not be
responsible for any statement in the Senior Notes other than the Trustee's
certificate of authentication.
SECTION 7.05. NOTICE OF DEFAULT.
If a Default or an Event of Default occurs and is continuing and if it
is known to the Trustee, the Trustee shall mail to each Holder notice of the
Default or Event of Default within 30 days thereafter; PROVIDED, HOWEVER,
that, except in the case of a Default in the payment of the principal of,
premium, if any, or interest on any Senior Note, the Trustee shall be
protected in withholding such notice if and so long as the board of
directors, the executive committee of the board of directors or a committee
of the directors of the Trustee and/or Trust Officers in good faith
determines that the withholding of such notice is in the interest of the
Holders.
SECTION 7.06. MONEY HELD IN TRUST.
All moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were
received, but need not be segregated from other funds except to the extent
required herein or by law. The Trustee shall not be under any liability for
interest on any moneys received by it hereunder, except as the Trustee may
agree with LGII.
SECTION 7.07 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, to the extent that any of the
events described in TIA Section 313(a) shall have occurred within the
previous twelve months, but not otherwise, mail to each Holder a brief
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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).
A copy of each report at the time of its mailing to Holders shall be
mailed to LGII and filed with the Commission and each securities exchange, if
any, on which the Senior Notes are listed.
LGII shall notify the Trustee in writing if the Senior Notes become
listed on any securities exchange.
SECTION 7.08. COMPENSATION AND INDEMNITY.
LGII and the Guarantor covenant and agree to pay the Trustee from time
to time reasonable compensation for its services. The Trustee's compensation
shall not be limited by any law on compensation of a trustee of an express
trust. LGII and the Guarantor shall 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 and counsel.
LGII and the Guarantor shall indemnify the Trustee for, and hold it
harmless against, any loss 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 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 LGII and the
Guarantor promptly of any claim asserted against the Trustee for which it may
seek indemnity. LGII and the Guarantor shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel
and LGII and the Guarantor shall pay the reasonable fees and expenses of such
counsel. LGII and the Guarantor need not pay for any settlement made without
its prior written consent. LGII and the Guarantor need not reimburse any
expense or indemnify against any loss or liability to the extent incurred by
the Trustee through its negligence, bad faith or willful misconduct.
To secure the payment obligations of LGII and the Guarantor in this
Section 7.08, the Trustee shall have a Lien prior to the Senior 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, if any, or interest on
particular Senior Notes.
When the Trustee incurs expenses or renders services in connection with
an Event of Default specified in Section 6.01(g) or (h), the expenses and the
compensation for the services are intended to constitute expenses of
administra tion under any Bankruptcy Law.
The obligations of LGII and the Guarantor under this Section 7.08 and
any Lien arising hereunder shall survive the resignation or removal of any
trustee, the discharge of the obligations of LGII and the Guarantor pursuant
to Article Eight and/or the termination of this Indenture.
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SECTION 7.09. REPLACEMENT OF TRUSTEE.
The Trustee may resign by so notifying LGII. The Holders of a majority
in principal amount of the outstanding Senior Notes may remove the Trustee by
so notifying LGII and the Trustee and may appoint a successor trustee with
LGII's prior written consent. LGII may remove the Trustee if:
(a) the Trustee fails to comply with Section 7.11;
(b) the Trustee is adjudged a bankrupt or an
insolvent or an order for relief is entered with respect to the
Trustee under any Bankruptcy Law;
(c) a receiver or other public officer takes charge of the
Trustee or its property; or
(d) the Trustee becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in the
office of Trustee for any reason, LGII shall notify each Holder of such event
and shall promptly appoint a successor Trustee. The Trustee shall be
entitled to payment of its fees and reimbursement of its expenses while
acting as Trustee, and to the extent such amounts remain unpaid, the Trustee
that has resigned or has been removed shall retain the Lien afforded by
Section 7.08. Within one year after the successor Trustee takes office, the
Holders of a majority in principal amount of the outstanding Senior Notes
may, with LGII's prior written consent, appoint a successor Trustee to
replace the successor Trustee appointed by LGII.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee and to LGII. Immediately after that, the
retiring Trustee shall transfer all property held by it as Trustee to the
successor Trustee, subject to the Lien provided in Section 7.08, 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 Noteholder.
If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, of LGII or the
Holders of at least 10% in principal amount of the outstanding Senior Notes
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.
If the Trustee fails to comply with Section 7.11, any Holder may
petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.
Notwithstanding replacement of the Trustee pursuant to this Section
7.09, the obligations of LGII and the Guarantor under Section 7.08 shall
continue for the benefit of the retiring Trustee.
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SECTION 7.10. 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 or national banking association, the resulting, surviving or
transferee corporation or national banking association without any further
act shall, if such resulting, surviving or transferee corporation or national
banking association is otherwise eligible hereunder, be the successor Trustee.
SECTION 7.11 ELIGIBILITY; DISQUALIFICATION.
There shall at all times be a Trustee hereunder which shall be eligible
to act as Trustee under TIA Sections 310(a)(1) and 310(a)(5) and which shall
have a combined capital and surplus of at least $50,000,000. If such
corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of federal, state, territorial or District of Columbia
supervising or examining authority, then for the purposes of this Section,
the combined capital and surplus of such corporation shall be deemed to be
its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time the Trustee shall cease to be
eligible in accordance with the provisions of this Section, the Trustee shall
resign immediately in the manner and with the effect hereinafter specified in
this Article.
SECTION 7.12. PREFERENTIAL COLLECTION OF CLAIMS AGAINST LGII.
The Trustee shall comply with TIA Section 311(a), excluding any
creditor relationship listed in TIA Section 311(b). If the present or any
future Trustee shall resign or be removed, it shall be subject to TIA Section
311(a) to the extent provided therein.
ARTICLE 8
SATISFACTION AND DISCHARGE OF INDENTURE
SECTION 8.01. TERMINATION OF THE OBLIGATION OF LGII AND THE GUARANTOR.
Each of LGII and the Guarantor may terminate its obligations under the
Senior Notes of any series and this Indenture, except those obligations
referred to in the penultimate paragraph of this Section 8.01, if all Senior
Notes of such series previously authenticated and delivered (other than
destroyed, lost or stolen Senior Notes which have been replaced or paid or
Senior Notes for whose payment money has theretofore been deposited with the
Trustee or the Paying Agent in trust or segregated and held in trust by LGII
and thereafter repaid to LGII, as provided in Section 8.04) have been
delivered to the Trustee for cancellation and the Guarantor or LGII has paid
all sums payable by it hereunder, or if:
(a) either (i) pursuant to Article Three, LGII shall have given
notice to the Trustee and mailed a notice of redemption to each Holder
of the redemption of all of the Senior Notes of such series under
arrangements satisfactory to the
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Trustee for the giving of such notice or (ii) all Senior Notes of such
series have otherwise become due and payable hereunder;
(b) the Guarantor or LGII shall have irrevocably deposited or
caused to be deposited with the Trustee or a trustee reasonably
satisfactory to the Trustee, under the terms of an irrevocable trust
agreement in form and substance satisfactory to the Trustee, as trust
funds in trust solely for the benefit of the Holders for that purpose,
money in such amount as is sufficient without consideration of
reinvestment of such interest, to pay principal of, premium, if any,
and interest on the outstanding Senior Notes of such series to
maturity or redemption, as certified in a certificate of a nationally
recognized firm of independent public accountants; PROVIDED that the
Trustee shall have been irrevocably instructed to apply such money to
the payment of said principal, premium, if any, and interest with
respect to the Senior Notes of such series;
(c) no Default or Event of Default with respect to this
Indenture or the Senior Notes of such series shall have occurred and
be continuing on the date of such deposit or shall occur as a result
of such deposit and such deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to
which LGII or the Guarantor is a party or by which it is bound;
(d) LGII or the Guarantor shall have paid all other sums
payable by it hereunder;
(e) LGII or the Guarantor shall have delivered to the Trustee
an Officers' Certificate and an Opinion of Counsel, each stating that
all conditions precedent providing for the termination of LGII's and
the Guarantor's obligation under the Senior Notes of such series, the
related Guarantee and this Indenture have been complied with.
Notwithstanding the foregoing paragraph, LGII's obligations in Sections
2.05, 2.06, 2.07, 2.08, 4.01, 4.02 and 7.08 and the Guarantor's obligations
in respect thereof shall survive until the Senior Notes of such series are no
longer outstanding pursuant to Section 2.12. After the Senior Notes of such
series are no longer outstanding, LGII obligations in Sections 7.08, 8.03,
8.04 and 8.05 and the Guarantor's obligations in respect thereof Guarantor or
LGII, as the case may be, shall survive.
After such delivery or irrevocable deposit the Trustee upon request
shall acknowledge in writing the discharge of LGII's and the Guarantor's
obligations under the Senior Notes of such series except for those surviving
obligations specified above.
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SECTION 8.02. LEGAL DEFEASANCE AND COVENANT DEFEASANCE.
(a) Each of LGII and the Guarantor may, at its option by Board
Resolution of the Board of Directors of the Guarantor or LGII, as the case
may be, at any time, with respect to the Senior Notes of any series, elect to
have either paragraph (b) or paragraph (c) below be applied to the
outstanding Senior Notes of such series upon compliance with the conditions
set forth in paragraph (d).
(b) Upon LGII's or the Guarantor's exercise under paragraph (a) of the
option applicable to this paragraph (b), LGII and the Guarantor shall be
deemed to have been released and discharged from its obligations with respect
to the outstanding Senior Notes of any series on the date the conditions set
forth below are satisfied (hereinafter, "LEGAL DEFEASANCE"). For this
purpose, such legal defeasance means that LGII shall be deemed to have paid
and discharged the entire indebtedness represented by the outstanding Senior
Notes of such series, which shall thereafter be deemed to be "OUTSTANDING"
only for the purposes of paragraph (e) below and the other Sections of and
matters under this Indenture referred to in (i) and (ii) below, and to have
satisfied all its other obligations under such Senior Notes and this
Indenture insofar as such Senior Notes are concerned (and the Trustee, at the
expense of LGII, shall execute proper instruments acknowledging the same),
except for the following which shall survive until otherwise terminated or
discharged hereunder: (i) the rights of Holders of outstanding Senior Notes
of such series to receive solely from the trust fund described in paragraph
(d) below and as more fully set forth in such paragraph, payments in respect
of the principal of, premium, if any, and interest on such Senior Notes when
such payments are due, (ii) LGII's obligations with respect to such Senior
Notes under Sections 2.06, 2.07 and 4.02, and, with respect to the Trustee,
under Section 7.08 and the Guarantor's obligations in respect thereof, (iii)
the rights, powers, trusts, duties and immunities of the Trustee hereunder
and (iv) this Article Eight. Subject to compliance with this Section 8.02,
LGII may exercise its option under this paragraph (b) notwithstanding the
prior exercise of its option under paragraph (c) below with respect to the
Senior Notes of such series.
(c) Upon the exercise by LGII and the Guarantor under paragraph (a) of
the option applicable to this paragraph (c), each of LGII and the Guarantor
shall be released and discharged from its obligations under any covenant
contained in Article Five and in Sections 4.07 through 4.17 with respect to
the outstanding Senior Notes of any series on and after the date the
conditions set forth below are satisfied (hereinafter, "COVENANT
DEFEASANCE"), and the Senior Notes of such series shall thereafter be deemed
to be not "OUTSTANDING" for the purpose of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in
connection with such covenants, but shall continue to be deemed "OUTSTANDING"
for all other purposes hereunder. For this purpose, such covenant
defeasance means that, with respect to the outstanding Senior Notes, LGII and
the Guarantor may omit to comply with and shall have no liability in respect
of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any
such covenant or by reason of any reference in any such covenant to any other
provision herein or in any other document and such omission to comply shall
not constitute a Default or an Event of Default under
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Section 6.01(c), but, except as specified above, the remainder of this
Indenture and such Senior Notes shall be unaffected thereby.
(d) The following shall be the conditions to application of either
paragraph (b) or paragraph (c) above to the outstanding Senior Notes of any
series:
(1) LGII shall irrevocably have deposited or caused to be
deposited with the Trustee (or another trustee satisfying the
requirements of Section 7.11 who shall agree to comply with the
provisions of this Section 8.02 applicable to it) as trust funds in
trust for the purpose of making the following payments, specifically
pledged as security for, and dedicated solely to, the benefit of the
Holders of such Senior Notes, (x) cash, in United States dollars, in
an amount or (y) direct non-callable obligations of, or non-callable
obligations guaranteed by, the United States of America for the
payment of which guarantee or obligation the full faith and credit of
the United States is pledged ("U.S. GOVERNMENT OBLIGATIONS") maturing
as to principal, premium, if any, and interest in such amounts of
cash, in United States dollars, and at such times as are sufficient
without consideration of any rein vestment of such interest, to pay
principal of, premium, if any, and interest on the outstanding Senior
Notes of such series not later than one day before the due date of any
payment, or (z) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed
in a written certification thereof delivered to the Trustee, to pay
and discharge and which shall be applied by the Trustee (or other
qualifying trustee) to pay and discharge principal of, premium, if
any, and interest on the outstanding Senior Notes of such series
(except lost, stolen or destroyed Senior Notes which have been
replaced or repaid) on the Maturity Date thereof or otherwise in
accordance with the terms of this Indenture and of such Senior Notes;
PROVIDED, HOWEVER, that the Trustee (or other qualifying trustee)
shall have received an irrevocable written order from LGII instructing
the Trustee (or other qualifying trustee) to apply such money or the
proceeds of such U.S. Government Obligations to said payments with
respect to the Senior Notes of such series;
(2) no Default or Event of Default or event which with notice
or lapse of time or both would become a Default or an Event of Default
with respect to the Senior Notes of such series shall have occurred
and be continuing on the date of such deposit or, insofar as
Section 6.01(a) is concerned, at any time during the period ending on
the 91st day after the date of such deposit (it being understood that
this condition shall not be deemed satisfied until the expiration of
such period);
(3) such legal defeasance or covenant defeasance shall not
cause the Trustee to have a conflicting interest with respect to any
securities of LGII or the Guarantor;
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(4) such legal defeasance or covenant defeasance shall not
result in a breach or violation of, or constitute a Default or Event
of Default under, this Indenture or any other material agreement or
instrument to which LGII or the Guarantor is a party or by which it is
bound;
(5) in the case of an election under paragraph (b) above, LGII
shall have delivered to the Trustee an Opinion of Counsel stating that
(x) LGII has received from, or there has been published by, the
Internal Revenue Service a ruling or (y) since the date of this
Indenture, there has been a change in the applicable Federal income
tax law, in either case to the effect that, and based thereon such
opinion shall confirm that, the Holders of the outstanding Senior
Notes of such series 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;
(6) in the case of an election under paragraph (c) above, LGII
shall have delivered to the Trustee an Opinion of Counsel to the
effect that the Holders of the outstanding Senior Notes of such series
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;
(7) in the case of an election under either paragraph (b) or
(c) above, an Opinion of Counsel to the effect that, (x) the trust
funds will not be subject to any rights of any other holders of
Indebtedness of LGII or the Guarantor, and (y) after the 91st day
following the deposit, the trust funds will not be subject to the
effect of any applicable Bankruptcy Law; PROVIDED, HOWEVER, that if a
court were to rule under any such law in any case or pro ceeding that
the trust funds remained property of LGII or the Guarantor, no opinion
needs to be given as to the effect of such laws on the trust funds
except the following: (A) assuming such trust funds remained in the
Trustee's possession prior to such court ruling to the extent not paid
to Holders of Senior Notes of such series, the Trustee will hold, for
the benefit of the Holders of Senior Notes of such series, a valid and
enforceable security interest in such trust funds that is not
avoidable in bankruptcy or otherwise, subject only to principles of
equitable subordination, (B) the Holders of Senior Notes of such
series will be entitled to receive adequate protection of their
interests in such trust funds if such trust funds are used, and (C) no
property, rights in property or other interests granted to the Trustee
or the Holders of Senior Notes of such series in exchange for or with
respect to any of such funds will be subject to any prior rights of
any other person, subject only to prior Liens granted under Section
364 of Title 11 of the U.S. Bankruptcy Code (or any section of any
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other Bankruptcy Law having the same effect), but still subject to the
foregoing clause (B); and
(8) LGII shall have delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel, each stating that (x) all
conditions precedent provided for relating to either the legal
defeasance under paragraph (b) above or the covenant defeasance under
paragraph (c) above, as the case may be, have been complied with and
(y) if any other Indebtedness of LGII or the Guarantor shall then be
outstanding or committed, such legal defeasance or covenant defeasance
will not violate the provisions of the agreements or instruments
evidencing such Indebtedness.
(e) All money and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this paragraph (e), the "TRUSTEE") pursuant to
paragraph (d) above in respect of the outstanding Senior Notes of such series
shall be held in trust and applied by the Trustee, in accordance with the
provisions of such Senior Notes and this Indenture, to the payment, either
directly or through any Paying Agent (other than LGII or any Affiliate of
LGII) as the Trustee may determine, to the Holders of such Senior Notes of
all sums due and to become due thereon in respect of principal, premium and
interest, but such money need not be segregated from other funds except to
the extent required by law.
LGII shall, and the Guarantor shall cause LGII to pay and indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against
the U.S. Government Obligations deposited pursuant to paragraph (d) above or
the principal, premium, if any, 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 Senior Notes of such series.
Anything in this Section 8.02 to the contrary notwithstanding, the
Trustee shall deliver or pay to LGII from time to time upon the request, in
writing, by LGII any money or U.S. Government Obligations held by it as
provided in paragraph (d) above which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount
thereof which would then be required to be deposited to effect an equivalent
legal defeasance or covenant defeasance.
SECTION 8.03. APPLICATION OF TRUST MONEY.
The Trustee shall hold in trust money or U.S. Government Obligations
deposited with it pursuant to Sections 8.01 and 8.02, and shall apply the
deposited money and the money from U.S. Government Obligations in accordance
with this Indenture to the payment of principal of, premium, if any, and
interest on the Senior Notes of each series.
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SECTION 8.04. REPAYMENT TO LGII OR GUARANTOR.
Subject to Sections 7.08, 8.01 and 8.02, the Trustee shall promptly pay
to LGII or if deposited with the Trustee by the Guarantor, to the Guarantor,
upon receipt by the Trustee of an Officers' Certificate, any excess money,
determined in accordance with Section 8.02, held by it at any time. The
Trustee and the Paying Agent shall pay to LGII or the Guarantor, upon receipt
by the Trustee or the Paying Agent, as the case may be, of an Officers'
Certificate, any money held by it for the payment of principal, premium, if
any, or interest that remains unclaimed for two years after payment to the
Holders is required; PROVIDED, HOWEVER, that the Trustee and the Paying Agent
before being required to make any payment may, but need not, at the expense
of LGII cause to be published once in a newspaper of general circulation in
The City of New York or mail to each Holder entitled to such money notice
that such money remains unclaimed and that after a date specified therein,
which shall be at least 30 days from the date of such publication or mailing,
any unclaimed balance of such money then remaining will be repaid to LGII.
After payment to LGII or the Guarantor, Holders entitled to money must look
solely to LGII and the Guarantor for payment as general creditors unless an
applicable abandoned property law designates another person, and all
liability of the Trustee or Paying Agent with respect to such money shall
thereupon cease.
SECTION 8.05. REINSTATEMENT.
If the Trustee or Paying Agent is unable to apply any money or U.S.
Government Obligations in accordance with this Indenture by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, then and only then LGII's and the Guarantor's obligations under
this Indenture and the Senior Notes of such series shall be revived and
reinstated as though no deposit had been made pursuant to this Indenture
until such time as the Trustee is per mitted to apply all such money or U.S.
Government Obligations in accordance with this Indenture; PROVIDED, HOWEVER,
that if LGII or the Guarantor has made any payment of principal of, premium,
if any, or interest on any Senior Notes of such series because of the
reinstatement of its obligations, LGII or the Guarantor, as the case may be,
shall be subrogated to the rights of the Holders of such Senior Notes to
receive such payment from the money or U.S. Government Obligations held by
the Trustee or Paying Agent.
ARTICLE 9
AMENDMENTS, SUPPLEMENTS AND WAIVERS
SECTION 9.01. WITHOUT CONSENT OF HOLDERS.
LGII, when authorized by a Board Resolution of its Board of Directors,
and the Trustee may amend, waive or supplement this Indenture or the Senior
Notes without notice to or consent of any Holder:
71
(a) to cure any ambiguity, defect or inconsistency;
(b) to comply with Article Five;
(c) to provide for uncertificated Senior Notes in addition to
certificated Senior Notes;
(d) to comply with any requirements of the Commission in order
to effect or maintain the qualification of this Indenture under the
TIA;
(e) to make any change that would provide any additional
benefit or rights to the Holders or that does not adversely affect the
rights of any Holder.
Notwithstanding the above, the Trustee and LGII may not make any change
that adversely affects the rights of any Holders hereunder. LGII shall be
required to deliver to the Trustee an Opinion of Counsel stating that any
such change made pursuant to paragraph (a) or (e) of this Section 9.01 does
not adversely affect the rights of any Holder.
SECTION 9.02. WITH CONSENT OF HOLDERS.
Subject to Section 6.04, LGII, when authorized by a Board Resolution of
its Board of Directors, and the Trustee may amend this Indenture or the
Senior Notes with the written consent of the Holders of not less than a
majority in aggregate principal amount of each series of the Senior Notes
then outstanding, and the Holders of not less than a majority in aggregate
principal amount of the Senior Notes of such series then outstanding by
written notice to the Trustee may waive future compliance by LGII or the
Guarantor with any provision of this Indenture, the Guarantee or the Senior
Notes.
Notwithstanding the provisions of this Section 9.02, without the consent
of each Holder affected, an amendment or waiver, including a waiver pursuant
to Section 9.01, may not:
(a) reduce the percentage in outstanding aggregate principal
amount of such series of Senior Notes the Holders of which must
consent to an amendment, supplement or waiver of any provision of this
Indenture, the Guarantee or the Senior Notes;
(b) reduce or change the rate or time for payment of interest on
any Senior Note;
(c) change the currency in which any Senior Note, or any
premium or interest thereon, is payable;
(d) reduce the principal amount outstanding of or extend the
fixed maturity of any Senior Note or alter the redemption provisions
with respect thereto;
72
(e) waive a default in the payment of the principal of,
premium, if any, or interest on, or redemption or an offer to purchase
required hereunder with respect to, any Senior Note;
(f) make the principal of, premium, if any, or interest on any
Senior Note payable in money other than that stated in the Senior
Note;
(g) modify this Section 9.02 or Section 6.04 or Section 6.07;
(h) amend, alter, change or modify the obligation of LGII to
make and consummate a Change of Control Offer in the event of a Change
of Control or make and consummate the offer with respect to any Asset
Sale or modify any of the provisions or definitions with respect
thereto;
(i) modify or change any provision of this Indenture affecting
the subordination or ranking of the Senior Notes or the Guarantee in a
manner adverse to the Holders;
(j) impair the right to institute suit for the enforcement of
any payment on or with respect to the Senior Notes of such series.
It shall not be necessary for the consent of the Holders under this
Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
After an amendment, supplement or waiver under this Section 9.02 becomes
effective, LGII shall mail to the Holder of each Senior Note affected
thereby, with a copy to the Trustee, a notice briefly describing the
amendment, supplement or waiver. Any failure of LGII to mail such notice, or
any defect therein, shall not, however, in any way impair or affect the
validity of any amendment, supplement or waiver.
SECTION 9.03. COMPLIANCE WITH TRUST INDENTURE ACT.
Every amendment of or supplement to this Indenture, the Guarantee or
each series of the Senior Notes shall comply with the TIA as then in effect.
SECTION 9.04. REVOCATION AND EFFECT OF CONSENTS.
Until an amendment, supplement or waiver becomes effective, a consent to
it by a Holder is a continuing consent by such Holder and every subsequent
Holder of that Senior Note or portion of that Senior Note that evidences the
same debt as the consenting Holder's Senior Note, even if notation of the
consent is not made on any Senior Note. However, any such Holder or
subsequent Holder may revoke the consent as to his Senior Note or portion of
a Senior Note prior to such amendment, supplement or waiver becoming
effective. Such revocation shall be
73
effective only if the Trustee receives the notice of revocation before the
date the amendment, supplement or waiver becomes effective. Notwithstanding
the above, nothing in this paragraph shall impair the right of any Holder
under Section 316(b) of the TIA.
LGII may, but shall not be obligated to, fix a record date for the
purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver. If a record date is fixed, then notwithstanding the
second and third sen tences of the immediately preceding paragraph, those
persons who were Holders at such record date (or their duly designated
proxies), and only those persons, shall be entitled to consent to such
amendment, supplement or waiver or to revoke any consent previously given,
whether or not such persons continue to be Holders after such record date.
Such consent shall be effective only for actions taken within 90 days after
such record date.
After an amendment, supplement or waiver becomes effective, it shall
bind every Holder; unless it makes a change described in any of clauses (a)
through (j) of Section 9.02; if it makes such a change, the amendment,
supplement or waiver shall bind every subsequent Holder of a Senior Note or
portion of a Senior Note that evidences the same debt as the consenting
Holder's Senior Note.
SECTION 9.05. NOTATION ON OR EXCHANGE OF SENIOR NOTES.
If an amendment, supplement or waiver changes the terms of a Senior Note
of any series, the Trustee shall (in accordance with the specific direction
of LGII) request the Holder of the Senior Note to deliver it to the Trustee.
The Trustee shall (in accordance with the specific direction of LGII) place
an appropriate notation on the Senior Note about the changed terms and return
it to the Holder. Alternatively, if LGII or the Trustee so determines, LGII
in exchange for the Senior Note shall issue and the Trustee shall
authenticate a new Senior Note that reflects the changed terms. Failure to
make the appropriate notation or issue a new Senior Note shall not affect the
validity and effect of such amendment, supplement or waiver.
SECTION 9.06. TRUSTEE MAY SIGN AMENDMENTS, ETC..
The Trustee shall sign any amendment, supplement or waiver authorized
pursuant to this Article Nine if the amendment, supplement or waiver 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, supplement or waiver, the Trustee shall be
entitled to receive, and shall be fully protected in relying upon, an
Officers' Certificate and an Opinion of Counsel stating that the execution of
any amendment, supplement or waiver is authorized or permitted by this
Indenture, that it is not inconsistent herewith and that it will be valid and
binding upon LGII in accordance with its terms.
74
ARTICLE 10
GUARANTEE OF SENIOR NOTES
SECTION 10.01. GUARANTEE.
Subject to the provisions of this Article Ten, the Guarantor hereby
unconditionally guarantees to each Holder of a Senior 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 Senior
Notes or the obligations of LGII to the Holders or the Trustee hereunder or
thereunder, that: (a) the principal of, premium, if any, and interest on the
Senior Notes will be duly and punctually paid in full when due, whether at
maturity, by acceleration or otherwise, and interest on the overdue principal
and (to the extent permitted by law) interest, if any, on the Senior Notes
and all other obligations of LGII to the Holders or the Trustee hereunder or
thereunder (including fees, expenses or other) will be promptly paid in full
or performed, all in accordance with the terms hereof and thereof; and (b) in
case of any extension of time of payment or renewal of any Senior Notes, the
same will be promptly paid in full when due or performed in accordance with
the terms of the extension or renewal, whether at Stated Maturity, by
acceleration or otherwise. Failing payment when due of any amount so
guaranteed, or failing performance of any other obligation of LGII to the
Holders, for whatever reason, the Guarantor will be obligated to pay, or to
perform or cause the performance of, the same immediately. An Event of
Default under this Indenture or the Senior Notes shall constitute an event of
default under this Guarantee, and shall entitle the Holders of Senior Notes
to accelerate the obligations of the Guarantor hereunder in the same manner
and to the same extent as the obligations of LGII.
The Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the validity, regularity or enforceability of
the Senior Notes or this Indenture, the absence of any action to enforce the
same, any waiver or consent by any holder of the Senior Notes with respect to
any provisions hereof or thereof, the recovery of any judgment against LGII,
any action to enforce the same, whether or not a Guarantee is affixed to any
particular Senior Note, or any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor. The
Guarantor hereby waives the benefit of diligence, presentment, demand of
payment, filing of claims with a court in the event of insolvency or
bankruptcy of LGII, any right to require a pro ceeding first against LGII,
protest, notice and all demands whatsoever and covenants that its Guarantee
will not be discharged except by complete performance of the obligations
contained in the Senior Notes, this Indenture and this Guarantee. If any
Holder or the Trustee is required by any court or otherwise to return to
LGII, or any custodian, trustee, liquidator or other similar official acting
in relation to LGII, any amount paid by LGII to the Trustee or such Holder,
this Guarantee, to the extent theretofore discharged, shall be reinstated in
full force and effect. The Guarantor further agrees that, as between it, on
the one hand, and the Holders of Senior Notes and the Trustee, on the other
hand, (a) subject to this Article Ten, the maturity of the obligations
guaranteed hereby may be accelerated as provided in Article Six hereof for
the purposes of this Guarantee, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (b) in the event of any acceleration of such
obligations as provided in Article Six hereof, such
75
obligations (whether or not due and payable) shall forthwith become due and
payable by the Guarantor for the purpose of this Guarantee.
This Guarantee shall remain in full force and effect and continue to be
effective should any petition be filed by or against LGII for liquidation or
reorganization, should LGII become insolvent or make an assignment for the
benefit of creditors or should a receiver or trustee be appointed for all or
any significant part of LGII's assets, and shall, to the fullest extent
permitted by law, continue to be effective or be reinstated, as the case may
be, if at any time payment and performance of the Senior Notes are, pursuant
to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee on the Senior Notes, whether as a
"VOIDABLE PREFERENCE," "fraudulent transfer" or otherwise, all as though such
payment or performance had not been made. In the event that any payment, or
any part thereof, is rescinded, reduced, restored or returned, Senior Notes
shall, to the fullest extent permitted by law, be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or
returned.
No stockholder, officer, director, employer or incorporator, past,
present or future, as such, shall have any personal liability under this
Guarantee by reason of his, her or its status as such stockholder, officer,
director, employer or incorporator.
The Guarantee constitutes a guarantee of payment. When the Guarantee is
secured, it ranks pari passu in right of payment to all secured senior
indebtedness of the Guarantor. When the Guarantee is unsecured, it ranks
pari passu in right of payment to all unsecured senior indebtedness of the
Guarantor.
SECTION 10.02 EXECUTION AND DELIVERY OF GUARANTEE.
To further evidence the Guarantee set forth in Section 10.01, the
Guarantor hereby agrees that a notation on the Guarantee, substantially in
the form included in Exhibit C hereto, shall be endorsed on each Senior Note
authenticated and delivered by the Trustee after the Guarantee is executed by
either manual or facsimile signature of Officers of the Guarantor. The
validity and enforceability of the Guarantee shall not be affected by the
fact that it is not affixed to any particular Senior Note.
The Guarantor hereby agrees that its Guarantee set forth in Section
10.01 shall remain in full force and effect notwithstanding any failure to
endorse on each Senior Note a notation of the Guarantee.
If an Officer of the Guarantor whose signatures is on this Indenture or
a Senior Note no longer holds that office at the time the Trustee
authenticates the Senior Note or at any time thereafter, the Guarantor's
Guarantee of such Senior Note shall be valid nevertheless.
The delivery of any Senior Note by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of the Guarantee set forth
in this Indenture on behalf of the Guarantor.
00
XXXXXXX 00.00 XXXXXXXX XXX (XXXXXX).
If and to the extent that the laws of Canada are applicable to any
amounts payable by the Guarantor under this Indenture that are characterized
as interest by any applicable authority, for purposes of disclosure under the
Interest Act (Canada), the yearly rate of interest for any period less than
one year to which interest at a stated rate computed on the basis of a year
of 360 days consisting of twelve 30-day months is equivalent is the stated
rate multiplied by a fraction of which (a) the numerator is the product of
(i) the actual number of days in the calendar year in which the first day of
the relevant period falls and (ii) the sum of (A) the product of (x) 30 and
(y) the number of complete months elapsed in the relevant period and (B) the
actual number of days elapsed in any incomplete month in the relevant period,
and (b) the denominator is the product of (i) 360 and (ii) the actual number
of days in the relevant period.
ARTICLE 11
MISCELLANEOUS
SECTION 11.01. TRUST INDENTURE ACT OF 1939.
This Indenture is subject to the provisions of the TIA that are required
to be a part of this Indenture, and shall, to the extent applicable, be
governed by such provisions.
If any provision of this Indenture modifies or excludes any provision of
the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or
excluded, as the case may be.
SECTION 11.02 NOTICES.
Any notice or communication shall be sufficiently given if in writing
and delivered in person or mailed by first class mail, postage prepaid,
addressed as follows:
If to LGII or the Guarantor to:
Xxxxxx Group International, Inc.
0000 Xxxxxxx Xxxxxx
Xxxxxxx, XX 00000
With a copy to:
The Xxxxxx Group Inc.
0000 Xxxxxxx Xxx.
Xxxxxxx, Xxxxxxx Xxxxxxxx
Xxxxxx X0X0X0
77
If to the Trustee to:
State Street Bank and Trust Company
Xxxxxxx Square
000 Xxxxxx Xxxxxx
Xxxxxxxx, XX 00000
Attention: Corporate Trust Department
The parties hereto by notice to the other parties may designate
additional or different addresses for subsequent notices or communications.
Any notice or communication mailed, postage prepaid, to a Holder,
including any notice delivered in connection with TIA Section 310(b), TIA
Section 313(c), TIA Section 314(a) and TIA Section 315(b), shall be mailed
by first class mail to such Holder at the address of such Holder as it
appears on the Senior Notes register maintained by the Registrar and shall be
sufficiently given to such Holder if so mailed within the time prescribed.
Copies of any such communication or notice to a Holder shall also be mailed
to the Trustee.
Failure to mail a notice or communication to a Noteholder or any defect
in it shall not affect its sufficiency with respect to other Holders. Except
for a notice to the Trustee, which is deemed given only when received, if a
notice or communication is mailed in the manner provided above, it is duly
given, whether or not the addressee receives it.
SECTION 11.03. COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.
Holders may communicate pursuant to TIA Section 312(b) with other
Holders with respect to their rights under this Indenture or the Senior
Notes. The obligors, the Trustee, the Registrar and any other person shall
have the protection of TIA Section 312(c).
SECTION 11.04 CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.
Upon any request or application by LGII or the Guarantor to the Trustee
to take any action under this Indenture, such obligor shall furnish to the
Trustee:
(a) 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 complied with;
and
(b) an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with.
SECTION 11.05. STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
Each certificate or opinion with respect to compliance with a condition
or covenant provided for in this Indenture shall include:
78
(a) a statement that the person making such certificate or
opinion has read such covenant or condition;
(b) a brief statement as to the nature and scope of the
examination or investigation upon which the statement or opinions
contained in such certificate or opinion are based;
(c) a statement that, in the opinion of such person, he has
made such examination or investigation as is necessary to enable him
to express an opinion as to whether or not such covenant or condition
has been complied with; and
(d) a statement as to whether or not, in the opinion of such
person, such condition or covenant has been complied with; PROVIDED,
HOWEVER, that with respect to matters of fact an Opinion of Counsel
may rely on an Officers' Certificate or certificates of public
officials.
SECTION 11.06. RULES BY TRUSTEE, PAYING AGENT, REGISTRAR.
The Trustee 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 11.07. GOVERNING LAW.
The laws of the State of New York shall govern this Indenture, the
Guarantees and the Senior Notes without regard to principles of conflicts of
law. The Trustee, LGII, the Guarantor and the Holders agree to submit to the
juris diction of the courts of the State of New York in any action or
proceeding arising out of or relating to this Indenture, the Guarantee or the
Senior Notes.
SECTION 11.08. CONSENT TO SERVICE OF PROCESS.
Each of LGII and the Guarantor irrevocably (a) agrees that any legal
suit, action or proceeding arising out of or based upon this Indenture and
the Senior Notes issued hereunder may be instituted in any federal or state
court located in the City of New York, (b) waives, to the fullest extent it
may effectively do so, any objection which it may now or hereafter have to
the laying of venue of any such proceeding, and (c) submits to the
nonexclusive jurisdiction of such courts in any such suit, action or
proceeding. Each of LGII and the Guarantor has appointed Thelen, Marrin,
Xxxxxxx & Xxxxxxx LLP, 000 Xxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000,
Attention: Xxxxx X. Xxxxxxxx, Esq., as its authorized agent (the "AUTHORIZED
AGENT") upon whom process may be served in any suit, action or proceeding
arising out of or based on this Indenture which may be instituted in any
federal or state court located in The City of New York, expressly consents to
the jurisdiction of any such court in respect of any suit, action or
proceeding, and waives any other requirements of or objections to personal
jurisdiction with respect thereto. Such appointment shall be irrevocable.
Each of LGII and the Guarantor agrees to take any and all action, including
the filing of any and all documents and instruments, that may
79
be necessary to continue such appointment in full force and effect as
aforesaid. Service of process upon the Authorized Agent and written notice of
such service to LGII and the Guarantor shall be deemed, in every respect,
effective service of process upon LGII and the Guarantor. Notwithstanding
the foregoing, designation of an authorized agent does not constitute
submission to jurisdiction or consent to service or process in any legal
action or proceeding predicated on United States federal or state securities
laws.
SECTION 11.09. NO INTERPRETATION OF OTHER AGREEMENTS.
This Indenture may not be used to interpret another indenture, loan or
debt agreement of LGII, the Guarantor or any of its Subsidiaries. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.
SECTION 11.10. NO RECOURSE AGAINST OTHERS.
A director, officer, employee, stockholder or Affiliate, as such, of
LGII or the Guarantor shall not have any liability for any obligations of
LGII under the Senior Notes or this Indenture or for any obligations of the
Guarantor under the Guarantee or for any claim based on, in respect of or by
reason of, such obligations or their creation. Each Holder by accepting a
Senior Note waives and releases all such liability.
SECTION 11.11. SUCCESSORS.
All agreements of each of LGII and the Guarantor in this Indenture and
the Senior Notes and the Guarantee shall bind its successors. All agreements
of the Trustee in this Indenture shall bind its successors.
SECTION 11.12. DUPLICATE ORIGINALS.
The parties may sign any number of copies of this Indenture. Each
signed copy shall be an original, but all such executed copies together
represent the same agreement.
SECTION 11.13. SEPARABILITY.
In case any provision in this Indenture, the Guarantee or the Senior
Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected
or impaired thereby, and a Holder shall have no claim therefor against any
party hereto.
SECTION 11.14. TABLE OF CONTENTS, HEADINGS, ETC..
The Table of Contents and headings of the Articles and Sections of this
Indenture have been inserted for convenience of reference only, are not to be
considered a part hereof, and shall in no way modify or restrict any of the
terms or provisions hereof.
80
SECTION 11.15. BENEFITS OF INDENTURE.
Nothing in this Indenture or in the Senior Notes, express or implied,
shall give to any person, other than the parties hereto and their successors
hereunder, and the Holders, any benefit or any legal or equitable right,
remedy or claim under this Indenture.
81
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be
duly executed, and their respective corporate seals to be hereunto affixed
and attested, all as of the day and year first above written.
XXXXXX GROUP INTERNATIONAL, INC.
By: /s/ XXXXXXX X. XXXXXX
-----------------------------------------
Name: XXXXXXX X. XXXXXX
------------------------------------
Title: CHIEF EXECUTIVE OFFICER
-----------------------------------
[CORPORATE SEAL]
Attest: /s/ XXXXX X. XXXXXXX
By: /s/ XXXXX X. XXXXXXX
--------------------------------------
Title: CORPORATE SECRETARY
------------------------------------
THE XXXXXX GROUP INC.
By: /s/ XXXXXXX X. XXXXXX
-----------------------------------------
Name: XXXXXXX X. XXXXXX
------------------------------------
Title: CHIEF EXECUTIVE OFFICER
-----------------------------------
[CORPORATE SEAL]
Attest: /s/ XXXXX X. XXXXXXX
By: /s/ XXXXX X. XXXXXXX
--------------------------------------
Title: CORPORATE SECRETARY
------------------------------------
00
XXXXX XXXXXX BANK AND TRUST
COMPANY, as Trustee
By: /s/ XXXXXXX X. XXXXXXX
-----------------------------------------
Name: XXXXXXX X. XXXXXXX
----------------------------------
Title: VICE PRESIDENT
----------------------------------
[CORPORATE SEAL]
Attest: /s/ XXXXXXXX X. XXXXXXXX
---------------------------
By: /s/ XXXXXXXX X. XXXXXXXX
-------------------------------
Title: ASSISTANT SECRETARY
-----------------------------
83
EXHIBIT A
THIS GLOBAL NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED
INVESTOR" (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES
ACT) (AN "ACCREDITED INVESTOR"), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS
AFTER THE ORIGINAL ISSUANCE OF THIS GLOBAL NOTE RESELL OR OTHERWISE TRANSFER
THIS GLOBAL NOTE EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B)
INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE
WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN
ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A
SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF
WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE), (D) PURSUANT TO THE EXEMPTION
FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE) OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS
GLOBAL NOTE IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS
LEGEND.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO THE COMPANY
OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER
NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
HEREON IS MADE TO CEDE & CO. TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS IN WHOLE,
BUT NOT IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL NOTE SHALL BE
LIMITED TO
A-1
TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTIONS 27
AND 28 OF THE INDENTURE.
XXXXXX GROUP INTERNATIONAL, INC.
% SENIOR GUARANTEED NOTES DUE [ ]
No. ______ $__________
CUSIP No.
XXXXXX GROUP INTERNATIONAL, INC., a corporation incorporated under the
laws of the State of Delaware (herein called the "COMPANY", which term
includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to CEDE & Co. or registered
assigns, the principal sum of _______________ Dollars on [ ], at the
office or agency of the Company referred to below, and to pay interest
thereon on ________ and __________, in each year, commencing on
________________, accruing from the most recent Interest Payment Date to
which interest has been paid or duly provided for or, if no interest has been
paid, from the original date of issuance, at the rate of % per annum,
until the principal hereof is paid or duly provided for. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months.
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture referred to on
the reverse hereof, be paid to the person in whose name this Global Note (or
one or more Predecessor Notes) is registered at the close of business on the
Regular Record Date for such interest, which shall be [ ] or
[ ](whether or not a Business Day), as the case may be, next
preceding such Interest Payment Date (each a "REGULAR RECORD DATE"). Any
such interest not so punctually paid, or duly provided for, and interest on
such defaulted interest at the rate borne by the Global Notes, to the extent
lawful, shall forthwith cease to be payable to the Holder on such Regular
Record Date, and may be paid to the person in whose name this Global Note (or
one or more Predecessor Notes) is registered at the close of business on a
special record date for the payment of such defaulted interest to be fixed by
the Trustee, notice of which shall be given to Holders of Global Notes not
less than 10 days prior to such special record date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Global Notes may be listed, and upon such
notice as may be required by such exchange, all as more fully provided in
such Indenture.
The Holder of this Global Note is entitled to the benefits of a
Registration Rights Agreement, dated as of May 28, 1998, among the Company,
the Guarantor and the Initial Purchasers named therein (the "REGISTRATION
RIGHTS AGREEMENT"). The Registration Rights Agreement contains provisions
permitting an increase in the interest rate borne by
A-2
this Global Note in the event of the failure to file or to have declared
effective an Exchange Offer Registration Statement or Shelf Registration
Statement (as such terms are defined in the Registration Rights Agreement),
or to consummate an Exchange Offer within prescribed time periods specified
in such Registration Rights Agreement.
Payment of the principal of, premium, if any, and interest on this
Global Note will be made at the office or agency of the Company maintained
for that purpose in the Borough of Manhattan in The City of New York, or at
such other office or agency of the Company as may be maintained for such
purpose, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts;
PROVIDED, HOWEVER, that payment of interest may be made at the option of the
Company by check mailed to the address of the person entitled thereto as such
address shall appear on the security register maintained by the Registrar.
Reference is hereby made to the further provisions of this Global Note
set forth on the reverse hereof.
Unless the certificate of authentication hereon has been duly executed
by the Trustee referred to on the reverse hereof by manual signature, and a
seal has been affixed hereon, this Global Note shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose.
A-3
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed under its corporate seal.
Dated:
XXXXXX GROUP INTERNATIONAL, INC.
By:
------------------------------------------
Name:
Title:
By:
------------------------------------------
Name:
Title:
[CORPORATE SEAL]
Attest:
By:
---------------------------
Title:
-----------------------
A-4
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Global Notes of the series designated therein
referred to in the within-mentioned Indenture.
STATE STREET BANK AND TRUST
COMPANY, as TRUSTEE
By:
-------------------------------------
Authorized Officer
A-5
(Reverse of Global Note)
1. INDENTURE. This Global Note is one of a duly authorized series of
Senior Notes of the Company designated as its % Senior Guaranteed Notes
due [ ] (the "SENIOR NOTES"), which may be issued under an indenture
(herein called the "INDENTURE") dated as of [ ], among Xxxxxx
Group International, Inc., a Delaware corporation, as issuer (the "COMPANY"),
The Xxxxxx Group Inc., as guarantor of the obligations of the Company under
the Indenture (the "GUARANTOR") and State Street Bank and Trust Company, a
[ ], as trustee (herein called the "TRUSTEE," which term includes
any successor Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties, obligations and
immunities thereunder of the Company, the Trustee, the Guarantor and the
Holders of the Senior Notes, and of the terms upon which the Senior Notes
are, and are to be, authenticated and delivered.
All capitalized terms used in this Senior Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned
to them in the Indenture.
No reference herein to the Indenture and no provisions of this Senior
Note or of the Indenture shall alter or impair the obligation of the Company
or the Guarantor, which is absolute and unconditional, to pay the principal
of, premium, if any, and interest on this Senior Note at the times, place and
rate, and in the coin or currency, herein prescribed.
2. REDEMPTION.
(a) OPTIONAL REDEMPTION. The Senior Notes are redeemable as a whole or
in part, at the option of the Company, at any time upon not less than 10 nor
more than 60 days' prior notice at a Redemption Price equal to the greater of
(i) 100% of their principal amount and (ii) the sum of the present values of
the remaining scheduled payments of principal and interest thereon discounted
to the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the applicable Treasury Yield plus
37.5 (in the case of Series 6 Senior Notes) basis points or 50 (in the case
of Series 7 Senior Notes) basis points, plus in each case accrued interest to
the date of redemption.
"TREASURY YIELD" means, with respect to any Redemption Date, the rate
per annum equal to the semi-annual equivalent yield to maturity of the
applicable Comparable Treasury Issue, assuming a price for the applicable
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the applicable Comparable Treasury Price for such Redemption Date.
"COMPARABLE TREASURY ISSUE" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable
to the remaining term of the Senior Notes, that would be utilized, at the
time of selection and in accordance
A-6
with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the Senior Notes.
"INDEPENDENT INVESTMENT BANKER" means Salomon Brothers Inc and its successor
or, if such firm is unwilling or unable to select the applicable Comparable
Treasury Issue, an independent investment banking institution of national
standing appointed by the Trustee.
"COMPARABLE TREASURY PRICE" means, with respect to any Redemption Date,
(i) the average of the bid and asked prices for the applicable Comparable
Treasury Issue (expressed in each case as a percentage of its principal
amount) on the third business day preceding such Redemption Date, as set
forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated "Composite 3:30 p.m.
Quotations for U.S. Government Securities" or (ii) if such release (or any
successor release) is not published or does not contain such prices on such
business day, (A) the average of the applicable Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest
such Reference Treasury Dealer Quotations, or (B) if the Trustee obtains
fewer than four such Reference Treasury Dealer Quotations, the average of all
such Quotations. "REFERENCE TREASURY DEALER QUOTATIONS" means, with respect
to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices of the applicable
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.
"REFERENCE TREASURY DEALER" means each of Salomon Brothers Inc, Xxxxxxx,
Xxxxx & Co., Xxxxxxx Xxxxx Securities Inc., BT Alex. Xxxxx Incorporated,
Deutsche Xxxxxx Xxxxxxxx Inc., and their respective successors; PROVIDED
HOWEVER, that if any of the foregoing shall cease to be a primary U.S.
Government Securities dealer in New York City (a "PRIMARY TREASURY DEALER"),
the Company shall substitute therefor another Primary Treasury Dealer.
(b) PARTIAL REDEMPTION. In the event of redemption of this Senior Note
in part only, a new Senior Note or Senior Notes for the unredeemed portion
hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof.
3. GUARANTEE. This Senior Note is entitled to a senior Guarantee made
for the benefit of the Holders. Reference is hereby made to the Guarantee
attached hereto and the Indenture (including, without limitation, Article 10
thereof) for the terms of the Guarantee.
4. OFFERS TO PURCHASE. Sections 4.11 and 4.12 of the Indenture
provide that upon the occurrence of a Change of Control and following certain
Asset Sales, and subject to further limitations contained therein, the
Company shall make an offer to purchase certain amounts of the Senior Notes
in accordance with the procedures set forth in the Indenture.
A-7
5. DEFAULTS AND REMEDIES. If an Event of Default shall occur and be
continuing, the principal of all of the outstanding Senior Notes, plus all
accrued and unpaid interest, if any, to and including the date the Senior
Notes are paid, may be declared due and payable in the manner and with the
effect provided in the Indenture.
6. DEFEASANCE. The Indenture contains provisions (which provisions
apply to this Senior Note) for defeasance at any time of (a) the entire
indebtedness of the Company and the Guarantor under this Senior Note and (b)
certain restrictive covenants and related Defaults and Events of Default, in
each case upon compliance by the Company with certain conditions set forth
therein.
7. AMENDMENTS AND WAIVERS. The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of not less than a majority in aggregate principal amount of the
Senior Notes of each series at the time outstanding. The Indenture also
contains provisions permitting the Holders of specified percentages in
aggregate principal amount of each series of the Senior Notes at the time
outstanding, on behalf of the Holders of all the Senior Notes of such series,
to waive compliance by the Company with certain provisions of the Indenture
and certain past Defaults under the Indenture and this Senior Note and their
consequences. Any such consent or waiver by or on behalf of the Holder of
this Senior Note shall be conclusive and binding upon such Holder and upon
all future Holders of this Senior Note and of any Senior Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof
whether or not notation of such consent or waiver is made upon this Senior
Note.
8. DENOMINATIONS, TRANSFER AND EXCHANGE. The Senior Notes are
issuable only in registered form without coupons in denominations of $1,000
and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, the Senior Notes are exchangeable
for a like aggregate principal amount of Senior Notes of a different
authorized denomination, as requested by the Holder surrendering the same.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Senior Note is registrable on the security
register of the Company, upon surrender of this Senior Note for registration
of transfer at the office or agency of the Company maintained for such
purpose in the Borough of Manhattan in The City of New York or at such other
office or agency of the Company as may be maintained for such purpose, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Registrar duly executed by, the Holder
hereof or his attorney duly authorized in writing, and thereupon one or more
new Senior Notes, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.
A-8
No service charge shall be made for any registration of transfer or
exchange or redemption of Senior Notes, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.
9. PERSONS DEEMED OWNERS. Prior to and at the time of due presentment
of this Senior Note for registration of transfer, the Company, the Trustee
and any agent of the Company or the Trustee may treat the person in whose
name this Senior Note is registered as the owner hereof for all purposes,
whether or not this Senior Note shall be overdue, and neither the Company,
the Trustee nor any agent shall be affected by notice to the contrary.
10. GOVERNING LAW. This Senior Note and the Guarantee shall be
governed by and construed in accordance with the laws of the State of New
York, without regard to conflicts of law principles.
A-9
Schedule A
Exchange of (a) portions of this Global Note for
Physical Notes or (b) Physical Notes
for an interest in this Global Note.
Principal Amount of Physical Notes Issued in
Exchange for, or Exchanged for an Interest in, Remaining Principal Amount of Notation
Date the Global Note this Global Note Made By
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
---- ---------------------------------------------- ----------------------------- --------
A-10
EXHIBIT B
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD
EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1)
REPRESENTS THAT (A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) OR (B) IT IS AN INSTITUTIONAL "ACCREDITED
INVESTOR" (AS DEFINED IN RULE 501(a)(1), (2), (3) OR (7) UNDER THE SECURITIES
ACT) (AN "ACCREDITED INVESTOR"), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS
AFTER THE ORIGINAL ISSUANCE OF THIS NOTE RESELL OR OTHERWISE TRANSFER THIS
NOTE EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE
UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A
UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED
INVESTOR THAT, PRIOR TO SUCH TRANSFER, FURNISHES TO THE TRUSTEE A SIGNED
LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH
LETTER CAN BE OBTAINED FROM THE TRUSTEE), (D) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE) OR
(E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT
AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS NOTE IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
XXXXXX GROUP INTERNATIONAL, INC.
% SENIOR GUARANTEED NOTES DUE [ ]
No. ______ $__________
CUSIP No.
XXXXXX GROUP INTERNATIONAL, INC., a corporation incorporated under the
laws of the State of Delaware (herein called the "COMPANY", which term
includes any successor corporation under the Indenture hereinafter referred
to), for value received, hereby promises to pay to [ ] or registered
assigns, the principal sum of _______________ Dollars on [ ], at the
office or agency of the Company referred to below, and to pay interest
thereon on ________ and __________, in each year, commencing on
________________, accruing from the most recent Interest Payment Date to
which interest has been paid or duly provided for or, if no interest has been
paid, from the original date of issuance, at the rate of % per annum,
until the principal hereof is paid or duly provided for. Interest shall be
computed on the basis of a 360-day year of twelve 30-day months.
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture referred to on
the reverse hereof, be paid to the person in whose name this Physical Note
(or one or more Predecessor Notes) is registered
B-1
at the close of business on the Regular Record Date for such interest, which
shall be [ ] or [ ] (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date (each a "REGULAR
RECORD DATE"). Any such interest not so punctually paid, or duly provided
for, and interest on such defaulted interest at the rate borne by the
Physical Notes, to the extent lawful, shall forthwith cease to be payable to
the Holder on such Regular Record Date, and may be paid to the person in
whose name this Physical Note (or one or more Predecessor Notes) is
registered at the close of business on a special record date for the payment
of such defaulted interest to be fixed by the Trustee, notice of which shall
be given to Holders of Senior Notes not less than 10 days prior to such
special record date, or may be paid at any time in any other lawful manner
not inconsistent with the requirements of any securities exchange on which
the Senior Notes may be listed, and upon such notice as may be required by
such exchange, all as more fully provided in such Indenture.
The Holder of this Physical Note is entitled to the benefits of a
Registration Rights Agreement, dated as of May 28, 1998, among the Company,
the Guarantor and the Initial Purchasers named therein (the "REGISTRATION
RIGHTS AGREEMENT"). The Registration Rights Agreement contains provisions
permitting an increase in the interest rate borne by this Physical Note in
the event of the failure to file or to have declared effective an Exchange
Offer Registration Statement or Shelf Registration Statement (as such terms
are defined in the Registration Rights Agreement), or to consummate an
Exchange Offer within prescribed time periods specified in such Registration
Rights Agreement.
Payment of the principal of, premium, if any, and interest on this
Physical Note will be made at the office or agency of the Company maintained
for that purpose in the Borough of Manhattan in The City of New York, or at
such other office or agency of the Company as may be maintained for such
purpose, in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts;
PROVIDED, HOWEVER, that payment of interest may be made at the option of the
Company by check mailed to the address of the person entitled thereto as such
address shall appear on the security register maintained by the Registrar.
Reference is hereby made to the further provisions of this Physical Note
set forth on the reverse hereof.
Unless the certificate of authentication hereon has been duly executed
by the Trustee referred to on the reverse hereof by manual signature, and a
seal has been affixed hereon, this Physical Note shall not be entitled to any
benefit under the Indenture, or be valid or obligatory for any purpose.
B-2
IN WITNESS WHEREOF, the Company has caused this instrument to be
duly executed under its corporate seal.
Dated:
XXXXXX GROUP INTERNATIONAL, INC.
By:
------------------------------------------
Name:
Title:
By:
------------------------------------------
Name:
Title:
[CORPORATE SEAL]
Attest:
By:
------------------------
Title:
---------------------
B-3
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Physical Notes of the series designated therein
referred to in the within-mentioned Indenture.
STATE STREET BANK AND TRUST
COMPANY, as TRUSTEE
By:
--------------------------------------
Authorized Officer
B-4
(Reverse of Note)
1. INDENTURE. This Note is one of a duly authorized series of Senior
Notes of the Company designated as its % Senior Guaranteed Notes due
[ ] (the "SENIOR NOTES"), which may be issued under an indenture (herein
called the "INDENTURE") dated as of [ ], among Xxxxxx Group
International, Inc., a Delaware corporation, as issuer (the "COMPANY"), The
Xxxxxx Group Inc., as guarantor of the obligations of the Company under the
Indenture (the "GUARANTOR") and State Street Bank and Trust Company, a
[ ], as trustee (herein called the "TRUSTEE," which term includes
any successor Trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of
the respective rights, limitations of rights, duties, obligations and
immunities thereunder of the Company, the Trustee, the Guarantor and the
Holders of the Senior Notes, and of the terms upon which the Senior Notes
are, and are to be, authenticated and delivered.
All capitalized terms used in this Note which are defined in the
Indenture and not otherwise defined herein shall have the meanings assigned
to them in the Indenture.
No reference herein to the Indenture and no provisions of this Note or
of the Indenture shall alter or impair the obligation of the Company or the
Guarantor, which is absolute and unconditional, to pay the principal of,
premium, if any, and interest on this Note at the times, place and rate, and
in the coin or currency, herein prescribed.
2. REDEMPTION.
(a) OPTIONAL REDEMPTION. The Senior Notes are redeemable as a whole or
in part, at the option of the Company, at any time upon not less than 10 nor
more than 60 days' prior notice at a Redemption Price equal to the greater of
(i) 100% of their principal amount and (ii) the sum of the present values of
the remaining scheduled payments of principal and interest thereon discounted
to the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the applicable Treasury Yield plus
37.5 (in the case of Series 6 Senior Notes) basis points or 50 (in the case
of Series 7 Senior Notes) basis points, plus in each case accrued interest to
the date of redemption.
"TREASURY YIELD" means, with respect to any Redemption Date, the rate
per annum equal to the semi-annual equivalent yield to maturity of the
applicable Comparable Treasury Issue, assuming a price for the applicable
Comparable Treasury Issue (expressed as a percentage of its principal amount)
equal to the applicable Comparable Treasury Price for such Redemption Date.
"COMPARABLE TREASURY ISSUE" means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable
to the remaining term of the Senior Notes, that would be utilized, at the
time of selection and in accordance with customary financial practice, in
pricing new issues of corporate debt securities of comparable
B-5
maturity to the remaining term of the Senior Notes. "INDEPENDENT INVESTMENT
BANKER" means Salomon Brothers Inc and its successor or, if such firm is
unwilling or unable to select the applicable Comparable Treasury Issue, an
independent investment banking institution of national standing appointed by
the Trustee.
"COMPARABLE TREASURY PRICE" means, with respect to any Redemption Date,
(i) the average of the bid and asked prices for the applicable Comparable
Treasury Issue (expressed in each case as a percentage of its principal
amount) on the third business day preceding such Redemption Date, as set
forth in the daily statistical release (or any successor release) published
by the Federal Reserve Bank of New York and designated "Composite 3:30 p.m.
Quotations for U.S. Government Securities" or (ii) if such release (or any
successor release) is not published or does not contain such prices on such
business day, (A) the average of the applicable Reference Treasury Dealer
Quotations for such Redemption Date, after excluding the highest and lowest
such Reference Treasury Dealer Quotations, or (B) if the Trustee obtains
fewer than four such Reference Treasury Dealer Quotations, the average of all
such Quotations. "REFERENCE TREASURY DEALER QUOTATIONS" means, with respect
to each Reference Treasury Dealer and any Redemption Date, the average, as
determined by the Trustee, of the bid and asked prices of the applicable
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by such Reference Treasury
Dealer at 5:00 p.m. on the third business day preceding such Redemption Date.
"REFERENCE TREASURY DEALER" means each of Salomon Brothers Inc, Xxxxxxx,
Xxxxx & Co., Xxxxxxx Xxxxx Securities Inc., BT Alex. Xxxxx Incorporated, and
Deutsche Xxxxxx Xxxxxxxx Inc., and their respective successors; PROVIDED
HOWEVER, that if any of the foregoing shall cease to be a primary U.S.
Government Securities dealer in New York City (a "PRIMARY TREASURY DEALER"),
the Company shall substitute therefor another Primary Treasury Dealer.
(b) PARTIAL REDEMPTION. In the event of redemption of this Note in
part only, a new Senior Note or Senior Notes for the unredeemed portion
hereof shall be issued in the name of the Holder hereof upon the cancellation
hereof.
3. GUARANTEE. This Note is entitled to a senior Guarantee made for
the benefit of the Holders. Reference is hereby made to the Guarantee
attached hereto and the Indenture (including, without limitation, Article 10
thereof) for the terms of the Guarantee.
4. OFFERS TO PURCHASE. Sections 4.11 and 4.12 of the Indenture
provide that upon the occurrence of a Change of Control and following certain
Asset Sales, and subject to further limitations contained therein, the
Company shall make an offer to purchase certain amounts of the Senior Notes
in accordance with the procedures set forth in the Indenture.
5. DEFAULTS AND REMEDIES. If an Event of Default shall occur and be
continuing, the principal of all of the outstanding Senior Notes, plus all
accrued and unpaid interest, if any,
B-6
to and including the date the Senior Notes are paid, may be declared due and
payable in the manner and with the effect provided in the Indenture.
6. DEFEASANCE. The Indenture contains provisions (which provisions
apply to this Note) for defeasance at any time of (a) the entire indebtedness
of the Company and the Guarantor under this Note and (b) certain restrictive
covenants and related Defaults and Events of Default, in each case upon
compliance by the Company with certain conditions set forth therein.
7. AMENDMENTS AND WAIVERS. The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Company and the rights of the Holders under
the Indenture at any time by the Company and the Trustee with the consent of
the Holders of not less than a majority in aggregate principal amount of the
Senior Notes of each series at the time outstanding. The Indenture also
contains provisions permitting the Holders of specified percentages in
aggregate principal amount of each series of the Senior Notes at the time
outstanding, on behalf of the Holders of all the Senior Notes of such series,
to waive compliance by the Company with certain provisions of the Indenture
and certain past Defaults under the Indenture and this Senior Note and their
consequences. Any such consent or waiver by or on behalf of the Holder of
this Note shall be conclusive and binding upon such Holder and upon all
future Holders of this Note and of any Senior Note issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof
whether or not notation of such consent or waiver is made upon this Note.
8. DENOMINATIONS, TRANSFER AND EXCHANGE. The Senior Notes are
issuable only in registered form without coupons in denominations of $1,000
and any integral multiple thereof. As provided in the Indenture and subject
to certain limitations therein set forth, the Senior Notes are exchangeable
for a like aggregate principal amount of Senior Notes of a different
authorized denomination, as requested by the Holder surrendering the same.
As provided in the Indenture and subject to certain limitations therein
set forth, the transfer of this Note is registrable on the security register
of the Company, upon surrender of this Note for registration of transfer at
the office or agency of the Company maintained for such purpose in the
Borough of Manhattan in The City of New York or at such other office or
agency of the Company as may be maintained for such purpose, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory
to the Company and the Registrar duly executed by, the Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Senior
Notes, of authorized denominations and for the same aggregate principal
amount, will be issued to the designated transferee or transferees.
No service charge shall be made for any registration of transfer or
exchange or redemption of Senior Notes, but the Company may require payment
of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.
9. PERSONS DEEMED OWNERS. Prior to and at the time of due presentment
of this Note for registration of transfer, the Company, the Trustee and any
agent of the Company or
B-7
the Trustee may treat the person in whose name this Note is registered as the
owner hereof for all purposes, whether or not this Note shall be overdue, and
neither the Company, the Trustee nor any agent shall be affected by notice to
the contrary.
10. GOVERNING LAW. This Note and the Guarantee shall be governed by
and construed in accordance with the laws of the State of New York, without
regard to conflicts of law principles.
B-8
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to have this Senior Note and the Guarantee purchased by the
Company pursuant to Section 4.11 or 4.12 of the Indenture, check the
appropriate box:
Section 4.11 [ ]
Section 4.12 [ ]
If you wish to have a portion of this Senior Note purchased by the
Company pursuant to Section 4.11 or 4.12 of the Indenture, state the amount:
$
-----------------
Date: Your Signature:
-------------------- ----------------------------------
(Sign exactly as your name
appears on the other side of this
Senior Note)
Signature Guarantee:
--------------------------------
B-9
EXHIBIT C
SENIOR GUARANTEE
For value received, the undersigned hereby unconditionally guarantees to
the Holder of this Senior Note the payments of principal of, premium, if any,
and interest on this Senior Note in the amounts and at the time when due and
interest on the overdue principal, premium, if any, and interest, if any, of
this Senior Note, if lawful, and the payment or performance of all other
obligations of the Company under the Indenture or the Senior Notes, to the
Holder of this Senior Note and the Trustee, all in accordance with and
subject to the terms and limitations of this Senior Note, the Indenture
(including, without limitation, Article 10 thereof) and this Guarantee. This
Guarantee will become effective in accordance with Article Ten of the
Indenture and its terms shall be evidenced therein. The validity and
enforceability of the Guarantee shall not be affected by the fact that it is
not affixed to any particular Senior Note.
The obligations of the undersigned to the Holders of Senior Notes and to
the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth in the Indenture (including, without limitation, Article 10 thereof)
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. Each Holder of a Senior Note, by accepting the same,
agrees to and shall be bound by such provisions.
C-1
IN WITNESS WHEREOF, the Guarantor has caused this instrument to be duly
executed under its corporate seal.
Dated:
THE XXXXXX GROUP INC.
By:
-------------------------------------
Name:
Title:
By:
-------------------------------------
Name:
Title:
[CORPORATE SEAL]
Attest:
By:
----------------------------
Title:
-------------------------
C-2
ASSIGNMENT FORM
If you the holder want to assign this Senior Note, fill in the form
below and have your signature guaranteed:
I or we assign and transfer this Senior Note to
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
(Insert assignee's social security or tax ID number)
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
(Print or type assignee's name, address and zip code) and irrevocably
appoint agent to transfer this Senior Note on the books of the Company. The
agent may substitute another to act for him.
Date: Your Signature:
-------------------- -----------------------------------
(Sign exactly as your name
appears on the other side of this
Senior Note)
Signature Guarantee:
---------------------------------
