EXHIBIT 4.02
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ADELPHIA COMMUNICATIONS CORPORATION
AND
THE BANK OF NEW YORK,
Trustee
6% Convertible Subordinated Notes due 2006
FIRST SUPPLEMENTAL INDENTURE
Dated as of January 23, 2001
TO
SUBORDINATED DEBT INDENTURE
Dated as of January 23, 2001
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TABLE OF CONTENTS
Page
ARTICLE 1 DEFINITIONS
S 1.1. Definitions............................................................................................1
ARTICLE 2 FORM AND TERMS OF THE NOTES
S 2.1. Form and Dating........................................................................................7
S 2.2. Execution and Authentication...........................................................................8
S 2.3. Conversion.............................................................................................8
S 2.4. Redemption............................................................................................17
S 2.5. U.S. Depository and Paying Agent for Notes............................................................17
S 2.6. Transfer and Exchange of Notes........................................................................17
S 2.7. Change of Control Offer...............................................................................19
S 2.8. Events of Default.....................................................................................21
S 2.9. Acceleration..........................................................................................23
S 2.10. Mergers and Consolidations............................................................................23
S 2.11. Supplemental Indentures...............................................................................23
S 2.12. Covenants.............................................................................................24
S 2.13. Defeasance and Covenant Defeasance....................................................................27
S 2.14. Subordination.........................................................................................27
ARTICLE 3 MISCELLANEOUS
S 3.1. Effect of Headings....................................................................................33
S 3.2. Successors and Assigns................................................................................33
S 3.3. Separability Clause...................................................................................33
S 3.4. Governing Law.........................................................................................33
EXHIBITS
Exhibit A FORM OF NOTES
THIS FIRST SUPPLEMENTAL INDENTURE, dated as of January 23,
2001 ("Supplemental Indenture"), is by and between ADELPHIA COMMUNICATIONS
CORPORATION, a Delaware corporation (the "Company"), having its principal office
at Xxx Xxxxx Xxxx Xxxxxx, Xxxxxxxxxxx, XX 00000, and THE BANK OF NEW YORK, a New
York banking corporation, as trustee (the "Trustee"), having its principal
corporate trust office at 000 Xxxxxxx Xxxxxx, 00xx Xxxxx, Xxx Xxxx, XX 00000.
WITNESSETH:
WHEREAS, the Company and The Bank of New York, acting as
trustee, executed and delivered a Subordinated Debt Indenture, dated as of
January 23, 2001 (the "Indenture"), to provide for the issuance by the Company
from time to time of Securities to be issued in one or more series as provided
in the Indenture;
WHEREAS, the issuance and sale of up to $862,500,000,
aggregate principal amount of a series of the Company's Securities (the "Notes")
have been authorized by resolutions adopted by the Board of Directors of the
Company on January 5, 2001 and January 17, 2001, and the 2001 Public Offering
Committee of the Board of Directors by unanimous written consent dated January
17, 2001 adopted resolutions;
WHEREAS, the Company desires to issue and sell $750,000,000
aggregate principal amount of the Notes on the date hereof;
WHEREAS, the Company desires to enter into a supplemental
indenture pursuant to Section 9.1 of the Indenture to supplement the Indenture
to establish the form and terms of the Notes; and
NOW, THEREFORE, for and in consideration of the premises
stated herein and the purchase of the Notes by the Holders thereof, the parties
hereto hereby enter into this Indenture, for the equal and proportionate benefit
of all Holders of Notes, as follows:
ARTICLE 1
DEFINITIONS
S 1.1. Definitions.
(a) All of the terms used in this Supplemental Indenture which
are defined in the Indenture shall have the meanings specified in the Indenture,
unless otherwise provided herein or unless the context otherwise requires, and
for the purposes of this Supplemental Indenture, the following terms have the
meanings set forth in this Section:
"Additional Notes" means up to $112,500,000 aggregate
principal amount of 6% Convertible Subordinated Notes due 2006 (other than the
Initial Notes) issued under this Indenture in accordance with Sections 2.2 and
2.10 hereof, as part of the same series as the Initial Notes.
"Affiliate" means a Person (i) which directly or indirectly
through one or more intermediaries controls, or is controlled by, or is under
common control with, such Person, (ii) which beneficially owns or holds 10% or
more of any class of the voting Capital Stock of such Person, or (iii) of which
10% or more of the voting Capital Stock is beneficially owned or held by such
Person or a Subsidiary of such Person. Without a limitation, an Affiliate also
includes any director or executive officer of the Company. As used herein,
"Affiliate" shall not include a Restricted Subsidiary.
"Agent" means any Security Registrar, Paying Agent,
co-registrar or agent for service of notices and demands. See Section 2.5
hereof.
"Agent Members" means members of, or participants in, the U.S.
Depository.
"Change of Control" means the occurrence of any of the
following:
(1) the sale, transfer, conveyance, lease or other
disposition (including by way of liquidation or
dissolution, but excluding by way of merger or
consolidation), in one or a series or related
transactions, of all or substantially all of the
assets of the Company and its subsidiaries, taken as
a whole, to any "person" (as such term is used in
Section 13(d)(3) of the Exchange Act);
(2) the adoption of a plan relating to the liquidation or
dissolution of Adelphia Communications Corporation;
(3) the consummation of any transaction (including,
without limitation, any merger or consolidation), the
result of which is that any "person" or "group"
(within the meaning of Section 13(d) and 14(d)(2) of
the Exchange Act), other than the Rigas Family and
its Affiliates, becomes the "beneficial owner" (as
defined in Rule 13d-3 under the Exchange Act) of more
than 35% of the total voting power required to elect
or designate for election a majority of Adelphia's
Board of Directors and attaching to the then
outstanding voting capital stock of Adelphia and (b)
the Rigas Family, together with its Affiliates, is
not at such time the "beneficial owner" (as defined
in Rule 13d-3 under the Exchange Act) of more than
35% of the total voting power required to elect or
designate for election a majority of the Company's
Board of Directors and attaching to the then
outstanding voting capital stock of the Company.
(4) during any period of two consecutive calendar years,
individuals who at the beginning of such period
constituted the Company's Board of Directors
(together with any new directors whose election by
the Company's Board of Directors or whose nomination
for election by the Company's stockholders was
approved by a vote of at least two-thirds of the
directors then still in office who either were
directors at the beginning of such period or whose
election or nomination for election was previously so
approved or approved by the Rigas Family and its
Affiliates at a time when they had the right or
ability by voting right, contract or otherwise to
elect or designate for election a majority of the
Company's Board of Directors) cease for any reason to
constitute a majority of the directors then in
office; or
(5) the Company consolidates with, or merges with or
into, any person, or any person consolidates with, or
merges with or into, the Company, in any such event
pursuant to a transaction in which any of the
outstanding Voting Stock of the Company is converted
into or exchanged for cash securities or other
property, other than any such transaction where the
Voting Stock of the Company outstanding immediately
prior to such transaction is converted into or
exchanged for Voting Stock (other than Disqualified
Stock) of the surviving or transferee person
constituting a majority of the outstanding shares of
such Voting Stock of such surviving or transferee
person immediately after giving effect to such
issuance.
However, a Change of Control will not be deemed to have
occurred if either (A) the closing price per share of the Class A
Common Stock for any five trading days within the period of ten (10)
consecutive trading days ending immediately after the later of the
Change of Control or the public announcement of the Change of Control,
in the case of a Change of Control relating to an acquisition of Voting
Stock, or the period of ten (10) consecutive trading days ending
immediately before the Change of Control, in the case of Change of
Control relating to a merger, consolidation or asset sale, equals or
exceeds 105% of the Conversion Price of the Notes in effect on each of
those trading days or (B) all of the consideration (excluding cash
payments for fractional shares and cash payments made pursuant to
dissenters' appraisal rights) in a merger or consolidation otherwise
constituting a Change of Control under clause (3) and/or clause (5)
above issuable to the holders of the Class A Common Stock, consists of
shares of common stock traded on a national securities exchange or
quoted on the Nasdaq National Market (or will be so traded or quoted
immediately following such merger or consolidation) and as a result of
such merger or consolidation the Notes become convertible into such
common stock.
"Class A Common Stock" means the Class A common stock, par
value $0.01 per share, of the Company.
"Class B Common Stock" means the Class B common stock, par
value $0.01 per share, of the Company.
"Conversion Agent" means any Person authorized by the Company
to convert the Notes properly presented for conversion on behalf of the Company.
The Company may act as Conversion Agent with respect to the Notes. The Company
initially designates The Bank of New York as Conversion Agent.
"Daily Market Price" means the price of a share of Class A
Common Stock on the relevant date, determined (a) on the basis of the daily
closing or last reported sale price regular way of the Class A Common Stock as
reported on the Nasdaq National Market, or if the Class A Common Stock is not
then listed on the Nasdaq National Market, as reported on such national
securities exchange upon which the Class A Common Stock is listed, or (b) if
there is no such reported sale on the day in question, on the basis of the
average of the closing bid and asked quotations regular way as so reported, or
(c) if the Class A Common Stock is not listed on the Nasdaq National Market or
on any national securities exchange, on the basis of the average of the high bid
and low asked quotations regular way on the day in question in the
over-the-counter market as reported by the National Association of Securities
Dealers Automated Quotation System, or if not so quoted, as reported by National
Quotation Bureau, Incorporated, or a similar organization.
"Definitive Notes" means Notes that are in the form of the
Notes attached hereto as Exhibit A, that do not include the information called
for by Section 2.7 of the Indenture.
"Designated Senior Debt" means: (1) Indebtedness outstanding
on the date of the Indenture; and (2) the Company's obligations under any
particular Senior Debt in which the instrument creating or evidencing the same
or the assumption or guarantee thereof, or related agreements or documents to
which the Company is a party, expressly provides that such indebtedness shall be
Designated Senior Debt for purposes of the Indenture.
"Disqualified Stock" means any Capital Stock that, by its
terms (or by the terms of any security into which it is convertible, or for
which it is exchangeable, in each case at the option of the holder of the
Capital Stock), or upon the happening of any event, matures or is mandatorily
redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at
the option of the holder of the Capital Stock, in whole or in part, on or prior
to the date that is 91 days after the date on which the Notes mature.
"Excess Payment" means the excess of: (1) the aggregate of the
cash and value of other consideration paid by the Company or any of its
subsidiaries with respect to shares acquired in a tender offer over (2) the
market value of such acquired shares after giving effect to the completion of a
tender offer.
"Fundamental Change" means a Change of Control or a
Termination of Listing.
"Global Note" means a permanent global note that contains the
paragraph referred to in Section 2.7 of the Indenture and the additional
Schedule of Exchanges of Notes to the form of the Note attached hereto as
Exhibit A, and that is deposited with and registered in the name of the U.S.
Depository.
"Guarantee" means a guarantee, other than by endorsement of
negotiable instruments for collection in the ordinary course of business, direct
or indirect, in any manner, including, without limitation, letters of credit and
reimbursement agreements in respect thereof, of all or any part of any
Indebtedness.
"Initial Notes" means the first $750,000,000 aggregate
principal amount of 6% Convertible Subordinated Notes due 2006 that are issued
under this Supplemental Indenture, as amended or supplemented from time to time
pursuant to the Indenture.
"Interest Payment Date" means each semiannual interest payment
date on February 15 and August 15 of each year commencing on August 15, 2001.
"Notes" has the meaning assigned to it in the preamble to this
Indenture. The Initial Notes and the Additional Notes shall be treated as a
single class for all purposes under this Indenture.
"Permitted Junior Securities" means: (1) shares of stock of
any class of the Company other than Disqualified Stock; or (2) securities of the
Company other than Disqualified Stock that are subordinated in right of payment
to all Senior Debt that may be outstanding at the time of issuance or delivery
of such securities to substantially the same extent as, or to a greater extent
than, the Notes are so subordinated pursuant to the terms of this Indenture.
"Preferred Stock" means any Capital Stock of a Person, however
designated, which entitles the holder thereof to a preference with respect to
dividends, distributions or liquidation proceeds of such Person over the holders
of other Capital Stock issued by such Person.
"Record Date" means each semiannual record date on February 1
and August 1 of each year commencing on August 1, 2001.
"Restricted Subsidiary" means (a) any Subsidiary of the
Company, whether existing on or after the date of this Indenture, unless such
Subsidiary is an Unrestricted Subsidiary or shall have been classified as an
Unrestricted Subsidiary by a resolution adopted by the Board of Directors of the
Company and (b) an Unrestricted Subsidiary which is reclassified as a Restricted
Subsidiary by a resolution adopted by the Board of Directors of the Company,
provided that on and after the date of such reclassification such Unrestricted
Subsidiary shall not incur Indebtedness other than that permitted to be incurred
by a Restricted Subsidiary under the provisions of this Indenture.
"Rigas Family" means collectively Xxxx X. Xxxxx and members of
his immediate family, any of their respective spouses, estates, lineal
descendants, heirs, executors, personal representatives, administrators, trusts
for any of their benefit and charitable foundations to which shares of the
Company's Capital Stock beneficially owned by any of the foregoing have been
transferred.
"SEC" means the United States Securities and Exchange
Commission as constituted from time to time or any successor performing
substantially the same functions.
"Securities Act" means the Securities Act of 1933, as amended.
"Senior Debt" means the principal of, premium, if any,
interest, including all interest accruing subsequent to the commencement of any
bankruptcy or similar proceeding, whether or not a claim for post-petition
interest is allowable as a claim in any such proceeding, and rent payable on or
in connection with, and all fees, costs, expenses and other amounts accrued or
due on or in connection with, Indebtedness of the Company, whether outstanding
on the date of this Indenture or hereafter created, incurred, assumed,
guaranteed or in effect guaranteed by the Company.
Notwithstanding anything to the contrary in the foregoing,
Senior Debt shall not include:
(1) Indebtedness of or amounts owed by the Company for
compensation to employees, or for goods or materials purchased or for services
obtained in the ordinary course of business;
(2) the Company's Indebtedness to any of the Company's
subsidiaries; or
(3) the Company's Indebtedness that expressly provides that it
shall not be senior in right of payment to the Notes or expressly provides that
it is on the same basis or junior to the Notes.
"Subsidiary" of any specified Person means any corporation,
partnership, joint venture, association or other business entity, whether now
existing or hereafter organized or acquired, (i) in the case of a corporation,
of which more than 50% of the total voting power of the Capital Stock entitled
(without regard to the occurrence of any contingency) to vote in the election of
directors, officers or trustees thereof is held by such first-named Person or
any of its Subsidiaries; or (ii) in the case of a partnership, joint venture,
association or other business entity, with respect to which such Person or any
of its Subsidiaries has the power to direct or cause the direction of the
management and policies of such entity by contract or otherwise if in accordance
with GAAP such entity is consolidated with the first-named Person for financial
statement purposes.
"Termination of Listing" means that the Class A Common Stock
(or other Capital Stock into which the Notes are then convertible) is neither
listed for trading on a United States national securities exchange nor quoted on
the Nasdaq National Market.
"Unrestricted Subsidiary" means (a) any Subsidiary of an
Unrestricted Subsidiary, (b) any Subsidiary of the Company which is classified
after the date of this Indenture as an Unrestricted Subsidiary by a resolution
adopted by the Board of Directors of the Company and (c) any subsidiary which as
of the date of the Indenture has been declared an Unrestricted Subsidiary by a
resolution adopted by the Board of Directors of the Company (such Unrestricted
Subsidiaries including, without limitation, Adelphia Business Solutions, Inc.,
Global Cablevision, Inc., Orchard Park Cablevision, Inc., Global Acquisition
Partners, L.P. and FrontierVision Partners, L.P. on the date hereof); provided
that the Trustee shall be given prompt notice by the Company of each resolution
adopted by its Board of Directors under this provision, together with a copy of
each such resolution adopted.
(b) Other Definitions.
The definitions of the following terms may be found in the
sections indicated as follows:
Term Defined in Section
"Company".............................................................Preamble
"Conversion Date".....................................................2.3(b)
"Conversion Price"....................................................2.3(a)
"Conversion Shares"...................................................2.3(f)(3)
"Distribution Date"...................................................2.3(f)(3)
"Distribution Record Date"............................................2.3(f)(4)
"DTC".................................................................2.5
"Event of Default"....................................................2.8
"Fundamental Change Offer"............................................2.7
"Fundamental Change Payment Date".....................................2.7
"Fundamental Change Purchase Price"...................................2.7
"Indenture"...........................................................Preamble
"Non-Payment Default".................................................2.12
"Payment Blockage Notice".............................................2.12
"Payment Blockage Period".............................................2.12
"Payment Default".....................................................2.12
"Purchase Date".......................................................2.3(f)(5)
"Reclassification"....................................................2.13
"Rights"..............................................................2.3(f)(3)
"Supplemental Indenture"..............................................Preamble
"Trustee".............................................................Preamble
ARTICLE 2
FORM AND TERMS OF THE NOTES
S 2.1. Form and Dating.
The Notes and the Trustee's certificate of authentication
shall be substantially in the form of Exhibit A attached hereto. The Notes may
have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note shall be dated the date of its authentication. The Notes shall
be in denominations of $1,000 and integral multiples thereof.
The terms and provisions contained in the Notes shall
constitute, and are hereby expressly made, a part of this Indenture and the
Company and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby.
(a) Global Notes. Notes shall be issued initially in the form
of the Global Notes, which shall be deposited on behalf of the purchasers of the
Notes represented thereby with the U.S. Depository at its New York office, and
registered in the name of the U.S. Depository or a nominee of the U.S.
Depository, duly executed by the Company and authenticated by the Trustee as
hereinafter provided. The aggregate principal amount of the Global Notes may
from time to time be increased or decreased by adjustments made on the records
of the Trustee and the U.S. Depository or its nominee as hereinafter provided.
The Global Notes shall represent such of the outstanding Notes
as shall be specified therein and shall provide that it shall represent the
aggregate amount of outstanding Notes from time to time endorsed thereon and
that the aggregate amount of outstanding Notes represented thereby may from time
to time be reduced or increased, as appropriate, to reflect exchanges and
redemptions. Any endorsement of the Global Notes to reflect the amount of any
increase or decrease in the amount of outstanding Notes represented thereby
shall be made by the Trustee or the Note Custodian (as hereinafter defined), at
the direction of the Trustee, in accordance with instructions given by the
Holder thereof as required by Section 2.6 hereof.
Except as set forth in Section 2.6 hereof, the Global Notes
may be transferred, in whole and not in part, only to another nominee of the
U.S. Depository or to a successor of the U.S. Depository or its nominee.
(b) Book-Entry Provisions. This Section 2.1(b) shall
apply only to the Global Notes deposited with or on behalf of the U.S.
Depository.
The Company shall execute and the Trustee shall, in accordance
with this Section 2.1(b), authenticate and deliver the Global Notes that (i)
shall be registered in the name of the U.S. Depository or the nominee of the
U.S. Depository and (ii) shall be delivered by the Trustee to the U.S.
Depository or pursuant to the U.S. Depository's instructions or held by the Note
Custodian.
Agent Members shall have no rights either under this Indenture
with respect to any Global Notes held on their behalf by the U.S. Depository or
by the Note Custodian or under such Global Notes, and the U.S. Depository may be
treated by the Company, the Trustee and any agent of the Company or the Trustee
as the absolute owner of such Global Notes for all purposes whatsoever.
(c) Definitive Notes. Notes issued in certificated form shall
be substantially in the form of Exhibit A attached hereto (but without including
the text referred to in Section 2.7 of the Indenture). Except as provided in
Section 2.6, owners of beneficial interests in the Global Notes will not be
entitled to receive physical delivery of certificated Securities.
S 2.2. Execution and Authentication.
The Trustee shall, upon a written order of the Company signed
by an Officer, authenticate up to $750,000,000 aggregate principal amount of
Initial Notes and up to $112,500,000 aggregate principal amount of Additional
Notes. The aggregate principal amount of Notes outstanding at any time may not
exceed such amounts except as provided in Section 3.6 of the Indenture.
S 2.3. Conversion.
(a) Conversion Privilege.
A Holder of a Note may convert it into fully paid and
nonassessable shares of Class A Common Stock at any time after the date of
original issuance of the Note and before the close of business on the Business
Day immediately preceding the maturity date at the Conversion Price then in
effect, except that, with respect to any Note called for redemption, such
conversion right shall terminate at the close of business on the Business Day
immediately preceding the redemption date (unless the Company shall default in
making the redemption payment when it becomes due, in which case the conversion
right shall terminate on the date such default is cured). The number of shares
of Class A Common Stock issuable upon conversion of a Note is determined by
dividing the principal amount of such Note by the conversion price in effect on
the Conversion Date (the "Conversion Price").
The initial Conversion Price is stated in Section 10 of the
Notes and is subject to adjustment as provided in this Section 2.3.
A Holder may convert a portion of a Note equal to any integral
multiple of $1,000. Provisions of this Supplemental Indenture that apply to
conversion of all of a Note also apply to conversion of a portion of it.
(b) Conversion Procedure.
To convert a Note, a Holder must satisfy the requirements in
Section 10 of the Notes. The date on which the Holder satisfies all of those
requirements is the conversion date (the "Conversion Date"). As soon as
practicable after the Conversion Date, the Company shall deliver to the Holder
through the Conversion Agent a certificate for the number of whole shares of
Class A Common Stock issuable upon the conversion and a check for any fractional
share determined pursuant to Section 2.3(c) hereof. The Person in whose name the
certificate is registered shall become the stockholder of record on the
Conversion Date and, as of such date, such Person's rights as a Holder shall
cease; provided, however, that no surrender of a Note on any date when the stock
transfer books of the Company shall be closed shall be effective to constitute
the Person entitled to receive the shares of Class A Common Stock upon such
conversion as the stockholder of record of such shares of Class A Common Stock
on such date, but such surrender shall be effective to constitute the Person
entitled to receive such shares of Class A Common Stock as the stockholder of
record thereof for all purposes at the close of business on the next succeeding
day on which such stock transfer books are open; provided further, however, that
such conversion shall be at the Conversion Price in effect on the date that such
Note shall have been surrendered for conversion, as if the stock transfer books
of the Company had not been closed.
No payment or other adjustment for accrued interest on the
Notes or dividends on any Class A Common Stock issued upon conversion of the
Notes will be made. If any Notes are converted during any period after any
Record Date for the payment of an installment of interest but before the next
Interest Payment Date, interest for such notes will be paid on the next Interest
Payment Date, notwithstanding such conversion, to the Holders of such Notes. Any
Notes that are, however, delivered to the Company for conversion after any
Record Date but before the next Interest Payment Date must, except as described
in the next sentence, be accompanied by a payment equal to the interest payable
on such Interest Payment Date on the principal amount of convertible notes being
converted. The payment to the Company described in the preceding sentence shall
not be required if, during that period between a Record Date and the next
Interest Payment Date, a conversion occurs on or after the date that the Company
has issued a redemption notice and prior to the date of redemption stated in
such notice. No fractional shares will be issued upon conversion, but a cash
adjustment will be made for any fractional shares.
If a Holder converts more than one Note at the same time, the
number of whole shares of Class A Common Stock issuable upon the conversion
shall be based on the total principal amount of Notes converted.
Upon surrender of a Note that is converted in part, the
Trustee shall authenticate for the Holder a new Note equal in principal amount
to the unconverted portion of the Note surrendered.
(c) Fractional Shares.
The Company shall not issue fractional shares of Class A
Common Stock upon conversion of a Note. In lieu thereof, the Company will pay an
amount in cash based upon the Daily Market Price of the Class A Common Stock on
the trading day prior to the date of conversion.
(d) Taxes on Conversion.
The issuance of certificates for shares of Class A Common
Stock upon the conversion of any Note shall be made without charge to the
converting Holder for such certificates or for any tax in respect of the
issuance of such certificates, and such certificates shall be issued in the
respective names of, or in such names as may be directed by, the Holder or
Holders of the converted Note; provided, however, that in the event that
certificates for shares of Class A Common Stock are to be issued in a name other
than the name of the Holder of the Note converted, such Note, when surrendered
for conversion, shall be accompanied by an instrument of transfer, in form
satisfactory to the Company, duly executed by the registered holder thereof or
his duly authorized attorney; and provided further, however, that the Company
shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any such certificates in a
name other than that of the Holder of the converted Note, and the Company shall
not be required to issue or deliver such certificates unless or until the Person
or Persons requesting the issuance thereof shall have paid to the Company the
amount of such tax or shall have established to the satisfaction of the Company
that such tax has been paid or is not applicable.
(e) Company to Provide Stock.
The Company shall at all times reserve and keep available,
free from preemptive rights, out of its authorized but unissued Class A Common
Stock, solely for the purpose of issuance upon conversion of Notes as herein
provided, a sufficient number of shares of Class A Common Stock to permit the
conversion of all outstanding Notes for shares of Class A Common Stock. All
shares of Class A Common Stock which may be issued upon conversion of the Notes
shall be duly authorized, validly issued, fully paid and nonassessable when so
issued.
(f) Adjustment of Conversion Price.
The Conversion Price shall be subject to adjustment from time
to time as follows:
(1) In case the Company shall (1) pay a dividend in
shares of Class A Common Stock to holders of Class A Common
Stock, (2) make a distribution in shares of Class A Common
Stock to holders of Class A Common Stock, (3) subdivide its
outstanding shares of Class A Common Stock into a greater
number of shares of Class A Common Stock or (4) combine its
outstanding shares of Class A Common Stock into a smaller
number of shares of Class A Common Stock, the Conversion Price
in effect immediately prior to such action shall be adjusted
so that the Holder of any Note thereafter surrendered for
conversion shall be entitled to receive the number of shares
of Class A Common Stock which he would have owned immediately
following such action had such Notes been converted
immediately prior thereto. Any adjustment made pursuant to
this subsection (1) shall become effective immediately after
the Record Date in the case of a dividend or distribution and
shall become effective immediately after the effective date in
the case of a subdivision or combination.
(2) In case the Company shall issue rights or
warrants to substantially all holders of Class A Common Stock
entitling them (for a period commencing no earlier than the
Record Date for the determination of holders of Class A Common
Stock entitled to receive such rights or warrants and expiring
not more than 45 days after such Record Date) to subscribe for
or purchase shares of Class A Common Stock (or securities
convertible into Class A Common Stock) at a price per share
less than the current market price (as determined pursuant to
subsection (6) below) of the Class A Common Stock on such
Record Date, the Conversion Price shall be adjusted so that
the same shall equal the price determined by multiplying the
Conversion Price in effect immediately prior to such Record
Date by a fraction of which the numerator shall be the number
of shares of Class A Common Stock outstanding on such Record
Date, plus the number of shares of Class A Common Stock which
the aggregate offering price of the offered shares of Class A
Common Stock (or the aggregate conversion price of the
convertible securities so offered) would purchase at such
current market price, and of which the denominator shall be
the number of shares of Class A Common Stock outstanding on
such Record Date plus the number of additional shares of Class
A Common Stock offered (or into which the convertible
securities so offered are convertible). Such adjustments shall
become effective immediately after such Record Date.
(3) In case the Company shall distribute to all
holders of Class A Common Stock shares of capital stock of the
Company other than Class A Common Stock, evidences of
indebtedness or other assets (other than cash dividends), or
shall distribute to substantially all holders of Class A
Common Stock rights or warrants to subscribe for securities
(other than those referred to in subsection (2) above), then
in each such case the Conversion Price shall be adjusted so
that the same shall equal the price determined by multiplying
the Conversion Price in effect immediately prior to the date
of such distribution by a fraction of which the numerator
shall be the current market price (determined as provided in
subsection (6) below) of the Class A Common Stock on the
Record Date mentioned below less the then fair market value
(as determined by the Board of Directors, whose determination
shall be conclusive evidence of such fair market value and
described in a resolution of the Board of Directors) of the
portion of the assets so distributed or of such subscription
rights or warrants applicable to one share of Class A Common
Stock, and of which the denominator shall be such current
market price of the Class A Common Stock. Such adjustment
shall become effective immediately after the Record Date for
the determination of the holders of Class A Common Stock
entitled to receive such distribution. Notwithstanding the
foregoing, in the event that the Company shall distribute
rights or warrants (other than those referred to in subsection
(2) above) ("Rights") pro rata to holders of Class A Common
Stock, the Company may, in lieu of making any adjustment
pursuant to this Section 2.3(f), make proper provision so that
each Holder of a Note who converts such Note (or any portion
thereof) after the Record Date for such distribution and prior
to the expiration or redemption of the Rights shall be
entitled to receive upon such conversion, in addition to the
shares of Class A Common Stock issuable upon such conversion
(the "Conversion Shares"), a number of Rights to be determined
as follows: (i) if such conversion occurs on or prior to the
date for the distribution to the holders of Rights of separate
certificates evidencing such Rights (the "Distribution Date"),
the same number of Rights to which a holder of a number of
shares of Class A Common Stock equal to the number of
Conversion Shares is entitled at the time of such conversion
in accordance with the terms and provisions of and applicable
to the Rights; and (ii) if such conversion occurs after the
Distribution Date, the same number of Rights to which a holder
of the number of shares of Class A Common Stock into which the
principal amount of the Note so converted was convertible
immediately prior to the Distribution Date would have been
entitled on the Distribution Date in accordance with the terms
and provisions of and applicable to the Rights.
(4) In case the Company shall, by dividend or
otherwise, at any time distribute to all holders of its Class
A Common Stock cash (including any distributions of cash out
of current or retained earnings of the Company but excluding
any cash that is distributed as part of a distribution
requiring a Conversion Price adjustment pursuant to paragraph
(3) of this Section 2.3) in an aggregate amount that, together
with the sum of (x) the aggregate amount of any other
distributions to all holders of its Class A Common Stock made
in cash plus (y) all Excess Payments, in each case made within
the 12 months preceding the date fixed for determining the
stockholders entitled to such distribution (the "Distribution
Record Date") and in respect of which no Conversion Price
adjustment pursuant to paragraphs (3) or (5) of this Section
2.3 or this paragraph (4) has been made, exceeds 10% of the
product of the current market price per share (determined as
provided in paragraph (6) of this Section 2.3) of the Class A
Common Stock on the Distribution Record Date times the number
of shares of Class A Common Stock outstanding on the
Distribution Record Date (excluding shares held in the
treasury of the Company), the Conversion Price shall be
reduced so that the same shall equal the price determined by
multiplying such Conversion Price in effect immediately prior
to the effectiveness of the Conversion Price reduction
contemplated by this paragraph (4) by a fraction of which the
numerator shall be the current market price per share
(determined as provided in paragraph (6) of this Section 2.3)
of the Class A Common Stock on the Distribution Record Date
less the amount of such cash and other consideration
(including any Excess Payments) so distributed applicable to
one share (based on the pro rata portion of the aggregate
amount of such cash and other consideration (including any
Excess Payments), divided by the shares of Class A Common
Stock outstanding on the Distribution Record Date) of Class A
Common Stock and the denominator shall be such current market
price per share (determined as provided in paragraph (6) of
this Section 2.3) of the Class A Common Stock on the
Distribution Record Date, such reduction to become effective
immediately prior to the opening of business on the day
following the Distribution Record Date.
(5) In case a tender offer made by the Company or any
Subsidiary for all or any portion of the Class A Common Stock
shall be consummated, if an Excess Payment is made in respect
of such tender offer and the amount of such Excess Payment,
together with the sum of (x) the aggregate amount of all
Excess Payments plus (y) the aggregate amount of all
distributions to all holders of the Class A Common Stock made
in cash (specifically including distributions of cash out of
retained earnings), in each case made within the 12 months
preceding the expiration of such current tender offer, as the
case may be (the "Purchase Date"), and as to which no
adjustment pursuant to paragraph (3) or paragraph (4) of this
Section 2.3 or this paragraph (5) has been made, exceeds 10%
of the product of the current market price per share
(determined as provided in paragraph (6) of this Section 2.3)
of the Class A Common Stock on the Purchase Date times the
number of shares of Class A Common Stock outstanding
(including any tendered shares but excluding any shares held
in the treasury of the Company) on the Purchase Date, the
Conversion Price shall be reduced so that the same shall equal
the price determined by multiplying such Conversion Price in
effect immediately prior to the effectiveness of the
Conversion Price reduction contemplated by this paragraph (5)
by a fraction of which the numerator shall be the current
market price per share (determined as provided in paragraph
(6) of this Section 2.3) of the Class A Common Stock on the
Purchase Date less the amount of such Excess Payments and such
cash distributions, if any, applicable to one share (based on
the pro rata portion of the aggregate amount of such Excess
Payments and such cash distributions, divided by the shares of
Class A Common Stock outstanding on the Purchase Date) of
Class A Common and the denominator shall be such current
market price per share (determined as provided in paragraph
(6) of this Section 2.3) of the Class A Common Stock on the
Purchase Date, such reduction to become effective immediately
prior to the opening of business on the day following the
Purchase Date.
(6) The current market price per share of Class A
Common Stock on any date shall be deemed to be the average of
the Daily Market Prices for the shorter of (i) ten (10)
consecutive Business Days ending on the last full trading day
on the exchange or market referred to in determining such
Daily Market Prices prior to the time of determination or (ii)
the period commencing on the date next succeeding the first
public announcement of the issuance of such rights or such
warrants or such other distribution or such negotiated
transaction through such last full trading day on the exchange
or market referred to in determining such Daily Market Prices
prior to the time of determination.
(7) In any case in which this Section 2.3(f) shall
require that an adjustment be made immediately following a
Record Date, the Company may elect to defer (but only until
five (5) Business Days following the filing by the Company
with the Trustee of the certificate described in Section
2.3(j) hereof) issuing to the Holder of any Note converted
after such Record Date the shares of Class A Common Stock and
other Capital Stock of the Company issuable upon such
conversion over and above the shares of Class A Common Stock
and other Capital Stock of the Company issuable upon such
conversion only on the basis of the Conversion Price prior to
adjustment; and, in lieu of the shares the issuance of which
is so deferred, the Company shall issue or cause its transfer
agents to issue due bills or other appropriate evidence of the
right to receive such shares.
(8) Upon the occurrence of a Change of Control, in
which both (a) the Company's stockholders receive
consideration per share of Class A common stock that is
greater than the Conversion Price, without giving effect to
the adjustment described below, at the effective time of the
Change of Control, and (b) at least 10% of the total
consideration paid to the Company's stockholders consists of
cash, cash equivalents, securities or other assets (other than
publicly traded securities), which are referred to herein as
"non-public consideration." In such circumstances, upon
conversion of the Notes after the Change of Control, in
addition to the Class A Common Stock or other securities
deliverable upon the conversion of the Notes as described in
the other provisions of this Section 2.3, including clauses
(1) through (7) of this Section 2.3(f), the Holder will
receive a number of publicly traded securities of the acquiror
determined through the following calculation:
PV cashflows X (non-public consideration/total consideration)
Acquiror stock price
Where:
PV cashflows = the present
value of the aggregate
interest payments that
would have been payable on
the Notes from the date of
conversion through February
16, 2004, calculated using
a discount rate equal to
the yield to maturity of
U.S. Treasury securities
having a maturity closest
to, but not later than,
February 16, 2004,
Total consideration = the
total value of the
consideration payable to
the Company's stockholders
at the effective time of
the Change of Control, with
the value of any assets or
securities other than cash
or a publicly traded
security being determined
in good faith by the
Company's Board of
Directors based upon an
opinion as to that value
obtained from an
accounting, appraisal or
investment banking firm of
international standing,
Acquiror stock price = the
price per security of the
acquiror's publicly traded
securities delivered in
connection with the Change
of Control transaction at
the effective time of the
Change of Control
provided, however, that if the consideration received by the
Company's stockholders in respect of the Change of Control
consists of at least 75% non-public consideration or if the
acquiror's common stock is not publicly traded, then upon
conversion of the Notes after the Change of Control, in lieu
of issuing additional securities of the acquiror, as set forth
above, the Holder will be entitled to receive an additional
amount in cash calculated as follows:
PV cashflows X (non-public
consideration/total consideration)
(g) No Adjustment.
No adjustment in the Conversion Price shall be required until
cumulative adjustments amount to 1% or more of the Conversion Price as last
adjusted; provided, however, that any adjustments which by reason of this
Section 2.3(g) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this Section
2.3 shall be made to the nearest cent or to the nearest one-hundredth of a
share, as the case may be. No adjustment need be made for rights to purchase
Class A Common Stock pursuant to a Company plan for reinvestment of dividends or
interest. No adjustment need be made for a change in the par value or no par
value of the Class A Common Stock.
(h) Other Adjustments.
(1) In the event that, as a result of an adjustment
made pursuant to Section 2.3(f) hereof, the Holder of any Note
thereafter surrendered for conversion shall become entitled to
receive any shares of Capital Stock of the Company other than
shares of its Class A Common Stock, thereafter the Conversion
Price of such other shares so receivable upon conversion of
any Note shall be subject to adjustment from time to time in a
manner and on terms as nearly equivalent as practicable to the
provisions with respect to Class A Common Stock contained in
this Section 2.3.
(2) In the event that shares of Class A Common Stock
are not delivered after the expiration of any of the rights or
warrants referred to in Section 2.3(f)(2) and Section
2.3(f)(3) hereof, the Conversion Price shall be readjusted to
the Conversion Price which would otherwise be in effect had
the adjustment made upon the issuance of such rights or
warrants been made on the basis of delivery of only the number
of shares of Class A Common Stock actually delivered.
(i) Adjustments for Tax or Other Purposes.
The Company may make such reductions in the Conversion Price,
in addition to those required by Section 2.3(f) hereof, as it determines to be
advisable in order that any stock dividend, subdivision of shares, distribution
or rights to purchase stock or securities or distribution of securities
convertible into or exchangeable for stock made by the Company to its
stockholders will not be taxable to the recipients thereof.
The Company may decrease the Conversion Price for any period
of at least 20 days, upon at least 15 days notice, if the Company's Board of
Directors determines that such decrease would be in the Company's best interest.
The Board of Directors' determination in this regard shall be conclusive. The
Company shall give Holders at least 15 days notice of such a decrease in the
Conversion Price. Any decrease, however, shall not be taken into account for
such purposes of determining whether the closing price of the Company's Class A
Common Stock exceeds the Conversion Price by 105% in connection with an event
that would otherwise be a Change of Control.
(j) Notice of Adjustment.
Whenever the Conversion Price is adjusted, the Company shall
promptly mail to Holders at the addresses appearing on the Registrar's books a
notice of the adjustment and file with the Trustee an Officers' Certificate
briefly stating the facts requiring the adjustment and the manner of computing
it. The certificate shall be conclusive evidence of the correctness of such
adjustment. Unless and until a Responsible Officer of the Trustee shall receive
written notice of an adjustment of the Conversion Price, the Trustee may assume
without inquiry that the Conversion Price has not been adjusted and that the
last Conversion Price of which it has knowledge remains in effect.
(k) Notice of Certain Transactions.
In the event that:
(1) the Company takes any action which would
require an adjustment in the Conversion
Price;
(2) the Company takes any action that would
require a supplemental indenture pursuant
to Section
2.3(l); or
(3) there is a dissolution or liquidation of the
Company;
the Company shall mail to Holders at the addresses appearing
on the Registrar's books and the Trustee a notice stating the proposed record or
effective date, as the case may be, to permit a Holder of a Note to convert such
Note into shares of Class A Common Stock prior to the Record Date for or the
effective date of the transaction in order to receive the rights, warrants,
securities or assets which a holder of shares of Class A Common Stock on that
date may receive. The Company shall mail the notice at least 15 days before such
date; however, failure to mail such notice or any defect therein shall not
affect the validity of any transaction referred to in clause (1), (2) or (3) of
this Section 2.3(k).
(l) Effect of Reclassifications, Consolidations, Mergers
or Sales on Conversion Privilege.
If any of the following shall occur, namely: (i) any
reclassification or change of outstanding shares of Class A Common Stock
issuable upon conversion of Notes (other than a change in par value, or from par
value to no par value, or from no par value to par value, or as a result of a
subdivision or combination), (ii) any consolidation or merger to which the
Company is a party other than a merger in which the Company is the continuing
corporation and which does not result in any reclassification of, or change
(other than a change in name, or par value, or from par value to no par value,
or from no par value to par value or as a result of a subdivision or
combination) in, outstanding shares of Class A Common Stock or (iii) any sale or
conveyance of all or substantially all of the property or business of the
Company as an entirety, then the Company, or such successor or purchasing
corporation, as the case may be, shall, as a condition precedent to such
reclassification, change, consolidation, merger, sale or conveyance, execute and
deliver to the Trustee a supplemental indenture in form reasonably satisfactory
to the Trustee providing that the Holder of each Note then outstanding shall
have the right to convert such Note into the kind and amount of shares of stock
and other securities and property (including cash) receivable upon such
reclassification, change, consolidation, merger, sale or conveyance by a holder
of the number of shares of Class A Common Stock deliverable upon conversion of
such Note immediately prior to such reclassification, change, consolidation,
merger, sale or conveyance. Such supplemental indenture shall provide for
adjustments of the Conversion Price which shall be as nearly equivalent as may
be practicable to the adjustments of the Conversion Price provided for in this
Section 2.3. The foregoing, however, shall not in any way affect the right a
Holder of a Note may otherwise have, pursuant to clause (ii) of the last
sentence of subsection (3) of Section 2.3(f) hereof, to receive Rights upon
conversion of a Note. If, in the case of any such consolidation, merger, sale or
conveyance, the stock or other securities and property (including cash)
receivable thereupon by a holder of Class A Common Stock includes shares of
stock or other securities and property of a corporation other than the successor
or purchasing corporation, as the case may be, in such consolidation, merger,
sale or conveyance, then such supplemental indenture shall also be executed by
such other corporation and shall contain such additional provisions to protect
the interests of the holders of the Notes as the Board of Directors of the
Company shall reasonably consider necessary by reason of the foregoing. The
provision of this Section 2.3(l) shall similarly apply to successive
consolidations, mergers, sales or conveyances.
In the event the Company shall execute a supplemental
indenture pursuant to this Section 2.3(l), the Company shall promptly file with
the Trustee an Officers' Certificate briefly stating the reasons therefor, the
kind or amount of shares of stock or securities or property (including cash)
receivable by holders of the Notes upon the conversion of their Notes after any
such reclassification, change, consolidation, merger, sale or conveyance and any
adjustment to be made with respect thereto.
(m) Trustee's Disclaimer.
The Trustee has no duty to determine when an adjustment under
this Section 2.3 should be made, how it should be made or what such adjustment
should be, but may accept as conclusive evidence of the correctness of any such
adjustment, and shall be protected in relying upon, the Officers' Certificate
with respect thereto which the Company is obligated to file with the Trustee
pursuant to Section 2.3(j) hereof. The Trustee makes no representation as to the
validity or value of any securities or assets issued upon conversion of Notes,
and the Trustee shall not be responsible for the Company's failure to comply
with any provisions of this Section 2.3.
The Trustee shall not be under any responsibility to determine
the correctness of any provisions contained in any supplemental indenture
executed pursuant to Section 2.3(l), but may accept as conclusive evidence of
the correctness thereof, and shall be protected in relying upon, the Officers'
Certificate with respect thereto which the Company is obligated to file with the
Trustee pursuant to Section 2.3(l) hereof.
S 2.4. Redemption.
With respect to the Notes issued under this Supplemental
Indenture, the following Sections supplement Article 11 of the Indenture:
S 11.8. Optional Redemption.
The Company may redeem all or any portion of the Notes upon
the terms and at the redemption prices set forth in the Notes. Any redemption
pursuant to this Section 11.8 shall be made pursuant to the provisions of
Article 11 hereof.
S 11.8. Mandatory Redemption.
The Company shall not be required to make mandatory redemption
payments or sinking fund payments with respect to the Notes.
S 2.5. U.S. Depository and Paying Agent for Notes.
The Company initially appoints The Depository Trust Company
("DTC") to act as U.S. Depository with respect to the Global Notes.
The Company initially appoints the Trustee to act as the
Security Registrar and Paying Agent with respect to the Global Notes.
S 2.6. Transfer and Exchange of Notes.
(a) Transfer and Exchange of Global Notes. The transfer and
exchange of beneficial interests in the Global Notes shall be effected through
the U.S. Depository, in accordance with this Indenture and the procedures of the
U.S. Depository therefor. Beneficial interests in the Global Notes may be
transferred to Persons who take delivery thereof in the form of a beneficial
interest in the Global Notes.
(b) Transfer and Exchange of Definitive Notes. When
Definitive Notes are presented by a Holder to the Security Registrar with a
request:
(x) to register the transfer of the Definitive
Notes; or
(y) to exchange such Definitive Notes for an
equal principal amount of Definitive Notes
of other authorized denominations, the
Security Registrar shall register the
transfer or make the exchange as requested
if its requirements for such transactions
are met; provided, however, that the
Definitive Notes presented or surrendered
for register of transfer or exchange shall
be duly endorsed or accompanied by a written
instruction of transfer in form satisfactory
to the Security Registrar duly executed by
such Holder or by his attorney, duly
authorized in writing.
(c) Intentionally omitted.
(d) Restrictions on Transfer and Exchange of Global
Notes. Notwithstanding any other provision of this Indenture (other than the
provisions set forth in subsection (f) of this Section 2.6), the Global Notes
may not be transferred as a whole except by the U.S. Depository to a nominee of
the U.S. Depository or by a nominee of the U.S. Depository to the U.S.
Depository or another nominee of the U.S. Depository or by the U.S. Depository
or any such nominee to a successor U.S. Depository or a nominee of such
successor U.S. Depository.
(e) Intentionally omitted.
(f) Authentication of Definitive Notes in Absence of U.S.
Depository. If at any time:
(i) the U.S. Depository for the Notes notifies
the Company that the U.S. Depository is
unwilling or unable to continue as U.S.
Depository for the Global Notes and a
successor U.S. Depository for the Global
Notes is not appointed by the Company within
90 days after delivery of such notice; or
(ii) the Company at its sole discretion, notifies
the Trustee in writing that it elects to
cause the issuance of Definitive Notes under
this Indenture,
then the Company shall execute, and the Trustee shall, upon receipt of an
authentication order in accordance with Section 2.2 hereof, authenticate and
deliver, Definitive Notes in an aggregate principal amount equal to the
principal amount of the Global Notes in exchange for such Global Notes.
(g) Intentionally omitted.
(h) Cancellation and/or Adjustment of the Global Notes. At
such time as all beneficial interests in the Global Notes have been exchanged
for Definitive Notes, redeemed, repurchased or canceled, the Global Notes shall
be returned to or retained and canceled by the Trustee in accordance with
Section 3.9 of the Indenture. At any time prior to such cancellation, if any
beneficial interest in the Global Notes is exchanged for Definitive Notes,
redeemed, repurchased or canceled, the principal amount of Notes represented by
the Global Notes shall be reduced accordingly and an endorsement shall be made
on the Global Notes, by the Trustee or the Note Custodian, at the direction of
the Trustee, to reflect such reduction.
(i) General Provisions Relating to Transfers and Exchanges.
(i) To permit registrations of transfers and
exchanges, the Company shall execute and the
Trustee shall authenticate Definitive Notes
and the Global Notes at the Security
Registrar's request.
(ii) No service charge shall be made to a Holder
for any registration of transfer or
exchange, but the Company may require
payment of a sum sufficient to cover any
transfer tax or similar governmental charge
payable in connection therewith (other than
any such transfer taxes or similar
governmental charge payable upon exchange or
transfer pursuant to Section 2.6 hereto).
(iii) All Definitive Notes and the Global Notes
issued upon any registration of transfer or
exchange of Definitive Notes or the Global
Notes shall be the valid obligations of the
Company, evidencing the same debt, and
entitled to the same benefits under this
Indenture, as the Definitive Notes or the
Global Notes surrendered upon such
registration of transfer or exchange.
(iv) Prior to due presentment for the
registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem
and treat the Person in whose name any Note
is registered as the absolute owner of such
Note for the purpose of receiving payment of
principal of and interest on such Notes, and
neither the Trustee, any Agent nor the
Company shall be affected by notice to the
contrary.
(v) The Trustee shall authenticate Definitive
Notes and the Global Notes in accordance
with the provisions of Section 2.2 of the
Supplemental Indenture and Section 3.3 of
the Indenture.
S 2.7. Change of Control Offer.
Within 10 days of the occurrence of a Fundamental Change the
Company shall notify the Trustee in writing of such occurrence and shall make an
offer to purchase (the "Fundamental Change Offer") the Notes at a purchase price
equal to 100% of the principal amount thereof plus any accrued and unpaid
interest thereon to the Fundamental Change Payment Date (as hereinafter defined)
(the "Fundamental Change Purchase Price") in accordance with the procedures set
forth in this covenant.
Within 10 days of the occurrence of a Fundamental Change the
Company also shall send by first-class mail, postage prepaid, to the Trustee and
to each Holder, at his address appearing in the Security Register, a notice
stating:
(1) that the Fundamental Change Offer is being made
pursuant to this covenant and that all Notes tendered will be
accepted for payment, provided that a Fundamental Change has
occurred and otherwise subject to the terms and conditions set
forth herein;
(2) the Fundamental Change Purchase Price and the
purchase date (which shall be a Business Day no earlier than
30 days from the date such notice is mailed and no later than
30 Business Days after the date of the notice of the
corresponding Fundamental Change) (the "Fundamental Change
Payment Date");
(3) that any Note not tendered will continue to
accrue interest;
(4) that, unless the Company defaults in the payment
of the Fundamental Change Purchase Price, any Notes accepted
for payment pursuant to the Fundamental Change Offer shall
cease to accrue interest after the Fundamental Change Payment
Date;
(5) that Holders accepting the offer to have their
Notes purchased pursuant to a Fundamental Change Offer will be
required to surrender the Notes to the Paying Agent at the
address specified in the notice prior to the close of business
on the Business Day preceding the Fundamental Change Payment
Date;
(6) that Holders will be entitled to withdraw their
acceptance if the Paying Agent receives, not later than the
close of business on the third Business Day preceding the
Fundamental Change Payment Date, a telegram, telex, facsimile
transmission or letter setting forth the name of the Holder,
the principal amount of the Notes delivered for purchase, and
a statement that such Holder is withdrawing his election to
have such Notes purchased;
(7) that Holders whose Notes are being purchased only
in part will be issued new Notes equal in principal amount to
the unpurchased portion of the Notes surrendered, provided
that each Note purchased and each such new Note issued shall
be in an original principal amount in denominations of $1,000
and integral multiples thereof; and
(8) any other procedures that a Holder must follow to
accept a Fundamental Change Offer or effect withdrawal of such
acceptance.
On the Fundamental Change Payment Date, the Company shall (a)
accept for payment Notes or portions thereof tendered pursuant to the
Fundamental Change Offer, (b) deposit with the Paying Agent money sufficient to
pay the purchase price of all Notes or portions thereof so tendered and (c)
deliver or cause to be delivered to the Trustee Notes so accepted together with
an Officers' Certificate stating the Notes or portions thereof tendered to the
Company. The Paying Agent shall promptly mail to each Holder of Notes so
accepted payment in an amount equal to the purchase price for such Notes, and
the Company shall issue and the Trustee shall promptly authenticate and mail to
such Holder a new Note equal in principal amount to any unpurchased portion of
the Notes surrendered; provided that each such new Note shall be issued in an
original principal amount in denominations of $1,000 and integral multiples
thereof.
The Company shall not be required to make a Fundamental Change
Offer following a Fundamental Change if a third party makes the Fundamental
Change Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Indenture applicable to a Fundamental Change
Offer made by the Company and purchases all of the Notes validly tendered and
not withdrawn under such Fundamental Change Offer.
The Company shall also offer to purchase all Notes not
previously called for redemption or repurchase, if at any time, (1) the Rigas
Family or any of its Affiliates purchases, in a transaction or series of
transactions, shares of Class A Common Stock, and solely as a result of such
purchases, the aggregate number of shares of Class A Common Stock held by the
Rigas Family and its Affiliates exceeds 70% of the total number of shares of
Class A Common Stock issued and outstanding at such time and (2) the closing
price per share of the Class A Common Stock for any five (5) trading days within
the period of the ten (10) consecutive trading days immediately after the later
of the last date of such purchase or the public announcement of such purchase is
less than 100% of the Conversion Price of the Notes in effect on each of those
trading days. For purposes of this Indenture such event shall constitute a
Change of Control and the Company shall follow procedures substantially similar
to the procedures for a Fundamental Change Offer as set forth in this Indenture.
The Notes purchased pursuant to this paragraph shall be purchased at a price
equal to 100% of the aggregate principal amount of the Notes to be purchased
together with the interest accrued to, but excluding, the purchase date.
For purposes of the foregoing paragraph, a purchase shall not
include any shares of Class A Common Stock acquired by the Rigas Family or its
Affiliates as a result of the exchange or conversion of shares of the Company's
Class B Common Stock, and the calculation of the number of shares of Class A
Common Stock held by the Rigas Family and its Affiliates shall not include
securities exchangeable or convertible into shares of Class A Common Stock.
There shall be no purchase of any Notes pursuant to this
covenant if there has occurred (prior to, on or after, as the case may be, the
tender of such Notes pursuant to the Fundamental Change Offer, by the Holders of
such Notes) and is continuing an Event of Default. The Paying Agent will
promptly return to the respective holders thereof any Notes (a) the tender of
which has been withdrawn in compliance with this Indenture or (b) held by it
during the continuance of an Event of Default (other than a default in the
payment of the Change of Control Purchase Price with respect to such Notes).
In the event that the Company is required to make (or to
follow procedures substantially similar to) a Fundamental Change Offer, the
Company will comply with all applicable tender offer rules including Rule 14e-1
under the Exchange Act, to the extent applicable.
S 2.8. Events of Default.
With respect to the Notes issued under this Supplemental
Indenture, Section 5.1 of the Indenture is hereby replaced in its entirety as
follows:
An "Event of Default" occurs with respect to the Notes if:
(1) the Company defaults in the payment of any
principal of such series of Notes when the same becomes due
and payable at maturity, upon acceleration or otherwise,
whether or not such payment is prohibited by the provisions of
Article 15 of this Indenture;
(2) the Company defaults in the payment of any
interest on such series of Notes when the same becomes due and
payable and the default continues for a period of 30 days,
whether or not such payment is prohibited by the provisions of
Article 15 of this Indenture;
(3) the Company defaults in the observance or
performance of any other covenant in such series of Notes or
this Indenture for 60 days after written notice from the
Trustee or the Holders of not less than 25% in aggregate
principal amount of such series of Notes (including the
Additional Notes, if any) then outstanding;
(4) the Company fails to pay when due principal,
interest or premium aggregating $10,000,000 or more with
respect to any Indebtedness of the Company or any Restricted
Subsidiary, or the acceleration of any such Indebtedness which
default shall not be cured or waived, or such acceleration
shall not be rescinded or annulled, within ten days after
written notice as provided in this Indenture;
(5) a court of competent jurisdiction enters a final
judgment or judgments for the payment of money in excess of
$10,000,000 against the Company or any Restricted Subsidiary
and such judgment remains undischarged for a period of 60
consecutive days during which a stay of enforcement of such
judgment shall not be in effect;
(6) the Company, or any Restricted Subsidiary with
liabilities of greater than $10,000,000 under GAAP as of the
date of the event described in this clause (6), pursuant to or
within the meaning of any Bankruptcy Law:
(A) commences a voluntary case,
(B) consents to the entry
of an order for relief
against it in an
involuntary case,
(C) consents to the appointment
of a Custodian of it or for
all or substantially all of
its property, or
(D) makes a general assignment
for the benefit of its
creditors;
(7) a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that:
(A) is for relief against the
Company, or any Restricted
Subsidiary with liabilities
of greater than $10,000,000
under GAAP as of the
effective date of such
order or decree, in an
involuntary case,
(B) appoints a Custodian of the
Company, or any Restricted
Subsidiary with liabilities
of greater than $10,000,000
under GAAP as of the
effective date of such
order or decree, or for all
or substantially all of its
property, or
(C) orders the liquidation of
the Company, or any
Restricted Subsidiary with
liabilities of greater than
$10,000,000 under GAAP as
of the effective date of
such order or decree, and
the order or decree remains
unstayed and in effect for
60 days.
A Default under clauses (3) and (4) is not an Event of Default
until the Trustee notifies the Company, or the Holders of at least 25% in
aggregate principal amount of a series of Notes notifies the Company and the
Trustee, of the Default and the Company does not cure the Default within (a) 60
days after receipt of such notice in the case of a Default under clause (3) and
(b) 10 days after receipt of such notice in the case of a Default under clause
(4). The notice must specify the Default, demand that it be remedied and state
that the notice is a "Notice of Default." If the Holders of at least 25% in
principal amount of a series of outstanding Notes request the Trustee to give
such notice on their behalf, the Trustee shall do so.
S 2.9. Acceleration.
With respect to the Notes issued under this Supplemental
Indenture, Section 5.2 of the Indenture is hereby replaced in its entirety as
follows:
If an Event of Default with respect to the Notes (other than
an Event of Default specified in Section 2.8(6) or (7) of this Supplemental
Indenture) occurs and is continuing, the Trustee by notice to the Company, or
the Holders of not less than 25% in aggregate principal amount of the Notes
affected thereby then outstanding may declare to be immediately due and payable,
subject to the provisions of Article 15 of this Indenture, the principal amount
of the Notes then outstanding plus accrued but unpaid interest to the date of
acceleration; provided, however, that after such acceleration but before a
judgment or decree based on such acceleration is obtained by the Trustee, the
Holders of a majority in aggregate principal amount of the outstanding Notes by
written notice to the Trustee and the Company may rescind and annul such
acceleration and its consequences if all existing Events of Default, other than
the nonpayment of accelerated principal or interest, have been cured or waived.
In case an Event of Default specified in Section 2.8(6) or (7) of the
Supplemental Indenture occurs, such amount with respect to all of the Notes
shall be due and payable immediately without any declaration or other act on the
part of the Trustee or the Holders of the Notes.
S 2.10. Mergers and Consolidations.
With respect to the Notes issued under this Supplemental
Indenture, Section 8.1 of the Indenture is replaced in its entirety as follows:
The Company may not consolidate with, merge with or
into, or transfer all or substantially all of its assets (as an
entirety or substantially as an entirety in one transaction or a series
of related transactions), to any Person unless: (i) the Company shall
be the continuing Person, or the Person (if other than the Company)
formed by such consolidation or into which the Company is merged or to
which the properties and assets of the Company are transferred shall be
a corporation organized and existing under the laws of the United
States or any State thereof or the District of Columbia and shall
expressly assume, by a supplemental indenture, executed and delivered
to the Trustee, in form satisfactory to the Trustee, all of the
obligations of the Company under the Notes and this Indenture, and the
obligations under this Indenture shall remain in full force and effect;
and (ii) immediately before and immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be
continuing.
In connection with any consolidation, merger or
transfer contemplated by this Section 8.1, the Company shall deliver,
or cause to be delivered, to the Trustee, in form and substance
reasonably satisfactory to the Trustee, an Officers' Certificate and an
Opinion of Counsel, each stating that such consolidation, merger or
transfer and the supplemental indenture in respect thereto comply with
this Section 8.1 and that all conditions precedent herein provided for
relating to such transaction or transactions have been complied with.
S 2.11. Supplemental Indentures.
With respect to the Notes issued under this Supplemental
Indenture, the following Section supplements Article 9 of the Indenture:
S9.7 Revocation and Effect of Consents.
Until an amendment, supplement, waiver or other
action becomes effective, a consent to it by a Holder of a Note is a
continuing consent conclusive and binding upon such Holder and every
subsequent Holder of the same Note or portion thereof, and of any Note
issued upon the transfer thereof or in exchange therefor or in place
thereof, even if notation of the consent is not made on any such Note.
Any such Holder or subsequent Holder, however, may revoke the consent
as to his Note or portion of a Note, if the Trustee receives the notice
of revocation before the date the amendment, supplement, waiver or
other action becomes effective.
The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to
consent to any amendment, supplement, or waiver. If a record date is
fixed, then, notwithstanding the preceding paragraph, those Persons who
were Holders at such record date (or their duly designated proxies),
and only such 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. No such consent shall be valid or effective for more than 90 days
after such record date unless the consent of the requisite number of
Holders has been obtained.
After an amendment, supplement, waiver or other
action becomes effective, it shall bind every Noteholder, unless it
makes a change described in any of clauses (1) through (4) of Section
9.2 of the Indenture. In that case the amendment, supplement, waiver or
other action shall bind each Holder of a Note who has consented to it
and every subsequent Holder of a Note or portion of a Note that
evidences the same debt as the consenting Holder's Note.
S 2.12. Covenants.
With respect to the Notes issued under this Supplemental Indenture,
(1) references in the Indenture to the following sections are
modified as follows:
Reference in the Indenture to: Refers to:
----------------------------- ---------
Section 10.1 of the Indenture Section 10.1 of the Supplemental Indenture
Section 10.2 of the Indenture Not applicable
Section 10.5 of the Indenture Section 10.7 of the Supplemental Indenture
Section 10.7 of the Indenture Section 10.3 of the Supplemental Indenture
Section 10.8 of the Indenture Section 10.5 of the Supplemental Indenture
and (2) Article 10 of the Indenture is hereby replaced in its entirety as
follows:
ARTICLE 10
COVENANTS
S 10.1...Payment of Notes.
The Company shall pay the principal of and all
interest on the Notes on the dates and in the manner provided in the
Notes and this Indenture. An installment of principal or interest shall
be considered paid on the date it is due if the Trustee or Paying Agent
holds on that date money designated for and sufficient to pay such
installment.
The Company will pay interest on overdue principal
(including post-petition interest in a proceeding under any Bankruptcy
Law) and on overdue interest, to the extent lawful, at the rate borne
by the Notes.
S 10.2...SEC Reports.
The Company shall file with the Trustee, within 15
days after it files with the SEC, copies of the annual reports and of
the other information, documents and reports (or copies of such
portions of any of the foregoing as the SEC may by rules and
regulations prescribe), if any, which the Company is required to file
with the SEC pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934, as amended. The Company shall also comply with the other
provisions of TIA S 314(a).
S 10.3...Waiver of Stay, Extension or Usury Laws.
The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, or plead (as
a defense or otherwise) or in any manner whatsoever claim or take the
benefit or advantage of, any stay or extension law or any usury law or
other law which would prohibit or forgive the Company from paying all
or any portion of the principal of and/or interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter in
force, or which may affect the covenants or the performance of this
Indenture; and (to the extent that it may lawfully do so) the Company
hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.
S 10.4...Reports to Holders.
The Company will send to the Trustee and to
Noteholders, within 15 days after the filing thereof with the SEC,
copies of its annual reports on Form 10-K, its Quarterly Reports on
Form 10-Q and its Current Reports on Form 8-K; provided, however, that
notwithstanding any event which results in the Company being relieved
of its obligation to file information, documents and reports with the
SEC pursuant to Sections 13 or 15(d) of the Exchange Act, the Company
shall nevertheless continue, so long as any Note remains outstanding
and unpaid, to file with the SEC (at such time as it would be required
to file such reports under the Exchange Act), and to send to the
Trustee and Noteholders (within 15 days thereafter), quarterly and
annual reports and information, documents and other reports
substantially equivalent to those it would have been obligated to file
if it had remained subject to such sections of the Exchange Act.
S 10.5...Money for Securities Payments to Be Held in Trust.
If the Company shall at any time act as its own
Paying Agent with respect to any series of Securities, it will, on or
before each due date of the principal of (and premium, if any) or
interest on any of the Securities of that series, segregate and hold in
trust for the benefit of the Persons entitled thereto a sum sufficient
to pay the principal (and premium, if any) or interest so becoming due
until such sums shall be paid to such Persons or otherwise disposed of
as herein provided and will promptly notify the Trustee of its action
or failure so to act.
Whenever the Company shall have one or more Paying
Agents for any series of Securities, it will, prior to each due date of
the principal of (and premium, if any) or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay the
principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the Persons entitled to such
principal, premium or interest, and (unless such Paying Agent is the
Trustee) the Company will promptly notify the Trustee of its action or
failure to so act.
The Company will cause each Paying Agent for any
series of Securities (other than the Trustee) to execute and deliver to
the Trustee an instrument in which such Paying Agent shall agree with
the Trustee, subject to the provisions of this Section, that such
Paying Agent will:
(i) hold all sums held by it for the payment
of the principal of (and premium, if any) or interest
on Securities of that series in trust for the benefit
of the Persons entitled thereto until such sums shall
be paid to such Persons or otherwise disposed of as
herein provided;
(ii) give the Trustee notice of any default
by the Company (or any other obligor upon the
Securities of that series) in the making of any
payment of principal (and premium, if any) or
interest on the Securities of that series; and
(iii) at any time during the continuance of
any such default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent.
The Company may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any
other purpose, pay, or by Company Order direct any Paying Agent to pay,
to the Trustee all sums held in trust by the Company or such Paying
Agent, such sums to be held by the Trustee upon the same trusts as
those upon which such sums were held by the Company or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such
Paying Agent shall be released from all further liability with respect
to such money.
Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the
principal of (and premium, if any) or interest on any security of any
series and remaining unclaimed for two years after such principal (and
premium, if any) or interest has become due and payable shall be paid
to the Company on Company Request, or (if then held by the Company)
shall be discharged from such trust; and the Holder of such security
shall thereafter, as an unsecured general creditor, look only to the
Company for payment thereof, unless an abandoned property law
designates another Person, and all liability of the Trustee or such
Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, shall thereupon cease; provided, however,
that the Trustee of such Paying Agent, before being required to make
any such repayment, may at the expense of the Company cause to be
published once, in a newspaper published in the English language,
customarily published on each Business Day and of general circulation
in New York, New York, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30
days from the date of such publication, any unclaimed balance of such
money then remaining will be repaid to the Company.
S 10.6...Notice of Defaults Or Events of Default.
In the event that any Default or Event of Default
shall occur and be continuing, the Company will, within 10 days of the
occurrence thereof, give written notice of such Default or Event of
Default to the Trustee.
S 10.7...Compliance Certificates.
The Company shall deliver to the Trustee on or before
105 days after the end of its fiscal year and on or before 50 days
after the end of its second fiscal quarter in each year an Officers'
Certificate stating whether or not the signers know of any Default or
Event of Default. If they do know of such a Default or Event of
Default, the certificate shall describe such Default or Event of
Default and the efforts to remedy or obtain a waiver of the same.
S 2.13. Defeasance and Covenant Defeasance.
With respect to the Notes issued under this Supplemental
Indenture, both Section 13.1 and Section 13.2 shall be inapplicable to the
Notes.
S 2.14. Subordination.
With respect to the Notes issued under this Supplemental
Indenture, Article 15 of the Indenture is hereby replaced in its entirety as
follows:
ARTICLE 15
SUBORDINATION
S 15.1 Agreement to Subordinate and Ranking.
The Company, for itself and its successors, and each
Holder, by its acceptance of Notes, agree that the payment of the
principal of or interest on or any other amounts due on the Notes is
subordinated in right of payment, to the extent and in the manner
stated in this Article 15, to the prior payment in full of all existing
and future Senior Debt. The Notes shall rank pari passu with, and shall
not be senior in right of payment to such other Indebtedness of the
Company whether outstanding on the date of this Indenture or hereafter
created, incurred, issued or Guaranteed by the Company, where the
instrument creating or evidencing such Indebtedness expressly provides
that such Indebtedness ranks pari passu with the Notes.
S 15.2 No Payment on Notes if Designated Senior Debt in Default.
Anything in this Indenture to the contrary
notwithstanding, no payment on account of principal of or redemption
of, interest on or other amounts due on the Notes, and no redemption,
purchase, or other acquisition of the Notes, shall be made by or on
behalf of the Company, except payments comprised solely of Permitted
Junior Securities, if (i) a default in the payment of Designated Senior
Debt occurs and is continuing beyond any applicable period of grace (a
"Payment Default"), or (ii) a default other than a Payment Default on
any Designated Senior Debt occurs and is continuing that permits the
holders of Designated Senior Debt to accelerate its maturity, and the
trustee receives notice of such default (a "Payment Blockage Notice")
from the Company or from any holders of Designated Senior Debt or such
Holder's representative (a "Non-Payment Default"), but only for the
period (the "Payment Blockage Period") commencing on the date of
receipt of the Payment Blockage Notice and ending (unless earlier
terminated by notice given to the Trustee by the holders of such
Designated Senior Debt) (a) in the case of a Payment Default, upon the
date on which such Payment Default is cured or waived or ceases to
exist, and (b) in the case of a Non-Payment Default, the earliest of
the date on which such Non-Payment Default is cured or waived or ceases
to exist or 180 days from the date notice is received, if the maturity
of the Designated Senior Debt has not been accelerated. Upon
termination of the Payment Blockage Period, payments on account of
principal of or interest on the Notes (other than, subject to Section
15.3 hereof, amounts due and payable by reason of the acceleration of
the maturity of the Notes) and redemptions, purchases or other
acquisitions shall be made by or on behalf of the Company.
Notwithstanding anything herein to the contrary, (a) only one Payment
Blockage Notice may be given with respect to the same Non-Payment
Default or any other Non-Payment Default on the same issue of
Designated Senior Debt existing or continuing at the time of such
Payment Blockage Notice may be given and (b) no new Payment Blockage
Period may be commenced by the holder or holders of Designated Senior
Debt or their representative or representatives, unless 360 consecutive
days have elapsed since the initial effectiveness of the immediately
preceding Payment Blockage Notice.
In the event that, notwithstanding the provisions of
this Section 15.2, payments are made by or on behalf of the Company in
contravention of the provisions of this Section 15.2, such payments
shall be held by the Trustee, any Paying Agent or the holders, as
applicable, in trust for the benefit of, and shall be paid over to and
delivered to, the holders of Senior Debt or their representative or the
trustee under the indenture or other agreement (if any), pursuant to
which any instruments evidencing any Senior Debt may have been issued
for application to the payment of all Senior Debt ratably according to
the aggregate amounts remaining unpaid to the extent necessary to pay
all Senior Debt in full in accordance with the terms of such Senior
Debt, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Debt.
The Company shall give prompt written notice to the
Trustee and any Paying Agent of any default or event of default under
any Senior Debt or under any agreement pursuant to which any Senior
Debt may have been issued.
S 15.3 Distribution on Acceleration of Notes; Dissolution and
Reorganization; Subrogation of Notes.
(a) If the Notes are declared due and payable because
of the occurrence of an Event of Default, the Company or the Trustee
shall give prompt written notice to the holders of all Senior Debt or
to the trustee(s) for such Senior Debt of such acceleration.
(b) Upon (i) any acceleration of the principal amount
due on the Notes because of an Event of Default or (ii) any
distribution of assets of the Company upon any dissolution, winding up,
liquidation or reorganization of the Company (whether in bankruptcy,
insolvency or receivership proceedings or upon an assignment for the
benefit of creditors or any other dissolution, winding up, liquidation
or reorganization of the Company):
(1) the holders of all Senior Debt shall first be
entitled to receive payment in full of the principal thereof,
the interest thereon and any other amounts due thereon before
the Holders are entitled to receive payment on account of the
principal of or interest on or any other amounts due on the
Notes, except payments comprised solely of Permitted Junior
Securities;
(2) any payment or distribution of assets of the
Company of any kind or character, whether in cash, property or
securities (other than Permitted Junior Securities), to which
the holders or the Trustee would be entitled except for the
provisions of this Article 15, shall be paid by the
liquidating trustee or agent or other Person making such a
payment or distribution, directly to the holders of Senior
Debt (or their representatives(s) or trustee(s) acting on
their behalf), ratably according to the aggregate amounts
remaining unpaid on account of the principal of or interest on
and other amounts due on the Senior Debt held or represented
by each, to the extent necessary to make payment in full of
all Senior Debt remaining unpaid, after giving effect to any
concurrent payment or distribution to the holders of such
Senior Debt; and
(3) in the event that, notwithstanding the foregoing,
any payment or distribution of assets of the Company of any
kind or character, whether in cash, property or securities
(other than payments comprised solely of Permitted Junior
Securities), shall be received by the Trustee or the holders
before all Senior Debt is paid in full, such payment or
distribution shall be held in trust for the benefit of, and be
paid over to upon request by a holder of the Senior Debt, the
holders of the Senior Debt remaining unpaid (or their
representatives) or trustee(s) acting on their behalf, ratably
as aforesaid, for application to the payment of such Senior
Debt until all such Senior Debt shall have been paid in full,
after giving effect to any concurrent payment or distribution
to the holders of such Senior Debt.
Subject to the payment in full of all Senior Debt,
the Holders shall be subrogated to the rights of the holders of Senior
Debt to receive payments or distributions of cash, property or
securities of the Company applicable to the Senior Debt until the
principal of and interest on the Notes shall be paid in full and, for
purposes of such subrogation, no such payments or distributions to the
holders of Senior Debt of cash, property or securities which otherwise
would have been payable or distributable to Holders shall, as between
the Company, its creditors other than the holders of Senior Debt, and
the Holders, be deemed to be a payment by the Company to or on account
of the Senior Debt, it being understood that the provisions of this
Article 15 are and are intended solely for the purpose of defining the
relative rights of the Holders, on the one hand, and the holders of
Senior Debt, on the other hand.
Nothing contained in this Article 15 or elsewhere in
this Indenture or in the Notes is intended to or shall (i) impair, as
between the Company and its creditors other than the holders of Senior
Debt, the obligation of the Company, which is absolute and
unconditional, to pay to the Holders the principal of and interest on
the Notes as and when the same shall become due and payable in
accordance with the terms of the Notes or is intended to or (ii) affect
the relative rights of the Holders and creditors of the Company other
than holders of Senior Debt or, as between the Company and the Trustee,
the obligations of the Company to the Trustee, or (iii) prevent the
Trustee or the Holders from exercising all remedies otherwise permitted
by applicable law upon default under this Indenture, subject to the
rights, if any, under this Article 15 of the holders of Senior Debt in
respect of cash, property and securities of the Company received upon
the exercise of any such remedy.
Upon distribution of assets of the Company referred
to in this Article 15, the Trustee, subject to the provisions of
Sections 6.1 and 6.2 of this Indenture, and the Holders shall be
entitled to rely upon a certificate of the liquidating trustee or agent
or other Person making any distribution to the Trustee or to the
Holders for the purpose of ascertaining the Persons entitled to
participate in such distribution, the holders of the Senior Debt and
other indebtedness of the Company, the amount thereof or payable
thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article 15. The Trustee,
however, shall not be deemed to owe any fiduciary duty to the holders
of Senior Debt. Nothing contained in this Article 15 or elsewhere in
this Indenture, or in any of the Notes, shall prevent the good faith
application by the Trustee of any moneys which were deposited with it
hereunder, prior to its receipt of written notice of facts which would
prohibit such application, for the purpose of the payment of or on
account of the principal of or interest on, the Notes unless, prior to
the date on which such application is made by the Trustee, the Trustee
shall be charged with notice under Section 15.3(d) hereof of the facts
which would prohibit the making of such application.
(c) The provisions of this Article 15 shall not be
applicable to any cash, properties or securities received by the
Trustee or by any Holder when received as a holder of Senior Debt and
nothing in Section 6.13 hereof or elsewhere in this Indenture shall
deprive the Trustee or such Holder of any of its rights as such holder.
(d) The Company shall give prompt written notice to
the Trustee of any fact known to the Company which would prohibit the
making of any payment of money to or by the Trustee in respect of the
Notes pursuant to the provisions of this Article 15. The Trustee,
subject to the provisions of Sections 6.1 and 6.2 hereof, shall be
entitled to assume that no such fact exists unless the Company or any
holder of Senior Debt or any trustee therefor has given such notice to
the Trustee. Notwithstanding the provisions of this Article 15 or any
other provisions of this Indenture, the Trustee shall not be charged
with knowledge of the existence of any fact which would prohibit the
making of any payment of monies to or by the Trustee in respect of the
Notes pursuant to the provisions in this Article 15, unless, and until
three Business Days after, the Trustee shall have received written
notice thereof from the Company or any Holder or holders of Senior Debt
or from any trustee therefor; and, prior to the receipt of any such
written notice, the Trustee, subject to the provisions of Sections 6.1
and 6.2 hereof, shall be entitled in all respects conclusively to
assume that no such facts exist; provided that if on a date not less
than three Business Days immediately preceding the date upon which by
the terms hereof any such monies may become payable for any purpose
(including, without limitation, the principal of or interest on any
Note), the Trustee shall not have received with respect to such monies
the notice provided for in this Section 15.3(d), than anything herein
contained to the contrary notwithstanding, the Trustee shall have full
power and authority to receive such monies and to apply the same to the
purpose for which they were received, and shall not be affected by any
notice to the contrary which may be received by it on or after such
prior date.
The Trustee shall be entitled to rely on the delivery
to it of a written notice by a Person representing himself to be a
holder of Senior Debt (or a trustee on behalf of such holder) to
establish that such notice has been given by a holder of Senior Debt
(or a trustee on behalf of any such holder or holders). In the event
that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as a holder of Senior
Debt to participate in any payment or distribution pursuant to this
Article 15, the Trustee may request such Person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of Senior
Debt held by such Person, the extent to which such Person is entitled
to participate in such payment or distribution and any other facts
pertinent to the rights of such Person under this Article 15, and, if
such evidence is not furnished, the Trustee may defer any payment to
such Person pending judicial determination as to the right of such
Person to receive such payment; nor shall the Trustee be charged with
knowledge of the curing or waiving of any default of the character
specified in Section 15.2 hereof or that any event or any condition
preventing any payment in respect of the Notes shall have ceased to
exist, unless and until the Trustee shall have received an Officers'
Certificate to such effect.
(e) The provisions of this Section 15.3
applicable to the Trustee shall also apply to any Paying Agent
for the Company.
S 15.4 Reliance by Senior Debt on Subordination Provisions.
Each Holder of any Note by his acceptance thereof
acknowledges and agrees that the foregoing subordination provisions
are, and are intended to be, an inducement and a consideration for each
holder of any Senior Debt, whether such Senior Debt was created or
acquired before or after the issuance of the Notes, to acquire and
continue to hold, or to continue to hold, such Senior Debt, and such
holder of Senior Debt shall be deemed conclusively to have relied on
such subordination provisions in acquiring and continuing to hold, or
in continuing to hold, such Senior Debt. Notice of any default in the
payment of any Senior Debt, except as expressly stated in this Article
15, and notice of acceptance of the provisions hereof are hereby
expressly waived. Except as otherwise expressly provided herein, no
waiver, forbearance or release by any holder of Senior Debt under such
Senior Debt or under this Article 15 shall constitute a release of any
of the obligations or liabilities of the Trustee or Holders of the
Notes provided in this Article 15.
S 15.5 No Waiver of Subordination Provisions.
Except as otherwise expressly provided herein, no
right of any present or future holder of any Senior Debt to enforce
subordination as herein provided shall at any time in any way be
prejudiced or impaired by any act or failure to act on the part of the
Company or by any act or failure to act, in good faith, by any such
holder, or by any noncompliance by the Company with the terms,
provisions and covenants of this Indenture, regardless of any knowledge
thereof any such holder may have or be otherwise charged with.
Without in any way limiting the generality of the
foregoing paragraph, the holders of Senior Debt may, at any time and
from time to time, without the consent of, or notice to, the Trustee or
the Holders of the Notes, without incurring responsibility to the
Holders of the Notes and without impairing or releasing the
subordination provided in this Article 15 or the obligations hereunder
of the Holders of the Notes to the holders of Senior Debt, do any one
or more of the following: (i) change the manner, place or terms of
payment of, or renew or alter, Senior Debt, or otherwise amend or
supplement in any manner Senior Debt or any instrument evidencing the
same or any agreement under which Senior Debt is outstanding; (ii)
sell, exchange, release or otherwise dispose of any property pledged,
mortgaged or otherwise securing Senior Debt; (iii) release any Person
liable in any manner for the collection of Senior Debt; and (iv)
exercise or refrain from exercising any rights against the Company or
any other Person.
S 15.6 Trustee's Relation to Senior Debt.
The Trustee in its individual capacity shall be
entitled to all the rights set forth in this Article 15 in respect of
any Senior Debt at any time held by it, to the same extent as any
holder of Senior Debt, and nothing in Section 6.13 hereof or elsewhere
in this Indenture shall deprive the Trustee of any of its rights as
such holder.
With respect to the holders of Senior Debt, the
Trustee undertakes to perform or to observe only such of its covenants
and obligation, as are specifically set forth in this Article 15, and
no implied covenants or obligations with respect to the holders of
Senior Debt shall be read into this Indenture against the Trustee. The
Trustee shall not owe any fiduciary duty to the holders of Senior Debt
but shall have only such obligations to such holders as are expressly
set forth in this Article 15.
Each Holder of a Note by his acceptance thereof
authorizes and directs the Trustee on his behalf to take such action as
may be necessary or appropriate to effectuate the subordination
provided in this Article 15 and appoints the Trustee his
attorney-in-fact for any and all such purposes, including, in the event
of any dissolution, winding up or liquidation or reorganization under
any applicable bankruptcy law of the Company (whether in bankruptcy,
insolvency or receivership proceedings or otherwise), the timely filing
of a claim for the unpaid balance of such Holder's Notes in the form
required in such proceedings and the causing of such claim to be
approved. If the Trustee does not file a claim or proof of debt in the
form required in such proceedings prior to 30 days before the
expiration of the time to file such claims or proofs, then any Holder
or holders of Senior Debt or their representative or representatives
shall have the right to demand, xxx for, collect, receive and receipt
for the payments and distributions in respect of the Notes which are
required to be paid or delivered to the holders of Senior Debt as
provided in this Article 15 and to file and prove all claims therefore
and to take all such other action in the name of the holders or
otherwise, as such holders of Senior Debt or representative thereof may
determine to be necessary or appropriate for the enforcement of the
provisions of this Article 15.
S 15.7 Other Provisions Subject Hereto.
Expect as expressly stated in this Article 15,
notwithstanding anything contained in this Indenture to the contrary,
all the provisions of this Indenture and the Notes are subject to the
provisions of this Article 15. However, nothing in this Article 15
shall apply to or adversely affect the claims of, or payment, to, the
Trustee pursuant to Section 6.7 hereof. Notwithstanding the foregoing,
the failure to make a payment on account of principal of or interest on
the Notes by reason of any provision of this Article 15 shall not be
construed as preventing the occurrence of an Event of Default under
Section 5.1 hereof.
ARTICLE 3
MISCELLANEOUS
S 3.1. Effect of Headings.
The Article and Section headings herein are for convenience
only and shall not affect the construction hereof.
S 3.2. Successors and Assigns.
All covenants and agreements in this Supplemental Indenture by
the Company shall bind its successors and assigns, whether so expressed or not.
S 3.3. Separability Clause.
In case any provision in this Supplemental Indenture or in the
Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.
S 3.4. Governing Law.
This Supplemental Indenture and the Notes created hereby shall
be governed by and construed in accordance with the laws of the State of New
York without giving effect to any conflicts of law provisions (other than
Section 5-1401 of the New York General Obligations Law) that might cause this
Supplemental Indenture and the Notes to be governed by or construed or enforced
in accordance with the laws of any other jurisdiction.
[The rest of this page has been intentionally left blank.]
Supplemental Indenture
IN WITNESS WHEREOF, the parties have caused this Supplemental
Indenture to be duly executed, and attested, all as of the date and year first
written above.
ADELPHIA COMMUNICATIONS CORPORATION
By: /s/ Xxxxx X. Xxxxx
Name: Xxxxx X. Xxxxx
Title: Vice President, Finance
Supplemental Indenture
THE BANK OF NEW YORK, as Trustee
By: /s/ Xxxxxxx Xxxxxxx
Name: Xxxxxxx Xxxxxxx
Title: Assistant Vice President
Exhibit A
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[Face of Note]
6% Convertible Subordinated Notes due 2006
CUSIP No. ___________________ $_______________
ADELPHIA COMMUNICATIONS CORPORATION
promises to pay to Cede & Co. or registered assigns, the principal sum
of ___________________ Dollars on February 15, 2006.
Interest Payment Dates: February 15 and August 15
Record Dates: February 1 and August 1
Dated: January 23, 2001
ADELPHIA COMMUNICATIONS CORPORATION
By
----------------------------------
Name:
Title:
(SEAL)
This is one of the Notes referred to in the within- mentioned Indenture:
THE BANK OF NEW YORK,
as Trustee
By:
-----------------------------------------------
Authorized Signature
[Back of Note]
6% Convertible Subordinated Notes due 2006
[INSERT IN GLOBAL NOTES] [This Security is in global form
within the meaning of the Indenture hereinafter referred to and is registered in
the name of a Common Depositary or a U.S. Depositary. Unless and until it is
exchanged in whole or in part for Securities in certificated form, this Security
may not be transferred except as a whole by the Common Depositary or a U.S.
Depositary or by a nominee of the Common Depositary or a nominee of the U.S.
Depositary as the case may be.]
Unless and until it is exchanged in whole or in part for Notes
in definitive form, this Note may not be transferred except as a whole by the
U.S. Depository to a nominee of the U.S. Depository or by a nominee of the U.S.
Depository to the U.S. Depository or another nominee of the U.S. Depository or
by the U.S. Depository or any such nominee to a successor U.S. Depository or a
nominee of such successor U.S. Depository. Unless this certificate is presented
by an authorized representative of The Depository Trust Company (55 Xxxxx
Xxxxxx, Xxx Xxxx, Xxx Xxxx) ("XXX"), to the issuer or its agent for registration
of transfer, exchange or payment, and any certificate issued is registered in
the name of Cede & Co. or such other name as may be requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or such other
entity as may be requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.
Capitalized terms used herein shall have the meanings assigned
to them in the Indenture referred to below unless otherwise indicated.
1. INTEREST. Adelphia Communications Corporation, a Delaware
corporation (the "Company") promises to pay interest on the principal amount of
this Note at 6% per annum from January 23, 2001 until February 15, 2006. The
Company shall pay interest, semi-annually in arrears on February 15 and August
15 of each year, or if any such day is not a Business Day, on the next
succeeding Business Day (each an "Interest Payment Date"). Interest on the Notes
will accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; provided that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; provided, further, that the first Interest Payment Date shall be
August 15, 2001. The Company shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal from
time to time on demand at a rate equal to the per annum rate on the Notes then
in effect; it shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue installments of interest
(without regard to any applicable grace periods) from time to time on demand at
the same rate to the extent lawful. Interest will be computed on the basis of a
360-day year of twelve 30-day months.
2. METHOD OF PAYMENT. The Company shall make payments in
respect of the Notes represented by the Global Notes (including principal and
interest) by wire transfer of immediately available funds to the accounts
specified by the Note Custodian. With respect to Notes issued in definitive
form, the Company shall make all payments of principal and interest by mailing a
check to each such Holder's registered address, provided that all payments with
respect to Notes having an aggregate principal amount of $100,000 or more, the
Holders of which have given wire transfer instructions to the Company at least
ten business days prior to the applicable payment date, will be required to be
made by wire transfer of immediately available funds to the accounts specified
by the Holders thereof. The Notes represented by the Global Notes are expected
to be eligible to trade in DTC's Same-Day Funds Settlement System, and any
permitted secondary market trading activity in such notes will, therefore, be
required by DTC to be settled in immediately available funds. The Company
expects that secondary trading in the Definitive Notes also will be settled in
immediately available funds.
3. PAYING AGENT AND SECURITY REGISTRAR. Initially,
The Bank of New York, the Trustee under the Indenture, will act as Paying Agent,
Conversion Agent and Security Registrar. The Notes may be presented for
registration of transfer and exchange at the offices of the Security Registrar.
The Company may change any Paying Agent, Conversion Agent or Security Registrar
without notice to any Holder. The Company or any of its Subsidiaries may act in
any such capacity.
4. INDENTURE. The Company issued the Notes under an Indenture
dated as of January 23, 2001 (the "Base Indenture") as supplemented by a First
Supplemental Indenture dated as of January 23, 2001 (the "Supplemental
Indenture" and, together with the Base Indenture, the "Indenture" ) between the
Company and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code SS 77aaa-77bbbb). The Notes are
subject to all such terms, and Holders are referred to the Indenture and such
Act for a statement of such terms. The Notes issued under the Indenture are
subordinated unsecured obligations of the Company limited to $862,500,000 in
aggregate principal amount.
5. OPTIONAL REDEMPTION.
At any time on or after February 16, 2004, the Company may
redeem any portion of the Notes, in whole or in part, on at least 30 days, but
no more than 60 days' notice at the following prices (expressed as a percentage
of the principal amount), together with accrued and unpaid interest to, but
excluding, the redemption date:
Redemption Period Redemption Price
February 16, 2004 through February 14, 2005 102.40%
February 15, 2005 through February 14, 2006 101.20%
and 100.00% of the principal amount on February 15, 2006.
In the event the Company redeems less than all of the
outstanding Notes, the Notes to be redeemed shall be selected by the Trustee in
accordance with Section 11.3 of the Indenture. In the event a portion of an
outstanding Note is selected for redemption and such Note is converted in part
after such selection, the converted portion of such Note shall be deemed (so far
as may be) to be the portion to be selected for redemption in accordance with
Section 11.3 of the Indenture. The Company may not give notice of any redemption
if the Company has defaulted in payment of interest and the default is
continuing.
6. NOTICE OF REDEMPTION.
Notice of redemption will be mailed at least 30 days but not
more than 60 days before the redemption date to each Holder of the Notes to be
redeemed at such Holder's address of record. The Notes in denominations larger
than $1,000 may be redeemed in part but only in integral multiples of $1,000. In
the event of a redemption of less than all of the Notes, the Notes will be
chosen for redemption by the Trustee in accordance with the Indenture. On and
after the redemption date, interest ceases to accrue on the Notes or portions of
them called for redemption.
If this Note is redeemed subsequent to a Record Date with
respect to any Interest Payment Date specified above and on or prior to such
Interest Payment Date, then any accrued interest will be paid to the Person in
whose name this Note is registered at the close of business on such Record Date.
7. MANDATORY REDEMPTION. Except as set forth in
paragraph 8 below, the Company shall not be required to make mandatory
redemption payments with respect to the Notes. There are no sinking fund
payments with respect to the Notes.
8. REPURCHASE AT OPTION OF HOLDER. Within 10 days of the
occurrence of a Fundamental Change the Company shall notify the Trustee and each
Holder in writing of such occurrence and shall make an offer to purchase (the
"Fundamental Change Offer") all or any part of each Holder's Notes at a purchase
price equal to 100% of the principal amount thereof plus any accrued and unpaid
interest thereon to the purchase date, which shall be a Business Day no later
than 30 Business Days after the date of the notice of the Fundamental Change
(the "Fundamental Change Payment Date"). Such right to require the repurchase of
Notes shall not continue after discharge of the Company from its obligations
with respect to the Notes. The Board of Directors of the Company may not waive
this provision.
9. SUBORDINATION. The payment of the principal of, interest on
or any other amounts due on the Notes is subordinated in right of payment to all
existing and future Senior Debt of the Company, as described in the Indenture.
Each Holder, by accepting a Note, agrees to such subordination and authorizes
and directs the Trustee on its behalf to take such action as may be necessary or
appropriate to effectuate the subordination so provided and appoints the Trustee
as its attorney-in-fact for such purpose.
10. CONVERSION. The holder of any Note has the right,
exercisable at any time after the original issuance of the Note and before the
close of business (New York time) on the Business Day immediately preceding the
date of the Note's maturity, to convert the principal amount thereof (or any
portion thereof that is an integral multiple of $1,000) into shares of Class A
Common Stock at the initial Conversion Price of $55.49 per share, subject to
adjustment under certain circumstances as set forth in the Indenture, except
that if a Note is called for redemption, the conversion right will terminate at
the close of business on the Business Day immediately preceding the date fixed
for redemption (unless the Company shall default in making the redemption
payment when it becomes due, in which case the conversion right shall terminate
on the date such default is cured).
To convert a Note, a holder must (1) complete and sign a
conversion notice substantially in the form set forth below, (2) surrender the
Note to a Conversion Agent, (3) furnish appropriate endorsements or transfer
documents if required by the Registrar or Conversion Agent and (4) pay any
transfer or similar tax, if required. No payment or other adjustment for accrued
interest or dividends on any Class A Common Stock issued upon conversion of the
Notes. If any Notes are converted during any period after any Record Date for
the payment of an installment of interest but before the next Interest Payment
Date, interest for such notes will be paid on the next Interest Payment Date,
notwithstanding such conversion, to the Holders of such Notes. Any Notes that
are, however, delivered to the Company for conversion after any Record Date but
before the next Interest Payment Date must, except as described in the next
sentence, be accompanied by a payment equal to the interest payable on such
Interest Payment Date on the principal amount of Notes being converted. The
payment to the Company described in the preceding sentence shall not be required
if, during that period between a Record Date and the next Interest Payment Date,
a conversion occurs on or after the date that the Company has issued a
redemption notice and prior to the date of redemption stated in such notice. No
fractional shares will be issued upon conversion, but a cash adjustment will be
made for any fractional shares.
A Note in respect of which a Holder has delivered an "Option
of Holder to Elect Purchase" form appearing below exercising the option of such
Holder to require the Company to purchase such Note may be converted only if the
notice of exercise is withdrawn as provided above and in accordance with the
terms of the Indenture. The above description of conversion of the Notes is
qualified by reference to, and is subject in its entirety by, the more complete
description thereof contained in the Indenture.
11. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in
registered form without coupons in minimum denominations of $1,000 and integral
multiples of $1,000 in excess thereof. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture.
12. PERSONS DEEMED OWNERS. The registered Holder of a Note
may be treated as its owner for all purposes.
13. AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
exceptions, the Indenture with respect to the Notes or the Notes may be amended
or supplemented with the written consent of the Holders of a majority in
principal amount of the Initial Notes and Additional Notes, if any, voting as a
single class, and any existing default or compliance with any provision of the
Indenture with respect to the Notes or the Notes may be waived with the consent
of the Holders of a majority in principal amount of the Initial Notes and
Additional Notes, if any, voting as a single class. Without the consent of any
Holder of the Notes, the Indenture with respect to the Notes or the Notes may be
amended or supplemented to, in addition to other events more fully described in
the Indenture, cure any ambiguity, defect or inconsistency, to establish the
form or terms of the Notes as permitted by Sections 2.1 and 3.1 of the
Indenture, to evidence the succession of another corporation to the Company and
the assumption by any such successor of the covenants of the Company contained
in the Indenture, to secure the Notes, to make any change that does not
materially adversely affect the interests of any Holder under the Indenture, to
qualify, or maintain the qualification of the Indenture under the Trust
Indenture Act or to provide for the issuance of Additional Notes in accordance
with the limitations set forth in the Indenture.
14. DEFAULTS AND REMEDIES. An Event of Default with respect to
the Notes occurs if: (i) the Company defaults in the payment when due of any
interest on, any such series of Notes and such default continues for a period of
30 days; (ii) the Company defaults in the payment of the principal of any such
series of Notes at its maturity; (iii) the Company fails to observe or perform
any other covenant, representation, warranty or other agreement in the Indenture
or the Notes for 60 days after written notice to the Company by the Trustee or
the Holders of at least 25% in principal amount of such series of Notes then
outstanding; (iv) the Company fails to pay when due principal, interest or
premium aggregating $10,000,000 or more with respect to any Indebtedness of the
Company or any Restricted Subsidiary, or the acceleration of any such
Indebtedness which default shall not be cured or waived, or such acceleration
shall not be rescinded or annulled, within 10 days after written notice; (v) a
final judgment or final judgments for the payment of money are entered by a
court or courts of competent jurisdiction against the Company or any of its
Restricted Subsidiaries and such judgment or judgments remain undischarged for a
period (during which execution shall not be effectively stayed) of 60 days,
provided that the aggregate of all such judgments exceeds $10,000,000; or (vi)
the Company or any Restricted Subsidiary with liabilities of greater than
$10,000,000 under GAAP as of the date of the event described in this clause,
pursuant to or within the meaning of Bankruptcy Law: (a) commences a voluntary
case, (b) consents to the entry of an order for relief against it in an
involuntary case, (c) consents to the appointment of a Custodian of it or for
all or substantially all of its property, or (d) makes a general assignment for
the benefit of its creditors, (vii) a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that: (a) is for relief against the
Company, or any Restricted Subsidiary with liabilities of greater than
$10,000,000 under GAAP as of the effective date of such order or decree in an
involuntary case, (b) appoints a custodian of the Company, or any Restricted
Subsidiary of Restricted Subsidiary with liabilities of greater than $10,000,000
under GAAP as of the effective date of such order or decree or for all or
substantially all of its property or (c) orders the liquidation of the Company,
or any Restricted Subsidiary with liabilities greater than $10,000,000 under
GAAP as of the effective date of such order or decree; and the order or decree
remains unstayed and in effect for 60 consecutive days. If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then outstanding series of Notes (including Additional
Notes, if any) may declare all of such Notes to be due and payable immediately.
Notwithstanding the foregoing, in the case an Event of Default specified in
clauses (6) or (7) of Section 5.1 of the Indenture occurs with respect to the
Company, or a Restricted Subsidiary with liabilities of greater than $10,000,000
under GAAP as of the effective date of such order or decree, all outstanding
series of Notes will become due and payable without further action or notice.
Holders of such series of Notes may not enforce the Indenture with respect to
such series of Notes or such series of Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in principal
amount of the then outstanding series of Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders of such
series of Notes notice of any continuing Default or Event of Default (except a
Default or Event of Default relating to the payment of principal or interest) if
it determines that withholding notice is in their interest. The Holders of not
less than a majority in aggregate principal amount of the such series of Notes
then outstanding by notice to the Trustee may on behalf of the Holders of all of
the Notes waive any existing Default or Event of Default and its consequences
under the Indenture, except a continuing Default or Event of Default in the
payment of the principal of or interest on, such series of Notes (provided,
however, that the Holders of a majority in aggregate principal amount of the
then outstanding series of Notes may rescind an acceleration and its
consequence, including any related payment default) or a default with respect to
any covenant or provision which cannot be modified or amended without the
consent of the Holder of each outstanding Note affected.
The Company is required to deliver to the Trustee annually a
statement regarding compliance with the Indenture, and the Company is required,
upon becoming aware of any Default or Event of Default, to deliver to the
Trustee a statement specifying such Default or Event of Default and what action
the Company is taking or proposes to take thereto.
15. TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not the Trustee.
16. NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder of the Company, as such, shall not have any
liability for any obligations of the Company under the Notes or the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder by accepting a Note waives and releases all such
liability including any rights against any general partner of the Company in its
capacity as general partner. The waiver and release are part of the
consideration for the issuance of the Notes.
17. AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.
18. ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).
19. CUSIP NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.
The Company shall furnish to any Holder upon written request
and without charge a copy of the Indenture. Requests may be made to:
Adelphia Communications Corporation
Xxx Xxxxx Xxxx Xxxxxx
Xxxxxxxxxxx, Xxxxxxxxxxxx 00000
Attention: Xxxxx X. Xxxxxx, Esq.
ASSIGNMENT FORM
To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to
(Insert assignee's soc. sec. or tax I.D. no.)
(Print or type assignee's name, address and zip code)
and irrevocably appoint
-------------------------------------------------------
to transfer this 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 face of this Note)
OPTION OF HOLDER TO ELECT PURCHASE
If you want to elect to have this Note purchased by the
Company pursuant to Section 2.7 of the Supplemental Indenture, check the box
below:
Section 2.7
If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 2.7 of the Supplemental Indenture, state the
amount you elect to have purchased: $________
Date: __________ Your Signature:
------------------------------------
(Sign exactly as your name appears on the Note)
Tax Identification No.:
---------------------------
ELECTION TO CONVERT
To Adelphia Communications Corporation:
The undersigned owner of this Note hereby irrevocably exercises the
option to convert this Note, or the portion below designated, into
Class A Common Stock of Adelphia Communications Corporation in
accordance with the terms of the Indenture referred to in this Note,
and directs that the shares issuable and deliverable upon conversion,
together with any check in payment for fractional shares, be issued in
the name of and delivered to the undersigned, unless a different name
has been indicated in the assignment below. If the shares are to be
issued in the name of a person other than the undersigned, the
undersigned will pay all transfer taxes payable with respect thereto.
Date:
in whole ___
Portions of Note to be converted ($1,000 or integral multiples thereof):
$--------------
Signature
Please Print or Typewrite Name and Address, Including Zip Code, and Social
Security or Other Identifying Number
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Signature Guarantee: *
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SCHEDULE OF EXCHANGES OF NOTES*
The following exchanges of a part of this Global Note for other Notes have been made:
Principal Amount of Signature of
Amount of decrease Amount of increase in this Global Note authorized office
in Principal Amount Principal Amount of following such of Trustee or Note
Date of Exchange of this Global Note this Global Note decrease (or increase) Custodian
--------------------------------------------------------------------------------------------------------------------------------
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* Signature must be guaranteed by a commercial bank, trust company or member firm of the New York Stock Exchange.
* This schedule should be included only if the Note
is issued in global form.
