EXHIBIT 4(ll)
_______________________________________________
COMMON SECURITIES GUARANTEE AGREEMENT
CIRCUS CIRCUS ENTERPRISES, INC.
Dated as of [_______ __, ____]
_______________________________________________
TABLE OF CONTENTS
PAGE
ARTICLE I DEFINITIONS AND INTERPRETATION . . . . . . . . . . . . . . . . . 1
SECTION 1.1 Definitions Interpretation.. . . . . . . . . . . . 1
ARTICLE II GUARANTEE. . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
SECTION 2.1 Guarantee. . . . . . . . . . . . . . . . . . . . . 3
SECTION 2.2 Waiver of Notice and Demand. . . . . . . . . . . . 3
SECTION 2.3 Obligations Not Affected . . . . . . . . . . . . . 4
SECTION 2.4 Rights of Holders. . . . . . . . . . . . . . . . . 5
SECTION 2.5 Guarantee of Payment . . . . . . . . . . . . . . . 5
SECTION 2.6 Subrogation. . . . . . . . . . . . . . . . . . . . 5
SECTION 2.7 Independent Obligations. . . . . . . . . . . . . . 5
ARTICLE III LIMITATION OF TRANSACTIONS; SUBORDINATION. . . . . . . . . . . . 5
SECTION 3.1 Limitation of Transactions . . . . . . . . . . . . 5
SECTION 3.2 Ranking. . . . . . . . . . . . . . . . . . . . . . 6
ARTICLE IV TERMINATION. . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SECTION 4.1 Termination. . . . . . . . . . . . . . . . . . . . 6
ARTICLE V MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . 7
SECTION 5.1 Successors and Assigns . . . . . . . . . . . . . . 7
SECTION 5.2 Amendments . . . . . . . . . . . . . . . . . . . . 7
SECTION 5.3 Notices. . . . . . . . . . . . . . . . . . . . . . 7
SECTION 5.4 Benefit. . . . . . . . . . . . . . . . . . . . . . 8
SECTION 5.5 Governing Law. . . . . . . . . . . . . . . . . . . 8
SECTION 5.6 No Recourse Against Certain Persons. . . . . . . . 8
-i-
COMMON SECURITIES GUARANTEE AGREEMENT
GUARANTEE AGREEMENT (this "Common Securities Guarantee"), dated as of
[_______ __, ____], is executed and delivered by Circus Circus Enterprises,
Inc., a Nevada corporation (the "Guarantor"), for the benefit of the Holders
(as defined herein) from time to time of the Common Securities (as defined
herein) of Circus Finance II, a Delaware business trust (the "Issuer").
WHEREAS, pursuant to an amended and restated Declaration of Trust (the
"Declaration"), dated as of [_______ __, ____], among the Trustees of the
Issuer named therein, the Guarantor, as sponsor, and the holders from time to
time of undivided beneficial interests in the assets of the Issuer, the
Issuer is issuing on the date hereof ________ common securities having an
aggregate liquidation amount of $_________ designated the Common Securities
(the "Common Securities");
WHEREAS, as incentive for the Holders to purchase the Common Securities,
the Guarantor desires to irrevocably and unconditionally agree, to the extent
set forth in this Common Securities Guarantee, to pay to the Holders of the
Common Securities the Guarantee Payments (as defined herein) and to make
certain other payments on the terms and conditions set forth herein; and
WHEREAS, the Guarantor is also executing and delivering a guarantee
agreement (the "Preferred Securities Guarantee") in substantially identical
terms to this Common Securities Guarantee for the benefit of the holders of
the Preferred Securities (as defined herein), except that if an Event of
Default (as such term is defined in the Indenture) has occurred and is
continuing, the rights of Holders of the Common Securities to receive
Guarantee Payments under this Common Securities Guarantee are subordinated to
the rights of holders of Preferred Securities to receive guarantee payments
under the Preferred Securities Guarantee.
NOW, THEREFORE, in consideration of the purchase by each Holder of
Common Securities, which purchase the Guarantor hereby agrees shall benefit
the Guarantor, the Guarantor executes and delivers this Common Securities
Guarantee for the benefit of the Holders.
ARTICLE I
DEFINITIONS AND INTERPRETATION
SECTION 1.1 DEFINITIONS INTERPRETATION.
In this Common Securities Guarantee, unless the context otherwise requires:
(a) capitalized terms used in this Common Securities Guarantee but
not defined in the preamble above have the respective meanings assigned to
them in this Section 1.1;
(b) terms defined in the Declaration as at the date of execution
of this Common Securities Guarantee have the same meaning when used in this
Common Securities Guarantee unless otherwise defined in this Common
Securities Guarantee;
(c) a term defined anywhere in this Common Securities Guarantee
has the same meaning throughout;
(d) all references to "the Common Securities Guarantee" or "this
Common Securities Guarantee" are to this Common Securities Guarantee as
modified, supplemented or amended from time to time;
(e) all references in this Common Securities Guarantee to Articles
and Sections are to Articles and Sections of this Common Securities Guarantee
unless otherwise specified; and
(f) a reference to the singular includes the plural and vice versa.
"Guarantee Payments" shall mean the following payments or distributions,
without duplication, with respect to the Common Securities, to the extent not
paid or made by the Issuer: (i) any accrued and unpaid Distributions that are
required to be paid on such Common Securities, to the extent the Issuer has
funds available therefor, (ii) the redemption price, including all accrued
and unpaid Distributions to the date of redemption (the "Redemption Price"),
to the extent the Issuer has funds available therefor, with respect to any
Common Securities called for redemption by the Issuer, and (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Issuer
(other than in connection with the distribution of Subordinated Debentures to
the Holders in exchange for Common Securities as provided in the
Declaration), the lesser of (a) the aggregate of the liquidation amount and
all accrued and unpaid Distributions on the Common Securities to the date of
payment, to the extent the Issuer has funds available therefor, and (b) the
amount of assets of the Issuer remaining available for distribution to
Holders in liquidation of the Issuer (in either case, the "Liquidation
Distribution"). If an Event of Default (as defined in the Indenture) has
occurred and is continuing, the rights of Holders of the Common Securities to
receive Guarantee Payments under this Common Securities Guarantee are
subordinated to the rights of holders of Preferred Securities to receive
guarantee payments under the Preferred Securities Guarantee.
-2-
"Holder" shall mean any holder, as registered on the books and records
of the Issuer, of any Common Securities.
"Indenture" means the Indenture dated as of [_________ __, ____] between
the Guarantor and The Bank of New York, as Trustee, and the First
Supplemental Indenture thereto pursuant to which certain subordinated debt
securities of the Guarantor are to be issued to the Property Trustee (as
defined in the Declaration), as from time to time amended.
"Property Trustee" shall have the meaning ascribed to such term in the
Declaration.
"Subordinated Debentures" means the series of subordinated debt
securities of the Guarantor designated the ____% Subordinated Deferrable
Interest Debentures due _____ __, ____, held by the Property Trustee.
"Preferred Securities" shall mean the securities representing preferred
undivided beneficial interests in the assets of the Issuer.
ARTICLE II
GUARANTEE
SECTION 2.1 GUARANTEE
The Guarantor irrevocably and unconditionally agrees to pay in full to
the Holders the Guarantee Payments (without duplication of amounts
theretofore paid by the Issuer), as and when due, regardless of any defense,
right of set-off or counterclaim which the Issuer may have or assert. The
Guarantor's obligation to make a Guarantee Payment may be satisfied by direct
payment of the required amounts by the Guarantor to the Holders or by causing
the Issuer to pay such amounts to the Holders.
SECTION 2.2 WAIVER OF NOTICE AND DEMAND
The Guarantor hereby waives notice of acceptance of this Common
Securities Guarantee and of any liability to which it applies or may apply,
presentment, demand for payment, any right to require a proceeding first
against the Issuer or any other Person before proceeding against the
Guarantor, protest, notice of nonpayment, notice of dishonor, notice of
redemption and all other notices and demands.
SECTION 2.3 OBLIGATIONS NOT AFFECTED
The obligations, covenants, agreements and duties of the Guarantor under
this Common Securities Guarantee shall in no way be affected or impaired by
reason of the happening from time to time of any of the following:
-3-
(a) the release or waiver, by operation of law or otherwise, of the
performance or observance by the Issuer of any express or implied agreement,
covenant, term or condition relating to the Common Securities to be performed or
observed by the Issuer;
(b) the extension of time for the payment by the Issuer of all or
any portion of the Distributions, Redemption Price, Liquidation Distribution
or any other sums payable under the terms of the Common Securities or the
extension of time for the performance of any other obligation under, arising
out of, or in connection with, the Common Securities (other than an extension
of time for payment of Distributions or other sum payable that results from
the extension of any interest payment period on the Subordinated Debentures
permitted by the Indenture);
(c) any failure, omission, delay or lack of diligence on the part of
the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Holders pursuant to the terms of the Common Securities, or any
action on the part of the Issuer granting indulgence or extension of any kind;
(d) the voluntary or involuntary liquidation, dissolution, sale of
any collateral, receivership, insolvency, bankruptcy, assignment for the benefit
of creditors, reorganization, arrangement, composition or readjustment of debt
of, or other similar proceedings affecting, the Issuer or any of the assets of
the Issuer;
(e) any invalidity of, or defect or deficiency in, the Common
Securities;
(f) the settlement or compromise of any obligation guaranteed hereby
or hereby incurred; or
(g) any other circumstance whatsoever that might otherwise constitute
a legal or equitable discharge or defense of a guarantor;
it being the intent of this Section 2.3 that the obligations of the Guarantor
hereunder shall be absolute and unconditional under any and all circumstances.
There shall be no obligation of the Holders to give notice to, or obtain
consent of, the Guarantor with respect to the happening of any of the foregoing.
SECTION 2.4 RIGHTS OF HOLDERS
The Guarantor expressly acknowledges that any Holder of Common Securities
may institute a legal proceeding directly against the Guarantor to enforce its
rights under this
-4-
Common Securities Guarantee, without first instituting a legal proceeding
against the Issuer or any other Person.
SECTION 2.5 GUARANTEE OF PAYMENT
This Common Securities Guarantee creates a guarantee of payment and not of
collection.
SECTION 2.6 SUBROGATION
The Guarantor shall be subrogated to all (if any) rights of the Holders of
Common Securities against the Issuer in respect of any amounts paid to such
Holders by the Guarantor under this Common Securities Guarantee; PROVIDED,
HOWEVER, that the Guarantor shall not (except to the extent required by
mandatory provisions of law) be entitled to enforce or exercise any rights which
it may acquire by way of subrogation or any indemnity, reimbursement or other
agreement, in all cases as a result of payment under this Common Securities
Guarantee, if, at the time of any such payment, any amounts are due and unpaid
under this Common Securities Guarantee. If any amount shall be paid to the
Guarantor in violation of the preceding sentence, the Guarantor agrees to hold
such amount in trust for the Holders and to pay over such amount to the Holders.
SECTION 2.7 INDEPENDENT OBLIGATIONS
The Guarantor acknowledges that its obligations hereunder are independent
of the obligations of the Issuer with respect to the Common Securities and that
the Guarantor shall be liable as principal and as debtor hereunder to make
Guarantee Payments pursuant to the terms of this Common Securities Guarantee
notwithstanding the occurrence of any event referred to in subsections (a)
through (g), inclusive, of Section 2.3 hereof.
ARTICLE III
LIMITATION OF TRANSACTIONS; SUBORDINATION
SECTION 3.1 LIMITATION OF TRANSACTIONS
(a) So long as any Common Securities remain outstanding, if (i) the
Guarantor shall be in default with respect to its Guarantee Payments or other
obligations hereunder, or (ii) if an Event of Default (as defined in the
Indenture) shall exist then (a) the Guarantor shall not declare or pay any
dividend on, or make any distributions with respect to, or redeem, purchase,
acquire or make a liquidation payment with respect to, any of its capital stock
and (b) the Guarantor shall not make any payment of interest, principal or
premium, if any, on or repay, repurchase or redeem any debt securities issued by
the Guarantor which rank pari passu with or junior to the Subordinated
Debentures.
-5-
(b) Notwithstanding subsection 3.1(a) or any other language to the
contrary contained in this Common Securities Guarantee, nothing shall prevent
the Guarantor from: (i) declaring or paying any dividend on, or making any
distribution with respect to, or redeeming, purchasing, acquiring or making a
liquidation payment with respect to, any of its capital stock in or with
securities of the Guarantor (including capital stock) that rank junior to
such capital stock or (ii) paying any interest, principal or premium on, or
repaying, repurchasing or redeeming, any debt securities issued by the
Guarantor which rank pari passu with or junior to the Subordinated
Debentures, with securities of the Guarantor (including capital stock) that
rank junior to such debt securities.
SECTION 3.2 RANKING
This Common Securities Guarantee will constitute an unsecured obligation
of the Guarantor and will rank (i) subordinate and junior in right of payment
to all other liabilities of the Guarantor, including the Subordinated
Debentures and the Preferred Securities Guarantee, except those liabilities
of the Guarantor made pari passu or subordinate by their terms, (ii) pari
passu with the most senior preferred stock issued from time to time by the
Guarantor and with any guarantee now or hereafter entered into by the
Guarantor in respect of any preferred stock of any Subsidiary or Affiliate of
the Guarantor, except the Preferred Securities Guarantee, and (iii) senior to
the Guarantor's common stock.
ARTICLE IV
TERMINATION
SECTION 4.1 TERMINATION
This Common Securities Guarantee shall terminate upon the first to occur
of (i) full payment of the Redemption Price of all Common Securities, (ii)
the distribution of Subordinated Debentures to the Holders of all of the
Common Securities or (iii) the full payment of the amounts payable in
accordance with the Declaration upon liquidation of the Issuer.
Notwithstanding the foregoing, this Common Securities Guarantee will continue
to be effective or will be reinstated, as the case may be, if at any time any
Holder of Common Securities must restore payment of any sums paid under the
Common Securities or under this Common Securities Guarantee.
ARTICLE V
MISCELLANEOUS
SECTION 5.1 SUCCESSORS AND ASSIGNS
-6-
All guarantees and agreements contained in this Common Securities Guarantee
shall bind the successors, assigns, receivers, trustees and representatives of
the Guarantor and shall inure to the benefit of the Holders of the Common
Securities then outstanding.
SECTION 5.2 AMENDMENTS
Except with respect to any changes which do not adversely affect the rights
of Holders (in which case no consent of Holders will be required), this Common
Securities Guarantee may only be amended with the prior approval of the Holders
of at least a majority in liquidation amount of all the outstanding Common
Securities. The provisions of Section 12.2 of the Declaration with respect to
meetings of Holders of the Securities apply to the giving of such approval.
SECTION 5.3 NOTICES
All notices provided for in this Common Securities Guarantee shall be in
writing, duly signed by the party giving such notice, and shall be delivered,
telecopied or mailed by registered or certified mail, as follows:
(a) if given to the Issuer, in care of the Regular Trustees at the
Issuer's mailing address set forth below (or such other address as the Issuer
may give notice of to the Holders of the Common Securities):
Circus Finance II
________________________
________________________
________________________
________________________
(b) if given to the Guarantor, at the Guarantor's mailing address set
forth below (or such other address as the Guarantor may give notice of to the
Holders of the Common Securities):
-0-
Xxxxxx Xxxxxx Enterprises, Inc.
________________________
________________________
________________________
________________________
(c) if given to any Holder of Common Securities, at the address set
forth on the books and records of the Issuer.
All such notices shall be deemed to have been given when received in
person, telecopied with receipt confirmed, or mailed by first class mail,
postage prepaid except that if a notice or other document is refused delivery or
cannot be delivered because of a changed address of which no notice was given,
such notice or other document shall be deemed to have been delivered on the date
of such refusal or inability to deliver.
SECTION 5.4 BENEFIT
This Common Securities Guarantee is solely for the benefit of the Holders
of the Common Securities and is not separately transferable from the Common
Securities.
SECTION 5.5 GOVERNING LAW
THIS COMMON SECURITIES GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
GIVING EFFECT TO CONFLICTS OF LAWS PRINCIPLES.
SECTION 5.6 NO RECOURSE AGAINST CERTAIN PERSONS
No past, present or future director, officer, employee or stockholder, as
such, of the Guarantor or any successor thereof shall have any liability for any
obligations of the Guarantor under this Preferred Securities Guarantee or for
any claim based on, in respect of, or by reason of, such obligations or their
creation and all such liability is hereby waived and released. Such waiver and
release are part of the consideration for the issue of qthis Common Securities
Guarantee and the Common Securities.
-8-
This Common Securities Guarantee is executed as of the day and year first
above written.
CIRCUS CIRCUS ENTERPRISES, INC.
By: ________________________________
Name:
Title:
-9-
