EXHIBIT 10.9
PURE RESOURCES, INC.
AS ISSUER,
THE GUARANTORS NAMED HEREIN,
AS GUARANTORS,
and
FIRST UNION NATIONAL BANK
AS TRUSTEE
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INDENTURE
Dated as of June 8, 2001
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$350,000,000
SERIES A AND SERIES B
7 1/8% NOTES DUE 2011
CROSS-REFERENCE TABLE*
TRUST
INDENTURE ACT INDENTURE
SECTION SECTION
310 (a)(1) ...................................................................... 6.10
(a)(2) ...................................................................... 6.10
(a)(3) ...................................................................... N.A.
(a)(4) ...................................................................... N.A.
(a)(5) ...................................................................... 6.10
(b) ...................................................................... 6.10; 7.01(b)
(c) ...................................................................... N.A.
311 (a) ...................................................................... 6.11
(b) ...................................................................... 6.11
(c) ...................................................................... N.A.
312 (a) ...................................................................... 2.05
(b) ...................................................................... 11.03
(c) ...................................................................... 11.03
313 (a) ...................................................................... 6.06
(b) ...................................................................... 6.06
(c) ...................................................................... 6.06
(d) ...................................................................... 6.06
314 (a) ...................................................................... 3.03
(b) ...................................................................... N.A.
(c)(1) ...................................................................... 11.04
(c)(2) ...................................................................... 11.04
(c)(3) ...................................................................... N.A.
(d) ...................................................................... N.A.
(e) ...................................................................... 11.05
(f) ...................................................................... N.A.
315 (a) ...................................................................... 6.01(b)
(b) ...................................................................... 6.05
(c) ...................................................................... 6.01(a)
(d) ...................................................................... 6.01(c)
(e) ...................................................................... 5.11
316 (a)(last sentence).................................................................. 2.09
(a)(1)(A) ...................................................................... 5.05
(a)(1)(B) ...................................................................... 5.04
(a)(2) ...................................................................... N.A.
(b) ...................................................................... 5.07
(c) ...................................................................... 8.04
317 (a)(1) ...................................................................... 5.08
(a)(2) ...................................................................... 5.09
(b) ...................................................................... 2.04
318 (a) ...................................................................... 10.01
318 (c) ...................................................................... 10.01
N.A. means not applicable
* This Cross-Reference Table is not part of this Indenture
Table of Contents
Page
ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE................................................... 1
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SECTION 1.01 Definitions........................................................................ 1
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SECTION 1.02 Other Definitions.................................................................. 7
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SECTION 1.03 Incorporation by Reference of Trust Indenture Act.................................. 7
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SECTION 1.04 Rules of Construction.............................................................. 7
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ARTICLE 2 THE SECURITIES............................................................................... 8
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SECTION 2.01 Form and Dating.................................................................... 8
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SECTION 2.02 Execution and Authentication....................................................... 8
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SECTION 2.03 Registrar and Paying Agent......................................................... 9
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SECTION 2.04 Paying Agent to Hold Money in Trust................................................ 10
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SECTION 2.05 Holder Lists....................................................................... 10
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SECTION 2.06 Transfer and Exchange.............................................................. 10
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SECTION 2.07 Replacement Securities............................................................. 17
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SECTION 2.08 Outstanding Securities............................................................. 17
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SECTION 2.09 Treasury Securities................................................................ 18
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SECTION 2.10 Temporary Securities............................................................... 18
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SECTION 2.11 Cancellation....................................................................... 18
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SECTION 2.12 Defaulted Interest................................................................. 18
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SECTION 2.13 Persons Deemed Owners.............................................................. 19
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ARTICLE 3 COVENANTS.................................................................................... 19
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SECTION 3.01 Payment of Securities.............................................................. 19
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SECTION 3.02 Maintenance of Office or Agency.................................................... 19
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SECTION 3.03 SEC Reports; Financial Statements.................................................. 20
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SECTION 3.04 Compliance Certificate............................................................. 21
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SECTION 3.05 Corporate Existence................................................................ 21
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SECTION 3.06 Intentionally omitted.............................................................. 21
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SECTION 3.07 Payment of Taxes and Other Claims.................................................. 21
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SECTION 3.08 Waiver of Stay, Extension or Usury Laws............................................ 22
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SECTION 3.09 Limitation on Sale/Leaseback Transactions.......................................... 22
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SECTION 3.10 Limitation on Liens................................................................ 23
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SECTION 3.11 Registration Rights Agreement...................................................... 24
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ARTICLE 4 SUCCESSORS................................................................................... 25
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SECTION 4.01 Limitations on Mergers and Consolidations.......................................... 25
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SECTION 4.02 Successor Corporation Substituted.................................................. 25
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ARTICLE 5 DEFAULTS AND REMEDIES........................................................................ 26
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SECTION 5.01 Events of Default.................................................................. 26
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SECTION 5.02 Acceleration....................................................................... 27
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SECTION 5.03 Other Remedies..................................................................... 28
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SECTION 5.04 Waiver of Existing Defaults........................................................ 28
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SECTION 5.05 Control by Majority................................................................ 28
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SECTION 5.06 Limitations on Suits............................................................... 29
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SECTION 5.07 Rights of Holders to Receive Payment............................................... 29
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SECTION 5.08 Collection Suit by Trustee......................................................... 29
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SECTION 5.09 Trustee May File Proofs of Claim................................................... 29
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SECTION 5.10 Priorities......................................................................... 30
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SECTION 5.11 Undertaking for Costs.............................................................. 30
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ARTICLE 6 TRUSTEE...................................................................................... 31
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SECTION 6.01 Duties of Trustee.................................................................. 31
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SECTION 6.02 Rights of Trustee.................................................................. 32
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SECTION 6.03 Individual Rights of Trustee....................................................... 32
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SECTION 6.04 Trustee's Disclaimer............................................................... 32
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SECTION 6.05 Notice of Defaults................................................................. 33
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SECTION 6.06 Reports by Trustee to Holders...................................................... 33
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SECTION 6.07 Compensation and Indemnity......................................................... 33
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SECTION 6.08 Replacement of Trustee............................................................. 34
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SECTION 6.09 Successor Trustee by Merger, etc................................................... 35
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SECTION 6.10 Eligibility; Disqualification...................................................... 35
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SECTION 6.11 Preferential Collection of Claims Against Company.................................. 36
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ARTICLE 7 DISCHARGE OF INDENTURE....................................................................... 36
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SECTION 7.01 Termination of Company's Obligations............................................... 36
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SECTION 7.02 Application of Trust Money......................................................... 38
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SECTION 7.03 Repayment to Company............................................................... 38
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SECTION 7.04 Reinstatement...................................................................... 38
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ARTICLE 8 AMENDMENTS................................................................................... 39
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SECTION 8.01 Without Consent of Holders......................................................... 39
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SECTION 8.02 With Consent of Holders............................................................ 40
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SECTION 8.03 Compliance with Trust Indenture Act................................................ 41
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SECTION 8.04 Revocation and Effect of Consents.................................................. 41
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SECTION 8.05 Notation on or Exchange of Securities.............................................. 42
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SECTION 8.06 Trustee to Sign Amendments, etc.................................................... 42
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ARTICLE 9 GUARANTEES OF SECURITIES..................................................................... 42
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SECTION 9.01 Unconditional Guarantees........................................................... 42
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SECTION 9.02 Limitation of Guarantor's Liability................................................ 44
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SECTION 9.03 Contribution....................................................................... 45
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SECTION 9.04 Execution and Delivery of Guarantees............................................... 45
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SECTION 9.05 Addition of Guarantors............................................................. 45
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SECTION 9.06 Release of Guarantee............................................................... 46
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SECTION 9.07 Consent to Jurisdiction and Service of Process..................................... 46
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SECTION 9.08 Waiver of Immunity................................................................. 46
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SECTION 9.09 Judgment Currency.................................................................. 47
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ARTICLE 10 REDEMPTION.................................................................................. 47
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SECTION 10.01 Notices to Trustee................................................................ 47
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SECTION 10.02 Selection of Securities to be Redeemed............................................ 47
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SECTION 10.03 Notices to Holders................................................................ 48
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SECTION 10.04 Effect of Notices of Redemption................................................... 49
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SECTION 10.05 Deposit of Redemption Price....................................................... 49
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SECTION 10.06 Securities Redeemed in Part....................................................... 49
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SECTION 10.07 Optional Redemption............................................................... 49
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SECTION 10.08 No Premium if not Stated.......................................................... 49
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ARTICLE 11 MISCELLANEOUS............................................................................... 50
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SECTION 11.01 Trust Indenture Act Controls...................................................... 50
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SECTION 11.02 Notices........................................................................... 50
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SECTION 11.03 Communication by Holders with Other Holders....................................... 51
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SECTION 11.04 Certificate and Opinion as to Conditions Precedent................................ 51
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SECTION 11.05 Statements Required in Certificate or Opinion..................................... 51
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SECTION 11.06 Rules by Trustee and Agents....................................................... 52
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SECTION 11.07 Legal Holidays.................................................................... 52
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SECTION 11.08 No Recourse Against Others........................................................ 52
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SECTION 11.09 Governing Law..................................................................... 52
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SECTION 11.10 No Adverse Interpretation of Other Agreements..................................... 52
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SECTION 11.11 Successors........................................................................ 52
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SECTION 11.12 Severability...................................................................... 53
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SECTION 11.13 Counterpart Originals............................................................. 53
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SECTION 11.14 Table of Contents, Headings, etc.................................................. 53
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INDENTURE dated as of June 8, 2001 between Pure Resources, Inc., a Delaware
corporation (the "Company"), the entities listed on Schedule I hereto (each a
"Guarantor" and collectively, the "Guarantors") and First Union National Bank, a
national banking association (the "Trustee").
Each party agrees as follows for the benefit of the other parties and for
the equal and ratable benefit of the Holders of the Company's 7 1/8% Series A
Notes due 2011 (the "Series A Securities") and the Company's 7 1/8% Series B
Notes due 2011 (the "Series B Securities"):
ARTICLE 1
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01 Definitions.
"Adjusted Net Assets" of a Guarantor at any date means the lesser of (x)
the amount by which the fair value of the property of such Guarantor at such
date exceeds the total amount of liabilities, including, without limitation, the
probable amount of contingent liabilities (after giving effect to all other
fixed and contingent liabilities incurred or assumed on such date) of such
Guarantor at such date, but excluding liabilities under the Guarantee of such
Guarantor, and (y) the amount by which the present fair saleable value of the
assets of such Guarantor at such date exceeds the amount that will be required
to pay the probable liability of such Guarantor on its debts (after giving
effect to all other fixed and contingent liabilities incurred or assumed on such
date and after giving effect to any collection from any Subsidiary of such
Guarantor in respect of any obligations of such Subsidiary under the Guarantee
of such Guarantor), excluding debt in respect of the Guarantee of such
Guarantor, as they become absolute and matured.
"Affiliate" of any specified Person means any Person directly or
indirectly controlling or controlled by, or under direct or indirect common
control with, such specified Person. For purposes of this definition, "control"
of a Person shall mean the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" shall have meanings correlative to the foregoing. The Trustee may
request and may conclusively rely upon an Officer's Certificate to determine
whether any Person is an Affiliate of any specified Person.
"Agent" means any Registrar or Paying Agent.
"Attributable Indebtedness," when used with respect to any Sale/Leaseback
Transaction, means, as at the time of determination, the present value
(discounted at the rate set forth or implicit in the terms of the lease included
in such transaction) of the total obligations of the lessee for rental payments
(other than amounts required to be paid on account of property taxes,
maintenance, repairs, insurance, assessments, utilities, operating and labor
costs and other items which do not constitute payments for property rights)
during the remaining term of the lease included in such Sale/Leaseback
Transaction (including any period for which such lease has been extended).
"Bankruptcy Law" means Title 11, U.S. Code or any similar federal, state
or foreign law for the relief of debtors.
"Board of Directors" means the Board of Directors of the Company or any
committee thereof duly authorized, with respect to any particular matter, to act
by or on behalf of the Board of Directors of the Company.
"Business Day" means any day that is not a Legal Holiday.
"Capital Stock" of any Person means and includes any and all shares,
interests, rights to purchase, warrants or options (whether or not currently
exercisable), participations or other equivalents of or interests in (however
designated) the equity (which includes, but is not limited to, common stock,
preferred stock and partnership and joint venture interests) of such Person
(excluding any debt securities that are convertible into, or exchangeable for,
such equity).
"Capitalized Lease Obligation" of any Person means any obligation of such
Person to pay rent or other amounts under a lease of property, real or personal,
that is required to be capitalized for financial reporting purposes in
accordance with GAAP; and the amount of such obligation shall be the capitalized
amount thereof determined in accordance with GAAP.
"Common Equity" of any Person means and includes all Capital Stock of such
Person that is generally entitled to (i) vote in the election of directors of
such Person, or (ii) if such Person is not a corporation, vote to control the
management and policies of such Person or vote or otherwise participate in the
selection of the governing body, partners, managers or others that will control
the management and policies of such Person.
"Company" means the Person named as the "Company" in the first paragraph
of this instrument until a successor corporation shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter "Company" shall
mean such successor corporation; provided, however, that for purposes of any
provision contained herein which is required by the TIA, "Company" shall also
mean each Guarantor, if any.
"Corporate Trust Office of the Trustee" means the office of the Trustee in
the Borough of Manhattan, The City of New York at which the corporate trust
business of the Trustee shall be principally administered, which office shall
initially be located at the address of the Trustee specified in Section 3.02
hereof and may be located at such other address as the Trustee may give notice
to the Company.
"Default" means any event, act or condition that is, or after notice or
the passage of time or both would be, an Event of Default.
"Definitive Securities" means Securities that are in the form of Exhibit A
attached hereto (but without including the text referred to in footnotes 1 and 2
thereto and the Schedule of Exchanges of Securities).
"Depositary" means, with respect to the Securities issuable or issued in
whole or in part in global form, the Person specified in Section 2.03 hereof as
the Depositary with respect to the
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Securities, until a successor shall have been appointed and become such pursuant
to the applicable provision of this Indenture, and, thereafter, "Depositary"
shall mean or include such successor.
"Exchange Act" means the Securities Exchange Act of 1934, as amended, and
any successor statute.
"Exchange Offer" means the offer that may be made by the Company pursuant
to a Registration Rights Agreement to exchange Series B Notes for Series A
Notes.
"Exchange Offer Registration Statement" means a registration statement
under the Securities Act relating to an Exchange Offer, including the related
prospectus.
"Funded Indebtedness" means all Indebtedness (including Indebtedness
incurred under any revolving credit, letter of credit or working capital
facility) that matures by its terms, or that is renewable at the option of any
obligor thereon to a date, more than one year after the date on which such
Indebtedness is originally incurred.
"GAAP" means generally accepted accounting principles in the United States
set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or in such other
statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, as in effect from time to time.
"Global Security" means a Security that is issued in global form in the
name of Cede & Co. or such other name as may be requested by an authorized
representative of the Depositary, and that contains the text referred to in
footnotes 1 and 2 and the additional schedule referred to in the form of
Security attached hereto as Exhibit A.
"Guarantor" means (i) each Subsidiary of the Company listed on Schedule I
hereto executing this Indenture, (ii) each Subsidiary of the Company that
becomes a guarantor of the Securities pursuant to Section 9.05 hereof, (iii)
each Subsidiary of the Company that executes a supplemental indenture in which
such Subsidiary agrees to be bound by Article 9 hereof and (iv) any Subsidiary
of the Company that is a successor corporation of any Subsidiary of the Company
referred to in clauses (i) through (iii). The term "Guarantor" shall not include
any Subsidiary of the Company referred to in clauses (i) through (iv) that shall
have been released from its obligations under Article 9 pursuant to Section 9.06
hereof.
"Hedging Obligations" of any Person means the net obligations (not the
notional amount) of such Person pursuant to any interest rate swap agreement,
foreign currency exchange agreement, interest rate collar agreement, forward
contract, commodity swap or option agreement, option or futures contract or
other similar agreement or arrangement designed to protect such Person against
fluctuations in interest rates, foreign exchange rates or commodity prices, but
excluding contracts (other than contracts on an exchange) for the actual
purchase or sale of commodities for physical delivery.
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"Holder" means a Person in whose name a Security is registered.
"Indebtedness" of any Person at any date means, without duplication, (i)
all indebtedness of such Person for borrowed money (whether or not the recourse
of the lender is to the whole of the assets of such Person or only to a portion
thereof), (ii) all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (iii) all obligations of such Person in
respect of letters of credit or other similar instruments (or reimbursement
obligations with respect thereto), other than standby letters of credit and
performance bonds obtained by such Person in the ordinary course of business, to
the extent not drawn or, to the extent drawn, if such drawing is reimbursed not
later than the third Business Day following demand for reimbursement, (iv) all
obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except trade payables and accrued expenses incurred in the
ordinary course of business, (v) all Capitalized Lease Obligations of such
Person, (vi) all Indebtedness of others secured by a Lien on any asset of such
Person, whether or not such Indebtedness is assumed by such Person, (vii) all
Indebtedness of others guaranteed by such Person to the extent of such guarantee
and (viii) all Hedging Obligations of such Person.
"Indenture" means this Indenture as amended or supplemented from time to
time.
"Initial Purchasers" means Credit Suisse First Boston Corporation, First
Union Securities, Inc., BNY Capital Markets, Inc., BNP Paribas Securities Corp.,
Credit Lyonnais Securities (USA) Inc., Fleet Securities, Inc. and Xxxxx Fargo
Brokerage, LLC as initial purchasers in the Offering.
"Interest Payment Date" shall have the meaning assigned to such term in the
Securities.
"Issue Date" means the first date on which the Series A Securities are
issued under this Indenture.
"Legal Holiday" means a Saturday, a Sunday or a day on which banking
institutions in any of The City of New York, Dallas, Texas or a place of payment
are authorized or obligated by law, regulation or executive order to remain
closed.
"Lien" means, with respect to any asset, any mortgage, lien, pledge,
charge, security interest or encumbrance of any kind for security purposes in
respect of such asset, whether or not filed, recorded or otherwise perfected
under applicable law. For the purposes of this Indenture, the Company or any
Subsidiary of the Company shall be deemed to own subject to a Lien any asset
which it has acquired or holds subject to the interest of a vendor or lessor
under any conditional sale agreement, Capitalized Lease Obligation or other
title retention agreement relating to such asset.
"Material Subsidiary" means any Subsidiary of the Company whose percentage
(after intercompany eliminations) of the consolidated assets of the Company and
its Subsidiaries exceeds 5% as of the end of the Company's most recently
completed fiscal quarter.
"Net Proceeds" means, with respect to any Sale/Leaseback Transaction
entered into by the Company or any Subsidiary of the Company, the aggregate net
proceeds received by the
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Company or such Subsidiary from such Sale/Leaseback Transaction after payment of
expenses, taxes, commissions and similar amounts incurred in connection
therewith, whether such proceeds are in cash or in property (valued at the fair
market value thereof at the time of receipt, as determined by the Board of
Directors).
"Non-Recourse Indebtedness" means, at any date, the aggregate amount at
such date of Indebtedness of the Company or a Subsidiary of the Company in
respect of which the recourse of the holder of such Indebtedness, whether direct
or indirect and whether contingent or otherwise, is effectively limited to
specified assets, and with respect to which neither the Company nor any of its
Subsidiaries provides any guarantee or similar credit support.
"Offering" means the offering of the Original Securities pursuant to the
Offering Circular.
"Offering Circular" means the Offering Circular of the Company, dated June
5, 2001, relating to the Offering.
"Officer" means the Chairman of the Board, the President, any Vice Chairman
of the Board, any Vice President, the chief financial officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary or any Assistant
Secretary of a Person.
"Officer's Certificate" means a certificate signed by a Person's chief
executive officer, chief financial officer or chief accounting officer.
"Opinion of Counsel" means a written opinion from legal counsel who is
acceptable to the Trustee. Such counsel may be an employee of or counsel to the
Company, a Guarantor or the Trustee.
"Original Securities" has the meaning set forth in Section 2.02 hereof.
"Pari Passu Indebtedness" means any Indebtedness of the Company or any
Guarantor, whether outstanding on the Issue Date or thereafter created, incurred
or assumed, unless, in the case of any particular Indebtedness, the instrument
creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such Indebtedness shall be subordinated in right of
payment to the Securities, or such Guarantor's Guarantee of the Securities, as
the case may be.
"Person" means any individual, corporation, partnership, limited liability
company, joint venture, incorporated or unincorporated association, joint-stock
company, trust, unincorporated organization or government or other agency or
political subdivision thereof or other entity of any kind.
"Redemption Date," when used with respect to any security to be redeemed,
means the date fixed for such redemption by or pursuant to this Indenture.
"Redemption Price" shall have the meaning assigned to such term in the
Securities.
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"Registration Rights Agreement" means (a) that certain Registration Rights
Agreement, dated June 5, 2001, among the Company, the Guarantors party thereto
and the Initial Purchasers relating to the Original Securities and (b) any
similar agreements that the Company and the Guarantors may enter into in
relation to any other Series A Securities.
"Sale/Leaseback Transaction" means any arrangement with any Person
providing for the leasing by the Company or any Subsidiary of the Company, for a
period of more than three years, of any real or tangible personal property,
which property has been or is to be sold or transferred by the Company or such
Subsidiary to such Person in contemplation of such leasing.
"SEC" means the Securities and Exchange Commission.
"Securities" means the Series A Securities and the Series B Securities
treated as a single class of Securities. For purposes of this Indenture, the
term "Securities" shall, except where the context otherwise requires, include
the Guarantees.
"Securities Act" means the Securities Act of 1933, as amended, and any
successor statute.
"Security Custodian" means the Trustee, as custodian with respect to the
Securities in global form, or any successor entity thereto.
"Series A Securities" means the Company's 7 1/8% Series A Notes due 2011 to
be issued pursuant to this Indenture.
"Series B Securities" means the Company's 7 1/8% Series B Notes due 2011 to
be issued pursuant to this Indenture in the Exchange Offer.
"Subsidiary" of any Person means (i) any corporation of which at least a
majority of the aggregate voting power of all classes of the Common Equity is
owned by such Person directly or through one or more other Subsidiaries of such
Person, and (ii) any entity other than a corporation at least a majority of the
Common Equity of which is owned by such Person directly or through one or more
other Subsidiaries of such Person.
"TIA" means the Trust Indenture Act of 1939, as amended (15 U.S.C. Sections
77aaa-77bbbb), as in effect on the Issue Date.
"Transfer Restricted Securities" shall have the meaning assigned to such
term in the Registration Rights Agreement.
"Trust Officer" means any officer or assistant officer of the Trustee
assigned by the Trustee to administer its corporate trust matters.
"Trustee" means the party named as such above until a successor replaces it
in accordance with the applicable provisions of this Indenture and thereafter
means the successor serving hereunder.
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"U.S. Government Obligations" means direct obligations of the United States
of America for the payment of which the full faith and credit of the United
States of America is pledged.
SECTION 1.02 Other Definitions.
Defined
Term in Section
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"Authorized Agent"....................... 9.07
"Custodian"............................. 5.01
"DTC"................................... 2.03
"Event of Default"...................... 5.01
"Funding Guarantor"..................... 9.03
"Guarantees"............................ 9.01(a)
"Judgment Currency"..................... 9.09
"Non-U.S. Guarantor".................... 9.07
"Paying Agent".......................... 2.03
"Registrar"............................. 2.03
"Successor"............................. 4.01
SECTION 1.03 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the provision is
incorporated by reference in and made a part of this Indenture. The following
TIA terms used in this Indenture have the following meanings:
"Commission" means the SEC.
"indenture securities" means the Securities.
"indenture security holder" means a Holder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the Trustee.
"obligor" on the indenture securities means the Company and each Guarantor.
All terms used in this Indenture that are defined by the TIA, defined by a
TIA reference to another statute or defined by an SEC rule under the TIA have
the meanings so assigned to them.
SECTION 1.04 Rules of Construction.
Unless the context otherwise requires:
(i) a term has the meaning assigned to it;
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(ii) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP;
(iii) "or" is not exclusive;
(iv) words in the singular include the plural, and in the plural include
the singular; and
(v) provisions apply to successive events and transactions.
ARTICLE 2
THE SECURITIES
SECTION 2.01 Form and Dating.
The Securities, the notations thereon relating to the Guarantees and the
Trustee's certificate of authentication shall be substantially in the form of
Exhibit A to this Indenture, the terms of which are hereby incorporated into
this Indenture. The Securities may have notations, legends or endorsements
required by law, securities exchange rule, the Company's certificate of
incorporation or bylaws, agreements to which the Company is subject, if any, or
usage (provided that any such notation, legend or endorsement is in a form
acceptable to the Company). Each Security shall be dated the date of its
authentication. The Securities shall be in registered form without coupons and
only in denominations of $1,000 and any integral multiples thereof. The terms
and provisions contained in the Securities shall constitute, and are hereby
expressly made, a part of this Indenture and to the extent applicable, the
Company, the Guarantors and the Trustee, by their execution and delivery of this
Indenture, expressly agree to such terms and provisions and to be bound thereby.
The Securities will initially be issued in the form of one or more global
Securities, substantially in the form of Exhibit A attached hereto (including
footnotes 1 and 2 thereto). A Global Security shall represent such of the
outstanding Securities as shall be specified therein and shall provide that it
shall represent the aggregate amount of outstanding Securities from time to time
endorsed thereon and that the aggregate amount of outstanding Securities
represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges, repurchases and redemptions. Any endorsement
of Global Securities to reflect the amount of any increase or decrease in the
amount of outstanding Securities represented thereby shall be made by the
Trustee in accordance with instructions given by the Holder thereof as required
by Section 2.06 hereof.
SECTION 2.02 Execution and Authentication.
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One Officer of the Company shall sign the Securities on behalf of the
Company, and one Officer of each Guarantor shall sign the notation on the
Securities relating to the Guarantees on behalf of such Guarantor, in each case
by manual or facsimile signature. The Company's seal may be impressed, affixed,
imprinted or reproduced on the Securities and may be in facsimile form, but no
seal shall be required.
If an Officer of the Company or any Guarantor whose signature is on a
Security no longer holds that office at the time the Security is authenticated,
the Security shall be valid nevertheless.
A Security shall not be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose until authenticated by the manual signature
of an authorized signatory of the Trustee, which signature shall be conclusive
evidence that the Security has been authenticated under this Indenture.
The Trustee shall authenticate (i) Series A Securities for original issue
on the Issue Date in the aggregate principal amount of $350,000,000 (the
"Original Securities"), (ii) additional Series A Securities for original issue
from time to time after the Issue Date in such principal amounts as may be set
forth in a written order of the Company described in this sentence and (iii)
Series B Securities for original issue, pursuant to an Exchange Offer for a like
principal amount of Series A Securities, in each case, upon a written order of
the Company signed by one Officer of the Company. Such order shall specify (a)
the amount of the Securities to be authenticated and the date of original issue
thereof, (b) to what extent, if any, such Securities will be represented by a
Global Security and one or more Definitive Securities and (c) whether the
Securities are Series A Securities or Series B Securities. The aggregate
principal amount of Securities outstanding at any time may not exceed
$350,000,000 plus such additional principal amounts as may be issued pursuant to
clause (ii) of this paragraph, except as provided in Section 2.07 hereof.
The Trustee may appoint an authenticating agent acceptable to the Company
to authenticate Securities. Unless limited by the terms of such appointment, an
authenticating agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with the Company, the Guarantors or an Affiliate of any of them.
The Series A Securities and the Series B Securities shall be considered
collectively to be a single class for all purposes of this Indenture, including,
without limitations waivers, amendments, redemptions and offers to purchase.
SECTION 2.03 Registrar and Paying Agent.
The Company shall maintain an office or agency where Securities may be
presented for registration of transfer or exchange ("Registrar") and an office
or agency where Securities may be presented for payment ("Paying Agent"). The
Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or
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more additional paying agents. The term "Registrar" includes any co-registrar
and the term "Paying Agent" includes any additional paying agent.
The Company shall enter into an appropriate agency agreement with any
Registrar or Paying Agent not a party to this Indenture. The agreement shall
implement the provisions of this Indenture that relate to such Agent. The
Company shall notify the Trustee of the name and address of any Agent not a
party to this Indenture. The Company may change any Paying Agent or Registrar
without notice to any Holder. If the Company fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such. The
Company or any of its Subsidiaries may act as Paying Agent or Registrar.
The Company initially appoints the Trustee as Registrar and Paying Agent.
The Company initially appoints The Depository Trust Company ("DTC") to act
as Depositary with respect each Global Security.
SECTION 2.04 Paying Agent to Hold Money in Trust.
The Company shall require each Paying Agent other than the Trustee to agree
in writing that the Paying Agent will hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal
of or premium, if any, or interest on the Securities, whether such money shall
have been paid to it by the Company or any Guarantor, and will notify the
Trustee of any default by the Company or any Guarantor in making any such
payment. While any such default continues, the Trustee may require a Paying
Agent to pay all money held by it to the Trustee and to account for any funds
disbursed. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee and to account for any funds disbursed. Upon payment
over to the Trustee and upon accounting for any funds disbursed, the Paying
Agent (if other than the Company or a Subsidiary of the Company) shall have no
further liability for the money. If the Company or a Subsidiary of the Company
acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of the Holders all money held by it as Paying Agent.
SECTION 2.05 Holder Lists.
The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders and shall otherwise comply with TIA Section 312(a). If the Trustee is
not the Registrar, the Company shall furnish to the Trustee at least seven
Business Days before each Interest Payment Date, and at such other times as the
Trustee may request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of Holders, and the
Company shall otherwise comply with TIA Section 312(a).
SECTION 2.06 Transfer and Exchange.
(a) Transfer and Exchange of Definitive Securities. When Definitive
Securities are presented to the Registrar with the request:
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(x) to register the transfer of the Definitive Securities, or
(y) to exchange such Definitive Securities for an equal principal
amount of Definitive Securities of the same series and other
authorized denominations,
the Registrar shall register the transfer or make the exchange as requested if
its requirements for such transactions are met; provided, however, that the
Definitive Securities presented or surrendered for registration of transfer or
exchange:
(i) shall be duly endorsed or accompanied by a written instruction of
transfer in form satisfactory to the Registrar duly executed by
the Holder thereof or by his attorney, duly authorized in
writing; and
(ii) in the case of Transfer Restricted Securities that are Definitive
Securities, shall be accompanied by the following additional
information and documents, as applicable, upon which the
Registrar may conclusively rely:
(A) if such Transfer Restricted Securities are being delivered to the
Registrar by a Holder for registration in the name of such
Holder, without transfer, a certification from such Holder to
that effect (in substantially the form of Exhibit B hereto); or
(B) if such Transfer Restricted Securities are being transferred (1)
to a "qualified institutional buyer" (as defined in Rule 144A
under the Securities Act) in accordance with Rule 144A under the
Securities Act or (2) pursuant to an exemption from registration
in accordance with Rule 144 under the Securities Act (and based
upon an opinion of counsel if the Company so requests) or (3)
pursuant to an effective registration statement under the
Securities Act, a certification to that effect from such Holder
(in substantially the form of Exhibit B hereto); or
(C) if such Transfer Restricted Securities are being transferred to
an institutional "accredited investor," within the meaning of
Rule 501(a)(1), (2), (3) or (7) under the Securities Act pursuant
to a private placement exemption from the registration
requirements of the Securities Act (and based upon an opinion of
counsel if the Company so requests), a certification to that
effect from such Holder (in substantially the form of Exhibit B
hereto) and a certification from the applicable transferee (in
substantially the form of Exhibit C hereto);
(D) if such Transfer Restricted Securities are being transferred
pursuant to an exemption from registration in accordance with
Rule 904 under the Securities Act (and based upon an opinion of
counsel if the Company so requests), certifications to that
effect from such Holder (in substantially the form of Exhibits B
and D hereto); or
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(E) if such Transfer Restricted Securities are being transferred in
reliance on another exemption from the registration requirements
of the Securities Act (and based upon an opinion of counsel if
the Company so requests), a certification to that effect from
such Holder (in substantially the form of Exhibit B hereto).
(b) Restriction on Transfer of a Definitive Security for a Beneficial
Interest in a Global Security. A Definitive Security may not be exchanged for a
beneficial interest in a Global Security of the same series except upon
satisfaction of the requirements set forth below. Upon receipt by the Trustee
of a Definitive Security, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Trustee, together with:
(i) if such Definitive Security is a Transfer Restricted Security,
certification, substantially in the form of Exhibit B hereto,
upon which the Trustee may conclusively rely, that such
Definitive Security is being transferred to a "qualified
institutional buyer" (as defined in Rule 144A under the
Securities Act) in accordance with Rule 144A under the Securities
Act; or
(ii) if such Definitive Security is a Transfer Restricted Security and
is being transferred pursuant to an exemption from registration
in accordance with Rule 904 under the Securities Act (and based
upon an opinion of counsel if the Company so requests),
certifications to that effect from such Holder (in substantially
the form of Exhibits B and D hereto); and
(iii) whether or not such Definitive Security is a Transfer Restricted
Security, written instructions directing the Trustee to make, or
direct the Security Custodian to make, an endorsement on the
Global Security to reflect an increase in the aggregate principal
amount of the Securities represented by the Global Security;
then the Trustee shall cancel such Definitive Security in accordance with
Section 2.11 hereof and cause, or direct the Security Custodian to cause, in
accordance with the standing instructions and procedures existing between the
Depositary and the Security Custodian, the aggregate principal amount of
Securities represented by the Global Security to be increased accordingly. If no
Global Securities are then outstanding, the Company shall issue and the Trustee
shall authenticate a new Global Security in the appropriate principal amount.
(c) Transfer and Exchange of Global Securities. The transfer and exchange of
Global Securities or beneficial interests therein shall be effected through the
Depositary, in accordance with this Indenture (including the restrictions on
transfer set forth herein) and the procedures of the Depositary therefor, which
shall include restrictions on transfer comparable to those set forth herein to
the extent required by the Securities Act.
(d) Transfer of a Beneficial Interest in a Global Security for a Definitive
Security.
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(i) Any Person having a beneficial interest in a Global Security may
upon request exchange such beneficial interest for a Definitive
Security of the same series. Upon receipt by the Trustee of
written instructions or such other form of instructions as is
customary for the Depositary, from the Depositary or its nominee
on behalf of any Person having a beneficial interest in a Global
Security, and in the case of a Transfer Restricted Security, the
following additional information and documents (all of which may
be submitted by facsimile), upon which the Trustee may
conclusively rely:
(A) if such beneficial interest is being transferred to the Person
designated by the Depositary as being the beneficial owner, a
certification from such Person to that effect (in substantially
the form of Exhibit B hereto); or
(B) if such beneficial interest is being transferred (1) to a
"qualified institutional buyer" (as defined in Rule 144A under
the Securities Act) in accordance with Rule 144A under the
Securities Act or (2) pursuant to an exemption from registration
in accordance with Rule 144 under the Securities Act (and based
upon an opinion of counsel if the Company so requests) or (3)
pursuant to an effective registration statement under the
Securities Act, a certification to that effect from the
transferor (in substantially the form of Exhibit B hereto); or
(C) if such beneficial interest is being transferred to an
institutional "accredited investor," within the meaning of Rule
501(a)(1), (2), (3) or (7) under the Securities Act pursuant to a
private placement exemption from the registration requirements of
the Securities Act (and based upon an opinion of counsel if the
Company so requests), a certification to that effect from such
transferor (in substantially the form of Exhibit B hereto) and a
certification from the applicable transferee (in substantially
the form of Exhibit C hereto); or
(D) if such beneficial interest is being transferred pursuant to an
exemption from registration in accordance with Rule 904 under the
Securities Act (and based upon an opinion of counsel if the
Company so requests), certifications to that effect from such
transferor (in substantially the form of Exhibits B and D
hereto); or
(E) if such beneficial interest is being transferred in reliance on
another exemption from the registration requirements of the
Securities Act (and based upon an opinion of counsel if the
Company so requests), a certification to that effect from such
transferor (in substantially the form of Exhibit B hereto);
then the Trustee or the Security Custodian, at the direction of the Trustee,
shall, in accordance with the standing instructions and procedures existing
between the Depositary and the Security
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Custodian, cause the aggregate principal amount of Global Securities to be
reduced accordingly and, following such reduction, the Company shall execute and
the Trustee shall authenticate and deliver to the transferee a Definitive
Security of the same series and in the appropriate principal amount.
(ii) Definitive Securities issued in exchange for a beneficial
interest in a Global Security pursuant to this Section 2.06(d)
shall be registered in such names and in such authorized
denominations as the Depositary, pursuant to instructions from
its direct or indirect participants or otherwise, shall instruct
the Trustee. The Trustee shall deliver such Definitive
Securities to the Persons in whose names such Securities are so
registered.
(e) Restrictions on Transfer and Exchange of Global Securities.
Notwithstanding any other provisions of this Indenture (other than the
provisions set forth in subsection (f) of this Section 2.06), a Global Security
may not be transferred as a whole except by the Depositary to a nominee of the
Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary.
(f) Authentication of Definitive Securities in Absence of Depositary. If at
any time:
(i) the Depositary for the Securities notifies the Company that the
Depositary is unwilling or unable to continue as Depositary for
the Global Securities and a successor Depositary for the Global
Securities 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
Securities under this Indenture,
then the Company will execute, and the Trustee will authenticate and deliver
Definitive Securities of the same series as such Global Securities, in an
aggregate principal amount equal to the principal amount of the Global
Securities, in exchange for such Global Securities and registered in such names
as the Depositary shall instruct the Trustee or the Company in writing.
(g) Legends.
(i) Except as permitted by the following paragraph (ii), each
Security certificate evidencing the Global Securities and the
Definitive Securities (and all Securities issued in exchange
therefor or substitution thereof) shall bear a legend, until the
expiration of the applicable holding period with respect to the
Transfer Restricted Securities set forth in Rule 144(k) under the
Securities Act, in substantially the following form:
"THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (The
"SECURITIES ACT"), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH
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REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS
SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY
RULE 144A THEREUNDER.
THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1)
INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF
CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER
IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE
RESTRICTIONS REFERRED TO IN (A) ABOVE."
Each Security certificate evidencing the Global Securities also shall bear
the paragraph referred to in footnote 2 in the form of Security attached hereto
as Exhibit A.
(ii) Upon any sale or transfer of a Transfer Restricted Security
(including any Transfer Restricted Security represented by a
Global Security) pursuant to Rule 144 under the Securities Act or
an effective registration statement under the Securities Act:
(A) in the case of any Transfer Restricted Security that is a
Definitive Security, the Registrar shall permit the Holder
thereof to exchange such Transfer Restricted Security for a
Definitive Security that does not bear the legend set forth in
(i) above and rescind any restriction on the transfer of such
Transfer Restricted Security; and
(B) in the case of any Transfer Restricted Security represented by a
Global Security, such Transfer Restricted Security shall not be
required to bear the legend set forth in (i) above if all other
interests in such Global Security have been or are concurrently
being sold or transferred pursuant to Rule 144 under the
Securities Act or pursuant to an effective registration statement
under the Securities Act, but such Transfer Restricted Security
shall continue to be subject to the provisions of Section 2.06(c)
hereof; provided, however, that with respect to any request for
an exchange of a Transfer Restricted Security that is represented
by a Global Security for a Definitive Security that does not bear
a legend set forth in (i) above, which request is made in
reliance upon Rule 144 under the Securities Act, the
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Holder thereof shall certify in writing to the Registrar that
such request is being made pursuant to Rule 144 under the
Securities Act (such certification to be substantially in the
form of Exhibit B hereto).
(iii) Notwithstanding the foregoing, upon consummation of an Exchange
Offer, the Company shall issue and, upon receipt of an
authentication order in accordance with Section 2.02 hereof,
the Trustee shall authenticate Series B Securities in exchange
for Series A Securities accepted for exchange in the Exchange
Offer, which Series B Securities shall not bear the legend set
forth in (i) above, and the Registrar shall rescind any
restriction on the transfer of such Securities, in each case
unless the Holder of such Series A Securities is either (A) a
broker-dealer, (B) a Person participating in the distribution
of the Series A Securities or (C) a Person who is an affiliate
(as defined in Rule 144 under the Securities Act) of the
Company. The Company shall identify to the Trustee such Holders
of the Securities in a written certification signed by an
Officer of the Company and, absent certification from the
Company to such effect, the Trustee shall assume that there are
no such Holders.
(h) Cancellation and/or Adjustment of Global Security. At such time as all
beneficial interests in a Global Security have either been exchanged for
Definitive Securities, redeemed, repurchased or canceled, such Global Security
shall be returned to or retained and canceled by the Trustee. At any time prior
to such cancellation, if any beneficial interest in a Global Security is
exchanged for Definitive Securities, redeemed, repurchased or canceled, the
principal amount of Securities represented by such Global Security shall be
reduced and an endorsement shall be made on such Global Security, by the Trustee
or the Security Custodian, at the direction of the Trustee to reflect such
reduction.
(i) General Provisions with respect to Transfer and Exchanges.
(i) To permit registrations of transfers and exchanges, the Company
shall execute and the Trustee shall authenticate Definitive
Securities and Global Securities at the Registrar's request.
(ii) No service charge shall be made to a Holder for any
registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require
payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith
(other than such transfer tax or similar governmental charge
payable upon exchanges pursuant to Section 8.05 hereof).
(iii) The Trustee shall authenticate Definitive Securities and Global
Securities in accordance with the provisions of Section 2.02
hereof.
(iv) Notwithstanding any other provisions of this Indenture to the
contrary, the Company shall not be required to register the
transfer or exchange of a
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Security between the record date and the next succeeding Interest
Payment Date.
(v) Neither the Company nor the Trustee will have any responsibility
or liability for any aspect of the records relating to, or
payments made on account of, Securities by the Depositary, or for
maintaining, supervising or reviewing any records of the
Depositary relating to such Securities. Neither the Company nor
the Trustee shall be liable for any delay by the related Global
Security Holder or the Depositary in identifying the beneficial
owners of the related Securities and each such Person may
conclusively rely on, and shall be protected in relying on,
instructions from such Global Security Holder or the Depositary
for all purposes (including with respect to the registration and
delivery, and the respective principal amounts, of the Securities
to be issued).
SECTION 2.07 Replacement Securities.
If any mutilated Security is surrendered to the Trustee, or the Company and
the Trustee receive evidence to their satisfaction of the destruction, loss or
theft of any Security, the Company shall issue and the Trustee shall
authenticate a replacement Security if the Trustee's requirements are met. If
required by the Trustee, the Company or any Guarantor, such Holder must furnish
an indemnity bond that is sufficient in the judgment of the Trustee, the Company
and the Guarantors to protect the Company, the Guarantors, the Trustee, any
Agent or any authenticating agent from any loss which any of them may suffer if
a Security is replaced. The Company, the Trustee and the Guarantors may charge
for their expenses in replacing a Security.
Every replacement Security is an additional obligation of the Company and
the Guarantors.
SECTION 2.08 Outstanding Securities.
The Securities outstanding at any time are all the Securities authenticated
by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest in a Global Security effected by
the Trustee hereunder and those described in this Section 2.08 as not
outstanding.
If a Security is replaced pursuant to Section 2.07 hereof, it ceases to be
outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.
If the principal amount of any Security is considered paid under Section
3.01 hereof, it ceases to be outstanding and interest on it ceases to accrue.
A Security does not cease to be outstanding because the Company, a
Guarantor or an Affiliate of any of them holds the Security.
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SECTION 2.09 Treasury Securities.
In determining whether the Holders of the required principal amount of
Securities have concurred in any direction, waiver or consent, Securities owned
by the Company, any Guarantor or an Affiliate of any of them shall be
disregarded, except that for the purpose of determining whether the Trustee
shall be protected in relying on any such direction, waiver or consent, only
Securities which the Trustee knows are so owned shall be so disregarded.
SECTION 2.10 Temporary Securities.
Until Definitive Securities are ready for delivery, the Company may prepare
and the Trustee shall authenticate temporary Securities. Temporary Securities
shall be substantially in the form of Definitive Securities, but may have
variations that the Company considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall
authenticate definitive Securities in exchange for temporary Securities. Until
so exchanged, the temporary Securities shall in all respects be entitled to the
same benefits under this Indenture as Definitive Securities.
SECTION 2.11 Cancellation.
The Company or any Guarantor at any time may deliver Securities to the
Trustee for cancellation. The Registrar and the Paying Agent shall forward to
the Trustee any Securities surrendered to them for registration of transfer,
exchange or payment. The Trustee shall cancel all Securities surrendered for
registration of transfer, exchange, payment, replacement or cancellation. Unless
the Company shall direct that canceled Securities be returned to it, after
written notice to the Company all canceled Securities held by the Trustee shall
be disposed of in accordance with the usual disposal procedures of the Trustee,
and the Trustee shall maintain a record of their disposal. The Company may not
issue new Securities to replace Securities that have been paid or that have been
delivered to the Trustee for cancellation.
SECTION 2.12 Defaulted Interest.
If the Company defaults in a payment of interest on the Securities, it
shall pay the defaulted interest in any lawful manner plus, to the extent
lawful, interest on the defaulted interest, in each case at the rate provided in
the Securities and in Section 3.01 hereof. The Company may pay the defaulted
interest to the Persons who are Holders on a subsequent special record date. At
least 15 days before any special record date, the Company (or the Trustee, in
the name of and at the expense of the Company) shall mail to Holders a notice
that states the special record date, the related payment date and the amount of
such interest to be paid.
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SECTION 2.13 Persons Deemed Owners.
The Company, the Trustee, any Agent and any authenticating agent may treat
the Person in whose name any Security is registered as the owner of such
Security for the purpose of receiving payments of principal of or premium, if
any, or interest on such Security and for all other purposes. None of the
Company, the Trustee, any Agent or any authenticating agent shall be affected by
any notice to the contrary.
ARTICLE 3
COVENANTS
SECTION 3.01 Payment of Securities.
The Company shall pay the principal of and premium, if any, and interest
(including additional interest required by the Registration Rights Agreement
referred to in Section 3.11 hereof) on the Securities on the dates and in the
manner provided in the Securities and in this Indenture. Principal, premium, if
any, and interest shall be considered paid on the date due if the Paying Agent,
other than the Company or a Subsidiary of the Company, holds by 11:00 a.m.,
Eastern time, on that date money deposited by the Company designated for and
sufficient to pay all principal, premium and interest then due. Payments to
Holders of principal, premium, if any, and interest shall be paid by wire
transfer of immediately available funds to the accounts specified by the Holders
thereof or, if no such account is specified (or if a Holder holds Securities in
an aggregate principal amount of less than $1,000,000), by mailing a check to
each such Holder's registered address.
The Company shall pay interest (including post-petition interest in any
proceeding under any Bankruptcy Law) on overdue principal, and premium, if any,
at a rate equal to the then applicable interest rate on the Securities to the
extent lawful; and 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 period) at the same rate to the extent
lawful.
SECTION 3.02 Maintenance of Office or Agency.
The Company will maintain, in the Borough of Manhattan, The City of New
York, an office or agency (which may be an office of the Trustee, the Registrar
or the Paying Agent) where Securities may be presented for registration of
transfer or exchange, where Securities may be presented for payment and where
notices and demands to or upon the Company in respect of the Securities and this
Indenture may be served. Unless otherwise designated by the Company by written
notice to the Trustee, such office or agency shall be the office of the Trustee,
in The City of New York which, on the date hereof, is located at Xxx Xxxxx Xxxxx
Xxxxxx, Xxxxx 0000, Xxx Xxxx, Xxx Xxxx 00000. The Company will give prompt
written notice to the Trustee of the location, and any change in the location,
of such office or agency. If at any time the Company shall fail to maintain any
such required office or agency or shall fail to furnish the Trustee with
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the address thereof, such presentations, surrenders, notices and demands may be
made or served at the Corporate Trust Office of the Trustee.
The Company may also from time to time designate one or more other offices
or agencies where the Securities may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the
Company of its obligation to maintain an office or agency in the Borough of
Manhattan, The City of New York for such purposes. The Company will give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the location of any such other office or agency. The Company hereby
designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.03 hereof.
SECTION 3.03 SEC Reports; Financial Statements.
(a) The Company shall file with the Trustee, within 15 days after it files
the same with the SEC, copies of the annual reports and the information,
documents and other reports (or copies of such portions of any of the foregoing
as the SEC may by rules and regulations prescribe) that the Company is required
to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If
the Company is not subject to the requirements of such Section 13 or 15(d), the
Company shall file with the Trustee, within 15 days after it would have been
required to file the same with the SEC, financial statements, including any
notes thereto (and with respect to annual reports, an auditors' report by a firm
of established national reputation), and a "Management's Discussion and Analysis
of Financial Condition and Results of Operations," both comparable to that which
the Company would have been required to include in such annual reports,
information, documents or other reports if the Company had been subject to the
requirements of such Section 13 or 15(d). The Company shall also comply with
the provisions of TIA Section 314(a).
(b) If the Company is required to furnish annual or quarterly reports to
its stockholders pursuant to the Exchange Act, the Company shall cause any
annual report furnished to its stockholders generally and any quarterly or other
financial reports furnished by it to its stockholders generally to be filed with
the Trustee and mailed to the Holders at their addresses appearing in the
register of Securities maintained by the Registrar. If the Company is not
required to furnish annual or quarterly reports to its stockholders pursuant to
the Exchange Act, the Company shall cause its financial statements referred to
in Section 3.03(a) hereof, including any notes thereto (and with respect to
annual reports, an auditors' report by a firm of established national
reputation), and a "Management's Discussion and Analysis of Financial Condition
and Results of Operations" to be so mailed to the Holders within 90 days after
the end of each of the Company's fiscal years and within 60 days after the end
of each of the Company's first three fiscal quarters.
(c) For so long as any Transfer Restricted Securities remain outstanding,
the Company shall furnish to all Holders and prospective purchasers of the
Securities designated by the Holders of Transfer Restricted Securities, promptly
upon their request, any information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act.
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(d) The Company shall provide the Trustee with a sufficient number of
copies of all reports and other documents and information that the Trustee may
be required to deliver to Holders under this Section 3.03.
SECTION 3.04 Compliance Certificate.
(a) The Company shall deliver to the Trustee, within 120 days after the
end of each fiscal year of the Company, a statement signed by an Officer of the
Company, which need not constitute an Officer's Certificate, complying with TIA
Section 314(a)(4) and stating that in the course of performance by the signing
Officer of the Company of his or her duties as such Officer of the Company he or
she would normally obtain knowledge of the keeping, observing, performing and
fulfilling by the Company of its obligations under this Indenture, and further
stating, as to such Officer signing such statement, that to the best of his or
her knowledge the Company and each Guarantor has kept, observed, performed and
fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which such Officer may have
knowledge and what action the Company or such Guarantor, as the case may be, is
taking or proposes to take with respect thereto).
(b) The Company and the Guarantors shall, so long as any of the Securities
are outstanding, deliver to the Trustee, forthwith upon any Officer of the
Company or any Guarantor becoming aware of any Default or Event of Default under
this Indenture, an Officer's Certificate specifying such Default or Event of
Default and what action the Company or such Guarantor is taking or proposes to
take with respect thereto.
SECTION 3.05 Corporate Existence.
Subject to Article 4 hereof, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect its corporate
existence and the corporate, partnership and other existence of each of its
Subsidiaries and all rights (charter and statutory) and franchises of the
Company and its Subsidiaries, provided that the Company shall not be required to
preserve the corporate, partnership or limited liability company existence of
any Subsidiary of the Company or any such right or franchise if the preservation
thereof is no longer desirable in the conduct of the business of the Company and
its Subsidiaries taken as a whole and that the loss thereof would not have a
material adverse effect on the business, prospects, assets or financial
condition of the Company and its Subsidiaries taken as a whole and would not
have any material adverse effect on the payment and performance of the
obligations of the Company and the Guarantors under the Securities and this
Indenture.
SECTION 3.06 Intentionally omitted.
SECTION 3.07 Payment of Taxes and Other Claims.
The Company will pay or discharge or cause to be paid or discharged, before
the same shall become delinquent, (i) all material taxes, assessments and
governmental charges levied or
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imposed upon the Company or any of its Subsidiaries or upon the income, profits
or property of the Company or any of its Subsidiaries, and (ii) all material
lawful claims for labor, materials and supplies which, if unpaid, might by law
become a Lien upon the property of the Company or any of its Subsidiaries;
provided that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith, and, if necessary,
by appropriate proceedings.
SECTION 3.08 Waiver of Stay, Extension or Usury Laws.
The Company and each Guarantor covenant (to the extent that they may
lawfully do so) that they will not at any time insist upon, or plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury law or other law, which would prohibit or forgive the
Company or any Guarantor from paying all or any portion of the principal of, or
premium, if any, or interest on the Securities 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 they may
lawfully do so) the Company and each Guarantor hereby expressly waive all
benefit or advantage of any such law, and covenant that they will not hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
had been enacted.
SECTION 3.09 Limitation on Sale/Leaseback Transactions.
The Company shall not, and shall not permit any Subsidiary of the Company
to, enter into any Sale/Leaseback Transaction with any Person (other than the
Company or a Subsidiary of the Company) unless:
(a) the Company or such Subsidiary would be entitled to incur
Indebtedness, in a principal amount equal to the Attributable Indebtedness with
respect to such Sale/Leaseback Transaction, secured by a Lien on the property
subject to such Sale/Leaseback Transaction pursuant to Section 3.10 hereof
without equally and ratably securing the Securities pursuant to such Section;
(b) after the Issue Date and within a period commencing six months prior
to the consummation of such Sale/Leaseback Transaction and ending six months
after the consummation thereof, the Company or such Subsidiary shall have
expended for property used or to be used in the ordinary course of business of
the Company and its Subsidiaries an amount equal to all or a portion of the Net
Proceeds of such Sale/Leaseback Transaction and the Company shall have elected
to designate such amount as a credit against such Sale/Leaseback Transaction
(with any such amount not being so designated to be applied as set forth in
clause (c) below); or
(c) the Company, during the 12-month period after the effective date of
such Sale/Leaseback Transaction, shall have applied to the voluntary defeasance
or retirement of Securities or any Pari Passu Indebtedness an amount equal to
the greater of the Net Proceeds of the sale or transfer of the property leased
in such Sale/Leaseback Transaction and the fair value, as determined by the
Board of Directors, of such property at the time of entering into such
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Sale/Leaseback Transaction (in either case adjusted to reflect the remaining
term of the lease and any amount expended by the Company as set forth in clause
(b) above), less an amount equal to the principal amount of Securities and Pari
Passu Indebtedness voluntarily defeased or retired by the Company within such
12-month period and not designated as a credit against any other Sale/Leaseback
Transaction entered into by the Company or any Subsidiary of the Company during
such period.
SECTION 3.10 Limitation on Liens.
The Company shall not, and shall not permit any Subsidiary of the Company
to, issue, assume or guarantee any Indebtedness for borrowed money secured by
any Lien on any property (real or personal) now owned or hereafter acquired by
the Company or such Subsidiary without providing for all Securities then or
thereafter outstanding to be secured equally and ratably with such Indebtedness
for so long as such Indebtedness shall be so secured. Notwithstanding the
foregoing, the Company or any Subsidiary of the Company may, without so securing
the Securities, issue, assume or guarantee Indebtedness for borrowed money
secured by the following Liens:
(a) Liens existing on the Issue Date or provided for under the terms of
agreements existing on the Issue Date (including, without limitation, the Lien
provided for pursuant to Section 6.07 hereof);
(b) Liens on any property (real or personal) securing (i) all or any
portion of the cost of acquiring, constructing, developing, altering, expanding,
improving or repairing such property or any assets or improvements (real or
personal) used or to be used in connection with such property or (ii)
Indebtedness incurred by the Company or any Subsidiary of the Company prior to
or within one year after the later of the acquisition, the completion of
construction, development, alteration, expansion, improvement or repair of any
property or the commencement of commercial operation thereof, which Indebtedness
is incurred for the purpose of financing all or any part of the purchase price
thereof or construction, development, alteration, expansion or improvements or
repairs thereon;
(c) Liens securing Indebtedness owed by a Subsidiary of the Company (or
the Company) to the Company or to any other Subsidiary of the Company;
(d) Liens on the property of any Person existing at the time the Company
or any of its Subsidiaries acquires the property or the Person owning such
property (including any acquisition by means of a merger or consolidation with
the Company or any of its Subsidiaries) and not incurred as a result of (or in
connection with or in anticipation of) such acquisition of such property or such
Person, provided that such Liens do not extend to or cover any property or
assets of the Company or any of its Subsidiaries other than the property
encumbered at the time of such acquisition (plus any improvements or accessions
thereto) and do not secure Indebtedness for borrowed money with a principal
amount in excess of the principal amount outstanding at such time;
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(e) Liens on any property securing (i) Indebtedness incurred in connection
with the construction, installation or financing of pollution control or
abatement facilities or other forms of industrial revenue bond financing or (ii)
Indebtedness issued or guaranteed by the United States or any State thereof or
any department, agency or instrumentality of either;
(f) any Lien extending, renewing or replacing (or successive extensions,
renewals or replacements of) any Lien of any type permitted under clause (a),
(b), (d) or (e) above, provided that such Lien extends to or covers only the
property that is subject to the Lien being extended, renewed or replaced (plus
any improvements or accessions thereto) and that the principal amount of the
Indebtedness secured thereby shall not exceed the principal amount of
Indebtedness so secured at the time of such extension, renewal or replacement;
or
(g) Liens (exclusive of any Lien of any type otherwise permitted under
clauses (a) through (f) above) securing Indebtedness for borrowed money of the
Company or any Subsidiary of the Company in an aggregate principal amount which,
together with the aggregate amount of Attributable Indebtedness deemed to be
outstanding in respect of all Sale/Leaseback Transactions entered into pursuant
to clause (a) of Section 3.09 hereof (exclusive of any such Sale/Leaseback
Transactions otherwise permitted under clauses (a) through (f) above), does not
at the time such Indebtedness is incurred exceed 15% of the aggregate amount of
the assets of the Company and its Subsidiaries, on a consolidated basis, after
deducting therefrom all current liabilities, as calculated on the Company's
consolidated balance sheet as of a date within 150 days prior to the date of
determination.
The following types of transactions will not be prohibited or otherwise
limited by the foregoing covenant: (i) the sale, granting of Liens with respect
to, or other transfer of, crude oil, natural gas or other minerals in place for
a period of time until, or in an amount such that, the transferee will realize
therefrom a specified amount (however determined) of money or of such crude oil,
natural gas or other minerals; (ii) the sale or other transfer of any other
interest in property of the character commonly referred to as a production
payment, overriding royalty, forward sale or similar interest; (iii) the
entering into of Hedging Obligations or the granting of Liens to secure Hedging
Obligations (although Liens securing any indebtedness for borrowed money that is
the subject of any such Hedging Obligation shall be subject to the foregoing
covenant unless permitted under clauses (a) through (g) above); and (iv) the
granting of Liens required by any contract or statute in order to permit the
Company or any Subsidiary of the Company to perform any contract or subcontract
made by it with or at the request of the United States or any State thereof or
any department, agency or instrumentality of either, or to secure partial,
progress, advance or other payments to the Company or any Subsidiary of the
Company by such governmental unit pursuant to the provisions of any contract or
statute.
SECTION 3.11 Registration Rights Agreement.
The Company shall perform its obligations under each Registration Rights
Agreement and shall comply in all material respects with the terms and
conditions contained therein including, without limitation, the payment of
additional interest (as described in Section 6 of the initial Registration
Rights Agreement).
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ARTICLE 4
SUCCESSORS
SECTION 4.01 Limitations on Mergers and Consolidations.
Neither the Company nor any Guarantor (other than any Guarantor that has
been released from its Guarantee pursuant to the provisions of Section 9.06
hereof) shall consolidate with or merge into any Person, or sell, lease, convey,
transfer or otherwise dispose of all or substantially all of its assets to any
Person, unless:
(i) the Person formed by or surviving such consolidation or merger
(if other than the Company or such Guarantor, as the case may
be), or to which such sale, lease, conveyance, transfer or
other disposition shall be made (collectively, the
"Successor"), is a corporation, partnership, limited liability
company or similar Person organized and existing under the laws
of the United States or any State thereof or the District of
Columbia (or, alternatively, in the case of a Guarantor
organized under the laws of a jurisdiction outside the United
States, a corporation, partnership, limited liability company
or similar Person organized and existing under the laws of such
foreign jurisdiction), and the Successor is already a Guarantor
or, if not, assumes by supplemental indenture in a form
satisfactory to the Trustee all of the obligations of the
Company or such Guarantor, as the case may be, under this
Indenture and the Securities;
(ii) immediately after giving effect to such transaction, no Default
or Event of Default shall have occurred and be continuing; and
(iii) the Company shall have delivered to the Trustee an Officer's
Certificate and an Opinion of Counsel, each stating that the
transaction and such supplemental indenture comply with this
Indenture.
SECTION 4.02 Successor Corporation Substituted.
Upon any consolidation or merger of the Company or any Guarantor, or any
sale, lease, conveyance, transfer or other disposition of all or substantially
all of the assets of the Company or any Guarantor in accordance with Section
4.01 hereof, the Successor formed by such consolidation or into or with which
the Company or such Guarantor is merged or to which such sale, lease,
conveyance, transfer or other disposition or assignment is made shall succeed
to, and be substituted for, and may exercise every right and power of, the
Company or such Guarantor, as the case may be, under this Indenture and the
Securities with the same effect as if such Successor had been named as the
Company or such Guarantor herein and the predecessor Company or Guarantor, in
the case of a sale, conveyance, transfer or other disposition, shall be released
from all obligations under this Indenture and the Securities.
ARTICLE 5
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DEFAULTS AND REMEDIES
SECTION 5.01 Events of Default.
An "Event of Default" occurs if:
(1) the Company or any Guarantor defaults in the payment of interest on
any Security when the same becomes due and payable and such default
continues for a period of 30 days;
(2) the Company or any Guarantor defaults in the payment of the principal
of or premium, if any, on any Security when the same becomes due and
payable at maturity, upon acceleration, upon redemption or otherwise;
(3) the Company or any Guarantor fails to comply with any of its other
agreements or covenants in, or provisions of, the Securities, the
Guarantees or this Indenture and such failure continues for the period and
after the notice specified in the last paragraph of this Section 5.01;
(4) any default shall occur which results in the acceleration of the
maturity of any Indebtedness of the Company or any Material Subsidiary of
the Company (other than the Securities or any Non-Recourse Indebtedness)
having an outstanding principal amount of $25 million or more individually
or, taken together with all other such Indebtedness that has been so
accelerated, in the aggregate; or any default shall occur in the payment of
any principal or interest in respect of any Indebtedness of the Company or
any Material Subsidiary of the Company (other than the Securities or any
Non-Recourse Indebtedness) having an outstanding principal amount of $25
million or more individually or, taken together with all other such
Indebtedness with respect to which any such payment has not been made, in
the aggregate and such default shall be continuing for a period of 30 days
without the Company or such Subsidiary, as the case may be, effecting a
cure of such default;
(5) a final, non-appealable judgment or order for the payment of money in
excess of $25 million (net of applicable insurance coverage) shall be
rendered against the Company or any Material Subsidiary and such judgment
or order shall continue unsatisfied and unstayed for a period of 30 days;
(6) the Company or any Material Subsidiary of the Company 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
for a substantial part of its property, or
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(D) makes a general assignment for the benefit of its creditors; or
(7) a court of competent jurisdiction enters an order or decree under any
Bankruptcy Law that remains unstayed and in effect for 60 days and that:
(A) is for relief against the Company or any Material Subsidiary of
the Company as debtor in an involuntary case,
(B) appoints a Custodian of the Company or any Material Subsidiary of
the Company or a Custodian for all or for a substantial part of
the property of the Company or any Material Subsidiary of the
Company, or
(C) orders the liquidation of the Company or any Material Subsidiary
of the Company.
The term "Custodian" means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.
The Trustee shall not be deemed to know of a Default unless a Trust Officer
at the Corporate Trust Office of the Trustee has actual knowledge of such
Default or the Trustee receives written notice at the Corporate Trust Office of
the Trustee of such Default with specific reference to such Default.
When a Default is cured, it ceases.
A Default under clause (3) of this Section is not an Event of Default until
the Trustee notifies the Company and, in the case of a Default by a Guarantor,
such Guarantor, or the Holders of at least 25% in principal amount of the then
outstanding Securities notify the Company, such Guarantor (where applicable) and
the Trustee, of the Default, and neither the Company nor such Guarantor cures
the Default within 60 days after receipt of the notice. The notice must specify
the Default, demand that it be remedied and state that the notice is a "Notice
of Default."
SECTION 5.02 Acceleration.
If an Event of Default (other than an Event of Default specified in clause
(6) or (7) of Section 5.01 hereof with respect to the Company or any Material
Subsidiary) occurs and is continuing, the Trustee by notice to the Company, or
the Holders of at least 25% in principal amount of the then outstanding
Securities by notice to the Company and the Trustee, may declare the principal
of and premium, if any, and accrued and unpaid interest on all then outstanding
Securities to be due and payable immediately. Upon any such declaration the
amounts due and payable on the Securities, as determined in accordance with the
next succeeding paragraph, shall be due and payable immediately. If an Event of
Default specified in clause (6) or (7) of Section 5.01 hereof with respect to
the Company or any Material Subsidiary occurs, such amounts shall ipso facto
become and be immediately due and payable without any declaration, notice or
other act on the part of the Trustee or any Holder. The Holders of a majority
in principal amount of the then outstanding Securities by written notice to the
Trustee may rescind an acceleration and its
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consequences (other than nonpayment of principal of, or premium, if any, or
interest on the Securities) if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or
waived, except nonpayment of principal, or premium, if any, or interest that has
become due solely because of the acceleration.
In the event that the maturity of the Securities is accelerated pursuant to
this Section 5.02, 100% of the principal amount thereof shall become due and
payable plus accrued interest to the date of payment.
SECTION 5.03 Other Remedies.
If an Event of Default occurs and is continuing, the Trustee may pursue any
available remedy to collect the payment of principal of, or premium, if any, or
interest on the Securities or to enforce the performance of any provision of the
Securities, this Indenture or the Registration Rights Agreement.
The Trustee may maintain a proceeding even if it does not possess any of
the Securities or does not produce any of them in the proceeding. A delay or
omission by the Trustee or any Holder in exercising any right or remedy accruing
upon an Event of Default shall not impair the right or remedy or constitute a
waiver of or acquiescence in the Event of Default. All remedies are cumulative
to the extent permitted by law.
SECTION 5.04 Waiver of Existing Defaults.
Subject to Sections 5.07 and 8.02 hereof, the Holders of a majority in
principal amount of the then outstanding Securities by notice to the Trustee may
waive an existing Default or Event of Default and its consequences (including
waivers obtained in connection with a tender offer or exchange offer for
Securities or a solicitation of consents in respect of Securities, provided that
in each case such offer or solicitation is made to all Holders of then
outstanding Securities on equal terms), except (1) a continuing Default or Event
of Default in the payment of the principal of, or premium, if any, or interest
on any Security or (2) a continuing Default in respect of a provision that under
Section 8.02 hereof cannot be amended without the consent of each Holder
affected. Upon any such waiver, such Default shall cease to exist, and any
Event of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.
SECTION 5.05 Control by Majority.
The Holders of a majority in principal amount of the then outstanding
Securities may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on it hereunder. However, the Trustee may refuse to follow any
direction that conflicts with applicable law or this Indenture, that the Trustee
determines may be unduly prejudicial to the rights of other Holders, or that may
involve the Trustee in personal liability; provided, however, that the Trustee
may take any other action deemed proper by the Trustee that is not inconsistent
with such direction. Prior to taking any
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action hereunder, the Trustee shall be entitled to indemnification satisfactory
to it in its sole discretion against all losses and expenses caused by taking or
not taking such action.
SECTION 5.06 Limitations on Suits.
Subject to Section 5.07 hereof, a Holder may pursue a remedy with respect
to this Indenture (including the Guarantees) or the Securities only if:
(1) the Holder gives to the Trustee written notice of a continuing Event
of Default;
(2) the Holders of at least 25% in principal amount of the then
outstanding Securities make a written request to the Trustee to pursue the
remedy;
(3) such Holder or Holders offer to the Trustee indemnity reasonably
satisfactory to the Trustee against any loss, liability or expense;
(4) the Trustee does not comply with the request within 60 days after
receipt of the request and the offer of indemnity; and
(5) during such 60-day period the Holders of a majority in principal
amount of the Securities do not give the Trustee a direction inconsistent
with the request.
A Holder may not use this Indenture to prejudice the rights of another
Holder or to obtain a preference or priority over another Holder.
SECTION 5.07 Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any
Holder of a Security to receive payment of principal of, and premium, if any,
and interest on the Security, on or after the respective due dates expressed in
the Security, or to bring suit for the enforcement of any such payment on or
after such respective dates, is absolute and unconditional and shall not be
impaired or affected without the consent of the Holder.
SECTION 5.08 Collection Suit by Trustee.
If an Event of Default specified in clause (1) or (2) of Section 5.01
hereof occurs and is continuing, the Trustee is authorized to recover judgment
in its own name and as trustee of an express trust against the Company and any
Guarantor for the amount of principal and premium, if any, and interest
remaining unpaid on the Securities, and interest on overdue principal and
premium, if any, and, to the extent lawful, interest on overdue interest, and
such further amount as shall be sufficient to cover the costs and expenses of
collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
SECTION 5.09 Trustee May File Proofs of Claim.
The Trustee is authorized to file such proofs of claim and other papers or
documents and to take such actions, including participating as a member, voting
or otherwise, of any committee
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of creditors, as may be necessary or advisable in order to have the claims of
the Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to the Company and any
Guarantor or their respective creditors or properties and shall be entitled and
empowered to collect, receive and distribute any money or other property payable
or deliverable on any such claims and any Custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee, and in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due to it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 6.07 hereof. To the extent that the payment of any such compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, and
any other amounts due the Trustee under Section 6.07 hereof out of the estate in
any such proceeding, shall be denied for any reason, payment of the same shall
be secured by a Lien on, and shall be paid out of, any and all distributions,
dividends, money, securities and other properties which the Holders of the
Securities may be entitled to receive in such proceeding whether in liquidation
or under any plan of reorganization or arrangement or otherwise. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or
accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.
SECTION 5.10 Priorities.
If the Trustee collects any money pursuant to this Article, it shall pay
out the money in the following order:
First: to the Trustee for amounts due under Section 6.07 hereof;
Second: to Holders for amounts due and unpaid on the Securities for
principal, premium, if any, and interest ratably, without preference or priority
of any kind, according to the amounts due and payable on the Securities for
principal, premium, if any, and interest, respectively; and
Third: to the Company.
The Trustee, upon prior written notice to the Company, may fix a record
date and payment date for any payment to Holders pursuant to this Article.
SECTION 5.11 Undertaking for Costs.
In any suit for the enforcement of any right or remedy under this Indenture
or in any suit against the Trustee for any action taken or omitted by it as a
trustee, a court in its discretion may require the filing by any party litigant
in the suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys' fees,
against any party litigant in the suit, having due regard to the merits and good
faith of the claims or defenses made by the party litigant. This Section does
not apply to a suit by the Trustee, a suit
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by a Holder pursuant to Section 5.07 hereof, or a suit by a Holder or Holders of
more than 25% in principal amount of the then outstanding Securities.
ARTICLE 6
TRUSTEE
SECTION 6.01 Duties of Trustee.
(a) If an Event of Default has occurred and is continuing, the Trustee
shall exercise such of the rights and powers vested in it by this Indenture, and
use the same degree of care and skill in such exercise, as a prudent man would
exercise or use under the circumstances in the conduct of his own affairs.
(b) Except during the continuance of an Event of Default:
(1) the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and
(2) in the absence of bad faith on its part, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon certificates or opinions furnished to the Trustee
and conforming to the requirements of this Indenture. However, the Trustee
shall examine such certificates and opinions to determine whether or not,
on their face, they appear to conform to the requirements of this
Indenture.
(c) The Trustee may not be relieved from liabilities for its own negligent
action, its own negligent failure to act, or its own willful misconduct, except
that:
(1) this paragraph does not limit the effect of paragraph (b) of this
Section;
(2) the Trustee shall not be liable for any error of judgment made in good
faith by a Trust Officer, unless it is proved that the Trustee was
negligent in ascertaining the pertinent facts; and
(3) the Trustee shall not be liable with respect to any action it takes or
omits to take in good faith in accordance with a direction received by it
pursuant to Section 5.05 hereof.
(d) Whether or not therein expressly so provided, every provision of this
Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b) and (c) of this Section.
(e) No provision of this Indenture shall require the Trustee to expend or
risk its own funds or incur any liability. The Trustee may refuse to perform
any duty or exercise any right or power unless it receives indemnity reasonably
satisfactory to it against any loss, liability or expense.
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(f) The Trustee shall not be liable for interest on any money received by
it except as the Trustee may agree in writing with the Company. Money held in
trust by the Trustee need not be segregated from other funds except to the
extent required by law. All money received by the Trustee shall, until applied
as herein provided, be held in trust for the payment of the principal of, and
premium if any, and interest on the Securities.
SECTION 6.02 Rights of Trustee.
(a) The Trustee may rely on any document believed by it to be genuine and
to have been signed or presented by the proper Person. The Trustee need not
investigate any fact or matter stated in the document.
(b) Before the Trustee acts or refrains from acting, it may require an
Officer's Certificate or an Opinion of Counsel or both. The Trustee shall not
be liable for any action it takes or omits to take in good faith in reliance on
such Officer's Certificate or Opinion of Counsel. The Trustee may consult with
counsel and the written advice of such counsel or any Opinion of Counsel shall
be full and complete authorization and protection in respect of any action
taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.
(c) The Trustee may act through agents and shall not be responsible for
the misconduct or negligence of any agent appointed with due care.
(d) The Trustee shall not be liable for any action it takes or omits to
take in good faith which it believes to be authorized or within its rights or
powers conferred upon it by this Indenture.
(e) Unless otherwise specifically provided in this Indenture, any demand,
request, direction or notice from the Company or any Guarantor shall be
sufficient if signed by an Officer of the Company or such Guarantor.
SECTION 6.03 Individual Rights of Trustee.
The Trustee in its individual or any other capacity may become the owner or
pledgee of Securities and may otherwise deal with the Company, the Guarantors or
any of their Affiliates with the same rights it would have if it were not
Trustee. Any Agent may do the same with like rights. However, the Trustee is
subject to Sections 6.10 and 6.11 hereof.
SECTION 6.04 Trustee's Disclaimer.
The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Securities, it shall not be accountable for the Company's use
of the proceeds from the Securities or any money paid to the Company or upon the
Company's direction under any provision hereof, it shall not be responsible for
the use or application of any money received by any Paying Agent other than the
Trustee and it shall not be responsible for any statement or recital herein or
any statement in the Securities or any document issued in connection with the
sale of the Securities other than its certificate of authentication.
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SECTION 6.05 Notice of Defaults.
If a Default or Event of Default occurs and is continuing and it is known
to the Trustee, the Trustee shall mail to Holders a notice of the Default or
Event of Default within 90 days after it occurs or, if later, within 30 days
after the Trustee has actual knowledge of such Default. Except in the case of a
Default or Event of Default in payment of principal of, or premium, if any, or
interest on any Security, the Trustee may withhold the notice if and so long as
a committee of its Trust Officers in good faith determines that withholding the
notice is in the interests of Holders.
SECTION 6.06 Reports by Trustee to Holders.
Within 60 days after each January 31, beginning with January 31, 2002, and
in any event prior to March 31 in each year, the Trustee shall mail to Holders a
brief report dated as of such reporting date that complies with TIA Section
313(a); provided, however, that if no event described in TIA Section 313(a) has
occurred within the twelve months preceding the reporting date, no report need
be transmitted. The Trustee also shall comply with TIA Section 313(b). The
Trustee shall also transmit by mail all reports as required by TIA Sections
313(c) and 313(d).
A copy of each report at the time of its mailing to Holders shall be filed
with the SEC and each securities exchange, if any, on which the Securities are
listed. The Company shall notify the Trustee if and when the Securities are
listed on any stock exchange.
SECTION 6.07 Compensation and Indemnity.
The Company and the Guarantors jointly and severally agree to pay to the
Trustee from time to time such compensation as the Company and the Trustee shall
agree to in writing from time to time for the Trustee's acceptance of this
Indenture and services hereunder. The Trustee's compensation shall not be
limited by any law on compensation of a trustee of an express trust. The Company
and the Guarantors jointly and severally agree to reimburse the Trustee upon
request for all reasonable disbursements, advances and expenses incurred by it.
Such expenses shall include the reasonable compensation, disbursements and
expenses of the Trustee's agents and counsel.
The Company and the Guarantors jointly and severally agree to indemnify the
Trustee and any of its Affiliates, officers, directors, employees, consultants,
counsel and agents (the "Indemnified Persons") against any loss, claims,
actions, suits, damages, expenses (including reasonable attorney's fees and
expenses) and liabilities (including liabilities under state or federal
securities laws) incurred by such Indemnified Persons arising out of or in
connection with the acceptance or administration of the Trustee's duties under
this Indenture, including the costs and expenses of defending themselves against
any claim or liability in connection with the exercise or performance of any of
their powers or duties under this Indenture or in connection with enforcing this
Section 6.07, except as set forth in the next paragraph. The Trustee shall
notify the Company and the Guarantors promptly of any claim for which any
Indemnified Person may seek indemnity. Failure by the Trustee to so notify the
Company shall not relieve the Company of its obligations hereunder. The Company
shall defend the claim and the Indemnified Persons shall
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cooperate in the defense. The Indemnified Persons may have separate counsel and
the Company and the Guarantors shall pay the reasonable fees and expenses of
such counsel. The Company need not pay for any settlement made without its
consent.
Neither the Company nor the Guarantors shall be obligated to reimburse any
expense or indemnify against any loss or liability incurred by the Indemnified
Persons through negligence, willful misconduct or bad faith.
To secure the payment obligations of the Company and the Guarantors in this
Section 6.07, the Trustee shall have a Lien prior to the Securities on all money
or property held or collected by the Trustee, except that held in trust to pay
principal of, and premium, if any, and interest on the Securities. Such Lien
shall survive the satisfaction and discharge of this Indenture.
When the Trustee incurs expenses or renders services after an Event of
Default specified in Section 5.01(6) or (7) hereof occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.
SECTION 6.08 Replacement of Trustee.
A resignation or removal of the Trustee and appointment of a successor
Trustee shall become effective only upon the successor Trustee's acceptance of
appointment as provided in this Section 6.08.
The Trustee may resign and be discharged from the trust hereby created by
so notifying the Company and the Guarantors. The Holders of a majority in
principal amount of the then outstanding Securities may remove the Trustee by so
notifying the Trustee and the Company. The Company may remove the Trustee if:
(1) the Trustee fails to comply with Section 6.10 hereof;
(2) the Trustee is adjudged a bankrupt or an insolvent or an order for
relief is entered with respect to the Trustee under any Bankruptcy Law;
(3) a Custodian or public officer takes charge of the Trustee or its
property; or
(4) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in the office
of Trustee for any reason, the Company shall promptly appoint a successor
Trustee. Within one year after the successor Trustee takes office, the Holders
of a majority in principal amount of the Securities may appoint a successor
Trustee to replace the successor Trustee appointed by the Company.
If a successor Trustee does not take office within 60 days after the
retiring Trustee resigns or is removed, the retiring Trustee, the Company or the
Holders of at least 10% in principal amount of the then outstanding Securities
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.
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If the Trustee fails to comply with Section 6.10 hereof, any Holder may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee.
A successor Trustee shall deliver a written acceptance of its appointment
to the retiring Trustee and to the Company and the Guarantors. Thereupon the
resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee
under this Indenture. The successor Trustee shall mail a notice of its
succession to Holders. The retiring Trustee shall promptly transfer all property
held by it as Trustee to the successor Trustee, subject to the Lien provided for
in Section 6.07 hereof. Notwithstanding replacement of the Trustee pursuant to
this Section 6.08 hereof, the obligations of the Company and the Guarantors
under Section 6.07 hereof shall continue for the benefit of the retiring
Trustee.
SECTION 6.09 Successor Trustee by Merger, etc.
Subject to Section 6.10 hereof, if the Trustee consolidates, merges or
converts into, or transfers all or substantially all of its corporate trust
business to, another corporation, the successor corporation without any further
act shall be the successor Trustee; provided, however, that in the case of a
transfer of all or substantially all of its corporate trust business to another
corporation, the transferee corporation expressly assumes all of the Trustee's
liabilities hereunder.
In case any Securities shall have been authenticated, but not delivered, by
the Trustee then in office, any successor by merger, conversion or consolidation
to such authenticating Trustee may adopt such authentication and deliver the
Securities so authenticated; and in case at that time any of the Securities
shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name
of the successor to the Trustee; and in all such cases such certificates shall
have the full force which it is anywhere in the Securities or in this Indenture
provided that the certificate of the Trustee shall have.
SECTION 6.10 Eligibility; Disqualification.
There shall at all times be a Trustee hereunder which shall be a
corporation organized and doing business under the laws of the United States of
America, any State thereof or the District of Columbia and authorized under such
laws to exercise corporate trust power, shall be subject to supervision or
examination by Federal or State (or the District of Columbia) authority and
shall have, or be a Subsidiary of a bank or bank holding company having, a
combined capital and surplus of at least $50 million as set forth in its most
recent published annual report of condition.
The Indenture shall always have a Trustee who satisfies the requirements of
TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is subject to and
shall comply with the provisions of TIA Section 310(b) during the period of time
required by this Indenture. Nothing in this Indenture shall prevent the Trustee
from filing with the SEC the application referred to in the penultimate
paragraph of TIA Section 310(b).
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SECTION 6.11 Preferential Collection of Claims Against Company.
The Trustee is subject to and shall comply with the provisions of TIA
Section 311(a), excluding any creditor relationship listed in TIA Section
311(b). A Trustee who has resigned or been removed shall be subject to TIA
Section 311(a) to the extent indicated therein.
ARTICLE 7
DISCHARGE OF INDENTURE
SECTION 7.01 Termination of Company's Obligations.
(a) This Indenture shall cease to be of further effect (except that the
Company's and the Guarantors' obligations under Section 6.07 hereof and the
Trustee's and Paying Agent's obligations under Section 7.03 hereof shall
survive), and the Trustee, on demand of the Company, shall execute proper
instruments acknowledging the satisfaction and discharge of this Indenture,
when:
(1) either
(A) all outstanding Securities theretofore authenticated and issued
(other than destroyed, lost or stolen Securities that have been
replaced or paid) have been delivered to the Trustee for
cancellation; or
(B) all outstanding Securities not theretofore delivered to the
Trustee for cancellation:
(i) have become due and payable, or
(ii) will become due and payable at their stated maturity
within one year,
and the Company, in the case of clause (i) or (ii) above, has deposited or
caused to be deposited with the Trustee as funds (immediately available to
the Holders in the case of clause (i)) in trust for such purpose an amount
which, together with earnings thereon, will be sufficient to pay and
discharge the entire indebtedness on such Securities for principal,
premium, if any, and interest to the date of such deposit (in the case of
Securities which have become due and payable) or to the stated maturity, as
the case may be;
(2) the Company has paid all other sums payable by it hereunder; and
(3) except when the Securities are being paid in full at maturity, the
Company has delivered to the Trustee an Officer's Certificate stating that
all conditions precedent to satisfaction and discharge of this Indenture
have been complied with, together with an Opinion of Counsel to the same
effect.
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(b) The Company and the Guarantors may, subject as provided herein,
terminate all of their obligations under this Indenture if:
(1) the Company has irrevocably deposited or caused to be irrevocably
deposited with the Trustee as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for and
dedicated solely to the benefit of the Holders, (i) cash in an amount, or
(ii) U.S. Government Obligations, maturing as to principal and interest at
such times and in such amounts as will insure the availability of cash in
an amount or (iii) a combination thereof, sufficient, in the opinion of a
nationally recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay, without
consideration of the reinvestment of any such amounts and after payment of
all taxes or other charges or assessments in respect thereof payable by the
Trustee, the principal of, and premium, if any, and interest on all
Securities on each date that such principal, premium, if any, or interest
is due and payable and to pay all other sums payable by it hereunder;
provided that the Trustee shall have been irrevocably instructed to apply
such money and/or the proceeds of such U.S. Government Obligations to the
payment of said principal, premium, if any, and interest with respect to
the Securities as the same shall become due;
(2) the Company has delivered to the Trustee an Officer's Certificate
stating that all conditions precedent to satisfaction and discharge of this
Indenture have been complied with, and an Opinion of Counsel to the same
effect;
(3) no Default or Event of Default shall have occurred and be continuing
on the date of such deposit;
(4) the Company shall have delivered to the Trustee an Opinion of Counsel
from a nationally recognized counsel acceptable to the Trustee or a tax
ruling to the effect that the Holders will not recognize income, gain or
loss for Federal income tax purposes as a result of the Company's exercise
of its option under this Section 7.01(b) and will be subject to Federal
income tax on the same amount and in the same manner and at the same times
as would have been the case if such option had not been exercised;
(5) such deposit and discharge will not result in a breach or violation
of, or constitute a default under, any other agreement or instrument to
which the Company is a party or by which it is bound; and
(6) such deposit and discharge shall not cause the Trustee to have a
conflicting interest as defined in TIA Section 310(b);
In such event, this Indenture shall cease to be of further effect (except
as provided in the next succeeding paragraph), and the Trustee, on demand of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge under this Indenture.
However, the Company's obligations in Sections 2.03, 2.04, 2.05, 2.06,
2.07, 3.01, 4.01, 6.07, 6.08 and 7.04 hereof, the Company's and the Guarantors'
obligations in Sections 4.01,
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6.07, 7.04 and 9.01 hereof and the Trustee's and Paying Agent's obligations in
Section 7.03 hereof shall survive until the Securities are no longer
outstanding. Thereafter, only the Company's and the Guarantors' obligations in
Section 6.07 hereof and the Trustee's and Paying Agent's obligations in Section
7.03 hereof shall survive.
After such irrevocable deposit made pursuant to this Section 7.01(b) and
satisfaction of the other conditions set forth herein, the Trustee upon request
shall acknowledge in writing the discharge of the Company's obligations under
this Indenture except for those surviving obligations specified above.
In order to have money available on a payment date to pay principal of, or
premium, if any, or interest on the Securities, the U.S. Government Obligations
shall be payable as to principal or interest on or before such payment date in
such amounts as will provide the necessary money. U.S. Government Obligations
shall not be callable at the issuer's option.
SECTION 7.02 Application of Trust Money.
The Trustee or a trustee satisfactory to the Trustee and the Company shall
hold in trust money or U.S. Government Obligations deposited with it pursuant to
Section 7.01 hereof. It shall apply the deposited money and the money from U.S.
Government Obligations through the Paying Agent and in accordance with this
Indenture to the payment of principal of, and premium, if any, and interest on
the Securities.
SECTION 7.03 Repayment to Company.
The Trustee and the Paying Agent shall promptly pay to the Company upon
written request any excess money or securities held by them at any time.
Subject to the requirements of any applicable abandoned property laws, the
Trustee and the Paying Agent shall pay to the Company upon written request any
money held by them for the payment of principal, or premium, if any, or interest
that remains unclaimed for two years after the date upon which such payment
shall have become due; provided, however, that the Company shall have either
caused notice of such payment to be mailed to each Holder entitled thereto no
less than 30 days prior to such repayment or within such period shall have
published such notice in a financial newspaper of widespread circulation
published in The City of New York. After payment to the Company, Holders
entitled to the money must look to the Company for payment as general creditors
unless an applicable abandoned property law designates another Person, and all
liability of the Trustee and the Paying Agent with respect to such money shall
cease.
SECTION 7.04 Reinstatement.
If the Trustee or the Paying Agent is unable to apply any money or U. S.
Government Obligations in accordance with Section 7.01 hereof by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the obligations of the Company and the Guarantors under this
Indenture and the Securities shall be revived and reinstated as though no
deposit had occurred pursuant to Section 7.01 hereof until such time as the
Trustee or the Paying Agent is
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permitted to apply all such money or U. S. Government Obligations in accordance
with Section 7.01 hereof; provided, however, that if the Company or any
Guarantor has made any payment of principal of or interest on any Securities
because of the reinstatement of its obligations, the Company or such Guarantor
shall be subrogated to the rights of the Holders of such Securities to receive
such payment from the money or U.S. Government Obligations held by the Trustee
or the Paying Agent.
ARTICLE 8
AMENDMENTS
SECTION 8.01 Without Consent of Holders.
The Company, the Guarantors and the Trustee may amend or supplement this
Indenture or the Securities or waive any provision hereof or thereof without the
consent of any Holder:
(1) to cure any ambiguity, omission, defect or inconsistency;
(2) to comply with Sections 4.01 and 4.02 hereof;
(3) to provide for uncertificated Securities in addition to or in place of
certificated Securities;
(4) to reflect the release of any Guarantor from its Guarantee, or the
addition of any Subsidiary of the Company as a Guarantor, in the manner
provided by Section 9.06 hereof;
(5) to comply with any requirement in order to effect or maintain the
qualification of this Indenture under the TIA;
(6) to add additional guarantees of the Securities;
(7) to comply with any requirements of the SEC in connection with
qualifying this Indenture under the TIA;
(8) to add to the covenants of the Company or any Guarantor for the
benefit of the Holders or to surrender any right or power herein conferred
upon the Company or any Guarantor; or
(9) to make any change that does not adversely affect the rights hereunder
of any Holder in any material respect.
Upon the request of the Company and the Guarantors, accompanied by a
resolution of the Board of Directors and of the board of directors, board of
trustees or managing partners of each Guarantor authorizing the execution of any
such supplemental indenture, and upon receipt by the Trustee of the documents
described in Section 8.06 hereof, the Trustee shall join with the
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Company and the Guarantors in the execution of any supplemental indenture
authorized or permitted by the terms of this Indenture and make any further
appropriate agreements and stipulations that may be therein contained. After an
amendment, supplement or waiver under this Section 8.01 becomes effective, the
Company shall mail to the Holders of each Security affected thereby a notice
briefly describing the amendment, supplement or waiver. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.
SECTION 8.02 With Consent of Holders.
Except as provided below in this Section 8.02, the Company, the Guarantors
and the Trustee may amend or supplement this Indenture or the Securities with
the written consent (including consents obtained in connection with a tender
offer or exchange offer for Securities or a solicitation of consents in respect
of Securities, provided that in each case such offer or solicitation is made to
all Holders of then outstanding Securities on equal terms) of the Holders of at
least a majority in principal amount of the then outstanding Securities.
Upon the request of the Company and the Guarantors, accompanied by a copy
of the resolution of the Board of Directors and of the board of directors, board
of trustees or managing partners of each Guarantor giving the signing officer's
authority to execute such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of the Holders as aforesaid, and upon receipt
by the Trustee of the documents described in Section 8.06 hereof, the Trustee
shall join with the Company and the Guarantors in the execution of such
supplemental indenture.
It shall not be necessary for the consent of the Holders under this Section
8.02 to approve the particular form of any proposed amendment, supplement or
waiver, but it shall be sufficient if such consent approves the substance
thereof.
The Holders of a majority in principal amount of the then outstanding
Securities may waive compliance in a particular instance by the Company or the
Guarantors with any provision of this Indenture or the Securities (including
waivers obtained in connection with a tender offer or exchange offer for
Securities or a solicitation of consents in respect of Securities, provided that
in each case such offer or solicitation is made to all Holders of then
outstanding Securities on equal terms).
However, without the consent of each Holder affected, an amendment,
supplement or waiver under this Section may not:
(1) reduce the amount of Securities whose Holders must consent to an
amendment, supplement or waiver;
(2) reduce the rate of or change the time for payment of interest,
including default interest, on any Security;
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(3) reduce the principal of or change the fixed maturity of any Security
or alter the premium or other provisions with respect to redemption under
Section 10.07 or specified in the Securities;
(4) make any Security payable in money other than that stated in the
Security;
(5) impair the right to institute suit for the enforcement of any payment
of principal of, or premium, if any, or interest on any Security pursuant
to Sections 5.07 and 5.08 hereof, except as limited by Section 5.06 hereof;
(6) make any change in the percentage of principal amount of Securities
necessary to waive compliance with certain provisions of this Indenture
pursuant to Section 5.04 or 5.07 hereof or this clause of this Section
8.02; or
(7) waive a continuing Default or Event of Default in the payment of
principal of, or premium, if any, or interest on the Securities.
The right of any Holder to participate in any consent required or sought
pursuant to any provision of this Indenture (and the obligation of the Company
to obtain any such consent otherwise required from such Holder) may be subject
to the requirement that such Holder shall have been the Holder of record of any
Securities with respect to which such consent is required or sought as of a date
identified by the Trustee in a notice furnished to Holders in accordance with
the terms of this Indenture.
SECTION 8.03 Compliance with Trust Indenture Act.
Every amendment to this Indenture or the Securities shall comply in form
and substance with the TIA as then in effect.
SECTION 8.04 Revocation and Effect of Consents.
Until an amendment (which includes any supplement) or waiver becomes
effective, a consent to it by a Holder is a continuing consent by the Holder and
every subsequent Holder of a Security or portion of a Security that evidences
the same debt as the consenting Holder's Security, even if notation of the
consent is not made on any Security. However, any such Holder or subsequent
Holder may revoke the consent as to his or her Security or portion of a Security
if the Trustee receives written notice of revocation before the date the
amendment or waiver becomes effective. An amendment, supplement or waiver
becomes effective in accordance with its terms and thereafter binds every
Holder.
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 or
waiver or to take any other action under this Indenture. If a record date is
fixed, then notwithstanding the provisions of the immediately preceding
paragraph, those Persons who were Holders at such record date (or their duly
designated proxies), and only those Persons, shall be entitled to consent to
such amendment, supplement or waiver or to revoke any consent previously given,
whether or not such Persons continue to be Holders after such record date. No
consent shall be valid or effective for more
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than 90 days after such record date unless consents from Holders of the
principal amount of Securities required hereunder for such amendment or waiver
to be effective shall have also been given and not revoked within such 90-day
period.
After an amendment, supplement or waiver becomes effective, it shall bind
every Holder, unless it is of the type described in any of clauses (1) through
(7) of Section 8.02 hereof. In such case, the amendment or waiver shall bind
each Holder who has consented to it and every subsequent Holder that evidences
the same debt as the consenting Holder's Security.
SECTION 8.05 Notation on or Exchange of Securities.
If an amendment changes the terms of a Security, the Trustee may require
the Holder of the Security to deliver it to the Trustee. The Trustee may place
an appropriate notation on the Security regarding the changed terms and return
it to the Holder. Alternatively, if the Company or the Trustee so determines,
the Company in exchange for the Security shall issue and the Trustee shall
authenticate a new Security that reflects the changed terms. Failure to make the
appropriate notation or to issue a new Security shall not affect the validity of
such amendment.
SECTION 8.06 Trustee to Sign Amendments, etc.
The Trustee shall sign any amendment, waiver or supplemental indenture
authorized pursuant to this Article if the amendment, waiver or supplemental
indenture does not adversely affect the rights, duties, liabilities or
immunities of the Trustee. If it does, the Trustee may, but need not, sign it.
In signing or refusing to sign such amendment, waiver or supplemental indenture,
the Trustee shall be entitled to receive and subject to Section 6.01 hereof,
shall be fully protected in relying upon, an Opinion of Counsel as conclusive
evidence that such amendment, waiver or supplemental indenture is authorized or
permitted by this Indenture, that it is not inconsistent herewith, and that it
will be valid and binding upon the Company and the Guarantors in accordance with
its terms.
ARTICLE 9
GUARANTEES OF SECURITIES
SECTION 9.01 Unconditional Guarantees.
(a) For value received, the Guarantors, jointly and severally, hereby
fully, unconditionally and absolutely guarantee (the "Guarantees") to the
Holders and to the Trustee the due and punctual payment of the principal of, and
premium, if any, and interest on the Securities and all other amounts due and
payable under this Indenture and the Securities by the Company, when and as such
principal, premium, if any, and interest shall become due and payable, whether
at the stated maturity, upon redemption or by declaration of acceleration or
otherwise, according to the terms of the Securities and this Indenture.
(b) Failing payment when due of any amount guaranteed pursuant to the
Guarantees, for whatever reason, each Guarantor will be obligated to pay the
same immediately. Each
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Guarantee hereunder is intended to be a general, unsecured, senior obligation of
each Guarantor and will rank pari passu in right of payment with all
Indebtedness of each such Guarantor that is not, by its terms, expressly
subordinated in right of payment to the Guarantee of such Guarantor. Each of the
Guarantors hereby agrees that its obligations hereunder shall be full,
unconditional and absolute, irrespective of the validity, regularity or
enforceability of the Securities, the Guarantees or this Indenture, the absence
of any action to enforce the same, any waiver or consent by any Holder with
respect to any provisions hereof or thereof, any release of any other Guarantor,
the recovery of any judgment against the Company, any action to enforce the same
or any other circumstance which might otherwise constitute a legal or equitable
discharge or defense of a Guarantor. Each of the Guarantors hereby agrees that
in the event of a default in payment of the principal of, or premium, if any, or
interest on the Securities, whether at the stated maturity, upon redemption or
by declaration of acceleration or otherwise, legal proceedings may be instituted
by the Trustee on behalf of the Holders or, subject to Section 5.06 hereof, by
the Holders, on the terms and conditions set forth in this Indenture, directly
against each of the Guarantors to enforce the Guarantees without first
proceeding against the Company.
(c) The obligations of each Guarantor under this Article 9 shall be as
aforesaid full, unconditional and absolute and shall not be impaired, modified,
released or limited by any occurrence or condition whatsoever, including,
without limitation, (i) any compromise, settlement, release, waiver, renewal,
extension, indulgence or modification of, or any change in, any of the
obligations and liabilities of the Company or any other Guarantor contained in
the Securities or this Indenture, (ii) any impairment, modification, release or
limitation of the liability of the Company, any other Guarantor or any of their
estates in bankruptcy, or any remedy for the enforcement thereof, resulting from
the operation of any present or future provision of any applicable Bankruptcy
Law, as amended, or other statute or from the decision of any court, (iii) the
assertion or exercise by the Company, any other Guarantor or the Trustee of any
rights or remedies under the Securities or this Indenture or their delay in or
failure to assert or exercise any such rights or remedies, (iv) the assignment
or the purported assignment of any property as security for the Securities,
including all or any part of the rights of the Company or any other Guarantor
under this Indenture, (v) the extension of the time for payment by the Company
or any other Guarantor of any payments or other sums or any part thereof owing
or payable under any of the terms and provisions of the Securities or this
Indenture or of the time for performance by the Company or any other Guarantor
of any other obligations under or arising out of any such terms and provisions
or the extension or the renewal of any thereof, (vi) the modification or
amendment (whether material or otherwise) of any duty, agreement or obligation
of the Company or any other Guarantor set forth in this Indenture, (vii) the
voluntary or involuntary liquidation, dissolution, sale or other disposition of
all or substantially all of the assets, marshaling of assets and liabilities,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of, or other similar
proceeding affecting, the Company or any of the other Guarantors or any of their
respective assets, or the disaffirmance of the Securities, the Guarantees or
this Indenture in any such proceeding, (viii) the release or discharge of the
Company or any other Guarantor from the performance or observance of any
agreement, covenant, term or condition contained in any of such instruments by
operation of law, (ix) the unenforceability of the Securities, the Guarantees or
this Indenture or (x) any
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other circumstance which might otherwise constitute a legal or equitable
discharge of a surety or guarantor.
(d) Each of the Guarantors hereby (i) waives diligence, presentment,
demand of payment, filing of claims with a court in the event of the merger,
insolvency or bankruptcy of the Company or a Guarantor, and all demands
whatsoever, (ii) acknowledges that any agreement, instrument or document
evidencing the Guarantees may be transferred in accordance with the requirements
of this Indenture and that the benefit of its obligations hereunder shall extend
to each permitted transferee of any agreement, instrument or document evidencing
the Guarantees without notice to them and (iii) covenants that its Guarantee
will not be discharged except pursuant to Sections 7.01 or 9.06 hereof or
otherwise by complete performance of the Guarantees. Each Guarantor further
agrees that if at any time all or any part of any payment theretofore applied by
any Person to any Guarantee is, or must be, rescinded or returned for any reason
whatsoever, including without limitation, the insolvency, bankruptcy or
reorganization of any Guarantor, such Guarantee shall, to the extent that such
payment is or must be rescinded or returned, be deemed to have continued in
existence notwithstanding such application, and the Guarantees shall continue to
be effective or be reinstated, as the case may be, as though such application
had not been made.
(e) Each Guarantor shall be subrogated to all rights of the Holders and
the Trustee against the Company in respect of any amounts paid by such Guarantor
pursuant to the provisions of this Indenture; provided, however, that no
Guarantor shall be entitled to enforce or to receive any payments arising out
of, or based upon, such right of subrogation until all of the Securities and the
Guarantees shall have been paid in full or discharged.
(f) A director, officer, employee or stockholder, as such, of any
Guarantor shall not have any liability for any obligations of such Guarantor
under this Indenture or for any claim based on, in respect of or by reason of
such obligations or their creation.
SECTION 9.02 Limitation of Guarantor's Liability.
Each Guarantor and by its acceptance hereof each Holder hereby confirms
that it is the intention of all such parties that the guarantee by such
Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or
conveyance for purposes of any federal, state or foreign law. To effectuate the
foregoing intention, the Holders and each Guarantor hereby irrevocably agree
that each Guarantor's liability shall be limited to the lesser of (i) the
aggregate amount of the obligations of the Company under the Securities and this
Indenture and (ii) the amount, if any, which would not have (A) rendered such
Guarantor "insolvent" (as such term is defined in the Bankruptcy Law and in the
Debtor and Creditor Law of the State of New York) or (B) left such Guarantor
with unreasonably small capital at the time its Guarantee of the Notes was
entered into; provided that it will be a presumption in any lawsuit or other
proceedings in which a Guarantor is a party that the amount guaranteed pursuant
to the Guarantee is the amount set forth in clause (i) above unless any
creditor, or representative of creditors of such Guarantor, or debtor in
possession or trustee in bankruptcy of the Guarantor, otherwise proves in such a
lawsuit that the aggregate liability of the Guarantor is the amount set forth in
clause (ii) above. In making any determination as to solvency or sufficiency of
capital of a Guarantor in accordance with the
-44-
previous sentence, the right of such Guarantor to contribution from other
Guarantors, and any other rights such Guarantor may have, contractual or
otherwise, shall be taken into account.
SECTION 9.03 Contribution.
In order to provide for just and equitable contribution among the
Guarantors, the Guarantors agree, inter se, that in the event any payment or
distribution is made by any Guarantor (a "Funding Guarantor") under its
Guarantee, such Funding Guarantor shall be entitled to a contribution from each
other Guarantor in a pro rata amount based on the Adjusted Net Assets of each
Guarantor (including the Funding Guarantor) for all payments, damages and
expenses incurred by the Funding Guarantor in discharging the Company's
obligations with respect to the Securities or any other Guarantor's obligations
with respect to its Guarantee.
SECTION 9.04 Execution and Delivery of Guarantees.
To further evidence the Guarantees, each Guarantor hereby agrees that a
notation relating to such Guarantees shall be endorsed on each Security
authenticated and delivered by the Trustee and executed by either manual or
facsimile signature of an Officer of each Guarantor.
Each of the Guarantors hereby agrees that its Guarantee shall remain in
full force and effect notwithstanding any failure to endorse on each Security a
notation relating to such Guarantee.
If an Officer of a Guarantor whose signature is on this Indenture or a
Security no longer holds that office at the time the Trustee authenticates such
Security or at any time thereafter, such Guarantor's Guarantee of such Security
shall be valid nevertheless.
The delivery of any Security by the Trustee, after the authentication
thereof hereunder, shall constitute due delivery of any Guarantee set forth in
this Indenture on behalf of the Guarantor.
SECTION 9.05 Addition of Guarantors.
(a) If any Subsidiary of the Company guarantees (or becomes a co-obligor
on) any Funded Indebtedness of the Company other than the Securities at any time
subsequent to the Issue Date (including, without limitation, following any
release of such Subsidiary pursuant to Section 9.06 hereof from any Guarantee
previously provided by it under this Article 9), then the Company shall (i)
cause the Securities to be equally and ratably guaranteed by such Subsidiary,
but only to the extent that the Securities are not already guaranteed by such
Subsidiary on reasonably comparable terms and (ii) cause such Subsidiary to
execute and deliver a supplemental indenture, in substantially the form of
Exhibit E hereto, evidencing its provision of a Guarantee in accordance with
clause (b) below.
(b) Any Person that was not a Guarantor on the Issue Date may become a
Guarantor by executing and delivering to the Trustee a supplemental indenture in
form and substance satisfactory to the Trustee, which subjects such Person to
the provisions (including the representations and warranties) of this Indenture
as a Guarantor.
-45-
SECTION 9.06 Release of Guarantee.
Notwithstanding anything to the contrary in this Article 9, in the event
that any Guarantor shall no longer be a guarantor of (or co-obligor on) any
Funded Indebtedness of the Company other than the Securities and other than
Funded Indebtedness of the Company (i) subject to a release provision
substantially similar to this Section 9.06 and (ii) the related guarantee (or
obligation) of which will be released substantially concurrently with the
release of the Guarantee of such Guarantor pursuant to this Section 9.06, and so
long as no Default or Event of Default shall have occurred or be continuing,
such Guarantor, upon giving notice to the Trustee to the foregoing effect, shall
be deemed to be released from all of its obligations under this Indenture and
the Guarantee of such Guarantor shall be of no further force or effect.
Following the receipt by the Trustee of any such notice, the Company shall cause
this Indenture to be amended as provided in Section 8.01 hereof; provided,
however, that the failure to so amend this Indenture shall not affect the
validity of the termination of the Guarantee of such Guarantor.
SECTION 9.07 Consent to Jurisdiction and Service of Process.
Each Guarantor that is not organized under the laws of the United States
(including the States and the District of Columbia) (each a "Non-U.S.
Guarantor") hereby appoints CT Corporation System as the authorized agent
thereof (the "Authorized Agent") upon whom process may be served in any action,
suit or proceeding arising out of or based on this Indenture or the Securities
which may be instituted in the Supreme Court of the State of New York or the
United States District Court for the Southern District of New York, in either
case in The Borough of Manhattan, The City of New York, by the Holder of any
Security, and each Non-U.S. Guarantor hereby waives any objection which it may
now or hereafter have to the laying of venue of any such proceeding and
expressly and irrevocably accepts and submits, for the benefit of the Holders
from time to time of the Securities, to the nonexclusive jurisdiction of any
such court in respect of any such action, suit or proceeding, for itself and
with respect to its properties, revenues and assets. Such appointment shall be
irrevocable unless and until the appointment of a successor authorized agent for
such purpose, and such successor's acceptance of such appointment, shall have
occurred. Each Non-U.S. Guarantor agrees to take any and all actions, including
the filing of any and all documents and instruments, that may be necessary to
continue such appointment in full force and effect as aforesaid. Service of
process upon the Authorized Agent with respect to any such action shall be
deemed, in every respect, effective service of process upon any such Non-U.S.
Guarantor. Notwithstanding the foregoing, any action against any Non-U.S.
Guarantor arising out of or based on any Security may also be instituted by the
Holder of such Security in any court in the jurisdiction of organization of such
Non-U.S. Guarantor, and such Non-U.S. Guarantor expressly accepts the
jurisdiction of any such court in any such action. The Company shall require the
Authorized Agent to agree in writing to accept the foregoing appointment as
agent for service of process.
SECTION 9.08 Waiver of Immunity.
To the extent that any Non-U.S. Guarantor or any of its properties, assets
or revenues may have or may hereafter become entitled to, or have attributed to
it, any right of immunity, on the grounds of sovereignty or otherwise, from any
legal action, suit or proceeding, from the giving of
-46-
any relief in any thereof, from set-off or counterclaim, from the jurisdiction
of any court, from service of process, from attachment upon or prior to
judgment, from attachment in aid of execution of judgment, or from execution of
judgment, or other legal process or proceeding for the giving of any relief or
for the enforcement of any judgment, in any jurisdiction in which proceedings
may at any time be commenced, with respect to its obligations, liabilities or
any other matter under or arising out of or in connection with this Indenture or
the Securities, such Non-U.S. Guarantor, to the maximum extent permitted by law,
hereby irrevocably and unconditionally waives, and agrees not to plead or claim,
any such immunity and consents to such relief and enforcement.
SECTION 9.09 Judgment Currency.
Each Non-U.S. Guarantor agrees to indemnify the Trustee and each Holder
against any loss incurred by it as a result of any judgment or order being given
or made and expressed and paid in a currency (the "Judgment Currency") other
than United States dollars and as a result of any variation as between (i) the
rate of exchange at which the United States dollar amount is converted into the
Judgment Currency for the purpose of such judgment or order and (ii) the spot
rate of exchange in The City of New York at which the Trustee or such Holder on
the date of payment of such judgment or order is able to purchase United States
dollars with the amount of the Judgment Currency actually received by the
Trustee or such Holder. The foregoing indemnity shall constitute a separate and
independent obligation of each Non-U.S. Guarantor and shall continue in full
force and effect notwithstanding any such judgment or order as aforesaid. The
term "spot rate of exchange" shall include any premiums and costs of exchange
payable in connection with the purchase of, or conversion into, United States
dollars.
ARTICLE 10
REDEMPTION
SECTION 10.01 Notices to Trustee.
If the Company elects to redeem Securities pursuant to the redemption
provisions of Section 10.07, it shall furnish to the Trustee, at least 30 days
but not more than 60 days before a Redemption Date, an Officer's Certificate
setting forth the Redemption Date, the principal amount of Securities to be
redeemed and the Redemption Price.
SECTION 10.02 Selection of Securities to be Redeemed.
If less than all of the Securities are to be redeemed, the Trustee shall
select the Securities to be redeemed by such method as the Trustee in its sole
discretion shall deem fair and appropriate. The particular Securities to be
redeemed shall be selected, unless otherwise provided herein, not less than 25
days nor more than 60 days prior to the Redemption Date by the Trustee from the
outstanding Securities not previously called for redemption.
The Trustee shall promptly notify the Company in writing of the Securities
selected for redemption and, in the case of any Security selected for partial
redemption, the principal amount
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thereof to be redeemed. Securities and portions of them selected shall be in
amounts of $1,000 or whole multiples of $1,000. Except as provided in the
preceding sentence, provisions of this Indenture that apply to Securities called
for redemption also apply to portions of Securities called for redemption.
SECTION 10.03 Notices to Holders.
(a) At least 25 days but not more than 60 days before a Redemption Date,
the Company shall mail in conformity with Section 11.02 a notice of
redemption to each Holder whose Securities are to be redeemed.
The Notice shall identify the Securities to be redeemed and shall
state:
(i) the Redemption Date;
(ii) the Redemption Price;
(iii) if any Security is being redeemed in part, the portion of the
principal amount of such Security to be redeemed and that,
after the Redemption Date, upon surrender of such Security, a
new Security or Securities in principal amount equal to the
unredeemed portion will be issued;
(iv) the name and address of the Paying Agent;
(v) that Securities called for redemption must be surrendered to
the Paying Agent at the address specified in such notice to
collect the Redemption Price;
(vi) that unless the Company defaults in making the redemption
payment, interest on Securities called for redemption ceases to
accrue on and after the Redemption Date and the only remaining
right of the Holders is to receive payment of the Redemption
Price upon surrender to the Paying Agent of the Securities; and
(vii) the aggregate principal amount of Securities being redeemed.
If any of the Securities to be redeemed is in the form of a Global
Security, then the Company shall modify such notice to the extent necessary to
accord with the procedures of the Depositary applicable to redemptions.
(b) At the Company's request, the Trustee shall give the notice required
in Section 10.03(a) in the Company's name; provided, however, that the
Company shall deliver to the Trustee, at least 30 days prior to the
Redemption Date, an Officer's Certificate requesting that the Trustee
give such notice and setting forth the information to be stated in
such notice as provided in Section 10.03(a).
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SECTION 10.04 Effect of Notices of Redemption.
Once notice of redemption is mailed pursuant to Section 10.03, Securities
called for redemption become due and payable on the Redemption Date at the
Redemption Price. Upon surrender to the Paying Agent, such Securities shall be
paid out at the Redemption Price.
SECTION 10.05 Deposit of Redemption Price.
At least one Business Day prior to the Redemption Date, the Company shall
deposit with the Trustee or with the Paying Agent money sufficient to pay the
Redemption Price of all Securities to be redeemed on that date. The Trustee or
the Paying Agent shall return to the Company any money not required for that
purpose less the expenses of the Trustee as provided herein.
If the Company complies with the preceding paragraph, interest on the
Securities or portions thereof to be redeemed (whether or not such Securities
are presented for payment) will cease to accrue on the applicable Redemption
Date. If any Security called for redemption shall not be so paid upon surrender
because of the failure of the Company to comply with the preceding paragraph,
then interest will be paid on the unpaid Redemption Price from the Redemption
Date until such Redemption Price is paid (including, to the extent lawful, on
the portion of such Redemption Price consisting of unpaid interest) at the rate
provided in the Securities and in Section 3.01.
SECTION 10.06 Securities Redeemed in Part.
Upon surrender of a Security that is redeemed in part, the Company shall
issue and the Trustee shall authenticate for the Holder, at the expense of the
Company, a new Security equal in principal amount to the unredeemed portion of
the Security surrendered.
SECTION 10.07 Optional Redemption.
The Securities may be redeemed at any time, at the option of the Company,
in whole or from time to time in part, at the Redemption Price specified in the
Securities.
Any redemption pursuant to this Section 10.07 shall be made, to the extent
applicable, pursuant to the provisions of Sections 10.01 through 10.06.
SECTION 10.08 No Premium if not Stated.
No premium shall be due upon any repayment or redemption of any Security
prior to the stated maturity thereof except as may be expressly provided in
such Security. The only premium payable with respect to the Series A Securities
or the Series B Securities is the premium, if any, included in the calculation
of the Redemption Price, which premium is payable only when and if the
Redemption Price is payable.
-49-
ARTICLE 11
MISCELLANEOUS
SECTION 11.01 Trust Indenture Act Controls.
If any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by operation of TIA Section 318(c), the imposed duties shall
control.
SECTION 11.02 Notices.
Any notice or communication by the Company, the Guarantors or the Trustee
to the others is duly given if in writing and delivered in person or mailed by
first-class mail (registered or certified, return receipt requested), telecopier
or overnight air courier guaranteeing next day delivery, to the other's address:
If to the Company or the Guarantors:
PureResources,Inc.
500WestIllinois
Midland,Texas79701
Attention:CorporateSecretary
Telecopier No. (000) 000-0000
If to the Trustee:
FirstUnionNationalBank
CorporateTrustGroup
5847SanFelipe,Suite1050
Houston,Texas77057
Attention:DouglasMilner
Telecopier No. (000) 000-0000
The Company, the Guarantors or the Trustee by notice to the others may
designate additional or different addresses for subsequent notices or
communications.
All notices and communications shall be deemed to have been duly given: at
the time delivered by hand, if personally delivered; five Business Days after
being deposited in the mail, postage prepaid, if mailed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to
the courier, if sent by overnight air courier guaranteeing next day delivery.
Any notice or communication to a Holder shall be mailed by first-class
mail, postage prepaid, to the Holder's address shown on the register kept by the
Registrar. Failure to mail a notice or communication to a Holder or any defect
in it shall not affect its sufficiency with respect to other Holders.
-50-
If a notice or communication is mailed in the manner provided above within
the time prescribed, it is duly given, whether or not the addressee receives it.
If the Company or any Guarantor mails a notice or communication to Holders,
it shall mail a copy to the Trustee and each Agent at the same time.
All notices or communications, including without limitation notices to the
Trustee or the Company or any Guarantor by Holders, shall be in writing, except
as set forth below, and in the English language.
In case by reason of the suspension of regular mail service, or by reason
of any other cause, it shall be impossible to mail any notice required by this
Indenture, then such method of notification as shall be made with the approval
of the Trustee shall constitute a sufficient mailing of such notice.
SECTION 11.03 Communication by Holders with Other Holders.
Holders may communicate pursuant to TIA Section 312(b) with other Holders
with respect to their rights under this Indenture or the Securities. The
Company, the Guarantors, the Trustee, the Registrar and anyone else shall have
the protection of TIA Section 312(c).
SECTION 11.04 Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Company or any Guarantor to the
Trustee to take any action under this Indenture, the Company or such Guarantor
shall, if requested by the Trustee, furnish to the Trustee:
(1) an Officer's Certificate (which shall include the statements set forth
in Section 11.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been complied with; and
(2) an Opinion of Counsel (which shall include the statements set forth in
Section 11.05 hereof) stating that, in the opinion of such counsel, all
such conditions precedent and covenants have been complied with.
SECTION 11.05 Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture shall include:
(1) a statement that the Person making such certificate or opinion has read
such covenant or condition;
(2) a brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in such
certificate or opinion are based;
-51-
(3) a statement that, in the opinion of such Person, he has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and
(4) a statement as to whether or not, in the opinion of such Person, such
condition or covenant has been complied with.
SECTION 11.06 Rules by Trustee and Agents.
The Trustee may make reasonable rules for action by or at a meeting of
Holders. The Registrar or the Paying Agent may make reasonable rules and set
reasonable requirements for its functions.
SECTION 11.07 Legal Holidays.
If a payment date is a Legal Holiday at a place of payment, payment may be
made at that place on the next succeeding day that is not a Legal Holiday, and
no interest shall accrue for the intervening period.
SECTION 11.08 No Recourse Against Others.
A director, officer, employee or stockholder of the Company or any
Guarantor, as such, shall not have any liability for any obligations of the
Company or such Guarantor under the Securities or this Indenture or for any
claim based on, in respect of or by reason of such obligations or their
creation. Each Holder by accepting a Security waives and releases all such
liability. The waiver and release shall be part of the consideration for the
issue of Securities.
SECTION 11.09 Governing Law.
THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY AND CONSTRUCTED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
SECTION 11.10 No Adverse Interpretation of Other Agreements.
This Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company, any Guarantor or any other Subsidiary of the Company.
Any such indenture, loan or debt agreement may not be used to interpret this
Indenture.
SECTION 11.11 Successors.
All agreements of the Company and the Guarantors in this Indenture and the
Securities shall bind their respective successors. All agreements of the
Trustee in this Indenture shall bind its successor.
-52-
SECTION 11.12 Severability.
In case any provision in this Indenture or in the Securities 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.
SECTION 11.13 Counterpart Originals.
The parties may sign any number of copies of this Indenture. Each signed
copy shall be an original, but all of them together represent the same
agreement.
SECTION 11.14 Table of Contents, Headings, etc.
The Table of Contents, Cross-Reference Table and Headings of the Articles
and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or
restrict any of the terms or provisions hereof.
-53-
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly
executed as of the day and year first above written
PURE RESOURCES, INC.
TITAN EXPLORATION, INC.
PURE RESOURCES I, INC.
HALLWOOD PETROLEUM, INC.
PURE GP, LLC
HEP PURE ACQUISITION, LLC
By: /s/ Xxxx Xxxxxxxxx
------------------
Xxxx X. Xxxxxxxxx
President
PURE RESOURCES HOLDINGS, INC.
PURE RESOURCES HOLDINGS, LLC
By: /s/ Xxxxxxx Xxxxxx
------------------
Xxxxxxx Xxxxxx
Vice President
PURE RESOURCES, L.P.
PK I, L.P.
XX XX, L.P.
PK III, L.P.
XX XX, L.P.
By: PURE RESOURCES I, INC.,
its general partner
By: /s/ Xxxx Xxxxxxxxx
-------------------
Xxxx X. Xxxxxxxxx
President
-54-
HEP PURE, LP
By: PURE GP, LLC, its general partner
By: /s/ Xxxx Xxxxxxxxx
-------------------
Xxxx X. Xxxxxxxxx
President
HALLWOOD ENERGY PARTNERS, L.P.
By: HEP PURE ACQUISITION, LLC,
its general partner
By: /s/ Xxxx Xxxxxxxxx
-------------------
Xxxx X. Xxxxxxxxx
President
LA PLATA ASSOCIATES, LLC
HALLWOOD LA PLATA, LLC
By: HALLWOOD PETROLEUM, INC.
its manager
By: /s/ Xxxx Xxxxxxxxx
-------------------
Xxxx X. Xxxxxxxxx
President
-55-
FIRST UNION NATIONAL BANK
By: /s/ R. Xxxxxxx Xxxxxx
---------------------
R. Xxxxxxx Xxxxxx
Vice President
-56-
SCHEDULE I
----------
HALLWOOD ENERGY PARTNERS, XX
XXXXXXXX LA PLATA, L.L.C.
HALLWOOD PETROLEUM, INC.
HEP PURE ACQUISITION, LLC
HEP PURE, XX
XX XXXXX ASSOCIATES, L.L.C.
PK I, L.P.
XX XX, L.P.
PK III, L.P.
XX XX, L.P.
PURE GP, LLC
PURE RESOURCES HOLDINGS, INC.
PURE RESOURCES I, INC.
PURE RESOURCES, L.P.
TITAN EXPLORATION, INC.
A-1
EXHIBIT A
[FACE OF SECURITY]
PURE RESOURCES, INC.
7 1/8% SERIES [A/B] NOTE DUE 2011
CUSIP ___________
No. __ $ 350,000,000
Pure Resources, Inc., a Delaware corporation (the "Company"), for value
received promises to pay to ______________ or registered assigns, the principal
sum of $350,000,000 on June 15, 2011 [or such greater or lesser amount as is
indicated on the Schedule of Exchanges of Securities on the other side of this
Security]./1/
Interest Payment Dates: June 15 and December 15
Record Dates: May 31 and November 30
Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place. Capitalized terms used
herein and not otherwise defined shall have the meanings ascribed to them in the
Indenture.
IN WITNESS WHEREOF, the Company has caused this Security to be signed
manually or by facsimile by its duly authorized officer.
Dated: PURE RESOURCES, INC.
By: _____________________________
Certificate of Authentication:
FIRST UNION NATIONAL BANK,
as Trustee, certifies that this is one of the Securities
referred to in the within-mentioned Indenture.
By: _________________________________
Authorized Signature
________________________
/1/ This phrase should be included only if the Security is a global Security.
A-1
[UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN
DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE
DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO
THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY
SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. THE DEPOSITORY TRUST COMPANY SHALL ACT AS THE DEPOSITARY UNTIL A
SUCCESSOR SHALL BE APPOINTED BY THE COMPANY AND THE REGISTRAR. 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.]/2/
[THIS SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION
EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (The
"SECURITIES ACT"), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER
OF THIS SECURITY MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION
5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.]
[THE HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I)
INSIDE THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT)
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF
CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
________________________
/2/This paragraph should be included only if the Security is issued in global
form.
A-2
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT
OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]/3/
______________________
/3/These paragraphs should be included only if the Security is a Transfer
Restricted Security.
A-3
[REVERSE OF SECURITY]
PURE RESOURCES, INC.
7 1/8% SERIES [A/B] NOTE DUE 2011
This Security is one of a duly authorized issue of 7 1/8% Series A/Series B
Notes due June 15, 2011 (the "Securities") of Pure Resources, Inc., a Delaware
corporation (the "Company").
1. Interest. The Company promises to pay interest on the principal amount
of this Security at 7 1/8% per annum from June 8, 2001 until maturity. The
Company will pay interest semiannually on June 15 and December 15 of each year
(each an "Interest Payment Date"), or if any such day is not a Business Day, on
the next succeeding Business Day. Interest on the Securities will accrue from
the most recent Interest Payment Date on which interest has been paid or, if no
interest has been paid, from June 8, 2001; provided that if there is no existing
Default in the payment of interest, and if this Security 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
December 15, 2001. The Company also promises to pay any additional interest
required by Section 6 of the Registration Rights Agreement (as defined in
paragraph 17 below), upon the conditions, at the rates and for the periods
specified therein. Further, the Company shall pay interest on overdue principal
and premium, if any, from time to time on demand at a rate equal to the interest
rate then in effect; it shall pay interest 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 will pay interest on the Securities
(except defaulted interest) to the Persons who are registered Holders of
Securities at the close of business on the record date next preceding the
Interest Payment Date, even if such Securities are canceled after such record
date and on or before such Interest Payment Date. The Holder must surrender
this Security to a Paying Agent to collect principal and premium, if any,
payments. The Company will pay the principal of, and premium, if any, and
interest on the Securities in money of the United States of America that at the
time of payment is legal tender for payment of public and private debts.
Payments to Holders of principal, premium, if any, and interest shall be paid by
wire transfer of immediately available funds to the accounts specified by the
Holders thereof or, if no such account is specified (or if a registered Holder
holds Securities in an aggregate principal amount of less than $1,000,000), by
mailing a check to each such Holder's registered address.
3. Ranking and Guarantees. The Securities are senior unsecured
obligations of the Company. The Company's obligations to pay principal,
premium, if any, and interest with respect to the Securities are unconditionally
guaranteed on a joint and several basis (the "Guarantees") by the guarantors
(the "Guarantors"), that are from time to time parties to the Indenture. Each
of the Guarantees is an unsecured obligation of the Guarantor providing such
Guarantee. Certain limitations to the obligations of the Guarantors, and
certain provisions for the
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release of the Guarantors, are set forth in further detail in the Indenture.
References herein to the Indenture or the Securities shall be deemed also to
refer to the Guarantees set forth in the Indenture except where the context
otherwise requires.
4. Optional Redemption. The Company may redeem all or part of the
Securities at any time at its option at a redemption price equal to the greater
of (1) the principal amount of the Securities being redeemed or (2) the Make-
Whole Amount for the Securities being redeemed plus, in each case, accrued and
unpaid interest to the redemption date (the "Redemption Price").
As used in this Security:
"Make Whole Amount" means the sum, as determined by a Quotation Agent,
of the present values of the principal amount of the Securities to be redeemed,
together with scheduled payments of interest (exclusive of interest to the
redemption date) from the Redemption Date to the maturity date of the Securities
being redeemed, in each case discounted to the Redemption Date on a semi-annual
basis, assuming a 360-day year consisting of twelve 30-day months, at the
Adjusted Treasury Rate.
"Adjusted Treasury Rate" means, with respect to any Redemption Date, (i)
the yield, under the heading which represents the average for the immediately
preceding week, appearing in the most recently published statistical release
designated "H.15 (519)" or any successor publication which is published weekly
by the Board of Governors of the Federal Reserve System and which establishes
yields on actively traded United States Treasury securities adjusted to constant
maturity under the caption "Treasury Constant Maturities," for the maturity
corresponding to the Comparable Treasury Issue (if no maturity is within three
months before or after the remaining term of the Securities being redeemed,
yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate
shall be interpolated or extrapolated from such yields on a straight line basis,
rounding to the nearest month) or (ii) if such release (or any successor
release) is not published during the week preceding the calculation date or does
not contain such yields, the rate per year equal to the semi-annual equivalent
yield to maturity of the Comparable Treasury Issue (expressed as a percentage of
its principal amount) equal to the Comparable Treasury Price for such Redemption
Date, in each case calculated on the third business day preceding the redemption
date, plus 0.25%.
"Comparable Treasury Issue" means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the remaining
term from the Redemption Date to the maturity date of the Securities that would
be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the notes.
"Comparable Treasury Price" means, with respect to any Redemption Date, if
clause (ii) of the Adjusted Treasury Rate is applicable, the average of three,
or such lesser number as is obtained by the Trustee, Reference Treasury Dealer
Quotations for such Redemption Date.
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"Quotation Agent" means the Reference Treasury Dealer selected by the
Trustee after consultation with the Company.
"Reference Treasury Dealer" means any of Credit Suisse First Boston
Corporation and its successors and assigns and two other nationally recognized
investment banking firms selected by the Company that are primary U.S.
Government securities dealers.
"Reference Treasury Dealer Quotations" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Trustee, of the bid and asked prices for the Comparable Treasury Issue,
expressed in each case as a percentage of its principal amount, quoted in
writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York
City time, on the third Business Day preceding such redemption date.
5. Paying Agent and Registrar. Initially, First Union National Bank (the
"Trustee"), the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent, Registrar, co-registrar or
additional paying agent without notice to any Holder. The Company may act in
any such capacity.
6. Indenture. The Company issued the Securities under an Indenture dated
as of June 8, 2001 (the "Indenture") among the Company, the Guarantors and the
Trustee. The terms of the Securities 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 Sections 77aaa-77bbbb), as in effect on the date
of execution of the Indenture. The Securities are subject to all such terms,
and Holders are referred to the Indenture and such Act for a statement of such
terms. The Securities are unsecured general obligations of the Company limited
to $350,000,000 in aggregate principal amount in the case of the Notes issued on
the Issue Date (as defined in the Indenture).
7. Denominations, Transfer, Exchange. The Securities are in registered
form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Securities may be registered and Securities may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and to pay any taxes and fees required by law or permitted by
the Indenture. The Registrar need not exchange or register the transfer of any
Securities during the period between a record date and the corresponding
Interest Payment Date.
8. Persons Deemed Owners. The registered Holder of a Security shall be
treated as its owner for all purposes.
9. Amendments and Waivers. Except as otherwise provided in Section 8.02
of the Indenture, the Company, the Guarantors and the Trustee may amend or
supplement the Indenture and the Securities with the written consent (including
consents obtained in connection with a tender offer or exchange offer for
Securities or a solicitation of consents in respect of Securities, provided that
in each case such offer or solicitation is made to all Holders of then
outstanding Securities on equal terms) of the Holders of at least a majority in
principal amount of the then outstanding Securities. Subject to Sections 5.07
and 8.02 of the Indenture, the Holders of a majority in principal amount of the
then outstanding Securities by notice to the Trustee may
A-6
waive an existing Default or Event of Default and its consequences (including
waivers obtained in connection with a tender offer or exchange offer for
Securities or a solicitation of consents in respect of Securities, provided that
in each case such offer or solicitation is made to all Holders of then
outstanding Securities on equal terms), except (1) a continuing Default or Event
of Default in the payment of the principal of, or premium, if any, or interest
on any Security or (2) a continuing Default in respect of a provision that under
Section 8.02 of the Indenture cannot be amended with the consent of each Holder
affected. Without the consent of any Holder, the Company, the Guarantors and the
Trustee may amend or supplement the Indenture or the Securities or waive any
provision of the Indenture or the Securities: to cure any ambiguity, omission,
defect or inconsistency; to provide for uncertificated Securities in addition to
or in place of certificated Securities; to comply with Sections 4.01 and 4.02 of
the Indenture; to reflect the release of any Guarantor from its Guarantee, or
the addition of any Subsidiary of the Company as a Guarantor, in the manner
provided by Section 9.06 of the Indenture; to comply with any requirement in
order to effect or maintain the qualification of this Indenture under the Trust
Indenture Act of 1939, as amended (the "TIA"); to add additional guarantees of
the Securities; to comply with any requirements of the SEC in connection with
qualifying the Indenture under the TIA; to add to the covenants of the Company
or any Guarantor for the benefit of the Holders or to surrender any right
conferred upon the Company or any Guarantor in the Indenture; or to make any
change that does not adversely affect the rights of any Holder in any material
respect.
10. Defaults and Remedies. If an Event of Default (other than an Event of
Default specified in clause (6) or (7) of Section 5.01 of the Indenture with
respect to the Company or any Material Subsidiary) occurs and is continuing, the
Trustee by notice to the Company, or the Holders of at least 25% in principal
amount of the then outstanding Securities by notice to the Company and the
Trustee, may declare the principal of and premium, if any, and accrued and
unpaid interest on all then outstanding Securities to be due and payable
immediately. If an Event of Default specified in clause (6) or (7) of Section
5.01 of the Indenture with respect to the Company or any Material Subsidiary
occurs, such amounts shall ipso facto become and be immediately due and payable
without any declaration, notice or other act on the part of the Trustee or any
Holder. The Holders of a majority in principal amount of the then outstanding
Securities by written notice to the Trustee may rescind an acceleration and its
consequences (other than nonpayment of principal of, or premium, if any, or
interest on the Securities) if the rescission would not conflict with any
judgment or decree and if all existing Events of Default have been cured or
waived, except nonpayment of principal, or premium, if any, or interest that has
become due solely because of the acceleration. Holders may not enforce the
Indenture or the Securities except as provided in the Indenture. The Trustee may
refuse to perform any duty or exercise any right or power unless it receives
indemnity reasonably satisfactory to it against any loss, liability or expense.
Except in the case of a Default or Event of Default in payment of principal of,
or premium, if any, or interest on any Security, the Trustee may withhold notice
of the Default or Event of Default if and so long as a committee of its Trust
Officers in good faith determines that withholding the notice is in the
interests of Holders. The Company must furnish an annual compliance certificate
to the Trustee, as more fully described in Section 3.04 of the Indenture.
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11. Discharge Prior to Maturity. As more fully described in, and subject
to, Article VII of the Indenture, the Indenture shall be discharged and canceled
upon the payment of all of the Securities and shall be discharged except for
certain obligations upon the irrevocable deposit with the Trustee of funds or
U.S. Government Obligations sufficient for such payment.
12. Trustee Dealings with Company and Guarantors. The Trustee in its
individual or any other capacity may become the owner or pledgee of Securities
and may otherwise deal with the Company, the Guarantors or any of their
Affiliates with the same rights it would have if it were not Trustee.
13. No Recourse Against Others. A director, officer, employee or
stockholder, as such, of the Company or any Guarantor shall not have any
liability for any obligations of the Company or such Guarantor under the
Securities 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
Security waives and releases all such liability. The waiver and release are
part of the consideration for the issuance of the Securities.
14. Authentication. This Security shall not be valid until authenticated
by the manual signature of the Trustee or an authenticating agent.
15. 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 Securities as a convenience to the Holders of
the Securities. No representation is made as to the accuracy of such numbers as
printed on the Securities and reliance may be placed only on the other
identification numbers printed thereon.
16. 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).
17. Additional Rights of Holders of Transfer Restricted Securities. In
addition to the rights provided to Holders of Securities under the Indenture,
Holders of Transfer Restricted Securities shall have all the rights set forth in
the Registration Rights Agreement relating to such Securities (the "Registration
Rights Agreement"), among the Company, the Guarantors named therein and the
Initial Purchasers.
THE COMPANY WILL FURNISH TO ANY HOLDER UPON WRITTEN REQUEST AND WITHOUT
CHARGE A COPY OF THE INDENTURE. REQUEST MAY BE MADE TO:
PURE RESOURCES, INC.
000 XXXX XXXXXXXX
XXXXXXX, XXXXX 00000
ATTENTION: CORPORATE SECRETARY
A-8
FORM OF NOTATION ON SECURITY
RELATING TO GUARANTEES
Each Guarantor (which term includes any successor Person under the
Indenture), has fully, unconditionally and absolutely guaranteed, to the extent
set forth in the Indenture and subject to the provisions in the Indenture, the
due and punctual payment of the principal of, and premium, if any, and interest
on the Securities and all other amounts due and payable under the Indenture and
the Securities by the Company.
The obligations of the Guarantors to the Holders of Securities and to the
Trustee pursuant to the Guarantees and the Indenture are expressly set forth in
Article 9 of the Indenture and reference is hereby made to the Indenture for the
precise terms of the Guarantees.
TITAN EXPLORATION, INC.
PURE RESOURCES I, INC.
HALLWOOD PETROLEUM, INC.
PURE GP, LLC
HEP PURE ACQUISITION, LLC
By:_____________________________
PURE RESOURCES HOLDINGS, INC.
PURE RESOURCES HOLDINGS, LLC
By:_____________________________
Name:
Title:
A-9
PURE RESOURCES, L.P.
PK I, L.P.
XX XX, L.P.
PK III, L.P.
XX XX, L.P.
By: PURE RESOURCES I, INC.,
its general partner
By:_____________________________
HEP PURE, LP
By: PURE GP, LLC, its general partner
By:_____________________________
HALLWOOD ENERGY PARTNERS, L.P.
By: HEP PURE ACQUISITION, LLC,
its general partner
By:_____________________________
X-00
XX XXXXX ASSOCIATES, LLC
HALLWOOD LA PLATA, LLC
By: HALLWOOD PETROLEUM, INC., its
manager
By:___________________________
A-11
ASSIGNMENT FORM
To assign this Security, fill in the form below: (I) or (we) assign and
transfer this Security to _________________________________________
______________________________________________________________________________
(Insert assignee's social security or tax I.D. number)
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
(Print or type assignee's name, address and zip code)
and irrevocably appoint _______________________________________________________
as agent to transfer this Security 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 Security)
Signature Guarantee:
____________________________________________________________
(Participant in a Recognized Signature Guaranty Medallion Program)
A-12
SCHEDULE OF EXCHANGES OF SECURITIES*
The following exchanges, redemptions or repurchases of a part of this Global
Security have been made:
Date of Amount of Amount of Principal Signature of
Transaction decrease in increase in Amount of authorized
Principal Principal Global Security Officer, Trustee
Amount of Amount of following or Security
Global Security Global Security decrease (or Custodian
increase)
________________________
* This should be included only if the Security is issued in global form.
A-13
EXHIBIT B
CERTIFICATE TO BE DELIVERED UPON EXCHANGE
OR REGISTRATION OF TRANSFER OF SECURITIES
First Union National Bank, as Trustee
Corporate Trust Group
0000 Xxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Re: 7 1/8% Series [A/B] Notes due 2011 of Pure Resources, Inc.
This Certificate relates to $_____ principal amount of Securities held in
*______ book-entry or *______ definitive form by _____________________ (the
"Transferor").
The Transferor*:
[_] has requested the Trustee by written order to deliver in exchange for
its beneficial interest in the Global Securities held by the Depositary a
Definitive Security or Securities equal to its beneficial interest in such
Global Securities (or the portion thereof indicated above); or
[_] has requested the Trustee by written order to exchange or register the
transfer of a Definitive Security or Securities.
In connection with such request and in respect of each such Security, the
Transferor does hereby certify that the Transferor is familiar with the
Indenture relative to the above captioned Securities and that the transfer of
this Security complies with any applicable blue sky securities laws of any state
of the United States and does not require registration under the Securities Act
(as defined below) because:*
[_] Such Security is being acquired for the Transferor's own account
without transfer (in satisfaction of Section 2.06(a)(ii)(A) or Section
2.06(d)(i)(A) of the Indenture).
[_] Such Security is being transferred (i) to a "qualified institutional
buyer" (as defined in Rule 144A under the Securities Act of 1933, as amended
(the "Securities Act")), in reliance on Rule 144A under the Securities Act or
(ii) pursuant to an exemption from registration in accordance with Rule 904
under the Securities Act (and in the case of clause (ii), based on an opinion of
counsel if the Company so requests and together with a certification in
substantially the form of Exhibit D to the Indenture).
[_] Such Security is being transferred (i) in accordance with Rule 144
under the Securities Act (and based on an opinion of counsel if the Company so
requests) or (ii) pursuant to an effective registration statement under the
Securities Act.
[_] Such Security is being transferred to an institutional "accredited
investor" within the meaning of Rule 501(a)(1), (2), (3) or (7) under the
Securities Act pursuant to a private
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placement exemption from the registration requirements of the Securities Act
(and based on an opinion of counsel if the Company so requests) together with a
certification in substantially the form of Exhibit C to the Indenture.
[_] Such Security is being transferred in reliance on and in compliance
with another exemption from the registration requirements of the Securities Act
(and based on an opinion of counsel if the Company so requests).
________________________________________
[INSERT NAME OF TRANSFEROR]
By:_____________________________________
Name:
Title:
Address:
Date:_____________________
__________________________
*Check applicable blank or box.
B-2
EXHIBIT C
FORM OF TRANSFEREE LETTER OF REPRESENTATION
TO BE DELIVERED BY INSTITUTIONAL ACCREDITED INVESTORS
First Union National Bank, as Trustee
Corporate Trust Group
0000 Xxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Dear Sirs:
In connection with the proposed transfer to us of $ ___________ aggregate
principal amount of the 7 1/8% Notes due 2011 (the "Notes") of Pure Resources,
Inc., a Delaware corporation (the "Company"), we confirm that:
1. We understand that the Notes have not been registered under the
Securities Act of 1933, as amended (the "Securities Act"), or other applicable
securities laws, and may not be offered, sold or otherwise transferred except as
permitted in the following sentence. We agree on our behalf and on behalf of
any investor account for which we are purchasing Notes to offer, sell or
otherwise transfer such Notes prior to the date which is two years after the
later of the date of original issue thereof and the last date on which the
company or any "affiliate" of the Company was the owner of such Notes (or any
predecessor thereto) (the "Resale Restriction Termination Date") only (a) to the
Company, (b) pursuant to a registration statement which has been declared
effective under the Securities Act, (c) so long as the Notes are eligible for
resale pursuant to Rule 144A under the Securities Act, to a person we reasonably
believe is a "Qualified Institutional Buyer" (a "QIB") as defined in Rule 144A
under the Securities Act that purchases for its own account or for the account
of a QIB to whom notice is given that the transfer is being made in reliance on
rule 144A, (d) pursuant to offers and sales to non-U.S.. Persons that occur
outside the United States within the meaning of Regulation S under the
Securities Act, (e) to an institutional "accredited investor" (an "Institutional
Accredited Investor") within the meaning of subparagraph (a)(1), (2), (3) or (7)
of Rule 501 under the Securities Act that is acquiring the notes for its own
account or for the account of such an Institutional Accredited Investor for
investment purposes and not with a view to, or for offer or sale in connection
with, any distribution in violation of the Securities Act or (f) pursuant to any
other available exemption from the registration requirements of the Securities
Act, subject to the Company's and the Trustee's right prior to any such offer,
sale or transfer (i) pursuant to clause (d), (e) or (f) above to require the
delivery of an opinion of counsel, certifications and/or other information
satisfactory to each of them and (ii) in each of the foregoing cases to require
that a certificate of transfer in the form appearing in the indenture for the
Notes is completed and delivered by the transferor to the Trustee.
2. We are an Institutional Accredited Investor purchasing for our own
account or for the account of an Institutional Accredited Investor over which we
exercise sole investment discretion for investment purposes and not with a view
to, or for offer or sale in connection with, any
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distribution in violation of the Securities Act or any other applicable
securities laws and we have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of our
investment in the Notes, and we and any accounts for which we are acting are
each able to bear the economic risk of our or its investment for an indefinite
period.
3. You are entitled to rely upon the acknowledgments, representations and
agreements set forth in this letter and you are irrevocably authorized to
produce this letter or a copy hereof to any interested party in any
administrative or legal proceeding or official inquiry with respect to the
matters covered hereby, and we agree to notify you promptly in writing if any of
our representations and warranties herein cease to be accurate and complete.
Very truly yours,
Name of Transferee: ___________________
By: ___________________________________
Date: _________________________________
Upon transfer the Notes would be registered in the name of the new
beneficial owner as follows:
Name: __________________________
Address: ______________________________________________
Taxpayer ID No: _______________
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EXHIBIT D
FORM OF CERTIFICATE TO BE DELIVERED IN CONNECTION
WITH TRANSFERS PURSUANT TO REGULATION S
_____________, ____
First Union National Bank, as Trustee
Corporate Trust Group
0000 Xxx Xxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Ladies and Gentlemen:
In connection with our proposed sale of certain 7 1/8% Series [A/B] Notes
due 2011 (the "Securities") of Pure Resources, Inc., a Delaware corporation (the
"Company"), we represent that:
(i) the offer of the Securities was not made to a person in the
United States;
(ii) at the time the buy order was originated, the transferee was
outside the United States or we and any person acting on our behalf
reasonably believed that the transferee was outside the United States;
(iii) no directed selling efforts have been made by us in the United
States in contravention of the requirements of Rule 903(b) or Rule 904(b)
of Regulation S under the U.S. Securities Act of 1933, as applicable; and
(iv) the transaction is not part of a plan or scheme to evade the
registration requirements of the U.S. Securities Act of 1933.
You and the Company are entitled to rely upon the acknowledgements,
representations and agreements set forth in this letter and you are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this certificate have the meanings set
forth in Regulation S under the U.S. Securities Act of 1933.
Very truly yours,
___________________________
[Name]
By: _______________________
Name:
Title:
Address:
D-1
EXHIBIT E
FORM OF SUPPLEMENTAL INDENTURE
Supplemental Indenture (this "Supplemental Indenture"), dated as of
____________ between_________________, a __________ (the "New Guarantor"), a
subsidiary of Pure Resources, Inc., a Delaware corporation (the "Company"), and
First Union National Bank, as trustee under the indenture referred to below (the
"Trustee"). Capitalized terms used herein and not defined herein shall have the
meaning ascribed to them in the Indenture (as defined below).
W I T N E S S E T H
WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture (as amended or supplemented from time to time, the
"Indenture"), dated as of June ___, 2001, providing for the initial issuance of
an aggregate principal amount of $350,000,000 of 7 1/8% Senior Notes due 2011
(the "Notes");
WHEREAS, Section 9.05 of the Indenture provides that under certain
circumstances the Company must cause certain of its subsidiaries to execute and
deliver to the Trustee a supplemental indenture pursuant to which such
subsidiaries shall unconditionally guarantee all of the Company's obligations
under the Notes pursuant to a Guarantee on the terms and conditions set forth
herein; and
WHEREAS, pursuant to Section 9.05 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture;
NOW, THEREFORE, in consideration of the foregoing and for other good
and valuable consideration, the receipt of which are hereby acknowledged, the
New Guarantor and the Trustee mutually covenant and agree for the equal and
ratable benefit of the Holders of the Notes as follows:
1. Capitalized Terms. Capitalized terms used herein without
definition shall have the meanings ascribed to them in the Indenture.
2. Agreement to Guarantee. The New Guarantor hereby fully,
unconditionally and absolutely guarantees, jointly and severally with all other
Guarantors, the Company's obligations under the Notes and the Indenture on the
terms and subject to the conditions set forth in Article 9 of the Indenture and
agrees to be bound by all other applicable provisions of the Indenture.
3. No Recourse Against Others. No past, present or future director,
officer, employee, incorporator, shareholder or agent of any Guarantor, as such,
shall have any liability for any obligations of the Company or any Guarantor
under the Notes, any Guarantees, the Indenture or this Supplemental 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. The waiver and release are part of the consideration for issuance of
the Notes.
4. New York Law to Govern. The laws of the State of New York shall
govern and be used to construe this Supplemental Indenture.
5. Counterparts. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.
6. Effect of Headings. The Section headings herein are for
convenience only and shall not affect the construction hereof.
7. The Trustee. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the correctness of the recitals of fact
contained herein, all of which recitals are made solely by the New Guarantor.
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental
Indenture to be duly executed and attested, all as of the date first above
written.
Dated: __________________ [Name of New Subsidiary Guarantor]
By:________________________________
Name:
Title:
Dated: __________________ [____________________]
as Trustee
By:________________________________
Name:
Title:
