ZERO COUPON NON-RECOURSE SECURED NOTES DUE 2055 INDENTURE Dated as of April 13, 2005 JPMORGAN CHASE BANK, N.A., as Trustee
Exhibit
4.3
$149,000,000
ZERO
COUPON NON-RECOURSE SECURED NOTES DUE 2055
______________________________
Dated
as
of April 13, 2005
______________________________
JPMORGAN
CHASE BANK, N.A.,
as
Trustee
This
INDENTURE dated as of April 13, 2005, is by and between NEXTWAVE WIRELESS LLC,
a
Delaware limited liability company (the “Company”),
and
JPMORGAN CHASE BANK, N.A., a national banking association, as trustee (the
“Trustee”).
RECITALS
WHEREAS,
the Company was formed on December 29, 2004 to facilitate the implementation
of
the Second Modified Third Joint Plan of Reorganization of NextWave Personal
Communications Inc., NextWave Power Partners Inc., NextWave Partners Inc.,
NextWave Wireless Inc. and NextWave Telecom Inc (the “Plan”)
upon
confirmation thereof by the Bankruptcy Court (as defined herein);
WHEREAS,
the Plan was confirmed by the Bankruptcy Court on March 1, 2005 and became
effective on April 13, 2005;
WHEREAS,
pursuant to the Plan, the Company is required to issue non-recourse notes in
an
aggregate principal amount of $149 million (the “Notes”)
to
holders of certain equity interests as more fully described in the
Plan;
WHEREAS,
the Notes shall entitle a Holder (as defined herein) to receive payment of
a
principal amount as set forth in the Plan, which amount represents all of the
Company’s entitlement with respect to the Verizon Escrow Amount (as defined
herein) net of any amounts required to be remitted to the Federal Communications
Commission;
WHEREAS,
for Federal income tax purposes, it is intended that the Holders shall be
treated as holding a direct beneficial interest in, and as the tax owners of,
any entitlements, which, but for the Holders’ rights, the Company would have
with respect to the Verizon Escrow Amount, which entitlements shall remain
subject to a first-priority security interest held by Verizon Wireless (as
defined herein) and VZW Corp. in the Verizon Escrow Account (as defined herein)
which security interest shall cease and have no effect with respect to any
Released Escrow Amount; and
WHEREAS,
the Company has duly authorized the issuance of the Notes, and to provide
therefor the Company has duly authorized the execution and delivery of this
Indenture, the Pledge, Assignment and Security Agreement (as defined herein)
and
certain security and other documents related thereto.
NOW,
THEREFORE, THIS INDENTURE WITNESSETH:
The
Company and the Trustee agree as follows for the benefit of each other and
for
the equal and ratable benefit of the Holders of the Notes issued under this
Indenture:
ARTICLE
1.
DEFINITIONS
AND INCORPORATION BY REFERENCE
Section
1.01. Definitions.
For
all
purposes of this Indenture, except as otherwise expressly provided or unless
the
context otherwise requires:
“Acquisition
Agreement”
means
the Acquisition Agreement, dated as of November 4, 2004, among NextWave Telecom
Inc., VZW Corp. and Verizon Wireless, as approved by the Bankruptcy Court,
as
such agreement may be amended from time to time.
“Acquisition
Closing”
means
the closing of the transactions contemplated by the Acquisition Agreement.
“Acquisition
Closing Date”
means
the date on which the Acquisition Closing occurs.
“Agent”
means
any Registrar, co-registrar, Paying Agent or additional paying
agent.
“Applicable
Procedures”
means,
with respect to any transfer, redemption or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary that
apply to such transfer, redemption or exchange.
“Bankruptcy
Court”
means
the United States Bankruptcy Court for the Southern District of New York (White
Plains).
“Board
of Directors”
means
(1) in respect of a corporation, the board of directors of the corporation,
or
any duly authorized committee thereof; and (2) in respect of any other Person,
the board or committee of that Person serving an equivalent
function.
“Board
Resolution”
of a
Person means a copy of a resolution certified by the secretary or an assistant
secretary (or individual performing comparable duties) of the applicable Person
to have been duly adopted by the Board of Directors of such Person and to be
in
full force and effect on the date of such certification, and delivered to the
Trustee.
“Business
Day”
means
any day excluding Saturday, Sunday and any day which is a legal holiday under
the laws of the State of New York or is a day on which banking institutions
located in such state are required or authorized by law or other governmental
action to close.
“Cancellation
Date”
means
the fifth Business Day following the Verizon Escrow Termination Date, provided
that any unpaid Released Escrow Amount is paid to the account of any Holder
of
Notes prior to cancellation.
“Code”
means
the U.S. Internal Revenue Code of 1986, as amended.
“Collateral”
means
any and all “Collateral” as defined in the Pledge, Assignment and Security
Agreement.
“Commission”
means
the United States Securities and Exchange Commission.
“Company”
means
NextWave Wireless LLC, a Delaware limited liability company, and any successor
or assign thereto.
“Company
Request”
or
“Company
Order”
means
a
written request or order signed in the name of the Company by any Officer and
delivered to the Trustee.
“Corporate
Trust Office of the Trustee”
shall
be at the address of the Trustee specified in Section 13.02 hereof, or such
other address as to which the Trustee may give notice to the
Company.
“Custodian”
means
any Person authorized by the Company to serve as custodian with respect to
the
Notes in global form, or any successor entity thereto.
“Default”
means
any event which is, or after notice or passage of time or both would be, an
Event of Default.
2
“Definitive
Note”
means
a
certificated Note registered in the name of the Holder thereof and issued in
accordance with Sections 2.02(d), 2.05 or 2.10 hereof, in substantially the
form
of Exhibit A hereto, except that such Note shall not bear the Global Note Legend
and shall not have the “Schedule of Exchanges of Interests in the Global Note”
attached thereto.
“Depositary”
means,
with respect to the Notes issuable or issued in whole or in part in global
form,
any Person authorized by the Company to serve as the Depositary with respect
to
the Notes, until a successor shall have been appointed and become such pursuant
to the applicable provision of this Indenture and, thereafter, “Depositary”
shall mean or include such successor.
“dollars”
or
“$”
refers
to lawful money of the United States of America.
“Exchange
Act”
means
the Securities Exchange Act of 1934, as amended.
“GAAP”
means
generally accepted accounting principles in the United States of America,
including those 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 approved by a significant segment
of the accounting profession as may from time to time be in effect.
“Global
Note Legend”
means
the legend set forth in Section 2.06, which is required to be placed on all
Global Notes issued under this Indenture.
“Global
Note”
means
a
Note substantially in the form of the Note attached hereto as Exhibit A.
“Holder”
means
a
Person in whose name a Note is registered in the Security Register.
“Indenture”
means
this instrument, as originally executed or as it may from time to time be
supplemented or amended in accordance with Article 8 hereof.
“Indirect
Participant”
means
a
Person who holds a beneficial interest in a Global Note through a
Participant.
“Instruction
Letter”
means
a
letter of instructions from the Company to the Verizon Escrow Agent in the
form
of Schedule C to the Pledge, Assignment and Security Agreement.
“Issue
Date”
means
April 13, 2005.
“Maturity
Date”
means
April 13, 2055.
“Notes”
has
the
meaning set forth in the recitals to this Indenture.
“Notes
Escrow Account”
means
an account to be established on or prior to the Acquisition Closing Date by
the
Trustee to hold, for the benefit of the Holders, the Released Escrow Amount
and
Tax Distribution Amounts.
“Notes
Escrow Documents”
means
any agreement, document or instrument, including this Indenture, the Notes
and
the Pledge, Assignment and Security Agreement, as may be required to facilitate
(i) the issuance of the Notes and (ii) the establishment of the Notes Escrow
Account and the granting of a first-priority security interest in the Collateral
to the Holders.
3
“Obligations”
means
all obligations for principal, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under this Indenture,
the
Notes or the Notes Escrow Documents.
“Officer”
means
the Chief Executive Officer, the President, the Chief Financial Officer, any
Executive Vice President or any Vice President of the Company.
“Officers’
Certificate”
means
a
certificate signed by two Officers of the Company, at least one of whom shall
be
the principal executive officer or principal financial officer of the Company,
and delivered to the Trustee.
“Opinion
of Counsel”
means
a
written opinion of counsel, who may (unless otherwise required by the TIA)
be
counsel for the Company, and who shall be reasonably acceptable to the
Trustee.
“Participant”
means,
with respect to the Depositary, a Person who has an account with the
Depositary.
“Person”
means
any individual, corporation, company (including any limited liability company),
association, partnership, joint venture, trust, unincorporated organization,
government or any agency or political subdivision thereof or any other
entity.
“Pledge,
Assignment and Security Agreement”
means
the Pledge, Assignment and Security Agreement, dated as of April 13, 2005,
substantially in the form of Exhibit C hereto, by and between the Company and
the Trustee, as such agreement may be amended from time to time.
“Predecessor
Note” of
any
particular Note means every previous Note evidencing all or a portion of the
same debt as that evidenced by such particular Note; and any Note authenticated
and delivered under Section 2.08 in lieu of a lost, destroyed or stolen Note
shall be deemed to evidence the same debt as the lost, destroyed or stolen
Note.
“Redemption
Date,”
when
used with respect to any Note to be redeemed means the date fixed from time
to
time for such redemption by or pursuant to this Indenture, whether in whole
or
in part.
“Redemption
Price,”
when
used with respect to any Note to be redeemed, means the price at which it is
to
be redeemed pursuant to this Indenture.
“Released
Escrow Amount”
means
any and all funds released from time to time from the Verizon Escrow Account
to
the Company, or directly to the Notes Escrow Account pursuant to the Company’s
written instructions in the Instruction Letter, in each case but only pursuant
to the terms and conditions of the Verizon Escrow Agreement, but excluding
(i)
any funds released under Section 3 of the Verizon Escrow Agreement which are
payable to the Federal Communications Commission (or any successor entity
thereto) or (ii) any Tax Distribution Amounts.
“Responsible
Officer,”
when
used with respect to the Trustee, means any officer within the Conventional
Debt
Unit of the Institutional Trust Services department of the Trustee (or any
successor unit or department of the Trustee) located at the Corporate Trust
Office of the Trustee who has direct responsibility for the administration
of
this Indenture and, for purposes of Sections 5.01(c)(ii) and 5.14 hereof, means
any other officer to whom such matter is referred because of his or her
knowledge of and familiarity with the particular subject.
“Securities
Act”
means
the Securities Act of 1933, as amended.
4
“Subsidiary,”
with
respect to any Person, means (i) any corporation of which the outstanding
Capital Stock having at least a majority of the votes entitled to be cast in
the
election of directors under ordinary circumstances shall at the time be owned,
directly or indirectly, through one or more intermediaries, by such Person
or
(ii) any other Person of which at least a majority of the voting interest under
ordinary circumstances is at the time, directly or indirectly, through one
or
more intermediaries, owned by such Person.
“Tax
Distribution Amounts”
means
any and all funds released from time to time from the Verizon Escrow Account
to
the Company, or directly to the Notes Escrow Account pursuant to the Company’s
written instruction in the Instruction Letter, pursuant to Section 20(b) of
the
Verizon Escrow Agreement.
“TIA”
means
the Trust Indenture Act of 1939, as amended, and the rules and regulations
thereunder.
“Trustee”
means
the Person named as the “Trustee” in the first paragraph of this Indenture until
a successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Trustee” shall mean such successor
Trustee.
“U.S.
Government Securities”
means
direct obligations (or certificates representing an ownership interest in such
obligations) of the United States of America (including any agency or
instrumentality thereof) for the payment of which the full faith and credit
of
the United States of America is pledged and which are not callable or redeemable
at the issuer’s option.
“Verizon
Escrow Account”
means
the separate escrow account to be maintained by the Verizon Escrow Agent under
the Verizon Escrow Agreement to hold the Verizon Escrow Amount, which account
shall be subject to a first-priority perfected security interest held by Verizon
Wireless and AirTouch Cellular granted by the Trustee and the Company pursuant
to the Verizon/Trustee Security Agreement.
“Verizon
Escrow Agent”
means
JPMorgan Chase Bank, N.A., as escrow agent under the Verizon Escrow
Agreement.
“Verizon
Escrow Agreement”
means
that certain Escrow Agreement among CellCo Partnership d/b/a Verizon Wireless,
AirTouch Cellular, NextWave Wireless LLC, NextWave Telecom Inc. and JPMorgan
Chase Bank, N.A., dated as of April 13, 2005, as such agreement may be amended
from time to time.
“Verizon
Escrow Amount”
means
the funds in the escrow established under the Verizon Escrow
Agreement.
“Verizon
Escrow Termination Date”
means
the date on which the Verizon Escrow Agreement is terminated in accordance
with
its terms.
“Verizon/NextWave
Security Agreement”
means
that certain Security Agreement, dated as of April 13, 2005, between NextWave
Wireless LLC and Cellco Partnership d/b/a Verizon Wireless, as agent for itself
and AirTouch Cellular, as such agreement may be amended from time to
time.
“Verizon/Trustee
Security Agreement”
means
that certain Security Agreement entered into among JPMorgan Chase Bank, N.A.,
as
Trustee, Cellco Partnership d/b/a Verizon Wireless, as agent for itself and
AirTouch Cellular, on April 13, 2005, as such agreement may be amended from
time
to time.
“Verizon
Wireless”
means
Cellco Partnership d/b/a Verizon Wireless.
5
“Voting
Stock”
of
any
Person as of any date means the voting securities of that Person that is at
the
time entitled to vote in the election of that Person’s Board of
Directors.
Section
1.02. Other
Definitions.
Defined
in
|
||||
Term
|
Section
|
|||
“Authentication
Order”
|
2.02
|
|||
“CUSIP”
|
2.13
|
|||
“DTC”
|
2.03
|
|||
“Event
of Default”
|
4.01
|
|||
“Notice
of Default”
|
4.01
|
|||
“Paying
Agent”
|
2.03
|
|||
“Registrar”
|
2.03
|
|||
“Security
Register”
|
2.03
|
|||
“Surviving
Entity”
|
6.01
|
|||
Section
1.03. Incorporation
by Reference of Trust Indenture Act.
(a) Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.
(b) The
following TIA terms used in this Indenture have the following
meanings:
“indenture
securities”
means
the Notes;
“indenture
security holder”
means a
Holder of a Note;
“indenture
to be qualified”
means
this Indenture;
“indenture
trustee”
or
“institutional
trustee”
means
the Trustee; and
“obligor”
on the
Notes means the Company and any successor obligor upon the Notes.
(c) All
other
terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by Commission rule under the TIA and
not
otherwise defined herein have the meanings so assigned to them either in the
TIA, by another statute or Commission rule, as applicable.
Section
1.04. Rules
of Construction.
(a) Unless
the context otherwise requires:
(i) a
term
has the meaning assigned to it;
(ii) an
accounting term not otherwise defined herein 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;
6
(v) all
references in this instrument to “Articles,” “Sections” and other subdivisions
are to the designated Articles, Sections and subdivisions of this
Indenture;
(vi) the
words
“herein,” “hereof” and “hereunder” and other words of similar import refer to
this Indenture as a whole and not to any particular Article, Section or other
subdivision;
(vii) “including”
means “including without limitation;”
(viii) provisions
apply to successive events and transactions; and
(ix) references
to sections of or rules under the Securities Act, the Exchange Act or the TIA
shall be deemed to include substitute, replacement or successor sections or
rules adopted by the Commission from time to time thereunder.
ARTICLE
2.
THE
NOTES
Section
2.01. Form
and Dating.
(a) General.
The
Notes and the Trustee’s certificate of authentication shall be substantially in
the form included in Exhibit A hereto, which is hereby incorporated in and
expressly made part of this Indenture. The Notes may have notations, legends
or
endorsements required by law, stock exchange rule, Applicable Procedures or
usage, which the Company shall provide to the Trustee in writing, in addition
to
those set forth on Exhibit A and in Section 2.06, respectively. Each Note shall
be dated the date of its authentication. The Notes shall be in denominations
of
$1.00 and integral multiples thereof. The terms and provisions contained in
the
Notes shall constitute a part of this Indenture and the Company and the Trustee,
by their execution and delivery of this Indenture, expressly agree to such
terms
and provisions and to be bound thereby. To the extent any provision of any
Note
conflicts with the express provisions of this Indenture, the provisions of
this
Indenture shall govern and be controlling.
(b) Form
of Notes.
Notes
issued in global form shall be substantially in the form of Exhibit A attached
hereto (including the Global Note Legend and the “Schedule of Exchanges of
Interests in Global Notes” attached hereto as Exhibit B). Notes issued in
definitive form shall be substantially in the form of Exhibit A attached hereto
(but without including the Global Note Legend and the “Schedule of Exchanges of
Interests in Global Notes” attached hereto as Exhibit B). Each Global Note shall
represent such of the outstanding Notes as shall be specified therein, and
each
shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to
time
be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the amount of outstanding Notes represented thereby shall be made
by
the Trustee or the Custodian, at the direction of the Trustee, in accordance
with written instructions given by the Holder thereof as required by Section
2.05 hereof in such form as is reasonably satisfactory to the Trustee.
(c) Book-Entry
Provisions.
This
Section 2.01(c) shall apply only to Global Notes deposited with the Depositary
or with the Trustee, as custodian for the Depositary. Participants and Indirect
Participants shall have no rights under this Indenture or any Global Note with
respect to any Global Note held on their behalf by the Depositary or by the
Trustee as custodian for the Depositary, and the Depositary shall be treated
by
the Company, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Note for all purposes whatsoever. Notwithstanding
the foregoing, nothing herein shall prevent the Company, the Trustee or any
agent of the Company or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the Depositary or
impair, as between the Depositary and its Participants or Indirect Participants,
the Applicable Procedures or the operation of customary practices of the
Depositary governing the exercise of the rights of a holder of a beneficial
interest in any Global Note. None of the Company, the Trustee or any Agent
thereof shall have any responsibility or liability for any aspect of the records
relating to or payments made on account of beneficial ownership interests in
a
Global Note, or for maintaining, supervising or reviewing any records relating
to such beneficial ownership interests. The Company, the Trustee and each Agent
shall be entitled to deal with the Depositary, and any nominee thereof, for
all
purposes of this Indenture relating to a Global Note (including the payment
of
principal and the giving of instructions or directions by or to the owner or
holder of a beneficial ownership interest in such Global Note) as the sole
Holder of such Global Note and shall have no obligations to the beneficial
owners thereof. None of the Company, the Trustee or any Agent shall have any
responsibility or liability for any acts or omissions of the Depositary with
respect to a Global Note, for the records of the Depositary, including records
in respect of beneficial ownership interests in respect of such Global Security,
for any transactions between the Depositary and any Participant or between
or
among the Depositary, any Participant and/or any Indirect Participant and/or
holder or owner of a beneficial interest in a Global Note or for any transfers
of beneficial interests in such Global Note.
7
(d) Certificated
Securities.
The
Company shall exchange Global Notes for Definitive Notes if (i) at any time
the
Depositary notifies the Company that it is unwilling or unable to continue
to
act as Depositary for the Global Notes or if at any time the Depositary shall
no
longer be eligible to act as such because it ceases to be a clearing agency
registered under the Exchange Act, and, in either case, the Company shall not
have appointed a successor Depositary within 90 days after the Company receives
such notice or becomes aware of such ineligibility or (ii) upon written request
of a Holder with respect to any amount of Notes held by such Holder.
Notwithstanding any other provision in this Indenture, a Global Note issued
pursuant to the preceding sentence may be transferred only to, and may be
registered and exchanged for Notes registered only in the name or names of,
such
Person or Persons as the Depositary for such Global Note shall have directed,
and no transfer thereof other than such a transfer may be registered. Every
Note
authenticated and delivered upon registration or transfer of, or in exchange
for
or in lieu of, a Global Note issued pursuant to the first sentence of this
paragraph, whether pursuant to this Section 2.01(d) or otherwise, shall be
authenticated and delivered in the form of, and shall be, a Global
Note.
Upon
the
occurrence of any of the events set forth in the preceding paragraph, the
Company shall execute, and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee shall authenticate and deliver,
Definitive Notes, in authorized denominations, in an aggregate principal amount
up to the principal amount of the Global Notes in exchange or partial exchange
for such Global Notes.
Upon
the
exchange or partial exchange of a Global Note for Definitive Notes, such Global
Note shall be cancelled by the Trustee. Definitive Notes issued in exchange
for
a Global Note pursuant to this Section 2.01 shall be registered in such names
and in such authorized denominations as the Depositary, pursuant to instructions
from its Participants or its Applicable Procedures, shall instruct the Trustee
or an agent of the Company or the Trustee in writing. The Trustee or such agent
shall deliver such Definitive Notes to or as directed by the Persons in whose
names such Definitive Notes are so registered or to the Depositary.
Section
2.02. Execution
and Authentication.
(a) One
Officer shall execute the Notes on behalf of the Company by manual or facsimile
signature.
(b) If
an
Officer whose signature is on a Note no longer holds that office at the time
a
Note is authenticated by the Trustee, the Note shall nevertheless be
valid.
8
(c) A
Note
shall not be valid until authenticated by the manual signature of the Trustee.
The signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.
(d) The
Trustee shall, upon a written order of the Company signed by an Officer (an
“Authentication
Order”),
authenticate Notes for issuance.
(e) The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Notes. Unless otherwise provided in such appointment, an
authenticating agent may authenticate Notes whenever the Trustee may do so.
Each
reference in this Indenture to authentication by the Trustee includes
authentication by such agent. An authenticating agent shall have the same rights
as the Trustee to deal with Holders, the Company or an affiliate of the
Company.
Section
2.03. Registrar
and Paying Agent.
(a) The
Company shall maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”)
and an
office or agency where Notes may be presented for payment (“Paying
Agent”).
The
Registrar shall keep a register (the “Security
Register”)
of the
Notes and of their transfer and exchange. The Company may change any Registrar
without notice to any Holder. If the Company fails to appoint or maintain
another entity as Registrar, the Trustee shall act as such. Neither the Company
nor any of its Subsidiaries shall act as Paying Agent or Registrar.
(b) The
Company appoints The Depository Trust Company (“DTC”)
to act
as Depositary with respect to the Global Notes.
(c) The
Company appoints the Trustee to act as Registrar and Paying Agent and to act
as
Custodian with respect to the Global Notes, and the Trustee hereby agrees to
so
act.
(d) The
Company appoints the Corporate Trust Office of the Trustee as the office or
agency of the Company where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served and hereby appoints the
Trustee as its agent to receive such notices and demands.
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 shall hold in trust for the benefit of Holders
or
the Trustee all money held by the Paying Agent for the payment of principal
on
the Notes, and shall notify the Trustee of any default by the Company in making
any such payment. While any such default continues, the Trustee may require
a
Paying Agent to pay all funds held by it relating to the Notes to the Trustee.
The Company at any time may require a Paying Agent to pay all funds held by
it
to the Trustee. Upon payment over to the Trustee, the Paying Agent shall have
no
further liability for such paid funds.
Section
2.05. Transfer
and Exchange.
(a) Transfer
and Exchange of Definitive Notes.
When
Definitive Notes are presented by a Holder to the Registrar with a request
(1)
to register the transfer of the Definitive Notes or (2) to exchange such
Definitive Notes for an equal principal amount of Definitive Notes of other
authorized denominations, the Registrar shall register the transfer or make
the
exchange as requested if its requirements for such transactions are met;
provided
that
any
Definitive Notes presented or surrendered for registration of transfer or
exchange shall be duly endorsed or accompanied by a written instruction of
transfer in form reasonably satisfactory to the Registrar duly executed by
the
Holder thereof or by his attorney duly authorized in writing.
(b) Transfer
of a Definitive Note for a Beneficial Interest in the Global
Note.
A
Definitive Note may be exchanged for a beneficial interest in the Global Note
only upon receipt by the Trustee of a Definitive Note, duly endorsed or
accompanied by appropriate instruments of transfer, in form satisfactory to
the
Trustee, together with written instructions directing the Trustee pursuant
to
Applicable Procedures to make an endorsement on the Global Note to reflect
an
increase in the aggregate principal amount of the Notes represented by the
Global Note.
9
(c) Transfer
of a Beneficial Interest in a Global Note for a Definitive
Note.
A
beneficial interest in the Global Note may be exchanged for a Definitive Note
only under the circumstances described in Section 2.01(d) and upon receipt
by the Trustee of written transfer instructions (or such other form of
instructions as is customary for the Depositary) from the Depositary (or its
nominee) on behalf of any Person having a beneficial interest in a Global Note
that such Note is being transferred, in which case the Trustee shall, in
accordance with the standing instructions and procedures existing between the
Depositary and the Trustee, cause the aggregate principal amount of the Global
Note to be reduced accordingly and, following such reduction, the Company shall
execute and the Trustee shall authenticate and make available for delivery
to
the transferee a Definitive Note in the appropriate principal
amount.
(d) Transfer
and Exchange of Beneficial Interests in the Global
Note.
The
transfer and exchange of beneficial interests in the Global Note shall be
effected through the Depositary in accordance with this Indenture and the
procedures of the Depositary therefor, which shall include restrictions on
transfer, if any, comparable to those set forth herein to the extent required
by
the Securities Act.
When
a
Global Note is presented to the Registrar with a request (1) to register the
transfer of the Global Note or (2) to exchange such Global Notes for an equal
principal amount of Notes of other denominations, the Registrar shall register
the transfer or make the exchange if its requirements for such transactions
are
met; provided,
however,
that
any Note presented or surrendered for registration of transfer or exchange
shall
be duly endorsed or accompanied by a written instruction of transfer in form
satisfactory to the Registrar and the Trustee duly executed by the Holder
thereof or by his attorney duly authorized in writing. To permit registrations
of transfer and exchanges, the Company shall issue and the Trustee shall
authenticate Notes at the Registrar’s request, subject to such rules as the
Trustee may reasonably require.
(e) Cancellation
and/or Adjustment of the Global Note.
At such
time as all beneficial interests in the Global Note have either been exchanged
for Definitive Notes, redeemed, repurchased or canceled, the Global Note shall
be returned to or retained and canceled by the Trustee. At any time prior to
such cancellation, if any beneficial interest in the Global Note is exchanged
for Definitive Notes, redeemed, repurchased or canceled, the aggregate principal
amount of Notes represented by such Global Note shall be reduced accordingly,
and an endorsement shall be made on such Global Note by the Trustee or by the
Custodian at the direction of the Trustee to reflect such reduction.
(f) General
Provisions Relating to Transfers and Exchanges.
To
permit registrations of transfers and exchanges effected in accordance with
this
Indenture, the Company shall execute and the Trustee shall authenticate the
Global Note and any Definitive Notes at the Registrar’s request. The Global Note
and any Definitive Notes issued upon any registration of transfer or exchange
of
beneficial interests in the Global Note or the Definitive Notes shall be legal,
valid and binding obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Definitive Notes
or
Global Notes surrendered upon such registration of transfer or
exchange.
Neither
the Company nor the Registrar shall be required to (1) issue, register the
transfer of or exchange Notes during a period beginning at the opening of
business 15 days before the day of mailing of any notice of redemption of Notes
under Section 9.05 hereof and ending at the close of business on the day of
such
mailing or (2) register the transfer of or exchange any Note so selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part.
No
service fee shall be charged to any Holder of a Note for any registration of
transfer or exchange (except as otherwise expressly permitted herein), but
the
Company may require payment of a sum sufficient to cover any transfer tax or
similar governmental charge payable in connection therewith (other than such
transfer tax or similar governmental charge payable upon exchanges pursuant
to
Sections 2.07 or 2.10 hereof, which shall be paid by the Company).
10
Prior
to
due presentment to the Trustee for registration of the transfer of any Note,
the
Trustee, any Agent and the Company may deem and treat the Person in whose name
any Note is registered as the absolute owner of such Note for the purpose of
receiving payment of principal of such Note and for all other purposes
whatsoever, whether or not such Note is overdue, and none of the Trustee, any
Agent or the Company shall be affected by notice to the contrary.
The
Trustee shall authenticate Global Notes and Definitive Notes in accordance
with
the provisions of Sections 2.02 and 2.05 hereof.
All
certifications, certificates and Opinions of Counsel required to be submitted
to
the Registrar pursuant to this Section 2.05 to effect a registration of transfer
or exchange may be submitted by facsimile.
Neither
the Trustee nor any Agent shall have any obligation or duty to monitor,
determine or inquire as to compliance with any restrictions on transfer imposed
under this Indenture or under applicable law with respect to any transfer of
any
interest in any Note, (including any transfers between or among Participants,
Indirect Participants or beneficial owners of interests in any Global Note),
other than to require delivery of such certificates and other documentation
or
evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements
hereof.
The
Trustee is hereby authorized to enter into a letter of representation with
the
Depositary (should the Trustee’s execution and delivery of such a letter be
required) in the form provided by the Company and to act in accordance with
such
letter.
Section
2.06. Legend.
To
the
extent required by the Depositary, all Global Notes issued under this Indenture
shall bear a legend substantially in the form below:
“THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING
THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS
HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT
TO SECTIONS 2.01 AND 2.05 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED PURSUANT TO SECTION 2.05 OF THE INDENTURE, (III) THIS GLOBAL NOTE
MAY
BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY
WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.
UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM,
THIS
NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE
OF
THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER
NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST
COMPANY (55 XXXXX XXXXXX, XXX XXXX, XXX XXXX) (“DTC”), TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR 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.”
11
Section
2.07. Replacement
Notes.
If
any
mutilated Note is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of
any
Note, the Company shall issue and, upon receipt of an Authentication Order
in
accordance with Section 2.02 hereof, the Trustee shall authenticate a
replacement Note. If required by the Trustee or the Company, the Holder of
such
Note shall provide security or indemnity that is sufficient, in the judgment
of
the Trustee or the Company, to protect the Company, the Trustee, any Agent
and
any authenticating agent from any loss that any of them may suffer in connection
with such replacement. If required by the Company, such Holder shall reimburse
the Company for its reasonable expenses in connection with such replacement.
Every
replacement Note issued in accordance with this Section 2.07 shall be the valid
obligation of the Company, evidencing the same debt as the destroyed, lost
or
stolen Note, and shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued
hereunder.
Section
2.08. Outstanding
Notes.
(a) The
Notes
outstanding at any time shall be the entire principal amount of Notes
represented by all of the Global Notes and Definitive Notes authenticated by
the
Trustee except for those cancelled by it, those delivered to it for
cancellation, those subject to reductions in beneficial interests effected
by
the Trustee in accordance with Section 2.05 hereof, and those described in
this
Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof,
a
Note shall not cease to be outstanding because the Company or an affiliate
of
the Company holds the Note.
(b) If
a Note
is replaced pursuant to Section 2.07 hereof, it shall cease to be outstanding
unless the Company receives proof satisfactory to it that the replaced Note
is
held by a protected purchaser.
(c) If
the
principal amount of any Note is considered paid under Section 3.01 hereof,
it
shall cease to be outstanding.
(d) All
Notes
outstanding on the Cancellation Date shall be null, void and of no effect,
and
shall be surrendered to the Trustee in accordance with Section 2.11 and shall
thereafter be deemed to be no longer outstanding.
(e) If
the
Paying Agent holds on the Maturity Date funds sufficient to pay Notes payable
on
that date, then on and after that date such Notes shall be deemed to be no
longer outstanding.
12
Section
2.09. Treasury
Notes.
In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company,
or by
any affiliate of the Company, shall be considered as though not outstanding,
except that for the purposes of determining whether the Trustee shall be
protected in relying on any such direction, waiver or consent, only Notes that
a
Responsible Officer of the Trustee knows are so owned shall be so
disregarded.
Section
2.10. Temporary
Notes.
Until
certificates representing Notes are ready for delivery, the Company may prepare
and, upon receipt of an Authentication Order in accordance with Section 2.02
hereof, the Trustee shall authenticate temporary Notes. Temporary Notes shall
be
substantially in the form of Definitive Notes but may have variations that
the
Company considers appropriate for temporary Notes and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate Global Notes or Definitive Notes in exchange
for temporary Notes, as applicable. After preparation of Definitive Notes,
the
temporary Note will be exchangeable for Definitive Notes upon surrender of
the
temporary Notes.
Holders
of temporary Notes shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued
hereunder.
Section
2.11. Cancellation.
On
the
Cancellation Date, all outstanding Notes shall be null, void and of no effect,
and shall be surrendered to the Trustee for cancellation. In addition, the
Company at any time may deliver Notes to the Trustee for cancellation. The
Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
to
them for registration of transfer, exchange or payment. The Trustee and no
one
else shall cancel all Notes surrendered for registration of transfer, exchange,
payment, replacement or cancellation and shall dispose of cancelled Notes
(subject to the record retention requirements of the Exchange Act or other
applicable laws), in accordance with the Trustee’s then current practice, unless
by written order, signed by an Officer of the Company, the Company directs
them
to be returned to it. Certification of the disposition of all cancelled Notes
shall be delivered to the Company from time to time upon request. The Company
may not issue new Notes to replace Notes that it has paid or that have been
delivered to the Trustee for cancellation (other than Notes surrendered for
registration of transfer, exchange or replacement). Following cancellation
on
the Cancellation Date, all obligations of the Trustee with respect to this
Indenture will be discharged.
Section
2.12. Record
Date.
The
record date for purposes of determining the identity of Holders of Notes
entitled to vote or consent to any action by vote or consent or permitted under
this Indenture shall be determined as provided for in TIA Section
316(c).
Section
2.13. CUSIP
Numbers.
Pursuant
to a recommendation promulgated by the Committee on Uniform Security
Identification Procedures (“CUSIP”),
the
Company may cause CUSIP numbers to be printed on the Notes and may direct the
Trustee to use CUSIP numbers in notices of redemption as a convenience to
Holders of Notes. No representation is made as to the accuracy of the CUSIP
numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon. The Company will promptly notify the Trustee of any change
in
the CUSIP numbers.
13
ARTICLE
3.
COVENANTS
Section
3.01. Payment
of Notes.
No
interest will be payable on the Notes. On the Maturity Date, (i) the principal
amount of the Notes remaining after giving effect to any mandatory redemptions
pursuant to Article 9 hereof will be payable, subject to Article 12 hereof
and
(ii) any additional Released Escrow Amounts will be paid pursuant to Section
3.08 hereof.
Section
3.02. Delivery
of Released Escrow Amount
The
Company has, contemporaneously with the execution of this Indenture, pursuant
to
the Instruction Letter, directed the Verizon Escrow Agent to deposit, from
time
to time, any and all of the Released Escrow Amount into the Notes Escrow Account
immediately upon such release and in accordance with such instructions. The
Company covenants that in the event it should receive, at any time, any of
the
Released Escrow Amount, it will hold such amounts in trust for the Holders
and
promptly deliver any and all such amounts in their entirety to the Trustee
for
deposit in the Notes Escrow Account.
Section
3.03. Delivery
and Payment of Tax Distribution Amounts
The
Company has, contemporaneously with the execution of this Indenture, pursuant
to
the Instruction Letter, directed the Verizon Escrow Agent to deposit, from
time
to time, any and all Tax Distribution Amounts payable from the Verizon Escrow
Account into the Notes Escrow Account immediately upon such release and in
accordance with such instruction. The Company covenants that in the event it
should receive, at any time, any Tax Distribution Amounts, it will hold such
amounts in trust for the Holders and promptly deliver any and all such amounts
in their entirety to the Trustee for deposit in the Notes Escrow Account. Within
five Business Days after the deposit of any Tax Distribution Amounts into the
Notes Escrow Account, subject to Section 3.08 hereof, the Trustee will
distribute such Tax Distribution Amounts to the Holders on a pro rata basis
based on the principal amount of Notes held by such Holders. Payments of Tax
Distribution Amounts shall not reduce, or be deemed a prepayment or redemption
of, the principal amount of the Notes.
Section
3.04. Maintenance
of Office or Agency.
The
Company will maintain an office or agency where Notes may be presented or
surrendered for payment, where Notes may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company 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 the address thereof, such presentations, surrenders, notices and demands
may be made or served at the Corporate Trust Office of the Trustee, and the
Company hereby appoints the Trustee as its agent to receive all such
presentations, surrenders, notices and demands. The Trustee may resign any
agency capacity under this Indenture upon 30 days’ written notice to the
Company.
The
Company may also from time to time designate one or more other offices or
agencies where the Notes may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations. The Company will
give prompt written notice to the Trustee of any such designation or remission
and of any change in the location of any such other office or
agency.
14
Section
3.05. Compliance
Certificate; Reports.
(a) The
Company shall deliver to the Trustee, within 90 days after the end of each
fiscal year, an Officers’ Certificate stating that a review of the activities of
the Company and its Subsidiaries during the preceding fiscal year has been
made
under the supervision of the signing Officers with a view to determining whether
the Company and its Subsidiaries have kept, observed, performed and fulfilled
their obligations under this Indenture, and further stating, as to each such
Officer signing such certificate, that to the best of his or her knowledge
the
Company and its Subsidiaries have 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 of
this
Indenture.
(b) The
Company shall otherwise comply with TIA Section 314(a).
(c) The
Company will deliver to the Trustee forthwith, upon, but, in any event, within
five (5) Business Days of becoming aware of, any Default or Event of Default,
an
Officers’ Certificate specifying such Default or Event of Default and what
action the Company is taking or proposes to take with respect
thereto.
(d) The
Company shall file with the Trustee and the Commission, and transmit to Holders,
such information, documents and other reports, and such summaries thereof,
as
may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant to such Act; provided,
however,
that
any such information, documents or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act shall be filed
with the Trustee within 15 days after the same is so required to be filed with
the Commission unless such reports are publicly available in electronic form
on
the Commission’s website. Delivery of such reports, information and documents to
the Trustee is for informational purposes only and the Trustee’s receipt of same
shall not constitute constructive notice of any information contained therein
or
determinable from information contained therein, including the Company’s
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers’ Certificates).
Section
3.06. Stay,
Extension and Usury Laws.
The
Company covenants (to the extent that it may lawfully do so) that it shall
not
at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted,
now
or at any time hereafter in force, that may affect the covenants or the
performance of this Indenture; and the Company (to the extent that it may
lawfully do so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it shall not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but shall
suffer and permit the execution of every such power as though no such law has
been enacted.
Section
3.07. Corporate
Existence.
Subject
to Article 7 hereof, the Company shall do or cause to be done all things
necessary to preserve and keep in full force and effect (i) its legal existence,
and the corporate, partnership or other existence of each Subsidiary, in
accordance with the respective organizational documents (as the same may be
amended from time to time) of the Company or any such Subsidiary and (ii) the
rights (charter and statutory), licenses and franchises of the Company and
its
Subsidiaries; provided,
however,
that
the Company shall not be required to preserve any such right, license or
franchise, or the corporate, partnership or other existence of any Subsidiary,
if the Board of Directors shall determine that 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 is not adverse in
any
material respect to the Holders of the Notes, or that such preservation is
not
necessary in connection with any transaction not prohibited by this Indenture;
provided,
further,
that
nothing contained in this Indenture shall limit or preclude in any way the
conversion of the Company from a limited liability company to a
corporation.
15
Section
3.08. Payment
of Escrow Amounts
Subject
to Section 4.09 hereof and notwithstanding anything to the contrary contained
in
the Notes Escrow Documents, any money collected by the Trustee pursuant to
this
Article 3 or under any other Notes Escrow Document shall be paid out in the
following order:
First:
to
Holders for principal amounts due and unpaid on the Notes without preference
or
priority of any kind, according to the amounts due and payable on the Notes;
and
Second:
to the
Holders pro rata based on the principal amount of Notes held by such Holders
immediately prior to giving effect to any payments made pursuant to paragraph
First of this Section 3.08.
ARTICLE
4.
DEFAULTS
AND REMEDIES
Section
4.01. Events
of Default.
The
following constitutes an “Event of Default” with respect to the
Notes:
failure
to comply with any covenant or agreement contained in the Notes Escrow
Documents, and such failure continues for ten days after written notice is
given
to the Company by the Trustee or to the Company and the Trustee by the Holders
of not less than 20% in aggregate principal amount of the Notes then outstanding
specifying the default, demanding that it be remedied and stating that such
notice is a “Notice of Default.”
Section
4.02. Remedies.
Subject
to Article 12 hereof, if an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal
of
the Notes or to enforce the performance of any provision of the Notes, this
Indenture or the other Notes Escrow Documents.
The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding. A delay or omission by
the Trustee or any Holder in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver
of
or acquiescence in the Event of Default. All remedies shall be cumulative to
the
extent permitted by law.
Section
4.03. Waiver
of Defaults.
The
Holders of at least 66-2/3% in aggregate principal amount of the Notes then
outstanding by notice to the Trustee may on behalf of the Holders of all of
the
Notes, waive any existing Default or Event of Default, and its consequences,
except a continuing Default or Event of Default (i) in the payment of the
principal of the Notes and (ii) in respect of a covenant or provision which
under this Indenture cannot be modified or amended without the consent of the
Holder of each Note affected by such modification or amendment.
Upon
any
waiver of a Default or Event of Default, such Default shall cease to exist,
and
any Event of Default arising therefrom shall be deemed cured for every purpose
of this Indenture but no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereon.
16
Section
4.04. Control
by Majority.
Subject
to Article 12, Section 5.01, Section 5.02 and Section 5.06 hereof, in case
an
Event of Default shall occur, the Holders of a majority in aggregate principal
amount of the Notes then outstanding shall have the right to direct the time,
method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on the Trustee with respect
to the Notes. However, the Trustee may refuse to follow any direction that
conflicts with law or this Indenture, is unduly prejudicial to the rights of
other Holders, or would involve the Trustee in personal liability or
expense.
Section
4.05. Limitation
on Suits.
No
Holder
shall have any right to institute any proceeding with respect to this Indenture
or any other Notes Escrow Document, or for the appointment of a receiver or
trustee, or for any remedy thereunder, unless:
(a) such
Holder has previously given to the Trustee written notice of a continuing Event
of Default or the Trustee receives the notice from the Company,
(b) Holders
of at least 25% in aggregate principal amount of the Notes then outstanding
have
made written request and offered reasonable indemnity to the Trustee to
institute such proceeding as trustee, and
(c) the
Trustee shall not have received from the Holders of a majority in aggregate
principal amount of the Notes then outstanding a direction inconsistent with
such request and shall have failed to institute such proceeding within 30
days.
The
preceding limitations shall not apply to a suit instituted by a Holder for
enforcement of payment of principal of, or Tax Distribution Amounts on, a Note
on or after the respective due dates for such payments set forth in such
Note.
Subject
to Section 8.02, a Holder may not use this Indenture to affect, disturb or
prejudice the rights of another Holder or to obtain a preference or priority
over another Holder.
Section
4.06. Rights
of Holders to Receive Payment.
Subject
to Section 8.02 and Article 12 but notwithstanding any other provision of this
Indenture (including Section 4.05), the right of any Holder to receive payment
of principal of the Notes held by such Holder, on or after the Maturity Date
(in
the case of redemption, on the Redemption Date), or to bring suit for the
enforcement of any such payment on or after the Maturity Date, shall not be
impaired or affected without the consent of such Holder.
Section
4.07. Collection
Suit by Trustee.
If
an
Event of Default occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the
Collateral for the whole amount of principal of the Notes then due and owing
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, and any other amounts due
the
Trustee under Section 5.06 hereof.
17
Section
4.08. Trustee
May File Proofs of Claim.
The
Trustee shall be authorized to file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceedings relative to this Indenture, the
Notes or the other Notes Escrow Documents 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 5.06 hereof.
To
the extent that the payment of any such compensation, expenses, disbursements
and advances of the Trustee and its agents and counsel, and any other amounts
due the Trustee under Section 5.06 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, moneys,
securities and any other properties that the Holders 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 Notes or the rights of any Holder, or to authorize the Trustee
to
vote in respect of the claim of any Holder in any such proceeding.
Section
4.09. Priorities.
Any
money
collected by the Trustee pursuant to this Article 4 or under any other Notes
Escrow Document, and after an Event of Default any money or other property
distributable in respect of the Company’s obligations under this Indenture or
any other Notes Escrow Document, shall be paid out in the following
order:
First:
to the
Trustee (including any predecessor Trustee), its agents and attorneys for
amounts due under Section 5.06 hereof, including payment of all compensation,
expenses and liabilities incurred, and all advances made, by the Trustee and
the
costs and expenses of collection;
Second,
to
Holders for principal amounts due and unpaid on the Notes without preference
or
priority of any kind, according to the amounts due and payable on the Notes;
and
Third:
to the
Holders pro rata based on the principal amount of Notes held by such Holders
immediately prior to giving effect to any payments made pursuant to paragraph
Second of this Section 4.09, or to such party as a court of competent
jurisdiction shall direct.
The
Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 4.09.
The
Company will be deemed to be in noncompliance with this Indenture to the extent
that the Trustee applies any funds to the payment of its expenses pursuant
to
paragraph First of this Section 4.09, and, notwithstanding anything to the
contrary contained herein, the Holders shall be entitled to recourse against
the
Company for any such amounts.
Section
4.10. Undertaking
for Costs.
In
any
suit for the enforcement of any right or remedy under this Indenture or any
other Notes Escrow Document 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 such suit of an undertaking to pay the costs
of
such suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made
by
the party litigant. This Section 4.10 shall not apply to a suit by the
Trustee, a suit by the Company, a suit by a Holder pursuant to Section 4.06
hereof, or a suit by Holders of more than 10% in principal amount of the then
outstanding Notes.
18
ARTICLE
5.
TRUSTEE
Section
5.01. Certain
Duties and Responsibilities.
(a) Except
during the continuance of an Event of Default,
(i) the
Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and the other Notes Escrow Documents
to
which it is a party or by which it is bound, and no implied covenants or
obligations shall be read into this Indenture or any of the other Notes Escrow
Documents against the Trustee; and
(ii) in
the
absence of bad faith on its part, the Trustee may conclusively rely, as to
the
truth of the statements and the correctness of the opinions expressed therein,
upon certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; but in the case of any such certificates or
opinions which by any provision hereof are specifically required to be furnished
to the Trustee, the Trustee shall be under a duty to examine the same to
determine whether or not they conform to the requirements of this Indenture
(but
need not confirm or investigate the accuracy of mathematical calculations or
other facts stated therein).
(b) In
case
an Event of Default has occurred, the Trustee shall exercise such of the rights
and powers vested in it by this Indenture, and use the same degree of care
and
skill in their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.
(c) No
provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act, or
its
own willful misconduct, except that
(i) this
Subsection shall not be construed to limit the effect of Subsections (a) and
(d)
of this Section;
(ii) the
Trustee shall not be liable for any error of judgment made in good faith by
a
Responsible Officer, unless it shall be proved that the Trustee was negligent
in
ascertaining the pertinent facts; and
(iii) the
Trustee shall not be liable with respect to any action taken or omitted to
be
taken by it in good faith in accordance with the direction of the Holders of
a
majority in principal amount of the Notes then outstanding, relating to the
time, method and place of conducting any proceeding for any remedy available
to
the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture or any of the other Notes Escrow Documents.
(d) No
provision of this Indenture or any of the other Notes Escrow Documents shall
require the Trustee to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties under this Indenture
or any of the other Notes Escrow Documents, or in the exercise of any of its
rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability
is
not reasonably assured to it.
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(e) No
provision of this Indenture or any of the other Notes Escrow Documents shall
be
deemed to impose any duty or obligation on the Trustee to perform any act or
acts, receive or obtain any interest in property or exercise any interest in
property, or exercise any right, power, duty or obligation conferred or imposed
on it in any jurisdiction in which it shall be illegal, or in which the Trustee
shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts, to receive or obtain any such interest in property
or to exercise any such right, power, duty or obligation; and no permissive
or
discretionary power or authority available to the Trustee shall be construed
to
be a duty.
(f) Whether
or not therein expressly so provided, every provision of this Indenture or
any
of the other Notes Escrow Documents relating to the conduct or affecting the
liability of or affording protection to the Trustee shall be subject to the
provisions of this Section.
Section
5.02. Certain
Rights of Trustee.
Subject
to the provisions of Section 5.01:
(a) the
Trustee may conclusively rely and shall be fully protected in acting or
refraining from acting in reliance upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties;
(b) any
request or direction of the Company mentioned herein or in the other Notes
Escrow Documents shall be sufficiently evidenced by a Company Request or Company
Order, and any resolution of the Board of Directors may be sufficiently
evidenced by a Board Resolution;
(c) whenever
in the administration of this Indenture or the other Notes Escrow Documents
the
Trustee shall deem it desirable that a matter be proved or established prior
to
taking, suffering or omitting any action hereunder or thereunder, the Trustee
(unless other evidence be herein or therein specifically prescribed) may, in
the
absence of bad faith on its part, request from the Company and conclusively
rely
upon an Officers’ Certificate and/or an Opinion of Counsel;
(d) the
Trustee may consult with counsel of its selection, and the 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
or under the other Notes Escrow Documents in good faith and in reliance
thereon;
(e) the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts
or
matters as it may see fit and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled upon reasonable request
to examine the books, records and premises of the Company, personally or by
agent or attorney;
(f) the
Trustee may execute any of the trusts or powers hereunder or under the other
Notes Escrow Documents or perform any duties hereunder or thereunder either
directly or by or through agents or attorneys, and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder or thereunder;
(g) the
Trustee shall have no duty to inquire as to the performance of the Company
with
respect to the covenants contained in Article 3 or in any other Notes Escrow
Document;
(h)
the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture or any of the other Notes Escrow Documents at
the
request or direction of any of the Holders pursuant to the Indenture, unless
such Holders shall have offered to the Trustee security or indemnity reasonably
satisfactory to the Trustee against the costs, expenses and liabilities which
might be incurred by it in compliance with such request or
direction;
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(i) the
Trustee shall not be deemed to have notice or be charged with knowledge of
any
Default or Event of Default unless written notice of such Default or Event
of
Default, as the case may be, is received by a Responsible Officer of the Trustee
at the Corporate Trust Office of the Trustee from the Company, any other obligor
upon the Notes or by any Holder, and such notice references the Notes and this
Indenture;
(j)
the
permissive right of the Trustee under the Indenture or any of the other Notes
Escrow Documents to take or omit to take any action shall not be construed
as a
duty;
(k) 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;.
(l)
anything
in this Indenture or any of the other Notes Escrow Documents notwithstanding,
in
no event shall the Trustee be liable for special, indirect, punitive or
consequential loss or damage of any kind whatsoever (including but not limited
to loss of profit), even if the Company has been advised as to the likelihood
of
such loss or damage and regardless of the form of action;
(m) the
Trustee shall not be responsible or liable for any failure or delay in the
performance of its obligations under this Indenture or any of the other Notes
Escrow Documents arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control, including, without limitation,
acts
of God; earthquakes; fire; flood; terrorism; wars and other military
disturbances; sabotage; epidemics; riots; interruptions; loss or malfunctions
of
utilities, computer (hardware or software) or communication services; accidents;
labor disputes; acts of civil or military authority and governmental
action;
(n) the
rights, privileges, protections, immunities and benefits given to the Trustee,
including without limitation, its right to be indemnified, are extended to,
and
shall be enforceable by, the Trustee in each of its capacities hereunder or
under the other Notes Escrow Documents, and each agent, custodian and other
Person employed to act hereunder and thereunder; and
(o) the
Trustee may request that the Company deliver an Officers’ Certificate setting
forth the names of individuals and/or titles of officers authorized at such
time
to take specified actions pursuant to this Indenture or under the Notes Escrow
Documents, which Officers’ Certificate may be signed by any person authorized to
sign an Officers’ Certificate, including any Person specified as so authorized
in any such certificate previously delivered and not superseded.
Section
5.03. Not
Responsible for Recitals or Issuance of Notes.
The
recitals and other representations and warranties of the Company contained
herein and in the or any of the other Notes Escrow Documents (except the
Trustee's certificate of authentication on the Notes) shall be taken as the
statements of the Company, and neither the Trustee nor any Agent assumes any
responsibility for their correctness. The Trustee makes no representations
as to
the value or condition of the Collateral or any part thereof, or as to the
title
of the Company thereto or as to the security afforded thereby, or as to the
validity or genuineness of any securities or other property at any time pledged
and deposited with the Trustee under this Indenture or any of the other Notes
Escrow Documents, or as to the validity or sufficiency of this Indenture, the
Notes, or any of the other Notes Escrow Documents, or as to the validity,
attachment, perfection, priority or enforceability of the liens in any of the
Collateral created or intended to be created by any of the Notes Escrow
Documents. The Trustee shall not be accountable for the use or application
by
the Company of the Notes or the proceeds thereof. The Trustee shall have no
responsibility to make or to see to the making of any recording, filing or
registration of any instrument or notice (including any financing or
continuation statement or any tax or securities form) (or any rerecording,
refiling or reregistration of any thereof) at any time in any public office
or
elsewhere for the purpose of perfecting, maintaining the perfection of or
otherwise making effective the lien of any of the Notes Escrow Documents or
for
any other purpose, and shall have no responsibility for seeing to the insurance
on the Collateral or for paying any taxes, charges or assessments on or relating
to the Collateral or for otherwise maintaining the Collateral.
21
Section
5.04. May
Hold Notes.
The
Trustee, any Paying Agent, any Registrar or any other agent of the Company,
in
its individual or any other capacity, may become the owner or pledgee of Notes
and, subject to Sections 5.08 and 5.13, may otherwise deal with the Company
with the same rights it would have if it were not Trustee, Paying Agent,
Registrar or such other agent.
Section
5.05. Money
Held in Trust.
Money
held by the Trustee in trust hereunder or under any other Notes Escrow Document
shall be segregated from other funds and held in the account described in the
Pledge, Assignment and Security Agreement. The Trustee shall be under no
liability for interest on any money received by it hereunder or thereunder
except as otherwise agreed in writing with the Company.
Section
5.06. Compensation
and Indemnity.
The
Company shall be solely responsible for and agrees:
(a) to
pay or
cause to be paid to the Trustee from time to time such compensation as the
Company and the Trustee shall from time to time agree in writing for all
services rendered by it hereunder or under any of the other Notes Escrow
Documents or the Verizon/Trustee Security Agreement (which compensation shall
not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);
(b) to
reimburse the Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by the Trustee in accordance with
any provision of this Indenture or the other Notes Escrow Documents or the
Verizon/Trustee Security Agreement (including the reasonable compensation and
the expenses and disbursements of its agents and counsel (including local legal
counsel)), except any such expense, disbursement or advance as may be
attributable to its gross negligence or willful misconduct; and
(c) to
indemnify each of the Trustee, its employees, officers, directors and agents
or
any predecessor Trustee for, and to hold it and each of them harmless against,
any and all loss, liability, damage, claim or expense incurred without gross
negligence or willful misconduct on its part, arising out of or in connection
with the acceptance or administration of this trust, including the costs and
expenses of defending itself against any claim (whether asserted by the Company,
a Holder or any other Person) or liability in connection with the exercise
or
performance of any of its powers or duties hereunder or under any of the other
Notes Escrow Documents or the Verizon/Trustee Security Agreement.
As
security for the performance of the obligations of the Company under this
Section, the Trustee shall have a lien upon all property and assets of the
Company.
In
addition and without prejudice to the rights provided to the Trustee under
any
of the provisions of this Indenture or any of the other Notes Escrow Documents
or the Verizon/Trustee Security Agreement, when the Trustee incurs expenses
or
renders services in connection with an Event of Default, the expenses (including
the reasonable charges and expenses of its counsel) and the compensation for
the
services are intended to constitute expenses of administration under any
applicable federal or state bankruptcy or comparable law.
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The
Company’s obligations under this Section 5.06 and any lien arising hereunder
shall survive the resignation or removal of any Trustee, the discharge of the
Company’s obligations pursuant to this Indenture and/or the termination of this
Indenture.
“Trustee”
for purposes of this Section 5.06 shall include any predecessor Trustee and
the
Trustee in each of its other capacities under the Indenture or any of the other
Notes Escrow Documents or the Verizon/Trustee Security Agreement and to each
agent, custodian and other Person employed to act hereunder or thereunder;
provided,
however,
that
the negligence, bad faith or willful misconduct of any Trustee or any such
agent, custodian or other Person hereunder or thereunder shall not affect the
rights of any other Trustee or any such other agent, custodian or other
Person.
Section
5.07. Disqualification;
Conflicting Interests.
If
the
Trustee has or shall acquire a conflicting interest within the meaning of the
TIA, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, the TIA and
this Indenture. Nothing contained herein shall prevent the Trustee from filing
the application provided for in the second to last sentence of Section 310(b)
of
the TIA.
Section
5.08. Corporate
Trustee Required; Eligibility.
There
shall at all times be a Trustee hereunder which shall be a Person that is
eligible pursuant to the TIA to act as such and has a combined capital and
surplus of (a) at least $25,000,000 and be a member of a bank holding company
that has a combined capital and surplus of at least $100,000,000 or (b) at
least
$50,000,000. If such Person publishes reports of condition at least annually,
pursuant to law or to the requirements of any supervising or examining
authority, then for the purposes of this Section 5.08, the combined capital
and
surplus of such Person shall be deemed to be its combined capital and surplus
as
set forth in its most recent report of condition so published. If at any time
the Trustee shall cease to be eligible in accordance with the provisions of
this
Section, it shall resign immediately in the manner and with the effect
hereinafter specified in this Article.
This
Indenture shall always have a Trustee who satisfies the requirements of TIA
Sections 310(a)(1), (2) and (5).
Section
5.09. Resignation
and Removal; Appointment of Successor.
(a) No
resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article shall become effective until the acceptance of
appointment by the successor Trustee under Section 5.10. If an instrument of
acceptance by a successor Trustee shall not have been delivered to the Trustee
within 30 days after the giving of such notice of resignation or removal, the
Trustee resigning or being removed may, at the expense of the Company, petition
any court of competent jurisdiction for the appointment of a successor
Trustee.
(b) The
Trustee may resign at any time by giving written notice thereof to the
Company.
(c) If
at any
time:
(1) the
Trustee shall fail to comply with Section 5.07 after written request therefor
by
the Company or by any Holder who has been a bona fide Holder of a Note for
at
least six months,
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(2) the
Trustee shall cease to be eligible under Section 5.08 and shall fail to resign
after written request therefor by the Company or by any such Holder,
or
(3) the
Trustee shall become incapable of acting or shall be adjudged bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed
or
any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,
then,
in
any such case, (i) the Company by a Board Resolution may remove the Trustee,
or
(ii) any Holder who has been a bona fide Holder of a Note for at least six
months may, on behalf of himself and all others similarly situated, petition
any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.
(d) If
the
Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, the Company, by a Board
Resolution, shall promptly appoint a successor Trustee. If, within one year
after such resignation, removal or incapability, or the occurrence of such
vacancy, the Holders representing a majority of the aggregate principal amount
of the Notes shall promptly appoint a successor Trustee, who, when so appointed
shall, forthwith upon its acceptance of such appointment, become the successor
Trustee and supercede the successor Trustee appointed by the Company. If no
successor Trustee shall have been so appointed by the Company or the Holders
and
shall have accepted appointment in the manner hereinafter provided, any Holder
who has been a bona fide Holder of a Note for at least six months may, on behalf
of himself and all others similarly situated, petition any court of competent
jurisdiction for the appointment of a successor Trustee.
(e) The
Company shall give prompt notice of each resignation and each removal of the
Trustee and each appointment of a successor Trustee to all Holders in the manner
provided in Section 13.02. Each notice shall include the name of the successor
Trustee and the address of its Corporate Trust Office.
Section
5.10. Acceptance
of Appointment by Successor.
Every
successor Trustee appointed hereunder shall execute, acknowledge and deliver
to
the Company and to the retiring Trustee an instrument accepting such
appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed
or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on request of the Company or the successor
Trustee, such retiring Trustee shall, upon payment of its charges, execute
and
deliver an instrument transferring to such successor Trustee all the rights,
powers and trusts of the retiring Trustee and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such retiring
Trustee hereunder or under any other Notes Escrow Document, subject to its
lien
provided for in Section 5.06. Upon request of any such successor Trustee, the
Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers
and
trusts.
No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article.
Section
5.11. Merger,
Conversion, Consolidation or Succession to Business.
Any
Person into which the Trustee may be merged or converted or with which it may
be
consolidated, or any Person resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any Person succeeding
to
all or substantially all the corporate trust business of the Trustee, shall
be
the successor of the Trustee hereunder; provided
such
corporation shall be otherwise qualified and eligible under this Article,
without the execution or filing of any paper or any further act on the part
of
any of the parties hereto.
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Section
5.12. Preferential
Collection of Claims Against Company.
If
and
when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Notes), the Trustee shall be subject to the provisions of
the
TIA regarding the collection of claims against the Company (or any such other
obligor).
Section
5.13. Appointment
of Co-Trustee.
It
is the
purpose of this Indenture that there shall be no violation of any law of any
jurisdiction, including particularly the law of the State of New York, denying
or restricting the right of banking corporations or associations to transact
business as Trustee in such jurisdiction. It is recognized that in case of
litigation under this Indenture or under any other Notes Escrow Document or
in
case the Trustee deems that by reason of any present or future law of any
jurisdiction it may not exercise any of the powers, rights or remedies herein
or
therein granted to the Trustee or hold title to the properties, in trust, as
herein or therein granted, or take any other action which may be desirable
or
necessary in connection therewith, it may be necessary that the Trustee appoint
(and the Trustee is hereby authorized to so appoint) an additional individual
or
institution as a separate or co-trustee. The following provisions of this
Section 5.13 are adopted to these ends.
In
the
event that the Trustee appoints an additional individual or institution as
a
separate or co-trustee, each and every remedy, power, right, claim, demand,
cause of action, immunity, estate, title, interest and lien expressed or
intended by this Indenture to be exercised by or vested in or conveyed to the
Trustee with respect thereto shall be exercisable by and vested in such separate
or co-trustee but only to the extent necessary to enable such separate or
co-trustee to exercise such powers, rights and remedies, and every covenant
and
obligation necessary to the exercise thereof by such separate or co-trustee
shall run to and be enforceable by such separate or co-trustee.
No
trustee hereunder shall be personally liable by reason of any act or omission
of
any other trustee hereunder.
Should
any instrument in writing be required by the separate trustee or co-trustee
so
appointed by the Trustee for more fully and certainly vesting in and confirming
to him or it such properties, rights, powers, trusts, duties and obligations,
any and all such instruments in writing shall, on request, be executed,
acknowledged and delivered by the Company. In case any separate trustee or
co-trustee, or a successor to either, shall die, become incapable of acting,
resign or be removed, all the estates, properties, rights, powers, trusts,
duties and obligations of such separate trustee or co-trustee, so far as
permitted by law, shall vest in and be exercised by the Trustee until the
appointment of a new trustee or successor to such separate trustee or
co-trustee.
Section
5.14. Notice
of Defaults.
If
a
Default or Event of Default occurs and if it is known to the Trustee, the
Trustee shall mail to Holders a notice of the Default or Event of Default within
30 days after it occurs. Except with respect to a Default resulting from the
failure to pay principal of any Note, the Trustee may withhold the notice if
and
so long as a committee of its Responsible Officers in good faith determines
that
withholding the notice is in the interests of the Holders.
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ARTICLE
6.
HOLDERS’
LISTS AND REPORTS BY TRUSTEE
Section
6.01. Company
to Furnish Trustee Names and Addresses of Holders.
(a) The
Company will furnish or cause to be furnished to the Trustee:
(i) semi-annually,
not more than 5 Business Days after June 30 and December 31 of the relevant
calendar year, a list, in such form as the Trustee may reasonably require,
of
the names and addresses of the Holders as of such date, and
(ii) at
such
other times as the Trustee may request in writing, within 30 days after the
receipt by the Company of any such request, a list of similar form and content
as of a date not more than 15 days prior to the time such list is
furnished;
excluding
from any such list names and addresses received by the Trustee in its capacity
as Registrar.
(b)
The
Company will provide to the Trustee information consistent with the tax
treatment of the Holders as the direct owners of the Company’s entitlements with
respect to the Verizon Escrow Amount as provided for in Section 13.07 hereof,
in
particular the amount of interest and other income earned on the Verizon Escrow
Amount and any expenses incurred in connection with the administration of the
Verizon Escrow Account, and a breakdown of amounts and such other specific
information as may be relevant under the Code from time to time.
Section
6.02. Preservation
of Information; Communications to Holders.
(a) The
Trustee shall preserve, in as current a form as is reasonably practicable,
the
names and addresses of Holders contained in the most recent list furnished
to
the Trustee as provided in Section 6.01 and the names and addresses of Holders
received by the Trustee in its capacity as Registrar and shall otherwise comply
with TIA Section 312(a). The Trustee may destroy any list furnished to it as
provided in Section 6.01 upon receipt of a new list so furnished.
(b) The
rights of Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Notes, and the corresponding rights and duties
of the Trustee, shall be as provided by the TIA.
(c) Every
Holder of Notes, by receiving and holding the same, agrees with the Company
and
the Trustee that neither the Company nor the Trustee nor any agent of either
of
them shall be held accountable by reason of any disclosure of information as
to
names and addresses of Holders made pursuant to the TIA.
Section
6.03. Reports
by Trustee.
(a) The
Trustee shall transmit to Holders such reports concerning the Trustee and its
actions under this Indenture as may be required pursuant to the TIA at the
times
and in the manner provided pursuant thereto. If required by Section 313(a)
of
the TIA, the Trustee shall, within sixty days after each February 15 following
the date of this Indenture, deliver to Holders a brief report, dated as of
such
February 15, which complies with the provision of such Section 313(a). The
Trustee shall also transmit by mail all reports as required by TIA Section
313(c).
(b) A
copy of
each such report shall, at the time of such transmission to Holders, be mailed
to the Company and each stock exchange upon which the Notes are listed and
the
Commission in accordance with Section 313(d) of the TIA. The Company will
promptly notify the Trustee when the Notes are listed on or delisted from any
securities exchange.
26
ARTICLE
7.
CONSOLIDATION,
MERGER,
CONVEYANCE,
TRANSFER OR LEASE
Section
7.01. Consolidation,
Etc., Only on Certain Terms.
The
Company will not consolidate with or merge with or into any other Person or
convey, transfer or lease its properties and assets as an entirety to any Person
or Persons, and the Company will not permit any of its subsidiaries to enter
into any such transaction or series of transactions, if such transaction or
series of transactions, in the aggregate, would result in the conveyance,
transfer or lease of all or substantially all of the properties and assets
of
the Company and its subsidiaries on a consolidated basis to any Person, unless
either (i) the Company is the surviving corporation or (ii) the Person (if
other
than the Company) formed by such consolidation or into which the Company or
such
Subsidiary is merged or the Person which acquires, by conveyance, transfer
or
lease, the properties and assets of the Company or such Subsidiary, as the
case
may be, substantially as an entirety (the “Surviving
Entity”)
(A)
shall be a corporation, partnership, limited liability company or trust
organized and validly existing under the laws of the United States of America,
any state thereof or the District of Columbia and (B) shall expressly assume,
by
a supplemental indenture executed and delivered to the Trustee, the performance
and observance of every covenant of this Indenture and the other Notes Escrow
Documents on the part of the Company to be performed or observed.
In
connection with any such consolidation, merger, conveyance, transfer or lease,
the Company or the Surviving Entity shall have delivered to the Trustee, an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, merger, conveyance, transfer or lease, and if a supplemental
indenture is required in connection with such transaction, such supplemental
indenture, comply with the requirements of this Section 7.01, and that all
conditions precedent herein provided for relating to such transaction have
been
complied with.
Section
7.02. Successor
Substituted.
Upon
any
transaction or series of transactions that are of the type described in, and
are
effected in accordance with, conditions described in Section 7.01, the Surviving
Entity shall succeed to, and be substituted for, and may exercise every right
and power of, the Company under this Indenture and the other Notes Escrow
Documents with the same effect as if such Surviving Entity had been named as
the
Company herein; and when a Surviving Entity duly assumes all of the obligations
and covenants of the Company pursuant to this Indenture, the Notes and the
other
Notes Escrow Documents, except in the case of a lease, the predecessor Person
shall be relieved of all such obligations.
ARTICLE
8.
AMENDMENT,
SUPPLEMENT AND WAIVER
Section
8.01. Without
Consent of Holders of Notes.
Notwithstanding
Section 8.02 of this Indenture, the Company and the Trustee may amend or
supplement this Indenture, the Notes or any of the other Notes Escrow Documents
without the consent of any Holder to:
(a) cure
any
ambiguity, omission, defect or inconsistency;
27
(b) provide
for the assumption by a Surviving Entity of the obligations of the Company
under
this Indenture;
(c) provide
for uncertificated Notes in addition to certificated Notes (provided
that the
uncertificated Notes are issued in registered form for purposes of Section
163(f) of the Code, or in a manner such that the uncertificated Notes are
described in Section 163(f)(2)(B) of the Code);
(d) further
secure the Notes;
(e) add
to
the covenants of the Company for the benefit of the Holders or to surrender
any
right or power conferred upon the Company;
(f) make
any
other change that does not materially adversely affect the legal rights
hereunder of any such Holder; or
(g) make
any
change to comply with any requirement of the Commission in order to effect
or
maintain the qualification of this Indenture under the TIA.
Section
8.02. With
Consent of Holders of Notes.
Except
as
provided below in this Section 8.02, the Company and the Trustee may amend
or
supplement this Indenture, the Notes or any of the other Notes Escrow Documents
with the consent of the Holders of at least a majority in aggregate principal
amount of the Notes then outstanding voting as a single class or compliance
with
any provision of this Indenture or the Notes may be waived with the consent
of
the Holders of at least a majority in aggregate principal amount of the Notes
then outstanding voting as a single class.
Without
the consent of each Holder, an amendment or waiver under this Section 8.02
may
not (with respect to any Notes held by a non-consenting Holder):
(a) reduce
the principal of any Note;
(b) extend
the Maturity Date of any Note; or
(c) amend
the
provisions of Section 9.01 hereof in a manner which adversely affects the legal
rights thereunder of any such non-consenting Holder.
The
Company may, but shall not be obligated to, fix a record date for the purpose
of
determining the Persons entitled to consent to any supplemental indenture.
If a
record date is fixed, the Holders on such record date, or their duly designated
proxies, and only such Persons, shall be entitled to consent to such
supplemental indenture, whether or not such Holders remain Holders after such
record date; provided
that
unless such consent shall have become effective by virtue of the requisite
percentage having been obtained prior to the date which is 120 days after such
record date, any such consent previously given shall automatically and without
further action by any Holder be cancelled and of no further effect.
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 or waiver, but it shall
be
sufficient if such consent approves the substance thereof.
After
an
amendment, supplement or waiver under this Section 8.02 becomes effective,
the
Company shall mail to the Holder of each Note affected thereby to such Holder’s
address appearing in the Security Register 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 amended or supplemental indenture or waiver.
28
Section
8.03. Compliance
with Trust Indenture Act.
Every
amendment or supplement to this Indenture or the Notes shall be set forth in
an
amended or supplemental indenture that complies with the TIA as then in
effect.
Section
8.04. Revocation
and Effect of Consents.
Until
an
amendment, supplement or waiver becomes effective, a consent to it by a Holder
is a continuing consent by the Holder of a Note and every subsequent Holder
of a
Note or portion thereof that evidences the same debt as the consenting Holder’s
Note, even if notation of the consent is not made on any Note. However, any
such
Holder or subsequent Holder may revoke the consent as to its Note or portion
thereof if the Trustee receives written notice of revocation before the date
the
waiver, supplement or amendment becomes effective. An amendment, supplement
or
waiver shall become effective in accordance with its terms and thereafter shall
bind every Holder.
Section
8.05. Notation
on or Exchange of Notes.
The
Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated. The Company in exchange for
all Notes may issue and, upon receipt of an Authentication Order in accordance
with Section 2.02 hereof, the Trustee shall authenticate new Notes that reflect
the amendment, supplement or waiver.
Failure
to make the appropriate notation or issue a new Note shall not affect the
validity and effect of such amendment, supplement or waiver.
Section
8.06. Trustee
to Sign Amendments, etc.
The
Trustee shall sign any amended or supplemental indenture authorized pursuant
to
this Article 8 if the amendment or supplement does not adversely affect the
rights, duties, liabilities or immunities of the Trustee. The Company may
not sign an amendment or supplemental indenture until its Board of Directors
(or
committee serving a similar function) approves it. In executing any amended
or
supplemental indenture, the Trustee shall be entitled to receive and (subject
to
Section 5.02 hereof) shall be fully protected in relying upon an Officers’
Certificate and an Opinion of Counsel stating that the execution of such amended
or supplemental indenture is authorized or permitted by this Indenture and
that
such amended or supplemental indenture is the legal, valid and binding
obligations of the Company, enforceable against it in accordance with its terms,
subject to customary exceptions, and that such amended or supplemental indenture
complies with the provisions hereof (including Section 8.03).
ARTICLE
9.
REDEMPTION
OF NOTES
Section
9.01. Mandatory
Redemption.
In
the
event and on each occasion that any Released Escrow Amount is released from
the
Verizon Escrow Account and is subject to the Instruction Letter, on the tenth
Business Day after such release, subject to Section 3.08 hereof, the Company
shall redeem Notes in an amount equal to the aggregate amount of such Released
Escrow Amount.
29
Section
9.02. Notice
to Trustee.
(a) In
case
of any redemption of the Notes, the Company shall, at least 60 days prior to
the
Redemption Date fixed by the Company (unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee in writing of such Redemption
Date and of the principal amount of Notes to be redeemed.
(b) The
Company shall provide, concurrently with its notice or communication pursuant
to
the Verizon Escrow Account regarding the release of any funds that constitute
the Released Escrow Amount and/or the Tax Distribution Amount, to the Trustee
copies of any such notice or communication and a written notification of such
release (including the amount of funds released).
(c) The
Company shall provide reasonable notice in writing to the Trustee of the Verizon
Escrow Termination Date.
Section
9.03. Selection
by Trustee of Notes to Be Redeemed.
If
less
than all of the Notes are to be redeemed at any time, selection of Notes for
redemption will be made by the Trustee (i) in compliance with the requirements
of the principal national securities exchange, if any, on which the Notes are
listed or (ii) if the Notes are not so listed, (A) on a pro rata basis or (B)
if
all of the Notes are represented by a Global Note, and if selection on a pro
rata basis would be inconsistent with the Applicable Procedures, then in
accordance with the Applicable Procedures from among those Notes that are
outstanding and not previously called for redemption. The portions of the
principal of Notes so selected for partial redemption shall be equal to $1.00
or
an integral multiple thereof.
The
Trustee shall promptly notify the Company and each Note Registrar in writing
of
the Notes selected for redemption and, in the case of any Notes selected for
partial redemption, the principal amount thereof to be redeemed.
For
all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Notes shall relate, in the case of
any
Notes redeemed or to be redeemed only in part, to the portion of the principal
amount of such Notes which has been or is to be redeemed.
Section
9.04. Notice
of Redemption.
Notice
of
redemption shall be given by first-class mail, postage prepaid, mailed not
less
than 30 days prior to the Redemption Date, to each Holder of Notes to be
redeemed, at such Holder’s address appearing in the Note Register.
All
notices of redemption shall identify the Notes to be redeemed (including CUSIP
numbers) and shall state:
(A) the
Redemption Date,
(B) the
Redemption Price, which shall, in each case, be the principal amount of the
Notes to be redeemed,
(C) if
less
than all the outstanding Notes are to be redeemed, the identification (and,
in
the case of partial redemption of any Notes, the principal amounts) of the
particular Notes to be redeemed,
(D) that
on
the Redemption Date the Redemption Price will become due and payable upon each
such Note to be redeemed, and
30
(E) the
place
or places where such Notes are to be surrendered for payment of the Redemption
Price.
Notice
of
redemption of Notes to be redeemed shall be given by the Company or, at the
Company’s request and at its expense, by the Trustee in the name of the
Company.
Section
9.05. Notes
Payable on Redemption Date.
Notice
of
redemption having been given as aforesaid, the Notes so to be redeemed shall,
on
the Redemption Date, become due and payable at the Redemption Price therein
specified. Upon surrender of any such Note for redemption in accordance with
said notice, such Note shall be paid by the Trustee, solely from the funds
held
in the Notes Escrow Account, at the Redemption Price. Upon payment of the
Redemption Price for any Note, the Trustee shall cancel such Note in accordance
with Section 2.11, whereupon such Note shall be null, void and of no
effect.
Section
9.06. Notes
Redeemed in Part.
Any
Note
which is to be redeemed only in part shall be surrendered at an office or agency
maintained by the Company for that purpose pursuant to Section 3.04 (with,
if
the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee
duly
executed by, the Holder thereof or such Holder’s attorney duly authorized in
writing), and the Company shall execute, and the Trustee shall authenticate
and
deliver to the Holder of such Note, without service charge to the Holder, a
new
Note or Notes, of any authorized denomination as requested by such Holder,
in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Note so surrendered.
ARTICLE
10.
COLLATERAL
AND SECURITY
Section
10.01. Pledge,
Assignment and Security Agreement.
The
due
and punctual payment of the principal of the Notes, when and as the same shall
be due and payable, are secured as provided in the Pledge, Assignment and
Security Agreement which the Company has entered into simultaneously with the
execution of this Indenture and which is attached as Exhibit C hereto. Each
Holder, by its acceptance thereof, consents and agrees to the terms of the
Pledge, Assignment and Security Agreement (including, without limitation, the
provisions providing for foreclosure of Collateral) as the same may be in effect
or may be amended from time to time in accordance with its terms and authorizes
and directs the Trustee to enter into the Pledge, Assignment and Security
Agreement and to perform its obligations and exercise its rights thereunder
in
accordance therewith. The Company will do or cause to be done all such acts
and
things as may be necessary or proper, or as may be required by the provisions
of
the Pledge, Assignment and Security Agreement, to assure and confirm to the
Trustee the security interest in the Collateral contemplated hereby, by the
Pledge, Assignment and Security Agreement or any part thereof, as from time
to
time constituted, so as to render the same available for the security and
benefit of this Indenture and of the Notes secured hereby, according to the
intent and purposes herein expressed. The Company will take, and will cause
its
Subsidiaries to take any and all actions reasonably required to cause the
Pledge, Assignment and Security Agreement to create and maintain, as security
for the Obligations, a valid and enforceable perfected first priority lien
in
and on all the Collateral, in favor of the Trustee for the benefit of itself
and
the Holders, superior to and prior to the rights of all third Persons and
subject to no other liens.
31
Section
10.02. Recording
and Opinions
The
Company will furnish to the Trustee on the 13th day of April of each year
beginning with April 13, 2006, an Opinion of Counsel, dated as of such date,
stating that, in the opinion of such counsel, either:
(a) action
has been taken with respect to the recording, registering, filing, re-recording,
re-registering and re-filing of all supplemental indentures, financing
statements, continuation statements or other instruments of further assurance
as
is necessary to maintain the lien of the Pledge, Assignment and Security
Agreement and reciting with respect to the security interest in the Collateral
the details of such action or referring to prior Opinions of Counsel in which
such details are given, and based on relevant laws as in effect on the date
of
such Opinion of Counsel, all financing statements and continuation statements
have been executed and filed that are necessary as of such date and during
the
succeeding 12 months fully to preserve and protect, to the extent such
protection and preservation are possible by filing, the rights of the Holders
and the Trustee hereunder and under the Pledge, Assignment and Security
Agreement with respect to the security interest in the Collateral;
or
(b) no
such
action is necessary to maintain such lien and assignment.
The
Company will otherwise comply with the provisions of TIA Section
314(b).
Section
10.03. Authorization
of Actions to Be Taken by the Trustee Under the Security
Agreement.
Subject
to the provisions of Section 5.01 and 5.02 hereof, the Trustee may, in its
sole
discretion and without the consent of the Holders, take, on behalf of the
Holders, all actions it deems necessary or appropriate in order to:
(a) enforce
any of the terms of the Pledge, Assignment and Security Agreement; and
(b) collect
and receive any and all amounts payable in respect of the
Obligations.
The
Trustee will have power to institute and maintain such suits and proceedings
as
it may deem expedient to prevent any impairment of the Collateral by any acts
that may be unlawful or in violation of the Pledge, Assignment and Security
Agreement or this Indenture, and such suits and proceedings as the Trustee
may
deem expedient to preserve or protect its interests and the interests of the
Holders in the Collateral (including power to institute and maintain suits
or
proceedings to restrain the enforcement of or compliance with any legislative
or
other governmental enactment, rule or order that may be unconstitutional or
otherwise invalid if the enforcement of, or compliance with, such enactment,
rule or order would impair the security interest hereunder or be prejudicial
to
the interests of the Holders or of the Trustee).
Section
10.04. Authorization
of Receipt of Funds by the Trustee Under the Pledge and
Assignment
Agreement.
The
Trustee is authorized to receive any funds for the benefit of the Holders
distributed under the Pledge, Assignment and Security Agreement, and to make
further distributions of such funds to the Holders according to the provisions
of this Indenture.
Section
10.05. Termination
of Security Interest.
Upon
the
indefeasible payment in full and discharge of all Obligations of the Company
under this Indenture, the Notes and the other Notes Escrow Documents, the
Trustee will, at the request and expense of the Company, release the liens
pursuant to this Indenture and the Pledge, Assignment and Security
Agreement.
32
ARTICLE
11.
SATISFACTION
AND DISCHARGE
Section
11.01. Satisfaction
and Discharge.
Subject
to the penultimate paragraph of Section 5.06 hereof, this Indenture shall be
discharged and shall cease to be of further effect as to all Notes issued
hereunder, when either:
(i) all
Notes
that have been previously authenticated and delivered (except lost, stolen
or
destroyed Notes that have been replaced or paid) have been delivered to the
Trustee for cancellation; or
(ii) all
Notes
that have not been previously delivered to the Trustee for cancellation have
become due and payable or cancelled by their terms, and the Pledge, Assignment
and Security Agreement is in full force and effect, the Verizon Escrow
Termination Date has occurred, the Company is not in breach of its obligations
under Sections 3.02 and 3.03 hereof, and any and all funds in the Notes Escrow
Account have been paid in accordance with Sections 3.08 or 4.09 hereof, as
applicable; and
in
the
case of either clause (i) or (ii), the Company shall have delivered to the
Trustee an Officers’ Certificate and Opinion of Counsel stating that all
conditions precedent relating to the satisfaction and discharge of this
Indenture have been satisfied.
Section
11.02. Deposited
Cash and U.S. Government Securities to be Held in Trust;
Other
Miscellaneous
Provisions
All
cash
and non-callable U.S. Government Securities (including the proceeds thereof)
deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 11.02, the “Trustee”) in respect of the outstanding
Notes shall be held in trust and applied by the Trustee, in accordance with
the
provisions of such Notes and this Indenture, to the payment, either directly
or
through any Paying Agent as the Trustee may determine, to the Holders of such
Notes of all sums due and to become due thereon in respect of principal, but
such cash and securities need not be segregated from other funds except to
the
extent required by law.
ARTICLE
12.
NON-RECOURSE
OBLIGATION
Section
12.01. Non-Recourse
(a) THE
NOTES CONVEY TO EACH HOLDER A DIRECT BENEFICIAL INTEREST IN THE COLLATERAL,
SUBJECT TO THE TERMS AND CONDITIONS SET FORTH AND DESCRIBED MORE FULLY IN THIS
INDENTURE AND THE PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT. EACH HOLDER OF
NOTES, BY ACCEPTING A NOTE, ACKNOWLEDGES THAT THE NOTES ARE NON-RECOURSE NOTES
AND THAT A HOLDER’S SOLE RECOURSE FOR ANY OBLIGATIONS SHALL BE LIMITED TO THE
COLLATERAL, SUBJECT TO THE EXCEPTIONS SET FORTH BELOW. NO HOLDER SHALL HAVE
RECOURSE AGAINST (1) NEXTWAVE WIRELESS LLC OR ITS ASSETS OR ITS AFFILIATES,
EXCEPT TO THE EXTENT THAT NEXTWAVE WIRELESS LLC RECEIVES ANY PORTION OF THE
COLLATERAL OR OTHERWISE DOES NOT COMPLY WITH ANY OF THE NOTES ESCROW DOCUMENTS
(FOR THE AVOIDANCE OF DOUBT, IT BEING UNDERSTOOD THAT NEXTWAVE WIRELESS LLC
SHALL NOT BE DEEMED TO BE IN SUCH NONCOMPLIANCE DUE TO ITS FAILURE TO PAY THE
NOTES ON THE MATURITY DATE FROM ANY OF ITS ASSETS, OTHER THAN THE COLLATERAL),
OR (2) ANY OF THE OTHER REORGANIZED DEBTORS (AS DEFINED IN THE PLAN), VERIZON
WIRELESS, AIRTOUCH CELLULAR, OR ANY OF THEIR RESPECTIVE AFFILIATES, OR THE
VERIZON ESCROW ACCOUNT, IN EACH CASE FOR PAYMENT OF ANY AMOUNTS UNDER THE NOTES.
ANY CLAIMS UNDER THE NOTES (EXCEPT AS DESCRIBED IN THE IMMEDIATELY PRECEDING
SENTENCE WITH RESPECT TO NEXTWAVE WIRELESS LLC) WILL ONLY BE SATISFIED OUT
OF
THE COLLATERAL.
33
(b) No
past,
present or future director, officer, employee, incorporator, stockholder,
organizer or member of the Company shall have any liability for any Obligations
under the Notes or this Indenture for any claim based on, in respect of, or
by
reason of, such Obligations or their creation. Each Holder of Notes by accepting
a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. The waiver or release may not
be
effective to waive or release liabilities under the federal securities
laws.
Section
12.02. Acknowledgement
of the Security Interest of Verizon Wireless and AirTouch
Cellular
Following
the Issue Date, the Verizon Escrow Account shall remain subject to the
first-priority security interest held by Verizon Wireless and AirTouch Cellular
pursuant to the Verizon/NextWave Security Agreement and the Verizon/Trustee
Security Agreement. Each Holder of Notes by accepting a Note acknowledges and
affirms such security interest. The Trustee is hereby authorized and directed
to
grant, on behalf of itself and the Holders, a first-priority security interest
in the Verizon Escrow Account to Verizon Wireless and AirTouch Cellular and
to
execute, deliver and perform all obligations under the Verizon/Trustee Security
Agreement and to take all actions contemplated thereby. The Trustee is not
authorized to grant, on behalf of itself or any Holder, a security interest
in
any “Collateral” (as defined in the Verizon/Trustee Security Agreement) or to
authorize the filing of any financing statement covering such “Collateral”,
except, in each case, pursuant to the Verizon/Trustee Security
Agreement.
Section
12.03. No
Rights in Verizon Escrow Account
Following
the Issue Date, the Company shall continue to exercise all of its rights and
privileges under the Verizon Escrow Agreement solely for the benefit of the
Holders, and the Holders shall have no power to exercise such rights and
privileges.
ARTICLE
13.
MISCELLANEOUS
Section
13.01. Trust
Indenture Act Controls.
If
any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
provision required by the TIA shall control.
Section
13.02. Notices.
Any
notice or communication by the Company or the Trustee to the other is duly
given
if in writing and delivered in person or mailed by first class mail, registered
or certified mail (return receipt requested), facsimile transmission or
overnight air courier guaranteeing next-day delivery, to the other’s
address:
34
If
to the
Company:
000
Xxxx
Xxxxxx Xxxxxx
Xxxxxxxxx,
XX 00000
Attention:
Xxxxx Xxxxxx, Esq.
Facsimile
No.: (000) 000-0000
If
to the
Trustee:
JPMorgan
Chase Bank, N.A.
0
Xxx
Xxxx Xxxxx, 00xx Xxxxx
Xxx
Xxxx,
XX 00000
Attention:
Institutional Trust Services
Facsimile
No.: (000) 000-0000
The
Company or the Trustee, by notice to the other, may designate additional or
different addresses for subsequent notices or communications.
All
notices and communications (other than those sent to the Trustee or Holders)
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 sent by facsimile
transmission; and the next Business Day after timely delivery to the courier,
if
sent by overnight air courier guaranteeing next-day delivery. All notices and
communications to the Trustee shall be deemed duly given and effective only
upon
receipt.
Any
notice or communication to a Holder shall be mailed by first class mail to
its
address shown on the Security Register. Any notice or communication shall
also be so mailed to any Person described in TIA Section 313(c), to the
extent required by the TIA. 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. 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 mails a notice or communication to Holders, it shall mail a copy to
the
Trustee and each Agent at the same time.
Section
13.03. Communication
by Holders of Notes with Other Holders of Notes.
Holders
may communicate pursuant to TIA Section 312(b) with other Holders with respect
to their rights under this Indenture or the Notes. The Company, the
Trustee, the Registrar and anyone else shall have the protection of TIA Section
312(c).
35
Section
13.04. Certificate
and Opinion as to Conditions Precedent.
Upon
any
request or application by the Company to the Trustee to take any action under
any provision of this Indenture or any of the other Notes Escrow Documents,
the
Company shall furnish to the Trustee:
(a) an
Officers’ Certificate (which shall include the statements set forth in Section
13.05 hereof) stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture and in any of the other
applicable Notes Escrow Documents relating to the proposed action have been
complied with; and
(b) an
Opinion of Counsel (which shall include the statements set forth in Section
13.05 hereof) stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.
Section
13.05. Statements
Required in Certificate or Opinion.
Each
certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture or any of the other Notes Escrow Documents (other
than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply
with
the provisions of TIA Section 314(e) and shall include:
(a) a
statement that the Person making such certificate or opinion has read such
covenant or condition;
(b) a
brief
statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are
based;
(c) a
statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable such Person to express
an
informed opinion as to whether or not such covenant or condition has been
complied with; and
(d) a
statement as to whether or not, in the opinion of such Person, such condition
or
covenant has been complied with.
With
respect to matters of fact, an Opinion of Counsel may rely on an Officers’
Certificate, certificates of public officials or reports or opinions of
experts.
Section
13.06. Rules
by Trustee and Agents.
The
Trustee may make reasonable rules for action by or at a meeting of Holders.
The
Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions.
Section
13.07. Tax
Treatment
For
Federal income tax purposes, absent a contrary determination by the Internal
Revenue Service or a court of competent jurisdiction, the Notes shall be treated
as evidencing a direct beneficial interest by the Holders in the Verizon Escrow
Amount to which the Company is entitled pursuant to the Verizon Escrow
Agreement, and the Holders shall be treated as direct owners of the Company’s
entitlement to the Verizon Escrow Amount (rather than the Company). The Company
and the Holders shall report consistent therewith for tax purposes, including,
to the extent permitted by applicable law, for state and local income tax
purposes.
36
Section
13.08. Governing
Law; Waiver of Jury Trial.
THE
INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE
THIS
INDENTURE AND THE NOTES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER
JURISDICTION WOULD BE REQUIRED THEREBY.
EACH
PARTY HERETO AND EACH HOLDER, BY ITS ACCEPTANCE OF A SECURITY, HEREBY WAIVES,
TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL
BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS INDENTURE, THE OTHER NOTES ESCROW DOCUMENTS
OR
THE SECURITIES.
Section
13.09. No
Adverse Interpretation of Other Agreements.
This
Indenture may not be used to interpret any other indenture, loan or debt
agreement of the Company or its Subsidiaries or of any other Person. Any
such indenture, loan or debt agreement may not be used to interpret this
Indenture.
Section
13.10. Successors.
All
covenants and agreements of the Company in this Indenture and the Notes shall
bind its successors.
Section
13.11. Severability.
In
case
any provision in this Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.
Section
13.12. 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
13.13. Table
of Contents, Headings, etc.
The
Table
of Contents, Cross-Reference Table and Headings in this Indenture have been
inserted for convenience of reference only, are not to be considered a part
of
this Indenture and shall in no way modify or restrict any of the terms or
provisions hereof.
[Signatures
on following page]
37
SIGNATURES
Dated
as
of April 13, 2005
Company:
NEXTWAVE
WIRELESS LLC
By:_________________________________
Name:
Title:
SIGNATURE
PAGE FOR THE INDENTURE, DATED AS OF APRIL 13, 2005, BY AND BETWEEN NEXTWAVE
WIRELESS LLC AND JPMORGAN CHASE BANK, N.A.
Trustee:
JPMORGAN
CHASE BANK, N.A.
By:_______________________________
Name:
Title:
SIGNATURE
PAGE FOR THE INDENTURE, DATED AS OF APRIL 13, 2005, BY AND BETWEEN NEXTWAVE
WIRELESS LLC AND JPMORGAN CHASE BANK, N.A.
EXHIBIT
A
(Face
of
Note)
ZERO
COUPON NON-RECOURSE SECURED NOTES DUE 2055
CUSIP
65337P
AA9
No. ____
|
$_____________
|
NEXTWAVE
WIRELESS LLC
promises
to pay to [______________] or registered assigns, the principal sum of
_________________ Dollars ($______________) on April 13, 2055.
Dated:
April 13, 2005.
IN
WITNESS WHEREOF, the Company has caused this Note to be signed manually or
by
facsimile by its duly authorized officer.
NEXTWAVE
WIRELESS LLC
By:______________________________
Name:
Title:
This
is
one of the [Global] Notes
referred
to in the
within-mentioned
Indenture:
JPMORGAN
CHASE BANK, N.A.,
as
Trustee
By:___________________________
Authorized
Officer
Dated:
April 13, 2005
A-1
(Back
of
Note)
ZERO
COUPON NON-RECOURSE SECURED NOTES DUE 2055
[Insert
the Global Note Legend, if applicable pursuant to the terms of the
Indenture]
Capitalized
terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.
1.
|
Method
of Payment.
The Notes shall be payable as to principal only at the office or
agency of
the Paying Agent maintained for such purpose.
|
2.
|
Paying
Agent and Registrar.
JPMorgan Chase Bank, N.A., the Trustee under the Indenture, shall
act as
Paying Agent and Registrar. Neither the Company nor any of its
Subsidiaries shall act in any such
capacity.
|
3.
|
Indenture.
The Company issued the Notes under an Indenture dated as of April
13, 2005
(“Indenture”)
between the Company and the Trustee. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture
by
reference to the Trust Indenture Act of 1939, as amended. The Notes
are subject to all such terms, and Holders are referred to the Indenture
and such Act for a statement of such terms. To the extent any
provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be
controlling.
|
4.
|
Denominations,
Transfer, Exchange.
The Notes are in registered form without coupons in denominations
of $1.00
and integral multiples thereof. The transfer of Notes may be
registered and Notes 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 the Company
may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or
register the transfer of any Note or portion of a Note selected for
redemption, except for the unredeemed portion of any Note being redeemed
in part. Also, the Company need not exchange or register the
transfer of any Notes for a period of 15 days before the mailing
of a
notice of redemption of Notes to be
redeemed.
|
5.
|
Persons
Deemed Owners.
The registered Holder of a Note may be treated as its owner for all
purposes.
|
6.
|
Amendment,
Supplement and Waiver.
Subject to certain exceptions, the Company and the Trustee may amend
or
supplement the Indenture or the Notes with the consent of the Holders
of a
majority in principal amount of the then outstanding Notes voting
as a
single class. Without the consent of any Holder, the Company and
the
Trustee may amend or supplement the Indenture or the Notes to cure
any
ambiguity, omission, defect or inconsistency, to provide for the
assumption by a successor corporation, partnership or limited liability
company of the obligations of the Company under the Indenture, to
provide
for uncertificated Notes in addition to certificated Notes, to further
secure the Notes, to add to the covenants of the Company for the
benefit
of the Holders of the Notes or to surrender any right or power conferred
upon the Company, to make any change that would provide any additional
rights or benefits to the Holders of Notes or that does not materially
adversely affect the legal rights under the Indenture of any such
Holder,
to make any change to comply with any requirement of the Commission
in
order to effect or maintain the qualification of the Indenture under
the
TIA.
|
7.
|
Trustee
Dealings with Company.
Subject to certain limitations, the Trustee in its individual or
any other
capacity may become the owner or pledgee of Notes and may otherwise deal
with the Company or any affiliate of the Company with the same rights
it
would have if it were not the
Trustee.
|
8.
|
Non-Recourse.
|
THE
NOTES CONVEY TO EACH HOLDER A DIRECT BENEFICIAL INTEREST IN THE COLLATERAL,
SUBJECT TO THE TERMS AND CONDITIONS SET FORTH AND DESCRIBED MORE FULLY IN THIS
INDENTURE AND THE PLEDGE, ASSIGNMENT AND SECURITY AGREEMENT. EACH HOLDER OF
NOTES, BY ACCEPTING A NOTE, ACKNOWLEDGES THAT THE NOTES ARE NON-RECOURSE NOTES
AND THAT A HOLDER’S SOLE RECOURSE FOR ANY OBLIGATIONS SHALL BE LIMITED TO THE
COLLATERAL, SUBJECT TO THE EXCEPTIONS SET FORTH BELOW. NO HOLDER SHALL HAVE
RECOURSE AGAINST (1) NEXTWAVE WIRELESS LLC OR ITS ASSETS OR ITS AFFILIATES,
EXCEPT TO THE EXTENT THAT NEXTWAVE WIRELESS LLC RECEIVES ANY PORTION OF THE
COLLATERAL OR OTHERWISE DOES NOT COMPLY WITH ANY OF THE NOTES ESCROW DOCUMENTS
(FOR THE AVOIDANCE OF DOUBT, IT BEING UNDERSTOOD THAT NEXTWAVE WIRELESS LLC
SHALL NOT BE DEEMED TO BE IN SUCH NONCOMPLIANCE DUE TO ITS FAILURE TO PAY THE
NOTES ON THE MATURITY DATE FROM ANY OF ITS ASSETS, OTHER THAN THE COLLATERAL),
OR (2) ANY OF THE OTHER REORGANIZED DEBTORS (AS DEFINED IN THE PLAN), VERIZON
WIRELESS, AIRTOUCH CELLULAR, OR ANY OF THEIR RESPECTIVE AFFILIATES, OR THE
VERIZON ESCROW ACCOUNT, IN EACH CASE FOR PAYMENT OF ANY AMOUNTS UNDER THE NOTES.
ANY CLAIMS UNDER THE NOTES (EXCEPT AS DESCRIBED IN THE IMMEDIATELY PRECEDING
SENTENCE WITH RESPECT TO NEXTWAVE WIRELESS LLC) WILL ONLY BE SATISFIED OUT
OF
THE COLLATERAL.
A-2
No
past,
present or future director, officer, employee, incorporator, stockholder,
organizer or member of the Company, shall have any liability for any obligations
of the Company under the Indenture, the Notes 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.
9.
|
Mandatory
Redemption.
In
the event and on each occasion that any Released Escrow Amount is
released
from the Verizon Escrow Account and is subject to the Instruction
Letter,
on the tenth Business Day after such release, subject to Section
3.08 of
the Indenture, the Company shall redeem Notes in an amount equal
to the
aggregate amount of such Released Escrow
Amount.
|
10.
|
Notice
of Redemption.
Notice of redemption shall be mailed at least 30 days before the
redemption date to each Holder whose Notes are to be redeemed at
its
registered address.
|
11.
|
Cancellation.
Upon the occurrence of the Cancellation Date, this Note shall be
null,
void and of no effect, and shall be surrendered to the Trustee for
cancellation in accordance with Section 2.11 of the
Indenture.
|
12.
|
Tax
Treatment.
For Federal income tax purposes, absent a contrary determination
by the
Internal Revenue Service or a court of competent jurisdiction, the
Notes
shall be treated as evidencing a direct beneficial interest by the
Holders
in the Verizon Escrow Amount to which the Company is entitled pursuant
to
the Verizon Escrow Agreement, and the Holders shall be treated as
direct
owners of the Company’s entitlement to the Verizon Escrow Amount (rather
than the Company). The Company, the Trustee and the Holders shall
report
consistent therewith for tax purposes, including, to the extent permitted
by applicable law, for state and local income tax
purposes.
|
13.
|
Authentication.
This Note shall not be valid until authenticated by the manual signature
of the Trustee or an authenticating
agent.
|
14.
|
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).
|
15.
|
Governing
Law.
The internal law of the State of New York shall govern and be used
to
construe this Note without giving effect to applicable principals
of
conflicts of law to the extent that the application of the laws of
another
jurisdiction would be required
thereby.
|
16.
|
CUSIP
Numbers.
Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP
numbers
to be printed on the Notes and the Trustee may use CUSIP numbers
in
notices of redemption as a convenience to Holders. No representation
is
made as to the accuracy of such numbers either as printed on the
Notes or
as contained in any notice of redemption and reliance may be placed
only
on the other identification numbers placed
thereon.
|
The
Company shall furnish to any Holder upon written request and without charge
a
copy of the Indenture. Requests may be made to:
NextWave
Wireless LLC
000
Xxxx
Xxxxxx Xxxxxx
Xxxxxxxxx,
XX 00000
A-3
Assignment
Form
To
assign
this Note, fill in the form below:
(I)
or
(we) assign and transfer this Note to
(Insert
assignee’s social security or other tax I.D. no.)
(Print
or
type assignee’s name, address and zip code)
and
irrevocably
appoint__________________________________________________________________________________________________________as
agent
to transfer this Note on the books of the Company. The agent may
substitute another to act for him.
Date:
______________
Your
Signature:__________________________________
(Sign
exactly as your name appears on the face of this Note)
Signature
Guarantee:______________________________
SIGNATURE
GUARANTEE
Signatures
must be guaranteed by an “eligible guarantor institution” meeting the
requirements of the Registrar, which requirements include membership or
participation in the Security Transfer Agent Medallion Program (“STAMP”) or such
other “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, all in accordance with the
Securities Exchange Act of 1934, as amended.
A-4
SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE
The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Definitive Note, or exchanges of a part of another Global
Note or Definitive Note for an interest in this Global Note, have been
made:
Date
of Exchange
|
Amount
of
decrease
in
Principal
Amount
of
this Global Note
|
Amount
of increase
in
Principal Amount
of
this Global Note
|
Principal
Amount
of
this Global Note
following
such
decrease
(or
increase)
|
Signature
of
authorized
signatory
of
Trustee or
Note
Custodian
|
||||
B-1
CROSS-REFERENCE
TABLE
TIA
Section Reference
|
Indenture
Section
|
|
310(a)(1)
|
5.08
|
|
(a)(2)
|
5.08
|
|
(a)(3)
|
5.13
|
|
(a)(4)
|
N.A.
|
|
(a)(5)
|
5.08
|
|
(b)
|
5.07
|
|
(c)
|
N.A.
|
|
311(a)
|
5.12
|
|
(b)
|
5.12
|
|
(c)
|
N.A
|
|
312(a)
|
6.02
|
|
(b)
|
6.02;
13.03
|
|
(c)
|
13.03
|
|
313(a)
|
6.03
|
|
(b)
|
N.A.
|
|
(c)
|
6.03;
13.02
|
|
(d)
|
6.03
|
|
314(a)
|
3.05
|
|
(b)
|
10.02
|
|
(c)(1)
and (2)
|
11.01;
13.04
|
|
(c)(3)
|
N.A.
|
|
(d)
|
N.A.
|
|
(e)
|
13.05
|
|
315(a)
|
5.01;
5.02
|
|
(b)
|
5.14
|
|
(c)
|
5.01
|
|
(d)
|
5.01
|
|
(e)
|
4.10
|
|
3.16(a)(1)(A)
|
4.04
|
|
3.16(a)(1)(B)
|
4.03
|
|
(a)(2)
|
N.A.
|
|
(b)
|
4.06
|
|
(c)
|
2.12
|
|
317(a)(1)
|
4.07
|
|
(a)(2)
|
4.08
|
|
(b)
|
2.04
|
|
318(a)
|
13.01
|
N.A.
means Not Applicable.
Note:
This Cross-Reference Table shall not, for any purpose, be deemed to be part
of
this Indenture.
Page
ARTICLE
1.
|
DEFINITIONS
AND INCORPORATION BY REFERENCE
|
1
|
Section
1.01.
|
Definitions
|
1
|
Section
1.02.
|
Other
Definitions
|
6
|
Section
1.03.
|
Incorporation
by Reference of Trust Indenture Act
|
6
|
Section
1.04.
|
Rules
of Construction
|
6
|
ARTICLE
2.
|
THE
NOTES
|
7
|
Section
2.01.
|
Form
and Dating
|
7
|
Section
2.02.
|
Execution
and Authentication
|
8
|
Section
2.03.
|
Registrar
and Paying Agent
|
9
|
Section
2.04.
|
Paying
Agent to Hold Money in Trust
|
9
|
Section
2.05.
|
Transfer
and Exchange
|
9
|
Section
2.06.
|
Legend
|
11
|
Section
2.07.
|
Replacement
Notes
|
12
|
Section
2.08.
|
Outstanding
Notes
|
12
|
Section
2.09.
|
Treasury
Notes
|
13
|
Section
2.10.
|
Temporary
Notes
|
13
|
Section
2.11.
|
Cancellation
|
13
|
Section
2.12.
|
Record
Date
|
13
|
Section
2.13.
|
CUSIP
Numbers
|
13
|
ARTICLE
3.
|
COVENANTS
|
14
|
Section
3.01.
|
Payment
of Notes
|
14
|
Section
3.02.
|
Delivery
of Released Escrow Amount
|
14
|
Section
3.03.
|
Delivery
and Payment of Tax Distribution Amounts
|
14
|
Section
3.04.
|
Maintenance
of Office or Agency
|
14
|
Section
3.05.
|
Compliance
Certificate; Reports
|
15
|
Section
3.06.
|
Stay,
Extension and Usury Laws
|
15
|
Section
3.07.
|
Corporate
Existence
|
15
|
Section
3.08.
|
Payment
of Escrow Amounts
|
16
|
ARTICLE
4.
|
DEFAULTS
AND REMEDIES
|
16
|
Section
4.01.
|
Events
of Default
|
16
|
Section
4.02.
|
Remedies
|
16
|
Section
4.03.
|
Waiver
of Defaults
|
16
|
Section
4.04.
|
Control
by Majority
|
17
|
Section
4.05.
|
Limitation
on Suits
|
17
|
i
TABLE
OF CONTENTS
(continued)
Page
Section
4.06.
|
Rights
of Holders to Receive Payment
|
17
|
Section
4.07.
|
Collection
Suit by Trustee
|
17
|
Section
4.08.
|
Trustee
May File Proofs of Claim
|
18
|
Section
4.09.
|
Priorities
|
18
|
Section
4.10.
|
Undertaking
for Costs
|
18
|
ARTICLE
5.
|
TRUSTEE
|
19
|
Section
5.01.
|
Certain
Duties and Responsibilities
|
19
|
Section
5.02.
|
Certain
Rights of Trustee
|
20
|
Section
5.03.
|
Not
Responsible for Recitals or Issuance of Notes
|
21
|
Section
5.04.
|
May
Hold Notes
|
22
|
Section
5.05.
|
Money
Held in Trust
|
22
|
Section
5.06.
|
Compensation
and Indemnity
|
22
|
Section
5.07.
|
Disqualification;
Conflicting Interests
|
23
|
Section
5.08.
|
Corporate
Trustee Required; Eligibility
|
23
|
Section
5.09.
|
Resignation
and Removal; Appointment of Successor
|
23
|
Section
5.10.
|
Acceptance
of Appointment by Successor
|
24
|
Section
5.11.
|
Merger,
Conversion, Consolidation or Succession to Business
|
24
|
Section
5.12.
|
Preferential
Collection of Claims Against Company
|
25
|
Section
5.13.
|
Appointment
of Co-Trustee
|
25
|
Section
5.14.
|
Notice
of Defaults
|
25
|
ARTICLE
6.
|
HOLDERS’
LISTS AND REPORTS BY TRUSTEE
|
26
|
Section
6.01.
|
Company
to Furnish Trustee Names and Addresses of Holders
|
26
|
Section
6.02.
|
Preservation
of Information; Communications to Holders
|
26
|
Section
6.03.
|
Reports
by Trustee
|
26
|
ARTICLE
7.
|
CONSOLIDATION,
MERGER, CONVEYANCE, TRANSFER OR LEASE
|
27
|
Section
7.01.
|
Consolidation,
Etc., Only on Certain Terms
|
27
|
Section
7.02.
|
Successor
Substituted
|
27
|
ARTICLE
8.
|
AMENDMENT,
SUPPLEMENT AND WAIVER
|
27
|
Section
8.01.
|
Without
Consent of Holders of Notes
|
27
|
Section
8.02.
|
With
Consent of Holders of Notes
|
28
|
Section
8.03.
|
Compliance
with Trust Indenture Act
|
29
|
Section
8.04.
|
Revocation
and Effect of Consents
|
29
|
Section
8.05.
|
Notation
on or Exchange of Notes
|
29
|
Section
8.06.
|
Trustee
to Sign Amendments, etc.
|
29
|
ii
TABLE
OF CONTENTS
(continued)
Page
ARTICLE
9.
|
REDEMPTION
OF NOTES
|
29
|
Section
9.01.
|
Mandatory
Redemption
|
29
|
Section
9.02.
|
Notice
to Trustee
|
30
|
Section
9.03.
|
Selection
by Trustee of Notes to Be Redeemed
|
30
|
Section
9.04.
|
Notice
of Redemption
|
30
|
Section
9.05.
|
Notes
Payable on Redemption Date
|
31
|
Section
9.06.
|
Notes
Redeemed in Part
|
31
|
ARTICLE
10.
|
COLLATERAL
AND SECURITY
|
31
|
Section
10.01.
|
Pledge,
Assignment and Security Agreement.
|
31
|
Section
10.02.
|
Recording
and Opinions
|
32
|
Section
10.03.
|
Authorization
of Actions to Be Taken by the Trustee Under the Security
Agreement.
|
32
|
Section
10.04.
|
Authorization
of Receipt of Funds by the Trustee Under the Pledge and Assignment
Agreement.
|
32
|
Section
10.05.
|
Termination
of Security Interest.
|
32
|
ARTICLE
11.
|
SATISFACTION
AND DISCHARGE
|
33
|
Section
11.01.
|
Satisfaction
and Discharge
|
33
|
Section
11.02.
|
Deposited
Cash and U.S. Government Securities to be Held in Trust; Other
Miscellaneous Provisions
|
33
|
ARTICLE
12.
|
NON-RECOURSE
OBLIGATION
|
33
|
Section
12.01.
|
Non-Recourse
|
33
|
Section
12.02.
|
Acknowledgement
of the Security Interest of Verizon Wireless and AirTouch
Cellular
|
34
|
Section
12.03.
|
No
Rights in Verizon Escrow Account
|
34
|
ARTICLE
13.
|
MISCELLANEOUS
|
34
|
Section
13.01.
|
Trust
Indenture Act Controls
|
34
|
Section
13.02.
|
Notices
|
34
|
Section
13.03.
|
Communication
by Holders of Notes with Other Holders of Notes
|
35
|
Section
13.04.
|
Certificate
and Opinion as to Conditions Precedent
|
35
|
Section
13.05.
|
Statements
Required in Certificate or Opinion
|
36
|
Section
13.06.
|
Rules
by Trustee and Agents
|
36
|
Section
13.07.
|
Tax
Treatment
|
36
|
Section
13.08.
|
Governing
Law; Waiver of Jury Trial
|
36
|
Section
13.09.
|
No
Adverse Interpretation of Other Agreements
|
37
|
Section
13.10.
|
Successors
|
37
|
Section
13.11.
|
Severability
|
37
|
Section
13.12.
|
Counterpart
Originals
|
37
|
Section
13.13.
|
Table
of Contents, Headings, etc.
|
37
|
EXHIBITS
EXHIBIT
A Form
of
Non-Recourse Secured Note
EXHIBIT
B
Schedule
of Exchanges of Interests in the Global Note
EXHIBIT
C Form
of
Pledge, Assignment and Security Agreement
iii