Exhibit 4.1
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC., AS ISSUER,
3090671 NOVA SCOTIA COMPANY
3090672 NOVA SCOTIA COMPANY
▇▇▇▇▇▇ PHARMACY, INC.
JCG HOLDINGS (USA), INC.
▇▇▇▇ ▇▇▇▇▇ ACQUISITION ONE, INC.
▇▇▇▇ ▇▇▇▇▇ ACQUISITION THREE, INC.
▇▇▇▇ ▇▇▇▇▇ ACQUISITION TWO, INC.
▇▇▇▇ ▇▇▇▇▇ GROUP HOLDINGS (USA), LLC
MAXI DRUG NORTH, INC.
MAXI DRUG SOUTH, L.P.
MAXI DRUG, INC.
MAXI GREEN INC.
MC WOONSOCKET, INC.
P.J.C. DISTRIBUTION, INC.
P.J.C. OF VERMONT INC.
P.J.C. REALTY CO., INC.
PATERSON'S PHARMACIES LTD.
PJC ARLINGTON REALTY LLC
PJC DORCHESTER REALTY LLC
PJC ESSEX REALTY LLC
PJC HAVERHILL REALTY LLC
PJC HYDE PARK REALTY LLC
PJC LEASE HOLDINGS, INC.
PJC MANCHESTER REALTY LLC
PJC MANSFIELD REALTY LLC
PJC NEW LONDON REALTY LLC
PJC NORWICH REALTY LLC
PJC OF CRANSTON, INC.
PJC OF EAST PROVIDENCE, INC.
PJC OF MASSACHUSETTS, INC.
PJC OF RHODE ISLAND, INC.
PJC OF WEST WARWICK, INC.
PJC PETERBOROUGH REALTY LLC
PJC PROVIDENCE REALTY LLC
PJC REALTY MA, INC.
PJC REALTY N.E. LLC
PJC REVERE REALTY LLC
PJC SPECIAL REALTY HOLDINGS, INC.
RX INFORMATION CENTRE LTD.
SERVICES SECURIVOL INC.
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) USA, INC.
AS GUARANTORS,
AND
THE BANK OF NEW YORK, AS TRUSTEE
INDENTURE
DATED AS OF JULY 30, 2004
$350,000,000
7 5/8% SENIOR NOTES DUE 2012
Reconciliation and tie between Trust Indenture Act of 1939,
as amended, and Indenture, dated as of July 30, 2004
Trust Indenture Indenture
Act Section Section
--------------- ---------
Section 310 (a)(1).............................................................609
(a)(2).............................................................609
(b)................................................................608, 610
Section 311 (a)................................................................613
(c)................................................................Not Applicable
Section 312 (a)................................................................701
(b)................................................................702
(c)................................................................702
Section 313 (a)................................................................703
Section 314 (a)................................................................704
(a)(4).............................................................1018
(b)................................................................Not Applicable
(c)(1).............................................................103, 104, 404, 1201
(c)(2).............................................................103, 104, 404, 1201
(d)................................................................Not Applicable
(e)................................................................103
Section 315 (a)................................................................601(b)
(b)................................................................602
(c)................................................................601(a)
(d)................................................................601(c), 603
(e)................................................................514
Section 316 (a)(last sentence).................................................101 (Outstanding)
(a)(1)(A)..........................................................502, 512
(a)(1)(B)..........................................................513
(a)(2).............................................................Not Applicable
(b)................................................................508
(c)................................................................105
Section 317 (a)(1).............................................................503
(a)(2).............................................................504
(b)................................................................1003
Section 318 (a)................................................................108
----------
Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of this Indenture.
TABLE OF CONTENTS
Page
----
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
Section 101. Definitions...................................................................2
"Acquired Indebtedness..................................................................2
"Acquisition............................................................................3
"Additional Securities..................................................................3
"Additional Senior Subordinated Securities..............................................3
"Administrative Agent Bank..............................................................3
"Affiliate..............................................................................3
"Applicable Procedures..................................................................3
"Asset Sale.............................................................................3
"Asset Swap.............................................................................4
"Attributable Indebtedness..............................................................5
"Average Life to Stated Maturity........................................................5
"Bankruptcy Law.........................................................................5
"Board of Directors.....................................................................5
"Board Resolution.......................................................................5
"Book-Entry Security....................................................................5
"Business Day...........................................................................5
"Capital Lease Obligation...............................................................5
"Capital Stock..........................................................................5
"Cash Equivalents.......................................................................6
"Change of Control......................................................................6
"Clearstream............................................................................7
"Commission.............................................................................7
"Commodity Price Protection Agreement...................................................8
"Common Stock...........................................................................8
"Company................................................................................8
"Company Request........................................................................8
"Consolidated Fixed Charge Coverage Ratio...............................................8
"Consolidated Income Tax Expense........................................................9
"Consolidated Interest Expense..........................................................9
"Consolidated Net Income (Loss)........................................................10
"Consolidated Net Tangible Assets......................................................11
"Consolidated Non-cash Charges.........................................................11
"Consolidation.........................................................................11
"Corporate Trust Office................................................................11
"Credit Agreement......................................................................12
"Credit Facility.......................................................................12
"Currency Hedging Agreements...........................................................12
"DBRS..................................................................................12
"Default...............................................................................12
"Depositary............................................................................12
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"Designated Non-cash Consideration.....................................................12
"Disinterested Director................................................................13
"Equity Offering.......................................................................13
"Euroclear.............................................................................13
"Event of Default......................................................................13
"Exchange Act..........................................................................13
"Exchange Offer........................................................................13
"Exchange Offer Registration Statement.................................................13
"Exchange Securities...................................................................13
"Fair Market Value.....................................................................13
"Fall Away Event.......................................................................13
"Generally Accepted Accounting Principles..............................................13
"Global Securities.....................................................................13
"Guarantee.............................................................................13
"Guaranteed Debt.......................................................................13
"Guarantor.............................................................................14
"Holder................................................................................14
"IAI Global Securities.................................................................14
"Indebtedness..........................................................................14
"Indenture.............................................................................15
"Indenture Obligations.................................................................15
"Initial Purchasers....................................................................16
"Initial Securities....................................................................16
"Initial Senior Subordinated Securities................................................16
"Institutional Accredited Investor.....................................................16
"Interest Payment Date.................................................................16
"Interest Rate Agreements..............................................................16
"Investment............................................................................16
"Investment Grade Status...............................................................16
"Issue Date............................................................................16
"Lien..................................................................................17
"Maturity..............................................................................17
"▇▇▇▇▇'▇...............................................................................17
"Net Cash Proceeds.....................................................................17
"Officers' Certificate.................................................................18
"Opinion of Counsel....................................................................18
"Opinion of Independent Counsel........................................................18
"Outstanding...........................................................................18
"Pari Passu Indebtedness...............................................................19
"Paying Agent..........................................................................19
"Permitted Business....................................................................19
"Permitted Holders.....................................................................19
"Permitted Investment..................................................................19
"Permitted Joint Venture...............................................................20
"Permitted Lien........................................................................21
"Permitted Securitization Transaction..................................................22
"Person................................................................................23
"Predecessor Security..................................................................23
"Preferred Stock.......................................................................23
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"Purchase Money Note...................................................................23
"Purchase Money Obligation.............................................................23
"Qualified Capital Stock...............................................................24
"Redeemable Capital Stock..............................................................24
"Redemption Date.......................................................................24
"Redemption Price......................................................................24
"Registration Rights Agreement.........................................................24
"Registration Statement................................................................24
"Regular Record Date...................................................................24
"Regulation S..........................................................................24
"Regulation S Global Securities........................................................24
"Responsible Officer...................................................................24
"Restricted Subsidiary.................................................................25
"Rule 144A.............................................................................25
"Rule 144A Global Securities...........................................................25
"Sale and Leaseback Transaction........................................................25
"S&P...................................................................................25
"Securities............................................................................25
"Securities Act........................................................................25
"Securitization Entity.................................................................25
"Senior Subordinated Exchange Securities...............................................26
"Senior Subordinated Notes Indenture...................................................26
"Senior Subordinated Securities........................................................26
"Senior Subordinated Securities Guarantee..............................................26
"Senior Subordinated Securities Guarantor..............................................26
"Shelf Registration Statement..........................................................26
"Significant Subsidiary................................................................26
"Special Record Date...................................................................26
"Standard Securitization Undertakings..................................................26
"Stated Maturity.......................................................................26
"Stock Purchase Agreement..............................................................26
"Subordinated Indebtedness.............................................................26
"Subsidiary............................................................................27
"Successor Security....................................................................27
"Taxing Authority......................................................................27
"Taxing Jurisdiction...................................................................27
"Transactions..........................................................................27
"Trust Indenture Act...................................................................27
"Trustee...............................................................................27
"U.S. Government Obligations...........................................................27
"Unrestricted Global Securities........................................................28
"Unrestricted Subsidiary...............................................................28
"Unrestricted Subsidiary Indebtedness..................................................28
"Voting Stock..........................................................................28
"Wholly Owned Restricted Subsidiary....................................................28
Section 102. Other Definitions............................................................29
Section 103. Compliance Certificates and Opinions.........................................30
Section 104. Form of Documents Delivered to Trustee.......................................30
Section 105. Acts of Holders..............................................................31
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Section 106. Notices, etc., to the Trustee, the Company and any Guarantor.................32
Section 107. Notice to Holders; Waiver....................................................33
Section 108. Conflict with Trust Indenture Act............................................33
Section 109. Effect of Headings and Table of Contents.....................................33
Section 110. Successors and Assigns.......................................................33
Section 111. Separability Clause..........................................................33
Section 112. Benefits of Indenture........................................................34
Section 113. GOVERNING LAW................................................................34
Section 114. Waiver of Jury Trial.........................................................34
Section 115. Force Majeure................................................................34
Section 116. Legal Holidays...............................................................34
Section 117. Independence of Covenants....................................................34
Section 118. Schedules and
Exhibits.......................................................35
Section 119. Counterparts.................................................................35
Section 120. No Personal Liability of Directors, Officers, Employees or Stockholders......35
ARTICLE TWO
SECURITY FORMS
Section 201. Forms Generally..............................................................35
Section 202. Form of Face of Security.....................................................36
Section 203. Form of Reverse of Securities................................................52
Section 204. Form of Guarantee............................................................58
ARTICLE THREE
THE SECURITIES
Section 301. Title and Terms..............................................................60
Section 302. Denominations................................................................61
Section 303. Execution, Authentication, Delivery and Dating...............................61
Section 304. Temporary Securities.........................................................62
Section 305. Registration, Registration of Transfer and Exchange..........................62
Section 306. Book Entry Provisions for Global Securities..................................64
Section 307. Special Transfer and Exchange Provisions.....................................65
Section 308. Mutilated, Destroyed, Lost and Stolen Securities.............................69
Section 309. Payment of Interest; Interest Rights Preserved...............................69
Section 310. CUSIP Numbers................................................................70
Section 311. Persons Deemed Owners........................................................71
Section 312. Cancellation.................................................................71
Section 313. Computation of Interest......................................................71
ARTICLE FOUR
DEFEASANCE AND COVENANT DEFEASANCE
Section 401. Company's Option to Effect Defeasance or Covenant Defeasance.................71
Section 402. Defeasance and Discharge.....................................................71
Section 403. Covenant Defeasance..........................................................72
Section 404. Conditions to Defeasance or Covenant Defeasance..............................72
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Section 405. Deposited Money and U.S. Government Obligations to Be Held
in Trust; Other Miscellaneous Provisions...................................74
Section 406. Reinstatement................................................................75
ARTICLE FIVE
REMEDIES
Section 501. Events of Default............................................................75
Section 502. Acceleration of Maturity; Rescission and Annulment...........................77
Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee..............78
Section 504. Trustee May File Proofs of Claim.............................................79
Section 505. Trustee May Enforce Claims without Possession of Securities..................79
Section 506. Application of Money Collected...............................................80
Section 507. Limitation on Suits..........................................................80
Section 508. Unconditional Right of Holders to Receive Principal, Premium and Interest....81
Section 509. Restoration of Rights and Remedies...........................................81
Section 510. Rights and Remedies Cumulative...............................................81
Section 511. Delay or Omission Not Waiver.................................................81
Section 512. Control by Holders...........................................................81
Section 513. Waiver of Past Defaults......................................................82
Section 514. Undertaking for Costs........................................................82
Section 515. Waiver of Stay, Extension or Usury Laws......................................82
Section 516. Remedies Subject to Applicable Law...........................................83
ARTICLE SIX
THE TRUSTEE
Section 601. Duties of Trustee............................................................83
Section 602. Notice of Defaults...........................................................84
Section 603. Certain Rights of Trustee....................................................84
Section 604. Trustee Not Responsible for Recitals, Dispositions of Securities or
Application of Proceeds Thereof............................................86
Section 605. Trustee and Agents May Hold Securities; Collections; etc.....................86
Section 606. Money Held in Trust..........................................................86
Section 607. Compensation and Indemnification of Trustee and Its Prior Claim..............86
Section 608. Conflicting Interests........................................................87
Section 609. Trustee Eligibility..........................................................87
Section 610. Resignation and Removal; Appointment of Successor Trustee....................87
Section 611. Acceptance of Appointment by Successor.......................................89
Section 612. Merger, Conversion, Consolidation or Succession to Business..................89
Section 613. Preferential Collection of Claims Against Company............................90
Section 614. Co-Trustee...................................................................90
ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
Section 701. Company to Furnish Trustee Names and Addresses of Holders....................91
Section 702. Disclosure of Names and Addresses of Holders.................................91
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Section 703. Reports by Trustee...........................................................91
Section 704. Reports by Company and Guarantors............................................91
ARTICLE EIGHT
CONSOLIDATION, MERGER, SALE OF ASSETS
Section 801. Company and Guarantors May Consolidate, etc., Only on Certain Terms..........92
Section 802. Successor Substituted........................................................94
ARTICLE NINE
SUPPLEMENTAL INDENTURES
Section 901. Supplemental Indentures and Agreements without Consent of Holders............94
Section 902. Supplemental Indentures and Agreements with Consent of Holders...............95
Section 903. Execution of Supplemental Indentures and Agreements..........................96
Section 904. Effect of Supplemental Indentures............................................96
Section 905. Conformity with Trust Indenture Act..........................................96
Section 906. Reference in Securities to Supplemental Indentures...........................97
Section 907. Notice of Supplemental Indentures............................................97
Section 908. Revocation and Effects of Consents...........................................97
ARTICLE TEN
COVENANTS
Section 1001. Payment of Principal, Premium and Interest...................................97
Section 1002. Maintenance of Office or Agency..............................................97
Section 1003. Money for Security Payments to Be Held in Trust..............................98
Section 1004. Corporate Existence..........................................................99
Section 1005. Payment of Taxes and Other Claims............................................99
Section 1006. Maintenance of Properties...................................................100
Section 1007. Waiver of Certain Covenants.................................................100
Section 1008. Limitation on Indebtedness..................................................100
Section 1009. Limitation on Restricted Payments...........................................105
Section 1010. Limitation on Transactions with Affiliates..................................109
Section 1011. Limitation on Liens.........................................................110
Section 1012. Limitation on Sale of Assets................................................110
Section 1013. Limitation on Issuances of Guarantees of Indebtedness.......................114
Section 1014. Purchase of Securities upon a Change of Control.............................115
Section 1015. Limitation on Subsidiary Preferred Stock....................................118
Section 1016. Limitation on Dividend and Other Payment Restrictions Affecting
Restricted Subsidiaries...................................................118
Section 1017. Limitation on Unrestricted Subsidiaries.....................................120
Section 1018. Sale and Leaseback Transactions.............................................121
Section 1019. Provision of Financial Statements...........................................121
Section 1020. Statement by Officers as to Default.........................................122
Section 1021. Fall Away Event.............................................................123
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ARTICLE ELEVEN
REDEMPTION OF SECURITIES
Section 1101. Additional Amounts..........................................................125
Section 1102. Tax Redemption..............................................................127
Section 1103. Rights of Redemption........................................................128
Section 1104. Applicability of Article....................................................129
Section 1105. Election to Redeem; Notice to Trustee.......................................129
Section 1106. Selection by Trustee of Securities to Be Redeemed...........................129
Section 1107. Notice of Redemption........................................................129
Section 1108. Deposit of Redemption Price.................................................130
Section 1109. Securities Payable on Redemption Date.......................................130
Section 1110. Securities Redeemed or Purchased in Part....................................131
ARTICLE TWELVE
SATISFACTION AND DISCHARGE
Section 1201. Satisfaction and Discharge of Indenture......................................131
Section 1202. Application of Trust Money...................................................132
ARTICLE THIRTEEN
GUARANTEES
Section 1301. Guarantors' Guarantee.......................................................132
Section 1302. Continuing Guarantee; No Right of Set-Off; Independent Obligation...........133
Section 1303. Guarantee Absolute..........................................................134
Section 1304. Right to Demand Full Performance............................................135
Section 1305. Waivers.....................................................................136
Section 1306. The Guarantors Remain Obligated in Event the Company Is No Longer
Obligated to Discharge Indenture Obligations..............................136
Section 1307. Fraudulent Conveyance; Contribution; Subrogation............................137
Section 1308. Guarantee Is in Addition to Other Security..................................137
Section 1309. Release of Security Interests...............................................137
Section 1310. No Bar to Further Actions...................................................138
Section 1311. Failure to Exercise Rights Shall Not Operate as a Waiver; No Suspension
of Remedies...............................................................138
Section 1312. Trustee's Duties; Notice to Trustee.........................................138
Section 1313. Successors and Assigns......................................................138
Section 1314. Release of Guarantee........................................................138
Section 1315. Execution of Guarantee......................................................139
TESTIMONIUM
SIGNATURE AND SEALS
ACKNOWLEDGMENTS
EXHIBIT A Regulation S Certificate
-vii-
EXHIBIT B Restricted Securities Certificate
EXHIBIT C Institutional Accredited Investor Certificate
EXHIBIT D Unrestricted Security Certificate
EXHIBIT E Form of Supplemental Indenture
-viii-
INDENTURE, dated as of July 30, 2004, among The ▇▇▇▇ ▇▇▇▇▇ Group (PJC)
Inc., a corporation organized under the laws of Quebec (the "Company"), 3090671
Nova Scotia Company, a company organized under the laws of Nova Scotia, 3090672
Nova Scotia Company, a company organized under the laws of Nova Scotia, ▇▇▇▇▇▇
Pharmacy, Inc., a Delaware corporation, JCG Holdings (USA), Inc., a Delaware
corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition One, Inc., a Delaware corporation, ▇▇▇▇
▇▇▇▇▇ Acquisition Three, Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition
Two, Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Group Holdings (USA), LLC, a
Delaware limited liability company, Maxi Drug North, Inc., a Delaware
corporation, Maxi Drug South, L.P., a Delaware limited partnership, Maxi Drug,
Inc., a Delaware corporation, Maxi Green Inc., a Vermont corporation, MC
Woonsocket, Inc., a Rhode Island corporation, P.J.C. Distribution, Inc., a
Delaware corporation, P.J.C. of Vermont Inc., a Vermont corporation, P.J.C.
Realty Co., Inc., a Delaware corporation, Paterson's Pharmacies Ltd., a limited
company organized under the laws of Ontario, PJC Arlington Realty LLC, a
Delaware limited liability company, PJC Dorchester Realty LLC, a Delaware
limited liability company, PJC Essex Realty LLC, a Delaware limited liability
company, PJC Haverhill Realty LLC, a Delaware limited liability company, PJC
Hyde Park Realty LLC, a Delaware limited liability company, PJC Lease Holdings,
Inc., a Delaware corporation, PJC Manchester Realty LLC, a Delaware limited
liability company, PJC Mansfield Realty LLC, a Delaware limited liability
company, PJC New London Realty LLC, a Delaware limited liability company, PJC
Norwich Realty LLC, a Delaware limited liability company, PJC of Cranston, Inc.,
a Rhode Island corporation, PJC of East Providence, Inc., a Rhode Island
corporation, PJC of Massachusetts, Inc., a Massachusetts corporation, PJC of
Rhode Island, Inc., a Rhode Island corporation, PJC of West Warwick, Inc., a
Rhode Island corporation, PJC Peterborough Realty LLC, a Delaware limited
liability company, PJC Providence Realty LLC, a Delaware limited liability
company, PJC Realty MA, Inc., a Massachusetts corporation, PJC Realty N.E. LLC,
a Delaware corporation, PJC Revere Realty LLC, a Delaware limited liability
company, PJC Special Realty Holdings, Inc., a Delaware corporation, RX
Information Centre Ltd., a limited company organized under the laws of Canada,
Services Securivol Inc., a corporation organized under the laws of Canada, The
▇▇▇▇ ▇▇▇▇▇ Group (PJC) USA, Inc., a Delaware corporation, Thrift Drug Inc., a
Delaware corporation, and Thrift Drug Services, Inc., a Delaware corporation, as
guarantors (each a "Guarantor," and collectively, the "Guarantors"), and The
Bank of
New York, a
New York banking corporation, as trustee (the "Trustee").
RECITALS OF THE COMPANY AND THE GUARANTORS
The Company has duly authorized the creation of an issue of 7 5/8%
Senior Notes due 2012 (the "Initial Securities"), and, when and if issued in an
Exchange Offer, an issue of 7 5/8% Senior Notes due 2012 (the "Exchange
Securities" and, together with the Initial Securities, the "Securities"), of
substantially the tenor and amount hereinafter set forth (subject to the ability
of the Company to issue Additional Securities hereunder as described herein),
and to provide therefore, the Company has duly authorized the execution and
delivery of this Indenture and the Securities;
Each Guarantor has duly authorized the issuance of a Guarantee of the
Securities, of substantially the tenor hereinafter set forth, and to provide
therefor, each Guarantor has duly authorized the execution and delivery of this
Indenture and its Guarantee;
Upon the issuance of the Exchange Securities, this Indenture is
subject to, and shall be governed by, the provisions of the Trust Indenture Act
that are required to be part of and to govern indentures qualified under the
Trust Indenture Act;
The Initial Notes and the Exchange Notes will have terms identical in
all respects (except that the Exchange Notes will not contain terms with respect
to transfer restrictions) and will evidence the same indebtedness of the
Company.
All things necessary have been done to make (i) the Securities, when
duly issued and executed by the Company and authenticated and delivered
hereunder, the valid obligation of the Company, (ii) the Guarantees, when
executed by each of the Guarantors and delivered hereunder, the valid obligation
of each of the Guarantors and (iii) this Indenture a valid agreement of the
Company and each of the Guarantors in accordance with the terms of this
Indenture;
NOW, THEREFORE, THIS INDENTURE WITNESSETH:
For and in consideration of the premises and the purchase of the
Securities by the Holders thereof, it is mutually covenanted and agreed, for the
equal and proportionate benefit of all Holders of the Securities, as follows:
ARTICLE ONE
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
SECTION 101. DEFINITIONS.
For all purposes of this Indenture, except as otherwise expressly
provided or unless the context otherwise requires:
(a) the terms defined in this Article have the meanings assigned
to them in this Article, and include the plural as well as the singular;
(b) all other terms used herein which are defined in the Trust
Indenture Act, either directly or by reference therein, have the meanings
assigned to them therein;
(c) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with GAAP;
(d) the words "herein," "hereof" and "hereunder" and other words
of similar import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision;
(e) all references to $, US$, dollars or United States dollars
shall refer to the lawful currency of the United States of America; and
(f) all references herein to particular Sections or Articles
refer to this Indenture unless otherwise so indicated.
Certain terms used principally in Article Four are defined in Article
Four.
"Acquired Indebtedness" means Indebtedness of a Person (1) existing at
the time such Person becomes a Restricted Subsidiary or (2) assumed in
connection with the acquisition of assets from such Person, in each case, other
than Indebtedness incurred in connection with, or in contemplation of, such
Person becoming a Restricted Subsidiary or such acquisition, as the case may be.
Acquired
2
Indebtedness shall be deemed to be incurred on the date of the related
acquisition of assets from any Person or the date the acquired Person becomes a
Restricted Subsidiary, as the case may be.
"Acquisition" means the consummation of the acquisition by the Company
of all of the outstanding Capital Stock of Eckerd Corporation, a Delaware
corporation, Thrift Drug, Inc., a Delaware corporation, and ▇▇▇▇▇▇▇▇ Drug
Stores, Inc., a Delaware corporation, pursuant to the Stock Purchase Agreement.
"Additional Securities" means further Securities (other than the
Initial Securities) issued under this Indenture in accordance with the terms of
this Indenture, including Sections 303 and 1110 hereof, as part of the same
series as the Initial Securities ranking equally with the Initial Securities in
all respects (other than the issuance dates and, at the option of the Company,
the date from which interest will accrue), subject to compliance with Section
1008 herein. The Initial Securities and any Additional Securities subsequently
issued under this Indenture shall be treated as a single class for all purposes
under this Indenture, including, without limitation, waivers, amendments,
redemptions, and offers to purchase.
"Additional Senior Subordinated Securities" means additional Senior
Subordinated Securities (other than the initial Senior Subordinated Securities)
issued under the Senior Subordinated Securities Indenture in accordance with the
terms of such Indenture, including Sections 303 and 1110 thereof, as part of the
same series as the initial Senior Subordinated Securities ranking equally with
the initial Senior Subordinated Securities in all respects, subject to
compliance with Section 1008 herein.
"Administrative Agent Bank" means any administrative agent bank under
the Credit Agreement.
"Affiliate" means, with respect to any specified Person: (1) any other
Person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified Person; (2) any other Person that
owns, directly or indirectly, 10% or more of any class or series of such
specified Person's (or any of such Person's direct or indirect parent's) Capital
Stock or any officer or director of any such specified Person or other Person
or, with respect to any natural Person, any Person having a relationship with
such Person by blood, marriage or adoption not more remote than first cousin; or
(3) any other Person 10% or more of the Voting Stock of which is beneficially
owned or held directly or indirectly by such specified Person. For the purposes
of this definition, "control" when used with respect to any specified Person
means the power to direct the management and policies of such Person, directly
or indirectly, whether through ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.
"Applicable Procedures" means, with respect to any transfer or
transaction involving a Global Security or beneficial interest therein, the
rules and procedures of the Depositary for such Security, Euroclear and
Clearstream, in each case to the extent applicable to such transaction and as in
effect at the time of such transfer or transaction.
"Asset Sale" means any sale, issuance, conveyance, transfer, lease or
other disposition (including, without limitation, by way of merger,
consolidation or Sale and Leaseback Transaction) (collectively, a "transfer"),
directly or indirectly, in one or a series of related transactions, of:
(1) any Capital Stock of any Restricted Subsidiary;
3
(2) all or substantially all of the properties and assets
of any division or line of business of the Company or any Restricted
Subsidiary; or
(3) any other properties, assets or rights of the Company
or any Restricted Subsidiary other than in the ordinary course of business.
For the purposes of this definition, the term "Asset Sale" shall not
include any transfer of properties or assets
(A) that is governed by the provisions described under
Article Eight hereof,
(B) that is a Change of Control whereby the Company makes
a Change of Control Offer and complies with its terms,
(C) that is by the Company to any Restricted Subsidiary or
by any Restricted Subsidiary to the Company or any Restricted
Subsidiary in accordance with the terms of this Indenture,
(D) that would be within the definition of a "Permitted
Investment,"
(E) that would be within the definition of a "Restricted
Payment" under Section 1009 and would be permitted to be made as a
Restricted Payment (and shall be deemed a Restricted Payment) under
Section 1009,
(F) that is of obsolete equipment,
(G) that consists of cash or Cash Equivalents, inventory,
receivables and other current assets,
(H) sales of accounts receivable, chattel paper and
related assets of the type described in the definition of "Permitted
Securitization Transaction" to a Securitization Entity for the Fair
Market Value thereof and transfers of accounts receivable, chattel
paper and related assets of the type described in the definition of
"Permitted Securitization Transaction" (or a fractional undivided
interest therein) by a Securitization Entity in a Permitted
Securitization Transaction,
(I) the leasing or licensing of any real or personal
property in the ordinary course of business and consistent with past
practice,
(J) the sale of Capital Stock of an Unrestricted
Subsidiary, or
(K) the Fair Market Value of which in the aggregate does
not exceed $10.0 million in any transaction or series of related
transactions.
"Asset Swap" means the exchange by the Company or a Restricted
Subsidiary of a portion of its property, business or assets, for property,
businesses or assets which, or Capital Stock of a Person all or substantially
all of whose assets are of a type used in the business of the Company on the
date of this Indenture or in a Permitted Business, or a combination of any
property, business or assets or Capital Stock of such a Person and cash or Cash
Equivalents.
4
"Attributable Indebtedness" in respect of a Sale and Leaseback
Transaction means, at the time of determination, the present value (discounted
at the rate of interest implicit in such transaction, determined in accordance
with GAAP) of the obligation of the lessee for net rental payments during the
remaining term of the lease included in such Sale and Leaseback Transaction
(including any period for which such lease has been extended or may, at the
option of the lessor, be extended).
"Average Life to Stated Maturity" means, as of the date of
determination with respect to any Indebtedness, the quotient obtained by
dividing (1) the sum of the products of (a) the number of years from the date of
determination to the date or dates of each successive scheduled principal
payment of such Indebtedness multiplied by (b) the amount of each such principal
payment by (2) the sum of all such principal payments.
"Bankruptcy Law" means United States Bankruptcy Code of 1978 as
codified and enacted as Title 11 of the United States Code and, as amended, or
any similar United States federal or state law, Canadian federal law or
provincial law or law of any other jurisdiction relating to bankruptcy,
insolvency, receivership, winding up, liquidation, reorganization or relief of
debtors or any amendment to, succession to or change in any such law.
"Board of Directors" means the board of directors of the Company or
any Guarantor, as the case may be, or any duly authorized committee of such
board.
"Board Resolution" means a copy of a resolution certified by the
Secretary or an Assistant Secretary of the Company or any Guarantor, as the case
may be, to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the
Trustee.
"Book-Entry Security" means any Global Securities bearing the legend
specified in Section 202 evidencing all or part of a series of Securities,
authenticated and delivered to the Depositary for such series or its nominee,
and registered in the name of such Depositary or nominee.
"Business Day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions or trust companies in
The City of
New York or the city in which the Corporate Trust Office of the
Trustee is located are authorized or obligated by law, regulation or executive
order to close.
"Capital Lease Obligation" of any Person means any obligation of such
Person and its Restricted Subsidiaries on a Consolidated basis under any capital
lease of (or other agreement conveying the right to use) real or personal
property which, in accordance with GAAP, is required to be recorded as a
capitalized lease obligation.
"Capital Stock" of any Person means any and all shares, interests,
participations, rights in or other equivalents (however designated) of such
Person's capital stock, other equity interests whether now outstanding or issued
after the date of this Indenture, partnership interests (whether general or
limited), limited liability company interests, any other interest or
participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person,
including any Preferred Stock, and any rights (other than debt securities
convertible into Capital Stock), warrants or options exchangeable for or
convertible into such Capital Stock.
5
"Cash Equivalents" means
(1) Canadian or U.S. dollars;
(2) marketable direct obligations issued by, or
unconditionally guaranteed by, the federal government of the United States
of America or Canada, respectively, or issued by any agency thereof and
backed by the full faith and credit of the federal government of the United
States of America or Canada, respectively, in each case maturing within one
year from the date of acquisition thereof;
(3) marketable direct obligations issued by any state of
the United States of America or any province of Canada or any political
subdivision of any such state or province, as the case may be, or any
public instrumentality thereof maturing within one year from the date of
acquisition thereof and, at the time of acquisition, having one of the two
highest ratings obtainable from either S&P or ▇▇▇▇▇'▇; PROVIDED that, in
the event that any such obligation is not rated by S&P or ▇▇▇▇▇'▇, such
obligation will have the highest rating from Dominion Bond Rating Service
Limited ("DBRS");
(4) commercial paper maturing no more than one year from
the date of acquisition issued by a corporation that is not an Affiliate of
the Company and is organized under the laws of the United States of America
or Canada or any state or province thereof, as the case may be, or the
District of Columbia, having a rating of at least R-2 (low) from DBRS or at
least A-2 from S&P or at least P-2 from ▇▇▇▇▇'▇;
(5) overnight deposits, certificates of deposit or
bankers' acceptances maturing within one year from the date of acquisition
thereof issued by any bank organized under the laws of the United States of
America or Canada or any state or province, as the case may be, thereof or
the District of Columbia or any U.S. or Canadian branch of a foreign bank
having at the date of acquisition thereof combined capital and surplus of
not less than US$250,000,000;
(6) repurchase obligations with a term of not more than
seven days for underlying securities of the types described in clause (2)
of this definition entered into with any bank meeting the qualifications
specified in clause (5) of this definition; and
(7) investments in money market funds which invest
substantially all their assets in securities of the types described in
clauses (1) through (6) of this definition.
"Change of Control" means the occurrence of any of the following
events:
(1) any "person" or "group" (as such terms are used in
Sections 13(d) and 14(d) of the Exchange Act), other than Permitted
Holders, is or becomes the "beneficial owner" (as defined in Rules 13d-3
and 13d-5 under the Exchange Act, except that a Person shall be deemed to
have beneficial ownership of all shares that such Person has the right to
acquire, whether such right is exercisable immediately or only after the
passage of time), directly or indirectly, of Voting Stock of the Company
constituting more than 50% of the total voting power of all outstanding
Voting Stock of the Company with respect to the election of directors;
(2) during any period of two consecutive years,
individuals who at the beginning of such period constituted the Board of
Directors of the Company (together with any
6
new directors whose election to such Board of Directors or whose nomination
for election by the stockholders of the Company was approved by a vote of
the Permitted Holders (if the Permitted Holders own a majority of the
voting power of the Voting Stock of the Company) or by a vote of not less
than the majority of the directors then still in office who were either
directors at the beginning of such period or whose election or nomination
for election was previously so approved), cease for any reason to
constitute a majority of such Board of Directors of the Company then in
office;
(3) the Company consolidates with or merges with or into
any Person or sells, assigns, conveys, transfers, leases or otherwise
disposes of all or substantially all of its and its Restricted
Subsidiaries' assets to any Person, or any Person consolidates with or
merges into or with the Company, in any such event pursuant to a
transaction in which the outstanding Voting Stock of the Company is
converted into or exchanged for cash, securities or other property, other
than any such transaction where
(A) the outstanding Voting Stock of the Company is changed
into or exchanged for (1) Voting Stock of the surviving corporation
which is not Redeemable Capital Stock or (2) cash, securities and
other property (other than Capital Stock of the surviving corporation)
in an amount which could be paid by the Company as a Restricted
Payment as described under Section 1009 (and such amount shall be
treated as a Restricted Payment subject to the provisions of this
Indenture described under Section 1009 hereof) and
(B) immediately after such transaction, no "person" or
"group," other than any Permitted Holder, is the beneficial owner (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a
person shall be deemed to have beneficial ownership of all securities
that such person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly
or indirectly, of Voting Stock constituting more than 50% of the total
voting power of the outstanding Voting Stock with respect to the
election of directors of the surviving corporation; or
(4) the Company is liquidated or dissolved or adopts a
plan of liquidation or dissolution other than in a transaction which
complies with the provisions described under Article Eight hereof.
For purposes of this definition, any transfer of an equity interest of an entity
that was formed for the purpose of acquiring Voting Stock of the Company will be
deemed to be a transfer of such portion of such Voting Stock as corresponds to
the portion of the equity of such entity that has been so transferred.
"Clearstream" means Clearstream Banking, societe anonyme (or any
successor securities clearing agency).
"Commission" means the Securities and Exchange Commission, as from
time to time constituted, created under the Exchange Act, or if at any time
after the execution of this Indenture such Commission is not existing and
performing the duties now assigned to it under the Securities Act, Exchange Act
and Trust Indenture Act then the body performing such duties at such time.
7
"Commodity Price Protection Agreement" means any forward contract,
commodity swap, commodity option or other similar financial agreement or
arrangement relating to, or the value which is dependent upon, fluctuations in
commodity prices.
"Common Stock" means the Company's common stock.
"Company" means The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation
organized under the laws of Quebec, until a successor Person shall have become
such pursuant to the applicable provisions of this Indenture, and thereafter
"Company" shall mean such successor Person.
"Company Request" or "Company Order" means a written request or order
signed in the name of the Company (i) by any one of its Chairman of the Board,
its President, its Chief Executive Officer, its Chief Financial Officer, any
Vice President (regardless of Vice Presidential designation), its Treasurer, an
Assistant Treasurer, its Secretary or an Assistant Secretary, or (ii) by an
authorized signatory (by virtue of a power of attorney or other similar
instrument) and delivered to the Trustee.
"Consolidated Fixed Charge Coverage Ratio" of any Person means, for
any period, the ratio of
(a) the sum of Consolidated Net Income (Loss), and in each case
to the extent deducted in computing Consolidated Net Income (Loss) for such
period, Consolidated Interest Expense, Consolidated Income Tax Expense and
Consolidated Non-cash Charges for such period, of such Person and its Restricted
Subsidiaries on a Consolidated basis, all determined in accordance with GAAP,
less all non-cash items increasing Consolidated Net Income (Loss) for such
period and less all cash payments during such period relating to non-cash
charges that were added back to Consolidated Net Income in determining the
Consolidated Fixed Charge Coverage Ratio in any prior period to
(b) the sum of Consolidated Interest Expense for such period and
cash and non-cash dividends paid on any Redeemable Capital Stock of the Company
or any Restricted Subsidiary or Preferred Stock of the Restricted Subsidiaries
during such period, in each case after giving PRO FORMA effect (as calculated in
accordance with Article 11 of Regulation S-X under the Securities Act or any
successor provision) to
(1) the incurrence of the Indebtedness giving rise to the
need to make such calculation and (if applicable) the application of the
net proceeds therefrom, including to refinance other Indebtedness, as if
such Indebtedness was incurred, and the application of such proceeds
occurred, on the first day of such period;
(2) the incurrence, repayment or retirement of any other
Indebtedness by the Company and its Restricted Subsidiaries since the first
day of such period as if such Indebtedness was incurred, repaid or retired
at the beginning of such period (except that, in making such computation,
the amount of Indebtedness under any revolving credit facility shall be
computed based upon the average daily balance of such Indebtedness during
such period);
(3) in the case of Acquired Indebtedness or any
acquisition occurring at the time of the incurrence of the Indebtedness
giving rise to the need to make such pro forma calculation, the related
acquisition, assuming such acquisition had been consummated on the first
day of such period; and
8
(4) any acquisition or disposition by the Company and its
Restricted Subsidiaries of any company or any business or any assets out of
the ordinary course of business, whether by merger, stock purchase or sale
or asset purchase or sale, or any related repayment of Indebtedness, in
each case since the first day of such period, assuming such acquisition,
disposition or repayment had been consummated on the first day of such
period;
PROVIDED that
(1) in making such computation, the Consolidated Interest
Expense attributable to interest on any Indebtedness computed on a PRO
FORMA basis and (A) bearing a floating interest rate shall be computed as
if the rate in effect on the date of computation had been the applicable
rate for the entire period and (B) which was not outstanding during the
period for which the computation is being made but which bears, at the
option of such Person, a fixed or floating rate of interest, shall be
computed by applying at the option of such Person either the fixed or
floating rate;
(2) in making such computation, the Consolidated Interest
Expense of such Person attributable to interest on any Indebtedness under a
revolving credit facility computed on a PRO FORMA basis shall be computed
based upon the average daily balance of such Indebtedness during the
applicable period;
(3) in making such computation, any cash charges taken in
connection with the integration of the Eckerd Acquisition and related
matters within 24 months of the closing of the Eckerd Acquisition in an
amount for all such cash charges that do not exceed $25 million in the
aggregate shall be excluded from the calculation of Consolidated Net Income
for the purposes of the calculation of the Consolidated Fixed Charge
Coverage Ratio; and
(4) net income (or loss) or interest expense attributable
to any Canadian drugstore franchisee in which the Company does not own or
control more than 50% of the outstanding voting power of the Voting Stock
thereof shall not be included in making such computation whether or not
required to be included by GAAP.
"Consolidated Income Tax Expense" of any Person means, for any period,
the provision for federal, state, provincial, territorial, local and foreign
income taxes of such Person and its Consolidated Restricted Subsidiaries for
such period as determined in accordance with GAAP.
"Consolidated Interest Expense" of any Person means, without
duplication, for any period, the sum of
(a) the interest expense of such Person and its Restricted
Subsidiaries for such period, on a Consolidated basis, including, without
limitation,
(1) amortization of original issue discount on
Indebtedness, if any,
(2) the net cash costs associated with Interest Rate
Agreements, Currency Hedging Agreements and Commodity Price Protection
Agreements (including amortization of discounts),
(3) the interest portion of any deferred payment
obligation,
9
(4) all commissions, discounts and other fees and charges
owed with respect to letters of credit and bankers acceptance financing and
(5) accrued interest, plus
(b) (1) the interest component of the Capital Lease
Obligations paid, accrued and/or scheduled to be paid or accrued by such Person
and its Restricted Subsidiaries during such period and
(2) all capitalized interest of such Person and its
Restricted Subsidiaries plus
(c) the interest expense under any Guaranteed Debt of such
Person and any Restricted Subsidiary to the extent not included under clause
(a)(4) above, whether or not paid by such Person or its Restricted Subsidiaries,
plus
(d) dividend requirements of such Person with respect to
Redeemable Capital Stock and of any Restricted Subsidiary with respect to
Preferred Stock (except, in either case, dividends payable solely in shares of
Qualified Capital Stock of such Person or such Restricted Subsidiary, as the
case may be).
"Consolidated Net Income (Loss)" of any Person means, for any period,
the Consolidated net income (or loss) of such Person and its Restricted
Subsidiaries for such period on a Consolidated basis as determined in accordance
with GAAP, adjusted, to the extent included in calculating such net income (or
loss), by excluding, without duplication,
(1) all extraordinary gains or losses net of taxes (less
all fees and expenses relating thereto),
(2) the portion of net income (or loss) of such Person and
its Restricted Subsidiaries on a Consolidated basis allocable to minority
interests in unconsolidated Persons or Unrestricted Subsidiaries to the
extent that cash dividends or distributions have not actually been received
by such Person or one of its Consolidated Restricted Subsidiaries,
(3) net income (or loss) of any Person combined with such
Person or any of its Restricted Subsidiaries on a "pooling of interests"
basis attributable to any period prior to the date of combination, and any
non-cash impact attributable to the application of the purchase method of
accounting in accordance with GAAP,
(4) any gain or loss, net of taxes, realized upon the
termination of any employee pension benefit plan,
(5) gains or losses, net of taxes (less all fees and
expenses relating thereto), in respect of dispositions of assets other than
in the ordinary course of business (including, without limitation,
dispositions pursuant to Sale and Leaseback Transactions),
(6) the net income of any Restricted Subsidiary to the
extent that the declaration of dividends or similar distributions by that
Restricted Subsidiary of that income is not at the time permitted, directly
or indirectly, by operation of the terms of its charter or any agreement,
instrument, judgment, decree, order, statute, rule or governmental
regulation applicable to that Restricted Subsidiary,
10
(7) any restoration to net income of any contingency
reserve, except to the extent provision for such reserve was made out of
income accrued at any time following the date of this Indenture,
(8) any net gain arising from the acquisition of any
securities or extinguishment, under GAAP, of any Indebtedness of such
Person,
(9) all deferred financing costs written off, and premiums
paid, in connection with any early extinguishment of Indebtedness,
(10) the cumulative effect of a change in accounting
principles,
(11) non-cash charges relating to employee benefit or other
management compensation plans of such Person or any of its Restricted
Subsidiaries or any non-cash compensation charge arising from any grant,
issuance or repricing of stock, stock options or other equity-based awards
or, in each case, any amendment, modification, substitution or change
thereof, of such Person or any of its Restricted Subsidiaries in each case,
to the extent that such non-cash charges are deducted in computing such
Consolidated Net Income (Loss) will be excluded,
(12) any gain or loss arising from foreign currency
fluctuations on foreign currency denominated Indebtedness, or
(13) net income (or loss) attributable to any Canadian
drugstore franchisee in which the Company does not own or control (directly
or indirectly) more than 50% of the outstanding voting power of the Voting
Stock thereof whether or not required to be included by GAAP.
"Consolidated Net Tangible Assets" of any Person means, at any time,
as of the last day of the most recent period for which financial statements are
available, for such Person and its Restricted Subsidiaries on a Consolidated
basis, an amount equal to (a) the Consolidated assets of the Person and its
Restricted Subsidiaries minus (b) all intangible assets of the Person and its
Restricted Subsidiaries at that time.
"Consolidated Non-cash Charges" of any Person means, for any period,
the aggregate depreciation, amortization and other non-cash charges of such
Person and its Restricted Subsidiaries on a Consolidated basis for such period,
as determined in accordance with GAAP (excluding any non-cash charge which
requires an accrual or reserve for cash charges for any future period).
"Consolidation" means, with respect to any Person, the consolidation
of the accounts of such Person and each of its subsidiaries if and to the extent
the accounts of such Person and each of its subsidiaries would normally be
consolidated, all in accordance with GAAP. The term "Consolidated" shall have a
similar meaning.
"Corporate Trust Office" means the office of the Trustee at which at
any particular time the corporate trust business for the purposes of this
Indenture shall be principally administered, which office at the date of
execution of this Indenture is located at ▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇ ▇▇▇▇, ▇▇▇
▇▇▇▇, ▇▇ ▇▇▇▇▇, Attention: Corporate Trust Administration, or such other address
as the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust
11
office of any successor Trustee (or such other address as such successor Trustee
may designate from time to time by notice to the Holders and the Company).
"Credit Agreement" means the Credit Agreement among the Company and
The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) USA, Inc., as borrowers thereto, certain lenders
party thereto, and certain agents party thereto, and related guarantee
documents, entered into in connection with the Acquisition, as such agreements,
in whole or in part, in one or more instances, may be amended, renewed,
extended, substituted, refinanced, restructured, replaced, supplemented or
otherwise modified from time to time (including, without limitation, any
successive (partial or total) renewals, extensions, substitutions, refinancings,
restructurings, replacements, supplementations or other modifications of the
foregoing), whether any such renewal, extension, substitution, replacement or
refinancing (i) occurs simultaneously with the termination or repayment of a
prior Credit Agreement or (ii) occurs on one or more separate occasions.
"Credit Facility" means one or more debt facilities (including,
without limitation, the Credit Agreement), commercial paper facilities or other
debt instruments, indentures or agreements, providing for revolving credit
loans, term loans, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed to borrow from
such lenders against such receivables), letters of credit or other debt
obligations, in each case, as amended, restated, modified, renewed, refunded,
restructured, supplemented, replaced or refinanced in whole or in part from time
to time, including without limitation any amendment increasing the amount of
Indebtedness incurred or available to be borrowed thereunder, extending the
maturity of any Indebtedness incurred thereunder or contemplated thereby or
deleting, adding or substituting one or more parties thereto (whether or not
such added or substituted parties are banks or other institutional lenders).
"Currency Hedging Agreements" means one or more of the following
agreements which shall be entered into by one or more financial institutions:
foreign exchange contracts, currency swap agreements or other similar agreements
or arrangements designed to protect against the fluctuations in currency values.
"DBRS" means Dominion Bond Rating Services Limited and any successor
thereto.
"Default" means any event which is, or after notice or passage of time
or both would be, an Event of Default.
"Depositary" means, with respect to the Securities issued in the form
of one or more Book-Entry Securities, The Depository Trust Company ("DTC"), its
nominees and successors, or another Person designated as Depositary by the
Company, which must be a clearing agency registered under the Exchange Act.
"Designated Non-cash Consideration" means the Fair Market Value of
non-cash consideration received by the Company or any of its Restricted
Subsidiaries in connection with an Asset Sale that is so designated pursuant to
an Officers' Certificate, setting forth the basis of the valuation. The
aggregate Fair Market Value of the Designated Non-cash Consideration held by the
Company or any Restricted Subsidiary at any given time, taken together with the
Fair Market Value at the time of receipt of all other Designated Non-cash
Consideration received and still held by the Company or any Restricted
Subsidiary at such time, may not exceed $25.0 million in aggregate, at the time
of the receipt of the Designated Non-cash Consideration (with the Fair Market
Value being measured at the time received and without giving effect to
subsequent changes in value).
12
"Disinterested Director" means, with respect to any transaction or
series of related transactions, a member of the Board of Directors of the
Company who does not have any material direct or indirect financial interest in
or with respect to such transaction or series of related transactions.
"Equity Offering" means the offer and sale of Common Stock (other than
Redeemable Capital Stock) of the Company with gross proceeds to the Company of
at least $25.0 million in cash in any one transaction.
"Euroclear" means Euroclear Bank S.A./N.V., as operator of the
Euroclear Clearance System (or any successor securities clearing agency).
"Event of Default" has the meaning specified in Section 501.
"Exchange Act" means the Securities Exchange Act of 1934, as amended,
or any successor statute, and the rules and regulations promulgated by the
Commission thereunder.
"Exchange Offer" has the meaning set forth in the Registration Rights
Agreement.
"Exchange Offer Registration Statement" has the meaning set forth in
the Registration Rights Agreement.
"Exchange Securities" has the meaning set forth in the first recital
of this Indenture.
"Fair Market Value" means, with respect to any asset or property, the
sale value that would be obtained in an arm's-length free market transaction
between an informed and willing seller under no compulsion to sell and an
informed and willing buyer under no compulsion to buy. Fair Market Value shall
be determined by the Board of Directors of the Company acting in good faith and
shall be evidenced by a Board Resolution.
"Fall Away Event" means such time as the Securities shall have
achieved Investment Grade Status (pursuant to ratings from each of S&P and
Moody's) and the Company shall have delivered to the Trustee an Officers'
Certificate certifying as to such status.
"Generally Accepted Accounting Principles" or "GAAP" means generally
accepted accounting principles in Canada, consistently applied, that are in
effect on the date of this Indenture.
"Global Securities" means the Rule 144A Global Securities, the
Regulation S Global Securities, the IAI Global Securities and the Unrestricted
Global Securities to be issued as Book-Entry Securities issued to the Depositary
in accordance with Section 306.
"Guarantee" means the guarantee by any Guarantor of the Company's
Indenture Obligations.
"Guaranteed Debt" of any Person means, without duplication, all
Indebtedness of any other Person referred to in the definition of Indebtedness
guaranteed directly or indirectly in any manner by such Person, or in effect
guaranteed directly or indirectly by such Person through an agreement
(1) to pay or purchase such Indebtedness or to advance or
supply funds for the payment or purchase of such Indebtedness,
13
(2) to purchase, sell or lease (as lessee or lessor)
property, or to purchase or sell services, primarily for the purpose of
enabling the debtor to make payment of such Indebtedness or to assure the
holder of such Indebtedness against loss,
(3) to supply funds to, or in any other manner invest in,
the debtor (including any agreement to pay for property or services without
requiring that such property be received or such services be rendered),
(4) to maintain working capital or equity capital of the
debtor, or otherwise to maintain the net worth, solvency or other financial
condition of the debtor or to cause such debtor to achieve certain levels
of financial performance or
(5) otherwise to assure a creditor against loss;
PROVIDED that the term "guarantee" shall not include endorsements for collection
or deposit, in either case in the ordinary course of business.
"Guarantor" means any Subsidiary which is a guarantor of the
Securities, including any Person that is required after the date of this
Indenture to execute a guarantee of the Securities pursuant to Section 1013
until a successor replaces such party pursuant to the applicable provisions of
this Indenture and, thereafter, shall mean such successor.
"Holder" means a Person in whose name a Security is registered in the
Security Register.
"IAI Global Securities" means one or more permanent Global Securities
in registered form representing the aggregate principal amount of Securities
sold to Institutional Accredited Investors.
"Indebtedness" means, with respect to any Person, without duplication,
(1) all indebtedness of such Person for borrowed money,
including under an asset-based, receivable or other borrowing facility, or
for the deferred purchase price of property or services, excluding any
trade payables and other current liabilities arising in the ordinary course
of business, but including, without limitation, all obligations, contingent
or otherwise, of such Person in connection with any letters of credit
issued under letter of credit facilities, acceptance facilities or other
similar facilities,
(2) all obligations of such Person evidenced by bonds,
notes, debentures or other similar instruments,
(3) all indebtedness created or arising under any
conditional sale or other title retention agreement with respect to
property acquired by such Person (even if the rights and remedies of the
seller or lender under such agreement in the event of default are limited
to repossession or sale of such property, in which case the amount of any
such Indebtedness shall be equal at any time to the value of such property
at such time), but excluding trade payables arising in the ordinary course
of business,
(4) all obligations under Interest Rate Agreements,
Currency Hedging Agreements or Commodity Price Protection Agreements of
such Person (the amount of any
14
such obligations to be equal at any time to the termination value of such
agreement or arrangement giving rise to such obligation that would be
payable by such Person at such time),
(5) all Capital Lease Obligations of such Person,
(6) all Indebtedness referred to in clauses (1) through
(5) above of other Persons and all dividends of other Persons, the payment
of which is secured by (or for which the holder of such Indebtedness has an
existing right, contingent or otherwise, to be secured by) any Lien, upon
or with respect to property (including, without limitation, accounts and
contract rights) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness (provided
that the amount of such Indebtedness of other Persons shall not exceed the
greater of the book value or the Fair Market Value of the property subject
to such Lien),
(7) all Guaranteed Debt of such Person,
(8) all Redeemable Capital Stock issued by such Person
valued at the greater of its voluntary or involuntary maximum fixed
repurchase price plus accrued and unpaid dividends,
(9) Attributable Indebtedness with respect to Sale and
Leaseback Transactions,
(10) Preferred Stock of any Restricted Subsidiary of the
Company or any Guarantor (unless held by the Company or any Restricted
Subsidiary) and
(11) any amendment, supplement, modification, deferral,
renewal, extension, refunding or refinancing of any liability of the types
referred to in clauses (1) through (10) above;
provided that the amount of any limited recourse Indebtedness shall be equal to
the principal amount of such limited recourse Indebtedness for, and to the
extent, which the subject Person provides credit support of any kind (including
any undertaking agreement or instrument that would constitute Indebtedness), is
directly or indirectly liable as a guarantor or otherwise is the lender.
For purposes of this Indenture, (x) the "maximum fixed repurchase
price" of any Redeemable Capital Stock which does not have a fixed repurchase
price shall be calculated in accordance with the terms of such Redeemable
Capital Stock as if such Redeemable Capital Stock were purchased on any date on
which Indebtedness shall be required to be determined pursuant to this
Indenture, and if such price is based upon, or measured by, the Fair Market
Value of such Redeemable Capital Stock, such Fair Market Value to be determined
in good faith by the board of directors of the issuer of such Redeemable Capital
Stock and (y) the value of Preferred Stock shall be equal to the liquidation
preference.
"Indenture" means this instrument as originally executed (including
all
exhibits and schedules hereto) and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof.
"Indenture Obligations" means the obligations of the Company and any
other obligor under this Indenture or under the Securities, including any
Guarantor, to pay principal of, premium, if
15
any, and interest when due and payable, and all other amounts (including any
Additional Amounts) due or to become due under or in connection with this
Indenture or the Securities and the performance of all other obligations to the
Trustee and the Holders under this Indenture and the Securities, according to
the respective terms thereof.
"Initial Purchasers" means ▇▇▇▇▇▇▇ Lynch, Pierce, ▇▇▇▇▇▇ & ▇▇▇▇▇
Incorporated, Deutsche Bank Securities Inc. and NBF Securities (USA) Corp. (or
the initial purchasers with respect to Additional Securities issued after the
date hereof).
"Initial Securities" has the meaning set forth in the first recital in
this Indenture.
"Initial Senior Subordinated Securities" means the 8 1/2% Senior
Subordinated Notes due 2014, and the related Senior Subordinated Guarantees.
"Institutional Accredited Investor" means an institution that is an
"accredited investor" as defined in Rule 501(a)(1), (2), (3) or (7) under the
Securities Act.
"Interest Payment Date" when used with respect to any Security, means
each semiannual interest payment date on February 1 and August 1 of each year.
"Interest Rate Agreements" means one or more of the following
agreements which shall be entered into by one or more financial institutions:
interest rate protection agreements (including, without limitation, interest
rate swaps, caps, floors, collars and similar agreements) and/or other types of
interest rate hedging agreements from time to time.
"Investment" means, with respect to any Person, directly or
indirectly, any advance, loan (including guarantees), or other extension of
credit or capital contribution to (by means of any transfer of cash or other
property to others or any payment for property or services for the account or
use of others), or any purchase, acquisition or ownership by such Person of any
Capital Stock, bonds, notes, debentures or other securities issued or owned by
any other Person and all other items that would be classified as investments on
a balance sheet prepared in accordance with GAAP. "Investment" shall exclude
direct or indirect advances to customers or suppliers in the ordinary course of
business that are, in conformity with GAAP, recorded as accounts receivable,
prepaid expenses or deposits on the Company's or any Restricted Subsidiary's
balance sheet, endorsements for collection or deposit arising in the ordinary
course of business and extensions of trade credit on commercially reasonable
terms in accordance with normal trade practices. If the Company or any
Restricted Subsidiary of the Company sells or otherwise disposes of any Capital
Stock of any direct or indirect Subsidiary of the Company such that, after
giving effect to any such sale or disposition, such Person is no longer a
Subsidiary of the Company (other than the sale of all of the outstanding Capital
Stock of such Subsidiary), the Company will be deemed to have made an Investment
on the date of such sale or disposition equal to the Fair Market Value of the
Company's Investments in such Subsidiary that were not sold or disposed of in an
amount determined as provided in Section 1009.
"Investment Grade Status" means ratings of BBB- or higher by S&P (or
its equivalent rating under any successor rating categories of S&P), and Baa3 or
higher by Moody's (or its equivalent rating under any successor rating
categories of Moody's).
"Issue Date" means the original issue date of the Securities under
this Indenture.
16
"Lien" means any mortgage or deed of trust, charge, pledge, lien
(statutory or otherwise), privilege, security interest, assignment, deposit,
arrangement, easement, hypothecation, claim, preference, priority or other
encumbrance upon or with respect to any property of any kind (including any
conditional sale, capital lease or other title retention agreement, any leases
in the nature thereof, and any agreement to give any security interest), real or
personal, movable or immovable, now owned or hereafter acquired. A Person will
be deemed to own subject to a Lien any property which it has acquired or holds
subject to the interest of a vendor or lessor under any conditional sale
agreement, Capital Lease Obligation or other title retention agreement.
"Maturity" means, when used with respect to the Securities, the date
on which the principal of the Securities becomes due and payable as therein
provided or as provided in this Indenture, whether at Stated Maturity, the Offer
Date or the Redemption Date and whether by declaration of acceleration, Offer in
respect of Excess Proceeds, Change of Control Offer in respect of a Change of
Control, call for redemption or otherwise.
"Moody's" means ▇▇▇▇▇'▇ Investors Service, Inc. and its successors.
"Net Cash Proceeds" means
(a) with respect to any Asset Sale by any Person, the proceeds
thereof (without duplication in respect of all Asset Sales) in the form of cash
or Cash Equivalents including payments in respect of deferred payment
obligations when received in the form of, or stock or other assets when disposed
of for, cash or Cash Equivalents (except to the extent that such obligations are
financed or sold with recourse to the Company or any Restricted Subsidiary) net
of
(1) brokerage commissions and other reasonable fees and
expenses (including fees and expenses of counsel and investment bankers)
related to such Asset Sale,
(2) provisions for all taxes payable as a result of such
Asset Sale,
(3) payments made to retire Indebtedness where payment of
such Indebtedness is secured by the assets or properties the subject of
such Asset Sale,
(4) amounts required to be paid to any Person (other than
the Company or any Restricted Subsidiary) owning a beneficial interest in
the assets subject to the Asset Sale and
(5) appropriate amounts to be provided by the Company or
any Restricted Subsidiary, as the case may be, as a reserve, in accordance
with GAAP, against any liabilities associated with such Asset Sale and
retained by the Company or any Restricted Subsidiary, as the case may be,
after such Asset Sale, including, without limitation, pension and other
post-employment benefit liabilities, liabilities related to environmental
matters and liabilities under any indemnification obligations associated
with such Asset Sale, all as reflected in an Officers' Certificate
delivered to the Trustee and
(b) with respect to any issuance or sale of Capital Stock or
options, warrants or rights to purchase Capital Stock, or debt securities or
Capital Stock that have been converted into or exchanged for Capital Stock as
referred to under Section 1009, the proceeds of such issuance or sale in the
form of cash or Cash Equivalents including payments in respect of deferred
payment obligations when received in the form of, or stock or other assets when
disposed of for, cash or Cash Equivalents (except to the
17
extent that such obligations are financed or sold with recourse to the Company
or any Restricted Subsidiary), net of attorney's fees, accountant's fees and
brokerage, consultation, underwriting and other fees and expenses actually
incurred in connection with such issuance or sale and net of taxes paid or
payable as a result thereof.
"Offering Memorandum" means the offering memorandum, dated July 20,
2004, related to the issuance of the Securities.
"Officers' Certificate" means a certificate signed by the Chairman of
the Board, the President, the Chief Executive Officer, the Chief Financial
Officer or a Vice President (regardless of Vice Presidential designation), and
by the Treasurer, an Assistant Treasurer, the Secretary or an Assistant
Secretary, of the Company or any Guarantor, as the case may be, and in form and
substance reasonably satisfactory to, and delivered to, the Trustee.
"Opinion of Counsel" means a written opinion of counsel, who may be an
employee or counsel for the Company or any Guarantor, and who shall be
reasonably acceptable to the Trustee, and which opinion shall be in form and
substance reasonably satisfactory to the Trustee, including customary
assumptions and exceptions thereto.
"Opinion of Independent Counsel" means a written opinion of counsel
which is issued by a Person who is not an employee, director or consultant
(other than non-employee legal counsel) of the Company or any Guarantor and who
shall be reasonably acceptable to the Trustee, and which opinion shall be in
form and substance reasonably satisfactory to the Trustee, including customary
assumptions and exceptions thereto.
"Outstanding" when used with respect to Securities means, as of the
date of determination, all Securities theretofore authenticated and delivered
under this Indenture, except:
(a) Securities theretofore canceled by the Trustee or delivered
to the Trustee for cancellation;
(b) Securities, or portions thereof, for whose payment or
redemption money in the necessary amount has been theretofore deposited with the
Trustee or any Paying Agent (other than the Company or any Affiliate thereof) in
trust or set aside and segregated in trust by the Company or any Affiliate
thereof (if the Company or any Affiliate thereof shall act as its own Paying
Agent) for the Holders of such Securities; PROVIDED that if such Securities are
to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor reasonably satisfactory to the Trustee has been
made;
(c) Securities, to the extent provided in Sections 402 and 403,
with respect to which the Company has effected defeasance or covenant defeasance
as provided in Article Four; and
(d) Securities in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Trustee and the Company proof reasonably satisfactory to each
of them that such Securities are held by a BONA FIDE purchaser in whose hands
the Securities are valid obligations of the Company;
PROVIDED, HOWEVER, that in determining whether the Holders of the requisite
principal amount of Outstanding Securities have given any request, demand,
authorization, direction, notice, consent or
18
waiver hereunder, Securities owned by the Company, any Guarantor, or any other
obligor upon the Securities or any Affiliate of the Company, any Guarantor or
such other obligor shall be disregarded and deemed not to be Outstanding, except
that, in determining whether the Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent or waiver, only
Securities which a Responsible Officer of the Trustee actually knows to be so
owned shall be so disregarded. Securities so owned which have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the
reasonable satisfaction of the Trustee the pledgee's right so to act with
respect to such Securities and that the pledgee is not the Company, any
Guarantor or any other obligor upon the Securities or any Affiliate of the
Company, any Guarantor or such other obligor.
"Pari Passu Indebtedness" means (a) any Indebtedness of the Company
that is equal in right of payment to the Securities and (b) with respect to any
Guarantee, Indebtedness which ranks equal in right of payment to such Guarantee.
"Paying Agent" means any Person (including the Company) authorized by
the Company to pay the principal of, premium, if any, or interest on, any
Securities on behalf of the Company.
"Permitted Business" means the lines of business conducted by the
Company and its Restricted Subsidiaries on the date of this Indenture and
business reasonably related, complementary or ancillary thereto, including
reasonably related extensions or expansions thereof.
"Permitted Holders" means (i) ▇▇. ▇▇▇▇ ▇▇▇▇▇, (ii) the spouse,
children or other lineal descendants (whether adoptive or biological) of ▇▇.
▇▇▇▇ ▇▇▇▇▇, (iii) any revocable or irrevocable intervivos or testamentary trust
or the probate estate of any Person described in clause (i) or (ii) above, so
long as one or more of the foregoing individuals named in clauses (i) and (ii)
is the principal beneficiary of such trust or probate estate, and (iv) any
Person all of the Capital Stock of which is held, directly or indirectly, by or
for the benefit of the Persons or trusts or probate estates specified in clauses
(i), (ii) or (iii) above.
"Permitted Investment" means:
(1) Investments in any Restricted Subsidiary or any Person
which, as a result of such Investment, (a) becomes a Restricted Subsidiary
or (b) is merged or consolidated with or into, or transfers or conveys
substantially all of its assets to, or is liquidated into, the Company or
any Restricted Subsidiary;
(2) Indebtedness of the Company or a Restricted Subsidiary
described under clauses (4), (5), (6), (7) and (12) of the definition of
"Permitted Indebtedness" under paragraph (b) of Section 1008;
(3) Investments in any of the Securities;
(4) Investments in Cash Equivalents;
(5) Investments acquired by the Company or any Restricted
Subsidiary in connection with an asset sale permitted under Section 1012 to
the extent such Investments are non-cash proceeds as permitted under
Section 1012;
(6) Investments in existence on the date of this
Indenture;
19
(7) Investments acquired in exchange for the issuance of
Capital Stock (other than Redeemable Capital Stock of the Company or a
Restricted Subsidiary or Preferred Stock of a Restricted Subsidiary) or
acquired with the Net Cash Proceeds received by the Company after the date
of this Indenture from the issuance and sale of Capital Stock (other than
Redeemable Capital Stock of the Company or a Restricted Subsidiary or
Preferred Stock of a Restricted Subsidiary); PROVIDED that such Net Cash
Proceeds are used to make such Investment within 10 days of the receipt
thereof and the amount of all such Net Cash Proceeds will be excluded from
clause (3)(B) of the first paragraph of Section 1009(a);
(8) Investments in prepaid expenses, negotiable
instruments held for collection and lease, utility and worker's
compensation, performance and other similar deposits provided to third
parties in the ordinary course of business;
(9) loans or advances to employees of the Company in the
ordinary course of business for bona fide business purposes of the Company
and its Restricted Subsidiaries (including travel, entertainment and moving
expenses) or the proceeds of which are used to purchase Capital Stock of
the Company in the aggregate amount outstanding at any one time of $10.0
million;
(10) any Investments received in good faith in settlement
or compromise of obligations of trade creditors or customers that were
incurred in the ordinary course of business, including pursuant to any plan
of reorganization or similar arrangement upon the bankruptcy or insolvency
of any trade creditor or customer;
(11) any Investment by the Company or any Restricted
Subsidiary in a Securitization Entity or any Investment by a Securitization
Entity in any other Person, in each case in connection with a Permitted
Securitization Transaction; PROVIDED, HOWEVER, that the foregoing
Investment is in the form of a Purchase Money Note or an equity interest;
(12) any Investment in Permitted Joint Ventures in an
amount not to exceed $100.0 million in the aggregate for all such Permitted
Joint Ventures;
(13) Investments in any Securitization Facility to the
extent reasonably necessary to consummate any Permitted Securitization
Transactions; and
(14) other Investments in the aggregate amount outstanding
at any one time of up to $50.0 million.
In connection with any assets or property contributed or transferred to any
Person as an Investment, such property and assets shall be equal to the Fair
Market Value (as determined by the Company's Board of Directors) at the time of
Investment.
"Permitted Joint Venture" means any joint venture (which may be in the
form of a limited liability company, partnership, corporation or other entity or
form) in which the Company or any of its Restricted Subsidiaries, directly or
indirectly, owns or controls 50% or less of the total voting power of the shares
of Capital Stock of such entity entitled to vote; PROVIDED, HOWEVER, that any
joint venture in which the Company, directly or indirectly, owns 50% of the
total voting power of the Capital Stock of such entity entitled to vote shall
only be a Permitted Joint Venture if engaged in a Permitted Business or engaged
primarily in the business of prescription benefit management; PROVIDED,
20
FURTHER, that any joint venture in which the Company, directly or indirectly,
owns less than 50% of the total voting power of the Capital Stock of such entity
entitled to vote shall only be a Permitted Joint Venture if engaged primarily in
the business of prescription benefit management.
"Permitted Lien" means
(a) Liens securing Indebtedness permitted to be incurred under
paragraphs (b)(1) or (11) under Section 1008;
(b) any Lien created or existing as of the date of this Indenture
on Indebtedness existing or created on the date of this Indenture;
(c) any Lien arising by reason of
(1) any judgment, decree or order of any court, so long as
such Lien is adequately bonded and any appropriate legal proceedings which
may have been duly initiated for the review of such judgment, decree or
order shall not have been finally terminated or the period within which
such proceedings may be initiated shall not have expired;
(2) taxes, assessments or government charges not yet
delinquent or which are being contested in good faith;
(3) security for payment of workers' compensation or other
insurance;
(4) good faith deposits in connection with tenders, leases
or other contracts (other than contracts for the payment of money);
(5) zoning restrictions, easements, licenses,
reservations, title defects, rights of others for rights of way, utilities,
sewers, electric lines, telephone or telegraph lines, and other similar
purposes, provisions, covenants, conditions, waivers, restrictions on the
use of property or minor irregularities of title (and with respect to
leasehold interests, mortgages, obligations, Liens and other encumbrances
incurred, created, assumed or permitted to exist and arising by, through or
under a landlord or owner of the leased property, with or without consent
of the lessee), none of which materially impairs the use of any parcel of
property material to the operation of the business of the Company or any
Restricted Subsidiary or the value of such property for the purpose of such
business;
(6) deposits to secure public or statutory obligations, or
in lieu of surety or appeal bonds; or
(7) operation of law in favor of mechanics, carriers,
warehousemen, landlords, materialmen, laborers, employees or suppliers,
incurred in the ordinary course of business for sums which are not yet
delinquent or are being contested in good faith by negotiations or by
appropriate proceedings which suspend the collection thereof;
(d) any Lien securing Acquired Indebtedness created prior to (and
not created in connection with, or in contemplation of) the incurrence of such
Indebtedness by the Company or any Restricted Subsidiary;
21
(e) any Lien to secure the performance bids, trade contracts,
leases (including, without limitation, statutory and common law landlord's
liens), statutory obligations, surety and appeal bonds, letters of credit and
other obligations of a like nature and incurred in the ordinary course of
business of the Company or any Restricted Subsidiary;
(f) any Lien securing Indebtedness permitted to be incurred under
Interest Rate Agreements, Currency Hedging Agreements, Commodity Price
Protection Agreements or otherwise incurred to hedge interest rate risk;
(g) any Lien securing Capital Lease Obligations or Purchase Money
Obligations incurred in accordance with this Indenture (including clause (8) of
the definition of Permitted Indebtedness) and which are incurred or assumed
solely in connection with the acquisition, development or construction of real
or personal, moveable or immovable property within 90 days of such incurrence or
assumption; PROVIDED that such Liens only extend to such acquired, developed or
constructed property, such Liens secure Indebtedness in an amount not in excess
of the original purchase price or the original cost of any such assets or
repair, addition or improvement thereto, and the incurrence of such Indebtedness
is permitted by Section 1008;
(h) Liens on assets transferred to a Securitization Entity or an
asset of a Securitization Entity, in either case, incurred in connection with a
Permitted Securitization Transaction;
(i) leases, licenses, subleases and sublicenses of assets
(including, without limitation, real property and intellectual property rights),
which do not materially interfere with the ordinary course of conduct of the
business of the Company or any Restricted Subsidiary;
(j) (1) Liens securing Indebtedness or other obligations of a
Restricted Subsidiary owing to the Company or another Restricted Subsidiary or
(2) claim, restriction or encumbrance with respect to equity ownership interests
in a Restricted Subsidiary granted in favor of the Company or any other
Restricted Subsidiary;
(k) any extension, renewal, refinancing or replacement, in whole
or in part, of any Lien described in the foregoing clauses (a) through (j) so
long as no additional collateral is granted as security thereby; and
(l) other Liens (including extensions, renewals, refinancings and
replacements) securing Indebtedness permitted by the terms of this Indenture to
be incurred, so long as the aggregate principal amount of Indebtedness secured
thereby does not exceed 10% of Consolidated Net Tangible Assets; PROVIDED,
HOWEVER, that the amount of Indebtedness that may be secured by Liens incurred
under this clause (l) shall be reduced by the excess, if any, of the amount of
(x) the amount of Indebtedness incurred under clause (1)(b) of paragraph (b)
under Section 1008 over (y) $1,700 million.
"Permitted Securitization Transaction" means any transaction or series
of transactions that qualify for off-balance sheet treatment in accordance with
SFAS 140 or other applicable accounting pronouncements, pursuant to which the
Company or any of its Restricted Subsidiaries may sell, contribute, convey or
otherwise transfer to (i) a Securitization Entity (in the case of a transfer by
the Company or any of its Restricted Subsidiaries) and (ii) any other Person (in
the case of a transfer by a Securitization Entity), or may grant a security
interest in, any accounts receivable or chattel paper (whether now existing or
arising in the future) of the Company or any of its Restricted Subsidiaries,
22
and any assets directly related thereto, including, without limitation, all
collateral securing such accounts receivable, and other assets (including
contract rights and all guarantees or other obligations in respect of such
accounts receivable or chattel paper, proceeds of such accounts receivable or
chattel paper and other assets which are customarily transferred or in respect
of which security interests are customarily granted in connection with asset
securitization transactions involving accounts receivable or chattel paper).
"Person" means any individual, corporation, limited liability company,
partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.
"Predecessor Security" of any particular Security means every previous
Security evidencing all or a portion of the same debt as that evidenced by such
particular Security; and, for the purposes of this definition, any Security
authenticated and delivered under Section 308 in exchange for a mutilated
Security or in lieu of a lost, destroyed or stolen Security shall be deemed to
evidence the same debt as the mutilated, lost, destroyed or stolen Security.
"Preferred Stock" means, with respect to any Person, any Capital Stock
of any class or classes (however designated) which is preferred as to the
payment of dividends or distributions, or as to the distribution of assets upon
any voluntary or involuntary liquidation or dissolution of such Person, over the
Capital Stock of any other class in such Person.
"Purchase Money Note" means a promissory note of a Securitization
Entity evidencing a line of credit, which may be irrevocable, from the Company
or any Restricted Subsidiary in connection with a Permitted Securitization
Transaction to a Securitization Entity, which note is repayable from cash
available to such Securitization Entity, other than amounts required to be
established as reserves pursuant to contractual arrangements with entities that
are not Affiliates entered into as part of such Permitted Securitization
Transaction, amounts paid to investors in respect of interest, principal and
other amounts owing to such investors and amounts paid in connection with the
purchase of newly generated accounts receivable.
"Purchase Money Obligation" means any Indebtedness secured by a Lien
on assets related to the business of the Company and any additions and
accessions thereto, which are purchased or constructed by the Company at any
time after the Securities are issued; PROVIDED that
(1) the security agreement or conditional sales or other
title retention contract pursuant to which the Lien on such assets is
created (collectively a "Purchase Money Security Agreement") shall be
entered into within 180 days after the purchase or substantial completion
of the construction of such assets and shall at all times be confined
solely to the assets so purchased or acquired, any additions and accessions
thereto and any proceeds therefrom,
(2) at no time shall the aggregate principal amount of the
outstanding Indebtedness secured thereby be increased, except in connection
with the purchase of additions and accessions thereto and except in respect
of fees and other obligations in respect of such Indebtedness and
(3) (A) the aggregate outstanding principal amount of
Indebtedness secured thereby (determined on a per asset basis in the case
of any additions and accessions) shall not at
23
the time such Purchase Money Security Agreement is entered into exceed 100%
of the purchase price to the Company of the assets subject thereto or (B)
the Indebtedness secured thereby shall be with recourse solely to the
assets so purchased or acquired, any additions and accessions thereto and
any proceeds therefrom.
"Qualified Capital Stock" of any Person means any and all Capital
Stock of such Person other than Redeemable Capital Stock.
"Redeemable Capital Stock" means any Capital Stock that, either by its
terms or by the terms of any security into which it is convertible or
exchangeable or otherwise, is or upon the happening of an event or passage of
time would be, required to be redeemed prior to the final Stated Maturity of the
principal of the Securities or is redeemable at the option of the holder thereof
at any time prior to such final Stated Maturity (other than upon a change of
control of or sale of assets by the Company in circumstances where the Holders
of the Securities would have similar rights), or is convertible into or
exchangeable for debt securities at any time prior to such final Stated Maturity
at the option of the holder thereof.
"Redemption Date" when used with respect to any Security to be
redeemed pursuant to any provision in this Indenture means the date fixed for
such redemption by or pursuant to this Indenture.
"Redemption Price" when used with respect to any Security to be
redeemed pursuant to any provision in this Indenture means the price at which it
is to be redeemed pursuant to this Indenture.
"Registration Rights Agreement" means (1) the Registration Rights
Agreement, dated as of July 30, 2004, among the Company, the Guarantors and the
Initial Purchasers and (2) with respect to any Additional Securities issued
subsequent to July 30, 2004, the registration rights agreement entered into for
the benefit of the holders of such Additional Securities, if any.
"Registration Statement" has the meaning set forth in the Registration
Rights Agreement.
"Regular Record Date" for the interest payable on any Interest Payment
Date means the January 15 or July 15 (whether or not a Business Day) next
preceding such Interest Payment Date.
"Regulation S" means Regulation S under the Securities Act, as amended
from time to time.
"Regulation S Global Securities" means one or more permanent Global
Securities in registered form representing the aggregate principal amount of
Securities sold in reliance on Regulation S under the Securities Act.
"Responsible Officer" shall mean, when used with respect to the
Trustee, any officer within the corporate trust department of the Trustee,
including any vice president, assistant vice president, assistant treasurer,
trust officer or any other officer of the Trustee who customarily performs
functions similar to those performed by the persons who at the time shall be
such officers, respectively, or to whom any corporate trust matter is referred
because of such person's knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this
Indenture.
24
"Restricted Subsidiary" means any Subsidiary of the Company that has
not been designated by the Board of Directors of the Company by a Board
Resolution delivered to the Trustee as an Unrestricted Subsidiary pursuant to
and in compliance with Section 1017 hereof.
"Rule 144A" means Rule 144A under the Securities Act, as amended from
time to time.
"Rule 144A Global Securities" means one or more permanent Global
Securities in registered form representing the aggregate principal amount of
Securities sold in reliance on Rule 144A under the Securities Act.
"Sale and Leaseback Transaction" means an arrangement whereby property
of the Company or any Restricted Subsidiary is transferred or otherwise disposed
of to another Person more than 270 days after the acquisition thereof or the
completion of construction or commencement of operation thereof, and the Company
or a Restricted Subsidiary leases such property from such Person. The stated
maturity of such arrangement will be deemed to be the date of the last payment
of rent or any other amount due under such arrangement prior to the first date
on which such arrangement may be terminated by the lessee without payment of a
penalty. Sale and Leaseback Transactions between or among the Company and its
Restricted Subsidiaries shall not be deemed a "Sale and Leaseback Transaction"
hereunder.
"S&P" means Standard & Poor's Ratings Services, a division of The
▇▇▇▇▇▇-▇▇▇▇ Companies, Inc., and any successor thereto.
"Securities" shall have the meaning set forth in the Recitals. The
Initial Securities and the Additional Securities shall be treated as a single
class for all purposes under this Indenture.
"Securities Act" means the Securities Act of 1933, as amended, or any
successor statute, and the rules and regulations promulgated by the Commission
thereunder.
"Securitization Entity" means a Wholly Owned Restricted Subsidiary of
the Company that engages in no activities other than in connection with the
financing of accounts receivable, chattel paper and related assets and that is
designated by the Board of Directors of the Company (as provided below) as a
Securitization Entity (a) no portion of the Indebtedness or any other
obligations (contingent or otherwise) of which (i) is guaranteed by the Company
or any other Restricted Subsidiary (excluding guarantees of obligations (other
than the principal of, and interest on, Indebtedness) pursuant to Standard
Securitization Undertakings), (ii) is recourse to or obligates the Company or
any other Restricted Subsidiary in any way other than pursuant to Standard
Securitization Undertakings or (iii) subjects any property or assets of the
Company or any other Restricted Subsidiary of the Company, directly or
indirectly, contingently or otherwise, to the satisfaction thereof, other than
pursuant to Standard Securitization Undertakings, (b) with which neither the
Company nor any other Restricted Subsidiary has any material contract,
agreement, arrangement or understanding other than on terms no less favorable to
the Company or such Restricted Subsidiary than those that might be obtained at
the time from Persons that are not Affiliates of the Company, other than fees
payable in the ordinary course of business in connection with servicing
receivables, chattel paper and related assets of such entity, and (c) to which
neither the Company nor any Restricted Subsidiary (other than such entity) has
any obligation to maintain or preserve such entity's financial condition or
cause such entity to achieve certain levels of operating results. Any such
designation by the Board of Directors of the Company shall be evidenced to the
Trustee by filing with the Trustee a certified copy of the Board
25
Resolution giving effect to such designation and an Officers' Certificate
certifying that such designation complied with the foregoing conditions.
"Senior Subordinated Exchange Securities" means an issue of 8 1/2%
Senior Subordinated Notes due 2014 issued in an Exchange Offer.
"Senior Subordinated Notes Indenture" means the indenture, dated as of
July 30, 2004, among the Company, the Senior Subordinated Securities Guarantors
and the trustee for the Senior Subordinated Notes relating to the 8 1/2% Senior
Subordinated Notes of the Company due 2014.
"Senior Subordinated Securities" means the 8 1/2% senior subordinated
notes due 2014. The term "Senior Subordinated Notes" shall have a similar
meaning.
"Senior Subordinated Securities Guarantee" means the guarantee by any
Senior Subordinated Securities Guarantor of the Company's obligations under the
Senior Subordinated Notes Indenture.
"Senior Subordinated Securities Guarantor" means the guarantee by any
guarantor of the Company's Senior Subordinated Notes Indenture.
"Shelf Registration Statement" has the meaning set forth in the
Registration Rights Agreement.
"Significant Subsidiary" means (1) any Restricted Subsidiary that
would be a "significant subsidiary" as defined in Regulation S-X promulgated
pursuant to the Securities Act as such Regulation is in effect on the Issue Date
and (2) any Restricted Subsidiary that, when aggregated with all other
Restricted Subsidiaries that are not otherwise Significant Subsidiaries and as
to which any event described in clause (7) or (8) under Section 501 has occurred
and is continuing, would constitute a Significant Subsidiary under clause (1) of
this definition.
"Special Record Date" for the payment of any Defaulted Interest means
a date fixed by the Company pursuant to Section 309.
"Standard Securitization Undertakings" means representations,
warranties, guarantees, covenants and indemnities entered into by the Company or
any Restricted Subsidiary that are reasonably customary in securitization
transactions relating to accounts receivable, chattel paper and related assets
in connection with a Permitted Securitization Transaction.
"Stated Maturity" means, when used with respect to any Indebtedness or
any installment of interest thereon, the dates specified in such Indebtedness as
the fixed date on which the principal of such Indebtedness or such installment
of interest, as the case may be, is due and payable.
"Stock Purchase Agreement" means the agreement dated April 4, 2004, as
amended, among the Company, ▇.▇. Penney Company, Inc., a Delaware corporation,
and TDI Consolidated Corporation, a Delaware corporation, entered into in
connection with the Acquisition.
"Subordinated Indebtedness" means Indebtedness of the Company or a
Guarantor subordinated in right of payment to the Securities or a Guarantee, as
the case may be.
26
"Subsidiary" of a Person means
(1) any corporation more than 50% of the outstanding
voting power of the Voting Stock of which is owned or controlled, directly
or indirectly, by such Person or by one or more other Subsidiaries of such
Person, or by such Person and one or more other Subsidiaries thereof, or
(2) any limited partnership of which such Person or any
Subsidiary of such Person is a general partner, or
(3) any other Person in which such Person, or one or more
other Subsidiaries of such Person, or such Person and one or more other
Subsidiaries, directly or indirectly, has more than 50% of the outstanding
partnership or similar interests or has the power, by contract or
otherwise, to direct or cause the direction of the policies, management and
affairs thereof.
"Successor Security" of any particular Security means every Security
issued after, and evidencing all or a portion of the same debt as that evidenced
by, such particular Security; and, for the purposes of this definition, any
Security authenticated and delivered under Section 308 in exchange for or in
lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to
evidence the same debt as the mutilated, destroyed, lost or stolen Security.
"Taxing Authority" means any government or any political subdivision,
state, province or territory of or in a Taxing Jurisdiction or any authority or
agency therein or thereof having power to tax.
"Taxing Jurisdiction" means Canada or any other jurisdiction in which
the Company or any Guarantor or any successor of the Company or any Guarantor is
organized, resident for tax purposes, engaged in business or generally subject
to tax on a net income basis, or from or through which any payment under the
Securities or any Guarantee is made, or any political subdivision, state,
province or territory thereof or therein.
"Transactions" has the meaning as set forth in the offering memorandum
dated July 20, 2004 relating to the Securities.
"Trust Indenture Act" means the Trust Indenture Act of 1939, as
amended, or any successor statute.
"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 Obligations" means securities that are (a) direct
obligations of the United States of America for the timely payment of which its
full faith and credit is pledged or (b) obligations of a Person controlled or
supervised by and acting as an agency or instrumentality of the United States of
America the timely payment of which is unconditionally guaranteed as a full
faith and credit obligation of the United States of America, which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depositary receipt issued by a bank (as defined in Section
3(a)(2) of the Securities Act), as custodian with respect to any such U.S.
Government Obligations or a specific payment of principal of or interest on any
such U.S. Government Obligations held by such custodian for the account of the
holder of such depositary receipt; provided
27
that (except as required by law) such custodian is not authorized to make any
deductions from the amount payable to the holder of such depositary receipt from
any amount received by the custodian in respect of the U.S. Government
Obligations or the specific payment of principal of or interest on the U.S.
Government Obligations evidenced by such depositary receipt.
"Unrestricted Global Securities" means one or more permanent Global
Securities in registered form representing the aggregate principal amount of
Exchange Securities exchanged for Initial Securities pursuant to the Exchange
Offer.
"Unrestricted Subsidiary" means any Subsidiary of the Company (other
than a Guarantor) designated as such pursuant to and in compliance with Section
1017 hereof.
"Unrestricted Subsidiary Indebtedness" of any Unrestricted Subsidiary
means Indebtedness of such Unrestricted Subsidiary
(1) as to which neither the Company nor any Restricted
Subsidiary is directly or indirectly liable (by virtue of the Company or
any such Restricted Subsidiary being the primary obligor on, guarantor of,
or otherwise liable in any respect to, such Indebtedness), except
Guaranteed Debt of the Company or any Restricted Subsidiary to any
Affiliate, in which case (unless the incurrence of such Guaranteed Debt
resulted in a Restricted Payment at the time of incurrence) the Company
shall be deemed to have made a Restricted Payment equal to the principal
amount of any such Indebtedness to the extent guaranteed at the time such
Affiliate is designated an Unrestricted Subsidiary and
(2) which, upon the occurrence of a default with respect
thereto, does not result in, or permit any holder of any Indebtedness of
the Company or any Restricted Subsidiary to declare, a default on such
Indebtedness of the Company or any Restricted Subsidiary or cause the
payment thereof to be accelerated or payable prior to its Stated Maturity;
PROVIDED that notwithstanding the foregoing any Unrestricted Subsidiary may
guarantee the Securities.
"Voting Stock" of a Person means Capital Stock of such Person of the
class or classes pursuant to which the holders thereof have the general voting
power under ordinary circumstances to elect at least a majority of the board of
directors, managers or trustees of such Person (irrespective of whether or not
at the time Capital Stock of any other class or classes shall have or might have
voting power by reason of the happening of any contingency).
"Wholly Owned Restricted Subsidiary" means a Restricted Subsidiary all
the Capital Stock of which (other than (a) directors' qualifying shares and (b)
Capital Stock or other ownership interests issued to a Person other than the
Company or a Wholly Owned Restricted Subsidiary of the Company in connection
with a Permitted Securitization Transaction for the purpose of establishing
independence and not in order to provide substantive economic or controlling
voting interests to such Person) is owned by the Company or another Wholly Owned
Restricted Subsidiary.
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SECTION 10.2 OTHER DEFINITIONS.
Term Defined in Section
---- ------------------
"Act" 105
"Additional Amounts" 1101
"Agent Members" 306
"Change of Control Offer" 1014
"Change of Control Purchase Date" 1014
"Change of Control Purchase Notice" 1014
"Change of Control Purchase Price" 1014
"control" 101 ("Affiliate")
"CUSIP" 310
"covenant defeasance" 403
"DBRS" 101 ("Cash Equivalents")
"Defaulted Interest" 309
"defeasance" 402
"Defeasance Redemption Date" 404
"Defeased Securities" 401
"Designation" 1017
"Designation ▇▇▇▇▇▇" ▇▇▇▇
"Documentary Taxes" 1101
"DTC" 101 ("Depositary")
"Excess Proceeds" 1012
"Excluded Holder" 1101
"incur" 1008
"maximum fixed repurchase price" 101 ("Indebtedness")
"Offer" 1012
"Offer Date" 1012
"Offered Price" 1012
"Offshore Transaction" 202
"Pari Passu Debt ▇▇▇▇▇▇" ▇▇▇▇
"Pari Passu Offer" 1012
"Permitted Indebtedness" 1008
"Permitted Payment" 1009
"Private Placement Legend" 202
"Purchase Money Security Agreement" 101 ("Purchase Money Obligation")
"Qualified Institutional Buyer" 202
"Restricted Payments" 1009
"Restricted Period" 201
"restricted security" 307
"Revocation" 1017
"Security ▇▇▇▇▇▇" ▇▇▇▇
"Security Register" 305
"Security Registrar" 305
"Special Payment Date" 309
"Surviving Entity" 801
"Surviving Guarantor Entity" 801
29
"Taxes" 1101
"transfer" 101 ("Asset Sale")
"U.S. Person" 202
SECTION 103. COMPLIANCE CERTIFICATES AND OPINIONS.
Upon any application or request by the Company to the Trustee to take
any action under any provision of this Indenture, the Company and any Guarantor
(if applicable) and any other obligor on the Securities (if applicable) shall,
in each case at the request of the Trustee, furnish to the Trustee an Officers'
Certificate in a form and substance reasonably acceptable to the Trustee stating
that all conditions precedent, if any, provided for in this Indenture (including
any covenant compliance with which constitutes a condition precedent) relating
to the proposed action have been complied with, and an Opinion of Counsel in a
form and substance reasonably acceptable to the Trustee stating that in the
opinion of such counsel all such conditions precedent, if any, have been
complied with.
Every Officers' Certificate or Opinion of Counsel with respect to
compliance with a condition or covenant provided for in this Indenture (other
than pursuant to Section 1020) shall include:
(a) a statement that each individual signing such certificate or
individual or firm signing such opinion has read and understands such covenant
or condition and the definitions herein relating thereto;
(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 each such individual or
such firm, he or it has made such examination or investigation as is necessary
to enable him or it 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, in the opinion of each such
individual or such firm, such condition or covenant has been complied with.
SECTION 104. FORM OF DOCUMENTS DELIVERED TO TRUSTEE.
In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one
such Person may certify or give an opinion with respect to some matters and one
or more other such Persons as to other matters, and any such Person may certify
or give an opinion as to such matters in one or several documents.
Any certificate of an officer of the Company, any Guarantor or other
obligor on the Securities may be based, insofar as it relates to legal matters,
upon a certificate or opinion of, or representations by, counsel, unless such
officer knows that the certificate or opinion or representations with respect to
the matters upon which his certificate or opinion is based are erroneous. Any
such certificate or opinion may be based, insofar as it relates to factual
matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company, any Guarantor or other obligor on the Securities
stating that the information with respect to such factual matters is in the
possession of the Company, any Guarantor or other obligor on the Securities,
unless such officer or counsel knows that
30
the certificate or opinion or representations with respect to such matters are
erroneous. Opinions of Counsel required to be delivered to the Trustee may have
qualifications and assumptions customary for opinions of the type required.
Any certificate or opinion of an officer of the Company, any Guarantor
or other obligor on the Securities may be based, insofar as it relates to
accounting matters, upon a certificate or opinion of, or representations by, an
accountant or firm of accountants in the employ of the Company, unless such
officer knows that the certificate or opinion or representations with respect to
the accounting matters upon which his certificate or opinion may be based are
erroneous. Any certificate or opinion of any independent firm of public
accountants filed with the Trustee shall contain a statement that such firm is
independent with respect to the Company.
Where any Person is required to make, give or execute two or more
applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and
form one instrument.
SECTION 105. ACTS OF HOLDERS.
(a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of
substantially similar tenor signed by such Holders in person or by an agent duly
appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered
to the Trustee and, where it is hereby expressly required, to the Company. Such
instrument or instruments (and the action embodied therein and evidenced
thereby) are herein sometimes referred to as the "Act" of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of
a writing appointing any such agent shall be sufficient for any purpose of this
Indenture and conclusive in favor of the Trustee and the Company, if made in the
manner provided in this Section 105.
(b) The ownership of Securities shall be proved by the Security
Register.
(c) Any request, demand, authorization, direction, notice,
consent, waiver or other Act by the Holder of any Security shall bind every
future Holder of the same Security or the Holder of every Security issued upon
the transfer thereof or in exchange therefor or in lieu thereof, in respect of
anything done, suffered or omitted to be done by the Trustee, any Paying Agent
or the Company, any Guarantor or any other obligor of the Securities in reliance
thereon, whether or not notation of such action is made upon such Security.
(d) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness of such
execution or by a certificate of a notary public or other officer authorized by
law to take acknowledgments of deeds, certifying that the individual signing
such instrument or writing acknowledged to him the execution thereof. Where such
execution is by a signer acting in a capacity other than his individual
capacity, such certificate or affidavit shall also constitute sufficient proof
of his authority. The fact and date of the execution of any such instrument or
writing, or the authority of the Person executing the same, may also be proved
in any other manner which the Trustee deems sufficient.
(e) If the Company shall solicit from the Holders any request,
demand, authorization, direction, notice, consent, waiver or other Act, the
Company may, at its option, by or
31
pursuant to a Board Resolution, fix in advance a record date for the
determination of such Holders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other Act, but the Company
shall have no obligation to do so. Notwithstanding Trust Indenture Act Section
316(c), any such record date shall be the record date specified in or pursuant
to such Board Resolution, which shall be a date not more than 30 days prior to
the first solicitation of Holders generally in connection therewith and no later
than the date such first solicitation is completed.
If such a record date is fixed, such request, demand, authorization,
direction, notice, consent, waiver or other Act may be given before or after
such record date, but only the Holders of record at the close of business on
such record date shall be deemed to be Holders for purposes of determining
whether Holders of the requisite proportion of Securities then Outstanding have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other Act, and for this purpose the
Securities then Outstanding shall be computed as of such record date; PROVIDED
that no such request, demand, authorization, direction, notice, consent, waiver
or other Act by the Holders on such record date shall be deemed effective unless
it shall become effective pursuant to the provisions of this Indenture not later
than six months after such record date.
(f) For purposes of this Indenture, any action by the Holders
which may be taken in writing may be taken by electronic means or as otherwise
reasonably acceptable to the Trustee.
SECTION 106. NOTICES, ETC., TO THE TRUSTEE, THE COMPANY AND ANY GUARANTOR.
Any request, demand, authorization, direction, notice, consent, waiver
or Act of Holders or other document provided or permitted by this Indenture to
be made upon, given or furnished to, or filed with:
(a) the Trustee by any Holder or by the Company or any Guarantor
or any other obligor on the Securities shall be sufficient for every purpose
(except as otherwise herein expressly provided) hereunder if in writing and
mailed, first-class postage prepaid, or delivered by recognized overnight
courier, to or with the Trustee at its Corporate Trust Office, Attention:
Corporate Trust Administration, or at any other address previously furnished in
writing to the Holders or the Company, any Guarantor or any other obligor on the
Securities by the Trustee or via facsimile transmission to ▇▇▇-▇▇▇-▇▇▇▇; or
(b) the Company or any Guarantor by the Trustee or any Holder
shall be sufficient for every purpose (except as provided in Section 501(c))
hereunder if in writing and mailed, first-class postage prepaid, or delivered by
recognized overnight courier, to the Company or such Guarantor addressed to it
c/o The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇ ▇▇▇
▇▇▇, Attention: ▇▇▇▇▇▇▇▇ ▇▇▇▇, Director Legal Affairs, or via facsimile
transmission to Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇ or at any other address previously
furnished in writing to the Trustee by the Company or such Guarantor with a copy
to ▇▇▇▇▇▇▇▇▇, Will & ▇▇▇▇▇ LLP, ▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇, ▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇▇▇,
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇-▇▇▇▇, Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇.
No notice to the Trustee shall be deemed effective until it is
actually received by the Trustee.
32
SECTION 107. NOTICE TO HOLDERS; WAIVER.
Where this Indenture provides for notice to Holders of any event, such
notice shall be sufficiently given (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, or delivered by
recognized overnight courier, to each Holder affected by such event, at its
address as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such
notice. In any case where notice to Holders is given by mail, neither the
failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Any notice when mailed to a Holder in the aforesaid manner shall
be conclusively deemed to have been received by such Holder whether or not
actually received by such Holder. Where this Indenture provides for notice in
any manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.
In case by reason of the suspension of regular mail service or by
reason of any other cause, it shall be impracticable to mail notice of any event
as required by any provision of this Indenture, then any method of giving such
notice as shall be reasonably satisfactory to the Trustee shall be deemed to be
a sufficient giving of such notice.
SECTION 108. CONFLICT WITH TRUST INDENTURE ACT.
If any provision hereof limits, qualifies or conflicts with any
provision of the Trust Indenture Act or another provision which is required or
deemed to be included in this Indenture by any of the provisions of the Trust
Indenture Act, the provision or requirement of the Trust Indenture Act shall
control. If any provision of this Indenture modifies or excludes any provision
of the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or to be
excluded, as the case may be.
SECTION 109. EFFECT OF HEADINGS AND TABLE OF CONTENTS.
The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof.
SECTION 110. SUCCESSORS AND ASSIGNS.
All covenants and agreements in this Indenture by the Company and the
Guarantors shall bind their respective successors and assigns, whether so
expressed or not.
SECTION 111. SEPARABILITY CLAUSE.
In case any provision in this Indenture or in the Securities or
Guarantees 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.
33
SECTION 112. BENEFITS OF INDENTURE.
Nothing in this Indenture or in the Securities or Guarantees, express
or implied, shall give to any Person (other than the parties hereto and their
successors hereunder, any Paying Agent and the Holders) any benefit or any legal
or equitable right, remedy or claim under this Indenture.
SECTION 113. GOVERNING LAW.
THIS INDENTURE, THE SECURITIES AND THE GUARANTEES SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK, WITHOUT
GIVING EFFECT TO THE CONFLICTS OF LAW PRINCIPLES THEREOF.
SECTION 114. WAIVER OF JURY TRIAL.
EACH OF THE COMPANY, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.
SECTION 115. FORCE MAJEURE.
In no event shall the Trustee be responsible or liable for any failure
or delay in the performance of its obligations hereunder arising out of or
caused by, directly or indirectly, forces beyond its control, including, without
limitation strikes, work stoppages, accidents, acts of war or terrorism, civil
or military disturbances, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software and hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in the banking
industry to resume performance as soon as practicable under the circumstances.
SECTION 116. LEGAL HOLIDAYS.
In any case where any Interest Payment Date, Redemption Date, Maturity
or Stated Maturity of any Security shall not be a Business Day, then
(notwithstanding any other provision of this Indenture or of the Securities)
payment of interest or principal or premium, if any, need not be made on such
date, but may be made on the next succeeding Business Day with the same force
and effect as if made on such Interest Payment Date or Redemption Date, or at
the Maturity or Stated Maturity and no interest shall accrue with respect to
such payment for the period from and after such Interest Payment Date,
Redemption Date, Maturity or Stated Maturity, as the case may be, to the next
succeeding Business Day.
SECTION 117. INDEPENDENCE OF COVENANTS.
All covenants and agreements in this Indenture shall be given
independent effect so that if a particular action or condition is not permitted
by any such covenants, the fact that it would be permitted by an exception to,
or be otherwise within the limitations of, another covenant shall not avoid the
occurrence of a Default or an Event of Default if such action is taken or
condition exists.
34
SECTION 118. SCHEDULES AND
EXHIBITS.
All schedules and
exhibits attached hereto are by this reference made
a part hereof with the same effect as if herein set forth in full.
SECTION 119. COUNTERPARTS.
This Indenture may be executed in any number of counterparts, each of
which shall be deemed an original; but all such counterparts shall together
constitute but one and the same instrument.
SECTION 120. NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES
OR STOCKHOLDERS.
No director, officer, employee, member or stockholder of the Company
or any Guarantor, as such, will have any liability for any obligations of the
Company or the Guarantors under the Securities, this Indenture, the Guarantees,
or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder of Securities by accepting a Security waives and
releases the Company and each Guarantor from all such liability. The waiver and
release are part of the consideration for issuance of the Securities.
ARTICLE TWO
SECURITY FORMS
SECTION 201. FORMS GENERALLY.
The Securities, the Guarantees and the Trustee's certificate of
authentication thereon shall be in substantially the forms set forth in this
Article Two, with such appropriate insertions, omissions, substitutions and
other variations as are required or permitted hereby and may have such letters,
numbers or other marks of identification and such legends or endorsements placed
thereon as may be required to comply with the rules of any securities exchange,
any organizational document or governing instrument or applicable law or as may,
consistently herewith, be determined by the officers executing such Securities
and Guarantees, as evidenced by their execution of the Securities and
Guarantees. Any portion of the text of any Security may be set forth on the
reverse thereof, with an appropriate reference thereto on the face of the
Security.
The definitive Securities shall be printed, lithographed or engraved
or produced by any combination of these methods or may be produced in any other
manner permitted by the rules of any securities exchange on which the Securities
may be listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.
Securities offered and sold in reliance on Rule 144A shall be issued
initially in the form of one or more Rule 144A Global Securities, substantially
in the form set forth in Section 202, deposited upon issuance with the Trustee,
as custodian for the Depositary, registered in the name of the Depositary or its
nominee, in each case for credit to an account of a direct or indirect
participant of the Depositary, duly executed by the Company and authenticated by
the Trustee as hereinafter provided. The aggregate principal amount of the Rule
144A Global Securities may from time to time be increased or decreased by
adjustments made on the records of the Trustee, as custodian for the Depositary
or its nominee, as hereinafter provided.
35
Securities offered and sold in reliance on Regulation S shall be
issued in the form of one or more Regulation S Global Securities, substantially
in the form set forth in Section 202, deposited upon issuance with the Trustee,
as custodian for the Depositary, registered in the name of the Depositary or its
nominee, in each case for credit by the Depositary to an account of a direct or
indirect participant of the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided; PROVIDED, HOWEVER, that
upon such deposit through and including the 40th day after the later of the
commencement of the offering of such Securities and the original issue date of
such Securities (such period through and including such 40th day, the
"Restricted Period"), all such Securities shall be credited to or through
accounts maintained at the Depositary by or on behalf of Euroclear or
Clearstream unless exchanged for interests in the Rule 144A Global Securities in
accordance with the transfer and certification requirements described below. The
aggregate principal amount of the Regulation S Global Securities may from time
to time be increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary or its nominee, as hereinafter
provided.
Exchange Securities exchanged for Initial Securities shall be issued
initially in the form of one or more Unrestricted Global Securities,
substantially in the form set forth in Section 202, deposited upon issuance with
the Trustee, as custodian for the Depositary, registered in the name of the
Depositary or its nominee, in each case for credit to an account of a direct or
indirect participant of the Depositary, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate principal
amount of the Exchange Global Securities may from time to time be increased or
decreased by adjustments made on the records of the Trustee, as custodian for
the Depositary or its nominee, as hereinafter provided.
With respect to any Additional Securities issued subsequent to the
date of this Indenture, (1) all references in Section 202 herein and elsewhere
in this Indenture to a Registration Rights Agreement shall be to the
registration rights agreement entered into with respect to such Additional
Securities, (2) any references in Section 202 and elsewhere in this Indenture to
the Exchange Offer, Exchange Offer Registration Statement, Shelf Registration
Statement, Initial Purchasers, Registration Default, and any other term related
thereto shall be to such terms as they are defined in such registration rights
agreement entered into with respect to such Additional Securities, (3) all time
periods described in the Securities with respect to the registration of such
Additional Securities shall be as provided in such registration rights agreement
entered into with respect to such Additional Securities and (4) all provisions
of this Indenture shall be construed and interpreted to permit the issuance of
such Additional Securities and to allow such Additional Securities to become
fungible and interchangeable with the Initial Securities originally issued under
this Indenture.
SECTION 202. FORM OF FACE OF SECURITY.
(a) The form of the face of any Initial Securities authenticated
and delivered hereunder shall be substantially as follows:
Unless and until (i) an Initial Security is sold under an effective
Registration Statement or (ii) an Initial Security is exchanged for an Exchange
Security in connection with an effective Registration Statement, in each case
pursuant to the Registration Rights Agreement, and except to the extent
otherwise provided in Section 307(b) hereof, then such Initial Security shall
bear the legend set forth below (the "Private Placement Legend") on the face
thereof:
36
THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED,
TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN
THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION
IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION AS SET FORTH
BELOW.
BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT
(A) IT IS A "QUALIFIED INSTITUTIONAL BUYER" (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT ("RULE 144A")), (B) IT IS
NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN
OFFSHORE TRANSACTION, OR (C) IT IS AN "INSTITUTIONAL
ACCREDITED INVESTOR" (AS DEFINED IN RULE 501(A)(1),(2), (3)
OR (7) OF REGULATION D UNDER THE SECURITIES ACT) AND (2)
AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY
PRIOR TO THE DATE WHICH IS TWO YEARS AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE
COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF
THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) ONLY (A)
TO THE COMPANY OR ANY SUBSIDIARY OF THE COMPANY, (B)
PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED
EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE
SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE ▇▇▇▇
▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, TO A PERSON IT REASONABLY BELIEVES
IS A QUALIFIED INSTITUTIONAL BUYER THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL
BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING
MADE IN RELIANCE ON RULE 144A, (D) OUTSIDE THE UNITED STATES
PURSUANT TO OFFERS AND SALES TO NON-U.S. PERSONS IN AN
OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S
UNDER THE SECURITIES ACT, (E) TO AN INSTITUTIONAL ACCREDITED
INVESTOR IN A TRANSACTION EXEMPT FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT OR (F) PURSUANT TO
ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE COMPANY'S
AND THE TRUSTEE'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER (I) PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE
THE
37
DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR
OTHER INFORMATION SATISFACTORY TO EACH OF THEM, AND (II) IN
EACH OF THE FOREGOING CASES, TO REQUIRE THAT A CERTIFICATE
OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS
SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE
TRUSTEE. AS USED HEREIN, THE TERMS "UNITED STATES,"
"OFFSHORE TRANSACTION," AND "U.S. PERSON" HAVE THE
RESPECTIVE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE
SECURITIES ACT.
[LEGEND IF SECURITY IS A GLOBAL SECURITY]
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE
NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY OR A
SUCCESSOR DEPOSITARY. TRANSFERS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL
SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE
WITH THE RESTRICTIONS SET FORTH IN SECTIONS 306 AND 307 OF
THIS INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK
CORPORATION ("DTC"), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT AND ANY SUCH
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO.
OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN.
[LEGEND IF SECURITY IS A REGULATION S GLOBAL SECURITY]
THIS SECURITY IS A REGULATION S GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE REFERRED TO HEREIN. INTERESTS IN
THIS REGULATION S GLOBAL SECURITY MAY NOT BE OFFERED OR SOLD
TO A U.S.
38
PERSON OR FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON PRIOR
TO THE EXPIRATION OF THE RESTRICTED PERIOD (AS DEFINED IN
THIS INDENTURE), AND NO TRANSFER OR EXCHANGE OF AN INTEREST
IN THIS REGULATION S GLOBAL SECURITY MAY BE MADE FOR AN
INTEREST IN A RULE 144A GLOBAL SECURITY UNTIL AFTER THE
TERMINATION OF THE RESTRICTED PERIOD OR AS OTHERWISE
PERMITTED BY LAW AND CONTEMPLATED BY THIS INDENTURE.
39
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
----------
7 5/8% SENIOR NOTE DUE 2012
CUSIP NO. ______________
No. __________ $__________
The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized under the
laws of Quebec (herein called the "Company," which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal sum of
____________ United States dollars on August 1, 2012, at the office or agency of
the Company referred to below, and to pay interest thereon from July 30, 2004,
or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semiannually on February 1 and August 1 in each year,
commencing February 1, 2005 at the rate of 7 5/8% per annum, in United States
dollars, until the principal hereof is paid or duly provided for. Interest shall
be computed on the basis of a 360-day year comprised of twelve 30-day months.
The Holder of this Initial Security is entitled to the benefits of a
Registration Rights Agreement among the Company, the Guarantors and the Initial
Purchasers, pursuant to which, subject to the terms and conditions thereof, the
Company and the Guarantors are obligated to consummate the Exchange Offer
pursuant to which the Holder of this Security (and the related Guarantees) shall
have the right to exchange this Security (and the related Guarantees) for 7 5/8%
Senior Notes due 2012, and related guarantees (herein called the "Exchange
Securities") in like principal amount as provided therein. In addition, the
Company and the Guarantors have agreed to register the Securities for resale
under the Securities Act through a Shelf Registration Statement under certain
circumstances. The Initial Securities and the Exchange Securities are together
(including related Guarantees) referred to as the "Securities." The Initial
Securities rank PARI PASSU in right of payment with the Exchange Securities. The
interest rate on the Initial Securities may increase pursuant to the terms set
forth in the Registration Rights Agreement.
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or any Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be January 15 or July 15 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date. Any such interest not so
punctually paid, or duly provided for, and interest on such defaulted interest
at the interest rate borne by the Initial Securities, to the extent lawful,
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and may either be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the
Company, notice whereof shall be given to Holders of Securities not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by the Indenture not inconsistent with the requirements of such exchange, all as
more fully provided in the Indenture.
40
Payment of the principal of, premium, if any, and interest on, this
Security, and exchange or transfer of the Security, will be made at the office
or agency of the Company in The City of
New York maintained for that purpose
(which initially will be the Corporate Trust Office of the Trustee), or at such
other office or agency as may be maintained for such purpose, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; PROVIDED, HOWEVER, that payment
of interest may be made at the option of the Company by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Security Register.
Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
This Security is entitled to the benefits of the Guarantees by the
Guarantors of the punctual payment when due and performance of the Indenture
Obligations made in favor of the Trustee for the benefit of the Holders.
Reference is made to Article Thirteen of the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations under the
Guarantees of the Guarantors.
Unless the certificate of authentication hereon has been duly executed
by the Trustee referred to on the reverse hereof or by the authenticating agent
appointed as provided in the Indenture by manual signature of an authorized
signatory, this Security shall not be entitled to any benefit under the
Indenture, or be valid or obligatory for any purpose.
41
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by the manual or facsimile signature of its authorized officers.
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
By:
----------------------------------
Name:
Title:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the 7 5/8% Senior Notes due 2012 referred to in the
within-mentioned Indenture.
THE BANK OF
NEW YORK, as Trustee
By:
----------------------------------
Authorized Signatory
Dated:
42
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to have this Security purchased by the Company pursuant to
Section 1012 or Section 1014, as applicable, of the Indenture, check the Box:
/ /.
If you wish to have a portion of this Security purchased by the
Company pursuant to Section 1012 or Section 1014, as applicable, of the
Indenture, state the amount (in original principal amount):
$ ____________.
Date: Your Signature:
-------------------- -------------------
(Sign exactly as your name appears on the other side of this Security)
Signature Guarantee:
----------------------------------
[Signature must be guaranteed by an eligible Guarantor Institution (banks,
stockbrokers, savings and loan associations and credit unions) with membership
in an approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]
43
[FORM OF TRANSFER NOTICE]
FOR VALUE RECEIVED the undersigned registered holder hereby sell(s),
assign(s) and transfer(s) unto
Insert Taxpayer Identification No.
-----------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(Please print or typewrite name and address including zip code of assignee)
-------------------------------------------------------------------------
the within Security and all rights thereunder, hereby irrevocably constituting
and appointing
-------------------------------------------------------------------------
attorney to transfer such Security on the books of the Company with full power
of substitution in the premises.
In connection with any transfer of this Security occurring prior to
the date which is the earlier of the date of an effective Registration Statement
or two years after the issuance of the relevant Securities, the undersigned
confirms that it has not utilized any general solicitation or general
advertising in connection with this Security that:
[Check One]
/ / (a) this Security is being transferred in compliance with the
exemption from registration under the Securities Act of 1933 provided
by Rule 144A thereunder.
or
/ / (b) this Security is being transferred other than in accordance with
(a) above and documents are being furnished which comply with the
conditions of transfer set forth in this Security and the Indenture.
If none of the foregoing boxes is checked, the Trustee or other Security
Registrar shall not be obligated to register this Security in the name of any
Person other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in Section 307 of, and elsewhere
in, the Indenture shall have been satisfied.
Date:
--------------------
-----------------------------------------------
NOTICE: The signature to this assignment
must correspond with the name as written upon
the face of the within-mentioned instrument in every
particular, without alteration or any change
whatsoever.
44
Signature Guarantee:
---------------------------
[Signature must be guaranteed by an eligible Guarantor Institution (banks,
stockbrokers, savings and loan associations and credit unions) with membership
in an approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]
TO BE COMPLETED BY PURCHASER IF (a) ABOVE IS CHECKED.
The undersigned represents and warrants that it is purchasing this
Security for its own account or an account with respect to which it exercises
sole investment discretion and that it and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A under the Securities Act of
1933 and is aware that the sale to it is being made in reliance on Rule 144A and
acknowledges that it has received such information regarding the Company as the
undersigned has requested pursuant to Rule 144A or has determined not to request
such information and that it is aware that the transferor is relying upon the
undersigned's foregoing representations in order to claim the exemption from
registration provided by Rule 144A.
Dated:
--------------------
--------------------------------------------------
NOTICE: To be executed by an authorized signatory
45
The form of the face of any Exchange Securities authenticated and
delivered hereunder shall be substantially as follows:
[LEGEND IF SECURITY IS A GLOBAL SECURITY]
THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY
OR A NOMINEE OF A DEPOSITARY OR A SUCCESSOR DEPOSITARY. TRANSFERS OF
THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT
IN PART, TO NOMINEES OF CEDE & CO. OR TO A SUCCESSOR THEREOF OR SUCH
SUCCESSOR'S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY
SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS
SET FORTH IN SECTIONS 306 AND 307 OF THE INDENTURE.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION ("DTC"), TO
THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR
PAYMENT AND ANY SUCH CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
46
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
----------
7 5/8% SENIOR NOTE DUE 2012
CUSIP NO. ______________
No. __________ $_____________________
The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized under the
laws of Quebec (herein called the "Company," which term includes any successor
Person under the Indenture hereinafter referred to), for value received, hereby
promises to pay to Cede & Co. or registered assigns, the principal sum of
____________ United States dollars on August 1, 2012, at the office or agency of
the Company referred to below, and to pay interest thereon from July 30, 2004,
or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, semiannually on February 1 and August 1 in each year,
commencing February 1, 2005 at the rate of 7 5/8% per annum, in United States
dollars, until the principal hereof is paid or duly provided for; PROVIDED that
to the extent interest has not been paid or duly provided for with respect to
the Initial Security exchanged for this Exchange Security, interest on this
Exchange Security shall accrue from the most recent Interest Payment Date to
which interest on the Initial Security which was exchanged for this Exchange
Security has been paid or duly provided for. Interest shall be computed on the
basis of a 360-day year comprised of twelve 30-day months.
This Exchange Security was issued pursuant to the Exchange Offer
pursuant to which the 7 5/8% Senior Notes due 2012, and related Guarantees
(herein called the "Initial Securities") in like principal amount were exchanged
for the Exchange Securities and related Guarantees. The Exchange Securities rank
PARI PASSU in right of payment with the Initial Securities.
For any period in which the Initial Security exchanged for this
Exchange Security was outstanding, additional interest may be due and owing on
the Initial Security in accordance with the terms of the Registration Rights
Agreement.
The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or any Predecessor Securities) is registered
at the close of business on the Regular Record Date for such interest, which
shall be January 15 or July 15 (whether or not a Business Day), as the case may
be, next preceding such Interest Payment Date. Any such interest not so
punctually paid, or duly provided for, and interest on such defaulted interest
at the interest rate borne by the Exchange Securities, to the extent lawful,
shall forthwith cease to be payable to the Holder on such Regular Record Date,
and may either be paid to the Person in whose name this Security (or any
Predecessor Securities) is registered at the close of business on a Special
Record Date for the payment of such defaulted interest to be fixed by the
Company, notice whereof shall be given to Holders of Securities not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required
by the Indenture not inconsistent with the requirements of such exchange, all as
more fully provided in the Indenture.
47
Payment of the principal of, premium, if any, and interest on, this
Security, and exchange or transfer of the Security, will be made at the office
or agency of the Company in The City of
New York maintained for such purpose
(which initially will be the Corporate Trust Office of the Trustee), or at such
other office or agency as may be maintained for such purpose, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; PROVIDED, HOWEVER, that payment
of interest may be made at the option of the Company by check mailed to the
address of the Person entitled thereto as such address shall appear on the
Security Register.
Reference is hereby made to the further provisions of this Security
set forth on the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
This Security is entitled to the benefits of the Guarantees by the
Guarantors of the punctual payment when due and performance of the Indenture
Obligations made in favor of the Trustee for the benefit of the Holders.
Reference is made to Article Thirteen of the Indenture for a statement of the
respective rights, limitations of rights, duties and obligations under the
Guarantees of the Guarantors.
Unless the certificate of authentication hereon has been duly executed
by the Trustee referred to on the reverse hereof or by the authenticating agent
appointed as provided in the Indenture by manual signature of an authorized
signatory, this Security shall not be entitled to any benefit under the
Indenture, or be valid or obligatory for any purpose.
48
IN WITNESS WHEREOF, the Company has caused this instrument to be duly
executed by the manual or facsimile signature of its authorized officers.
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
By:
---------------------------
Name:
Title:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the 7 5/8% Senior Notes due 2012 referred to in the
within-mentioned Indenture.
THE BANK OF NEW YORK, as Trustee
By:
------------------------------
Authorized Signatory
Dated:
49
OPTION OF HOLDER TO ELECT PURCHASE
If you wish to have this Security purchased by the Company pursuant to
Section 1012 or Section 1014, as applicable, of the Indenture, check the Box: [
].
If you wish to have a portion of this Security purchased by the
Company pursuant to Section 1012 or Section 1014 as applicable, of the
Indenture, state the amount (in original principal amount):
$____________.
Date: Your Signature:
-------------------- ----------------------------
(Sign exactly as your name appears on the other side of this Security)
Signature Guarantee:
-------------------------------
[Signature must be guaranteed by an eligible Guarantor Institution (banks,
stockbrokers, savings and loan associations and credit unions) with membership
in an approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17Ad-15]
50
FORM OF TRANSFEREE CERTIFICATE
I OR WE ASSIGN AND TRANSFER THIS SECURITY TO:
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
____________________________________________________________________________
____________________________________________________________________________
Print or type name, address and zip code of assignee and irrevocably
appoint_____________________________________________________________________
[Agent], to transfer this Security on the books of the Company. The Agent may
substitute another to act for him.
Dated Signed
------------------------- ------------------------
(Sign exactly as name appears on the other side of this Security)
[Signature must be guaranteed by an eligible Guarantor Institution (banks,
stockbrokers, savings and loan associations and credit unions) with membership
in an approved guarantee medallion program pursuant to Securities and Exchange
Commission Rule 17 Ad-15]
51
SECTION 203. FORM OF REVERSE OF SECURITIES.
(a) The form of the reverse of the Initial Securities shall be
substantially as follows:
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
7 5/8% Senior Note due 2012
This Security is one of a duly authorized issue of Securities of the
Company designated as its 7 5/8% Senior Notes due 2012 (herein called the
"Initial Securities"), issued under and subject to the terms of an indenture
(herein called the "Indenture") dated as of July 30, 2004, among the Company,
the Guarantors and The Bank of New York, as trustee (herein called the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Guarantors, the
Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.
The Company may, from time to time, without notice to or the consent
of the Holders of the Securities, create and issue Additional Securities under
the Indenture ranking equally with the Initial Securities in all respects (or in
all respects other than the payment of interest accruing prior to the issue date
of such Additional Securities or except for the first payment of interest
following the issue date of such Additional Securities), subject to the
limitations described in Section 1008 of the Indenture. Such Additional
Securities will be consolidated and form a single series with the Initial
Securities and have the same terms as to status, redemption or otherwise as the
Initial Securities.
The Securities are subject to redemption at any time on or after
August 1, 2008, at the option of the Company, in whole or in part, on not less
than 30 nor more than 60 days' prior notice, in amounts of $1,000 or an integral
multiple thereof, at the following Redemption Prices (expressed as percentages
of the principal amount), if redeemed during the 12-month period beginning
August 1 of the years indicated below:
Redemption
Year Price
---- ----------
2008 103.813%
2009 101.906%
2010 and thereafter 100.000%
of the principal amount, in each case, together with accrued and unpaid
interest, if any, to the Redemption Date (subject to the rights of Holders of
record on relevant record dates to receive interest due on an Interest Payment
Date).
In addition, at any time prior to August 1, 2007, the Company, at its
option, may use the net proceeds of one or more Equity Offerings to redeem on
one or more occasions up to an aggregate of 35% of the aggregate principal
amount of Securities originally issued under the Indenture at a Redemption Price
equal to 107.625% of the aggregate principal amount of the Securities redeemed,
plus accrued and unpaid interest, if any, to the Redemption Date (subject to the
rights of Holders of record on relevant record dates to receive interest due on
an Interest Payment Date). At least 65% of the initial aggregate principal
amount of Securities must remain outstanding immediately after the
52
occurrence of such redemption. In order to effect this redemption, the Company
must mail a notice of redemption no later than 30 days after the closing of the
related Equity Offering and must complete such redemption within 90 days of the
closing of the Equity Offering.
The Company will also have the right to redeem the Securities upon
certain tax events as described in Section 1102.
If less than all the Securities are to be redeemed, the Trustee shall
select the Securities to be redeemed in compliance with the requirements of the
principal national securities exchange, if any, on which the Securities are
listed, or if the Securities are not listed, on a pro rata basis, by lot or by
any other method the Trustee shall deem fair and reasonable. Securities redeemed
in part must be redeemed only in integral multiples of $1,000. Redemption
pursuant to the provisions of Section 1103(b) relating to an Equity Offering
must be made on a pro rata basis or on as nearly a pro rata basis as practicable
(subject to the procedures of DTC or any other depositary).
Upon the occurrence of a Change of Control, each Holder may require
the Company to purchase such Holder's Securities in whole or in part in integral
multiples of $1,000, at a purchase price in cash in an amount equal to 101% of
the principal amount thereof, plus accrued and unpaid interest, if any, to the
date of purchase, pursuant to a Change of Control Offer in accordance with the
procedures set forth in the Indenture.
Under certain circumstances described in the Indenture, the Company
will be required to apply the proceeds of Asset Sales to make an offer to repay
the Securities and Pari Passu Indebtedness.
In the case of any redemption or repurchase of Securities in
accordance with the Indenture, interest installments whose Stated Maturity is on
or prior to the Redemption Date will be payable to the Holders of such
Securities of record as of the close of business on the relevant Regular Record
Date or Special Record Date referred to on the face hereof. Securities (or
portions thereof) for whose redemption and payment provision is made in
accordance with the Indenture shall cease to bear interest from and after the
Redemption Date.
In the event of redemption or repurchase of this Security in
accordance with the Indenture in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.
If an Event of Default shall occur and be continuing, the principal
amount of all the Securities may be declared due and payable in the manner and
with the effect provided in the Indenture.
The Indenture contains provisions for defeasance at any time of (a)
the entire Indebtedness on the Securities and (b) certain restrictive covenants
and related Defaults and Events of Default, in each case, upon compliance with
certain conditions set forth therein.
The Indenture permits, with certain exceptions (including certain
amendments permitted without the consent of any Holders and certain amendments
which require the consent of all the Holders) as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the Guarantors and the rights of the Holders under the Indenture and the
Securities and the Guarantees at any time by the Company and the Trustee with
the consent of the
53
Holders of at least a majority in aggregate principal amount of the Securities
at the time Outstanding. The Indenture also contains provisions permitting, with
certain exceptions (including certain waivers which require the consent of all
of the Holders) as therein provided, the Holders of at least a majority in
aggregate principal amount of the Securities at the time Outstanding, on behalf
of the Holders of all the Securities, to waive compliance by the Company and the
Guarantors with certain provisions of the Indenture and the Securities and the
Guarantees and certain past Defaults under the Indenture and the Securities and
the Guarantees and their consequences. Any such consent or waiver by or on
behalf of the Holder of this Security shall be conclusive and binding upon such
Holder and upon all future Holders of this Security and of any Security issued
upon the registration of transfer hereof or in exchange herefor or in lieu
hereof whether or not notation of such consent or waiver is made upon this
Security.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, any
Guarantor or any other obligor on the Securities (in the event such Guarantor or
such other obligor is obligated to make payments in respect of the Securities),
which is joint and several, full, absolute and unconditional, to pay the
principal of, premium, if any, and interest on, this Security at the times,
place, and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by,
the Holder hereof or its attorney duly authorized in writing, and thereupon one
or more new Securities, of authorized denominations and for the same aggregate
principal amount, will be issued to the designated transferee or transferees.
Certificated securities may not be transferred to beneficial holders
in exchange for their beneficial interests in the Rule 144A Global Securities,
the Regulation S Global Securities or the IAI Global Securities unless (i) the
Depositary (A) has notified the Company that it is unwilling or unable to
continue as Depositary for such Global Security or (B) has ceased to be a
clearing agency registered as such under the Exchange Act, and in either case
the Company fails to appoint a successor Depositary within 90 days, (ii) the
Company, at its option, notifies the Trustee in writing that it elects to cause
the issuance of the Securities in certificated form or (iii) there shall have
occurred and be continuing an Event of Default or any event which after notice
or lapse of time or both would be an Event of Default with respect to such
Global Security. Upon any such issuance, the Trustee is required to register
such certificated Initial Securities in the name of, and cause the same to be
delivered to, such Person or Persons (or the nominee of any thereof). All such
certificated Initial Securities would be required to include the Private
Placement Legend unless the Legend is not required by applicable law.
Initial Securities in certificated form are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Initial Securities are exchangeable for a
like aggregate principal amount of Securities of a differing authorized
denomination, as requested by the Holder surrendering the same.
54
At any time when the Company is not subject to Sections 13 or 15(d) of
the Exchange Act, upon the written request of a Holder of an Initial Security,
the Company will promptly furnish or cause to be furnished such information as
is specified pursuant to Rule 144A(d)(4) under the Securities Act (or any
successor provision thereto) to such Holder or to a prospective purchaser of
such Initial Security who such Holder informs the Company is reasonably believed
to be a "Qualified Institutional Buyer" within the meaning of Rule 144A under
the Securities Act in order to permit compliance by such Holder with Rule 144A
under the Securities Act.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, any Guarantor, the Trustee and any agent of the Company,
any Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, any Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary.
THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES
THEREOF.
All terms used in this Security which are defined in the Indenture and
not otherwise defined herein shall have the meanings assigned to them in the
Indenture.
(b) The form of the reverse of the Exchange Securities shall be
substantially as follows:
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
7 5/8% Senior Note due 2012
This Security is one of a duly authorized issue of Securities of the
Company designated as its 7 5/8% Senior Notes due 2012 (herein called the
"Exchange Securities"), issued under and subject to the terms of an indenture
(herein called the "Indenture") dated as of July 30, 2004, among the Company,
the Guarantors and The Bank of New York, as trustee (herein called the
"Trustee," which term includes any successor trustee under the Indenture), to
which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights, limitations of rights, duties,
obligations and immunities thereunder of the Company, the Guarantors, the
Trustee and the Holders of the Securities, and of the terms upon which the
Securities are, and are to be, authenticated and delivered.
The Company may, from time to time, without notice to or the consent
of the Holders of the Securities, create and issue Additional Securities under
the Indenture ranking equally with the Initial Securities in all respects (or in
all respects other than the payment of interest accruing prior to the issue date
of such Additional Securities or except for the first payment of interest
following the issue date of such Additional Securities), subject to the
limitations described in Section 1008 of the Indenture. Such Additional
Securities will be consolidated and form a single series with the Initial
Securities and have the same terms as to status, redemption or otherwise as the
Initial Securities.
55
The Securities are subject to redemption at any time on or after
August 1, 2008, at the option of the Company, in whole or in part, on not less
than 30 nor more than 60 days' prior notice, in amounts of $1,000 or an integral
multiple thereof, at the following Redemption Prices (expressed as percentages
of the principal amount), if redeemed during the 12-month period beginning
August 1 of the years indicated below:
Redemption
Year Price
---- ----------
2008 103.813%
2009 101.906%
2010 and thereafter 100.000%
of the principal amount, in each case, together with accrued and unpaid
interest, if any, to the Redemption Date (subject to the rights of Holders of
record on relevant record dates to receive interest due on an Interest Payment
Date).
In addition, at any time prior to August 1, 2007, the Company, at its
option, may use the net proceeds of one or more Equity Offerings to redeem on
one or more occasions up to an aggregate of 35% of the aggregate principal
amount of Securities originally issued under this Indenture at a Redemption
Price equal to 107.625% of the aggregate principal amount of the Securities
redeemed, plus accrued and unpaid interest, if any, to the Redemption Date
(subject to the rights of Holders of record on relevant record dates to receive
interest due on an Interest Payment Date). At least 65% of the initial aggregate
principal amount of Securities must remain outstanding immediately after the
occurrence of such redemption. In order to effect this redemption, the Company
must mail a notice of redemption no later than 30 days after the closing of the
related Equity Offering and must complete such redemption within 90 days of the
closing of the Equity Offering.
The Company will also have the right to redeem the Securities upon
certain tax events as described in Section 1102.
If less than all the Securities are to be redeemed, the Trustee shall
select the Securities or portions thereof to be redeemed in compliance with the
requirements of the principal national security exchange, if any, on which the
Securities are listed, or if the Securities are not listed, on a pro rata basis,
by lot or by any other method the Trustee shall deem fair and reasonable.
Securities redeemed in part must be redeemed only in integral multiples of
$1,000. Redemption pursuant to the provisions of Section 1103(b) relating to an
Equity Offering must be made on a pro rata basis or on as nearly a pro rata
basis as practicable (subject to the procedures of DTC or any other depositary).
Upon the occurrence of a Change of Control, each Holder may require
the Company to purchase such Holder's Securities in whole or in part in integral
multiples of $1,000, at a purchase price in cash in an amount equal to 101% of
the principal amount thereof, plus accrued and unpaid interest, if any, to the
date of purchase, pursuant to a Change of Control Offer in accordance with the
procedures set forth in the Indenture.
Under certain circumstances described in the Indenture, the Company
will be required to apply the proceeds of Asset Sales to make an offer to repay
the Securities and Pari Passu Indebtedness.
56
In the case of any redemption or repurchase of Securities in
accordance with the Indenture, interest installments whose Stated Maturity is on
or prior to the Redemption Date will be payable to the Holders of such
Securities of record as of the close of business on the relevant Regular Record
Date or Special Record Date referred to on the face hereof. Securities (or
portions thereof) for whose redemption and payment provision is made in
accordance with the Indenture shall cease to bear interest from and after the
Redemption Date.
In the event of redemption or repurchase of this Security in
accordance with the Indenture in part only, a new Security or Securities for the
unredeemed portion hereof shall be issued in the name of the Holder hereof upon
the cancellation hereof.
If an Event of Default shall occur and be continuing, the principal
amount of all the Securities may be declared due and payable in the manner and
with the effect provided in the Indenture.
The Indenture contains provisions for defeasance at any time of (a)
the entire Indebtedness on the Securities and (b) certain restrictive covenants
and related Defaults and Events of Default, in each case upon compliance with
certain conditions set forth therein.
The Indenture permits, with certain exceptions (including certain
amendments permitted without the consent of any Holders and certain amendments
which require the consent of all the Holders) as therein provided, the amendment
thereof and the modification of the rights and obligations of the Company and
the Guarantors and the rights of the Holders under the Indenture and the
Securities and the Guarantees at any time by the Company and the Trustee with
the consent of the Holders of at least a majority in aggregate principal amount
of the Securities at the time Outstanding. The Indenture also contains
provisions permitting, with certain exceptions (including certain waivers which
require the consent of all of the Holders) as therein provided, the Holders of
at least a majority in aggregate principal amount of the Securities at the time
Outstanding, on behalf of the Holders of all the Securities, to waive compliance
by the Company and the Guarantors with certain provisions of the Indenture and
the Securities and the Guarantees and certain past Defaults under the Indenture
and the Securities and the Guarantees and their consequences. Any such consent
or waiver by or on behalf of the Holder of this Security shall be conclusive and
binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor
or in lieu hereof whether or not notation of such consent or waiver is made upon
this Security.
No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, any
Guarantor or any other obligor on the Securities (in the event such Guarantor or
such other obligor is obligated to make payments in respect of the Securities),
which is joint and several, full, absolute and unconditional, to pay the
principal of, and premium, if any, and interest on, this Security at the times,
place, and rate, and in the coin or currency, herein prescribed.
As provided in the Indenture and subject to certain limitations
therein set forth, the transfer of this Security is registrable in the Security
Register, upon surrender of this Security for registration of transfer at the
office or agency of the Company in the Borough of Manhattan, The City of New
York, duly endorsed by, or accompanied by a written instrument of transfer in
form satisfactory to the Company and the Security Registrar duly executed by,
the Holder hereof or its attorney duly authorized in writing, and thereupon one
or more new Securities, of authorized
57
denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees.
Certificated securities may not be transferred to beneficial holders
in exchange for their beneficial interests in the Exchange Securities unless (i)
the Depositary (A) has notified the Company that it is unwilling or unable to
continue as Depositary for such Global Security or (B) has ceased to be a
clearing agency registered as such under the Exchange Act, and in either case
the Company fails to appoint a successor Depositary within 90 days, (ii) the
Company, at its option, notifies the Trustee in writing that it elects to cause
the issuance of the Securities in certificated form or (iii) there shall have
occurred and be continuing an Event of Default or any event which after notice
or lapse of time or both would be an Event of Default with respect to such
Global Security. Upon any such issuance, the Trustee is required to register
such certificated Exchange Securities in the name of, and cause the same to be
delivered to, such Person or Persons (or the nominee of any thereof).
Exchange Securities in certificated form are issuable only in
registered form without coupons in denominations of $1,000 and any integral
multiple thereof. As provided in the Indenture and subject to certain
limitations therein set forth, the Exchange Securities are exchangeable for a
like aggregate principal amount of Securities of a differing authorized
denomination, as requested by the Holder surrendering the same.
No service charge shall be made for any registration of transfer or
exchange of Securities, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Security for registration of
transfer, the Company, any Guarantor, the Trustee and any agent of the Company,
any Guarantor or the Trustee may treat the Person in whose name this Security is
registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, any Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary.
THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES THEREOF.
All terms used in this Security which are defined in the Indenture and
not otherwise defined herein shall have the meanings assigned to them in the
Indenture.
SECTION 204. FORM OF GUARANTEE.
The form of Guarantee shall be set forth on the Securities (including
both Initial Securities and Exchange Securities) substantially as follows:
GUARANTEE
For value received, each of the undersigned hereby absolutely, fully
and unconditionally and irrevocably guarantees, jointly and severally with each
other Guarantor, to the holder of this Security the payment of principal of,
premium, if any, and interest on this Security upon which these Guarantees are
endorsed in the amounts and at the time when due and payable whether by
declaration thereof, or otherwise, and interest on the overdue principal and
interest, if any, of this Security, if lawful, and the payment or performance of
all other obligations of the Company under the
58
Indenture or the Securities, to the holder of this Security and the Trustee, all
in accordance with and subject to the terms and limitations of this Security and
Article Thirteen of the Indenture. This Guarantee will not become effective
until the Trustee duly executes the certificate of authentication on this
Security. These Guarantees shall be governed by and construed in accordance with
the laws of the State of New York, without regard to conflict of law principles
thereof.
59
Dated:
[NAME OF GUARANTOR]
By:
---------------------------------------
Name:
Title:
ARTICLE THREE
THE SECURITIES
SECTION 301. TITLE AND TERMS.
The initial aggregate principal amount of Securities which may be
authenticated and delivered under this Indenture is $350,000,000 in principal
amount of Securities, except for Securities authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Securities
pursuant to Section 303, 304, 305, 306, 307, 308, 906, 1012, 1014 or 1110.
Notwithstanding the foregoing, the Company may, from time to time, without
notice to or the consent of the Holders of Securities, create and issue an
unlimited amount of Additional Securities under this Indenture ranking equally
with the Initial Securities in all respects (or in all respects other than the
payment of interest accruing prior to the issue date of such Additional
Securities or except for the first payment of interest following the issue date
of such Additional Securities), subject to the limitations described in Section
1008 hereof. Such Additional Securities will be consolidated and form a single
series with the Initial Securities and have the same terms as to status,
redemption or otherwise as the Initial Securities.
The Securities shall be known and designated as the "7 5/8% Senior
Notes due 2012" of the Company. The Stated Maturity of the Securities shall be
August 1, 2012, and the Securities shall each bear interest at the rate of 7
5/8% per annum, as such interest rate may be adjusted as set forth in the
Securities, from July 30, 2004, or from the most recent Interest Payment Date to
which interest has been paid, payable semiannually on February 1 and August 1 in
each year, commencing February 1, 2005, until the principal thereof is paid or
duly provided for. Interest on any overdue principal, interest (to the extent
lawful) or premium, if any, shall be payable on demand.
The principal of, premium, if any, and interest on, the Securities
shall be payable and the Securities shall be exchangeable and transferable at an
office or agency of the Company in The City of New York maintained for such
purposes (which initially will be the Corporate Trust Office of the Trustee);
PROVIDED, HOWEVER, that payment of interest may be made at the option of the
Company by check mailed to addresses of the Persons entitled thereto as shown on
the Security Register.
For all purposes hereunder, the Initial Securities and the Exchange
Securities will be treated as one class and are together referred to as the
"Securities." The Initial Securities rank PARI PASSU in right of payment with
the Exchange Securities.
60
The Securities shall be subject to repurchase by the Company pursuant
to an Offer as provided in Section 1012.
Holders shall have the right to require the Company to purchase their
Securities, in whole or in part, in the event of a Change of Control pursuant to
Section 1014.
The Securities shall be redeemable as provided in Article Eleven and
in the Securities.
At the election of the Company, the entire Indebtedness on the
Securities or certain of the Company's obligations and covenants and certain
Events of Default thereunder may be defeased as provided in Article Four.
SECTION 302. DENOMINATIONS.
The Securities shall be issuable only in fully registered form without
coupons and only in denominations of $1,000 and any integral multiple thereof.
SECTION 303. EXECUTION, AUTHENTICATION, DELIVERY AND DATING.
The Securities shall be executed on behalf of the Company by one of
its Chairman of the Board, its President, its Chief Executive Officer, its Chief
Financial Officer or one of its Vice Presidents. The signatures of any of these
officers on the Securities may be manual or facsimile.
Securities bearing the manual or facsimile signatures of individuals
who were at any time the proper officers of the Company shall bind the Company,
notwithstanding that such individuals or any of them have ceased to hold such
offices prior to the authentication and delivery of such Securities or did not
hold such offices at the date of such Securities.
At any time and from time to time after the execution and delivery of
this Indenture, the Company may deliver Securities executed by the Company to
the Trustee (with Guarantees endorsed thereon if required pursuant to the
provisions of this Indenture) for authentication, together with a Company Order
for the authentication and delivery of such Securities; and the Trustee in
accordance with such Company Order shall authenticate and deliver such
Securities as provided in this Indenture and not otherwise.
Each Security shall be dated the date of its authentication.
No Security or Guarantee endorsed thereon shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose unless
there appears on such Security a certificate of authentication substantially in
the form provided for herein duly executed by the Trustee by manual signature of
an authorized signatory, and such certificate upon any Security shall be
conclusive evidence, and the only evidence, that such Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this
Indenture.
In case the Company or any Guarantor, pursuant to Article Eight,
shall, in a single transaction or through a series of related transactions, be
consolidated or merged with or into any other Person or shall sell, assign,
convey, transfer, lease or otherwise dispose of all or substantially all of its
properties and assets to any Person, and the successor Person resulting from
such consolidation or surviving such merger, or into which the Company or such
Guarantor shall have been merged, or the successor Person which shall have
participated in the sale, assignment, conveyance, transfer, lease or
61
other disposition as aforesaid, shall have executed an indenture supplemental
hereto with the Trustee pursuant to Article Eight, any of the Securities
authenticated or delivered prior to such consolidation, merger, sale,
assignment, conveyance, transfer, lease or other disposition may, from time to
time, at the request of the successor Person, be exchanged for other Securities
executed in the name of the successor Person with such changes in phraseology
and form as may be appropriate, but otherwise in substance of like tenor as the
Securities surrendered for such exchange and of like principal amount; and the
Trustee, upon the request of the successor Person, shall authenticate and
deliver Securities as specified in such request for the purpose of such
exchange. If Securities shall at any time be authenticated and delivered in any
new name of a successor Person pursuant to this Section 303 in exchange or
substitution for or upon registration of transfer of any Securities, such
successor Person, at the option of the Holders but without expense to them,
shall provide for the exchange of all Securities at the time Outstanding for
Securities authenticated and delivered in such new name.
The Trustee may appoint an authenticating agent acceptable to the
Company to authenticate Securities on behalf of the Trustee. Unless limited by
the terms of such appointment, an authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to
authentication by the Trustee includes authentication by such agent. An
authenticating agent has the same rights as any Security Registrar or Paying
Agent to deal with the Company and the Guarantors.
SECTION 304. TEMPORARY SECURITIES.
Pending the preparation of definitive Securities, the Company may
execute, and upon Company Order the Trustee shall authenticate and deliver,
temporary Securities which are printed, lithographed, typewritten or otherwise
produced, in any authorized denomination, substantially of the tenor of the
definitive Securities in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers
executing such Securities may determine, as conclusively evidenced by their
execution of such Securities.
If temporary Securities are issued, the Company will cause definitive
Securities to be prepared without unreasonable delay. After the preparation of
definitive Securities, the temporary Securities shall be exchangeable for
definitive Securities upon surrender of the temporary Securities at the office
or agency of the Company designated for such purpose pursuant to Section 1002,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities, the Company shall execute and the Trustee shall
authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized denominations. Until so exchanged, the
temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.
SECTION 305. REGISTRATION, REGISTRATION OF TRANSFER AND EXCHANGE.
The Company shall cause the Trustee to keep, so long as it is the
Security Registrar, at the Corporate Trust Office of the Trustee, or such other
office as the Trustee may designate, a register (the register maintained in such
office or in any other office or agency designated pursuant to Section 1002
being herein sometimes referred to as the "Security Register") in which, subject
to such reasonable regulations as the Security Registrar may prescribe, the
Company shall provide for the registration of Securities and of transfers of
Securities. The Company hereby appoints Trustee to initially be the "Security
Registrar" for the purpose of registering Securities and transfers of Securities
62
as herein provided. The Company may change the Security Registrar or appoint one
or more co-Security Registrars with notice to the Trustee.
Upon surrender for registration of transfer of any Security at the
office or agency of the Company designated pursuant to Section 1002, the Company
shall execute, and the Trustee shall authenticate and deliver, in the name of
the designated transferee or transferees, one or more new Securities of the same
series of any authorized denomination or denominations, of a like aggregate
principal amount.
Furthermore, any Holder of the Global Security shall, by acceptance of
such Global Security, agree that transfers of beneficial interests in such
Global Security may be effected only through a book-entry system maintained by
the Holder of such Global Security (or its agent), and that ownership of a
beneficial interest in a Security shall be required to be reflected in a book
entry.
At the option of the Holder, Securities of any authorized denomination
or denominations may be exchanged for other Securities of a like aggregate
principal amount, upon surrender of the Securities to be exchanged at such
office or agency. Whenever any Securities are so surrendered for exchange, the
Company shall execute, and the Trustee shall authenticate and deliver,
Securities of the same series which the Holder making the exchange is entitled
to receive; PROVIDED that no exchange of Initial Securities for Exchange
Securities shall occur until an Exchange Offer Registration Statement shall have
been declared effective by the Commission and the Exchange Offer shall have
expired; and PROVIDED, FURTHER, HOWEVER that the Initial Securities exchanged
for the Exchange Securities shall be canceled.
All Securities issued upon any registration of transfer or exchange of
Securities shall be the valid obligations of the Company, evidencing the same
Indebtedness, and entitled to the same benefits under this Indenture, as the
Securities surrendered upon such registration of transfer or exchange.
Every Security presented or surrendered for registration of transfer,
or for exchange, repurchase or redemption, shall (if so required by the Company
or the Trustee) be duly endorsed, or be accompanied by a written instrument of
transfer in form satisfactory to the Company and the Security Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing.
No service charge shall be made to a Holder for any registration of
transfer, exchange or redemption of Securities, except for any tax or other
governmental charge that may be imposed in connection therewith, other than
exchanges pursuant to Sections 303, 304, 305, 308, 906, 1012, 1014 or 1110 not
involving any transfer.
The Company shall not be required (a) to issue, register the transfer
of or exchange any Security during a period beginning at the opening of business
15 days before the mailing of a notice of redemption of the Securities selected
for redemption under Section 1104 and ending at the close of business on the day
of such mailing or (b) to register the transfer of or exchange any Security so
selected for redemption in whole or in part, except the unredeemed portion of
Securities being redeemed in part.
Every Security shall be subject to the restrictions on transfer
provided in the legend required to be set forth on the face of each Security
pursuant to Section 202, and the restrictions set
63
forth in this Section 305, and the Holder of each Security, by such Holder's
acceptance thereof (or interest therein), agrees to be bound by such
restrictions on transfer.
Except as provided in Section 306(b) hereof, any Security
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, any Global Security, whether pursuant to this Section 305,
Section 304, 308, 906 or 1110 or otherwise, shall also be a Global Security and
bear the legend specified in Section 202.
SECTION 306. BOOK ENTRY PROVISIONS FOR GLOBAL SECURITIES.
(a) Each Global Security initially shall (i) be registered in the
name of the Depositary for such Global Security or the nominee of such
Depositary, (ii) be deposited with, or on behalf of, the Depositary or with the
Trustee as custodian for such Depositary and (iii) bear legends as set forth in
Section 202.
Members of, or participants in, the Depositary ("Agent Members") shall
have no rights under this Indenture with respect to any Global Security held on
their behalf by the Depositary, or the Trustee as its custodian, or under such
Global Security, and the Depositary may be treated by the Company, the
Guarantors, the Trustee and any agent of the Company or the Trustee as the
absolute owner of such Global Security for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Company, the
Guarantors, 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 shall impair, as between the Depositary and its Agent Members,
the operation of customary practices governing the exercise of the rights of a
Holder of any Security.
(b) Notwithstanding any other provision in this Indenture, no
Global Security may be exchanged in whole or in part for Securities registered,
and no transfer of a Global Security in whole or in part may be registered, in
the name of any Person other than the Depositary for such Global Security or a
nominee thereof unless (i) such Depositary (A) has notified the Company that it
is unwilling or unable to continue as Depositary for such Global Security or (B)
has ceased to be a clearing agency registered as such under the Exchange Act,
and in either case the Company fails to appoint a successor Depositary within 90
days, (ii) the Company, at its option, executes and delivers to the Trustee a
Company Order stating that it elects to cause the issuance of the Securities in
certificated form and that all Global Securities shall be exchanged in whole for
Securities that are not Global Securities (in which case such exchange shall be
effected by the Trustee) or (iii) there shall have occurred and be continuing an
Event of Default or any event which after notice or lapse of time or both would
be an Event of Default with respect to such Global Security.
(c) If any Global Security is to be exchanged for other
Securities or canceled in whole, it shall be surrendered by or on behalf of the
Depositary or its nominee to the Trustee, as Security Registrar, for exchange or
cancellation as provided in this Article Three. If any Global Security is to be
exchanged for other Securities or canceled in part, or if another Security is to
be exchanged in whole or in part for a beneficial interest in any Global
Security, then either (i) such Global Security shall be so surrendered for
exchange or cancellation as provided in this Article Three or (ii) the principal
amount thereof shall be reduced or increased by an amount equal to the portion
thereof to be so exchanged or canceled, or equal to the principal amount of such
other Security to be so exchanged for a beneficial interest therein, as the case
may be, by means of an appropriate adjustment made on the records of the
Trustee, as Security Registrar, whereupon the Trustee, in accordance with the
Applicable Procedures, shall instruct the Depositary or its authorized
representative to make a
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corresponding adjustment to its records. Upon any such surrender or adjustment
of a Global Security, the Trustee shall, subject to this Section 306(c) and as
otherwise provided in this Article Three, authenticate and deliver any
Securities issuable in exchange for such Global Security (or any portion
thereof) to or upon the order of, and registered in such names as may be
directed by, the Depositary or its authorized representative. Upon the request
of the Trustee in connection with the occurrence of any of the events specified
in the preceding paragraph, the Company shall promptly make available to the
Trustee a reasonable supply of Securities that are not in the form of Global
Securities. The Trustee shall be entitled to rely upon any order, direction or
request of the Depositary or its authorized representative which is given or
made pursuant to this Article Three if such order, direction or request is given
or made in accordance with the Applicable Procedures.
(d) Every Security authenticated and delivered upon registration
of transfer of, or in exchange for or in lieu of, a Global Security or any
portion thereof, whether pursuant to this Article Three or otherwise, shall be
authenticated and delivered in the form of, and shall be, a Global Security,
unless such Security is registered in the name of a Person other than the
Depositary for such Global Security or a nominee thereof.
(e) The Depositary or its nominee, as registered owner of a
Global Security, shall be the Holder of such Global Security for all purposes
under this Indenture and the Securities, and owners of beneficial interests in a
Global Security shall hold such interests pursuant to the Applicable Procedures.
Accordingly, any such owner's beneficial interest in a Global Security will be
shown only on, and the transfer of such interest shall be effected only through,
records maintained by the Depositary or its nominee or its Agent Members.
SECTION 307. SPECIAL TRANSFER AND EXCHANGE PROVISIONS.
(a) CERTAIN TRANSFERS AND EXCHANGES. Transfers and exchanges of
Securities and beneficial interests in a Global Security of the kinds specified
in this Section 307 shall be made only in accordance with this Section 307 and
subject in each case to the Applicable Procedures.
(i) RULE 144A GLOBAL SECURITY TO REGULATION S GLOBAL
SECURITY. If the owner of a beneficial interest in the Rule 144A Global
Security wishes at any time to transfer such interest to a Person who
wishes to acquire the same in the form of a beneficial interest in the
Regulation S Global Security, such transfer may be effected only in
accordance with the provisions of this paragraph and paragraph (viii) below
and subject to the Applicable Procedures. Upon receipt by the Trustee, as
Security Registrar, of (a) an order given by the Depositary or its
authorized representative directing that a beneficial interest in the
Regulation S Global Security in a specified principal amount be credited to
a specified Agent Member's account and that a beneficial interest in the
Rule 144A Global Security in an equal principal amount be debited from
another specified Agent Member's account and (b) a Regulation S Certificate
in the form of Exhibit A hereto, satisfactory to the Trustee and duly
executed by the owner of such beneficial interest in the Rule 144A Global
Security or his attorney duly authorized in writing, then the Trustee, as
Security Registrar but subject to paragraph (viii) below, shall reduce the
principal amount of the Rule 144A Global Security and increase the
principal amount of the Regulation S Global Security by such specified
principal amount as provided in Section 306(c).
(ii) RULE 144A GLOBAL SECURITY TO IAI GLOBAL SECURITY. If
the owner of a beneficial interest in the Rule 144A Global Security wishes
at any time to transfer such interest
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to a Person who wishes to acquire the same in the form of a beneficial
interest in the IAI Global Security, such transfer may be effected only in
accordance with the provisions of this paragraph and subject to the
Applicable Procedures. Upon receipt by the Trustee, as Security Registrar,
of (a) an order given by the Depositary or its authorized representative
directing that a beneficial interest in the IAI Global Security in a
specified principal amount be credited to a specified Agent Member's
account and that a beneficial interest in the Rule 144A Global Security in
an equal principal amount be debited from another specified Agent Member's
account and (b) an Institutional Accredited Investor Certificate in the
form of Exhibit C hereto, satisfactory to the Trustee, then the Trustee, as
Security Registrar, shall reduce the principal amount of the Rule 144A
Global Security and increase the principal amount of the IAI Global
Security by such specified principal amount as provided in Section 306(c).
(iii) REGULATION S GLOBAL SECURITY TO RULE 144A GLOBAL
SECURITY. If the owner of a beneficial interest in the Regulation S Global
Security wishes at any time to transfer such interest to a Person who
wishes to acquire the same in the form of a beneficial interest in the Rule
144A Global Security, such transfer may be effected only in accordance with
this paragraph and subject to the Applicable Procedures. Upon receipt by
the Trustee, as Security Registrar, of (a) an order given by the Depositary
or its authorized representative directing that a beneficial interest in
the Rule 144A Global Security in a specified principal amount be credited
to a specified Agent Member's account and that a beneficial interest in the
Regulation S Global Security in an equal principal amount be debited from
another specified Agent Member's account and (b) if such transfer is to
occur during the Restricted Period, a Restricted Securities Certificate in
the form of Exhibit B hereto, satisfactory to the Trustee and duly executed
by the owner of such beneficial interest in the Regulation S Global
Security or his attorney duly authorized in writing, then the Trustee, as
Security Registrar, shall reduce the principal amount of the Regulation S
Global Security and increase the principal amount of the Rule 144A Global
Security by such specified principal amount as provided in Section 306(c).
(iv) REGULATION S GLOBAL SECURITY TO IAI GLOBAL SECURITY.
If the owner of a beneficial interest in the Regulation S Global Security
wishes at any time to transfer such interest to a Person who wishes to
acquire the same in the form of a beneficial interest in the IAI Global
Security, such transfer may be effected only in accordance with this
paragraph and subject to the Applicable Procedures. Upon receipt by the
Trustee, as Security Registrar, of (a) an order given by the Depositary or
its authorized representative directing that a beneficial interest in the
IAI Global Security in a specified principal amount be credited to a
specified Agent Member's account and that a beneficial interest in the
Regulation S Global Security in an equal principal amount be debited from
another specified Agent Member's account and (b) if such transfer is to
occur during the Restricted Period, an Institutional Accredited Investor
Certificate in the form of Exhibit C hereto, satisfactory to the Trustee,
then the Trustee, as Security Registrar, shall reduce the principal amount
of the Regulation S Global Security and increase the principal amount of
the IAI Global Security by such specified principal amount as provided in
Section 306(c).
(v) IAI GLOBAL SECURITY TO REGULATION S GLOBAL SECURITY.
If the owner of a beneficial interest in the IAI Global Security wishes at
any time to transfer such interest to a Person who wishes to acquire the
same in the form of a beneficial interest in the Regulation S Global
Security, such transfer may be effected only in accordance with the
provisions of this paragraph and paragraph (viii) below and subject to the
Applicable Procedures. Upon receipt by the Trustee, as Security Registrar,
of (a) an order given by the Depositary or its authorized
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representative directing that a beneficial interest in the IAI Global
Security in a specified principal amount be credited to a specified Agent
Member's account and that a beneficial interest in the IAI Global Security
in an equal principal amount be debited from another specified Agent
Member's account and (b) a Regulation S Certificate in the form of Exhibit
A hereto, satisfactory to the Trustee and duly executed by the owner of
such beneficial interest in the IAI Global Security or his attorney duly
authorized in writing, then the Trustee, as Security Registrar but subject
to paragraph (viii) below, shall reduce the principal amount of the IAI
Global Security and increase the principal amount of the Regulation S
Global Security by such specified principal amount as provided in Section
306(c).
(vi) IAI GLOBAL SECURITY TO RULE 144A GLOBAL SECURITY. If
the owner of a beneficial interest in the IAI Global Security wishes at any
time to transfer such interest to a Person who wishes to acquire the same
in the form of a beneficial interest in the Rule 144A Global Security, such
transfer may be effected only in accordance with this paragraph and subject
to the Applicable Procedures. Upon receipt by the Trustee, as Security
Registrar, of (a) an order given by the Depositary or its authorized
representative directing that a beneficial interest in the Rule 144A Global
Security in a specified principal amount be credited to a specified Agent
Member's account and that a beneficial interest in the IAI Global Security
in an equal principal amount be debited from another specified Agent
Member's account and (b) if such transfer is to occur during the Restricted
Period, a Restricted Securities Certificate in the form of Exhibit B
hereto, satisfactory to the Trustee and duly executed by the owner of such
beneficial interest in the IAI Global Security or his attorney duly
authorized in writing, then the Trustee, as Security Registrar, shall
reduce the principal amount of the IAI Global Security and increase the
principal amount of the Rule 144A Global Security by such specified
principal amount as provided in Section 306(c).
(vii) EXCHANGES BETWEEN GLOBAL SECURITY AND NON-GLOBAL
SECURITY. A beneficial interest in a Global Security may be exchanged for a
Security that is not a Global Security as provided in Section 307(b);
PROVIDED that, if such interest is a beneficial interest in the Rule 144A
Global Security, or if such interest is a beneficial interest in the IAI
Global Security, or if such interest is a beneficial interest in the
Regulation S Global Security and such exchange is to occur during the
Restricted Period, then such interest shall bear the Private Placement
Legend (subject in each case to Section 307(b)).
(viii) REGULATION S GLOBAL SECURITY TO BE HELD THROUGH
EUROCLEAR OR CLEARSTREAM DURING RESTRICTED PERIOD. The Company shall use
its best efforts to cause the Depositary to ensure that, until the
expiration of the Restricted Period, beneficial interests in the Regulation
S Global Security may be held only in or through accounts maintained at the
Depositary by Euroclear or Clearstream (or by Agent Members acting for the
account thereof), and no person shall be entitled to effect any transfer or
exchange that would result in any such interest being held otherwise than
in or through such an account; PROVIDED that this paragraph (viii) shall
not prohibit any transfer or exchange of such an interest in accordance
with paragraph (ii) above.
(b) PRIVATE PLACEMENT LEGENDS. Rule 144A Global Securities and
their Successor Securities, IAI Global Securities and their Successor Securities
and Regulation S Global Securities and their Successor Securities shall bear a
Private Placement Legend, subject to the following:
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(i) subject to the following clauses of this Section
307(b), a Security or any portion thereof which is exchanged, upon transfer
or otherwise, for a Global Security or any portion thereof shall bear the
Private Placement Legend borne by such Global Security while represented
thereby;
(ii) subject to the following clauses of this Section
307(b) herein, a new Security which is not a Global Security and is issued
in exchange for another Security (including a Global Security) or any
portion thereof, upon transfer or otherwise, shall bear the Private
Placement Legend borne by such other Security;
(iii) all Securities sold or otherwise disposed of pursuant
to an effective registration statement under the Securities Act, together
with their respective Successor Securities, shall not bear a Private
Placement Legend;
(iv) at any time after the Securities may be freely
transferred without registration under the Securities Act or without being
subject to transfer restrictions pursuant to the Securities Act, a new
Security which does not bear a Private Placement Legend may be issued in
exchange for or in lieu of a Security (other than a Global Security) or any
portion thereof which bears such a legend if the Trustee has received an
Unrestricted Securities Certificate substantially in the form of Exhibit D
hereto, satisfactory to the Trustee and duly executed by the Holder of such
legended Security or his attorney duly authorized in writing, and after
such date and receipt of such certificate, the Trustee shall authenticate
and deliver such a new Security in exchange for or in lieu of such other
Security as provided in this Article Three;
(v) a new Security which does not bear a Private Placement
Legend may be issued in exchange for or in lieu of a Security (other than a
Global Security) or any portion thereof which bears such a legend if, in
the Company's judgment, placing such a legend upon such new Security is not
necessary to ensure compliance with the registration requirements of the
Securities Act, and the Trustee, at the direction of the Company, shall
authenticate and deliver such a new Security as provided in this Article
Three; and
(vi) notwithstanding the foregoing provisions of this
Section 307(b), a Successor Security of a Security that does not bear a
particular form of Private Placement Legend shall not bear such form of
legend unless the Company has reasonable cause to believe that such
Successor Security is a "restricted security" within the meaning of Rule
144, in which case the Trustee, at the direction of the Company, shall
authenticate and deliver a new Security bearing a Private Placement Legend
in exchange for such Successor Security as provided in this Article Three.
By its acceptance of any Security bearing the Private Placement
Legend, each Holder of such a Security acknowledges the restrictions on transfer
of such Security set forth in this Indenture and in the Private Placement Legend
and agrees that it will transfer such Security only as provided in this
Indenture. Each Holder of a Security agrees to indemnify the Company and the
Trustee against any liability that may result from the transfer, exchange or
assignment of such Holder's Security in violation of any provision of this
Indenture and/or applicable United States Federal or state securities law.
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The Trustee shall have no 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 Security (including any transfers between or among Participants or
beneficial owners of interests in any Global Security) 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 Security Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 306 or this Section
307. The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon the
giving of reasonable written notice to the Security Registrar.
SECTION 308. MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.
If (a) any mutilated Security is surrendered to the Trustee, or (b)
the Company and the Trustee receive evidence to their satisfaction of the
destruction, loss or theft of any Security, and there is delivered to the
Company, any Guarantor and the Trustee, such security or indemnity, in each
case, as may be required by them to save each of them harmless, then, in the
absence of notice to the Company, any Guarantor or the Trustee that such
Security has been acquired by a BONA FIDE or protected purchaser, the Company
shall execute and upon a Company Request the Trustee shall authenticate and
deliver, in exchange for any such mutilated Security or in lieu of any such
destroyed, lost or stolen Security, a replacement Security of like tenor and
principal amount, bearing a number not contemporaneously outstanding and each
Guarantor shall execute a replacement Guarantee.
In case any such mutilated, destroyed, lost or stolen Security has
become or is about to become due and payable, the Company in its discretion may,
instead of issuing a replacement Security, pay such Security.
Upon the issuance of any replacement Securities under this Section
308, the Company may require the payment of a sum sufficient to pay all
documentary, stamp or similar issue or transfer taxes or other governmental
charges that may be imposed in relation thereto and any other expenses
(including the fees and expenses of the Trustee) connected therewith.
Every replacement Security and Guarantee issued pursuant to this
Section 308 in lieu of any destroyed, lost or stolen Security shall constitute
an original additional contractual obligation of the Company and any Guarantor,
whether or not the destroyed, lost or stolen Security shall be at any time
enforceable by anyone, and shall be entitled to all benefits of this Indenture
equally and proportionately with any and all other Securities duly issued
hereunder.
The provisions of this Section 308 are exclusive and shall preclude
(to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Securities.
SECTION 309. PAYMENT OF INTEREST; INTEREST RIGHTS PRESERVED.
Interest on any Security which is payable, and is punctually paid or
duly provided for, on the Stated Maturity of such interest shall be paid to the
Person in whose name the Security (or any
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Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest payment.
Any interest on any Security which is payable, but is not punctually
paid or duly provided for, on an Interest Payment Date, and interest on such
defaulted interest at the then applicable interest rate borne by the Securities,
to the extent lawful (such defaulted interest and interest thereon herein
collectively called "Defaulted Interest"), shall forthwith cease to be payable
to the Holder on the Regular Record Date; and such Defaulted Interest may be
paid by the Company, at its election in each case, as provided in subsection (a)
or (b) below:
(a) The Company may elect to make payment of any Defaulted
Interest to the Persons in whose names the Securities (or any relevant
Predecessor Securities) are registered at the close of business on a Special
Record Date for the payment of such Defaulted Interest, which shall be fixed in
the following manner. The Company shall notify the Trustee in writing of the
amount of Defaulted Interest proposed to be paid on each Security and the date
of the proposed payment (the "Special Payment Date"), and at the same time the
Company shall deposit with the Trustee an amount of money equal to the aggregate
amount proposed to be paid in respect of such Defaulted Interest or shall make
arrangements satisfactory to the Trustee for such deposit prior to the Special
Payment Date, such money when deposited to be held in trust for the benefit of
the Persons entitled to such Defaulted Interest as in this subsection (a)
provided. Thereupon the Company shall fix a Special Record Date for the payment
of such Defaulted Interest which shall be not more than 20 days and not less
than 15 days prior to the date of the Special Payment Date and not less than 15
days after the receipt by the Trustee of the notice of the proposed payment. The
Company shall promptly notify the Trustee in writing of such Special Record
Date. In the name and at the expense of the Company, the Trustee shall cause
notice of the proposed payment of such Defaulted Interest and the Special Record
Date therefor to be mailed, first-class postage prepaid, to each Holder at its
address as it appears in the Security Register, not less than 10 days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted
Interest and the Special Record Date and Special Payment Date therefor having
been so mailed, such Defaulted Interest shall be paid to the Persons in whose
names the Securities are registered on such Special Record Date and shall no
longer be payable pursuant to the following subsection (b).
(b) The Company may make payment of any Defaulted Interest in any
other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities may be listed, and upon such notice as may be
required by this Indenture not inconsistent with the requirements of such
exchange, if, after written notice given by the Company to the Trustee of the
proposed payment pursuant to this subsection (b), such payment shall be deemed
practicable by the Trustee.
Subject to the foregoing provisions of this Section 309, each Security
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Security shall carry the rights to interest accrued
and unpaid, and to accrue, which were carried by such other Security.
SECTION 310. CUSIP NUMBERS.
The Company in issuing the Securities may use "CUSIP" numbers (if then
generally in use), and the Company, or the Trustee on behalf of the Company,
shall use CUSIP numbers in notices of redemption or exchange as a convenience to
Holders; PROVIDED, however, that any such notice shall
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state that no representation is made as to the correctness of such numbers
either as printed on the Securities or as contained in any notice of redemption
or exchange and that reliance may be placed only on the other identification
numbers printed on the Securities; and PROVIDED FURTHER, HOWEVER, that failure
to use CUSIP numbers in any notice of redemption or exchange shall not affect
the validity or sufficiency of such notice.
SECTION 311. PERSONS DEEMED OWNERS.
Prior to and at the time of due presentment of a Security for
registration of transfer, the Company, any Guarantor, the Trustee and any agent
of the Company, any Guarantor or the Trustee may treat the Person in whose name
any Security is registered as the owner of such Security for the purpose of
receiving payment of principal of, premium, if any, and (subject to Section 309)
interest on, such Security and for all other purposes whatsoever, whether or not
such Security is overdue, and neither the Company, any Guarantor, the Trustee
nor any agent of the Company, any Guarantor or the Trustee shall be affected by
notice to the contrary.
SECTION 312. CANCELLATION.
All Securities surrendered for payment, purchase, redemption,
registration of transfer or exchange shall be delivered to the Trustee and, if
not already canceled, shall be promptly canceled by it. The Company and any
Guarantor may at any time deliver to the Trustee for cancellation any Securities
previously authenticated and delivered hereunder which the Company or such
Guarantor may have acquired in any manner whatsoever, and all Securities so
delivered shall be promptly canceled by the Trustee. No Securities shall be
authenticated in lieu of or in exchange for any Securities canceled as provided
in this Section 312, except as expressly permitted by this Indenture. All
canceled Securities held by the Trustee shall be disposed of by the Trustee,
unless by a Company Order received by the Trustee prior to such disposal, the
Company shall direct that the canceled Securities be returned to it. The Trustee
shall provide the Company a list of all Securities that have been canceled from
time to time as requested by the Company.
SECTION 313. COMPUTATION OF INTEREST.
Interest on the Securities shall be computed on the basis of a 360-day
year comprised of twelve 30-day months.
ARTICLE FOUR
DEFEASANCE AND COVENANT DEFEASANCE
SECTION 401. COMPANY'S OPTION TO EFFECT DEFEASANCE OR COVENANT DEFEASANCE.
The Company may, at its option by Board Resolution, at any time, with
respect to the Securities, elect to have either Section 402 or Section 403 be
applied to all of the Outstanding Securities (the "Defeased Securities"), upon
compliance with the conditions set forth below in this Article Four.
SECTION 402. DEFEASANCE AND DISCHARGE.
Upon the Company's exercise under Section 401 of the option applicable
to this Section 402, the Company, each Guarantor and any other obligor upon the
Securities, if any, shall be deemed
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to have been discharged from its obligations with respect to the Defeased
Securities on the date the conditions set forth in Section 404 below are
satisfied (hereinafter, "defeasance"). For this purpose, such defeasance means
that the Company, each Guarantor and any other obligor under this Indenture
shall be deemed to have paid and discharged the entire Indebtedness represented
by the Defeased Securities, which shall thereafter be deemed to be "Outstanding"
only for the purposes of Section 405 and the other Sections of this Indenture
referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Securities and this Indenture insofar as such Securities
are concerned (and the Trustee, at the expense of the Company and upon Company
Request, shall execute proper instruments acknowledging the same), except for
the following which shall survive until otherwise terminated or discharged
hereunder: (a) the rights of Holders of Defeased Securities to receive, solely
from the trust fund described in Section 404 and as more fully set forth in such
Section, payments in respect of the principal of, premium, if any, and interest
on, such Securities, when such payments are due, (b) the Company's obligations
with respect to such Defeased Securities under Sections 304, 305, 308, 1002 and
1003, (c) the rights, powers, trusts, duties and immunities of the Trustee
hereunder, including, without limitation, the Trustee's rights under Section
607, and (d) this Article Four. Subject to compliance with this Article Four,
the Company may exercise its option under this Section 402 notwithstanding the
prior exercise of its option under Section 403 with respect to the Securities.
SECTION 403. COVENANT DEFEASANCE.
Upon the Company's exercise under Section 401 of the option applicable
to this Section 403, the Company and each Guarantor shall be released from its
obligations under any covenant or provision contained or referred to in Sections
1005 through 1021, inclusive, and the provisions of Section 801(a), with respect
to the Defeased Securities, on and after the date the conditions set forth in
Section 404 below are satisfied (hereinafter, "covenant defeasance"), and the
Defeased Securities shall thereafter be deemed to be not "Outstanding" for the
purposes of any direction, waiver, consent or declaration or Act of Holders (and
the consequences of any thereof) in connection with such covenants, but shall
continue to be deemed "Outstanding" for all other purposes hereunder. For this
purpose, such covenant defeasance means that, with respect to the Defeased
Securities, the Company and each Guarantor may omit to comply with and shall
have no liability in respect of any term, condition or limitation set forth in
any such Section, whether directly or indirectly, by reason of any reference
elsewhere herein to any such Section or by reason of any reference in any such
Section to any other provision herein or in any other document and such omission
to comply shall not constitute a Default or an Event of Default under Section
501(3), and Defaults or Events of Default under Section 501(4), (5) and (6)
shall cease to apply, but, except as specified above, the remainder of this
Indenture and such Defeased Securities shall be unaffected thereby.
SECTION 404. CONDITIONS TO DEFEASANCE OR COVENANT DEFEASANCE.
The following shall be the conditions to application of either Section
402 or Section 403 to the Defeased Securities:
(1) the Company must irrevocably deposit with the Trustee,
in trust, for the benefit of the Holders of the Securities, cash or U.S.
Government Obligations, or a combination thereof, in such amounts as will
be sufficient, in the opinion of a U.S. or Canadian nationally recognized
firm of independent public accountants or a U.S. or Canadian nationally
recognized investment banking firm, to pay and discharge the principal of,
premium, if any, and interest on, the Outstanding Securities on the Stated
Maturity of such principal or interest (or on any date after August 1, 2008
(such date being referred to as the "Defeasance Redemption Date"),
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if at or prior to electing either its option applicable to Section 402 or
its option applicable to Section 403, the Company has delivered to the
Trustee an irrevocable notice to redeem all of the Outstanding Securities
on the Defeasance Redemption Date);
(2) in the case of an election under Section 402, the
Company shall have delivered to the Trustee an Opinion of Independent
Counsel in the United States stating that (A) the Company has received
from, or there has been published by, the Internal Revenue Service a ruling
or (B) since the date of this Indenture, there has been a change in the
applicable federal income tax law, in either case to the effect that, and
based thereon such Opinion of Independent Counsel in the United States
shall confirm that, the Holders and the beneficial owners of the
Outstanding Securities will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of such deposit and defeasance and
will be subject to U.S. federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such defeasance
had not occurred;
(3) in the case of an election under Section 403, the
Company shall have delivered to the Trustee an Opinion of Independent
Counsel in the United States to the effect that the Holders and the
beneficial owners of the Outstanding Securities will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of such
deposit and covenant defeasance and will be subject to U.S. federal income
tax on the same amounts, in the same manner and at the same times as would
have been the case if such covenant defeasance had not occurred;
(4) in the case of both defeasance and covenant
defeasance, the Company shall have delivered to the Trustee an Opinion of
Independent Counsel in Canada stating that the Company has received from,
or there has been published by, the Canada Revenue Agency an advance
ruling, in either case to the effect that, and based thereon such opinion
shall confirm that, (A) the Holders and the beneficial owners of the
Outstanding Securities will not recognize income, gain or loss for Canadian
federal, provincial or territorial income tax or other tax purposes as a
result of such deposit and defeasance and will be subject to Canadian
federal, provincial or territorial income tax or other tax on the same
amounts, in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred (and for the purposes
of such opinion, such Canadian counsel shall assume that beneficial owners
of the Securities include beneficial owners who are not resident in Canada)
and (B) that payments on the Securities will not be subject to any
deduction or withholding for taxes imposed, assessed or levied by Canada or
any taxing authority in or of Canada as a result of such deposit and
defeasance;
(5) no Default or Event of Default shall have occurred and
be continuing on the date of such deposit or insofar as clause (7) or (8)
of Section 501 is concerned, at any time during the period ending on the
91st day after the date of deposit;
(6) such defeasance or covenant defeasance shall not cause
the Trustee for the Securities to have a conflicting interest as defined in
this Indenture and for purposes of the Trust Indenture Act with respect to
any securities of the Company or any Guarantor;
(7) such defeasance or covenant defeasance shall not
result in a breach or violation of, or constitute a Default under, this
Indenture or any other material agreement or
73
instrument to which the Company, any Guarantor or any Restricted Subsidiary
is a party or by which it is bound;
(8) such defeasance or covenant defeasance shall not
result in the trust arising from such deposit constituting an investment
company within the meaning of the Investment Company Act of 1940, as
amended, unless such trust shall be registered under such Act or exempt
from registration thereunder;
(9) the Company will have delivered to the Trustee an
Opinion of Independent Counsel in the United States to the effect that
(assuming no Holder of the Securities would be considered an insider of the
Company or any Guarantor under any applicable bankruptcy or insolvency law
and assuming no intervening bankruptcy or insolvency of the Company or any
Guarantor between the date of deposit and the 91st day following the
deposit) after the 91st day following the deposit, the trust funds will not
be subject to the effect of any applicable bankruptcy, insolvency,
reorganization or similar laws affecting creditors' rights generally;
(10) the Company shall have delivered to the Trustee an
Officers' Certificate stating that the deposit was not made by the Company
with the intent of preferring the holders of the Securities or any
Guarantee over the other creditors of the Company or any Guarantor with the
intent of defeating, hindering, delaying or defrauding creditors of the
Company, any Guarantor or others;
(11) no event or condition shall exist that would prevent
the Company from making payments of the principal of, premium, if any, and
interest on the Securities on the date of such deposit or at any time
ending on the 91st day after the date of such deposit; and
(12) the Company will have delivered to the Trustee an
Officers' Certificate and an Opinion of Independent Counsel, each stating
that all conditions precedent to either the defeasance under Section 402 or
the covenant defeasance under Section 403, as the case may be, have been
complied with.
Opinions of Counsel or Opinions of Independent Counsel required to be
delivered under this Section 404 shall be in form and substance reasonably
satisfactory to the Trustee and may have qualifications customary for opinions
of the type required and counsel delivering such opinions may rely as to factual
matters on certificates of the Company or government or other officials
customary for opinions of the type required, which certificates shall be limited
as to matters of fact, including that various financial covenants have been
complied with.
SECTION 405. DEPOSITED MONEY AND U.S. GOVERNMENT OBLIGATIONS TO BE HELD IN
TRUST; OTHER MISCELLANEOUS PROVISIONS.
Subject to the provisions of the last paragraph of Section 1003, all
United States dollars and U.S. Government Obligations (including the proceeds
thereof) deposited with the Trustee pursuant to Section 404 in respect of the
Defeased Securities shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Securities and this Indenture, to the
payment, either directly or through any Paying Agent (excluding the Company or
any of its Affiliates acting as Paying Agent), as the Trustee may determine, to
the Holders of such Securities of all sums due and to become due
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thereon in respect of principal, premium, if any, and interest, but such money
need not be segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any tax, fee
or other charge imposed on or assessed against the U.S. Government Obligations
deposited pursuant to Section 404 or the principal and interest received in
respect thereof other than any such tax, fee or other charge which by law is
imposed, assessed or for the account of the Holders of the Defeased Securities.
Anything in this Article Four to the contrary notwithstanding, the
Trustee shall deliver or pay to the Company from time to time upon Company
Request any United States dollars or U.S. Government Obligations held by it as
provided in Section 404 which, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, are in excess of the amount thereof which would then
be required to be deposited to effect defeasance or covenant defeasance under
this Article Four.
SECTION 406. REINSTATEMENT.
If the Trustee or Paying Agent is unable to apply any United States
dollars or U.S. Government Obligations in accordance with Section 402 or 403, as
the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then
the Company's obligations under this Indenture and the Securities and any
Guarantor's obligations under any Guarantee shall be revived and reinstated,
with present and prospective effect, as though no deposit had occurred pursuant
to Section 402 or 403, as the case may be, until such time as the Trustee or
Paying Agent is permitted to apply all such United States dollars or U.S.
Government Obligations in accordance with Section 402 or 403, as the case may
be; PROVIDED, HOWEVER, that if the Company makes any payment to the Trustee or
Paying Agent of principal of, premium, if any, or interest on any Security
following the reinstatement of its obligations, the Trustee or Paying Agent
shall promptly pay any such amount to the Holders of the Securities and the
Company shall be subrogated to the rights of the Holders of such Securities to
receive such payment from the United States dollars and U.S. Government
Obligations held by the Trustee or Paying Agent.
ARTICLE FIVE
REMEDIES
SECTION 501. EVENTS OF DEFAULT.
"Event of Default," wherever used herein, means any one of the
following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant
to any judgment, decree or order of any court or any order, rule or regulation
of any administrative or governmental body):
(1) there shall be a default in the payment of any
interest on any Security when it becomes due and payable, and such default
shall continue for a period of 30 days;
(2) there shall be a default in the payment of the
principal of (or premium, if any, on) any Security at its Maturity (upon
acceleration, optional or mandatory redemption, if any, required repurchase
or otherwise);
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(3) (a) there shall be a default in the performance,
or breach, of any covenant or agreement of the Company or any Guarantor
under the Indenture or any Guarantee (other than a default in the
performance, or breach, of a covenant or agreement which is specifically
dealt with in clause (1), (2) or in clause (b), (c), (d) or (e) of this
clause (3)) and such default or breach shall continue for a period of 30
days after written notice has been given, by certified mail, (1) to the
Company by the Trustee or (2) to the Company and the Trustee by the Holders
of at least 25% in aggregate principal amount of the Outstanding
Securities; (b) there shall be a default in the performance or breach of
the provisions described in Article Eight; (c) the Company shall have
failed to make or consummate an Offer in accordance with the provisions of
Section 1012 herein; (d) the Company shall have failed to make or
consummate a Change of Control Offer in accordance with the provisions of
Section 1014 herein or (e) the Company shall have failed to make or
consummate an offer to purchase the Securities if the closing of the
Acquisition is not completed within 10 days of the closing of the sale of
the Securities;
(4) (a) any default in the payment of the principal,
premium, if any, or interest on any Indebtedness shall have occurred under
any of the agreements, indentures or instruments under which the Company,
any Guarantor or any Restricted Subsidiary then has outstanding
Indebtedness in excess of $40.0 million when the same shall become due and
payable in full and such default shall have continued after giving effect
to any applicable grace period and shall not have been cured or waived and,
if not already matured at its final maturity in accordance with its terms,
the holder of such Indebtedness shall have the right to accelerate such
Indebtedness or (b) an event of default as defined in any of the
agreements, indentures or instruments described in clause (a) of this
clause (4) shall have occurred and the Indebtedness thereunder, if not
already matured at its final maturity in accordance with its terms, shall
have been accelerated;
(5) any Guarantee shall for any reason cease to be, or
shall for any reason be asserted in writing by any Guarantor or the Company
not to be, in full force and effect and enforceable in accordance with its
terms, except to the extent contemplated by this Indenture and any such
Guarantee;
(6) one or more judgments, orders or decrees of any court
or regulatory or administrative agency for the payment of money in excess
of $40.0 million, either individually or in the aggregate, shall be
rendered against the Company, any Guarantor or any Subsidiary or any of
their respective properties and shall not be discharged and either (a) any
creditor shall have commenced an enforcement proceeding upon such judgment,
order or decree or (b) there shall have been a period of 60 consecutive
days during which a stay of enforcement of such judgment or order, by
reason of an appeal or otherwise, shall not be in effect;
(7) there shall have been the entry by a court of
competent jurisdiction of (a) a decree or order for relief in respect of
the Company or any of its Significant Subsidiaries in an involuntary case
or proceeding under any applicable Bankruptcy Law or (b) a decree or order
adjudging the Company or any of its Significant Subsidiaries bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment or
composition of or in respect of the Company or any of its Significant
Subsidiaries under any applicable federal or state or provincial law, or
appointing a custodian, receiver, liquidator, assignee, trustee,
sequestrator (or other similar official) of the Company or any of its
Significant Subsidiaries or of any substantial part of their
76
respective properties, or ordering the winding up or liquidation of their
affairs, and any such decree or order for relief shall continue to be in
effect, or any such other decree or order shall be unstayed and in effect,
for a period of 60 consecutive days; or
(8) (a) the Company or any Significant Subsidiary
commences a voluntary case or proceeding under any applicable
Bankruptcy Law or any other case or proceeding to be
adjudicated bankrupt or insolvent,
(b) the Company or any Significant Subsidiary
consents to the entry of a decree or order for relief in
respect of the Company or such Significant Subsidiary in an
involuntary case or proceeding under any applicable
Bankruptcy Law or to the commencement of any bankruptcy or
insolvency case or proceeding against it,
(c) the Company or any Significant Subsidiary files
a petition or answer or consent seeking reorganization or
relief under any applicable federal or state or provincial
law,
(d) the Company or any Significant Subsidiary (1)
consents to the filing of such petition or the appointment
of, or taking possession by, a custodian, receiver,
liquidator, assignee, trustee, sequestrator or similar
official of the Company or any Significant Subsidiary or of
any substantial part of their respective properties or (2)
makes an assignment for the benefit of creditors, or
(e) the Company or any Significant Subsidiary takes
any corporate action in furtherance of any such actions in
this paragraph (8).
SECTION 502. ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.
If an Event of Default (other than as specified in clauses (7) and (8)
of Section 501 with respect to the Company or any Significant Subsidiary) shall
occur and be continuing with respect to this Indenture, the Trustee or the
Holders of not less than 25% in aggregate principal amount of the Securities
then Outstanding may, and the Trustee at the request of such Holders shall,
declare all unpaid principal of, premium, if any, and accrued interest on all
Securities to be due and payable immediately, by a notice in writing to the
Company (and to the Trustee if given by the Holders of the Securities) and upon
any such declaration, such principal, premium, if any, and interest shall become
due and payable immediately. In the event of a declaration of acceleration of
the Securities because an Event of Default described in clause (4) under Section
501 has occurred and is continuing, the declaration of acceleration of the
Securities shall be automatically annulled if the event of default triggering
such Event of Default pursuant to clause (4) of Section 501 shall be remedied or
cured by the Company or waived by the holders of the relevant Indebtedness
within 20 days after the declaration of acceleration with respect thereto (and
any acceleration of such Indebtedness was rescinded) and if (1) the annulment of
the acceleration of the Securities would not conflict with any judgment or
decree of a court of competent jurisdiction and (2) all existing Events of
Default, except nonpayment of principal, premium or interest on the Securities
that became due solely because of the acceleration of the Securities, have been
cured or waived. If an Event of Default specified in clause (7) or (8) of
Section 501 occurs with respect to the Company or any Significant Subsidiary and
is continuing, then all the Securities shall IPSO FACTO become and be due and
payable immediately in an amount equal to the principal amount of the
Securities, together with accrued and unpaid interest, if any, to the date the
Securities become due and payable, without any declaration or other act on the
part of the Trustee or
77
any Holder. Thereupon, the Trustee may, at its discretion, proceed to protect
and enforce the rights of the Holders of the Securities by appropriate judicial
proceedings.
After a declaration of acceleration, but before a judgment or decree for
payment of the money due has been obtained by the Trustee, the Holders of a
majority in aggregate principal amount of the Outstanding Securities by written
notice to the Company and the Trustee, may rescind and annul such declaration
and its consequences if:
(a) the Company has paid or deposited with the Trustee a sum sufficient to
pay (1) all sums paid or advanced by the Trustee under this Indenture and the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, (2) all overdue interest on all Securities then
Outstanding, (3) the principal of, and premium, if any, on any Securities then
Outstanding which have become due otherwise than by such declaration of
acceleration and interest thereon at the rate borne by the Securities, and (4)
to the extent that payment of such interest is lawful, interest upon overdue
interest at the rate borne by the Securities;
(b) the rescission would not conflict with any judgment or decree of a
court of competent jurisdiction; and
(c) all Events of Default, other than the non-payment of principal of,
premium, if any, and interest on the Securities, which have become due solely by
such declaration of acceleration, have been cured or waived as provided in
Section 513.
No such rescission shall affect any subsequent Default or impair any right
consequent thereon.
SECTION 503. COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY
TRUSTEE.
The Company and each Guarantor covenant that if
(a) default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default continues
for a period of 30 days, or
(b) default is made in the payment of the principal of or
premium, if any, on any Security at the Stated Maturity thereof or otherwise,
the Company and such Guarantor will, upon demand of the Trustee, pay to it, for
the benefit of the Holders of such Securities, the whole amount then due and
payable on such Securities for principal and premium, if any, and interest, with
interest upon the overdue principal and premium, if any, and, to the extent that
payment of such interest shall be legally enforceable, upon overdue installments
of interest, at the rate borne by the Securities; and, in addition thereto, 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.
If the Company or any Guarantor, as the case may be, fails to pay such
amounts forthwith upon such demand, the Trustee, in its own name and as trustee
of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid and may prosecute such proceeding to judgment or
final decree, and may enforce the same against the Company or any Guarantor (in
accordance with the applicable Guarantee) or any other obligor upon the
Securities and collect the moneys adjudged or decreed to be payable in the
manner provided by law out of the property of the Company, any Guarantor or any
other obligor upon the Securities, wherever situated.
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If an Event of Default occurs and is continuing, the Trustee may in
its discretion proceed to protect and enforce its rights and the rights of the
Holders under this Indenture or any Guarantee by such appropriate private or
judicial proceedings as the Trustee shall deem most effectual to protect and
enforce such rights, including seeking recourse against any Guarantor pursuant
to the terms of any Guarantee, whether for the specific enforcement of any
covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein or therein, or to enforce any other proper remedy, including,
without limitation, seeking recourse against any Guarantor pursuant to the terms
of a Guarantee, or to enforce any other proper remedy, subject however to
Section 512. No recovery of any such judgment upon any property of the Company
or any Guarantor shall affect or impair any rights, powers or remedies of the
Trustee or the Holders.
SECTION 504. TRUSTEE MAY FILE PROOFS OF CLAIM.
In case of the pendency of any receivership, insolvency, liquidation,
bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor, including any
Guarantor, upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal
of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made
any demand on the Company for the payment of overdue principal or interest)
shall be entitled and empowered, by intervention in such proceeding or
otherwise,
(a) to file and prove a claim for the whole amount of principal,
and premium, if any, and interest owing and unpaid in respect of the Securities
and to file such 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 of the Holders allowed in such judicial proceeding, and
(b) to collect and receive any moneys or other property payable
or deliverable on any such claims and to distribute the same;
and any custodian, receiver, assignee, trustee, liquidator, sequestrator or
similar official 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 the
Trustee any amount due 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 607.
Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Securities
or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.
SECTION 505. TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.
All rights of action and claims under this Indenture, the Securities
or the Guarantees may be prosecuted and enforced by the Trustee without the
possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name and as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses,
79
disbursements and advances of the Trustee, its agents and counsel, be for the
ratable benefit of the Holders of the Securities in respect of which such
judgment has been recovered.
SECTION 506. APPLICATION OF MONEY COLLECTED.
Any money or property collected by the Trustee pursuant to this
Article Five or otherwise on behalf of the Holders or the Trustee pursuant to
this Article Five or through any proceeding or any arrangement or restructuring
in anticipation or in lieu of any proceeding contemplated by this Article Five
shall be applied, subject to applicable law, in the following order, at the date
or dates fixed by the Trustee and, in case of the distribution of such money on
account of principal, premium, if any, or interest, upon presentation of the
Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:
FIRST: To the payment of all amounts due the Trustee under Section
607;
SECOND: To the payment of the amounts then due and unpaid upon the
Securities for principal, premium, if any, and interest, in respect of which or
for the benefit of which such money has been collected, ratably, without
preference or priority of any kind, according to the amounts due and payable on
such Securities for principal, premium, if any, and interest; and
THIRD: The balance, if any, to the Company, provided that all sums due
and owing to the Holders and the Trustee have been paid in full as required by
this Indenture.
SECTION 507. LIMITATION ON SUITS.
No Holder of any Securities shall have any right to institute any
proceeding, judicial or otherwise, with respect to this Indenture or the
Securities, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless
(a) such Holder has previously given written notice to the
Trustee of a continuing Event of Default;
(b) the Holders of not less than 25% in aggregate principal
amount of the Outstanding Securities shall have made written request to the
Trustee to institute proceedings in respect of such Event of Default in its own
name as trustee hereunder;
(c) such Holder or Holders have offered to the Trustee a
reasonable indemnity against the costs, expenses and liabilities to be incurred
in compliance with such request;
(d) the Trustee for 15 days after its receipt of such notice,
request and offer (and if requested, provision) of indemnity has failed to
institute any such proceeding; and
(e) no direction inconsistent with such written request has been
given to the Trustee during such 15-day period by the Holders of a majority in
aggregate principal amount of the Outstanding Securities;
it being understood and intended that no one or more Holders shall have any
right in any manner whatever by virtue of, or by availing of, any provision of
this Indenture, any Security or any Guarantee to affect, disturb or prejudice
the rights of any other Holders, or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture,
any Security or any
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Guarantee, except in the manner provided in this Indenture and for the equal and
ratable benefit of all the Holders.
SECTION 508. UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL, PREMIUM
AND INTEREST.
Notwithstanding any other provision in this Indenture, including
Section 507 without limitation, the Holder of any Security shall have the right
based on the terms stated herein, which is absolute and unconditional, to
receive payment of the principal of, premium, if any, and (subject to Section
309) interest on such Security on the respective Stated Maturities expressed in
such Security (or, in the case of redemption or repurchase, on the Redemption
Date or the repurchase date) and to institute suit for the enforcement of any
such payment, and such rights shall not be impaired without the consent of such
Holder.
SECTION 509. RESTORATION OF RIGHTS AND REMEDIES.
If the Trustee or any Holder has instituted any proceeding to enforce
any right or remedy under this Indenture or any Guarantee and such proceeding
has been discontinued or abandoned for any reason, or has been determined
adversely to the Trustee or to such Holder, then and in every such case the
Company, any Guarantor, any other obligor on the Securities, the Trustee and the
Holders shall, subject to any determination in such proceeding, be restored
severally and respectively to their former positions hereunder, and thereafter
all rights and remedies of the Trustee and the Holders shall continue as though
no such proceeding had been instituted.
SECTION 510. RIGHTS AND REMEDIES CUMULATIVE.
No right or remedy herein conferred upon or reserved to the Trustee or
to the Holders is intended to be exclusive of any other right or remedy, and
every right and remedy shall, to the extent permitted by law, be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy.
SECTION 511. DELAY OR OMISSION NOT WAIVER.
No delay or omission of the Trustee or of any Holder of any Security
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article Five or by
law to the Trustee or to the Holders may be exercised from time to time, and as
often as may be deemed expedient, by the Trustee or by the Holders, as the case
may be.
SECTION 512. CONTROL BY HOLDERS.
The Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities shall have the right to direct the time, method
and place of conducting any proceeding for exercising any remedy available to
the Trustee, or exercising any trust or power conferred on the Trustee, PROVIDED
that
(a) such direction shall not be in conflict with any rule of law
or with this Indenture (including, without limitation, Section 507) or any
Guarantee, expose the Trustee to personal liability, or be unduly prejudicial to
Holders not joining therein; and
81
(b) subject to the provisions of Section 315 of the Trust
Indenture Act, the Trustee may take any other action deemed proper by the
Trustee which is not inconsistent with such direction.
SECTION 513. WAIVER OF PAST DEFAULTS.
The Holders of not less than a majority in aggregate principal amount
of the Outstanding Securities may on behalf of the Holders of all Outstanding
Securities waive any past Default hereunder and its consequences, except:
(a) an uncured Default in the payment of the principal of,
premium, if any, or interest on any Security (which may only be waived with the
consent of each Holder of Securities effected); or
(b) a Default in respect of a covenant or a provision hereof
which under this Indenture cannot be modified or amended without the consent of
the Holder of each Outstanding Security affected by such modification or
amendment.
Upon any such waiver, such Default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.
SECTION 514. UNDERTAKING FOR COSTS.
All parties to this Indenture agree, and each Holder of any Security
by his acceptance thereof shall be deemed to have agreed, that any court may in
its discretion require, in any suit for the enforcement of any right or remedy
under this Indenture, or in any suit against the Trustee for any action taken,
suffered or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in
its discretion 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 such party litigant, but the
provisions of this Section 514 shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Holder, or group of Holders, holding in
the aggregate more than 10% in principal amount of the Outstanding Securities,
or to any suit instituted by any Holder for the enforcement of the payment of
the principal of, premium, if any, or interest on, any Security on or after the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on or after the Redemption Date).
SECTION 515. WAIVER OF STAY, EXTENSION OR USURY LAWS.
Each of the Company and the Guarantors covenants (to the extent that
it may lawfully do so) that it will not at any time insist upon, or plead, or in
any manner whatsoever claim or take the benefit or advantage of, any stay or
extension law or any usury or other law wherever enacted, now or at any time
hereafter in force, which would prohibit or forgive the Company or any Guarantor
from paying all or any portion of the principal of, premium, if any, or interest
on the Securities contemplated herein or in the Securities or which may affect
the covenants or the performance of this Indenture; and each of the Company and
the Guarantors (to the extent that it may lawfully do so) hereby expressly
waives all benefit or advantage of any such law, and covenants that it will not
hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.
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SECTION 516. REMEDIES SUBJECT TO APPLICABLE LAW.
All rights, remedies and powers provided by this Article Five may be
exercised only to the extent that the exercise thereof does not violate any
applicable provision of law in the premises, and all the provisions of this
Indenture are intended to be subject to all applicable mandatory provisions of
law which may be controlling in the premises and to be limited to the extent
necessary so that they will not render this Indenture invalid, unenforceable or
not entitled to be recorded, registered or filed under the provisions of any
applicable law.
ARTICLE SIX
THE TRUSTEE
SECTION 601. DUTIES OF TRUSTEE.
Subject to the provisions of Trust Indenture Act Sections 315(a)
through 315(d):
(a) if a Default actually known to a Responsible Officer of the
Trustee or an Event of Default actually known to a Responsible Officer of the
Trustee has occurred and is continuing, the Trustee shall exercise such of the
rights and powers vested in it by this Indenture and use the same degree of care
and skill in its exercise thereof as a prudent person would exercise or use
under the circumstances in the conduct of his own affairs;
(b) except during the continuance of a Default actually known to
a Responsible Officer of the Trustee or an Event of Default actually known to a
Responsible Officer of the Trustee:
(1) the Trustee undertakes to perform only those duties as
are specifically set forth in this Indenture and no implied covenants or
obligations shall be read into this Indenture against the Trustee; and
(2) in the absence of bad faith or willful misconduct 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);
(c) the Trustee may not be relieved from liability for its own
grossly negligent action, its own grossly negligent failure to act, or its
own willful misconduct, except that:
(1) this subsection (c) does not limit the effect of
subsection (b) of this Section 601;
(2) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is proved
that the Trustee was grossly negligent in ascertaining the pertinent facts;
and
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(3) the Trustee shall not be liable with respect to any
action it takes or omits to take in good faith, in accordance with a
direction of the Holders of a majority in principal amount of Outstanding
Securities 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;
(d) no provision of this Indenture shall require the Trustee to
expend or risk its own funds or otherwise incur any financial liability in the
performance of any of its duties hereunder or in the exercise of any of its
rights or powers if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured to it;
(e) whether or not therein expressly so provided, every provision
of this Indenture that in any way relates to the Trustee is subject to
subsections (a), (b), (c) and (d) of this Section 601; and
(f) the Trustee shall not be liable for interest on any money or
assets received by it. Assets held in trust by the Trustee need not be
segregated from other assets except to the extent required by law.
SECTION 602. NOTICE OF DEFAULTS.
Within 30 days after a Responsible Officer of the Trustee receives
written notice of the occurrence of any Default, the Trustee shall transmit by
mail to all Holders and any other Persons entitled to receive reports pursuant
to Section 313(c) of the Trust Indenture Act, as their names and addresses
appear in the Security Register, notice of such Default hereunder known to the
Trustee, unless such Default shall have been cured or waived; PROVIDED, HOWEVER,
that, except in the case of a Default in the payment of the principal of,
premium, if any, or interest on any Security, the Trustee shall be protected in
withholding such notice if and so long as a trust committee of Responsible
Officers of the Trustee in good faith determines that the withholding of such
notice is in the interest of the Holders.
SECTION 603. CERTAIN RIGHTS OF TRUSTEE.
Subject to the provisions of Section 601 hereof and Trust Indenture
Act Sections 315(a) through 315(d):
(a) the Trustee may conclusively rely and shall be protected in
acting or refraining from acting upon receipt by it of 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
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) the Trustee may consult with counsel of its selection and the
advice of such counsel and any opinion of counsel shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon;
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(d) the Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders pursuant to this Indenture, unless such Holders shall have
offered to the Trustee security or indemnity satisfactory to the Trustee against
the costs, expenses and liabilities which might be incurred therein or thereby
in compliance with such request or direction;
(e) the Trustee shall not be liable for any action taken or
omitted by it in good faith and believed by it to be authorized or within the
discretion, rights or powers conferred upon it by this Indenture other than any
liabilities arising out of the gross negligence, bad faith or willful misconduct
of the Trustee;
(f) 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,
approval, appraisal, bond, debenture, note, coupon, security 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 deem fit, and, if the Trustee
shall determine to make such further inquiry or investigation, it shall be
entitled to examine the books, records and premises of the Company, personally
or by agent or attorney at the cost of the Company and the Trustee shall incur
no liability by reason of such investigation;
(g) the Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder 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;
(h) whenever in the administration of this Indenture the Trustee
shall deem it desirable that a matter be proved or established prior to taking,
suffering or omitting any action hereunder, the Trustee (unless other evidence
be herein specifically prescribed) may, in the absence of bad faith on its part,
conclusively rely upon an Officers' Certificate;
(i) the Trustee shall not be liable for any action taken,
suffered, or omitted to be taken by it in good faith and reasonably believed by
it to be authorized or within the discretion or rights or powers conferred upon
it by this Indenture;
(j) in no event shall the Trustee be responsible or liable for
special, indirect, or consequential loss or damage of any kind whatsoever
(including, but not limited to, loss of profit) irrespective of whether the
Trustee has been advised of the likelihood of such loss or damage and regardless
of the form of action;
(k) the Trustee shall not be deemed to have notice of any Default
or Event of Default unless a Responsible Officer of the Trustee has actual
knowledge thereof or unless written notice of any event which is in fact such a
default is received by the Trustee at the Corporate Trust Office of the Trustee,
and such notice references the Securities and this Indenture;
(l) 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, and each Paying Agent, Security Registrar, agent,
custodian and other Person employed to act hereunder;
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(m) 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,
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; and
(n) before the Trustee acts or refrains from acting, it may
require an Officer's Certificate or an Opinion of Independent Counsel, or both.
The Trustee shall not be liable for any action it takes or omits to take in good
faith reliance on the Officer's Certificate or Opinion of Independent Counsel.
SECTION 604. TRUSTEE NOT RESPONSIBLE FOR RECITALS, DISPOSITIONS OF
SECURITIES OR APPLICATION OF PROCEEDS THEREOF.
The recitals contained herein and in the Securities, except the
Trustee's certificates of authentication, shall be taken as the statements of
the Company and the Guarantors, and the Trustee assumes no responsibility for
their correctness. The Trustee makes no representations as to the validity or
sufficiency of this Indenture or of the Securities, except that the Trustee
represents that it is duly authorized to execute and deliver this Indenture,
authenticate the Securities and perform its obligations hereunder and that the
statements made by it in any Statement of Eligibility and Qualification on Form
T-1 to be supplied to the Company will be true and accurate subject to the
qualifications set forth therein. The Trustee shall not be accountable for the
use or application by the Company of Securities or the proceeds thereof.
SECTION 605. TRUSTEE AND AGENTS MAY HOLD SECURITIES; COLLECTIONS; ETC.
The Trustee, any Paying Agent, Security Registrar or any other agent
of the Company, in its individual or any other capacity, may become the owner or
pledgee of Securities, with the same rights it would have if it were not the
Trustee, Paying Agent, Security Registrar or such other agent and, subject to
Trust Indenture Act Sections 310 and 311, may otherwise deal with the Company
and receive, collect, hold and retain collections from the Company with the same
rights it would have if it were not the Trustee, Paying Agent, Security
Registrar or such other agent.
SECTION 606. MONEY HELD IN TRUST.
All moneys received by the Trustee shall, until used or applied as
herein provided, be held in trust for the purposes for which they were received,
but need not be segregated from other funds except to the extent required by
mandatory provisions of law.
SECTION 607. COMPENSATION AND INDEMNIFICATION OF TRUSTEE AND ITS PRIOR
CLAIM.
(a) The Company covenants and agrees to pay to the Trustee from
time to time, and the Trustee shall be entitled to, reasonable compensation for
all services rendered by it hereunder (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an express
trust) and the Company covenants and agrees to pay or reimburse the Trustee and
each predecessor Trustee upon its request for all reasonable expenses,
disbursements and advances incurred or made by or on behalf of the Trustee in
accordance with any of the provisions of this Indenture (including the
reasonable compensation and the expenses and disbursements of its counsel and of
all agents and other persons not regularly in its employ) except any such
expense, disbursement
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or advance as may arise from its gross negligence, bad faith or willful
misconduct. The Company and the Guarantors jointly and severally also covenant
and agree to indemnify the Trustee and each predecessor Trustee for, and to hold
it harmless against, any claim, loss, liability, tax, assessment, governmental
charge (other than taxes applicable to the Trustee's compensation hereunder) or
expense incurred without gross negligence, bad faith or willful misconduct on
its part, arising out of or in connection with the acceptance or administration
of this Indenture or the trusts hereunder and its duties hereunder, including
the costs of enforcement of this Section 607 and the costs and expenses of
defending itself against or investigating any claim or liability in connection
with the exercise or performance of any of its powers or duties hereunder
(including the reasonable fees and expenses of its counsel). The provisions of
this Section 607 shall survive the satisfaction and discharge of this Indenture
and the resignation or removal of the Trustee and each predecessor Trustee.
(b) The Trustee shall have a lien prior to the Securities as to
all property and funds held by it hereunder for any amount owing it or any
predecessor Trustee pursuant to this Section 607, except with respect to funds
held in trust for the benefit of the Holders of particular Securities.
(c) When the Trustee incurs expenses or renders services in
connection with an Event of Default specified in Section 501(7) or Section
501(8), 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,
insolvency or other similar law.
SECTION 608. CONFLICTING INTERESTS.
The Trustee shall comply with the provisions of Section 310(b) of the
Trust Indenture Act.
SECTION 609. TRUSTEE ELIGIBILITY.
There shall at all times be a Trustee hereunder which shall be
eligible to act as trustee under Trust Indenture Act Section 310(a) and which
shall have a combined capital and surplus of at least $250,000,000, to the
extent there is an institution eligible and willing to serve. If such Trustee
publishes reports of condition at least annually, pursuant to law or to the
requirements of federal, state, territorial or District of Columbia supervising
or examining authority, then for the purposes of this Section 609, the combined
capital and surplus of such corporation shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so
published. If at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section 609, the Trustee shall resign promptly in
the manner and with the effect hereinafter specified in this Article Six.
SECTION 610. RESIGNATION AND REMOVAL; APPOINTMENT OF SUCCESSOR TRUSTEE.
(a) No resignation or removal of the Trustee and no appointment
of a successor trustee pursuant to this Article Six shall become effective until
the acceptance of appointment by the successor trustee under Section 611.
(b) The Trustee, or any trustee or trustees hereafter appointed,
may at any time resign by giving written notice thereof to the Company no later
than 20 Business Days prior to the proposed date of resignation. Upon receiving
such notice of resignation, the Company shall promptly appoint a successor
trustee by written instrument executed by authority of the Board of Directors of
the
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Company, a copy of which shall be delivered to the resigning Trustee and a copy
to the successor trustee. 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, the resigning Trustee may, or any Holder who has
been a BONA FIDE Holder of a Security for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent
jurisdiction at the expense of the Company for the appointment of a successor
trustee. Such court may thereupon, after such notice, if any, as it may deem
proper, appoint and prescribe a successor trustee.
(c) The Trustee may be removed at any time for any cause or for
no cause by an Act of the Holders of not less than a majority in aggregate
principal amount of the Outstanding Securities, delivered to the Trustee and to
the Company.
(d) If at any time:
(1) the Trustee shall fail to comply with the provisions
of Trust Indenture Act Section 310(b) after written request therefor by the
Company or by any Holder who has been a BONA FIDE Holder of a Security for
at least six months,
(2) the Trustee shall cease to be eligible under Section
609 and shall fail to resign after written request therefor by the Company
or by any Holder who has been a BONA FIDE Holder of a Security for at least
six months, or
(3) the Trustee shall become incapable of acting or shall
be adjudged a 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 case, (i) the Company by a Board Resolution may remove the Trustee,
or (ii) subject to Section 514, the Holder of any Security who has been a BONA
FIDE Holder of a Security 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. Such
court may thereupon, after such notice, if any, as it may deem proper and
prescribe, remove the Trustee and appoint a successor trustee.
(e) 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
and shall comply with the applicable requirements of Section 611. If, within 30
days after such resignation, removal or incapability, or the occurrence of such
vacancy, the Company has not appointed a successor trustee, a successor trustee
shall be appointed by the Act of the Holders of a majority in principal amount
of the Outstanding Securities delivered to the Company and the retiring Trustee.
Such successor trustee so appointed shall forthwith upon its acceptance of such
appointment become the successor trustee and supersede the successor trustee
appointed by the Company. If no successor trustee shall have been so appointed
by the Company or the Holders of the Securities and accepted appointment in the
manner hereinafter provided, the Trustee or the Holder of any Security who has
been a BONA FIDE Holder for at least six months may, subject to Section 514, on
behalf of himself and all others similarly situated, petition any court of
competent jurisdiction at the expense of the Company for the appointment of a
successor trustee.
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(f) The Company shall give notice of each resignation and each
removal of the Trustee and each appointment of a successor trustee by mailing
written notice of such event by first-class mail, postage prepaid, to the
Holders of Securities as their names and addresses appear in the Security
Register. Each notice shall include the name of the successor trustee and the
address of its Corporate Trust Office or agent hereunder.
SECTION 611. 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 as if originally named as Trustee hereunder;
but, nevertheless, on the written request of the Company or the successor
trustee, upon payment of its charges pursuant to Section 607 then unpaid, such
retiring Trustee shall pay over to the successor trustee all moneys at the time
held by it hereunder and shall execute and deliver an instrument transferring to
such successor trustee all such rights, powers, duties and obligations. 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 and powers.
No successor trustee with respect to the Securities shall accept
appointment as provided in this Section 611 unless at the time of such
acceptance such successor trustee shall be eligible to act as trustee under the
provisions of Trust Indenture Act Section 310(a) and this Article Six and shall
have a combined capital and surplus of at least $250,000,000 and have a
Corporate Trust Office or an agent selected in accordance with Section 609.
Upon acceptance of appointment by any successor trustee as provided in
this Section 611, the Company shall give notice thereof to the Holders of the
Securities, by mailing such notice to such Holders at their addresses as they
shall appear on the Security Register. If the acceptance of appointment is
substantially contemporaneous with the appointment, then the notice called for
by the preceding sentence may be combined with the notice called for by Section
610. If the Company fails to give such notice within 10 days after acceptance of
appointment by the successor trustee, the successor trustee shall cause such
notice to be given at the expense of the Company.
SECTION 612. MERGER, CONVERSION, CONSOLIDATION OR SUCCESSION TO BUSINESS.
Any corporation into which the Trustee may be merged or converted or
with which it may be consolidated, or any corporation resulting from any merger,
conversion or consolidation to which the Trustee shall be a party, or any
corporation succeeding to all or substantially all of the corporate trust
business of the Trustee (including the trust created by this Indenture) shall be
the successor of the Trustee hereunder, PROVIDED that such corporation shall be
eligible under Trust Indenture Act Section 310(a) and this Article Six and shall
have a combined capital and surplus of at least $250,000,000 and have a
Corporate Trust Office or an agent selected in accordance with Section 609,
without the execution or filing of any paper or any further act on the part of
any of the parties hereto.
In case at the time such successor to the Trustee shall succeed to the
trusts created by this Indenture any of the Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the
certificate of authentication of any predecessor Trustee and deliver such
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Securities so authenticated; and, in case at that time any of the Securities
shall not have been authenticated, any successor to the Trustee may authenticate
such Securities either in the name of any predecessor hereunder or in the name
of the successor trustee; and in all such cases such certificate shall have the
full force which it is anywhere in the Securities or in this Indenture provided
that the certificate of the Trustee shall have; PROVIDED that the right to adopt
the certificate of authentication of any predecessor Trustee or to authenticate
Securities in the name of any predecessor Trustee shall apply only to its
successor or successors by merger, conversion or consolidation.
SECTION 613. PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.
If and when the Trustee shall be or become a creditor of the Company
(or other obligor under the Securities), the Trustee shall be subject to the
provisions of the Trust Indenture Act regarding the collection of claims against
the Company (or any such other obligor). A Trustee who has resigned or been
removed shall be subject to Trust Indenture Act Section 311(a) to the extent
indicated therein.
SECTION 614. CO-TRUSTEE
It is the purpose of this Indenture that there shall be no violation
of any law of any jurisdiction 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 the Agreement, and in particular in case of the enforcement thereof on
default, or in the 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 granted to the Trustee or hold title to the properties, in
trust, as herein granted or take any action which may be desirable or necessary
in connection therewith, it may be necessary that the Trustee appoint an
individual or institution as a separate or co-trustee meeting the requirements
of the Indenture. The following provisions of this Section 613 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 vest 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 only to
the extent that the Trustee by the laws of any jurisdiction is incapable of
exercising 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 either of them.
Should any instrument in writing from the Company be required by the
separate 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 at the expense
of the Company; provided, that if an Event of Default shall have occurred and be
continuing, if the Company does not execute any such instrument within fifteen
(15) days after request therefor, the Trustee shall be empowered as an
attorney-in-fact for the Company to execute any such instrument in the Company's
name and stead. In case any separate 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 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 or
co-trustee.
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ARTICLE SEVEN
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY
SECTION 701. COMPANY TO FURNISH TRUSTEE NAMES AND ADDRESSES OF HOLDERS.
The Company will furnish or cause to be furnished to the Trustee:
(a) semiannually, not more than 10 days after each Regular Record
Date, a list, in such form as the Trustee may reasonably require, of the names
and addresses of the Holders as of such Regular Record Date; and
(b) at such other times as the Trustee may reasonably request in
writing, within 30 days after receipt by the Company of any such request, a list
of similar form and content to that in subsection (a) hereof as of a date not
more than 15 days prior to the time such list is furnished;
PROVIDED, HOWEVER, that if and so long as the Trustee shall be the Security
Registrar, no such list need be furnished.
SECTION 702. DISCLOSURE OF NAMES AND ADDRESSES OF HOLDERS.
Holders may communicate pursuant to Trust Indenture Act Section 312(b)
with other Holders with respect to their rights under this Indenture or the
Securities, and the Trustee shall comply with Trust Indenture Act Section
312(b). The Company, the Guarantors, the Trustee, the Security Registrar and any
other Person shall have the protection of Trust Indenture Act Section 312(c).
Further, every Holder of Securities, by receiving and holding the same, agrees
with the Company and the Trustee that none of the Company, the Guarantors, the
Trustee or any agent of any of them shall be held accountable by reason of the
disclosure of any information as to the names and addresses of the Holders in
accordance with Trust Indenture Act Section 312, regardless of the source from
which such information was derived, and that the Trustee shall not be held
accountable by reason of mailing any material pursuant to a request made under
Trust Indenture Act Section 312.
SECTION 703. REPORTS BY TRUSTEE.
(a) Within 60 days after July 15 of each year commencing with the
first July 15 after the issuance of Securities, the Trustee, if so required
under the Trust Indenture Act, shall transmit by mail to all Holders, in the
manner and to the extent provided in Trust Indenture Act Section 313(c), a brief
report dated as of such July 15 in accordance with and with respect to the
matters required by Trust Indenture Act Section 313(a). The Trustee shall also
transmit by mail to all Holders, in the manner and to the extent provided in
Trust Indenture Act Section 313(c), a brief report in accordance with and with
respect to the matters required by Trust Indenture Act Section 313(b)(2).
(b) A copy of each report transmitted to Holders pursuant to this
Section 703 shall, at the time of such transmission, be mailed to the Company
and filed with each stock exchange, if any, upon which the Securities are listed
and also with the Commission. The Company will notify the Trustee promptly if
the Securities are listed on any stock exchange.
SECTION 704. REPORTS BY COMPANY AND GUARANTORS.
The Company, and each Guarantor, as the case may be, shall:
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(a) file with the Trustee any information required by the Trust
Indenture Act; and
(b) within 15 days after the filing thereof with the Trustee,
transmit by mail to all Holders in the manner and to the extent provided in
Trust Indenture Act Section 313(c), such summaries of any information, documents
and reports required to be filed by the Company or any Guarantor, as the case
may be, pursuant to Section 1019 hereunder and subsection (a) of this Section as
are required by rules and regulations prescribed from time to time by the
Commission.
ARTICLE EIGHT
CONSOLIDATION, MERGER, SALE OF ASSETS
SECTION 801. COMPANY AND GUARANTORS MAY CONSOLIDATE, ETC., ONLY ON CERTAIN
TERMS.
(a) The Company will not, in a single transaction or through a
series of related transactions, consolidate with or merge with or into any other
Person or sell, assign, convey, transfer, lease or otherwise dispose of all or
substantially all of its properties and assets to any Person or group of
Persons, or permit any of its Restricted Subsidiaries to enter into any such
transaction or series of transactions, if such transaction or series of
transactions, in the aggregate, would result in a sale, assignment, conveyance,
transfer, lease or disposition of all or substantially all of the properties and
assets of the Company and its Restricted Subsidiaries on a Consolidated basis to
any other Person or group of Persons (other than the Company or a Guarantor),
unless at the time and after giving effect thereto:
(1) either (a) the Company will be the continuing
corporation or (b) the Person (if other than the Company) formed by such
consolidation or into which the Company is merged or the Person which
acquires by sale, assignment, conveyance, transfer, lease or disposition
all or substantially all of the properties and assets of the Company and
its Restricted Subsidiaries on a Consolidated basis (the "Surviving
Entity") will be a corporation or limited liability company (with a
corporate co-obligor) duly organized and validly existing under the laws of
the United States of America or any state thereof or the District of
Columbia or the laws of Canada or any province or territory thereof and
such Person expressly assumes, by a supplemental indenture, in a form
reasonably satisfactory to the Trustee, all the obligations of the Company
under the Securities and this Indenture and the Registration Rights
Agreement, as the case may be, and the Securities and this Indenture and
the Registration Rights Agreement will remain in full force and effect as
so supplemented (and any Guarantees will be confirmed as applying to such
Surviving Entity's obligations);
(2) immediately before and immediately after giving effect
to such transaction on a PRO FORMA basis (and treating any Indebtedness not
previously an obligation of the Company or any of its Restricted
Subsidiaries which becomes the obligation of the Company or any of its
Restricted Subsidiaries as a result of such transaction as having been
incurred at the time of such transaction), no Default or Event of Default
will have occurred and be continuing;
(3) immediately before and immediately after giving effect
to such transaction on a PRO FORMA basis (on the assumption that the
transaction occurred on the first day of the four-quarter period for which
financial statements are available ending immediately prior to the
consummation of such transaction with the appropriate adjustments with
respect to
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the transaction being included in such PRO FORMA calculation), (a) the
Company (or the Surviving Entity if the Company is not the continuing
obligor under this Indenture) could incur $1.00 of additional Indebtedness
(other than Permitted Indebtedness) pursuant to paragraph (a) of Section
1008 hereof; or (b) the Company's Consolidated Fixed Charge Coverage Ratio
on such a PRO FORMA basis would be greater than the Company's Fixed Charge
Coverage Ratio without giving such PRO FORMA effect to the transaction;
(4) at the time of the transaction, each Guarantor, if
any, unless it is the other party to the transactions described above, will
have by supplemental indenture confirmed that its Guarantee shall apply to
such Person's obligations under this Indenture and the Securities;
(5) at the time of the transaction, if any of the property
or assets of the Company or any of its Restricted Subsidiaries would
thereupon become subject to any Lien, the provisions of Section 1011 hereof
are complied with; and
(6) at the time of the transaction, the Company or the
Surviving Entity will have delivered, or caused to be delivered, to the
Trustee, in form and substance reasonably satisfactory to the Trustee, an
Officers' Certificate and an Opinion of Counsel, each to the effect that
such consolidation, merger, transfer, sale, assignment, conveyance,
transfer, lease or other transaction and the supplemental indenture in
respect thereof comply with this Indenture and that all conditions
precedent therein provided for relating to such transaction have been
complied with.
(b) Each Guarantor will not, and the Company will not permit a
Guarantor to, in a single transaction or through a series of related
transactions, (x) consolidate with or merge with or into any other Person (other
than the Company or any Guarantor or for the sole purpose of reincorporating in
another jurisdiction) or (y) sell, assign, convey, transfer, lease or otherwise
dispose of all or substantially all of its properties and assets to any Person
or group of Persons (other than the Company or any Guarantor) or permit any of
its Restricted Subsidiaries to enter into any such transaction or series of
transactions if such transaction or series of transactions, in the aggregate,
that would result in a sale, assignment, conveyance, transfer, lease or
disposition of all or substantially all of the properties and assets of the
Company and its Restricted Subsidiaries on a Consolidated basis to any other
Person or group of Persons (other than the Company or any Guarantor), unless at
the time and after giving effect thereto:
(1) either (a) the Guarantor will be the continuing
corporation in the case of a consolidation or merger involving the
Guarantor or (b) the Person (if other than the Guarantor) formed by such
consolidation or into which such Guarantor is merged or the Person which
acquires by sale, assignment, conveyance, transfer, lease or disposition
all or substantially all of the properties and assets of the Company and
its Restricted Subsidiaries on a Consolidated basis (the "Surviving
Guarantor Entity") will be a corporation, limited liability company,
limited liability partnership, partnership or trust duly organized and
validly existing under the laws of the United States of America or any
state thereof or the District of Columbia or the laws of Canada or any
province or territory thereof and such Person expressly assumes, by a
supplemental indenture, in a form reasonably satisfactory to the Trustee,
all the obligations of such Guarantor under its Guarantee of the Securities
and this Indenture and the Registration Rights Agreement and such
Guarantee, Indenture and Registration Rights Agreement will remain in full
force and effect;
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(2) immediately before and immediately after giving effect
to such transaction on a PRO FORMA basis, no Default or Event of Default
will have occurred and be continuing; and
(3) at the time of the transaction such Guarantor or the
Surviving Guarantor Entity will have delivered, or caused to be delivered,
to the Trustee, in form and substance reasonably satisfactory to the
Trustee, an Officers' Certificate and an Opinion of Counsel, each to the
effect that such consolidation, merger, transfer, sale, assignment,
conveyance, lease or other transaction and the supplemental indenture in
respect thereof comply with this Indenture and that all conditions
precedent therein provided for relating to such transaction have been
complied with; PROVIDED, HOWEVER, that this paragraph shall not apply to
any Guarantor whose Guarantee of the Securities is unconditionally released
and discharged in accordance with paragraph (b) of Section 1013 hereof.
SECTION 802. SUCCESSOR SUBSTITUTED.
In the event of any transaction (other than a lease) described in and
complying with the conditions listed in Section 801 in which the Company or any
Guarantor, as the case may be, is not the continuing corporation, the successor
Person formed or remaining or to which such transfer is made shall succeed to,
and be substituted for, and may exercise every right and power of, the Company
or such Guarantor, as the case may be, and the Company or any Guarantor, as the
case may be, would be discharged from all obligations and covenants under this
Indenture and the Securities or its Guarantee, as the case may be, and the
Registration Rights Agreement.
ARTICLE NINE
SUPPLEMENTAL INDENTURES
SECTION 901. SUPPLEMENTAL INDENTURES AND AGREEMENTS WITHOUT CONSENT OF
HOLDERS.
Without the consent of any Holders, the Company, the Guarantors, if
any, and any other obligor under the Securities when authorized by or pursuant
to a Board Resolution, and the Trustee, at any time and from time to time, may
enter into one or more indentures supplemental hereto or agreements or other
instruments with respect to this Indenture, the Securities or any Guarantee, in
form and substance satisfactory to the Trustee, for any of the following
purposes:
(a) to evidence the succession of another Person to the Company
or a Guarantor, and the assumption by any such successor of the covenants of the
Company or such Guarantor herein and in the Securities and in any Guarantee in
accordance with Article Eight;
(b) to add to the covenants of the Company, any Guarantor or any
other obligor upon the Securities for the benefit of the Holders, or to
surrender any right or power conferred upon the Company or any Guarantor or any
other obligor upon the Securities, as applicable, herein, in the Securities or
in any Guarantee;
(c) (a) to cure any ambiguity, or to correct or supplement any
provision herein, the Securities or any Guarantee which may be defective or
inconsistent with any other provision herein, in the Securities or any Guarantee
or (b) make any other changes herein with respect to matters or questions
arising under this Indenture, the Securities or the Guarantees; PROVIDED that,
in the case of
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clause (b), such provisions shall not adversely affect the interest of the
Holders in any material respect, as evidenced by an Opinion of Counsel;
(d) to comply with the requirements of the Commission in order to
effect or maintain the qualification of this Indenture under the Trust Indenture
Act, as contemplated by Section 905 or otherwise;
(e) to add a Guarantor pursuant to the requirements of Section
1013 hereof or otherwise or release a Guarantee in accordance with this
Indenture;
(f) to evidence and provide the acceptance of the appointment of
a successor trustee hereunder;
(g) to mortgage, pledge, hypothecate or grant a security interest
in favor of the Trustee for the benefit of the Holders as additional security
for the payment and performance of the Company's and any Guarantor's Indenture
Obligations, in any property, or assets, including any of which are required to
be mortgaged, pledged or hypothecated, or in which a security interest is
required to be granted to the Trustee pursuant to this Indenture or otherwise;
(h) to make any change in order to conform this Indenture to the
description of the Securities contained in "Description of Notes - Senior Notes"
in the Offering Memorandum; or
(i) to make any change to comply with Section 3(l) of the
purchase agreement related to the sale of the Securities.
SECTION 902. SUPPLEMENTAL INDENTURES AND AGREEMENTS WITH CONSENT OF
HOLDERS.
Except as permitted by Section 901, with the consent of the Holders of
at least a majority in aggregate principal amount of the Outstanding Securities
(including consents obtained in connection with a tender offer or exchange offer
for Securities), by Act of said Holders delivered to the Company, each
Guarantor, if any, and the Trustee, the Company and each Guarantor (if a party
thereto) when authorized by or pursuant to Board Resolutions, and the Trustee
may (i) enter into an indenture or indentures supplemental hereto or agreements
or other instruments with respect to any Guarantee in form and substance
satisfactory to the Trustee, for the purpose of adding any provisions to or
amending, modifying or changing in any manner or eliminating any of the
provisions of this Indenture, the Securities or any Guarantee (including but not
limited to, for the purpose of modifying in any manner the rights of the Holders
under this Indenture, the Securities or any Guarantee) or (ii) waive compliance
with any provision in this Indenture, the Securities or any Guarantee (other
than waivers of past Defaults which are covered by Section 513 and waivers of
covenants which are covered by Section 1007); PROVIDED, HOWEVER, that no such
supplemental indenture, agreement or instrument shall, without the consent of
the Holder of each Outstanding Security affected thereby:
(a) change the Stated Maturity of the principal of, or any
installment of interest on, or change to an earlier date any Redemption Date of,
or waive a default in the payment of the principal of, premium, if any, or
interest on, any such Security or reduce the principal amount thereof or the
rate of interest thereon or any premium payable upon the redemption thereof, or
change the coin or currency in which the principal of any such Security or any
premium or the interest thereon is payable, or impair the right to institute
suit for the enforcement of any such payment after the Stated Maturity thereof
(or, in the case of redemption, on or after the Redemption Date);
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(b) reduce the percentage in principal amount of such Outstanding
Securities, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver or
compliance with certain provisions of this Indenture;
(c) modify any of the provisions of this Section 902 or Section
513 or 1007, except to increase the percentage of such Outstanding Securities
required for such actions or to provide that certain other provisions of this
Indenture cannot be modified or waived without the consent of the Holder of each
such Security affected thereby; or
(d) except as otherwise permitted under Article Eight of this
Indenture, consent to the assignment or transfer by the Company or any Guarantor
of its rights and obligations under this Indenture.
Upon the written request of the Company and each Guarantor, if any,
accompanied by a copy of Board Resolutions authorizing the execution of any such
supplemental indenture or Guarantee, and upon the filing with the Trustee of
evidence of the consent of Holders as aforesaid, subject to Section 903, the
Trustee shall join with the Company and each Guarantor in the execution of such
supplemental indenture or Guarantee.
It shall not be necessary for any Act of Holders under this Section
902 to approve the particular form of any proposed supplemental indenture or
Guarantee or agreement or instrument relating to any Guarantee, but it shall be
sufficient if such Act shall approve the substance thereof.
SECTION 903. EXECUTION OF SUPPLEMENTAL INDENTURES AND AGREEMENTS.
In executing, or accepting the additional trusts created by, any
supplemental indenture, agreement, instrument or waiver permitted by this
Article Nine or the modifications thereby of the trusts created by this
Indenture, the Trustee shall be entitled to receive, and (subject to Trust
Indenture Act Sections 315(a) through 315(d) and Section 602 hereof) shall be
fully protected in relying upon, an Opinion of Counsel and an Officers'
Certificate stating that the execution of such supplemental indenture, agreement
or instrument (a) is authorized or permitted by this Indenture and (b) does not
violate the provisions of any agreement or instrument evidencing any other
Indebtedness of the Company, any Guarantor or any other Restricted Subsidiary.
The Trustee may, but shall not be obligated to, enter into any such supplemental
indenture, agreement or instrument which affects the Trustee's own rights,
duties or immunities under this Indenture, any Guarantee or otherwise.
SECTION 904. EFFECT OF SUPPLEMENTAL INDENTURES.
Upon the execution of any supplemental indenture under this Article
Nine, this Indenture shall be modified in accordance therewith, and such
supplemental indenture shall form a part of this Indenture for all purposes; and
every Holder of Securities theretofore or thereafter authenticated and delivered
hereunder shall be bound thereby.
SECTION 905. CONFORMITY WITH TRUST INDENTURE ACT.
Every supplemental indenture executed pursuant to this Article Nine
shall conform to the requirements of the Trust Indenture Act as then in effect.
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SECTION 906. REFERENCE IN SECURITIES TO SUPPLEMENTAL INDENTURES.
Securities authenticated and delivered after the execution of any
supplemental indenture pursuant to this Article Nine may, and shall if required
by the Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Company shall so determine,
new Securities so modified as to conform, in the opinion of the Trustee and the
Board of Directors, to any such supplemental indenture may be prepared and
executed by the Company and each Guarantor and authenticated and delivered by
the Trustee in exchange for Outstanding Securities.
SECTION 907. NOTICE OF SUPPLEMENTAL INDENTURES.
Promptly after the execution by the Company, any Guarantor and the
Trustee of any supplemental indenture pursuant to the provisions of Section 902,
the Company shall give notice thereof to the Holders of each Outstanding
Security affected, in the manner provided for in Section 106, setting forth in
general terms the substance of such supplemental indenture. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture.
SECTION 908. REVOCATION AND EFFECTS OF CONSENTS.
Until an amendment or waiver becomes effective, a consent to it by a
Holder of a Security is a continuing consent by the Holder and every subsequent
Holder of a Security or portion of a Security that evidences the same
Indebtedness as the consenting Holder's Security, even if a notation of the
consent is not made on any Security. However, any such Holder, or subsequent
Holder, may revoke the consent as to his Security or portion of a Security if
the Trustee receives the notice of revocation before the date the amendment or
waiver becomes effective. An amendment or waiver shall become effective in
accordance with its terms and thereafter bind every Holder.
ARTICLE TEN
COVENANTS
SECTION 1001. PAYMENT OF PRINCIPAL, PREMIUM AND INTEREST.
The Company shall duly and punctually pay the principal of, premium,
if any, and interest on the Securities in accordance with the terms of the
Securities and this Indenture.
SECTION 1002. MAINTENANCE OF OFFICE OR AGENCY.
The Company shall maintain an office or agency where Securities may be
presented or surrendered for payment. The Company also will maintain in The City
of New York an office or agency where Securities may be surrendered for
registration of transfer, redemption or exchange and where notices and demands
to or upon the Company in respect of the Securities and this Indenture may be
served. The Corporate Trust Office of the Trustee will be such office or agency
of the Company, unless the Company shall designate and maintain some other
office or agency for one or more of such purposes. The Company will give prompt
written notice to the Trustee of the location and any change in the location of
any such offices or agencies. If at any time the Company shall fail to maintain
any such required offices or agencies or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices and demands may be
made or served at the office of the Trustee and
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the Company hereby appoints the Trustee such agent as its agent to receive all
such presentations, surrenders, notices and demands.
The Company may from time to time designate one or more other offices
or agencies (in or outside of The City of New York) where the Securities may be
presented or surrendered for any or all such purposes, and may from time to time
rescind such designation. The Company will give prompt written notice to the
Trustee of any such designation or rescission and any change in the location of
any such office or agency.
The Company hereby appoints the Trustee to act as initial Paying Agent
for the Securities.
SECTION 1003. MONEY FOR SECURITY PAYMENTS TO BE HELD IN TRUST.
If the Company or any of its Affiliates shall at any time act as
Paying Agent, it will, on or before each due date of the principal of, premium,
if any, or interest on any of the Securities, segregate and hold in trust for
the benefit of the Holders entitled thereto a sum sufficient to pay the
principal, premium, if any, or interest so becoming due until such sums shall be
paid to such Persons or otherwise disposed of as herein provided, and will
promptly notify the Trustee of its action or failure so to act.
If the Company or any of its Affiliates is not acting as Paying Agent,
the Company will, on or before each due date of the principal of, premium, if
any, or interest on any of the Securities, deposit with a Paying Agent a sum in
same day funds sufficient to pay the principal, premium, if any, or interest so
becoming due, such sum to be held in trust for the benefit of the Persons
entitled to such principal, premium or interest, and (unless such Paying Agent
is the Trustee) the Company will promptly notify the Trustee of such action or
any failure so to act.
If the Company is not acting as Paying Agent, the Company will cause
each Paying Agent other than the Trustee to execute and deliver to the Trustee
an instrument in which such Paying Agent shall agree with the Trustee, subject
to the provisions of this Section 1003, that such Paying Agent will:
(a) hold all sums held by it for the payment of the principal of,
premium, if any, or interest on the Securities in trust for the benefit of the
Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided;
(b) give the Trustee notice of any Default by the Company or any
Guarantor (or any other obligor upon the Securities) in the making of any
payment of principal, premium, if any, or interest on the Securities;
(c) at any time during the continuance of any such Default, upon
the written request of the Trustee, forthwith pay to the Trustee all sums so
held in trust by such Paying Agent; and
(d) acknowledge, accept and agree to comply in all aspects with
the provisions of this Indenture relating to the duties, rights and liabilities
of such Paying Agent.
The Company may at any time, for the purpose of obtaining the
satisfaction and discharge of this Indenture or for any other purpose, pay, or
by Company Order direct any Paying Agent to pay, to the Trustee all sums held in
trust by the Company or such Paying Agent, such sums to
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be held by the Trustee upon the same trusts as those upon which such sums were
held by the Company or such Paying Agent; and, upon such payment by any Paying
Agent to the Trustee, such Paying Agent shall be released from all further
liability with respect to such money.
Any money deposited with the Trustee or any Paying Agent, or then held
by the Company, in trust for the payment of the principal of, premium, if any,
or interest on any Security and remaining unclaimed for two years after such
principal and premium, if any, or interest has become due and payable shall
promptly be paid to the Company on Company Request, or (if then held by the
Company) shall be discharged from such trust; and the Holder of such Security
shall thereafter, as an unsecured general creditor, look only to the Company for
payment thereof, and all liability of the Trustee or such Paying Agent with
respect to such trust money, and all liability of the Company as trustee
thereof, shall thereupon cease; PROVIDED, HOWEVER, that the Trustee or such
Paying Agent, before being required to make any such repayment, may at the
expense of the Company cause to be published once, in THE NEW YORK TIMES and THE
WALL STREET JOURNAL (national edition), and mail to each such Holder, notice
that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such notification,
publication and mailing, any unclaimed balance of such money then remaining will
promptly be repaid to the Company.
SECTION 1004. CORPORATE EXISTENCE.
Subject to Article Eight, the Company shall do or cause to be done all
things necessary to preserve and keep in full force and effect the corporate
existence and related rights and franchises (charter and statutory) of the
Company and each Restricted Subsidiary; PROVIDED, HOWEVER, that the Company
shall not be required to preserve any such right or franchise or the corporate
existence of any such Restricted Subsidiary if the Board of Directors of the
Company shall determine that the preservation thereof is no longer necessary or
desirable in the conduct of the business of the Company and its Restricted
Subsidiaries as a whole and that the loss thereof would not reasonably be
expected to have a material adverse effect on the ability of the Company to
perform its obligations hereunder; and PROVIDED, FURTHER, HOWEVER, that the
foregoing shall not prohibit a sale, transfer or conveyance of a Restricted
Subsidiary or any of its assets in compliance with the terms of this Indenture.
SECTION 1005. PAYMENT OF TAXES AND OTHER CLAIMS.
The Company shall pay or discharge or cause to be paid or discharged,
on or before the date the same shall become due and payable, (a) all taxes,
assessments and governmental charges levied or imposed upon the Company or any
of its Restricted Subsidiaries shown to be due on any return of the Company or
any of its Restricted Subsidiaries or otherwise assessed or upon the income,
profits or property of the Company or any of its Restricted Subsidiaries if
failure to pay or discharge the same could reasonably be expected to have a
material adverse effect on the ability of the Company or any Guarantor to
perform its obligations hereunder and (b) all lawful claims for labor, materials
and supplies, which, if unpaid, would by law become a Lien upon the property of
the Company or any of its Restricted Subsidiaries, except for any Lien permitted
to be incurred under Section 1011, if failure to pay or discharge the same could
reasonably be expected to have a material adverse effect on the ability of the
Company or any Guarantor to perform its obligations hereunder; PROVIDED,
HOWEVER, that the Company shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim whose amount,
applicability or validity is being contested in good faith by appropriate
proceedings properly instituted and diligently conducted and in respect of which
appropriate reserves (in the good faith judgment of management of the Company)
are being maintained in accordance with GAAP.
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SECTION 1006. MAINTENANCE OF PROPERTIES.
(a) The Company shall cause all material properties owned by the
Company and its Restricted Subsidiaries or used or held for use in the conduct
of its business or the business of any of its Restricted Subsidiaries to be
maintained and kept in good condition, repair and working order (ordinary wear
and tear excepted) and supplied with all necessary equipment and will cause to
be made all necessary repairs, renewals, replacements, betterments and
improvements thereof, all as in the reasonable judgment of the Company may be
appropriate and necessary so that the business carried on in connection
therewith may be properly conducted at all times; PROVIDED, HOWEVER, that
nothing in this Section 1006 shall prevent the Company from discontinuing the
maintenance of any of such properties if such discontinuance is in the ordinary
course of business or, in the reasonable judgment of the Company, desirable in
the conduct of its business or the business of any of its Restricted
Subsidiaries and not reasonably expected to have a material adverse effect on
the ability of the Company to perform its obligations hereunder; and PROVIDED,
FURTHER, HOWEVER, that the foregoing shall not prohibit a sale, transfer or
conveyance of a Restricted Subsidiary or any of its properties or assets in
compliance with the terms of this Indenture.
(b) The Company shall at all times keep all of its and its
Restricted Subsidiaries' properties which are of an insurable nature insured
with insurers, believed by the Company in good faith to be financially sound and
responsible, against loss or damage to the extent that property of similar
character is usually so insured by corporations similarly situated and owning
like properties in the same general geographic areas in which the Company and
its Restricted Subsidiaries operate, except where the failure to do so could not
reasonably be expected to have a material adverse effect on the condition
(financial or otherwise), earnings, business affairs or prospects of the Company
and its Restricted Subsidiaries, taken as a whole.
SECTION 1007. WAIVER OF CERTAIN COVENANTS.
The Company and the Guarantors may omit in any particular instance to
comply with any covenant or condition set forth in Sections 1006 through 1013
(other than this Section 1007) and 1015 through 1021, if, before or after the
time for such compliance, the Holders of not less than a majority in aggregate
principal amount of the Securities at the time Outstanding shall, by Act of such
Holders, waive such compliance in such instance with such covenant or provision,
but no such waiver shall extend to or affect such covenant or condition except
to the extent so expressly waived, and, until such waiver shall become
effective, the obligations of the Company and the duties of the Trustee in
respect of any such covenant or condition shall remain in full force and effect.
SECTION 1008. LIMITATION ON INDEBTEDNESS.
(a) The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, create, issue, incur,
assume, guarantee or otherwise in any manner become directly or indirectly
liable for the payment of or otherwise incur, contingently or otherwise
(collectively, "incur"), any Indebtedness (including any Acquired Indebtedness),
unless such Indebtedness is incurred by the Company or any Guarantor or
constitutes Acquired Indebtedness of a Restricted Subsidiary and, in each case,
the Company's Consolidated Fixed Charge Coverage Ratio for the most recent four
full fiscal quarters for which financial statements are available immediately
preceding the incurrence of such Indebtedness taken as one period is at least
equal to or greater than 2.0:1.
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(b) Notwithstanding the foregoing, the Company and, to the extent
specifically set forth below in this paragraph (b), the Restricted Subsidiaries
may incur each and all of the following (collectively, the "Permitted
Indebtedness"):
(1) Indebtedness of the Company and its Restricted
Subsidiaries (or guarantees by Restricted Subsidiaries of such
Indebtedness) under or in respect of a Credit Facility (including any term
loans made pursuant thereto or under any revolving credit facility or in
respect of letters of credit thereunder) not to exceed the greater of (a)
an aggregate principal amount at any one time outstanding of $1,700.0
million, minus the aggregate amount of all Net Cash Proceeds of any Asset
Sale (other than a Sale and Leaseback Transaction) applied by the Company
or a Restricted Subsidiary to prepay permanently or repay permanently
Indebtedness under the Credit Agreement pursuant to the covenant described
under Section 1012 or (b) the sum of (i) 60% of the aggregate book value of
the inventory of the Company and its Restricted Subsidiaries, (ii) 80% of
the aggregate book value of the accounts receivable of the Company and its
Restricted Subsidiaries and (iii) $450.0 million, in each case determined
on a Consolidated basis as of the most recently ended fiscal quarter of the
Company for which financial statements of the Company are available;
(2) Indebtedness of the Company or any Restricted
Subsidiary pursuant to (a) the Securities (excluding any Additional
Securities) and any Guarantee of the Securities, (b) any Exchange
Securities issued in exchange for the Securities pursuant to the
Registration Rights Agreement (c) any Senior Subordinated Securities
(excluding any Additional Senior Subordinated Securities) and any Senior
Subordinated Securities Guarantee of the Senior Subordinated Securities and
(d) any Senior Subordinated Securities issued in exchange for the Senior
Subordinated Securities pursuant to the Registration Rights Agreement;
(3) Indebtedness of the Company or any Restricted
Subsidiary outstanding on the date of this Indenture and not otherwise
referred to in this definition of "Permitted Indebtedness";
(4) Indebtedness of the Company owing to a Restricted
Subsidiary; PROVIDED that any Indebtedness of the Company owing to a
Restricted Subsidiary that is not a Guarantor is subordinated in right of
payment from and after such time as the Securities shall become due and
payable (whether at Stated Maturity, acceleration or otherwise) to the
payment and performance of the Company's obligations under the Securities;
PROVIDED, FURTHER, that any disposition, pledge or transfer of any such
Indebtedness to a Person (other than a disposition, pledge or transfer to a
Restricted Subsidiary or a pledge to or for the benefit of the lenders
under a Credit Facility) shall be deemed to be an incurrence of such
Indebtedness by the Company or other obligor not permitted by this clause
(4);
(5) Indebtedness of a Restricted Subsidiary owing to the
Company or another Restricted Subsidiary; PROVIDED, that (a) any
disposition, pledge or transfer of any such Indebtedness to a Person (other
than a disposition, pledge or transfer to the Company or a Restricted
Subsidiary or a pledge to or for the benefit of the lenders under a Credit
Facility) shall be deemed to be an incurrence of such Indebtedness by the
obligor not permitted by this clause (5), and (b) any transaction pursuant
to which any Restricted Subsidiary, which has Indebtedness owing to the
Company or any other Restricted Subsidiary, ceases to be a Restricted
Subsidiary shall be deemed to be the incurrence of Indebtedness by such
Restricted Subsidiary that is not permitted by this clause (5);
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(6) guarantees of any Restricted Subsidiary of
Indebtedness of the Company or any of its Restricted Subsidiaries which is
permitted to be incurred under this Indenture, PROVIDED that such
guarantees are made in accordance with the provisions of Section 1013;
(7) obligations of the Company or any Restricted
Subsidiary entered into in the ordinary course of business for financial
management and not for speculative purposes
(a) pursuant to Interest Rate Agreements designed to
protect the Company or any Restricted Subsidiary against
fluctuations in interest rates in respect of Indebtedness of
the Company or any Restricted Subsidiary, or
(b) under any Currency Hedging Agreements or
Commodity Price Protection Agreements;
(8) Indebtedness of the Company or any Restricted
Subsidiary represented by Capital Lease Obligations (whether or not
incurred pursuant to Sale and Leaseback Transactions) or Purchase Money
Obligations or other Indebtedness incurred or assumed in connection with
the acquisition or development of real or personal, movable or immovable,
property in each case incurred for the purpose of financing or refinancing
all or any part of the purchase price or cost of construction or
improvement of property used in the business of the Company, in an
aggregate principal amount pursuant to this clause (8) not to exceed 4.0%
of Consolidated Net Tangible Assets outstanding at any time; PROVIDED that
the principal amount of any Indebtedness permitted under this clause (8)
does not in each case at the time of incurrence exceed the Fair Market
Value, as determined by the Company in good faith, of the acquired or
constructed asset or improvement so financed;
(9) Indebtedness of the Company or any of its Restricted
Subsidiaries in connection with surety, performance, appeal or similar
bonds, bankers' acceptances, completion guarantees or similar instruments
pursuant to self-insurance and workers' compensation obligations; PROVIDED
that, in each case contemplated by this clause (9), upon the drawing of
such letters of credit or other instrument, such obligations are reimbursed
within 30 days following such drawing; PROVIDED, FURTHER, that such
Indebtedness is not in connection with the borrowing of money or the
obtaining of advances or credit;
(10) Indebtedness of the Company or any of its Restricted
Subsidiaries arising from the honoring by a bank or other financial
institution of a check, draft or similar instrument inadvertently (except
in the case of daylight overdrafts) drawn against insufficient funds in the
ordinary course of business; PROVIDED, HOWEVER, that such Indebtedness is
extinguished within 10 Business Days of incurrence;
(11) Indebtedness of the Company to the extent the net
proceeds thereof are promptly deposited to defease the Securities as
described under Article Four;
(12) Indebtedness of the Company or any Restricted
Subsidiary arising from agreements for indemnification or purchase price
adjustment obligations or similar obligations, earn-outs, non-compete,
consulting, deferred compensation or other similar obligations or from
guarantees or letters of credit, surety bonds or performance bonds securing
any obligation of the Company or a Restricted Subsidiary pursuant to such
an agreement, in each case, incurred or assumed in connection with the
acquisition or disposition of any business, assets or Capital
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Stock of a Restricted Subsidiary; PROVIDED that the maximum assumable
liability in respect of all such obligations shall at no time exceed the
gross proceeds actually paid or received by the Company and any Restricted
Subsidiary, including the Fair Market Value of non-cash proceeds;
(13) any renewals, extensions, substitutions, refundings,
refinancings or replacements (collectively, a "refinancing") of any
Indebtedness incurred pursuant to paragraph (a) of this Section 1008 and
clauses (2) and (3) of this paragraph (b) of this definition of "Permitted
Indebtedness," including any successive refinancings so long as the
borrower under such refinancing is the Company or, if not the Company, the
same as the borrower of the Indebtedness being refinanced and the aggregate
principal amount of Indebtedness represented thereby (or if such
Indebtedness provides for an amount less than the principal amount thereof
to be due and payable upon a declaration of acceleration of the maturity
thereof, the original issue price of such Indebtedness plus any accreted
value attributable thereto since the original issuance of such
Indebtedness) is not increased by such refinancing plus the lesser of (a)
the stated amount of any premium or other payment required to be paid in
connection with such a refinancing pursuant to the terms of the
Indebtedness being refinanced or (b) the amount of premium or other payment
actually paid at such time to refinance the Indebtedness, plus, in either
case, the amount of expenses of the Company incurred in connection with
such refinancing and (1) in the case of any refinancing of Indebtedness
that is Subordinated Indebtedness, such new Indebtedness is made
subordinated to the Securities at least to the same extent as the
Indebtedness being refinanced and (2) in the case of Pari Passu
Indebtedness or Subordinated Indebtedness, as the case may be, such
refinancing does not reduce the Average Life to Stated Maturity or the
Stated Maturity of such Indebtedness;
(14) Indebtedness of the Company and its Restricted
Subsidiaries representing obligations under any employment arrangements to
make payments with respect to the cancellation or repurchase of Capital
Stock of the Company or its Restricted Subsidiaries in an aggregate
principal amount not to exceed $5.0 million outstanding at any one time;
(15) Indebtedness consisting of take or pay obligations
contained in supply agreements entered into in the ordinary course of
business;
(16) Indebtedness of the Company consisting of inventory,
furniture, fixtures and equipment buyback arrangements entered into in the
ordinary course of business with the Company's Canadian drugstore
franchisees;
(17) any guarantees by the Company of Indebtedness of the
Company's Canadian drugstore franchisees in an aggregate principal amount
not to exceed $30.0 million at any one time; and
(18) Indebtedness of the Company and its Restricted
Subsidiaries in addition to that described in clauses (1) through (17)
above, and any renewals, extensions, substitutions, refinancings or
replacements of such Indebtedness, so long as the aggregate principal
amount of all such Indebtedness shall not exceed $150.0 million outstanding
at any one time in the aggregate.
(c) For purposes of determining compliance with this Section
1008, in the event that an item of Indebtedness meets the criteria of more than
one of the types of Indebtedness permitted by
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this Section 1008, the Company in its sole discretion shall classify or
reclassify such item of Indebtedness and only be required to include the amount
of such Indebtedness as one of such types; PROVIDED that Indebtedness under the
Credit Agreement which is in existence following the Issue Date, and any
renewals, extensions, substitutions, refundings, refinancings or replacements
thereof, in an amount not in excess of the amount permitted to be incurred
pursuant to clause (1) of paragraph (b) of this Section 1008, shall be deemed to
have been incurred pursuant to clause (1) of paragraph (b) of this Section 1008
rather than paragraph (a) of this Section 1008. For clarity purposes, the
Company may incur Indebtedness under a Credit Facility in amounts after the
Issue Date in excess of the amounts outstanding on the Issue Date (or amounts
committed thereunder) under any other paragraph of this Section 1008.
(d) Indebtedness permitted by this Section 1008 need not be
permitted solely by reference to one provision permitting such Indebtedness but
may be permitted in part by one such provision and in part by one or more other
provisions of this Section 1008 permitting such Indebtedness.
(e) Accrual of interest, accretion or amortization of original
issue discount and the payment of interest on any Indebtedness in the form of
additional Indebtedness with the same terms, and the accretion or payment of
dividends on any Redeemable Capital Stock or Preferred Stock in the form of
additional shares of the same class of Redeemable Capital Stock or Preferred
Stock will not be deemed to be an incurrence of Indebtedness for purposes of
this Section 1008; PROVIDED, in each such case, that the amount thereof as
accrued is included in Consolidated Fixed Charge Coverage Ratio of the Company.
(f) For purposes of determining compliance with any U.S.
dollar-denominated restriction on the incurrence of Indebtedness denominated in
a different currency, the U.S. dollar-equivalent principal amount of such
Indebtedness incurred pursuant thereto shall be calculated based on the relevant
currency exchange rate in effect on the date that such Indebtedness was
incurred. Notwithstanding any other provision of this Section 1008, (a) the
maximum amount that the Company or a Restricted Subsidiary of the Company may
incur pursuant to this Section 1008 shall not be deemed to be exceeded, with
respect to outstanding Indebtedness, due solely to the result of fluctuations in
the exchange rates of currencies and (b) the Company or a Restricted Subsidiary
may refinance any Indebtedness originally incurred in a currency other than U.S.
dollars even if the U.S. dollar-equivalent principal amount of such Indebtedness
on the date of refinancing would exceed the maximum amount that the Company or a
Restricted Subsidiary could incur under the relevant basket of Permitted
Indebtedness.
(g) If Indebtedness is secured by a letter of credit that serves
only to secure such Indebtedness, then the total amount deemed incurred shall be
equal to the greater of (x) the principal of such Indebtedness and (y) the
amount that may be drawn under such letter of credit.
(h) The amount of Indebtedness issued at a price less than the
amount of the liability thereof shall be determined in accordance with GAAP.
(i) Notwithstanding any other provision of this covenant, neither
the Company nor any Guarantor shall incur any Indebtedness that is expressly
subordinated to any other Indebtedness of the Company or any Guarantor unless
such Indebtedness is expressly subordinated in right of payment to the
Securities and/or the Guarantee of any such Subsidiary Guarantor to the same or
greater extent that such Indebtedness is subordinated to such other
Indebtedness. For purposes of this Indenture, no
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Indebtedness shall be deemed to be subordinated in right of payment to any other
Indebtedness solely by virtue of being unsecured or secured by a junior priority
Lien or by virtue of the fact that the holders of such Indebtedness have entered
into intercreditor agreements or other arrangements giving one or more such
holders priority over the other holders in the collateral held by them.
SECTION 1009. LIMITATION ON RESTRICTED PAYMENTS.
(a) The Company will not, and will not cause or permit any
Restricted Subsidiary to, directly or indirectly:
(1) declare or pay any dividend on, or make any
distribution to holders of, any shares of the Company's Capital Stock
(other than dividends or distributions payable solely in shares of its
Qualified Capital Stock or in options, warrants or other rights to acquire
shares of such Qualified Capital Stock);
(2) purchase, redeem, defease or otherwise acquire or
retire for value, directly or indirectly, the Company's Capital Stock or
any Capital Stock of any Affiliate of the Company, including any Subsidiary
of the Company (other than Capital Stock of any Restricted Subsidiary of
the Company) or options, warrants or other rights to acquire such Capital
Stock;
(3) make any principal payment on, or repurchase, redeem,
defease, retire or otherwise acquire for value, prior to any scheduled
principal payment, sinking fund payment or maturity, any Subordinated
Indebtedness, except a purchase, repurchase, redemption, defeasance or
retirement within one year of final maturity thereof;
(4) declare or pay any dividend or distribution on any
Capital Stock of any Restricted Subsidiary to any Person (other than (a) to
the Company or any of its Wholly Owned Restricted Subsidiaries or (b)
dividends or distributions made by a Restricted Subsidiary on a pro rata
basis to all stockholders of such Restricted Subsidiary);or
(5) make any Investment in any Person (other than any
Permitted Investments);
(any of the foregoing actions described in clauses (1) through (5) of paragraph
(a) of this Section 1009, other than any such action that is a Permitted Payment
(as defined below in this Section 1009), collectively, "Restricted Payments")
(the amount of any such Restricted Payment, if other than cash, shall be the
Fair Market Value of the assets proposed to be transferred, as determined by the
Board of Directors of the Company, whose determination shall be conclusive and
evidenced by a Board Resolution), unless
(1) immediately after giving effect to such proposed
Restricted Payment on a PRO FORMA basis, no Default or Event of Default
shall have occurred and be continuing and such Restricted Payment shall not
be an event which is, or after notice or lapse of time or both, would be,
an "event of default" under the terms of any Indebtedness of the Company or
its Restricted Subsidiaries;
(2) immediately before and immediately after giving effect
to such Restricted Payment on a PRO FORMA basis, the Company could incur
$1.00 of additional
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Indebtedness (other than Permitted Indebtedness) pursuant to paragraph (a)
of Section 1008; and
(3) after giving effect to the proposed Restricted
Payment, the aggregate amount of all such Restricted Payments declared or
made after the date of this Indenture and all Designation Amounts does not
exceed the sum of:
(A) 50% of the aggregate Consolidated Net Income of
the Company accrued on a cumulative basis during the period
beginning on June 1, 2004 and ending on the last day of the
Company's last fiscal quarter ending prior to the date of the
Restricted Payment (or, if such aggregate cumulative
Consolidated Net Income shall be a loss, minus 100% of such
loss);
(B) the aggregate Net Cash Proceeds received after
the date of this Indenture by the Company either (1) as
capital contributions in the form of common equity to the
Company or (2) from the issuance or sale (other than to any
of its Subsidiaries) of Qualified Capital Stock of the
Company or any options, warrants or rights to purchase such
Qualified Capital Stock of the Company (except, in each case,
to the extent such proceeds are used to purchase, redeem or
otherwise retire Capital Stock or Subordinated Indebtedness
as set forth below in clause (2) or (3) of paragraph (b) of
this Section 1009) (and excluding the Net Cash Proceeds from
the issuance of Qualified Capital Stock financed, directly or
indirectly, using funds borrowed from the Company or any
Subsidiary until and to the extent such borrowing is repaid);
(C) the aggregate Net Cash Proceeds received after
the date of this Indenture by the Company (other than from
any of its Subsidiaries) upon the exercise of any options,
warrants or rights to purchase Qualified Capital Stock of the
Company (and excluding the Net Cash Proceeds from the
exercise of any options, warrants or rights to purchase
Qualified Capital Stock financed, directly or indirectly,
using funds borrowed from the Company or any Subsidiary until
and to the extent such borrowing is repaid);
(D) the aggregate Net Cash Proceeds received after
the date of this Indenture by the Company from the conversion
or exchange, if any, of debt securities or Redeemable Capital
Stock of the Company or its Restricted Subsidiaries into or
for Qualified Capital Stock of the Company plus, to the
extent such debt securities or Redeemable Capital Stock were
issued after the date of this Indenture, the aggregate of Net
Cash Proceeds from their original issuance (and excluding the
Net Cash Proceeds from the conversion or exchange of debt
securities or Redeemable Capital Stock financed, directly or
indirectly, using funds borrowed from the Company or any
Subsidiary until and to the extent such borrowing is repaid);
(E) (a) in the case of the disposition, repayment
or return of capital of any Investment constituting a
Restricted Payment (including any Investment in an
Unrestricted Subsidiary) made after the date of this
Indenture, an amount (to the extent not included in
Consolidated Net Income) equal to the lesser of the amount of
the disposition or repayment or return of capital with
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respect to such Investment and the initial amount of such
Investment, in either case, less the cost of the disposition
of such Investment and net of taxes, and
(b) in the case of the designation of an
Unrestricted Subsidiary as a Restricted Subsidiary (as long
as the designation of such Subsidiary as an Unrestricted
Subsidiary was deemed a Restricted Payment), the Fair Market
Value of the Company's interest in such Subsidiary, provided
that such amount shall not in any case exceed the amount of
the Restricted Payments deemed made at the time the
Subsidiary was designated as an Unrestricted Subsidiary and
any Investments in such Unrestricted Subsidiary after the
date of such initial designation; and
(F) at any time after the extinguishment or
termination of any amount which previously qualified as a
Restricted Payment on account of any Guarantee entered into
by the Company or any Restricted Subsidiary; PROVIDED that
such Guarantee has not been called upon and the obligation
arising under such Guarantee no longer exists.
(b) Notwithstanding the foregoing, and in the case of clauses (2)
through (9) and (11) below, so long as no Default or Event of Default is
continuing or would arise therefrom, the foregoing provisions shall not prohibit
the following actions (each of clauses (1) through (7), (10) and (11) of
paragraph (b) of this Section 1009 being referred to as a "Permitted Payment"):
(1) the payment of any dividend within 60 days after the
date of declaration thereof, if at such date of declaration such payment
was permitted by Section 1009(a) and such payment shall have been deemed to
have been paid on such date of declaration and shall not have been deemed a
"Permitted Payment" for purposes of the calculation required by Section
1009(a);
(2) the purchase, repurchase, redemption or other
acquisition or retirement for value of any shares of any class of Capital
Stock of the Company in exchange for (including any such exchange pursuant
to the exercise of a conversion right or privilege in connection with which
cash is paid in lieu of the issuance of fractional shares or scrip), or out
of the Net Cash Proceeds of a substantially concurrent issuance and sale
for cash, subject to notice and redemption periods (other than to a
Subsidiary), of, other shares of Qualified Capital Stock of the Company;
PROVIDED that the Net Cash Proceeds from the issuance of such shares of
Qualified Capital Stock are excluded from clause (3)(B) of paragraph (a) of
this Section 1009;
(3) the purchase, repurchase, redemption, defeasance,
satisfaction and discharge, retirement or other acquisition for value or
payment of principal of any Subordinated Indebtedness in exchange for, or
in an amount not in excess of the Net Cash Proceeds of, a substantially
concurrent issuance and sale for cash, subject to notice and redemption
periods (other than to any Subsidiary of the Company), of any Qualified
Capital Stock of the Company; PROVIDED that the Net Cash Proceeds from the
issuance of such shares of Qualified Capital Stock are excluded from clause
(3)(B) of paragraph (a) of this Section 1009;
(4) the purchase, repurchase, redemption, defeasance,
satisfaction and discharge, retirement, refinancing, acquisition for value
or payment of principal of any Subordinated Indebtedness (other than
Redeemable Capital Stock) (a "refinancing") through
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the substantially concurrent issuance of new Subordinated Indebtedness of
the Company, subject to notice and redemption periods; PROVIDED that any
such new Subordinated Indebtedness
(a) shall be in a principal amount that does not
exceed the principal amount so refinanced (or, if such
Subordinated Indebtedness provides for an amount less than
the principal amount thereof to be due and payable upon a
declaration of acceleration thereof, then such lesser amount
as of the date of determination), plus the amount of any
premium or other payment required to be paid in connection
with such a refinancing pursuant to the terms of the
Indebtedness being refinanced, plus the amount of expenses of
the Company incurred in connection with such refinancing;
(b) has an Average Life to Stated Maturity greater
than the remaining Average Life to Stated Maturity of the
Securities;
(c) has a Stated Maturity for its final scheduled
principal payment later than the Stated Maturity for the
final scheduled principal payment of the Securities; and
(d) is expressly subordinated in right of payment to
the Securities at least to the same extent as the
Subordinated Indebtedness to be refinanced;
(5) the repurchase of Capital Stock deemed to occur upon
exercise of stock options to the extent that shares of such Capital Stock
represent a portion of the exercise price of such options;
(6) the payment of cash in lieu of the issuance of
fractional shares in connection with the exercise of warrants, options or
other securities convertible into or exercisable for Capital Stock of the
Company;
(7) the repurchase, redemption, or other acquisition or
retirement for value of Redeemable Capital Stock of the Company made by
exchange for, or out of the proceeds of the sale of within 30 days of
Redeemable Capital Stock; PROVIDED that any such new Redeemable Capital
Stock is issued in accordance with Section 1008(a) and has an aggregate
liquidation preference that does not exceed the aggregate liquidation
preference of the amount so refinanced;
(8) payments or distributions to stockholders pursuant to
appraisal rights required under applicable law in connection with any
consolidation, merger or transfer of assets that complies with the
provisions of Article Eight;
(9) regular quarterly dividend payments to holders of any
shares of the Company's Capital Stock in the ordinary course of business or
purchases of the Company's Capital Stock, in an amount not to exceed $35.0
million in the aggregate in any fiscal year;
(10) any repayments or redemptions of intercompany
Subordinated Indebtedness; and
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(11) Restricted Payments, in addition to that described in
clauses (1) through (10) above, not to exceed $50.0 million in the
aggregate since the Issue Date.
SECTION 1010. LIMITATION ON TRANSACTIONS WITH AFFILIATES.
The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, enter into any transaction
or series of related transactions (including, without limitation, the sale,
purchase, exchange or lease of assets, property or services) with or for the
benefit of any Affiliate of the Company (other than the Company or a Restricted
Subsidiary) unless such transaction or series of related transactions is entered
into in good faith and in writing and
(1) such transaction or series of related transactions is
on terms that are no less favorable to the Company or such Restricted
Subsidiary, as the case may be, than those that would be available in a
comparable transaction in arm's-length dealings with an unrelated third
party,
(2) with respect to any transaction or series of related
transactions involving aggregate value in excess of $10.0 million,
(a) the Company delivers an Officers' Certificate to
the Trustee certifying that such transaction or series of
related transactions complies with clause (1) above, and
(b) such transaction or series of related
transactions has been approved by a majority of the
Disinterested Directors of the Board of Directors of the
Company, or in the event there is only one Disinterested
Director, by such Disinterested Director, or
(3) with respect to any transaction or series of related
transactions involving an aggregate value in excess of $50.0 million, the
Company delivers to the Trustee a written opinion of an investment banking
firm of national standing in the United States or Canada or other
recognized independent expert with experience appraising the terms and
conditions of the type of transaction or series of related transactions for
which an opinion is required stating that the transaction or series of
related transactions is fair to the Company or such Restricted Subsidiary
from a financial point of view;
PROVIDED, HOWEVER, that this provision shall not apply to: (i) employee benefit
arrangements with any officer or director of the Company, including under any
stock option or stock incentive plans, and customary indemnification
arrangements with officers or directors of the Company, in each case entered
into in the ordinary course of business, (ii) any Restricted Payments made in
compliance with Section 1009 above, (iii) transactions effected as part of a
Permitted Securitization Transaction, (iv) any fees paid or expenses reimbursed
to directors in the ordinary course in their capacity as such, (v) any sale or
issuance of Qualified Capital Stock to Affiliates of the Company and (vi)
transactions entered into in the ordinary course of business with Affiliates of
the Company who are Canadian drugstore franchisees, whether currently owned or
after-acquired, in their capacities as such, for purposes of (a) purchase and
sale of inventory for the related franchises, or (b) entering into the inventory
buyback or guarantee arrangements described under clauses (16) and (17) of the
definition of "Permitted Indebtedness".
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SECTION 1011. LIMITATION ON LIENS.
The Company will not, and will not cause or permit any Restricted
Subsidiary to, directly or indirectly, create, incur or affirm any Lien (other
than Permitted Liens) of any kind upon any property or assets (including any
intercompany notes) securing obligations or liabilities of the Company or any
Restricted Subsidiary owed on the date of this Indenture or acquired after the
date of this Indenture, or assign or convey any right to receive any income or
profits therefrom, unless the Securities (or a Guarantee in the case of Liens of
a Guarantor) are directly secured equally and ratably with (or, in the case of
Subordinated Indebtedness, prior or senior thereto, with the same relative
priority as the Securities shall have with respect to such Subordinated
Indebtedness) the obligation or liability secured by such Lien except for any
Permitted Liens.
Notwithstanding the foregoing, any Lien securing the Securities
granted pursuant to this covenant shall be automatically and unconditionally
released and discharged upon the release of any Lien described above on the
property or assets of the Company or any Restricted Subsidiary (including any
deemed release upon payment in full of all obligations secured by such Lien), at
at the time of release of such Lien on the property or assets of the Company or
such Restricted Subsidiary, or upon any sale, exchange or transfer to any Person
not an Affiliate of the Company of the property or assets secured by such Lien,
or of all of the Capital Stock held by the Company or any Restricted Subsidiary
in, or all or substantially all the assets of, any Restricted Subsidiary that
owns the property or assets subject to such Lien.
SECTION 1012. LIMITATION ON SALE OF ASSETS.
(a) The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, consummate an Asset Sale
unless (1) at least 75% of the consideration from such Asset Sale other than
Asset Swaps is received in cash and (2) the Company or such Restricted
Subsidiary receives consideration at the time of such Asset Sale at least equal
to the Fair Market Value of the shares or assets subject to such Asset Sale (as
determined by the Board of Directors of the Company and evidenced in a Board
Resolution).
For purposes of Section (a)(1) of this Section 1012, the following
will be deemed to be cash: (A) the amount of any Senior Indebtedness of the
Company or any Restricted Subsidiary that is actually assumed by the transferee
in such Asset Sale and from which the Company and the Restricted Subsidiaries
are fully and unconditionally released (excluding any liabilities that are
incurred in connection with or in anticipation of such Asset Sale and contingent
liabilities), (B) the amount of any notes, securities or other similar
obligations received by the Company or any Restricted Subsidiary from such
transferee that are immediately converted, sold or exchanged (or are converted,
sold or exchanged within 30 days of the related Asset Sale) by the Company or
the Restricted Subsidiaries into cash in an amount equal to the Net Cash
Proceeds realized upon such conversion, sale or exchange and (C) the amount of
any Designated Non-cash Consideration received by the Company or any Restricted
Subsidiaries in such Asset Sale.
With respect to an Asset Swap constituting an Asset Sale, the Company
or any Restricted Subsidiary shall be required to receive in cash an amount
equal to 75% of the proceeds of the Asset Sale which do not consist of like-kind
assets acquired with the Asset Swap.
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(b) All or a portion of the Net Cash Proceeds of any Asset Sale
may be applied by the Company or a Restricted Subsidiary, to the extent the
Company or such Restricted Subsidiary elects (or is required by the terms of any
Indebtedness under the Credit Agreement):
(i) to prepay permanently or repay permanently any
Indebtedness under the Credit Agreement (or similar bank type or
asset-based Indebtedness) or Indebtedness of Restricted Subsidiaries that
are not Guarantors then outstanding as required by the terms thereof or any
Indebtedness secured by the assets which were sold (PROVIDED, HOWEVER, that
in the case of any such Indebtedness repaid under a revolving credit
facility, such amounts may be reborrowed), or
(ii) if the Company determines not to apply such Net Cash
Proceeds to the permanent repayment or permanent prepayment of such
Indebtedness, or if no such Indebtedness is then outstanding, within 365
days of the Asset Sale, to invest the Net Cash Proceeds in properties
(including, without limitation, capital expenditures with respect to
improving existing assets) and other assets that (as determined by the
Board of Directors of the Company) replace the properties and assets that
were the subject of the Asset Sale or in properties and assets that will be
used in the businesses of the Company or its Restricted Subsidiaries
(including pursuant to capital expenditures).
The amount of such Net Cash Proceeds not used or invested in
accordance with the preceding clauses (i) and (ii) within 365 days of the Asset
Sale constitutes "Excess Proceeds."
(c) When the aggregate amount of Excess Proceeds exceeds $30.0
million or more, the Company will make offers to purchase the Securities (in the
amount described in clause (i) below) and any other Pari Passu Indebtedness
outstanding with similar provisions requiring the Company to make an offer to
purchase such Pari Passu Indebtedness with the proceeds from any Asset Sale and
will apply the Excess Proceeds to the repayment of the Securities and such Pari
Passu Indebtedness of the respective holders thereof accepting the offers, as
follows:
(i) the Company will make an offer to purchase (an
"Offer") from all Holders of the Securities in accordance with the
procedures set forth in this Indenture in the maximum principal amount
(expressed as a multiple of $1,000) of Securities that may be purchased out
of an amount (the "Security Amount") equal to the product of such Excess
Proceeds multiplied by a fraction, the numerator of which is the
outstanding principal amount of the Securities, and the denominator of
which is the sum of the outstanding principal amount (or accreted value in
the case of Indebtedness issued with original issue discount) of the
Securities and such Pari Passu Indebtedness (subject to proration in the
event such amount is less than the aggregate Offered Price (as defined
below) of all Securities tendered) and
(ii) to the extent required by such Pari Passu Indebtedness
to permanently reduce the principal amount of such Pari Passu Indebtedness
(or accreted value in the case of Indebtedness issued with original issue
discount), the Company will make an offer to purchase or otherwise
repurchase or redeem Pari Passu Indebtedness (a "Pari Passu Offer") in an
amount (the "Pari Passu Debt Amount") equal to the excess of the Excess
Proceeds over the Security Amount; PROVIDED that in no event will the
Company be required to make a Pari Passu Offer in a Pari Passu Debt Amount
exceeding the principal amount (or accreted value) of such Pari Passu
Indebtedness plus the amount of any premium required to be paid to
repurchase such Pari Passu Indebtedness.
111
The offer price for the Securities will be payable in cash in an amount equal to
100% of the principal amount of the Securities plus accrued and unpaid interest,
if any, to the date (the "Offer Date") such Offer is consummated (the "Offered
Price"), in accordance with the procedures set forth in this Indenture. To the
extent that the aggregate Offered Price of the Securities tendered pursuant to
the Offer is less than the Security Amount relating thereto or the aggregate
amount of Pari Passu Indebtedness that is purchased in a Pari Passu Offer is
less than the Pari Passu Debt Amount, the Company may use any remaining Excess
Proceeds to make an offer to repurchase the Senior Subordinated Notes or other
Subordinated Indebtedness required by the terms thereof, and any repurchase of
such Indebtedness shall not be deemed a Restricted Payment notwithstanding
anything else herein, or for general corporate purposes, subject to the other
covenants contained in this Indenture. If the aggregate principal amount of (i)
the Securities surrendered by Holders thereof to the Trustee and (ii) Pari Passu
Indebtedness surrendered by Holders thereof to the Company exceeds the amount of
Excess Proceeds (as determined by the Company and set forth on an Officers'
Certificate delivered to the Trustee), the Trustee shall select the Securities
to be purchased on a pro rata basis. Upon the completion of the purchase of all
the Securities tendered pursuant to an Offer and the completion of a Pari Passu
Offer, the amount of Excess Proceeds, if any, shall be reset at zero.
(d) If the Company becomes obligated to make an Offer pursuant to
paragraph (c) above, the Securities and the Pari Passu Indebtedness of the
respective holders thereof accepting such Offer shall be purchased by the
Company in whole or in part in integral multiples of $1,000, on a date that is
not earlier than 30 days and not later than 60 days from the date the notice of
the Offer is given to holders, or such later date as may be necessary for the
Company to comply with the requirements under the Exchange Act.
(e) The Company will comply with the applicable tender offer
rules, including Rule 14e-1 under the Exchange Act, and any other applicable
securities laws or regulations in connection with an Offer.
(f) Subject to paragraph (e) above, within 30 days after the date
on which the amount of Excess Proceeds equals or exceeds $15 million, the
Company shall send or cause to be sent by first-class mail, postage prepaid, to
the Trustee and to each Holder, at his address appearing in the Security
Register, a notice stating or including:
(1) that the Holder has the right to require the
Company to repurchase, subject to proration, such Holder's Securities at
the Offered Price;
(2) the Offer Date;
(3) the instructions a Holder must follow in order to have
his Securities purchased in accordance with paragraph (c) of this Section
1012;
(4) the Offered Price;
(5) the names and addresses of the Paying Agent and the
offices or agencies referred to in Section 1002;
(6) that Securities must be surrendered prior to the Offer
Date to the Paying Agent at the office of the Paying Agent or to an office
or agency referred to in Section 1002 to collect payment;
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(7) that any Securities not tendered will continue to
accrue interest and that unless the Company defaults in the payment of the
Offered Price, any Security accepted for payment pursuant to the Offer
shall cease to accrue interest on and after the Offer Date;
(8) the procedures for withdrawing a tender; and
(9) that the Offered Price for any Security which has been
properly tendered and not withdrawn and which has been accepted for payment
pursuant to the Offer will be paid promptly following the Offer Date.
(g) Holders electing to have Securities purchased hereunder will
be required to surrender such Securities at the address specified in the notice
prior to the Offer Date. Holders will be entitled to withdraw their election to
have their Securities purchased pursuant to this Section 1012 if the Company
receives, not later than one Business Day prior to the Offer Date, a telegram,
telex, facsimile transmission or letter setting forth (1) the name of the
Holder, (2) the certificate number of the Security in respect of which such
notice of withdrawal is being submitted, (3) the principal amount of the
Security (which shall be $1,000 or an integral multiple thereof) delivered for
purchase by the Holder as to which his election is to be withdrawn, (4) a
statement that such Holder is withdrawing his election to have such principal
amount of such Security purchased, and (5) the principal amount, if any, of such
Security (which shall be $1,000 or an integral multiple thereof) that remains
subject to the original notice of the Offer and that has been or will be
delivered for purchase by the Company.
(h) The Company shall (i) not later than the Offer Date, accept
for payment Securities or portions thereof tendered pursuant to the Offer, (ii)
not later than 10:00 a.m. (New York time) on the Offer Date, deposit with the
Trustee or with a Paying Agent an amount of money in same day funds sufficient
to pay the aggregate Offered Price of all the Securities or portions thereof
which are to be purchased on that date and (iii) not later than 10:00 a.m. (New
York time) on the Offer Date, deliver to the Paying Agent an Officers'
Certificate stating the Securities or portions thereof accepted for payment by
the Company. The Paying Agent shall promptly mail or deliver to Holders of
Securities so accepted payment in an amount equal to the Offered Price of the
Securities purchased from each such Holder, and the Company shall execute and
the Trustee shall promptly authenticate and mail or deliver to such Holders a
new Security equal in principal amount to any unpurchased portion of the
Security surrendered. Any Securities not so accepted shall be promptly mailed or
delivered by the Paying Agent at the Company's expense to the Holder thereof.
For purposes of this Section 1012, the Company shall choose a Paying Agent which
shall not be the Company.
Subject to applicable escheat laws, the Trustee and the Paying Agent
shall return to the Company any cash that remains unclaimed, together with
interest, if any, thereon, held by them for the payment of the Offered Price;
PROVIDED, HOWEVER, that (x) to the extent that the aggregate amount of cash
deposited by the Company with the Trustee in respect of an Offer exceeds the
aggregate Offered Price of the Securities or portions thereof to be purchased,
then the Trustee shall hold such excess for the Company and (y) unless otherwise
directed by the Company in writing, promptly after the Business Day following
the Offer Date the Trustee shall return any such excess to the Company together
with interest or dividends, if any, thereon.
(i) Securities to be purchased shall, on the Offer Date, become
due and payable at the Offered Price and from and after such date (unless the
Company shall default in the payment of the Offered Price) such Securities shall
cease to bear interest. Such Offered Price shall be paid to such Holder promptly
following the later of the Offer Date and the time of delivery of such Security
to the
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relevant Paying Agent at the office of such Paying Agent by the Holder
thereof in the manner required. Upon surrender of any such Security for purchase
in accordance with the foregoing provisions, such Security shall be paid by the
Company at the Offered Price; PROVIDED, HOWEVER, that installments of interest
whose Stated Maturity is on or prior to the Offer Date shall be payable to the
Person in whose name the Securities (or any Predecessor Securities) is
registered as such on the relevant Regular Record Dates according to the terms
and the provisions of Section 309; PROVIDED, FURTHER, that Securities to be
purchased are subject to proration in the event the Excess Proceeds are less
than the aggregate Offered Price of all Securities tendered for purchase, with
such adjustments as may be appropriate by the Trustee so that only Securities in
denominations of $1,000 or integral multiples thereof, shall be purchased. If
any Security tendered for purchase shall not be so paid upon surrender thereof
by deposit of funds with the Trustee or a Paying Agent in accordance with
paragraph (h) above, the principal thereof (and premium, if any, thereon) shall,
until paid, bear interest from the Offer Date at the rate borne by such
Security. Any Security that is to be purchased only in part shall be surrendered
to a Paying Agent at the office of such Paying Agent (with, if the Company, the
Security Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar or 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 Security, without
service charge, one or more new Securities of any authorized denomination as
requested by such Holder in an aggregate principal amount equal to, and in
exchange for, the portion of the principal amount of the Security so surrendered
that is not purchased. The Company shall publicly announce the results of the
Offer on or as soon as practicable after the Offer Date.
SECTION 1013. LIMITATION ON ISSUANCES OF GUARANTEES OF INDEBTEDNESS.
(a) The Company will not cause or permit any Restricted
Subsidiary (which is not a Guarantor), directly or indirectly, to guarantee,
assume or in any other manner become liable with respect to any Indebtedness of
the Company or any Restricted Subsidiary or become directly liable under any
Indebtedness pursuant to clause (1) of the definition of "Permitted
Indebtedness" unless such Restricted Subsidiary simultaneously executes and
delivers a supplemental indenture to this Indenture providing for a Guarantee of
the Securities on the same terms as the guarantee of such Indebtedness except
that
(1) such guarantee need not be secured unless required
pursuant to Section 1011; and
(2) if such Indebtedness is by its terms expressly
subordinated to the Securities, any such assumption, guarantee or other
liability of such Restricted Subsidiary with respect to such Indebtedness
shall be subordinated to such Restricted Subsidiary's Guarantee of the
Securities at least to the same extent as such Indebtedness is subordinated
to the Securities.
(b) Notwithstanding the foregoing, any Guarantee by a Restricted
Subsidiary of the Securities shall provide by its terms that it (and all Liens
securing the same) shall be automatically and unconditionally released and
discharged upon
(1) any sale, exchange or transfer, to any Person not an
Affiliate of the Company, of all of the Company's Capital Stock in, or all
or substantially all the assets of, such Restricted Subsidiary, or the
designation of such Restricted Subsidiary as an Unrestricted Subsidiary,
which transaction is in compliance with the terms of this Indenture and
such
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Restricted Subsidiary is released from all guarantees, if any, by it of
other Indebtedness of the Company or any Restricted Subsidiaries; and
(2) with respect to any Guarantees created after the date
of this Indenture, the release by the holders of the Indebtedness of the
Company described in clause (a) above of their security interest or their
guarantee by such Restricted Subsidiary (including any deemed release upon
payment in full of all obligations under such Indebtedness), at such time
as (A) no other Indebtedness of the Company has been secured or guaranteed
by such Restricted Subsidiary, as the case may be, or (B) the holders of
all such other Indebtedness which is secured or guaranteed by such
Restricted Subsidiary also release their security interest in or guarantee
by such Restricted Subsidiary (including any deemed release upon payment in
full of all obligations under such Indebtedness).
(3) the defeasance of the Securities as provided under
Section 402 or Section 403 or satisfaction and discharge of the Securities
as provided under Article Twelve; or
(4) the dissolution or liquidation of a Guarantor that is
permitted under this Indenture.
SECTION 1014. PURCHASE OF SECURITIES UPON A CHANGE OF CONTROL.
(a) If a Change of Control occurs, the Company shall be obligated
to make an offer (the "Change of Control Offer") to purchase all of the
Securities. In the Change of Control Offer, the Company will offer to purchase
all of the Securities, at a purchase price (the "Change of Control Purchase
Price") in cash in an amount equal to 101% of the principal amount of such
Securities, plus accrued and unpaid interest, if any, to the date of purchase
(the "Change of Control Purchase Date") (subject to the rights of Holders of
record on relevant record dates to receive interest due on an Interest Payment
Date).
(b) Within 30 days of any Change of Control or, at the Company's
option, prior to such Change of Control but after it is publicly announced, the
Company must notify the Trustee and give written notice (a "Change of Control
Purchase Notice") of the Change of Control to each Holder of Securities, by
first-class mail, postage prepaid, at such Holder's address appearing in the
Security Register. The Change of Control Purchase Notice must state, among other
things:
(1) that a Change of Control has occurred or will occur,
the date of such event, and that such Holder has the right to require the
Company to repurchase such Holder's Securities at the Change of Control
Purchase Price;
(2) that the Change of Control Offer is being made
pursuant to this Section 1014 and that all Securities properly tendered
pursuant to the Change of Control Offer and not withdrawn will be accepted
for payment at the Change of Control Purchase Price and be paid promptly
following the Change of Control Purchase Date;
(3) the Change of Control Purchase Date, which shall be
fixed by the Company on a Business Day no earlier than 30 days nor later
than 60 days from the date such Change of Control Purchase Notice is
mailed, or such later date as is necessary to comply with requirements
under the Exchange Act; PROVIDED that the Change of Control Purchase Date
may not occur prior to the Change of Control;
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(4) the Change of Control Purchase Price;
(5) the names and addresses of the Paying Agent and the
offices or agencies referred to in Section 1002;
(6) that Securities must be surrendered on or prior to the
Change of Control Purchase Date to the Paying Agent at the office of the
Paying Agent or to an office or agency referred to in Section 1002 to
collect payment;
(7) that any Security not tendered will continue to accrue
interest;
(8) that, unless the Company defaults in the payment of
the Change of Control Purchase Price, any Securities accepted for payment
pursuant to the Change of Control Offer shall cease to accrue interest
after the Change of Control Purchase Date; and
(9) other procedures that a holder of Securities must
follow to accept a Change of Control Offer or to withdraw acceptance of the
Change of Control Offer.
(c) Upon receipt by the Company of the proper tender of
Securities, the Holder of the Security in respect of which such proper tender
was made shall (unless the tender of such Security is properly withdrawn)
thereafter be entitled to receive solely the Change of Control Purchase Price
with respect to such Security. Upon surrender of any such Security for purchase
in accordance with the foregoing provisions, such Security shall be paid by the
Company at the Change of Control Purchase Price; PROVIDED, HOWEVER, that
installments of interest whose Stated Maturity is on or prior to the Change of
Control Purchase Date shall be payable to the Holders of such Securities, or one
or more Predecessor Securities, registered as such on the relevant Regular
Record Dates according to the terms and the provisions of Section 309. If any
Security tendered for purchase in accordance with the provisions of this Section
1014 shall not be so paid upon surrender thereof, the principal thereof (and
premium, if any, thereon) shall, until paid, bear interest from the Change of
Control Purchase Date at the rate borne by such Security. Holders electing to
have Securities purchased will be required to surrender such Securities to the
Paying Agent at the address specified in the Change of Control Purchase Notice
at least one Business Day prior to the Change of Control Purchase Date. Any
Security that is to be purchased only in part shall be surrendered to a Paying
Agent at the office of such Paying Agent (with, if the Company, the Security
Registrar or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Security
Registrar or the Trustee, as the case may be, 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 Security, without service charge, one or more new Securities of any
authorized denomination as requested by such Holder in an aggregate principal
amount equal to, and in exchange for, the portion of the principal amount of the
Security so surrendered that is not purchased.
(d) The Company shall (i) not later than the Change of Control
Purchase Date, accept for payment Securities or portions thereof tendered
pursuant to the Change of Control Offer, (ii) not later than 10:00 a.m. (New
York time) on the Business Day following the Change of Control Purchase Date,
deposit with the Trustee or with a Paying Agent an amount of money in same day
funds sufficient to pay the aggregate Change of Control Purchase Price of all
the Securities or portions thereof which have been so accepted for payment and
(iii) not later than 10:00 a.m. (New York time) on the Business Day following
the Change of Control Purchase Date, deliver to the Paying Agent an
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Officers' Certificate stating the Securities or portions thereof accepted for
payment by the Company. The Paying Agent shall promptly mail or deliver to
Holders of Securities so accepted payment in an amount equal to the Change of
Control Purchase Price of the Securities purchased from each such Holder, and
the Company shall execute and the Trustee shall promptly authenticate and mail
or deliver to such Holders a new Security equal in principal amount to any
unpurchased portion of the Security surrendered. Any Securities not so accepted
shall be promptly mailed or delivered by the Paying Agent at the Company's
expense to the Holder thereof. The Company will publicly announce the results of
the Change of Control Offer on the Change of Control Purchase Date. For purposes
of this Section 1014, the Company shall choose a Paying Agent which shall not be
the Company.
(e) A tender made in response to a Change of Control Purchase
Notice may be withdrawn if the Company receives, not later than one Business Day
prior to the Change of Control Purchase Date, a telegram, telex, facsimile
transmission or letter, specifying, as applicable:
(1) the name of the Holder;
(2) the certificate number of the Security in respect of
which such notice of withdrawal is being submitted;
(3) the principal amount of the Security (which shall be
$1,000 or an integral multiple thereof) delivered for purchase by the
Holder as to which such notice of withdrawal is being submitted;
(4) a statement that such Holder is withdrawing his
election to have such principal amount of such Security purchased; and
(5) the principal amount, if any, of such Security (which
shall be $1,000 or an integral multiple thereof) that remains subject to
the original Change of Control Purchase Notice and that has been or will be
delivered for purchase by the Company.
(f) Subject to applicable escheat laws, the Trustee and the
Paying Agent shall return to the Company any cash that remains unclaimed,
together with interest or dividends, if any, thereon, held by them for the
payment of the Change of Control Purchase Price; PROVIDED, HOWEVER, that, (x) to
the extent that the aggregate amount of cash deposited by the Company pursuant
to clause (ii) of paragraph (d) above exceeds the aggregate Change of Control
Purchase Price of the Securities or portions thereof to be purchased, then the
Trustee shall hold such excess for the Company and (y) unless otherwise directed
by the Company in writing, promptly after the Business Day following the Change
of Control Purchase Date the Trustee shall return any such excess to the Company
together with interest, if any, thereon.
(g) The Company will comply with the applicable tender offer
rules, including Rule 14e-1 under the Exchange Act, and any other applicable
securities laws or regulations in connection with a Change of Control Offer.
(h) Notwithstanding the foregoing, the Company will not be
required to make a Change of Control Offer upon a Change of Control if a third
party makes the Change of Control Offer in the manner, at the times and
otherwise in compliance with the requirements set forth in this Indenture
applicable to a Change of Control Offer made by the Company and purchases all
the Securities validly tendered and not withdrawn under such Change of Control
Offer.
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SECTION 1015. LIMITATION ON SUBSIDIARY PREFERRED STOCK.
(a) The Company will not permit any Restricted Subsidiary of the
Company to issue, sell or transfer any Preferred Stock, except for (1) Preferred
Stock issued or sold to, held by or transferred to the Company or a Wholly Owned
Restricted Subsidiary, and (2) Preferred Stock issued by a Person prior to the
time (A) such Person becomes a Restricted Subsidiary, (B) such Person merges
with or into a Restricted Subsidiary or (C) a Restricted Subsidiary merges with
or into such Person; PROVIDED that such Preferred Stock was not issued or
incurred by such Person in anticipation of the type of transaction contemplated
by subclause (A), (B) or (C). This paragraph (a) shall not apply upon the
acquisition of all the outstanding Capital Stock of such Restricted Subsidiary
in accordance with the terms of this Indenture.
(b) The Company will not permit any Person (other than the
Company or a Wholly Owned Restricted Subsidiary) to acquire Preferred Stock of
any Restricted Subsidiary from the Company or any Restricted Subsidiary, except
upon the acquisition of all the outstanding Capital Stock of such Restricted
Subsidiary in accordance with the terms of this Indenture.
SECTION 1016. LIMITATION ON DIVIDEND AND OTHER PAYMENT RESTRICTIONS
AFFECTING RESTRICTED SUBSIDIARIES.
(a) The Company will not, and will not cause or permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause to
exist or become effective any consensual encumbrance or restriction on the
ability of any Restricted Subsidiary to
(1) pay dividends or make any other distribution on its
Capital Stock;
(2) pay any Indebtedness owed to the Company or any other
Restricted Subsidiary;
(3) make any Investment in the Company or any other
Restricted Subsidiary; or
(4) transfer any of its properties or assets to the
Company or any other Restricted Subsidiary.
(b) However, paragraph (a) of this Section 1016 will not prohibit
any
(1) encumbrance or restriction pursuant to (x) an
agreement (other than the Credit Agreement and the related documentation)
in effect on the date of this Indenture, (y) the Credit Agreement and
related documentation in effect on the date of this Indenture and (z) the
Senior Subordinated Securities and the Senior Subordinated Securities
Indenture, and any amendments, modifications, or supplements to the
documents described in (x), (y) or (z) that are not, on the whole,
materially less favorable to the Holders of the Securities than those in
effect on the date of this Indenture;
(2) encumbrance or restriction with respect to a
Restricted Subsidiary that is not a Restricted Subsidiary of the Company on
the date of this Indenture, in existence at the time such Person becomes a
Restricted Subsidiary of the Company and not incurred in connection with,
or in contemplation of, such Person becoming a Restricted Subsidiary,
PROVIDED that such encumbrances and restrictions are not applicable to the
Company or any
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Restricted Subsidiary or the properties or assets of the Company or any
Restricted Subsidiary other than such Subsidiary which is becoming a
Restricted Subsidiary;
(3) encumbrance or restriction pursuant to any agreement
governing any Indebtedness permitted by paragraph (b)(8) of Section 1008 as
to the assets financed with the proceeds of such Indebtedness;
(4) encumbrance or restriction contained in any Acquired
Indebtedness or other agreement of any entity or related to assets acquired
by or merged into or consolidated with the Company or any Restricted
Subsidiaries, so long as such encumbrance or restriction (A) was not
entered into in contemplation of the acquisition, merger or consolidation
transaction, and (B) is not applicable to any Person, or the properties or
assets of any Person, other than the Person, or the property or assets of
the Person, so acquired, so long as the agreement containing such
restriction does not violate any other provision of this Indenture;
(5) encumbrance or restriction existing under applicable
law or any requirement of any governmental or regulatory body;
(6) Liens securing Indebtedness otherwise permitted to be
incurred under the provisions of Section 1011 that limit the right of the
debtor to dispose of the assets subject to such Liens;
(7) customary non-assignment provisions in leases,
permits, licenses or contracts;
(8) customary restrictions contained in (A) asset sale
agreements permitted to be incurred under Section 1012 that limit the
transfer of such assets or otherwise impose limitations pending the closing
of such sale and (B) any other agreement for the sale or other disposition
of a Restricted Subsidiary that restricts distributions by that Restricted
Subsidiary pending its sale or other disposition;
(9) restrictions on cash or other deposits or net worth
imposed by customers under contracts entered into in the ordinary course of
business;
(10) any agreement or instrument placing contractual
restrictions applicable only to a Securitization Entity effected in
connection with, or Liens on receivables or related assets which are the
subject of, a Permitted Securitization Transaction;
(11) customary restrictions imposed by the terms of joint
venture agreements; PROVIDED, HOWEVER, such restrictive terms do not apply
to any Restricted Subsidiaries other than the applicable joint venture;
PROVIDED FURTHER, HOWEVER, that such restrictions do not materially impact
the ability of the Company to make payments on the Securities when due as
required by the terms of this Indenture; and PROVIDED FURTHER, HOWEVER,
that the Consolidated Net Tangible Assets of all such joint ventures on the
date of entering into any such joint venture or making additional
Investments in such joint venture shall not exceed 3.0% of the Consolidated
Net Tangible Assets of the Company and its Restricted Subsidiaries
outstanding on the date of entering into, or additional Investments in,
such joint venture; and
(12) under any agreement that extends, renews, refinances
or replaces the agreements containing the encumbrances or restrictions in
the foregoing clauses (1) through
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(11), or in this clause (12), PROVIDED that the terms and conditions of any
such encumbrances or restrictions are not more restrictive in any material
respect taken as a whole than those under or pursuant to the agreement
evidencing the Indebtedness so extended, renewed, refinanced or replaced.
SECTION 1017. LIMITATION ON UNRESTRICTED SUBSIDIARIES.
The Company may designate after the Issue Date any Subsidiary (other
than a Guarantor) as an Unrestricted Subsidiary under this Indenture (a
"Designation") only if:
(a) no Default shall have occurred and be continuing at the time
of or after giving effect to such Designation;
(b) the Company would not be prohibited from making an Investment
(other than a Permitted Investment) at the time of Designation (assuming the
effectiveness of such Designation) pursuant to paragraph (a) of Section 1009
hereof in an amount (the "Designation Amount") equal to the greater of (1) the
net book value of the Company's interest in such Subsidiary calculated in
accordance with GAAP or (2) the Fair Market Value of the Company's interest in
such Subsidiary as determined in good faith by the Company's Board of Directors;
(c) the Company would be permitted to incur $1.00 of additional
Indebtedness (other than Permitted Indebtedness) in accordance with paragraph
(a) of Section 1008 hereof at the time of such Designation (assuming the
effectiveness of such Designation);
(d) such Unrestricted Subsidiary does not own any Capital Stock
in any Restricted Subsidiary of the Company which is not simultaneously being
designated an Unrestricted Subsidiary; and
(e) such Unrestricted Subsidiary is not liable, directly or
indirectly, with respect to any Indebtedness other than Unrestricted Subsidiary
Indebtedness, PROVIDED that an Unrestricted Subsidiary may provide a Guarantee
for the Securities.
In the event of any such Designation, the Company shall be deemed to
have made an Investment constituting a Restricted Payment pursuant to Section
1009 hereof for all purposes of this Indenture in the Designation Amount.
The Company shall not and shall not cause or permit any Restricted
Subsidiary to at any time
(a) provide credit support for, guarantee or subject any of its
property or assets (other than the Capital Stock of any Unrestricted Subsidiary)
to the satisfaction of, any Indebtedness of any Unrestricted Subsidiary
(including any undertaking, agreement or instrument evidencing such
Indebtedness) (other than Permitted Investments in Unrestricted Subsidiaries) or
(b) be directly or indirectly liable for any Indebtedness of any
Unrestricted Subsidiary.
For purposes of the foregoing, the Designation of a Subsidiary of the
Company as an Unrestricted Subsidiary shall be deemed to be the Designation of
all of the Subsidiaries of such
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Subsidiary as Unrestricted Subsidiaries. Unless so designated as an Unrestricted
Subsidiary, any Person that becomes a Subsidiary of the Company will be
classified as a Restricted Subsidiary.
The Company may revoke any Designation of a Subsidiary as an
Unrestricted Subsidiary (a "Revocation") if:
(a) no Default shall have occurred and be continuing at the time
of and after giving effect to such Revocation;
(b) all Liens and Indebtedness of such Unrestricted Subsidiary
outstanding immediately following such Revocation would, if incurred at such
time, have been permitted to be incurred for all purposes of this Indenture; and
(c) unless such redesignated Subsidiary shall not have any
Indebtedness outstanding (other than Indebtedness that would be Permitted
Indebtedness), immediately after giving effect to such proposed Revocation, and
after giving PRO FORMA effect to the incurrence of any such Indebtedness of such
redesignated Subsidiary as if such Indebtedness was incurred on the date of the
Revocation, the Company could incur $1.00 of additional Indebtedness (other than
Permitted Indebtedness) pursuant to Section 1008.
All Designations and Revocations must be evidenced by a resolution of
the Board of Directors of the Company delivered to the Trustee and an Officers'
Certificate certifying compliance with the foregoing provisions.
SECTION 1018. SALE AND LEASEBACK TRANSACTIONS.
The Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any Sale and Leaseback Transaction (not including
any Sale and Leaseback Transaction in the form of an operating lease); PROVIDED,
that the Company or one of its Restricted Subsidiaries may enter into a Sale and
Leaseback Transaction if:
(1) the Company or such Restricted Subsidiary could have
(a) incurred Indebtedness in an amount equal to the Attributable
Indebtedness relating to such Sale and Leaseback Transaction under Section
1008 of this Indenture and (b) incurred a Lien to secure such Indebtedness
under Section 1011 of this Indenture;
(2) the gross cash proceeds of such Sale and Leaseback
Transaction are at least equal to the Fair Market Value of the property
that is the subject of such Sale and Leaseback Transaction; and
(3) the transfer of assets in such Sale and Leaseback
Transaction is permitted by, and the Company applies the proceeds of such
transaction in compliance with, Section 1012 of this Indenture.
SECTION 1019. PROVISION OF FINANCIAL STATEMENTS.
So long as the Securities are Outstanding, whether or not the Company
has a class of securities registered under the Exchange Act, the Company and the
Guarantors shall furnish without cost to each Holder of Securities and file with
the Trustee and the Commission within the time periods specified in the
Commission's rules and regulations: (i) annual reports on Form 20-F or 40-F (or
any
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successor form) containing the information required to be contained therein (or
required in such successor form), including audited year-end consolidated
financial statements (including a balance sheet, income statement and statement
of changes of cash flow) prepared in accordance with GAAP consistently applied
(reconciled to United States generally accepted accounting principles); (ii)
reports on Form 6-K (or any successor form) containing substantially the same
information required to be contained in Form 10-Q (or required in such successor
form), including unaudited quarterly Consolidated financial statements
(including a balance sheet, income statement and statement of changes of cash
flow) prepared in accordance with GAAP consistently applied (reconciled to
United States generally accepted accounting principles); and (iii) promptly from
time to time after the occurrence of an event required to be therein reported,
such other reports on Form 6-K (or any successor form) containing substantially
the same information required to be contained in Form 8-K (or required in any
successor form); PROVIDED, HOWEVER, that the Company and the Guarantors will not
be obligated to file such reports with the Commission prior to the effectiveness
of the Exchange Offer Registration Statement or the Shelf Registration
Statement.
Delivery of such reports, information and documents to the Trustee is
for informational purposes only and the Trustee's receipt of such 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).
In addition, so long as any of the Securities remain Outstanding, the
Company will make available to any prospective purchaser of the Securities or
beneficial owner of the Securities in connection with any sale thereof the
information required by Rule 144A(d)(4) under the Securities Act, until such
time as the Company has either exchanged the Securities for securities identical
in all material respects which have been registered under the Securities Act or
until such time as the Holders thereof have disposed of such Securities pursuant
to an effective registration statement under the Securities Act.
SECTION 1020. STATEMENT BY OFFICERS AS TO DEFAULT.
(a) The Company and the Guarantors will deliver to the Trustee,
on or before a date not more than 120 days after the end of each fiscal year of
the Company ending after the date hereof, and 60 days after the end of each
fiscal quarter ending after the date hereof, a written statement signed by two
executive officers of the Company and the Guarantors, one of whom shall be the
principal executive officer, principal financial officer or principal accounting
officer of the Company and the Guarantors, as to compliance herewith, including
whether or not, after a review of the activities of the Company during such year
or such quarter and of the Company's and each Guarantor's performance under this
Indenture, to the best knowledge, based on such review, of the signers thereof,
the Company and each Guarantor have fulfilled all of their respective
obligations and are in compliance with all conditions and covenants under this
Indenture throughout such year or quarter, as the case may be, and, if there has
been a Default specifying each Default and the nature and status thereof and any
actions being taken by the Company and the Guarantors with respect thereto.
(b) When any Default or Event of Default has occurred and is
continuing, or if the Trustee or any Holder or the trustee for or the holder of
any other evidence of Indebtedness of the Company or any Subsidiary gives any
notice or takes any other action with respect to a claimed default, the Company
and the Guarantors shall deliver to the Trustee by registered or certified mail
or facsimile transmission followed by an originally executed copy of an
Officers' Certificate specifying
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such Default, Event of Default, notice or other action, the status thereof and
what actions the Company and the Guarantors are taking or propose to take with
respect thereto, within five Business Days after the occurrence of such Default
or Event of Default.
SECTION 1021. FALL AWAY EVENT.
In the event of the occurrence of a Fall Away Event (and
notwithstanding the failure of the Company subsequently to maintain Investment
Grade Status), (1) the covenants and provisions described under Section 1008,
Section 1009, Section 1010, Section 1011, Section 1012, Section 1015, Section
1016 and Section 1018 shall each no longer be in effect for the remaining term
of the Securities, (2) the Company will no longer be subject to the financial
test set forth in clause (3) under paragraph (a) of Section 801 or to clause (b)
in the first paragraph or clause (c) in the first and fifth paragraphs under
Section 1017 and (3) the covenants described under clause (a) and clause (b)
below will be applicable. The covenants described under clause (a) and clause
(b) below shall replace Sections 1011 and Section 1018 and will only be
applicable in the event of the occurrence of a Fall Away Event.
(a) The Company will not, and will not permit any Restricted
Subsidiary to, incur any Lien to secure Indebtedness without making, or causing
such Restricted Subsidiary to make, effective provision for securing the
Securities on an equal and ratable basis (or, in the case of a Lien securing
subordinated Indebtedness, on a prior and senior basis, with the same relative
priority as the Securities, shall have with respect to such subordinated
Indebtedness) for so long as such Indebtedness is so secured.
The foregoing restrictions will not apply to:
(i) any Lien existing on (or securing Indebtedness
committed to but not outstanding on) the date of the Fall Away Event (which
Lien in either case was not created in connection with, or in contemplation
of, such Fall Away Event);
(ii) any Lien in favor of only the Company or a Restricted
Subsidiary;
(iii) any Lien arising by reason of
(1) any judgment, decree or order of any court, so
long as such Lien is adequately bonded and any appropriate legal
proceedings which may have been duly initiated for the review of such
judgment, decree or order shall not have been finally terminated or the
period within which such proceedings may be initiated shall not have
expired;
(2) taxes, assessments or government charges not yet
delinquent or which are being contested in good faith;
(3) security for payment of workers' compensation or
other insurance;
(4) good faith deposits in connection with tenders
or leases or other contracts (other than contracts for the payment of
money);
(5) zoning restrictions, easements, licenses,
reservations, title defects, rights of others for rights of way, utilities,
sewers, electric lines, telephone or telegraph
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lines, and other similar purposes, provisions, covenants, conditions,
waivers, restrictions on the use of property or minor irregularities of
title (and with respect to leasehold interests, mortgages, obligations,
Liens and other encumbrances incurred, created, assumed or permitted to
exist and arising by, through or under a landlord or owner of the leased
property, with or without consent of the lessee), none of which materially
impairs the use of any parcel of property material to the operation of the
business of the Company or any Subsidiary of the value of such property for
the purpose of such business;
(6) deposits to secure public or statutory
obligations, or in lieu of surety or appeal bonds; or
(7) operation of law in favor of mechanics,
carriers, warehousemen, landlords, materialmen, laborers, employees or
suppliers, incurred in the ordinary course of business for sums which are
not yet delinquent or are being contested in good faith by negotiations or
by appropriate proceedings which suspend the collection thereof;
(iv) any Lien securing Acquired Indebtedness created prior
to (and not created in connection with, or in contemplation of) the
incurrence of such Indebtedness by the Company or any Subsidiary;
(v) any Lien to secure the performance bids, trade
contracts, leases (including, without limitation, statutory and common law
landlord's Liens), statutory obligations, surety and appeal bonds, letters
of credit and other obligations of a like nature and incurred in the
ordinary course of business of the Company or any Subsidiary;
(vi) any Lien securing Indebtedness permitted to be
incurred under Interest Rate Agreements or otherwise incurred to hedge
interest rate risk;
(vii) any Lien securing Capital Lease Obligations or
Purchase Money Obligations incurred or assumed solely in connection with
the acquisition, development or construction of real or personal, moveable
or immovable property within 90 days of such incurrence or assumption;
provided that such Liens only extend to such acquired, developed or
constructed property, such Liens secure Indebtedness in an amount not in
excess of the original purchase price or the original cost of any such
assets or repair, addition or improvement thereto;
(viii) Liens on assets transferred to a Securitization
Entity or an asset of a Securitization Entity, in either case, incurred in
connection with a Permitted Securitization Transaction;
(ix) leases, licenses, subleases and sublicenses of assets
(including, without limitation, real property and intellectual property
rights), which do not materially interfere with the ordinary course of
conduct of the business of the Company or any Restricted Subsidiary;
(x) Liens securing Indebtedness or other obligations of a
Restricted Subsidiary owing to the Company or another Restricted
Subsidiary;
(xi) any extension, renewal, refinancing or replacement, in
whole or in part, of any Lien described in the foregoing clauses (i)
through (x) so long as no additional collateral is granted as security
thereby; and
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(xii) Liens (not including Liens permitted by clauses (i)
through (xi) above) securing Indebtedness in the aggregate principal amount
outstanding at any one time not to exceed 10% of Consolidated Net Tangible
Assets.
(b) The Company will not, and will not permit any of its
Subsidiaries to, enter into any Sale and Leaseback Transaction (not including
any Sale and Leaseback Transaction in the form of an operating lease); PROVIDED,
that the Company or one of its Subsidiaries may enter into a Sale and Leaseback
Transaction if:
(i) the Company or such Subsidiary could have incurred a
Lien to secure the Indebtedness relating to such Sale and Leaseback
Transaction pursuant to Section 1011; and
(ii) the gross cash proceeds of such sale and leaseback
transaction are at least equal to the Fair Market Value of the property
that is the subject of such sale and leaseback transaction.
ARTICLE ELEVEN
REDEMPTION OF SECURITIES
SECTION 1101. ADDITIONAL AMOUNTS.
All payments made by or on behalf of the Company or any Guarantor
under or with respect to the Securities or any Guarantee will be made free and
clear of and without withholding or deduction for or on account of any present
or future taxes, duties, levies, imposts, assessments or other governmental
charges of whatever nature (including any penalties, interest and other
liabilities related thereto) imposed, assessed or levied by or on behalf of any
Taxing Authority (collectively, "Taxes"), unless the Company or any Guarantor,
as the case may be, is required to withhold or deduct Taxes by law or by the
interpretation or administration thereof. If the Company or any Guarantor is so
required to withhold or deduct any amount for or on account of any Taxes from
any payment made under or with respect to the Securities or any Guarantee, the
Company or such Guarantor, as the case may be, will pay such additional amounts
("Additional Amounts") as may be necessary so that the net amount (including
Additional Amounts) received by each Holder and beneficial owner of the
Securities after such withholding or deduction (including any withholding or
deduction in respect of Additional Amounts) will not be less than the amount
such Holder or beneficial owner would have received if such Taxes had not been
withheld or deducted; PROVIDED that no Additional Amounts will be payable with
respect to a payment made to a Holder or beneficial owner of Securities or to a
third party on behalf of a Holder or beneficial owner of the Securities if and
to the extent any of the following exceptions apply (if and to any such extent,
an "Excluded Holder"):
(a) in the case of Canadian withholding Taxes, such Taxes were so
imposed, assessed or levied by reason of the Company's not dealing at
arm's-length (within the meaning of the Income Tax Act (Canada)) with such
Holder or beneficial owner at the time of making such payment,
(b) such Taxes were so imposed, assessed or levied on such
payment to such Holder or beneficial owner by reason of its being connected with
the relevant Taxing Jurisdiction otherwise than by reason of such Holder's or
beneficial owner's activity in connection with purchasing the Securities, mere
ownership or disposition of the Securities, receipt of payments under the
Securities or enforcement or exercise of its rights under the Securities, the
Guarantees or this Indenture,
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(c) such payment could have been made without such deduction or
withholding of such Taxes if the relevant Security had been presented for
payment (where presentation is required) within 30 days after the date on which
such payment or such Security became due and payable or the date on which
payment thereof is duly provided for, whichever is later (except to the extent
that the Holder or beneficial owner would have been entitled to Additional
Amounts had the Security been presented on the last day of such 30-day period),
(d) the Holder or beneficial owner is a fiduciary, a partnership
or not the sole beneficial owner of a Security, if and to the extent that any
beneficiary or settler with respect to such fiduciary, any partner in such
partnership or a beneficial owner of such Security (as the case may be) would
not have been entitled to receive Additional Amounts with respect to the payment
in question if such beneficiary, settler, partner or beneficial owner had been
the sole beneficial owner of such Security (but only if there is no material
cost or expense associated with transferring such Security to such beneficiary,
settler, partner or beneficial owner and no restriction on such transfer that is
outside the control of such beneficiary, settler, partner or beneficial owner),
(e) such Holder or beneficial owner failed to duly and timely
comply with a written request of the Company addressed or otherwise provided to
the Holder (and made at a time which would enable the Holder and/or beneficial
owner acting reasonably to duly and timely comply with that request) to provide
information, documents or other evidence concerning such Holder's or beneficial
owner's nationality, residence, entitlement to treaty benefits, identity or
connection with the relevant Taxing Authority or any political subdivision or
authority thereof, but only (x) if and to the extent that such Holder and/or
beneficial owner was legally able to comply with such request and (y) if and to
the extent due and timely compliance with such request is required by the law,
regulation, administrative practice or any treaty obligation of the relevant
Taxing Authority or any political subdivision or authority thereof as a
precondition to reduction or elimination of any Taxes as to which Additional
Amounts would have otherwise been payable to such Holder or beneficial owner of
Securities but for this clause (e), or
(f) any combination of the foregoing clauses of this proviso.
The Company or such Guarantor will also (a) make such withholding or
deduction and (b) remit the full amount deducted or withheld to the relevant
Taxing Authority in accordance with applicable law. The Company or such
Guarantor will furnish to the Trustee, within 30 days after the date the payment
of any Taxes is due pursuant to applicable law, certified copies of tax receipts
evidencing such payment by the Company or such Guarantor.
The Company and each Guarantor will indemnify and hold harmless each
Holder and beneficial owner of Securities (other than an Excluded Holder with
respect to any Taxes) and, upon written request, promptly reimburse each such
Holder or beneficial owner for the amount of: (1) any Taxes paid by such Holder
or beneficial owner as a result of payments made under or with respect to the
Securities or any Guarantee or any Documentary Taxes paid by such Holder or
beneficial owner and (2) any Taxes paid by such Holder or beneficial owner with
respect to any reimbursement payment under the foregoing clause (1), so that the
net amount received by such Holder or beneficial owner after such reimbursement
payment will not be less than the net amount such Holder or beneficial owner
would have received if the Taxes or the Documentary Taxes described in the
foregoing clauses (1) and (2) had not been imposed, assessed or levied, but
excluding any such Taxes on such Holder's or beneficial owner's net income
generally.
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At least 30 days prior to each date on which any payment under or with
respect to the Securities is due and payable, if the Company or any Guarantor
will be obligated to pay Additional Amounts with respect to such payment, the
Company will deliver to the Trustee an Officers' Certificate stating the fact
that such Additional Amounts will be payable and the amounts so payable, and
will set forth such other information necessary to enable the Trustee to pay
such Additional Amounts to Holders of Securities on the payment date.
Whenever in this Indenture there is mentioned, in any context, the
payment of principal (and premium, if any), Redemption Price, Change in Control
Purchase Price, interest or any other amount payable under or with respect to
any Security or any Guarantee, such mention shall be deemed to include mention
of the payment of Additional Amounts or reimbursement payments to the extent
that, in such context, Additional Amounts or reimbursement payments are, were or
would be payable in respect thereof.
The Company will pay any present or future stamp, issue, registration,
court, documentary or other similar Taxes (including Additional Amounts with
respect thereto) imposed, assessed or levied by any Taxing Jurisdiction in
respect of or in connection with the execution, issuance, redemption,
retirement, delivery or registration of, or enforcement of rights under, this
Indenture, the Securities, the Guarantees or any related document (collectively,
"Documentary Taxes").
The obligation to pay Additional Amounts, any reimbursement payments
and Documentary Taxes under the terms and conditions described above will
survive any termination, defeasance or discharge of this Indenture.
SECTION 1102. TAX REDEMPTION
The Securities will be subject to redemption as a whole, but not in
part, at the option of the Company at any time, on not less than 30 nor more
than 60 days' prior written notice to the Holders of Securities (which notice
shall be irrevocable), at 100% of the principal amount, together with any
accrued and unpaid interest thereon to the Redemption Date, and all Additional
Amounts, if any, then due or becoming due on the Redemption Date, in the event
the Company or any Guarantor is, has become or would become obligated to pay, on
the next date on which any amount would be payable with respect to the
Securities, any Additional Amounts or reimbursement payments (other than in
respect of Documentary Taxes) as a result of any change in, or amendment to, the
laws (including any regulations or rulings promulgated thereunder) of any Taxing
Jurisdiction or any change in, or amendment to, any official position regarding
the application, administration or interpretation of such laws, regulations or
rulings (including a holding, judgment or order by a court of competent
jurisdiction), which change or amendment is announced or becomes effective on or
after the date of this Indenture; PROVIDED:
(a) the Company or the applicable Guarantor has determined, in
its business judgment, that the obligation to pay such Additional Amounts cannot
be avoided by the use of reasonable measures available to the Company or such
Guarantor; and
(b) in the case of such Additional Amounts payable by a Guarantor
with respect to Taxes imposed, assessed or levied by or on behalf of a Taxing
Authority other than Canada or the United States of America or any political
subdivision or authority of either of the foregoing, such Guarantor has been
making payments to the Holders of the Securities pursuant to its Guarantee prior
to
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the earlier of the time such change or amendment is announced or such change or
amendment becomes effective.
Notwithstanding the foregoing:
(a) no such notice of redemption shall be given earlier than 90
days prior to the earliest date on which the Company or the applicable Guarantor
would, but for such redemption, be obligated to pay such Additional Amounts or
reimbursement payments or later than 365 days after the date on which the
Company or the applicable Guarantor first becomes liable (or if later, the
earlier of the date on which it first becomes aware of its liability or the date
on which it reasonably should have become aware of its liability) to pay such
Additional Amounts or reimbursement payments as a result of any change or
amendment described above, and
(b) at the time such notice is given, the Company's or the
applicable Guarantor's obligation to pay such Additional Amounts or
reimbursement payments remains in effect.
Prior to the mailing of any notice of redemption of the Securities
pursuant to the foregoing, the Company will deliver to the Trustee (i) an
Officers' Certificate stating that the Company is entitled to effect such
redemption and setting forth a statement of facts showing that the conditions
precedent to the right of the Company so to redeem have occurred, and (ii) an
Opinion of Independent Counsel in the relevant Taxing Jurisdiction of recognized
national standing to the effect that the Company or the applicable Guarantor is,
has become or would become obligated to pay such Additional Amounts or
reimbursement payments as a result of such change or amendment as described
above. The Trustee shall accept such Officers' Certificate and Opinion of
Independent Counsel as sufficient evidence of the satisfaction of the conditions
precedent above, which Officers' Certificate and Opinion of Independent Counsel
shall then be binding on the Holders and beneficial owners of the Securities.
SECTION 1103. RIGHTS OF REDEMPTION.
(a) The Securities are subject to redemption at any time on or
after August 1, 2008, at the option of the Company, in whole or in part, subject
to the conditions, and at the Redemption Prices specified in the form of
Security, together with accrued and unpaid interest, if any, to the Redemption
Date (subject to the right of Holders of record on relevant Regular Record Dates
and Special Record Dates to receive interest due on relevant Interest Payment
Dates and Special Payment Dates).
(b) In addition, at any time prior to August 1, 2007, the
Company, at its option, may use the net proceeds of one or more Equity Offerings
to redeem on one or more occasions up to an aggregate of 35% of the aggregate
principal amount of Securities originally issued under this Indenture at a
Redemption Price equal to 107.625% of the aggregate principal amount of the
Securities redeemed, plus accrued and unpaid interest, if any, to the Redemption
Date (subject to the rights of Holders of record on relevant record dates to
receive interest due on an Interest Payment Date). At least 65% of the initial
aggregate principal amount of Securities must remain outstanding immediately
after the occurrence of such redemption. In order to effect this redemption, the
Company must mail a notice of redemption no later than 30 days after the closing
of the related Equity Offering and must complete such redemption within 90 days
of the closing of the Equity Offering.
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SECTION 1104. APPLICABILITY OF ARTICLE.
Redemption of Securities at the election of the Company or otherwise,
as permitted or required by any provision of this Indenture, shall be made in
accordance with such provision and this Article Eleven.
SECTION 1105. ELECTION TO REDEEM; NOTICE TO TRUSTEE.
The election of the Company to redeem any Securities pursuant to
Section 1101 shall be evidenced by a Company Order and an Officers' Certificate.
In case of any redemption at the election of the Company, the Company shall, not
less than 45 nor more than 60 days prior to the Redemption Date fixed by the
Company (unless a shorter notice period shall be satisfactory to the Trustee),
notify the Trustee in writing of such Redemption Date and of the principal
amount of Securities to be redeemed.
SECTION 1106. SELECTION BY TRUSTEE OF SECURITIES TO BE REDEEMED.
If less than all the Securities are to be redeemed, the particular
Securities or portions thereof to be redeemed shall be selected not more than 30
days prior to the Redemption Date. The Trustee shall select the Securities or
portions thereof to be redeemed in compliance with the requirements of the
principal national security exchange, if any, on which the Securities are
listed, or if the Securities are not listed, on a pro rata basis, by lot or by
any other method the Trustee shall deem fair and reasonable. Securities redeemed
in part must be redeemed only in integral multiples of $1,000. Redemption
pursuant to the provisions of Section 1103(b) relating to an Equity Offering
must be made on a pro rata basis or on as nearly a pro rata basis as practicable
(subject to the procedures of DTC or any other depositary).
The Trustee shall promptly notify the Company and the Security
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Securities shall relate, in
the case of any Security redeemed or to be redeemed only in part, to the portion
of the principal amount of such Security which has been or is to be redeemed.
SECTION 1107. NOTICE OF REDEMPTION.
Notice of redemption shall be given by first-class mail, postage
prepaid, mailed not less than 30 days nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at its address
appearing in the Security Register.
All notices of redemption shall state:
(a) the Redemption Date;
(b) the Redemption Price;
(c) if less than all Outstanding Securities are to be redeemed,
the identification of the particular Securities to be redeemed;
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(d) in the case of a Security to be redeemed in part, the
principal amount of such Security to be redeemed and that after the Redemption
Date upon surrender of such Security, new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will be
issued;
(e) that Securities called for redemption must be surrendered to
the Paying Agent to collect the Redemption Price;
(f) that on the Redemption Date the Redemption Price will become
due and payable upon each such Security or portion thereof to be redeemed, and
that (unless the Company shall default in payment of the Redemption Price)
interest thereon shall cease to accrue on and after said date;
(g) the names and addresses of the Paying Agent and the offices
or agencies referred to in Section 1002 where such Securities are to be
surrendered for payment of the Redemption Price;
(h) the CUSIP number, if any, relating to such Securities; and
(i) the procedures that a Holder must follow to surrender the
Securities to be redeemed.
Notice of redemption of Securities to be redeemed at the election of
the Company shall be given by the Company or, at the Company's written request,
by the Trustee in the name and at the expense of the Company. If the Company
elects to give notice of redemption, it shall provide the Trustee with an
Officers' Certificate stating that such notice has been given in compliance with
the requirements of this Section 1107.
The notice if mailed in the manner herein provided shall be
conclusively presumed to have been given, whether or not the Holder receives
such notice. In any case, failure to give such notice by mail or any defect in
the notice to the Holder of any Security designated for redemption as a whole or
in part shall not affect the validity of the proceedings for the redemption of
any other Security.
SECTION 1108. DEPOSIT OF REDEMPTION PRICE.
On or prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company or any of its Affiliates is
acting as Paying Agent, segregate and hold in trust as provided in Section 1003)
an amount of money in same day funds sufficient to pay the Redemption Price of,
and (except if the Redemption Date shall be an Interest Payment Date or Special
Payment Date) accrued interest on, all the Securities or portions thereof which
are to be redeemed on that date. The Paying Agent shall promptly mail or deliver
to Holders of Securities so redeemed payment in an amount equal to the
Redemption Price of the Securities purchased from each such Holder. All money,
if any, earned on funds held in trust by the Trustee or any Paying Agent shall
be remitted to the Company. For purposes of this Section 1110, the Company shall
choose a Paying Agent which shall not be the Company.
SECTION 1109. SECURITIES PAYABLE ON REDEMPTION DATE.
Notice of redemption having been given as aforesaid, the Securities so
to be redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified and
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from and after such date (unless the Company shall default in the payment of the
Redemption Price and accrued interest) such Securities shall cease to bear
interest. Upon surrender of any such Security for redemption in accordance with
said notice, such Security shall be paid by the Company at the Redemption Price
together with accrued interest to the Redemption Date; PROVIDED, HOWEVER, that
installments of interest whose Stated Maturity is on or prior to the Redemption
Date shall be payable to the Holders of such Securities, or one or more
Predecessor Securities, registered as such on the relevant Regular Record Dates
and Special Record Dates according to the terms and the provisions of Section
309.
If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal and premium, if any, shall,
until paid, bear interest from the Redemption Date at the rate borne by such
Security.
SECTION 1110. SECURITIES REDEEMED OR PURCHASED IN PART.
Any Security which is to be redeemed or purchased only in part shall
be surrendered to the Paying Agent at the office or agency maintained for such
purpose pursuant to Section 1002 (with, if the Company, the Security Registrar
or the Trustee so requires, due endorsement by, or a written instrument of
transfer in form satisfactory to the Company, the Security Registrar or the
Trustee, as the case may be, 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 Security
without service charge, a new Security or Securities, 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 Security so
surrendered that is not redeemed or purchased.
ARTICLE TWELVE
SATISFACTION AND DISCHARGE
SECTION 1201. SATISFACTION AND DISCHARGE OF INDENTURE.
This Indenture will be discharged and will cease to be of further
effect (except as to surviving rights of registration of transfer or exchange of
Securities as expressly provided for herein) as to all Outstanding Securities
hereunder, and the Trustee, upon Company Request and at the expense of the
Company, shall execute proper instruments acknowledging satisfaction and
discharge of this Indenture, when
(a) either
(1) all such Securities theretofore authenticated and
delivered (except lost, stolen or destroyed Securities which have been
replaced or paid as provided in Section 308 or (ii) all Securities for
whose payment money has theretofore been deposited in trust or segregated
and held in trust by the Company and thereafter repaid to the Company or
discharged from such trust as provided in Section 1003) have been delivered
to the Trustee for cancellation; or
(2) all such Securities not theretofore delivered to the
Trustee for cancellation (i) have become due and payable, (ii) will become
due and payable at their Stated Maturity within one year or (iii) are to be
called for redemption within one year under
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arrangements reasonably satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the
Company;
(b) the Company or any Guarantor has irrevocably deposited or
caused to be deposited with the Trustee as trust funds in trust an amount in
United States dollars sufficient to pay and discharge the entire Indebtedness on
the Securities not theretofore delivered to the Trustee for cancellation,
including the principal of, premium, if any, and accrued interest at such
Maturity, Stated Maturity or Redemption Date;
(c) no Default or Event of Default shall have occurred and be
continuing on the date of such deposit;
(d) the Company or any Guarantor has paid or caused to be paid
all other sums payable hereunder by the Company and any Guarantor; and
(e) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Independent Counsel each stating that (i) all
conditions precedent herein relating to the satisfaction and discharge hereof
have been complied with and (2) such satisfaction and discharge will not result
in a breach or violation of, or constitute a default under, this Indenture or
any other material agreement or instrument to which the Company, any Guarantor
or any Subsidiary is a party or by which the Company, any Guarantor or any
Subsidiary is bound.
Notwithstanding the satisfaction and discharge hereof, the obligations
of the Company to the Trustee under Section 607 and, if United States dollars
shall have been deposited with the Trustee pursuant to subclause (2) of
subsection (a) of this Section 1201, the obligations of the Trustee under
Section 1202 and the last paragraph of Section 1003 shall survive.
SECTION 1202. APPLICATION OF TRUST MONEY.
Subject to the provisions of the last paragraph of Section 1003, all
United States dollars deposited with the Trustee pursuant to Section 1201 shall
be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the Persons entitled thereto, of the principal of,
premium, if any, and interest on, the Securities for whose payment such United
States dollars have been deposited with the Trustee.
ARTICLE THIRTEEN
GUARANTEES
SECTION 1301. GUARANTORS' GUARANTEE.
For value received, each of the Guarantors, in accordance with this
Article Thirteen, hereby absolutely, fully, unconditionally and irrevocably
guarantees, jointly and severally with each other and with each other Person
which may become a Guarantor hereunder, to the Trustee and the Holders, the
punctual payment and performance when due of all Indenture Obligations (which
for purposes of this Guarantee shall also be deemed to include all commissions,
fees, charges, costs and other expenses (including reasonable legal fees and
disbursements of counsel) arising out of or incurred by the Trustee or the
Holders in connection with the enforcement of this Guarantee).
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SECTION 1302. CONTINUING GUARANTEE; NO RIGHT OF SET-OFF; INDEPENDENT
OBLIGATION.
(a) This Guarantee shall be a continuing guarantee of the payment
and performance of all Indenture Obligations and shall remain in full force and
effect until the payment in full of all of the Indenture Obligations and shall
apply to and secure any ultimate balance due or remaining unpaid to the Trustee
or the Holders; and this Guarantee shall not be considered as wholly or
partially satisfied by the payment or liquidation at any time or from time to
time of any sum of money for the time being due or remaining unpaid to the
Trustee or the Holders. Each Guarantor, jointly and severally, covenants and
agrees to comply with all obligations, covenants, agreements and provisions
applicable to it in this Indenture including those set forth in Article Eight.
Without limiting the generality of the foregoing, each Guarantor's liability
shall extend to all amounts which constitute part of the Indenture Obligations
and would be owed by the Company under this Indenture and the Securities but for
the fact that they are unenforceable, reduced, limited, impaired, suspended or
not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving the Company.
(b) Each Guarantor, jointly and severally, hereby guarantees that
the Indenture Obligations will be paid to the Trustee without set-off or
counterclaim or other reduction whatsoever (whether for taxes, withholding or
otherwise) in lawful currency of the United States of America.
(c) Each Guarantor, jointly and severally, guarantees that the
Indenture Obligations shall be paid strictly in accordance with their terms
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such terms or the rights of the Holders of the
Securities.
(d) Each Guarantor's liability to pay or perform or cause the
performance of the Indenture Obligations under this Guarantee shall arise
forthwith after demand for payment or performance by the Trustee has been given
to the Guarantors in the manner prescribed in Section 106 hereof.
(e) Except as provided herein, the provisions of this Article
Thirteen cover all agreements between the parties hereto relative to this
Guarantee and none of the parties shall be bound by any representation, warranty
or promise made by any Person relative thereto which is not embodied herein; and
it is specifically acknowledged and agreed that this Guarantee has been
delivered by each Guarantor free of any conditions whatsoever and that no
representations, warranties or promises have been made to any Guarantor
affecting its liabilities hereunder, and that the Trustee shall not be bound by
any representations, warranties or promises now or at any time hereafter made by
the Company to any Guarantor.
(f) This Guarantee is a guarantee of payment, performance and
compliance and not of collectibility and is in no way conditioned or contingent
upon any attempt to collect from or enforce performance or compliance by the
Company or upon any event or condition whatsoever.
(g) The obligations of the Guarantors set forth herein constitute
the full recourse obligations of the Guarantors enforceable against them to the
full extent of all their assets and properties.
133
SECTION 1303. GUARANTEE ABSOLUTE.
The obligations of the Guarantors hereunder are independent of the
obligations of the Company under the Securities and this Indenture and a
separate action or actions may be brought and prosecuted against any Guarantor
whether or not an action or proceeding is brought against the Company and
whether or not the Company is joined in any such action or proceeding. The
liability of the Guarantors hereunder is irrevocable, absolute and unconditional
and (to the extent permitted by law) the liability and obligations of the
Guarantors hereunder shall not be released, discharged, mitigated, waived,
impaired or affected in whole or in part by:
(a) any defect or lack of validity or enforceability in respect
of any Indebtedness or other obligation of the Company or any other Person under
this Indenture or the Securities, or any agreement or instrument relating to any
of the foregoing;
(b) any grants of time, renewals, extensions, indulgences,
releases, discharges or modifications which the Trustee or the Holders may
extend to, or make with, the Company, any Guarantor or any other Person, or any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Indenture Obligations, or any other amendment or waiver of, or any
consent to or departure from, this Indenture or the Securities, including any
increase or decrease in the Indenture Obligations;
(c) the taking of security from the Company, any Guarantor or any
other Person, and the release, discharge or alteration of, or other dealing
with, such security;
(d) the occurrence of any change in the laws, rules, regulations
or ordinances of any jurisdiction by any present or future action of any
governmental authority or court amending, varying, reducing or otherwise
affecting, or purporting to amend, vary, reduce or otherwise affect, any of the
Indenture Obligations and the obligations of any Guarantor hereunder;
(e) the abstention from taking security from the Company, any
Guarantor or any other Person or from perfecting, continuing to keep perfected
or taking advantage of any security;
(f) any loss, diminution of value or lack of enforceability of
any security received from the Company, any Guarantor or any other Person, and
including any other guarantees received by the Trustee;
(g) any other dealings with the Company, any Guarantor or any
other Person, or with any security;
(h) the Trustee's or the Holders' acceptance of compositions from
the Company or any Guarantor;
(i) the application by the Holders or the Trustee of all monies
at any time and from time to time received from the Company, any Guarantor or
any other Person on account of any Indebtedness and liabilities owing by the
Company or any Guarantor to the Trustee or the Holders, in such manner as the
Trustee or the Holders deems best and the changing of such application in whole
or in part and at any time or from time to time, or any manner of application of
collateral, or proceeds thereof, to all or any of the Indenture Obligations, or
the manner of sale of any collateral;
134
(j) the release or discharge of the Company or any Guarantor of
the Securities or of any Person liable directly as surety or otherwise by
operation of law or otherwise for the Securities, other than an express release
in writing given by the Trustee, on behalf of the Holders, of the liability and
obligations of any Guarantor hereunder;
(k) any change in the name, business, capital structure or
governing instrument of the Company or any Guarantor or any refinancing or
restructuring of any of the Indenture Obligations;
(l) subject to Section 1314, the sale of the Company's or any
Guarantor's business or any part thereof;
(m) subject to Section 1314, any merger or consolidation,
arrangement or reorganization of the Company, any Guarantor, any Person
resulting from the merger or consolidation of the Company or any Guarantor with
any other Person or any other successor to such Person or merged or consolidated
Person or any other change in the corporate existence, structure or ownership of
the Company or any Guarantor or any change in the corporate relationship between
the Company and any Guarantor, or any termination of such relationship;
(n) the insolvency, bankruptcy, liquidation, winding-up,
dissolution, receivership, arrangement, readjustment, assignment for the benefit
of creditors or distribution of the assets of the Company or its assets or any
resulting discharge of any obligations of the Company (whether voluntary or
involuntary) or of any Guarantor (whether voluntary or involuntary) or the loss
of corporate existence;
(o) subject to Section 1314, any arrangement or plan of
reorganization affecting the Company or any Guarantor;
(p) any failure, omission or delay on the part of the Company to
conform or comply with any term of this Indenture;
(q) any limitation on the liability or obligations of the Company
or any other Person under this Indenture, or any discharge, termination,
cancellation, distribution, irregularity, invalidity or unenforceability in
whole or in part of this Indenture;
(r) any other circumstance (including any statute of limitations)
that might otherwise constitute a defense available to, or discharge of, the
Company or any Guarantor; or
(s) any modification, compromise, settlement or release by the
Trustee, or by operation of law or otherwise, of the Indenture Obligations or
the liability of the Company or any other obligor under the Securities, in whole
or in part, and any refusal of payment by the Trustee, in whole or in part, from
any other obligor or other guarantor in connection with any of the Indenture
Obligations, whether or not with notice to, or further assent by, or any
reservation of rights against, each of the Guarantors.
SECTION 1304. RIGHT TO DEMAND FULL PERFORMANCE.
In the event of any demand for payment or performance by the Trustee
from any Guarantor hereunder, the Trustee or the Holders shall have the right to
demand its full claim and to receive all dividends or other payments in respect
thereof until the Indenture Obligations have been paid in full, and the
Guarantors shall continue to be jointly and severally liable hereunder for any
135
balance which may be owing to the Trustee or the Holders by the Company under
this Indenture and the Securities. The retention by the Trustee or the Holders
of any security, prior to the realization by the Trustee or the Holders of its
rights to such security upon foreclosure thereon, shall not, as between the
Trustee and any Guarantor, be considered as a purchase of such security, or as
payment, satisfaction or reduction of the Indenture Obligations due to the
Trustee or the Holders by the Company or any part thereof. Each Guarantor,
promptly after demand, will reimburse the Trustee and the Holders for all costs
and expenses of collecting such amount under, or enforcing this Guarantee,
including, without limitation, the reasonable fees and expenses of counsel.
SECTION 1305. WAIVERS.
(a) Each Guarantor hereby expressly waives (to the extent
permitted by law) notice of the acceptance of this Guarantee and notice of the
existence, renewal, extension or the non-performance, non-payment, or
non-observance on the part of the Company of any of the terms, covenants,
conditions and provisions of this Indenture or the Securities or any other
notice whatsoever to or upon the Company or such Guarantor with respect to the
Indenture Obligations, whether by statute, rule of law or otherwise. Each
Guarantor hereby acknowledges communication to it of the terms of this Indenture
and the Securities and all of the provisions therein contained and consents to
and approves the same. Each Guarantor hereby expressly waives (to the extent
permitted by law) diligence, presentment, protest and demand for payment with
respect to (i) any notice of sale, transfer or other disposition of any right,
title to or interest in the Securities by the Holders or in this Indenture, (ii)
any release of any Guarantor from its obligations hereunder resulting from any
loss by it of its rights of subrogation hereunder and (iii) any other
circumstances whatsoever that might otherwise constitute a legal or equitable
discharge, release or defense of a guarantor or surety or that might otherwise
limit recourse against such Guarantor.
(b) Without prejudice to any of the rights or recourses which the
Trustee or the Holders may have against the Company, each Guarantor hereby
expressly waives (to the extent permitted by law) any right to require the
Trustee or the Holders to:
(i) enforce, assert, exercise, initiate or exhaust any
rights, remedies or recourse against the Company, any
Guarantor or any other Person under this Indenture or
otherwise;
(ii) value, realize upon, or dispose of any security of the
Company or any other Person held by the Trustee or the
Holders;
(iii) initiate or exhaust any other remedy which the Trustee
or the Holders may have in law or equity; or
(iv) mitigate the damages resulting from any Default under
this Indenture;
before requiring or becoming entitled to demand payment from such Guarantor
under this Guarantee.
SECTION 1306. THE GUARANTORS REMAIN OBLIGATED IN EVENT THE COMPANY IS NO
LONGER OBLIGATED TO DISCHARGE INDENTURE OBLIGATIONS.
It is the express intention of the Trustee and the Guarantors that if
for any reason the Company has no legal existence, is or becomes under no legal
obligation to discharge the Indenture Obligations owing to the Trustee or the
Holders by the Company or if any of the Indenture Obligations
136
owing by the Company to the Trustee or the Holders becomes irrecoverable from
the Company by operation of law or for any reason whatsoever, this Guarantee and
the covenants, agreements and obligations of the Guarantors contained in this
Article Thirteen shall nevertheless be binding upon the Guarantors, as principal
debtor, until such time as all such Indenture Obligations have been paid in full
to the Trustee and all Indenture Obligations owing to the Trustee or the Holders
by the Company have been discharged, or such earlier time as Section 402 shall
apply to the Securities and the Guarantors shall be responsible for the payment
thereof to the Trustee or the Holders upon demand.
SECTION 1307. FRAUDULENT CONVEYANCE; CONTRIBUTION; SUBROGATION.
(a) Each Guarantor that is a Subsidiary of the Company and, by
its acceptance hereof, each Holder hereby confirm that it is the intention of
all such parties that the Guarantee by such Guarantor pursuant to its Guarantee
not constitute a fraudulent transfer or conveyance for purposes of the
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law. To effectuate the foregoing
intention, the Holders and such Guarantor hereby irrevocably agree that the
obligations of such Guarantor under its Guarantee shall be limited to the
maximum amount which, after giving effect to all other contingent and fixed
liabilities of such Guarantor and after giving effect to any collections from or
payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under its Guarantee or pursuant to its
contribution obligations under this Indenture, will result in the obligations of
such Guarantor under its Guarantee not constituting such fraudulent transfer or
conveyance.
(b) Each Guarantor that makes a payment or distribution under its
Guarantee shall be entitled to a contribution from each other Guarantor, if any,
in a PRO RATA amount based on the net assets of each Guarantor, determined in
accordance with GAAP.
(c) Until the Securities are paid in full, each Guarantor hereby
waives all rights of subrogation or contribution, whether arising by contract or
operation of law (including, without limitation, any such right arising under
federal Bankruptcy Law) or otherwise by reason of any payment by it pursuant to
the provisions of this Article Thirteen.
SECTION 1308. GUARANTEE IS IN ADDITION TO OTHER SECURITY.
This Guarantee shall be in addition to and not in substitution for any
other guarantees or other security, if any, which the Trustee may now or
hereafter hold in respect of the Indenture Obligations owing to the Trustee or
the Holders by the Company and (except as may be required by law) the Trustee
shall be under no obligation to marshal in favor of each of the Guarantors any
other guarantees or other security or any moneys or other assets which the
Trustee may be entitled to receive or upon which the Trustee or the Holders may
have a claim.
SECTION 1309. RELEASE OF SECURITY INTERESTS.
Without limiting the generality of the foregoing and except as
otherwise provided in this Indenture, each Guarantor hereby consents and agrees,
to the fullest extent permitted by applicable law, that the rights of the
Trustee hereunder, and the liability of the Guarantors hereunder, shall not be
affected by any and all releases for any purpose of any collateral, if any, from
the Liens and security interests created by any collateral document and that
this Guarantee shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Indenture Obligations is
137
rescinded or must otherwise be returned by the Trustee upon the insolvency,
bankruptcy or reorganization of the Company or otherwise, all as though such
payment had not been made.
SECTION 1310. NO BAR TO FURTHER ACTIONS.
Except as provided by law, no action or proceeding brought or
instituted under this Article Thirteen and this Guarantee and no recovery or
judgment in pursuance thereof shall be a bar or defense to any further action or
proceeding which may be brought under this Article Thirteen and this Guarantee
by reason of any further default or defaults under this Article Thirteen and
this Guarantee or in the payment of any of the Indenture Obligations owing by
the Company.
SECTION 1311. FAILURE TO EXERCISE RIGHTS SHALL NOT OPERATE AS A WAIVER; NO
SUSPENSION OF REMEDIES.
(a) No failure to exercise and no delay in exercising, on the
part of the Trustee or the Holders, any right, power, privilege or remedy under
this Article Thirteen and this Guarantee shall operate as a waiver thereof, nor
shall any single or partial exercise of any rights, power, privilege or remedy
preclude any other or further exercise thereof, or the exercise of any other
rights, powers, privileges or remedies. The rights and remedies herein provided
for are cumulative and not exclusive of any rights or remedies provided in law
or equity.
(b) Nothing contained in this Article Thirteen shall limit the
right of the Trustee or the Holders to take any action to accelerate the
Maturity of the Securities pursuant to Article Five or to pursue any rights or
remedies hereunder or under applicable law.
SECTION 1312. TRUSTEE'S DUTIES; NOTICE TO TRUSTEE.
(a) Any provision in this Article Thirteen or elsewhere in this
Indenture allowing the Trustee to request any information or to take any action
authorized by, or on behalf of any Holder, shall be permissive and shall not be
obligatory on the Trustee except as the Holders may direct in accordance with
the provisions of this Indenture or where the failure of the Trustee to request
any such information or to take any such action arises from the Trustee's gross
negligence, bad faith or willful misconduct.
(b) The Trustee shall not be required to inquire into the
existence, powers or capacities of the Company, any Guarantor or the officers,
directors or agents acting or purporting to act on their respective behalf.
SECTION 1313. SUCCESSORS AND ASSIGNS.
Subject to Section 1314, all terms, agreements and conditions of this
Article Thirteen shall extend to and be binding upon each Guarantor and its
successors and permitted assigns and shall inure to the benefit of and may be
enforced by the Trustee and its successors and assigns; PROVIDED, HOWEVER, that
the Guarantors may not assign any of their rights or obligations hereunder other
than in accordance with Article Eight.
SECTION 1314. RELEASE OF GUARANTEE.
Concurrently with the payment in full of all of the Indenture
Obligations, the Guarantors shall be released from and relieved of their
obligations under this Article Thirteen. Upon
138
the delivery by the Company to the Trustee of an Officers' Certificate and, if
requested by the Trustee, an Opinion of Counsel to the effect that the
transaction giving rise to the release of this Guarantee was made by the Company
in accordance with the provisions of this Indenture and the Securities, the
Trustee shall execute any documents reasonably required in order to evidence the
release of the Guarantors from their obligations under this Guarantee. If any of
the Indenture Obligations are revived and reinstated after the termination of
this Guarantee, then all of the obligations of the Guarantors under this
Guarantee shall be revived and reinstated as if this Guarantee had not been
terminated until such time as the Indenture Obligations are paid in full, and
each Guarantor shall enter into an amendment to this Guarantee, reasonably
satisfactory to the Trustee, evidencing such revival and reinstatement.
This Guarantee shall terminate with respect to each Guarantor and
shall be automatically and unconditionally released and discharged as provided
in Section 1013(b) or as otherwise provided in this Indenture.
SECTION 1315. EXECUTION OF GUARANTEE.
(a) To evidence the Guarantee, each Guarantor hereby agrees to
execute the guarantee substantially in the form set forth in Section 204, to be
endorsed on each Security authenticated and delivered by the Trustee and that
this Indenture shall be executed on behalf of each Guarantor by its Chairman of
the Board, its President, its Chief Executive Officer, Chief Operating Officer
or one of its Vice Presidents, which signature shall be attested by its
Secretary or one of its Assistant Secretaries. The signature of any of these
officers on the Securities may be manual or facsimile.
(b) Any person that was not a Guarantor on the date of this
Indenture may become a Guarantor by executing and delivering to the Trustee (i)
a supplemental indenture in form and substance satisfactory to the Trustee,
which subjects such person to the provisions (including the representations and
warranties) of this Indenture as a Guarantor, (ii) in the event that as of the
date of such supplemental indenture any registrable Securities are Outstanding,
an instrument in form and substance satisfactory to the Trustee which subjects
such person to the provisions of the Registration Rights Agreement with respect
to such Outstanding registrable Securities, and (iii) an Opinion of Counsel to
the effect that such supplemental indenture has been duly authorized and
executed by such person and constitutes the legal, valid and binding obligation
of such person (subject to such customary assumptions and exceptions as may be
acceptable to the Trustee in its reasonable discretion).
(c) If an officer whose signature is on this Indenture no longer
holds that office at the time the Trustee authenticates a Security on which this
Guarantee is endorsed, such Guarantee shall be valid nevertheless.
139
* * *
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to
be duly executed, all as of the day and year first above written.
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
By: /s/ Francois ▇▇▇▇ ▇▇▇▇▇
-----------------------------------------
Francois ▇▇▇▇ ▇▇▇▇▇, as President
and Chief Executive Officer
▇▇▇▇▇▇ PHARMACY, INC.
JCG HOLDINGS (USA), INC.
▇▇▇▇ ▇▇▇▇▇ ACQUISITION ONE, INC.
▇▇▇▇ ▇▇▇▇▇ ACQUISITION TWO, INC.
▇▇▇▇ ▇▇▇▇▇ ACQUISITION THREE, INC.
MAXI DRUG NORTH, INC.
MAXI DRUG, INC.
MAXI GREEN INC.
MC WOONSOCKET, INC.
P.J.C. DISTRIBUTION, INC.
P.J.C. OF VERMONT INC.
P.J.C. REALTY CO., INC.
PJC LEASE HOLDINGS, INC.
PJC OF CRANSTON, INC.
PJC OF EAST PROVIDENCE, INC.
PJC OF MASSACHUSETTS, INC.
PJC OF RHODE ISLAND, INC.
PJC OF WEST WARWICK, INC.
PJC REALTY MA, INC.
PJC SPECIAL REALTY HOLDINGS, INC.
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) USA, INC.
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
---------------------------------------
▇▇▇▇▇▇ ▇▇▇▇▇, as President of each
140
PJC ARLINGTON REALTY LLC
PJC DORCHESTER REALTY LLC
PJC ESSEX REALTY LLC
PJC HAVERHILL REALTY LLC
PJC HYDE PARK REALTY LLC
PJC MANCHESTER REALTY LLC
PJC MANSFIELD REALTY LLC
PJC NEW LONDON REALTY LLC
PJC NORWICH REALTY LLC
PJC PETERBOROUGH REALTY LLC
PJC PROVIDENCE REALTY LLC
PJC REVERE REALTY LLC
By: PJC SPECIAL REALTY HOLDINGS, INC., a
Delaware corporation, as Sole Member of each
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------------
▇▇▇▇▇▇ ▇▇▇▇▇, as President
MAXI DRUG SOUTH, L.P.
By: MAXI DRUG, INC., a Delaware corporation, its
General Partner
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------------
▇▇▇▇▇▇ ▇▇▇▇▇, as President
PJC REALTY N.E. LLC
▇▇▇▇ ▇▇▇▇▇ GROUP HOLDINGS (USA), LLC
By: THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) USA, INC., a
Delaware corporation, its Sole Member
By: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇
------------------------------------------
▇▇▇▇▇▇ ▇▇▇▇▇, as President
141
3090671 NOVA SCOTIA COMPANY
3090672 NOVA SCOTIA COMPANY
CENTRE D'INFORMATION RX LTEE./
RX INFORMATION CENTRE LTD.
PATERSON'S PHARMACIES LIMITED
SERVICES SECURIVOL INC.
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
--------------------------------------------
▇▇▇▇▇ ▇▇▇▇▇▇▇, as Authorized Signatory
THE BANK OF NEW YORK, as Trustee
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇
--------------------------------------------
Authorized Signatory
142
EXHIBIT A
REGULATION S CERTIFICATE
(For transfers pursuant to Section 307(a)(i) and Section 307(a)(v) of the
Indenture)
The Bank of New York
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Global Trust Services
Re: 7 5/8% Senior Notes due 2012 of The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc.
(the "Securities")
--------------------------------------------------------------------------
Reference is made to the Indenture, dated as of July 30, 2004 (the
"Indenture"), among The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized
under the laws of Quebec (the "Company"), 3090671 Nova Scotia Company, a company
organized under the laws of Nova Scotia, 3090672 Nova Scotia Company, a company
organized under the laws of Nova Scotia, ▇▇▇▇▇▇ Pharmacy, Inc., a Delaware
corporation, JCG Holdings (USA), Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇
Acquisition One, Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Three,
Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Two, Inc., a Delaware
corporation, ▇▇▇▇ ▇▇▇▇▇ Group Holdings (USA), LLC, a Delaware limited liability
company, Maxi Drug North, Inc., a Delaware corporation, Maxi Drug South, L.P., a
Delaware limited partnership, Maxi Drug, Inc., a Delaware corporation, Maxi
Green Inc., a Vermont corporation, MC Woonsocket, Inc., a Rhode Island
corporation, P.J.C. Distribution, Inc., a Delaware corporation, P.J.C. of
Vermont Inc., a Vermont corporation, P.J.C. Realty Co., Inc., a Delaware
corporation, Paterson's Pharmacies Ltd., a limited company organized under the
laws of Ontario, PJC Arlington Realty LLC, a Delaware limited liability company,
PJC Dorchester Realty LLC, a Delaware limited liability company, PJC Essex
Realty LLC, a Delaware limited liability company, PJC Haverhill Realty LLC, a
Delaware limited liability company, PJC Hyde Park Realty LLC, a Delaware limited
liability company, PJC Lease Holdings, Inc., a Delaware corporation, PJC
Manchester Realty LLC, a Delaware limited liability company, PJC Mansfield
Realty LLC, a Delaware limited liability company, PJC New London Realty LLC, a
Delaware limited liability company, PJC Norwich Realty LLC, a Delaware limited
liability company, PJC of Cranston, Inc., a Rhode Island corporation, PJC of
East Providence, Inc., a Rhode Island corporation, PJC of Massachusetts, Inc., a
Massachusetts corporation, PJC of Rhode Island, Inc., a Rhode Island
corporation, PJC of West Warwick, Inc., a Rhode Island corporation, PJC
Peterborough Realty LLC, a Delaware limited liability company, PJC Providence
Realty LLC, a Delaware limited liability company, PJC Realty MA, Inc., a
Massachusetts corporation, PJC Realty N.E. LLC, a Delaware corporation, PJC
Revere Realty LLC, a Delaware limited liability company, PJC Special Realty
Holdings, Inc., a Delaware corporation, RX Information Centre Ltd., a limited
company organized under the laws of Canada, Services Securivol Inc., a
corporation organized under the laws of Canada, The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) USA,
Inc., a Delaware corporation, Thrift Drug Inc., a Delaware corporation, and
Thrift Drug Services, Inc., a Delaware corporation, as guarantors (each a
"Guarantor," and collectively, the "Guarantors"), and The Bank of New York, a
Delaware banking corporation, as trustee (the "Trustee"). Terms used herein and
defined
A-1
in the Indenture or in Regulation S or Rule 144 under the U.S.
Securities Act of 1933 (the "Securities Act") are used herein as so defined.
This certificate relates to US$____________ principal amount of Securities,
which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner."
The Specified Securities are represented by a Global Security and are held
through the Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner.
The Owner has requested that the Specified Securities be transferred to a
person (the "Transferee") who will take delivery in the form of a Regulation S
Global Security. In connection with such transfer, the Owner hereby certifies
that, unless such transfer is being effected pursuant to an effective
registration statement under the Securities Act, it is being effected in
accordance with Rule 904 or Rule 144 under the Securities Act and with all
applicable securities laws of the states of the United States and other
jurisdictions. Accordingly, the Owner hereby further certifies as follows:
(1) RULE 904 TRANSFERS. If the transfer is being effected
in accordance with Rule 904:
(A) the Owner is not a distributor of the Securities, an
affiliate of the Company or any such distributor or a person acting on
behalf of any of the foregoing;
(B) the offer of the Specified Securities was not made to
a person in the United States;
(C) either:
(i) at the time the buy order was originated, the Transferee
was outside the United States or the Owner and any person acting on
its behalf reasonably believed that the Transferee was outside the
United States, or
(ii) the transaction is being executed in, on or through the
facilities of the Eurobond market, as regulated by the Association of
International Bond Dealers, or another designated offshore securities
market and neither the Owner nor any person acting on its behalf knows
that the transaction has been prearranged with a buyer in the United
States;
(D) no directed selling efforts have been made in the United
States by or on behalf of the Owner or any affiliate thereof;
A-2
(E) if the Owner is a dealer in securities or has received a
selling concession, fee or other remuneration in respect of the Specified
Securities, and the transfer is to occur during the Restricted Period, then
the requirements of Rule 904(c)(1) have been satisfied; and
(F) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act.
(2) RULE 144 TRANSFERS. If the transfer is being effected
pursuant to Rule 144:
(A) the transfer is occurring after a holding period of at
least one year (computed in accordance with paragraph (d) of Rule 144) has
elapsed since the Specified Securities were last acquired from the Company
or from an affiliate of the Company, whichever is later, and is being
effected in accordance with the applicable amount, manner of sale and
notice requirements of Rule 144; or
(B) the transfer is occurring after a holding period of at
least two years has elapsed since the Specified Securities were last
acquired from the Company or from an affiliate of the Company, whichever is
later, and the Owner is not, and during the preceding three months has not
been, an affiliate of the Company.
A-3
This certificate and the statements contained herein are made for
your benefit and the benefit of the Company and the Initial Purchasers.
Dated:
(Print the name of the Undersigned, as such term is
defined in the second paragraph of this certificate.)
By:
-------------------------------------------------
Name:
Title:
(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf of the
Undersigned must be stated.)
A-4
EXHIBIT B
RESTRICTED SECURITIES CERTIFICATE
(For transfers pursuant to Section 307(a)(iii) and Section 307(a)(viii) of the
Indenture)
The Bank of New York
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Global Trust Services
Re: 7 5/8% Senior Notes due 2012 of The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc.
(the "Securities")
---------------------------------------------------------------
Reference is made to the Indenture, dated as of July 30, 2004 (the
"Indenture"), among The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized
under the laws of Quebec (the "Company"), 3090671 Nova Scotia Company, a company
organized under the laws of Nova Scotia, 3090672 Nova Scotia Company, a company
organized under the laws of Nova Scotia, ▇▇▇▇▇▇ Pharmacy, Inc., a Delaware
corporation, JCG Holdings (USA), Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇
Acquisition One, Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Three,
Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Two, Inc., a Delaware
corporation, ▇▇▇▇ ▇▇▇▇▇ Group Holdings (USA), LLC, a Delaware limited liability
company, Maxi Drug North, Inc., a Delaware corporation, Maxi Drug South, L.P., a
Delaware limited partnership, Maxi Drug, Inc., a Delaware corporation, Maxi
Green Inc., a Vermont corporation, MC Woonsocket, Inc., a Rhode Island
corporation, P.J.C. Distribution, Inc., a Delaware corporation, P.J.C. of
Vermont Inc., a Vermont corporation, P.J.C. Realty Co., Inc., a Delaware
corporation, Paterson's Pharmacies Ltd., a limited company organized under the
laws of Ontario, PJC Arlington Realty LLC, a Delaware limited liability company,
PJC Dorchester Realty LLC, a Delaware limited liability company, PJC Essex
Realty LLC, a Delaware limited liability company, PJC Haverhill Realty LLC, a
Delaware limited liability company, PJC Hyde Park Realty LLC, a Delaware limited
liability company, PJC Lease Holdings, Inc., a Delaware corporation, PJC
Manchester Realty LLC, a Delaware limited liability company, PJC Mansfield
Realty LLC, a Delaware limited liability company, PJC New London Realty LLC, a
Delaware limited liability company, PJC Norwich Realty LLC, a Delaware limited
liability company, PJC of Cranston, Inc., a Rhode Island corporation, PJC of
East Providence, Inc., a Rhode Island corporation, PJC of Massachusetts, Inc., a
Massachusetts corporation, PJC of Rhode Island, Inc., a Rhode Island
corporation, PJC of West Warwick, Inc., a Rhode Island corporation, PJC
Peterborough Realty LLC, a Delaware limited liability company, PJC Providence
Realty LLC, a Delaware limited liability company, PJC Realty MA, Inc., a
Massachusetts corporation, PJC Realty N.E. LLC, a Delaware corporation, PJC
Revere Realty LLC, a Delaware limited liability company, PJC Special Realty
Holdings, Inc., a Delaware corporation, RX Information Centre Ltd., a limited
company organized under the laws of Canada, Services Securivol Inc., a
corporation organized under the laws of Canada, The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) USA,
Inc., a Delaware corporation, Thrift Drug Inc., a Delaware corporation, and
Thrift Drug Services, Inc., a Delaware corporation, as guarantors (each a
"Guarantor," and collectively, the "Guarantors"), and The Bank of New York, a
Delaware banking corporation, as trustee (the "Trustee"). Terms used herein and
defined in the Indenture or in Rule 144A or Rule 144 under the U.S. Securities
Act of 1933 (the "Securities Act") are used herein as so defined.
B-1
This certificate relates to US$_____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
ISIN No(s). If any. __________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner."
The Specified Securities are represented by a Global Security and are held
through the Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner.
The Owner has requested that the Specified Securities be transferred to a
person (the "Transferee") who will take delivery in the form of a Restricted
Security. In connection with such transfer, the Owner hereby certifies that,
unless such transfer is being effected pursuant to an effective registration
statement under the Securities Act, it is being effected in accordance with Rule
144A or Rule 144 under the Securities Act and all applicable securities laws of
the states of the United States and other jurisdictions. Accordingly, the Owner
hereby further certifies as follows:
(1) RULE 144A TRANSFERS. If the transfer is being effected in
accordance with Rule 144A:
(A) the Specified Securities are being transferred to a person
that the Owner and any person acting on its behalf reasonably believe is a
"qualified institutional buyer" within the meaning of Rule 144A, acquiring
for its own account or for the account of a qualified institutional buyer;
and
(B) the Owner and any person acting on its behalf have taken
reasonable steps to ensure that the Transferee is aware that the Owner may
be relying on Rule 144A in connection with the transfer; and
(2) RULE 144 TRANSFERS. If the transfer is being effected
pursuant to Rule 144:
(A) the transfer is occurring after a holding period of at
least one year (computed in accordance with paragraph (d) of Rule 144) has
elapsed since the Specified Securities were last acquired from the Company
or from an affiliate of the Company, whichever is later, and is being
effected in accordance with the applicable amount, manner of sale and
notice requirements of Rule 144; or
(B) the transfer is occurring after a holding period of at
least two years has elapsed since the Specified Securities were last
acquired from the Company or from an affiliate of the Company, whichever is
later, and the Owner is not, and during the preceding three months has not
been, an affiliate of the Company.
B-2
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers.
Dated:
(Print the name of the Undersigned, as such term is
defined in the second paragraph of this certificate.)
By:
---------------------------------------------------
Name:
Title:
(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf of the
Undersigned must be stated.)
B-3
EXHIBIT C
INSTITUTIONAL ACCREDITED INVESTOR CERTIFICATE
(For transfers pursuant to Section 307(a)(ii) and Section 307(a)(iv) of the
Indenture)
The Bank of New York
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Global Trust Services
Re: 7 5/8% Senior Notes due 2012 of The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc.
(the "Securities")
---------------------------------------------------------------
Reference is made to the Indenture, dated as of July 30, 2004 (the
"Indenture"), among The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized
under the laws of Quebec (the "Company"), 3090671 Nova Scotia Company, a company
organized under the laws of Nova Scotia, 3090672 Nova Scotia Company, a company
organized under the laws of Nova Scotia, ▇▇▇▇▇▇ Pharmacy, Inc., a Delaware
corporation, JCG Holdings (USA), Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇
Acquisition One, Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Three,
Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Two, Inc., a Delaware
corporation, ▇▇▇▇ ▇▇▇▇▇ Group Holdings (USA), LLC, a Delaware limited liability
company, Maxi Drug North, Inc., a Delaware corporation, Maxi Drug South, L.P., a
Delaware limited partnership, Maxi Drug, Inc., a Delaware corporation, Maxi
Green Inc., a Vermont corporation, MC Woonsocket, Inc., a Rhode Island
corporation, P.J.C. Distribution, Inc., a Delaware corporation, P.J.C. of
Vermont Inc., a Vermont corporation, P.J.C. Realty Co., Inc., a Delaware
corporation, Paterson's Pharmacies Ltd., a limited company organized under the
laws of Ontario, PJC Arlington Realty LLC, a Delaware limited liability company,
PJC Dorchester Realty LLC, a Delaware limited liability company, PJC Essex
Realty LLC, a Delaware limited liability company, PJC Haverhill Realty LLC, a
Delaware limited liability company, PJC Hyde Park Realty LLC, a Delaware limited
liability company, PJC Lease Holdings, Inc., a Delaware corporation, PJC
Manchester Realty LLC, a Delaware limited liability company, PJC Mansfield
Realty LLC, a Delaware limited liability company, PJC New London Realty LLC, a
Delaware limited liability company, PJC Norwich Realty LLC, a Delaware limited
liability company, PJC of Cranston, Inc., a Rhode Island corporation, PJC of
East Providence, Inc., a Rhode Island corporation, PJC of Massachusetts, Inc., a
Massachusetts corporation, PJC of Rhode Island, Inc., a Rhode Island
corporation, PJC of West Warwick, Inc., a Rhode Island corporation, PJC
Peterborough Realty LLC, a Delaware limited liability company, PJC Providence
Realty LLC, a Delaware limited liability company, PJC Realty MA, Inc., a
Massachusetts corporation, PJC Realty N.E. LLC, a Delaware corporation, PJC
Revere Realty LLC, a Delaware limited liability company, PJC Special Realty
Holdings, Inc., a Delaware corporation, RX Information Centre Ltd., a limited
company organized under the laws of Canada, Services Securivol Inc., a
corporation organized under the laws of Canada, The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) USA,
Inc., a Delaware corporation, Thrift Drug Inc., a Delaware corporation, and
Thrift Drug Services, Inc., a Delaware corporation, as guarantors (each a
"Guarantor," and collectively, the "Guarantors"), and The Bank of New York, a
Delaware banking corporation, as trustee (the "Trustee"). Terms used herein and
defined in the Indenture are used herein as so defined.
C-1
We are delivering this letter in connection with the proposed transfer of
$_____________ principal amount of Securities.
We, the undersigned, hereby confirm that:
(i) we are an "accredited investor" within the meaning of Rule
501(a)(1), (2) or (3) under the Securities Act of 1933, as amended (the
"Securities Act"), or an entity in which all of the equity owners are accredited
investors within the meaning of Rule 501(a)(1), (2) or (3) under the Securities
Act (an "Institutional Accredited Investor");
(ii) the purchase of the Securities by us is for our own account or for
the account of one or more other Institutional Accredited Investors or as
fiduciary for the account of one or more trusts, each of which is an "accredited
investor" within the meaning of Rule 501(a)(7) under the Securities Act and for
each of which we exercise sole investment discretion or (B) we are a "bank,"
within the meaning of Section 3(a)(2) of the Securities Act, or a "savings and
loan association" or other institution described in Section 3(a)(5)(A) of the
Securities Act that is acquiring the Securities as fiduciary for the account of
one or more institutions for which we exercise sole investment discretion;
(iii) we have such knowledge and experience in financial and business
matters that we are capable of evaluating the merits and risks of purchasing the
Securities; and
(iv) we are not acquiring the Securities with a view to distribution
thereof or with any present intention of offering or selling the Securities,
except as permitted below; provided that the disposition of our property and
property of any accounts for which we are acting as fiduciary shall remain at
all times within our control.
We understand that the Securities were originally offered and sold in a
transaction not involving any public offering within the United States within
the meaning of the Securities Act and that the Securities have not been
registered under the Securities Act, and we agree, on our own behalf and on
behalf of each account for which we acquire any Securities, that if in the
future we decide to resell or otherwise transfer such Securities prior to the
date (the "Resale Restriction Termination Date") which is two years after the
later of the original issuance of the Securities and the last date on which the
Company or an affiliate of the Company was the owner of the Security, such
Securities may be resold or otherwise transferred only (i) to the Company or any
subsidiary thereof, or (ii) for as long as the Securities are eligible for
resale pursuant to Rule 144A, to a person it reasonably believes is a "qualified
institutional buyer" (as defined in Rule 144A under the Securities Act) that
purchases for its own account or for the account of a qualified institutional
buyer to which notice is given that the transfer is being made in reliance on
Rule 144A, or (iii) to an Institutional Accredited Investor that is acquiring
the Security for its own account, or for the account of such Institutional
Accredited Investor for investment purposes and not with a view to, or for offer
or sale in connection with, any distribution in violation of the Securities Act,
or (iv) outside the United States in accordance with Rule 904 of Regulation S
under the Securities Act, or (v) pursuant to another available exemption from
registration under the Securities Act (if applicable), or (vi) pursuant to a
registration statement which has been declared effective under the Securities
Act and, in each case, in accordance with any applicable securities laws of any
State of the United States or any other applicable jurisdiction and in
accordance with the legends set forth on the Securities. We further agree to
provide any person purchasing any of the Securities other than pursuant to
clause (vi) above from us a notice advising such purchaser that resales of such
securities are restricted as stated herein. We understand that the trustee or
the transfer agent, as the case may be, for the Securities will not be required
to accept for registration of transfer
C-2
any Securities pursuant to (iii), (iv) or (v) above except upon presentation of
evidence satisfactory to the Company that the foregoing restrictions on transfer
have been complied with. We further understand that any Securities are
represented by a Global Security and are held through the Depositary or an Agent
Member in the name of the undersigned, as or on behalf of the owner and that
such Global Security will bear a legend reflecting the substance of this
paragraph other than certificates representing Securities transferred pursuant
to clause (vi) above.
C-3
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers.
Dated:
(Print the name of the Institutional Accredited Investor)
By:
-------------------------------------------------
Name:
Title:
C-4
EXHIBIT D
UNRESTRICTED SECURITIES CERTIFICATE
(For removal of Securities Act Legends pursuant to Section 307(b) of the
Indenture)
The Bank of New York
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇ - ▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇
Attention: Global Trust Services
Re: 7 5/8% Senior Notes due 2012 of The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc.
(the "Securities")
---------------------------------------------------------------
Reference is made to the Indenture, dated as of July 30, 2004 (the
"Indenture"), among The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized
under the laws of Quebec (the "Company"), 3090671 Nova Scotia Company, a company
organized under the laws of Nova Scotia, 3090672 Nova Scotia Company, a company
organized under the laws of Nova Scotia, ▇▇▇▇▇▇ Pharmacy, Inc., a Delaware
corporation, JCG Holdings (USA), Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇
Acquisition One, Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Three,
Inc., a Delaware corporation, ▇▇▇▇ ▇▇▇▇▇ Acquisition Two, Inc., a Delaware
corporation, ▇▇▇▇ ▇▇▇▇▇ Group Holdings (USA), LLC, a Delaware limited liability
company, Maxi Drug North, Inc., a Delaware corporation, Maxi Drug South, L.P., a
Delaware limited partnership, Maxi Drug, Inc., a Delaware corporation, Maxi
Green Inc., a Vermont corporation, MC Woonsocket, Inc., a Rhode Island
corporation, P.J.C. Distribution, Inc., a Delaware corporation, P.J.C. of
Vermont Inc., a Vermont corporation, P.J.C. Realty Co., Inc., a Delaware
corporation, Paterson's Pharmacies Ltd., a limited company organized under the
laws of Ontario, PJC Arlington Realty LLC, a Delaware limited liability company,
PJC Dorchester Realty LLC, a Delaware limited liability company, PJC Essex
Realty LLC, a Delaware limited liability company, PJC Haverhill Realty LLC, a
Delaware limited liability company, PJC Hyde Park Realty LLC, a Delaware limited
liability company, PJC Lease Holdings, Inc., a Delaware corporation, PJC
Manchester Realty LLC, a Delaware limited liability company, PJC Mansfield
Realty LLC, a Delaware limited liability company, PJC New London Realty LLC, a
Delaware limited liability company, PJC Norwich Realty LLC, a Delaware limited
liability company, PJC of Cranston, Inc., a Rhode Island corporation, PJC of
East Providence, Inc., a Rhode Island corporation, PJC of Massachusetts, Inc., a
Massachusetts corporation, PJC of Rhode Island, Inc., a Rhode Island
corporation, PJC of West Warwick, Inc., a Rhode Island corporation, PJC
Peterborough Realty LLC, a Delaware limited liability company, PJC Providence
Realty LLC, a Delaware limited liability company, PJC Realty MA, Inc., a
Massachusetts corporation, PJC Realty N.E. LLC, a Delaware corporation, PJC
Revere Realty LLC, a Delaware limited liability company, PJC Special Realty
Holdings, Inc., a Delaware corporation, RX Information Centre Ltd., a limited
company organized under the laws of Canada, Services Securivol Inc., a
corporation organized under the laws of Canada, The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) USA,
Inc., a Delaware corporation, Thrift Drug Inc., a Delaware corporation, and
Thrift Drug Services, Inc., a Delaware corporation, as guarantors (each a
"Guarantor," and collectively, the "Guarantors"), and The Bank of New York, a
Delaware banking corporation, as trustee (the "Trustee"). Terms used herein and
defined in the Indenture or in Rule 144A or Rule 144 under the U.S. Securities
Act of 1933 (the "Securities Act") are used herein as so defined.
D-1
This certificate relates to US$_____________ principal amount of
Securities, which are evidenced by the following certificate(s) (the "Specified
Securities"):
CUSIP No(s). ___________________________
CERTIFICATE No(s). _____________________
The person in whose name this certificate is executed below (the
"Undersigned") hereby certifies that either (i) it is the sole beneficial owner
of the Specified Securities or (ii) it is acting on behalf of all the beneficial
owners of the Specified Securities and is duly authorized by them to do so. Such
beneficial owner or owners are referred to herein collectively as the "Owner."
If the Specified Securities are represented by a Global Security, they are held
through the Depositary or an Agent Member in the name of the Undersigned, as or
on behalf of the Owner. If the Specified Securities are not represented by a
Global Security, they are registered in the name of the Undersigned, as or on
behalf of the Owner.
The Owner has requested that the Specified Securities be exchanged for
Securities bearing no Private Placement Legend pursuant to Section 307(b) of the
Indenture. In connection with such exchange, the Owner hereby certifies that the
exchange is occurring after a holding period of at least two years (computed in
accordance with paragraph (d) of Rule 144) has elapsed since the Specified
Securities were last acquired from the Company or from an affiliate of the
Company, whichever is later, and the Owner is not, and during the preceding
three months has not been, an affiliate of the Company. The Owner also
acknowledges that any future transfers of the Specified Securities must comply
with all applicable securities laws of the states of the United States and other
jurisdictions.
D-2
This certificate and the statements contained herein are made for your
benefit and the benefit of the Company and the Initial Purchasers.
Dated:
(Print the name of the Undersigned, as such term is
defined in the second paragraph of this certificate.)
By:
----------------------------------------------------
Name:
Title:
(If the Undersigned is a corporation, partnership or
fiduciary, the title of the person signing on behalf of the
Undersigned must be stated.)
D-3
EXHIBIT E
SUPPLEMENTAL INDENTURE
Supplemental Indenture (this "SUPPLEMENTAL INDENTURE"), dated as of [ ],
2004, by and among The ▇▇▇▇ ▇▇▇▇▇ Group (PJC) Inc., a corporation organized
under the laws of Quebec (the "Company"), the Company's subsidiaries listed on
Schedule A hereto (collectively, the "NEW GUARANTORS"), the Company's
subsidiaries listed on Schedule B hereto (collectively the "EXISTING
GUARANTORS") and The Bank of New York, a Delaware banking corporation, as
trustee under the Indenture referred to below (the "TRUSTEE").
W I T N E S S E T H
WHEREAS, the Company, the Existing Guarantors and the Trustee are parties
to an indenture (the "INDENTURE"), dated as of July 30, 2004 providing for the
issuance of 7 5/8% Senior Securities due 2012 (the "SECURITIES");
WHEREAS, the Indenture provides that, without the consent of any Holders,
the Company and the Exiting Guarantors, when authorized by a Board Resolution,
and the Trustee, at any time and from time to time, may enter into indentures
supplemental thereto or agreements or other instruments with respect to any
Guarantee, in form and substance satisfactory to the Trustee, for the purpose of
adding a Guarantor;
WHEREAS, each New Guarantor wishes to guarantee the Securities pursuant to
the Indenture;
WHEREAS, pursuant to the Indenture the Company, the Existing Guarantors,
the New Guarantors and the Trustee have agreed to enter into this Supplemental
Indenture for the purposes stated herein; and
WHEREAS, all things necessary have been done to make this Supplemental
Indenture, when executed and delivered by the Company, the Existing Guarantors,
and each New Guarantor, the legal, valid and binding agreement of the Company,
the Existing Guarantors, and each New Guarantor, in accordance with its terms.
NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt of which is hereby acknowledged, the
Company, each New Guarantor, the Existing Guarantors and the Trustee mutually
covenant and agree for the equal and ratable benefit of the Holders of the
Securities as follows:
1. CAPITALIZED TERMS. Capitalized terms used herein without definition
shall have the meanings assigned to them in the Indenture.
2. GUARANTEE. Each New Guarantor hereby agrees to guarantee the Indenture
and the Securities related thereto pursuant to the terms and conditions of
Article Fourteen of the Indenture, such Article Fourteen being incorporated by
reference herein as if set forth at length
E-1
herein (each such guarantee, a "GUARANTEE") and such New Guarantor agrees to be
bound as a Guarantor under the Indenture as if it had been an initial signatory
thereto.
3. NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES OR
STOCKHOLDERS. No director, officer, employee, member or stockholder of any New
Guarantor, as such, will have any liability for any obligations of the Company,
the New Guarantors or the Existing Guarantors under the Securities, the
Indenture, the Guarantees, or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of Securities by
accepting a Security waives and releases the Company and each New Guarantor from
all such liability. The waiver and release are part of the consideration for
issuance of the Securities.
4. GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING
EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.
5. COUNTERPARTS. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of them
together represent the same agreement.
6. EFFECT OF HEADINGS. The section headings herein are for convenience
only and shall not affect the construction hereof.
7. THE TRUSTEE. The Trustee shall not be responsible in any manner
whatsoever for or in respect of the validity or sufficiency of this Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Company, the New Guarantors and the Existing
Guarantors.
E-2
IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture
to be duly executed and attested, all as of the date first above written.
Dated: ____________, 2004
THE ▇▇▇▇ ▇▇▇▇▇ GROUP (PJC) INC.
By:
-------------------------------
EACH GUARANTOR LISTED ON
SCHEDULE A HERETO
By:
-------------------------------
EACH GUARANTOR LISTED ON
SCHEDULE B HERETO
By:
-------------------------------
THE BANK OF NEW YORK, as Trustee
By:
-------------------------------
Authorized Signator
E-3