SECOND SUPPLEMENTAL
INDENTURE
Supplementing that
Certain
THE GUARANTORS PARTIES
HERETO
6.250% SENIOR NOTES DUE
2014
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
|
ARTICLE I
Issuance of Securities
|
|
|
|
|
|
|
SECTION 1.1. Issuance of Notes; Principal
Amount; Maturity; Title
|
|
|
1
|
|
|
|
|
|
2
|
|
SECTION 1.3. Relationship with
Indenture
|
|
|
3
|
|
|
|
|
|
|
|
|
ARTICLE II
Definitions and Other Provisions of General Application
|
|
|
|
|
|
|
|
|
|
|
3
|
|
|
|
|
|
|
|
|
ARTICLE III
Security Forms
|
|
|
|
|
|
|
SECTION 3.1. Form Generally
|
|
|
13
|
|
SECTION 3.2. Form of Note
|
|
|
13
|
|
SECTION 3.3. Form of Purchase Notice
|
|
|
19
|
|
SECTION 3.4. Form of Guarantee
|
|
|
20
|
|
|
|
|
|
|
|
|
ARTICLE IV
Remedies
|
|
|
|
|
|
|
SECTION 4.1. Events of Default
|
|
|
21
|
|
SECTION 4.2. Acceleration of Maturity;
Rescission and Annulment
|
|
|
23
|
|
|
|
|
|
|
|
|
ARTICLE V
Redemption of Securities
|
|
|
|
|
|
|
SECTION 5.1. Optional Redemption
|
|
|
24
|
|
SECTION 5.2. Optional Redemption
Procedures
|
|
|
24
|
|
SECTION 5.3. Special Mandatory
Redemption
|
|
|
26
|
|
SECTION 5.4. Special Mandatory Redemption
Procedures
|
|
|
27
|
|
|
|
|
|
|
|
|
ARTICLE VI
Particular Covenants
|
|
|
|
|
|
|
|
|
|
|
28
|
|
i
|
|
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
SECTION 6.2. Sale and Lease-Back
Transactions
|
|
|
30
|
|
SECTION 6.3. Right to Require Repurchase Upon a
Change of Control Triggering Event
|
|
|
30
|
|
SECTION 6.4. Additional Guarantors
|
|
|
32
|
|
|
|
|
|
|
|
|
ARTICLE VII
Supplemental Indentures
|
|
|
|
|
|
|
SECTION 7.1. Supplemental Indentures without
Consent of Holders of Notes
|
|
|
33
|
|
SECTION 7.2. Supplemental Indentures with
Consent of Holders of Notes
|
|
|
34
|
|
|
|
|
|
|
|
|
ARTICLE VIII
Consolidation, Merger, Conveyance, Transfer or Lease
|
|
|
|
|
|
|
SECTION 8.1. Company May Consolidate, Etc. on
Certain Terms
|
|
|
35
|
|
SECTION 8.2. Successor Corporation
Substituted
|
|
|
36
|
|
|
|
|
|
|
|
|
ARTICLE IX
Guarantors
|
|
|
|
|
|
|
|
|
|
|
36
|
|
|
|
|
|
37
|
|
SECTION 9.3. Guarantee of Payment
|
|
|
37
|
|
SECTION 9.4. No Discharge or Diminishment of
Guarantee
|
|
|
38
|
|
SECTION 9.5. Defenses of Company
Waived
|
|
|
38
|
|
SECTION 9.6. Continued Effectiveness
|
|
|
38
|
|
|
|
|
|
38
|
|
|
|
|
|
39
|
|
SECTION 9.9. Subordination
|
|
|
39
|
|
SECTION 9.10. Release of Guarantor
|
|
|
39
|
|
SECTION 9.11. Limitation of Guarantor’s
Liability
|
|
|
40
|
|
SECTION 9.12. Contribution from Other
Guarantors
|
|
|
41
|
|
SECTION 9.13. No Obligation to Take Action
Against the Company
|
|
|
41
|
|
SECTION 9.14. Execution and Delivery of the
Guarantee
|
|
|
41
|
|
SECTION 9.15. Successor Guarantor
|
|
|
42
|
|
|
|
|
|
|
|
|
ARTICLE X
Discharge of Obligations Under the Second Supplemental Indenture,
the Indenture and
the Notes; Defeasance
|
|
|
|
|
|
|
SECTION 10.1. Termination of the Obligations of
the Company
|
|
|
42
|
|
SECTION 10.2. Repayment to Company
|
|
|
43
|
|
SECTION 10.3. Amendment to Section 1302;
Survival of Provisions of Second Supplemental Indenture upon
Defeasance
|
|
|
43
|
|
This
Second Supplemental Indenture, dated as of June 9, 2009 (the
“ Second Supplemental Indenture ”), among
Express Scripts, Inc., a corporation duly organized and existing
under the laws of the State of Delaware, having its principal
office at One Express Way, St. Louis, Missouri (herein called the
“ Company ”), the Guarantors party hereto and
Union Bank, N.A., a national banking association, as Trustee
hereunder (herein called the “ Trustee ”),
supplements that certain Indenture, dated as of June 9, 2009,
among the Company, the Guarantors and the Trustee (the “
Indenture ”).
A.
The Company has duly authorized the execution and delivery of the
Indenture to provide for the issuance from time to time of its
unsecured debentures, notes, or other evidences of indebtedness to
be issued in one or more series as provided for in the
Indenture.
B.
Each of the Guarantors has duly authorized the execution and
delivery of the Indenture and the Guarantees, the form of which is
attached hereto, in order to fully and unconditionally guarantee
the Company’s obligations under the Indenture.
C.
The Indenture provides that the Securities of each series shall be
in substantially the form set forth in the Indenture, or in such
other form as may be established by or pursuant to a Board
Resolution or in one or more supplemental indentures thereto, in
each case with such appropriate insertions, omissions,
substitutions, and other variations as are required or permitted by
the Indenture, 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 or Depositary therefor or as may, consistently therewith,
be determined by the officers executing such Securities, as
evidenced by their execution thereof.
D.
The Company and the Trustee have agreed that the Company shall
issue and deliver, and the Trustee shall authenticate, Securities
denominated “6.250% Senior Notes due 2014” pursuant to
the terms of this Second Supplemental Indenture and substantially
in the form set forth in Section 3.2 below, in each case with
such appropriate insertions, omissions, substitutions, and other
variations as are required or permitted by the Indenture and this
Second Supplemental Indenture, and with 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 or Depositary therefor or as may, consistently
herewith, be determined by the officers executing such Notes, as
evidenced by their execution of such Notes.
SECTION
1.1. Issuance of Notes; Principal Amount; Maturity;
Title.
(1) On
June 9, 2009, the Company shall issue and deliver to the
Trustee, and the Trustee shall authenticate, the Initial Notes
substantially in the form set forth in
Section 3.2 below, in each case with such
appropriate insertions, omissions, substitutions and other
variations as are required or permitted by the Indenture and this
Second Supplemental Indenture, and with 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 or Depositary therefor or as may, consistently
herewith, be determined by the officers executing such Notes, as
evidenced by their execution of such Notes.
(2) The
Initial Notes to be issued pursuant to this Second Supplemental
Indenture shall be issued in the aggregate principal amount of
$1,000,000,000 and shall mature on June 15, 2014 unless the
Notes are redeemed prior to that date as described in
Section 5.1 and 5.3. The aggregate principal amount of Initial
Notes Outstanding at any time may not exceed $1,000,000,000, except
for Notes issued, authenticated and delivered upon registration of
transfer of, or in exchange for, or in lieu of, other Notes of the
Series pursuant to Sections 304, 305, 306, 906 or 1107 of the
Indenture and except for any Notes which, pursuant to
Section 303 of the Indenture, are deemed never to have been
authenticated and delivered. The Company may without the consent of
the Holders, issue additional notes hereunder as part of the same
series and on the same terms and conditions (and having the same
Guarantors) and with the same CUSIP numbers as the Initial Notes
(“Additional Notes”); provided that if any
Additional Notes are issued at a price that causes such Additional
Notes to have “original issue discount” within the
meaning of Section 1273 of the United States Internal Revenue
Code of 1986, as amended, and regulations of the United States
Department of Treasury thereunder (the “ Code
”), such Additional Notes shall not have the same CUSIP
number as the Initial Notes.
(3) The
Notes shall be issued only in fully registered form without coupons
in minimum denominations of $2,000 and any integral multiple of
$1,000.
(4) Pursuant
to the terms hereof and Section 301 of the Indenture, the
Company hereby creates a series of Securities designated as the
“6.250% Notes due 2014” of the Company (as amended or
supplemented from time to time, that are issued under this Second
Supplemental Indenture, including both the Initial Notes and the
Additional Notes, if any, the “ Notes ”), which
Notes shall be deemed “Securities” for all purposes
under the Indenture.
(1) Interest
on a Note will accrue at the per annum rate of 6.250% (the “
Note Interest Rate ”), from and including the date
specified on the face of such Note until the principal thereof is
paid, deemed paid, or made available for payment and, in each case,
will be paid on the basis of a 360-day year comprised of twelve
30-day months.
(2) The
Company shall pay interest on the Notes semi-annually in arrears on
June 15 and December 15 of each year (each, an “
Interest Payment Date ”), commencing December 15,
2009.
2
(3) Interest
shall be paid on each Interest Payment Date to the registered
Holders of the Notes after the close of business on the Regular
Record Date.
(4) Amounts
due on the Maturity Date or earlier Redemption Date of the Notes
will be payable at the corporate trust office of the Trustee at 551
Madison Avenue, 11th Floor, New York, NY 10022. The Company may
make payment of interest on an Interest Payment Date in respect of
Notes in certificated form by check mailed to the address of the
Person entitled to the payment as it appears in the Security
Register or by transfer to an account maintained by the payee with
a bank located in the United States. The Company shall make
payments of principal, premium, if any, and interest in respect of
Notes in book-entry form to DTC in immediately available funds,
while disbursement of such payments to owners of beneficial
interests in Notes in book-entry form will be made in accordance
with the procedures of DTC and its participants in effect from time
to time.
(5) Neither
the Company nor the Trustee shall impose any service charge for any
transfer or exchange of a Note. However, the Company may ask
Holders of the Notes to pay any taxes or other governmental charges
in connection with a transfer or exchange of Notes.
(6) If
any Interest Payment Date, Stated Maturity Date or Redemption Date
falls on a day that is not a Business Day in the City of New York,
the Company will make the required payment of principal, premium,
if any, and/or interest on the next succeeding Business Day as if
it were made on the date payment was due, and no interest will
accrue on the amount so payable for the period from and after that
Interest Payment Date, the Stated Maturity Date or earlier
Redemption Date, as the case may be, to such next succeeding
Business Day.
SECTION
1.3. Relationship with Indenture.
The
terms and provisions contained in the Indenture will constitute,
and are hereby expressly made, a part of this Second Supplemental
Indenture. However, to the extent any provision of the Indenture
conflicts with the express provisions of this Second Supplemental
Indenture, the provisions of this Second Supplemental Indenture
will govern and be controlling.
Definitions and Other Provisions
of General Application
SECTION
2.1. Definitions.
The
terms defined in this Section 2.1 (except as herein otherwise
expressly provided or unless the context of this Second
Supplemental Indenture otherwise requires) for all purposes of this
Second Supplemental Indenture and of any indenture supplemental
hereto have the respective meanings specified in this
Section 2.1. All other terms used in this Second Supplemental
Indenture that are defined in the Indenture or the Trust Indenture
Act, either directly or by reference therein (except as herein
otherwise
3
expressly
provided or unless the context of this Second Supplemental
Indenture otherwise requires), have the respective meanings
assigned to such terms in the Indenture or the Trust Indenture Act,
as the case may be, as in force at the date of this Second
Supplemental Indenture as originally executed; provided that
any term that is defined in both the Indenture and this Second
Supplemental Indenture shall have the meaning assigned to such term
in this Second Supplemental Indenture.
“
2012 Notes Supplemental Indenture ” means the First
Supplemental Indenture, dated as of June 9, 2009, among the
Company, the Guarantors and the Trustee related to the 2012
Notes.
“
2012 Notes ” means the 5.250% Senior Notes due 2012 as
amended or supplemented from time to time, that are issued under
the 2012 Notes Supplemental Indenture.
“
2019 Notes Supplemental Indenture ” means the Third
Supplemental Indenture, dated as of June 9, 2009, among the
Company, the Guarantors and the Trustee related to the 2019
Notes.
“
2019 Notes ” means the 7.250% Senior Notes due 2019 as
amended or supplemented from time to time, that are issued under
the 2019 Notes Supplemental Indenture.
“
Acquisition ” means the acquisition of the Pharmacy
Benefit Management Business of WellPoint, Inc., including all of
the shares and equity interest of the Target Companies by the
Company as contemplated by the Acquisition Agreement.
“
Acquisition Agreement ” means the Stock and Interest
Purchase Agreement between the Company and WellPoint, Inc., dated
April 9, 2009.
“
Additional Notes ” has the meaning specified in
Section 1.1(2).
“
Affiliate ” of any specified Person means any other
Person directly or indirectly controlling or controlled by or under
direct or indirect common control with 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 the 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 DTC, Euroclear and
Clearstream, in each case to the extent applicable to such
transaction and as in effect from time to time.
“
Applied Amounts ” means an amount (which may be
conclusively determined by the Board of Directors) equal to the
greater of (i) capitalized rent with respect to the applicable
machinery and/or equipment and (ii) the fair value of
the
4
applicable
machinery and/or equipment, that is applied within 180 days of
the applicable transaction or transactions to repayment of the
Notes or to the repayment of any Indebtedness which, in accordance
with GAAP, is classified as long-term debt and that is on parity
with the Notes.
“
Below Investment Grade Rating Event ” means the Notes
are not rated, or are rated below an Investment Grade Rating by
each of the Rating Agencies on any date during the period
commencing 60 days prior to the public notice of an
arrangement that could result in a Change of Control until the end
of the 60-day period following public notice of the occurrence of
the Change of Control (which 60-day period shall be extended so
long as the rating of the Notes is under publicly announced
consideration for possible downgrade by either of the Rating
Agencies); provided that a Below Investment Grade Rating
Event otherwise arising by virtue of a particular reduction in, or
termination of, any rating shall not be deemed to have occurred in
respect to a particular Change of Control (and thus shall not be
deemed a Below Investment Grade Rating Event for purposes of a
Change of Control Triggering Event) if the Rating Agency or Rating
Agencies ceasing to rate the Notes or making the reduction in
rating to which this definition would otherwise apply do not
announce or publicly confirm or inform the Trustee in writing at
its request that the termination or reduction was the result, in
whole or in part, of any event or circumstance comprised of or
arising as a result of, or in respect of, the applicable Change of
Control (whether or not the applicable Change of Control shall have
occurred at the time of the Below Investment Grade Rating
Event).
“
Beneficial Owner ” shall mean any Person who is
considered a beneficial owner of a security for purposes of
Rule 13d-3 promulgated of the Exchange Act.
“
Bridge Loan ” means the proposed bridge financing to
be used to finance the Acquisition incurred on or prior to the date
of the Acquisition.
“
Capital Stock ” of any Person means any and all
shares, interests, participations or other equivalents (however
designated) of capital stock of such Person and all warrants or
options to acquire such capital stock.
“
Change of Control Offer ” has the meaning specified in
Section 6.3(1).
“
Change of Control Payment ” has the meaning specified
in Section 6.3(1).
“Change of Control Payment Date” has the meaning
specified in Section 6.3(2)(iii).
“
Change of Control Triggering Event ” means the
occurrence of both a Change of Control and a Below Investment Grade
Rating Event.
“
Change of Control ” means the occurrence of any of the
following: (1) the direct or indirect sale, transfer,
conveyance or other disposition (other than by way of merger or
consolidation), in one or a series of related transactions, of all
or substantially all of the properties and assets of the Company
and its Subsidiaries taken as a whole to any Person or Group other
than the Company or one of its Subsidiaries; (2) the
approval
5
by the holders
of the Company’s Common Stock of any plan or proposal for the
liquidation or dissolution of the Company (whether or not otherwise
in compliance with the provisions of this Second Supplemental
Indenture and the Indenture); (3) the consummation of any
transaction (including any merger or consolidation) the result of
which is that any Person or Group becomes the Beneficial Owner
directly or indirectly, of more than 50% of the then outstanding
number of shares of the Company’s Voting Stock; (4) the
Company consolidates with or merges with or into any Person, or any
Person consolidates with, or mergers with or into, the Company,
pursuant to a transaction in which any of the outstanding Voting
Stock of the Company or such other Person is converted into or
exchanged for cash, securities or other property (except when
Voting Stock of the Company is converted into, or exchanged for, at
least a majority of the Voting Stock of the surviving Person
immediately after giving effect to the transaction); or
(5) the first day on which a majority of the members of the
Company’s Board of Directors are not Continuing
Directors.
“
Clearstream ” means Clearstream Banking,
S.A.
“
Code ” has the meaning specified in
Section 1.1(2).
“
Common Stock ” shall mean shares of the
Company’s Common Stock, $0.01 par value per share, as they
exist on the date of this Second Supplemental Indenture or any
other shares of Capital Stock of the Company into which the Common
Stock shall be reclassified or changed.
“
Comparable Treasury Issue ” means the United States
Treasury security or securities selected by an Independent
Investment Banker as having an actual or interpolated maturity
comparable to the remaining term of the Notes being redeemed that
would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate
debt securities of a comparable maturity to the remaining term of
such Notes.
“
Comparable Treasury Price ” means with respect to any
Redemption Date: (i) the average of three Reference Treasury
Dealer Quotations for the Redemption Date, after excluding the
highest and lowest such Reference Treasury Dealer Quotations, or
(ii) if the Trustee obtains fewer than four Reference Treasury
Dealer Quotations, the average of all Reference Treasury Dealer
Quotations for the Redemption Date so obtained.
“
Consolidated Net Worth ” means, at any date, the sum
of all amounts which would be included under stockholders’
equity on a consolidated balance sheet of the Company and its
Subsidiaries determined in accordance with GAAP on such date or, in
the event such date is not a fiscal quarter end, as of the
immediately preceding fiscal quarter end.
“
Continuing Directors ” means, as of any date of
determination, any member of the Company’s Board of Directors
who (1) was a member of the Board of Directors on the date of
the issuance of the Initial Notes; or (2) was nominated
for
6
election or
elected to the Board of Directors with the approval of at least a
majority of the Continuing Directors who were members of the Board
of Directors at the time of such nomination or election (either by
a specific vote or by approval of the Company’s proxy
statement in which such member was named as a nominee for election
as a director, without objection to such nomination).
“
Covenant Defeasance ” has the meaning set forth in the
Indenture except that the covenants included in such definition
shall include Articles VI, VII, VIII and IX of this Second
Supplemental Indenture and Article Fifteen of the
Indenture.
“
Default ” means any event that is, or after notice or
passage of time, or both, would be, an Event of Default.
“
Domestic Subsidiary ” means a Subsidiary organized
under the laws of a jurisdiction located in the United States of
America, or any state thereof or the District of
Columbia.
“
DTC ” means The Depository Trust Company, a New York
corporation.
“
Effective Date ” means the closing date of the
Acquisition.
“
Environmental Laws ” means any and all current or
future legally-binding statutes, ordinances, orders, rules,
regulations, judgments, permits, licenses, authorizations, plans,
directives, consent orders or consent decrees of or from any
federal, state or local governmental authority, agency or court, or
any other binding requirements of governmental authorities relating
to (i) the protection of the environment, (ii) any
activity, event or occurrence involving hazardous materials, or
(iii) occupational safety and health, industrial hygiene, land
use or, as relating to the environment, the protection of human,
plant or animal health or welfare, in any manner applicable to the
Company or any of its Subsidiaries or any of their respective
properties or facilities.
“
ERISA ” means the Employee Retirement Income Security
Act of 1974, as amended from time to time.
“
Euroclear ” means Euroclear Bank, S.A./N.V., as
operator of the Euroclear system.
“
Event of Default ” has the meaning specified in
Section 4.1.
“
Existing Credit Facility ” means that certain Credit
Agreement dated as of October 14, 2005 among the Company and
the lenders and agents from time to time party thereto, as amended,
restated, supplemented, replaced, refinanced or otherwise modified
from time to time.
“
Foreign Subsidiary ” means any Subsidiary other than a
Domestic Subsidiary.
7
“
GAAP ” means generally accepted accounting principles
set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such
other entity as may be approved by a significant segment of the
accounting profession of the United States, as in effect on the
date of this Second Supplemental Indenture.
“
Group ” means any group of related Persons for
purposes of Section 13(d) of the Exchange Act.
“
Guarantee ” has the meaning specified in
Section 9.1.
“
Guarantor ” means (1) certain of the
Company’s Wholly-Owned Subsidiaries, named on the signature
pages hereto, (2) upon the closing of the Acquisition, the
Target Companies and (3) in the future, certain Subsidiaries
that become Guarantors pursuant to Section 6.4, but in each
case excluding Persons who cease to be obligated under the
Guarantee in accordance with the Second Supplemental
Indenture.
“
Hazardous Materials ” means (i) any chemical,
material or substance defined as or included in any environmental
law in the definition of “hazardous substances,”
“hazardous wastes,” “hazardous materials,”
“extremely hazardous waste,” “acutely hazardous
waste,” “radioactive waste,” “biohazardous
waste,” “pollutant,” “toxic
pollutant,” “contaminant,” “restricted
hazardous waste,” “infectious waste,”
“toxic substances,” or any other term or expression
intended to define, list or classify substances by reason of
properties harmful to health, safety or the indoor or outdoor
environment (including harmful properties such as ignitability,
corrosivity, reactivity, carcinogenicity, toxicity, reproductive
toxicity, “TCLP toxicity” or “EP toxicity”
or words of similar import under any applicable Environmental
Laws); (ii) any oil, petroleum, petroleum fraction or
petroleum derived substance; (iii) any drilling fluids,
produced waters and other wastes associated with the exploration,
development or production of crude oil, natural gas or geothermal
resources; (iv) any flammable substances or explosives;
(v) any radioactive materials; (vi) any friable
asbestos-containing materials; (vii) urea formaldehyde foam
insulation; (viii) electrical equipment which contains any oil or
dielectric fluid containing polychlorinated biphenyls;
(ix) pesticide; and (x) any other chemical, material or
substance, exposure to which is prohibited, limited or regulated by
any governmental authority pursuant to Environmental
Laws.
“
Indebtedness ” means, with respect to any Person, at a
particular time, all items of such Person which constitute, without
duplication, (a) indebtedness for borrowed money (including
capital leases) or the deferred purchase price of Property (other
than accounts payable, deferred compensation, customer advances,
earn-outs, agreements providing for the holdback of up to 10% of
the purchase price relating to an acquisition and accrued expenses
incurred in the ordinary course of business), (b) indebtedness
evidenced by notes, bonds, debentures or similar instruments, (c)
obligations with respect to any conditional sale or other title
retention agreement (excluding operating leases),
(d) indebtedness arising under acceptance facilities and the
amount available to be drawn under all letters of credit issued for
the account of such Person and, without duplication,
8
all drafts
drawn thereunder to the extent such Person shall not have
reimbursed the issuer in respect of the issuer’s payment of
such drafts, (e) all liabilities secured by any Lien (other
than carriers’, warehousemen’s, mechanics’,
repairmen’s or other like non-consensual Liens arising in the
ordinary course of business) on any Property owned by such Person
even though such Person shall not have assumed or otherwise become
liable for the payment thereof; provided that in the event
such Person shall not have assumed or otherwise become liable for
the payment thereof, the amount of such liabilities shall be deemed
to be the lesser of (i) the fair market value of the assets of
such Person subject to such Lien and (ii) the amount of the
liability secured by such Lien, (f) that portion of any obligation
of such Person, as lessee, which in accordance with GAAP is
required to be capitalized on the balance sheet of such Person,
(g) Securitized Indebtedness, and (h) all guarantees by
such Person of any of the foregoing; provided ,
however , that, notwithstanding anything to the contrary
contained herein, for purposes of this definition,
“Indebtedness” shall not include any intercompany
indebtedness between or among the Company and any of its
Subsidiaries.
“
Independent Investment Banker ” means one of the
Reference Treasury Dealers appointed by the Trustee after
consultation with the Company.
“
Initial Notes ” means Notes in an aggregate principal
amount of up to $1,000,000,000 initially issued under this Second
Supplemental Indenture in accordance with
Section 1.1(2).
“
Interest Payment Date ” has the meaning specified in
Section 1.2(2).
“
Investment Grade Rating ” means a rating of Baa3 (or
better) by Moody’s (or its equivalent under any successor
rating category of Moody’s) and a rating of BBB- (or better)
by S&P (or its equivalent under any successor rating category
of S&P), respectively, and the equivalent investment grade
credit rating from any replacement Rating Agency or Rating Agencies
selected by the Company under the circumstances permitting the
Company to select a replacement agency and in the manner for
selecting a replacement agency, in each case as set forth in the
definition of “Rating Agency.”
“
Liens ” means any lien, mortgage, pledge, assignment,
security interest, charge or encumbrance of any kind (including any
conditional sale or other title retention agreement, any lease in
the nature thereof, and any agreement to give any security
interest) and any option, trust or other preferential arrangement
having the practical effect of any of the foregoing.
“
Margin Stock ” means any “margin stock”,
as said term is defined in Regulation U of the Board of
Governors of the Federal Reserve System of the United States of
America (or any successor), as the same may be amended or
supplemented from time to time.
“
Maturity Date ” means June 15, 2014.
“
Moody’s ” shall mean Moody’s Investors
Service, Inc., a subsidiary of Moody’s Corporation, and its
successors.
9
“
NextRx, Inc. ” means NextRx, Inc., a Delaware
corporation.
“
NextRx LLC ” means NextRx, LLC, an Ohio limited
liability company.
“
NextRx Services, Inc. ” means NextRx Services, Inc., a
New York corporation.
“
NextRx Sub ” means each of NextRx Sub I, NextRx Sub II
and NextRx Sub III
“
NextRx Sub I ” means NextRx Sub I, LLC, a Delaware
limited liability company.
“
NextRx Sub II ” means NextRx Sub II, LLC, a Delaware
limited liability company.
“
NextRx Sub III ” means NextRx Sub III, LLC, a Delaware
limited liability company.
“
Note Interest Rate ” has the meaning specified in
Section 1.2(1).
“
Notes ” has the meaning specified in
Section 1.1(4).
“
Notice of Default ” means a written notice of the kind
specified in Section 4.1(4).
“
Obligations ” has the meaning specified in
Section 9.1.
“
Permitted Sale Lease-Back Transactions ” means sales
or transfers by the Company or any Subsidiary of any real property,
improvements, fixtures, machinery and/or equipment with the
intention of taking back a lease thereof; provided ,
however , that “Permitted Sale-Leaseback
Transactions” shall not include such transactions involving
machinery and/or equipment (excluding any lease for a temporary
period of not more than thirty-six months with the intent that the
use of the subject machinery and/or equipment will be discontinued
at or before the expiration of such period) relating to facilities
(a) in full operation for more than 180 days as of the
date hereof and (b) that are material to the business of the
Company and its Subsidiaries taken as a whole, to the extent that
the sum of the aggregate sale price of such machinery and/or
equipment from time to time involved in such transactions (giving
effect to payment in full under any such transaction and excluding
the Applied Amounts plus the amount of obligations and Indebtedness
from time to time secured by Liens permitted under
Section 6.1(21) herein, exceeds 15% of the Company’s
Consolidated Net Worth.
“
Person ” includes any individual, corporation,
partnership, limited partnership, general partnership, limited
liability company, limited liability partnership, business trust,
association, joint stock company, joint venture, trust, trust
company, bank, association, land trusts, business trusts or other
organizations, whether or not legal
10
entities,
incorporated or unincorporated organization or government or any
agency or political subdivision thereof.
“
Property ” means, with respect to any Person, all
types of real, personal or mixed property and all types of tangible
or intangible property owned or leased by such Person.
“
Purchase Notice ” means a notice delivered by a Holder
in accordance with Section 6.3 in the form set forth in
Section 3.3.
“
Rating Agency ” or “ Rating Agencies
” means each of Moody’s and S&P; provided
that if any of Moody’s or S&P ceases to provide rating
services to issuers or investors, the Company may appoint another
“nationally recognized statistical rating organization”
within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the
Exchange Act as a replacement for such Rating Agency that is
reasonably acceptable to the Trustee.
“
Redemption Date ,” when used with respect to any Note
to be redeemed, means the date fixed for such redemption by or
pursuant to this Second Supplemental Indenture.
“
Redemption Price ,” when used with respect to any Note
to be redeemed, means the price at which it is to be redeemed
pursuant to this Second Supplemental Indenture.
“
Reference Treasury Dealer ” means each of Citigroup
Global Markets Inc., Credit Suisse Securities (USA) LLC, and
J. P. Morgan Securities Inc. (in each case, or their Affiliates and
their respective successors); provided that if any of the
aforementioned Reference Treasury Dealers resigns, then the
respective successor will be a primary United States government
securities dealer in The City of New York selected by the
Company.
“
Reference Treasury Dealer Quotations ” means with
respect to each Reference Treasury Dealer and any Redemption Date,
the average, as determined by the Trustee, of the bid and asked
prices for the Comparable Treasury Issue, expressed in each case as
a percentage of its principal amount, quoted in writing to the
Trustee by such Reference Treasury Dealer at approximately 3:30
p.m. New York City time, on the third Business Day preceding such
Redemption Date.
“
Registrar ” means the Security Registrar for the
Notes, which shall initially be Union Bank, N.A., or any successor
entity thereof, subject to replacement as set forth in the
Indenture.
“
Regular Record Date ” for interest payable in respect
of any Note on any Interest Payment Date means the day that is
15 days prior to the relevant Interest Payment Date (whether
or not a Business Day).
“
Restricted Subsidiary ” means any Subsidiary of the
Company that is not an Unrestricted Subsidiary.
11
“
S&P ” means Standard & Poor’s Rating
Services, a division of The McGraw-Hill Companies, Inc., and its
successors.
“
Securitized Indebtedness ” means, with respect to any
Person as of any date, the reasonably expected liability of such
Person for the repayment of, or otherwise relating to, all accounts
receivable, general intangibles, chattel paper or other financial
assets and related rights and assets sold or otherwise transferred
by such Person, or any Subsidiary or Affiliate thereof, on or prior
to such date.
“
Significant Subsidiary ” means a Restricted Subsidiary
that qualifies as a “significant subsidiary” under
Rule 405 of the Securities Act.
“
Special Mandatory Redemption Date ” means the earlier
to occur of (1) January 25, 2010 if the Acquisition has
not been completed on or prior to January 9, 2010 or
(2) the 30th day (or if such day is not a Business Day, the
first Business Day thereafter) following the termination of the
Acquisition Agreement for any reason.
“
Special Mandatory Redemption Notice ” has the meaning
specified in Section 5.4(1).
“
Special Mandatory Redemption Price ” has the meaning
specified in Section 5.3.
“
Stated Maturity ” when used with respect to the Notes
or any installment of principal thereof or interest, if any,
thereon, means the date specified in such Note as the fixed date on
which the principal of the Note or such installment of principal or
interest, if any, is due and payable.
“
Target Companies ” means each of NextRx LLC, NextRx
and NextRx Services.
“
Treasury Rate ” means, with respect to any Redemption
Date, the rate per year equal to the semi-annual equivalent yield
to maturity or interpolated (on a day count basis) of the
Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount)
equal to the Comparable Treasury Price for such Redemption
Date.
“
Unrestricted Subsidiary ” means any Subsidiary of the
Company that from time to time is not a Guarantor or required to be
a Guarantor.
“
Voting Stock ” means, with respect to any Person as of
any date, the Capital Stock of such Person that is at the time
entitled to vote generally in the election of the board of
directors of such Person.
“
Wholly-Owned Subsidiary ” when used with respect to
any Person means (i) any corporation, association or other
business entity of which 100% of the shares of Capital Stock or
other equity interests is at the time owned or controlled, directly
or indirectly, by such Person or one or more of the other
Subsidiaries of such Person (or
12
combination
thereof) and (ii) any partnership, limited liability company
or similar pass-through entity the sole partners, members or
persons, however designated in corresponding roles, of which are
such Person or one or more Subsidiaries of such Person (or any
combination thereof).
SECTION
3.1. Form Generally.
(1) The
Notes shall be in substantially the form set forth in
Section 3.2 of this Article III, with such appropriate
insertions, omissions, substitutions and other variations as are
required or permitted by this Second Supplemental Indenture and the
Indenture, 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 or regulations of any
securities exchange or automated quotation system on which the
Notes may be listed or designated for issuance, the Code, or any
applicable securities laws, or as may, consistent herewith, be
determined by the officers executing such Notes (execution thereof
to be conclusive evidence of such approval). All Notes shall be in
fully registered form.
(2) Purchase
Notices shall be in substantially the form set forth in
Section 3.3.
(3) Guarantees
shall be in substantially the form set forth in
Section 3.4.
(4) The
Notes shall be printed, lithographed, typewritten or engraved or
produced by any combination of these methods or may be produced in
any other manner permitted by the rules of any automated quotation
system or securities exchange (including on steel engraved borders
if so required by any securities exchange upon which the Notes may
be listed) on which the Notes may be quoted or listed, as the case
may be, all as determined by the officers executing such Notes, as
evidenced by their execution thereof.
(5) Upon
their original issuance, the Notes shall be issued in the form of
one or more Global Securities in definitive, fully registered form
without interest coupons. Each such Global Security shall be duly
executed by the Company, authenticated and delivered by the Trustee
and shall be registered in the name of DTC, as Depositary, or its
nominee, and deposited with the Trustee, as custodian for DTC.
Beneficial interests in the Global Securities will be shown on, and
transfers will only be made through, the records maintained by DTC
and its participants, including Clearstream and the Euroclear
System.
SECTION
3.2. Form of Note.
13
[THE
FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL
SECURITY:
THIS
NOTE 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 THEREOF. THIS NOTE MAY NOT BE EXCHANGED IN
WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS
NOTE IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY
PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.].
[THE
FOLLOWING LEGEND SHALL APPEAR ON THE FACE OF EACH GLOBAL SECURITY
FOR WHICH DTC IS TO BE THE DEPOSITARY:
UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“
DTC ”), NEW YORK, NEW YORK, TO THE COMPANY OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
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.]
6.250% SENIOR NOTE DUE
2014
|
|
|
|
|
|
|
|
No.
|
|
Principal Amount (US)$
|
|
CUSIP NO.
|
|
|
Express
Scripts, Inc., a corporation duly organized and existing under the
laws of the State of Delaware (herein called the “
Company ”, which term includes any successor Person
under the Second Supplemental Indenture referred to on the reverse
hereof), for value received, hereby promises to pay to Cede &
Co., or registered assigns, the principal sum of
United States Dollars (U.S.$
) on June 15, 2014 and to pay interest thereon, from
June 9, 2009, or from the most recent Interest Payment Date to
which interest has been paid or duly provided for to but excluding
the next Interest Payment Date, which shall be June 15 and
December 15 of each year, commencing December 15, 2009,
at the per annum rate of 6.250%, or as such rate may be adjusted
pursuant to the terms hereof, per annum (the “ Note
Interest Rate ”), until the principal hereof is paid or
made available for payment.
14
The
interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Second
Supplemental Indenture, be paid to the Person in whose name this
Note is registered at the close of business on the Regular Record
Date for such interest, which shall be the day that is 15 days
prior to the relevant Interest Payment Date (whether or not a
Business Day). Except as otherwise provided in the Second
Supplemental Indenture, any such interest not so punctually paid or
duly provided for will 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 Note is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to
be fixed by the Trustee, notice of which shall be given to Holders
of Notes not less than 10 days prior to the Special Record
Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any automated quotation
system or securities exchange on which the Notes may be quoted or
listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Second Supplemental Indenture.
Interest will be computed on the basis of a 360-day year comprised
of twelve 30-day months.
Payment
of principal of (and premium, if any) and interest on this Note
will be made at the corporate trust office of the Trustee at 551
Madison Avenue, 11th Floor, New York, NY 10022, in such coin or
currency of the United States of America as at the time of payment
shall be legal tender for the payment of public and private debts.
With respect to Global Securities, the Company will make such
payments by wire transfer of immediately available funds to DTC, or
its nominee, as registered owner of the Global Securities. With
respect to certificated Notes, the Company will make such payments
by wire transfer of immediately available funds to a United States
Dollar account maintained in St Louis, Missouri or New York, New
York to each Holder of an aggregate principal amount of Notes in
excess of U.S. $5,000,000 that has furnished wire instructions
in writing to the Trustee no later than 15 days prior to the
relevant payment date. If a Holder of a certificated Note
(i) does not furnish such wire instructions as provided in the
preceding sentence or (ii) holds $5,000,000 or less aggregate
principal amount of Notes, the Company will make such payments by
mailing a check to such Holder’s registered
address.
Reference
is hereby made to the further provisions of this Note set forth on
the reverse hereof, which further provisions shall for all purposes
have the same effect as if set forth at this place.
Unless
the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this
Note shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purpose.
IN
WITNESS WHEREOF, the Company has caused this instrument to be duly
executed.
15
|
|
|
|
|
|
|
|
|
|
|
EXPRESS
SCRIPTS, INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name:
|
|
|
|
|
|
|
|
Title:
|
|
|
|
|
CERTIFICATE
OF AUTHENTICATION
This is one of
the Securities of the series designated referred to in the
within-mentioned Indenture.
UNION BANK,
N.A.,
as Trustee
[FORM OF REVERSE OF NOTE]
1.
Indenture . This Note is one of a duly authorized issue of
securities of the Company designated as its “6.250% Senior
Notes due 2014” (herein called the “ Notes
”), issued under a Second Supplemental Indenture, dated as of
June 9, 2009, to an indenture, dated as of June 9, 2009
(as it may be amended or supplemented from time to time in
accordance with the terms thereof, the “ Indenture
” and herein with the Second Supplemental Indenture,
collectively, the “ Indenture ”), between the
Company, the Guarantors and Union Bank, N.A., as Trustee (herein
called the “ Trustee ,” which term includes any
successor trustee under the Indenture), to which reference is
hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Company, the
Guarantors, the Trustee and the Holders of the Notes and of the
terms upon which the Notes are, and are to be, authenticated and
delivered. The aggregate principal amount of Initial Notes
Outstanding at any time may not exceed $1,000,000,000 in aggregate
principal amount, except for, or in lieu of, other Notes of the
Series pursuant to Sections 304, 305, 306, 906 or 1107 of the
Indenture and except for any Notes which, pursuant to
Section 303 of the Indenture, are deemed never to have been
authenticated and delivered. The Second Supplemental Indenture
pursuant to which this Note is issued provides that Additional
Notes may be issued thereunder, if certain conditions are
met.
16
All
terms used in this Note which are defined in the Indenture shall
have the meanings assigned to them in the Indenture. In the event
of a conflict or inconsistency between this Note and the Indenture,
the provisions of the Indenture shall govern.
2.
Optional Redemption . At any time prior to Maturity, the
Company may at its option redeem all or a part of the Notes upon
not more than 60 nor less than 30 days prior notice, at a
redemption price equal to the greater of: (i) 100% of the
aggregate principal amount of any Notes being redeemed, plus
accrued and unpaid interest on the Notes to the Redemption Date; or
(ii) the sum of the present values of the remaining scheduled
payments of principal of and interest on the Notes to be redeemed
(exclusive of unpaid interest accrued thereon to the Redemption
Date) discounted to the Redemption Date on a semi-annual basis
(assuming a 360-day year comprised of twelve 30-day months) at the
Treasury Rate plus 50 basis points, plus, unpaid interest on the
Notes to be redeemed, accrued to the Redemption Date.
3.
Mandatory Redemption . Except as provided in Sections 4
and 5 below, the Company is not required to make mandatory
redemption or sinking fund payments with respect to the
Notes.
4.
Special Mandatory Redemption . If for any reason
(i) the Acquisition is not consummated on or prior to
January 9, 2010 or (ii) the Acquisition Agreement is
terminated at any time prior thereto, then the Company will redeem
all the Notes on the Special Mandatory Redemption Date at a
redemption price equal to 101% of the aggregate principal amount of
the Notes plus accrued and unpaid interest from the date of initial
issuance to but excluding the Special Mandatory Redemption Date
(subject to the right of Holders on the relevant Regular Record
Date to receive interest due on the relevant Interest Payment
Date).
5.
Change of Control Triggering Event . In the event of a
Change of Control Triggering Event, the Holders may require the
Company to purchase for cash all or a portion of their Notes at a
purchase price equal to 101% of the aggregate principal amount of
the Notes, plus accrued and unpaid interest, if any, pursuant to
the provisions of Section 6.3 of the Second Supplemental
Indenture.
6.
Global Security . If this Note is a Global Security, then,
in the event of a deposit or withdrawal of an interest in this
Note, including an exchange, transfer, redemption, repurchase or
conversion of this Note in part only, the Trustee, as custodian of
the Depositary, shall make an adjustment on its records to reflect
such deposit or withdrawal in accordance with the Applicable
Procedures.
7.
Defaults and Remedies . If an Event of Default shall occur
and be continuing, the principal of all the Notes, together with
any unpaid premium and accrued interest to the date of declaration,
may be declared due and payable in the manner and with the effect
provided in the Second Supplemental Indenture. Upon payment
(i) of the amount of principal so declared due and payable,
together with any unpaid premium and accrued interest to the date
of declaration, and (ii) of interest on any overdue
principal
17
|