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Exhibit 10.2
CSK AUTO, INC.
AND
CSK AUTO
CORPORATION
AND
THE SUBSIDIARY GUARANTORS
NAMED HEREIN
AND
THE BANK OF NEW
YORK
TRUST COMPANY,
N.A.
as Trustee
INDENTURE
Dated as of
December 19,
2005
4.625% Exchangeable Senior
Notes due 2025
CROSS-REFERENCE
TABLE*
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Trust Indenture
Act Section
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Indenture
Section
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| §310
(a) (1) |
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7.09 |
| (a)
(2) |
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7.09 |
| (a)
(3) |
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N.A. |
| (a)
(4) |
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N.A. |
| (a)
(5) |
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N.A. |
| (b) |
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7.08 |
| (c) |
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N.A. |
| §311
(a) |
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7.13 |
| (b) |
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7.13 |
| (c) |
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N.A. |
| §312
(a) |
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5.01; 5.02 |
| (b) |
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N.A. |
| (c) |
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N.A. |
| §313
(a) |
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5.03 |
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(b) |
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N.A. |
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(c) |
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5.03 |
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(d) |
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5.03 |
| §314
(a) |
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5.04 |
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(b) |
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N.A. |
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(c)
(1) |
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15.05 |
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(c)
(2) |
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15.05 |
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(c)
(3) |
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N.A. |
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(d) |
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N.A. |
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(e) |
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15.05 |
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(f) |
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N.A. |
| §315
(a) |
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7.01; 7.02 |
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(b) |
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6.08 |
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(c) |
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6.06 |
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(d) |
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7.01; 7.06 |
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(e) |
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6.09 |
| §316
(a) (1) |
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6.07 |
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(a)
(2) |
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10.02 |
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(b) |
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N.A. |
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(c) |
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8.01 |
| §317
(a) (1) |
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6.02 |
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(a)
(2) |
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6.02 |
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(b) |
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4.04 |
| §318
(a) |
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15.08 |
N.A. means not applicable.
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This Cross-Reference Table shall not, for any purpose, be
deemed to be part of this Indenture. |
TABLE OF
CONTENTS
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Page |
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ARTICLE 1 |
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D EFINITIONS |
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Section 1.01.
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Definitions |
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1 |
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ARTICLE 2 |
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I SSUE , D
ESCRIPTION , E XECUTION , R
EGISTRATION
AND E
XCHANGE OF N
OTES
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Section 2.01.
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Designation Amount and Issue of Notes |
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8 |
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Section 2.02.
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Form of
Notes |
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9 |
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Section 2.03.
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Date and
Denomination of Notes; Payments of Interest |
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10 |
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Section 2.04.
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Execution
of Notes |
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11 |
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Section 2.05.
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Exchange
and Registration of Transfer of Notes; Restrictions on
Transfer |
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11 |
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Section 2.06.
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Mutilated, Destroyed, Lost or Stolen Notes |
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15 |
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Section 2.07.
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Temporary
Notes |
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15 |
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Section 2.08.
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Cancellation of Notes |
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16 |
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Section 2.09.
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CUSIP
Numbers |
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16 |
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Section 2.10.
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Ranking |
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16 |
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ARTICLE 3 |
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R EDEMPTION AND R
EPURCHASE OF N
OTES |
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Section 3.01.
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Company’s Right to Redeem |
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16 |
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Section 3.02.
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Notice of
Optional Redemption; Selection of Notes |
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17 |
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Section 3.03.
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Payment
of Notes Called for Redemption by the Company |
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18 |
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Section 3.04.
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Repurchase of Notes by the Company at Option of Holders upon a
Fundamental Change |
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19 |
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Section 3.05.
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Repurchase of Notes by the Company at Option of Holders on
Specified Dates |
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20 |
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Section 3.06.
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Conditions and Procedures for Repurchase at Option of
Holders |
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22 |
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ARTICLE 4 |
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P ARTICULAR C
OVENANTS |
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Section 4.01.
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Payment
of Principal and Interest |
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24 |
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Section 4.02.
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Maintenance of Office or Agency |
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24 |
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Section 4.03.
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Appointments to Fill Vacancies in Trustee’s
Office |
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24 |
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Section 4.04.
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Provisions as to Paying Agent |
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24 |
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Section 4.05.
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Existence |
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25 |
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Section 4.06.
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Rule 144A Information Requirement |
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25 |
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Section 4.07.
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Stay,
Extension and Usury Laws |
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25 |
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Section 4.08.
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Compliance Certificate |
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25 |
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Section 4.09.
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Additional Interest Notice |
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26 |
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Section 4.10.
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Future
Guarantors |
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26 |
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ARTICLE 5 |
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N OTEHOLDERS ’ L ISTS
AND R EPORTS BY
THE C OMPANY AND
THE T RUSTEE |
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Section 5.01.
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Noteholders’ Lists |
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26 |
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Section 5.02.
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Preservation and Disclosure of Lists |
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26 |
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Section 5.03.
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Reports
by Trustee |
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27 |
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Section 5.04.
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Reports
by Company |
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27 |
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ARTICLE 6 |
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R EMEDIES OF
THE T RUSTEE AND N
OTEHOLDERS ON AN E
VENT OF D
EFAULT |
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Section 6.01.
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Events of
Default |
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27 |
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Section 6.02.
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Payments
of Notes on Default; Suit Therefor |
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29 |
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Section 6.03.
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Application of Monies Collected by Trustee |
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30 |
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Section 6.04.
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Proceedings by Noteholder |
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30 |
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Section 6.05.
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Proceedings by Trustee |
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31 |
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Section 6.06.
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Remedies
Cumulative and Continuing |
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31 |
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Section 6.07.
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Direction
of Proceedings and Waiver of Defaults by Majority of
Noteholders |
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31 |
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Section 6.08.
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Notice of
Defaults |
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32 |
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Section 6.09.
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Undertaking to Pay Costs |
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32 |
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ARTICLE 7 |
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T HE T RUSTEE |
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Section 7.01.
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Duties
and Responsibilities of Trustee |
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32 |
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Section 7.02.
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Reliance
on Documents, Opinions, Etc |
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33 |
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Section 7.03.
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No
Responsibility for Recitals, Etc |
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34 |
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Section 7.04.
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Trustee,
Paying Agents, Exchange Agents or Registrar May Own
Notes |
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35 |
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Section 7.05.
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Monies to
Be Held in Trust |
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35 |
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Section 7.06.
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Compensation and Expenses of Trustee |
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35 |
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Section 7.07.
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Officers’ Certificate as Evidence |
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35 |
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Section 7.08.
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Conflicting Interests of Trustee |
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35 |
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Section 7.09.
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Eligibility of Trustee |
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35 |
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Section 7.10.
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Resignation or Removal of Trustee |
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36 |
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Section 7.11.
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Acceptance by Successor Trustee |
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36 |
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Section 7.12.
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Succession by Merger |
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37 |
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Section 7.13.
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Preferential Collection of Claims |
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37 |
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ARTICLE 8 |
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T HE N
OTEHOLDERS |
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Section 8.01.
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Action by
Noteholders |
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37 |
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Section 8.02.
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Proof of
Execution by Noteholders |
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38 |
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Section 8.03.
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Who Are
Deemed Absolute Owners |
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38 |
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Section 8.04.
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Company-owned Notes Disregarded |
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38 |
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Section 8.05.
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Revocation of Consents, Future Holders Bound |
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38 |
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ARTICLE 9 |
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M EETINGS OF N
OTEHOLDERS |
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Section 9.01.
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Purpose
of Meetings |
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39 |
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Section 9.02.
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Call of
Meetings by Trustee |
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39 |
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Section 9.03.
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Call of
Meetings by Company or Noteholders |
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39 |
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Section 9.04.
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Qualifications for Voting |
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39 |
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Section 9.05.
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Regulations |
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39 |
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Section 9.06.
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Voting |
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40 |
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Section 9.07.
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No Delay
of Rights by Meeting |
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40 |
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ARTICLE 10 |
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S UPPLEMENTAL I
NDENTURES |
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Section 10.01.
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Supplemental Indentures Without Consent of
Noteholders |
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40 |
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Section 10.02.
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Supplemental Indenture with Consent of Noteholders |
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41 |
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Section 10.03.
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Effect of
Supplemental Indenture |
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42 |
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Section 10.04.
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Notation
on Notes |
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43 |
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Section 10.05.
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Evidence
of Compliance of Supplemental Indenture to Be Furnished to
Trustee |
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43 |
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ARTICLE 11 |
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C ONSOLIDATION , M ERGER , S
ALE , C ONVEYANCE AND
L EASE |
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Section 11.01.
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Company,
the Issuer and the Subsidiary Guarantors May Consolidate on Certain
Terms |
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43 |
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Section 11.02.
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Successor
to Be Substituted |
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44 |
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Section 11.03.
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Opinion
of Counsel to Be Given Trustee |
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45 |
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ARTICLE 12 |
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S ATISFACTION AND D
ISCHARGE OF I
NDENTURE |
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Section 12.01.
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Discharge
of Indenture |
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45 |
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Section 12.02.
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Paying
Agent to Repay Monies Held |
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45 |
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Section 12.03.
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Return of
Unclaimed Monies |
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45 |
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ARTICLE 13 |
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I MMUNITY OF I
NCORPORATORS , S TOCKHOLDERS , O
FFICERS AND D
IRECTORS |
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Section 13.01.
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Indenture
and Notes Solely Corporate Obligations |
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45 |
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ARTICLE 14 |
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E XCHANGE OF N
OTES |
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Section 14.01.
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Right to
Exchange |
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46 |
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Section 14.02.
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Exercise
of Exchange Right; Issuance of Common Stock on Exchange; No
Adjustment for Interest or Dividends |
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48 |
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Section 14.03.
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Payment
Upon Exchange; Cash Payments in Lieu of Fractional
Shares |
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49 |
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Section 14.04.
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Exchange
Rate |
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49 |
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Section 14.05.
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Adjustment of Exchange Rate |
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49 |
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Section 14.06.
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Effect of
Reclassification, Consolidation, Merger or Sale |
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54 |
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Section 14.07.
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Exchange
After a Public Acquirer Change of Control |
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55 |
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Section 14.08.
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Taxes on
Shares Issued |
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56 |
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Section 14.09.
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Reservation of Shares, Shares to Be Fully Paid; Compliance with
Governmental Requirements; Listing of Common Stock |
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56 |
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Section 14.10.
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Responsibility of Trustee |
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57 |
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Section 14.11.
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Notice to
Holders Prior to Certain Actions |
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57 |
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Section 14.12.
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Stockholder Rights Plan |
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57 |
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ARTICLE 15 |
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G UARANTEES |
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Section 15.01.
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Guarantees |
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58 |
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Section 15.02.
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Limitation on Liability |
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59 |
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Section 15.03.
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Successors and Assigns |
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59 |
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Section 15.04.
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No
Waiver |
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59 |
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Section 15.05.
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Modification |
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60 |
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Section 15.06.
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Execution
of Supplemental Indenture for Future Guarantors. |
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60 |
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ARTICLE 16 |
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M ISCELLANEOUS P
ROVISIONS |
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Section 16.01.
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Provisions Binding on Successors |
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60 |
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Section 16.02.
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Official
Acts by Successor Corporation |
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60 |
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Section 16.03.
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Addresses
for Notices, Etc |
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60 |
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Section 16.04.
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Governing
Law |
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61 |
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Section 16.05.
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Evidence
of Compliance with Conditions Precedent, Certificates to
Trustee |
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61 |
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Section 16.06.
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Business
Days |
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61 |
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Section 16.07.
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Company
Responsible for Making Calculations |
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61 |
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Section 16.08.
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Trust
Indenture Act |
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61 |
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Section 16.09.
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No
Security Interest Created |
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61 |
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Section 16.10.
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Table of
Contents, Headings, Etc |
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62 |
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Section 16.11.
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Authenticating Agent |
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62 |
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Section 16.12.
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Execution
in Counterparts |
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62 |
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Section 16.13.
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Severability |
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62 |
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Section 16.14.
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Force
Majeure |
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62 |
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Schedule A
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Additional Shares Table |
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SCH A-1 |
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Exhibit A
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Form of
Note |
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A-1 |
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Exhibit B
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Form of
Restrictive Legend for Common Stock Issued upon
Exchange |
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B-1 |
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Exhibit C
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Form of
Supplemental Indenture |
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C-1 |
INDENTURE
INDENTURE dated as of
December 19, 2005 among CSK Auto, Inc., an Arizona corporation
(hereinafter called the “ Company ”), having its
principal office at 645 East Missouri Avenue, Suite 400, Phoenix,
AZ 85012, CSK Auto Corporation, a Delaware corporation, having its
principal office at 645 East Missouri Avenue, Suite 400,
Phoenix, AZ 85012, and the parent of the Company (hereinafter
called the “ Issuer ”), and The Bank of New York
Trust Company, N.A., a national banking association, as trustee
hereunder (hereinafter called the “ Trustee
”).
WITNESSETH:
WHEREAS, for its lawful
corporate purposes, the Company has duly authorized the issue of
its 4.625% Senior Exchangeable Notes due 2025 (hereinafter called
the “ Notes ”), in an aggregate Principal Amount
not to exceed $85,000,000 (or up to $100,000,000 if the Initial
Purchasers’ over-allotment option set forth in the Purchase
Agreement is exercised in full), and the Issuer and the Subsidiary
Guarantors have duly authorized the Guarantees (as hereinafter
defined), and, to provide the terms and conditions upon which the
Notes and the Guarantees are to be authenticated, issued and
delivered, the Issuer has duly authorized the issuance of its
shares of Common Stock upon exchange of the Notes to the extent
required herein and the Company, the Issuer and the Subsidiary
Guarantors have duly authorized the execution and delivery of this
Indenture; and
WHEREAS, the Notes, the
Guarantees set forth herein, the certificate of authentication to
be borne by the Notes, a form of assignment, a form of fundamental
change repurchase election, a form of Company repurchase election
and a form of exchange notice to be borne by the Notes are to be
substantially in the forms hereinafter provided for; and
WHEREAS, all acts and things
necessary to make the Notes and the Guarantees set forth herein
when executed by the Company, the Issuer and the Subsidiary
Guarantors, as applicable, and authenticated and delivered by the
Trustee or a duly authorized authenticating agent, as in this
Indenture provided, the valid, binding and legal obligations of the
Company, the Issuer and the Subsidiary Guarantors, as applicable,
and to constitute this Indenture a valid agreement according to its
terms, have been done and performed, and the execution of this
Indenture and the issue hereunder of the Notes and the Guarantees
set forth herein have in all respects been duly
authorized,
NOW, THEREFORE, THIS
INDENTURE WITNESSETH:
That in order to declare the
terms and conditions upon which the Notes and the Guarantees are,
and are to be, authenticated, issued and delivered, and in
consideration of the premises and of the purchase and acceptance of
the Notes by the holders thereof, the Company, the Issuer and the
Subsidiary Guarantors covenant and agree with the Trustee for the
equal and proportionate benefit of the respective holders from time
to time of the Notes (except as otherwise provided below), as
follows:
ARTICLE 1
D
EFINITIONS
Section 1.01.
Definitions . The terms defined in this Section 1.01
(except as herein otherwise expressly provided or unless the
context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective
meanings specified in this Section 1.01. All other terms used
in this Indenture that are defined in the Trust Indenture Act or
which are by reference therein defined in the Securities Act
(except as herein otherwise expressly provided or unless the
context otherwise requires) shall have the meanings assigned to
such terms in the Trust Indenture Act and in the Securities Act as
in force at the date of the execution of this Indenture. The words
“ herein ”, “ hereof ”,
“ hereunder ” and words of similar import refer
to this Indenture as a whole and not to any particular Article,
Section or other Subdivision. The terms defined in this Article
include the plural as well as the singular.
“ Additional
Interest ” has the meaning specified for “
Additional Interest ” in Section 2(e) of the
Registration Rights Agreement.
“ Additional
Interest Notice ” has the meaning specified in
Section 4.09.
“ Additional
Notes ” has the meaning specified in
Section 2.02.
“ Additional
Shares ” has the meaning specified in
Section 14.01(e).
“ Adjustment
Event ” has the meaning specified in
Section 14.05(j).
“ Agent Members
” has the meaning specified in
Section 2.05(b)(v).
“ 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 or cause the
direction of 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
Consideration ” has the meaning specified in
Section 14.06
“ Board of
Directors ” means the Board of Directors of the Company
or the Issuer, as the case may be, or a committee of such Board
duly authorized to act for it hereunder.
“ Business Day
” means any day, other than a Saturday or Sunday, that is
neither a legal holiday nor a day on which commercial banks are
authorized or required by law, regulation or executive order to
close in The City of New York or the city in which the principal
Corporate Trust Office of the Trustee is located.
“ capital stock
” of any Person means any and all shares (including ordinary
shares or American Depositary Shares), interests, participations or
other equivalents however designated of corporate stock or other
equity participations, including partnership interests, whether
general or limited, of such Person and any rights (other than debt
securities convertible or exchangeable into an equity interest),
warrants or options to acquire an equity interest in such
Person.
“ Cash Settlement
Averaging Period ” with respect to any Note means the 20
consecutive Trading Day period beginning on the second Trading Day
after a holder of Notes delivers an exchange notice to the Exchange
Agent, except that with respect to any notice of exchange received
after the date of issuance of a Redemption Notice, it shall mean
the 20 consecutive Trading Day period ending on the third Trading
Day immediately preceding the applicable Redemption
Date.
“ Commission
” means the Securities and Exchange Commission, as from time
to time constituted 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
Trust Indenture Act, then the body performing such duties at such
time.
“ Common Stock
” means any stock of any class of the Issuer which has no
preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or
winding up of the Issuer and which is not subject to redemption by
the Issuer Subject to the provisions of Section 14.06,
however, shares issuable on exchange of Notes shall include only
shares of the class designated as common stock of the Issuer at the
date of this Indenture (namely, the Common Stock, par value of
$0.01 per share) or shares of any class or classes resulting from
any reclassification or reclassifications thereof and which have no
preference in respect of dividends or of amounts payable in the
event of any voluntary or involuntary liquidation, dissolution or
winding up of the Issuer and which are not subject to redemption by
the Issuer; provided that if at any time there shall be more
than one such resulting class, the shares of each such class then
so issuable on exchange shall be substantially in the proportion
which the total number of shares of such class resulting from all
such reclassifications bears to the total number of shares of all
such classes resulting from all such reclassifications.
“ Company
” means the corporation named as the “ Company
” in the first paragraph of this Indenture, and, subject to
the provisions of Article 11 and Section 14.06, shall
include its successors and assigns.
“ Company Repurchase
Date ” has the meaning specified in
Section 3.05(a).
“ Company Repurchase
Election ” has the meaning specified in
Section 3.05(c).
“ Company Repurchase
Notice ” has the meaning specified in
Section 3.05(b).
“ Company Repurchase
Price ” has the meaning specified in
Section 3.05(a).
“ Continuing
Director ” means a director who was a member of the the
Issuer’s Board of Directors on the date of this Indenture or
who becomes a director subsequent to such date and whose election,
appointment or nomination for election by the stockholders of the
Issuer is duly approved by a majority of the continuing directors
on the Issuer’s Board of Directors at the time of such
approval, either by a specific vote or by approval of the proxy
statement issued by the Issuer on behalf of the the Issuer’s
entire Board of Directors in which such individual is named as
nominee for director.
“ Corporate Trust
Office ” or other similar term, means the designated
office of the Trustee at which at any particular time its corporate
trust business as it relates to this Indenture shall be principally
administered, which office is, at the date as of which this
Indenture is dated, located at 700 South Flower Street,
Suite 500, Los Angeles, California 90017, Attn: Corporate
Trust Administration or at any other address as the Trustee may
designate from time to time by notice to the holders.
“ Custodian
” means The Bank of New York Trust Company, N.A., as
custodian for The Depository Trust Company with respect to the
Notes in global form, or any successor entity thereto.
“ Default
” means any event that is, or after notice or passage of
time, or both, would be, an Event of Default.
“ Defaulted
Interest ” has the meaning specified in
Section 2.03.
“ Depositary
” means the clearing agency registered under the Exchange Act
that is designated to act as the Depositary for the Global Notes.
The Depository Trust Company shall be the initial Depositary, until
a successor shall have been appointed and become such pursuant to
the applicable provisions of this Indenture, and thereafter,
“ Depositary ” shall mean or include such
successor.
“ Determination
Date ” has the meaning specified in
Section 14.05(j).
“ Domestic
Subsidiary ” means any Subsidiary of the Company
organized under the laws of any federal, state or local
jurisdiction of the United States.
“ Effective Date
” has the meaning specified in
Section 14.01(e).
“ Event of
Default ” means any event specified in Section 6.01
as an Event of Default.
“ Exchange Act
” means the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder, as in effect from
time to time.
“ Exchange Agent
” means the Trustee or such other office or agency designated
by the Company where Notes may be presented for
exchange.
“ Exchange Date
” has the meaning specified in Section 14.02.
“ Exchange Price
” as of any day means the Principal Amount divided by the
Exchange Rate as of such date and rounded to the nearest cent. The
initial Exchange Price shall be $20.06 per share of Common
Stock.
“ Exchange Rate
” has the meaning specified in Section 14.04.
“ Exchange Value
” means the product of (1) the applicable Exchange Rate
and (2) the average of the Last Reported Sale Prices of the
Common Stock for the 20 consecutive Trading Days during the Cash
Settlement Averaging Period.
“ Ex-Dividend
Date ” means, with respect to any issuance or
distribution on shares of Common Stock, the first date upon which a
sale of the Common Stock does not automatically transfer the right
to receive such issuance or distribution from the seller of the
Common Stock to the buyer.
“ Expiration
Time ” has the meaning specified in
Section 14.05(e).
“ Fundamental
Change ” means the occurrence of any of the
following:
(i) a
“person” or “group” within the meaning of
Section 13(d) of the Exchange Act other than the Issuer, its
subsidiaries or its or their employee benefit plans, files a
Schedule TO or any other schedule, form or report under the
Exchange Act disclosing that such person or group has become the
direct or indirect ultimate “beneficial owner,” as
defined in Rule 13d-3 under the Exchange Act, of more than 50%
of the total voting power of all shares of the Issuer’s
capital stock that are entitled to vote generally in the election
of directors;
(ii) consummation of any
share exchange, consolidation or merger of the Issuer or any sale,
lease, conveyance or other transfer in one transaction or a series
of transactions of all or substantially all of the consolidated
assets of the Issuer and its subsidiaries, taken as a whole, to any
person other than the Issuer or one or more of its subsidiaries
pursuant to which the Common Stock will be exchanged into cash,
securities or other property; provided, however, that a transaction
where the holders of the Issuer’s voting capital stock
immediately prior to such transaction have, directly or indirectly,
more than 50% of the aggregate voting power of all shares of
capital stock of the continuing or surviving corporation or
transferee entitled to vote generally in the election of directors
immediately after such event shall not be a Fundamental
Change;
(iii) Continuing
Directors cease to constitute at least a majority of the
Issuer’s Board of Directors;
(iv) the stockholders of
the Issuer approve any plan or proposal for its liquidation or
dissolution; or
(v) the Common Stock or
other common stock into which the Notes are exchangeable is neither
listed for trading on a U.S. national securities exchange nor
approved for trading on the Nasdaq National Market or another
established automated over the-counter trading market in the United
States.
A Fundamental Change will not
be deemed to have occurred in respect of clauses (i) and
(ii) above, however, however, if at least 90% of the
consideration, excluding cash payments for fractional shares or
made in connection with the exercise of dissenters’ rights,
in the transaction or transactions constituting the Fundamental
Change consists of shares of capital stock traded on a national
securities exchange or quoted on the Nasdaq National Market or
which will be so traded or quoted when issued or exchanged in
connection with a Fundamental Change (these securities being
referred to as “publicly traded securities”) and as a
result of this transaction or transactions the Notes become
exchangeable into such publicly traded securities, excluding cash
payments for fractional shares.
“ Fundamental Change
Repurchase Date ” has the meaning specified in
Section 3.04(a).
“ Fundamental Change
Repurchase Election ” has the meaning specified in
Section 3.04(c)(i).
“ Fundamental Change
Repurchase Notice ” has the meaning specified in
Section 3.04(b).
“ Fundamental Change
Repurchase Price ” has the meaning provided in
Section 3.04(a).
“ Global Note
” has the meaning specified in Section 2.02.
“ Guaranteed
Obligations ” has the meaning specified in
Section 15.01.
“ Guarantees
” means collectively, the obligations of the Issuer and the
Subsidiary Guarantors under Article 15.
“ Indenture
” means this instrument as originally executed or, if amended
or supplemented as herein provided, as so amended or
supplemented.
“ Initial Notes
” has the meaning specified in Section 2.02.
“ Initial
Purchasers ” means J.P. Morgan Securities Inc.
“ Interest
” means, when used with reference to the Notes, any regular
interest payable under the terms of the Notes, including Additional
Interest, if any, payable under the terms of the Registration
Rights Agreement.
“ Interest Payment
Date ” means December 15 and June 15 of each
year, commencing June 15, 2006.
“ Issuer ”
means the corporation named as the “ Issuer ” in
the first paragraph of this Indenture, and, subject to the
provisions of Article 11 and Section 14.06, shall include
its successors and assigns.
“ Last Reported Sale
Price ” of the Common Stock (or Public Acquirer Common
Stock) on any date means the closing sale price per share (or if no
closing sale price is reported, the average of the bid and asked
prices or, if more than one in either case, the average of the
average bid and the average asked prices) on that date as reported
in composite transactions for the principal U.S. securities
exchange on which the Common Stock (or Public Acquirer Common
Stock) is traded or, if the Common Stock is not listed on a U.S.
national or regional securities exchange, as reported by the Nasdaq
National Market. If the Common Stock is not listed for trading on a
U.S. national or regional securities exchange and not reported by
the Nasdaq National Market on the relevant date, the “Last
Reported Sale Price” will be the last quoted bid price for
the Common Stock in the over-the-counter market on the relevant
date as reported by the National Quotation Bureau Incorporated or
similar organization. If the Common Stock is not so quoted, the
“Last Reported Sale Price” will be the average of the
mid-point of the last bid and asked prices for the Common Stock on
the relevant date quoted by each of at least three nationally
recognized independent investment banking firms selected by the
Company for this purpose.
“ Majority Owned
” means having “beneficial ownership” (as defined
in Rule 13(d)(3) under the Exchange Act) of more than 50% of
the total voting power of all shares of the respective
entity’s capital stock that are entitled to vote generally in
the election of directors. “ Majority Owner ”
has the correlative meaning.
“ non-electing
share ” has the meaning specified in
Section 14.06.
“ Note ”
or “ Notes ” means any Note or Notes, as the
case may be, authenticated and delivered under this Indenture,
including any Global Note.
“ Note Register
” has the meaning specified in Section 2.05.
“ Note Registrar
” has the meaning specified in Section 2.05.
“ Noteholder
” or “ holder ” as applied to any Note, or
other similar terms (but excluding the term “beneficial
holder”), means any Person in whose name at the time a
particular Note is registered on the Note Registrar’s
books.
“ Offering
Memorandum ” means the offering memorandum dated
December 14, 2005 relating to the Notes.
“ Officers’
Certificate ”, when used with respect to the Company,
means a certificate signed by any two of the Chairman of the Board,
the Chief Executive Officer, the Chief Operating Officer, the
President, the Chief Financial Officer, any Vice President (whether
or not designated by a number or numbers or word or words added
before or after the title “Vice President”), the
Treasurer or the Secretary of the Company at least one of whom
shall be the Chief Financial Officer or any more senior officer.
“Officers’ Certificate” of the Issuer or any
Subsidiary Guarantor has a correlative meaning.
“ Opinion of
Counsel ” means an opinion in writing signed by legal
counsel, who may be an employee of or counsel to the Company or the
Issuer.
“ Outstanding
”, when used with reference to Notes and subject to the
provisions of Section 7.04, means, as of any particular time,
all Notes authenticated and delivered by the Trustee under this
Indenture, except:
(a) Notes theretofore
canceled by the Trustee or delivered to the Trustee for
cancellation;
(b) Notes, or portions
thereof, (i) for the redemption of which monies in the
necessary amount shall have been deposited in trust with the
Trustee or with any Paying Agent (other than the Company, the
Issuer or the Subsidiary Guarantors) or (ii) which shall have
been otherwise discharged in accordance with
Article 12;
(c) Notes in lieu of
which, or in substitution for which, other Notes shall have been
authenticated and delivered pursuant to the terms of
Section 2.06;
(d) Notes exchanged into
cash or a combination of cash and Common Stock, as the case may be,
pursuant to Article 13 and Notes deemed not outstanding
pursuant to Article 3; and
(e) Notes paid pursuant
to Section 2.06.
“ Paying Agent
” means the Trustee or such other office or agency designated
by the Company where Notes may be presented for payment.
“ Person ”
means a corporation, an association, a partnership, a limited
liability company, an individual, a joint venture, a joint stock
company, a trust, an unincorporated organization or a government or
an agency or a political subdivision thereof.
“ Portal Market
” means The Portal Market operated by the National
Association of Securities Dealers, Inc. or any successor
thereto.
“ Predecessor
Note ” of any particular Note means every previous Note
evidencing all or a portion of the same debt as that evidenced by
such particular Note, and, for the purposes of this definition, any
Note authenticated and delivered under Section 2.06 in lieu of
a lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the lost, destroyed or stolen Note that it
replaces.
“ Principal
Amount ” of a Note means the stated Principal Amount as
set forth on the face of such Note.
“ Public Acquirer
Change of Control ” means a Fundamental Change in which
the acquirer has a class of common stock traded on any U.S.
national securities exchange or quoted on the Nasdaq National
Market or which will be so traded or quoted when issued or
exchanged in connection with such Fundamental Change (the “
Public Acquirer Common Stock ”). If an acquirer does
not itself have a class of common stock satisfying the foregoing
requirement, it shall be deemed to have Public Acquirer Common
Stock if a corporation that directly or indirectly is the Majority
Owner of the acquirer has a class of common stock satisfying the
foregoing requirement; in such case, all references to Public
Acquirer Common Stock shall refer to such class of common
stock.
“ Public Acquirer
Common Stock ” has the meaning assigned to it in the
definition of Public Acquirer Change of Control in this
Section 1.01.
“ Purchase
Agreement ” means the Purchase Agreement, dated as of
December 14, 2005 among the Company, the Issuer, the
Subsidiary Guarantors on such date and the Initial
Purchasers.
“ QIB ”
means a “ qualified institutional buyer ” as
defined in Rule 144A.
“ Redemption
Date ” has the meaning specified in
Section 3.02(a).
“ Redemption
Notice ” has the meaning specified in
Section 3.02(a).
“ Redemption
Price ” has the meaning specified in
Section 3.01.
“ Registration
Rights Agreement ” means the Registration Rights
Agreement, dated as of December 19, 2005, among the Company,
the Issuer, the Subsidiary Guarantors on such date and the Initial
Purchasers, as amended from time to time in accordance with its
terms.
“ Regular Record
Date ” means, with respect to each Interest Payment Date,
5:00 p.m., New York City time, on the December 1 or
June 1 next preceding such Interest Payment Date (whether or
not a Business Day).
“ Repurchase
Date ” means the Fundamental Change Repurchase Date or
the Company Repurchase Date, as applicable.
“ Repurchase
Election ” means the Fundamental Change Repurchase
Election or the Company Repurchase Election, as
applicable.
“Repurchase
Price ” means the Fundamental Change Repurchase Price or
the Company Repurchase Price, as applicable.
“Responsible
Officer ” means, , 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
secretary, 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.
“ Restricted
Securities ” has the meaning specified in
Section 2.05(c).
“ Rule 144A
” means Rule 144A as promulgated under the Securities
Act.
“ Securities Act
” means the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder, as in effect from time to
time.
“ Senior
Subordinated Notes Indenture ” means the indenture, dated
as of January 16, 2004 among the Company, the guarantors named
therein and The Bank of New York, as trustee, relating to the 7%
senior subordinated notes due 2014.
“ Settlement
Amount ” has the meaning specified in
Section 14.03(a).
“ Significant
Subsidiary ” means any Subsidiary that would be a
“Significant Subsidiary” within the meaning of
Rule 1-02 under Regulation S-X promulgated by the
Commission.
“ Special Record
Date ” has the meaning specified in
Section 2.03.
“ Spin-Off
” has the meaning specified in
Section 15.05(c).
“ Stated
Maturity ” means December 15, 2025.
“ Stock Price
” means the price per share of Common Stock paid in
connection with a corporate transaction described in
Section 14.01(b) hereof, which shall be equal to (i) if
holders of Common Stock receive only cash in such corporate
transaction, the cash amount paid per share of Common Stock and
(ii) in all other cases, the average of the Last Reported Sale
Prices of Common Stock over the five Trading Day period ending on
the Trading Day preceding the Effective Date.
“ Stock Record
Date ” means, with respect to any dividend, distribution
or other transaction or event in which the holders of Common Stock
have the right to receive any cash, securities or other property or
in which the Common Stock (or other applicable security) is
exchanged for or converted into any combination of cash, securities
or other property, the date fixed for determination of stockholders
entitled to receive such cash, securities or other property
(whether such date is fixed by the Board of Directors or by
statute, contract or otherwise).
“ Subsidiary
” means, with respect to any Person, (i) any
corporation, association or other business entity of which more
than 50% of the total voting power of shares of capital stock or
other equity interest entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or
trustees thereof is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other subsidiaries
of that Person (or a combination thereof) and (ii) any
partnership (a) the sole general partner or managing general
partner of which is such Person or a subsidiary of such Person or
(b) the only general partners of which are such Person or of
one or more subsidiaries of such Person (or any combination
thereof).
“ Subsidiary
Guarantees ” means the obligations of the Subsidiary
Guarantors under Article 15.
“ Subsidiary
Guarantors ” means CSK Auto.Com, Inc. and each other
subsidiary of the Company that hereafter guarantees the Notes
pursuant to the terms of this Indenture.
“ Trading Day
” means a day during which trading in the Common Stock
generally occurs and a closing sale price for the Common Stock is
provided on the New York Stock Exchange or, if the Common Stock is
not listed on the New York Stock Exchange, on the principal other
U.S. national or regional securities exchange on which the Common
Stock is then listed or, if the Common Stock is not listed on a
U.S. national or regional securities exchange, as reported by the
Nasdaq National Market or if the Common Stock is not listed in a
U.S. national or regional securities exchange or reported by the
Nasdaq National Market, on the principal other market on which the
Common Stock is then traded; provided that if the Common Stock is
not traded on any market, then “Trading Day” shall mean
a day the Last Reported Sale Price can be obtained (as determined
by the Company’s Board of Directors).
“ Trust Indenture
Act ” means the Trust Indenture Act of 1939, as amended,
as it was in force at the date of this Indenture, except as
provided in Sections 10.03 and 14.06; provided that if
the Trust Indenture Act of 1939 is amended after the date hereof,
the term “ Trust Indenture Act ” shall mean, to
the extent required by such amendment, the Trust Indenture Act of
1939 as so amended.
“ Trustee
” means The Bank of New York Trust Company, N.A. and its
successors and any corporation resulting from or surviving any
consolidation or merger to which it or its successors may be a
party and any successor trustee at the time serving as successor
trustee hereunder.
ARTICLE 2
I SSUE , D
ESCRIPTION , E XECUTION , R
EGISTRATION
AND E
XCHANGE OF N
OTES
Section 2.01.
Designation Amount and Issue of Notes . The Notes shall be
designated as “ 4.625% Senior Exchangeable Notes due
2025 ”. Initially, Notes (the “ Initial
Notes ”) not to exceed the aggregate Principal Amount of
$85,000,000 (or up to $100,000,000 if the Initial Purchasers’
over-allotment option set forth in the Purchase Agreement is
exercised in full) (except pursuant to Sections 2.05, 2.06,
3.04, 3.05 and 14.02 hereof) upon the execution of this Indenture
may be executed by the Company and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and
deliver said Notes to or upon the written order of the Company,
signed by its Chief Executive Officer, its President, its Chief
Operating Officer, its Chief Financial Officer or any Vice
President (whether or not designated by a number or numbers or word
or words added before or after the title “Vice
President”), without any further action by the Company
hereunder. In addition, the Company may issue, from time to time in
accordance with the provisions of this Indenture additional Notes
(the “ Additional Notes ”) and such Notes may be
executed by the Company and delivered to the Trustee for
authentication, and the Trustee shall thereupon authenticate and
deliver said
Notes to or upon the written order of
the Company, signed by its Chief Executive Officer, its President,
its Chief Operating Officer, its Chief Financial Officer or any
Vice President (whether or not designated by a number or numbers or
word or words added before or after the title “Vice
President”).
With respect to any
Additional Notes, the Company shall set forth in
(i) Resolutions of the Company Board of Directors and the
Issuer Board of Directors and (ii) one or more indentures
supplemental hereto, the following information:
(1) the aggregate
principal amount of such Additional Notes to be authenticated and
delivered pursuant to this Indenture (except pursuant to
Sections 2.05, 2.06, 3.04, 3.05 and 14.02) which may be in an
unlimited aggregate principal amount;
(2) the issue price and
the issue date of such Additional Notes, including the date from
which interest shall accrue;
(3) whether such
Additional Notes shall be Restricted Securities or securities that
are not Restricted Securities; and
(4) that the Issuer has
reserved the number of additional shares of Common Stock sufficient
to provide for the exchange of the Additional Notes from time to
time.
The Initial Notes and the
Additional Notes, if any, shall be considered collectively as a
single class (regardless of any series designation) for all
purposes of this Indenture. Holders of the Initial Notes and the
Additional Notes will vote and consent together on all matters to
which such holders are entitled to vote or consent as one class,
and none of the holders of the Initial Notes or the Additional
Notes shall have the right to vote or consent as a separate class
on any matter to which such Holders are entitled to vote or
consent.
Additional Notes may be
offered and sold by the Company from time to time pursuant to one
or more purchase agreements which shall specify the terms under
which such Additional Notes will be sold in accordance with
applicable law.
Section 2.02. Form of
Notes . The Notes and the Trustee’s certificate of
authentication to be borne by such Notes shall be substantially in
the form set forth in Exhibit A. The terms and provisions
contained in the form of Note attached as Exhibit A hereto
shall constitute, and are hereby expressly made, a part of this
Indenture and, to the extent applicable, the Company and the
Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound
thereby.
Any of the Notes may have
such letters, numbers or other marks of identification and such
notations, legends, endorsements or changes as the officers
executing the same may approve (execution thereof to be conclusive
evidence of such approval) and as are not inconsistent with the
provisions of this Indenture, or as may be required by the
Custodian, the Depositary or by the National Association of
Securities Dealers, Inc. in order for the Notes to be tradable on
The Portal Market or as may be required for the Notes to be
tradable on any other market developed for trading of securities
pursuant to Rule 144A or as may be required to comply with any
applicable law or with any rule or regulation made pursuant thereto
or with any rule or regulation of any securities exchange or
automated quotation system on which the Notes may be listed, or to
conform to usage, or to indicate any special limitations or
restrictions to which any particular Notes are subject.
So long as the Notes are
eligible for book-entry settlement with the Depositary, or unless
otherwise required by law, or otherwise contemplated by
Section 2.05(a), all of the Notes will be represented by one
or more Notes in global form registered in the name of the
Depositary or the nominee of the Depositary (a “ Global
Note ”). The transfer and exchange of beneficial
interests in any such Global Note shall be effected through the
Depositary in accordance with this Indenture and the applicable
procedures of the Depositary. Except as provided in
Section 2.05(a), beneficial holders of a Global Note will not
receive or be entitled to receive physical delivery of certificates
in definitive form and will not be considered holders of such
Global Note.
Any Global Note shall
represent such of the outstanding Notes as shall be specified
therein and shall provide that it shall represent the aggregate
Principal Amount of outstanding Notes from time to time endorsed
thereon and that the aggregate Principal Amount of outstanding
Notes represented thereby may from time to time be increased or
reduced to reflect redemptions, repurchases, conversions, transfers
or exchanges permitted hereby. Any endorsement of a Global Note to
reflect the amount of any increase or decrease in the Principal
Amount of outstanding Notes represented thereby shall be made by
the Trustee or the Custodian, at the direction of the Trustee, in
such manner and upon instructions given by the holder of such Notes
in accordance with this Indenture. Payment of the Principal Amount
of and Interest on any Global Note shall be made to the holder of
such Note.
Section 2.03. Date
and Denomination of Notes; Payments of Interest . The Notes
shall be issuable in fully registered form without interest coupons
in denominations of $1,000 Principal Amount and integral multiples
thereof. Each Note shall be dated the date of its authentication
and shall bear Interest from the date specified on the face of the
form of Note attached as Exhibit A hereto. Interest on the
Notes shall be computed on the basis of a 360-day year comprised of
twelve 30-day months.
The Person in whose name any
Note (or its Predecessor Note) is registered on the Note Register
at 5:00 p.m., New York City time, on the Regular Record Date with
respect to an Interest Payment Date (whether or not such day is a
Business Day) shall be entitled to receive the Interest payable on
such Interest Payment Date, except that (i) Interest payable
at the Stated Maturity will be payable to the Person to whom the
Principal Amount is payable and (ii) the Interest payable upon
redemption or repurchase will be payable to the Person to whom the
Principal Amount is payable pursuant to such redemption or
repurchase (unless the Redemption Date or the Repurchase Date, as
the case may be, is after a Regular Record Date and on or prior to
the corresponding Interest Payment Date, in which case the
semi-annual payment of interest becoming due on such date shall be
payable to the holders of such Notes registered as such on the
applicable Regular Record Date). Interest shall be payable at the
office of the Company maintained by the Company for such purposes,
which shall initially be an office or agency of the Trustee. The
Company shall pay Interest (i) on any Notes in certificated
form by check mailed to the address of the Person entitled thereto
as it appears in the Note Register (or upon written notice, by wire
transfer in immediately available funds, if such Person is entitled
to Interest on Notes with an aggregate Principal Amount in excess
of $2,000,000) (provided that at the Stated Maturity, Interest on
any Note will be payable with the Principal Amount at the
Company’s office or agency in New York City) or (ii) on
any Global Note by wire transfer of immediately available funds to
the account of the Depositary or its nominee.
Any Interest on any Note
which is payable, but is not punctually paid or duly provided for,
on any December 15 or June 15 (herein called “
Defaulted Interest ”) shall forthwith cease to be
payable to the Noteholder on the relevant Regular Record Date by
virtue of its having been such Noteholder, and such Defaulted
Interest shall be paid by the Company and the Issuer, at its
election in each case, as provided in clause (1) or
(2) below:
(1) The Company may
elect to make payment of any Defaulted Interest to the Persons in
whose names the Notes (or their respective Predecessor Notes) are
registered at 5:00 p.m., New York City time, on a “
Special Record Date ” for the payment of such
Defaulted Interest, which shall be the date 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 Note and
the date of the proposed payment (which shall be not less than
twenty-five days after the receipt by the Trustee of such notice,
unless the Trustee shall consent to an earlier date), and at the
same time the Company shall deposit with the Trustee an amount of
money equal to the aggregate amount to be paid in respect of such
Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit on or prior to the date of the proposed
payment, such money when deposited to be held in trust for the
benefit of the Persons entitled to such Defaulted Interest as in
this clause provided. Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall
be not more than fifteen days and not less than ten days prior to
the date of the proposed payment, and not less than ten days after
the receipt by the Trustee of the notice of the proposed payment.
The Trustee shall promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company,
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 his address as it
appears in the Note Register, not less than ten days prior to such
Special Record Date. Notice of the proposed payment of such
Defaulted Interest and the Special Record Date therefor having been
so mailed, such Defaulted Interest shall be paid to the Persons in
whose names the Notes (or their respective Predecessor Notes) are
registered at 5:00 p.m., New York City time, on such Special Record
Date and shall no longer be payable pursuant to the following
clause (2) of this Section 2.03.
(2) The Company may make
payment of any Defaulted Interest in any other lawful manner not
inconsistent with the requirements of any securities exchange or
automated quotation system on which the Notes may be listed or
designated for issuance, and upon such notice as may be required by
such exchange or automated quotation system, if, after notice given
by the Company to the Trustee of the proposed payment pursuant to
this clause, such manner of payment shall be deemed practicable by
the Trustee.
Section 2.04.
Execution of Notes . The Notes shall be signed in the name
and on behalf of the Company by the manual or facsimile signature
of its Chief Executive Officer, President, Chief Operating Officer,
Chief Financial Officer or any Vice President (whether or not
designated by a number or numbers or word or words added before or
after the title “Vice President”). Only such Notes as
shall bear thereon a certificate of authentication substantially in
the form set forth on the form of Note attached as Exhibit A
hereto, manually executed by the Trustee (or an authenticating
agent appointed by the Trustee as provided by Section 16.11),
shall be entitled to the benefits of this Indenture or be valid or
obligatory for any purpose. Such certificate by the Trustee (or
such an authenticating agent) upon any Note executed by the Company
shall be conclusive evidence that the Note so authenticated has
been duly authenticated and delivered hereunder and that the holder
is entitled to the benefits of this Indenture.
In case any officer of the
Company who shall have signed any of the Notes shall cease to be
such officer before the Notes so signed shall have been
authenticated and delivered by the Trustee, or disposed of by the
Company, such Notes nevertheless may be authenticated and delivered
or disposed of as though the person who signed such Notes had not
ceased to be such officer of the Company, and any Note may be
signed on behalf of the Company by such persons as, at the actual
date of the execution of such Note, shall be the proper officers of
the Company, although at the date of the execution of this
Indenture any such person was not such an officer.
Section 2.05.
Exchange and Registration of Transfer of Notes; Restrictions on
Transfer . (a) The Company shall cause to be kept at the
Corporate Trust Office a register (the register maintained in such
office and in any other office or agency of the Company designated
pursuant to Section 4.02 being herein sometimes collectively
referred to as the “ Note Register ”) in which,
subject to such reasonable regulations as it may prescribe, the
Company shall provide for the registration of Notes and of
transfers of Notes. The Note Register shall be in written form or
in any form capable of being converted into written form within a
reasonably prompt period of time. The Trustee is hereby appointed
“ Note Registrar ” for the purpose of
registering Notes and transfers of Notes as herein provided. The
Company may appoint one or more co-registrars in accordance with
Section 4.02.
Upon surrender for
registration of transfer of any Note to the Note Registrar or any
co-registrar, and satisfaction of the requirements for such
transfer set forth in this Section 2.05, the Company shall
execute, and the Trustee shall authenticate and deliver, in the
name of the designated transferee or transferees, one or more new
Notes of any authorized denominations and of a like aggregate
Principal Amount and bearing such restrictive legends as may be
required by this Indenture.
Notes may be exchanged for
other Notes of any authorized denominations and of a like aggregate
Principal Amount, upon surrender of the Notes to be exchanged at
any such office or agency maintained by the Company pursuant to
Section 4.02. Whenever any Notes are so surrendered for
exchange, the Company shall execute, and the Trustee shall
authenticate and deliver, the Notes which the Noteholder making the
exchange is entitled to receive bearing registration numbers not
contemporaneously outstanding.
All Notes issued upon any
registration of transfer or exchange of Notes shall be the valid
obligations of the Company, evidencing the same debt, and entitled
to the same benefits under this Indenture, as the Notes surrendered
upon such registration of transfer or exchange.
All Notes presented or
surrendered for registration of transfer or for exchange,
redemption, repurchase or conversion shall (if so required by the
Company or the Note Registrar) be duly endorsed, or be accompanied
by a written instrument or instruments of transfer in form
satisfactory to the Company, duly executed by the Noteholder
thereof or his attorney duly authorized in writing.
No service charge shall be
made to any holder for any registration of, transfer or exchange of
Notes, but the Company may require payment by the holder of a sum
sufficient to cover any tax, assessment or other governmental
charge that may be imposed in connection with any registration of
transfer or exchange of Notes.
Neither the Company nor the
Trustee nor any Note Registrar shall be required to exchange or
register a transfer of (a) any Notes for a period of fifteen
days next preceding the mailing of a notice of redemption of Notes
to be redeemed, (b) any Notes or portions thereof called for
redemption pursuant to Section 3.01 (c) any Notes or
portions thereof surrendered for exchange pursuant to
Article 14, (d) any Notes or portions thereof tendered
for repurchase (and not withdrawn) pursuant to Section 3.04 or
(e) any Notes or portions thereof tendered for repurchase (and
not withdrawn) pursuant to Section 3.05.
(b) The following
provisions shall apply only to Global Notes:
(i) Each Global Note
authenticated under this Indenture shall be registered in the name
of the Depositary or a nominee thereof and delivered to such
Depositary or a nominee thereof or Custodian therefor, and each
such Global Note shall constitute a single Note for all purposes of
this Indenture.
(ii) Notwithstanding any
other provision in this Indenture, no Global Note may be exchanged
in whole or in part for Notes registered, and no transfer of a
Global Note in whole or in part may be registered, in the name of
any Person other than the Depositary or a nominee thereof unless
(A) the Depositary (x) has notified the Company that it
is unwilling or unable to continue as Depositary for such Global
Note or (y) has ceased to be a clearing agency registered
under the Exchange Act, and a successor depositary has not been
appointed by the Company within ninety days, (B) an Event of
Default has occurred and is continuing, (C) the Company, in
its sole discretion, notifies the Trustee in writing that it no
longer wishes to have all the Notes represented by Global Notes or
(D) any beneficial holder reasonably requests such exchange on
terms acceptable to the Company, the Trustee and the Depositary,
which in the case of the Trustee may include, in the
Trustee’s sole discretion, among other things, the
requirement that (i) the Trustee and any Note Registrar
receive (a) from the Company or the Depositary, a written
order, in either case requesting such exchange, and an Opinion of
Counsel (which upon receipt thereof the Trustee and such Note
Registrar shall be fully protected in relying) to the effect that
(x) all securities laws in connection with such exchange have
been complied with and (y) such exchange is otherwise
authorized or permitted by this Indenture; and (b) from such
beneficial holder (x) an affidavit as to its beneficial
ownership interest in such Global Note and/or (y) an
indemnity, reasonably satisfactory to the Trustee and such Note
Registrar, against any loss, liability or expense to the Trustee
and such Note Registrar to the extent that the Trustee or Note
Registrar acts upon such order, affidavit and/or indemnity; and
(ii) such exchange can be accomplished in a manner that is
practicable and not inconsistent with the rules of any applicable
Depositary or securities exchange upon which the Notes may be
listed for trading. Any Global Note exchanged pursuant to clause
(A) or (B) above shall be so exchanged in whole and not
in part and any Global Note exchanged pursuant to clause
(C) or (D) above may be exchanged in whole or from time
to time in part as directed by the Company. Any Note issued in
exchange for a Global Note or any portion thereof shall be a Global
Note; provided that any such Note so issued that is
registered in the name of a Person other than the Depositary or a
nominee thereof shall not be a Global Note.
(iii) Notes issued in
exchange for a Global Note or any portion thereof pursuant to
clause (ii) above shall be issued in definitive, fully
registered form, without interest coupons, shall have an aggregate
Principal Amount equal to that of such Global Note or portion
thereof to be so exchanged, shall be registered in such names and
be in such authorized denominations as the Depositary shall
designate and shall bear any legends required hereunder. Any Global
Note to be exchanged in whole shall be surrendered by the
Depositary to the Trustee, as Note Registrar. With regard to any
Global Note to be exchanged in part, either such Global Note shall
be so surrendered for exchange or, if the Trustee is acting as
Custodian for the Depositary or its nominee with respect to such
Global Note, the Principal Amount thereof shall be reduced, by an
amount equal to the portion thereof to be so exchanged, by means of
an appropriate adjustment made on the records of the Trustee. Upon
any such surrender or adjustment, the Trustee shall authenticate
and make available for delivery the Note issuable on such exchange
to or upon the written order of the Depositary or an authorized
representative thereof.
(iv) In the event of the
occurrence of any of the events specified in clause
(ii) above, the Company will promptly make available to the
Trustee a reasonable supply of certificated Notes in definitive,
fully registered form, without interest coupons.
(v) Neither any members
of, or participants in, the Depositary (“ Agent
Members ”) nor any other Persons on whose behalf Agent
Members may act shall have any rights under this Indenture with
respect to any Global Note registered in the name of the Depositary
or any nominee thereof, and the Depositary or such nominee, as the
case may be, may be treated by the Company, the Issuer, the
Subsidiary Guarantors, the Trustee and any agent of the Company,
the Issuer, the Subsidiary Guarantors or the Trustee as the
absolute owner and holder of such Global Note for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall
prevent the Company, the Issuer, the Subsidiary Guarantors, the
Trustee or any agent of the Company, the Issuer, the Subsidiary
Guarantors or the Trustee from giving effect to any written
certification, proxy or other authorization furnished by the
Depositary or such nominee, as the case may be, or impair, as
between the Depositary, its Agent Members and any other Person on
whose behalf an Agent Member may act, the operation of customary
practices of such Persons governing the exercise of the rights of a
beneficial holder of any Note.
(vi) At such time as all
interests in a Global Note have been redeemed, repurchased,
canceled or exchanged for Notes in certificated form, such Global
Note shall, upon receipt thereof, be canceled by the Trustee in
accordance with standing procedures and instructions existing
between the Depositary and the Custodian. At any time prior to such
cancellation, if any interest in a Global Note is redeemed,
repurchased, canceled or exchanged for Notes in certificated form,
the Principal Amount of such Global Note shall, in accordance with
the standing procedures and instructions existing between the
Depositary and the Custodian, be appropriately reduced, and an
endorsement shall be made on such Global Note, by the Trustee or
the Custodian, at the direction of the Trustee, to reflect such
reduction.
(c) Every Note that
bears or is required under this Section 2.05(c) to bear the
legend set forth in this Section 2.05(c) (together with any
Common Stock issued upon exchange of the Notes bearing such legend
and required to bear the legend set forth in Exhibit B,
collectively, the “ Restricted Securities ”)
shall be subject to the restrictions on transfer set forth in this
Section 2.05(c) (including those set forth in the legend
below) unless such restrictions on transfer shall be waived by
written consent of the Company, and the holder of each such
Restricted Security, by such holder’s acceptance thereof,
agrees to be bound by all such restrictions on transfer. As used in
Section 2.05(c) and 2.05(d), the term “ transfer
” encompasses any sale, pledge, loan, transfer or other
disposition whatsoever of any Restricted Security or any interest
therein.
Until the expiration of the
holding period applicable to sales thereof under Rule 144(k) under
the Securities Act (or any successor provision), any certificate
evidencing such Note (and all securities issued in exchange
therefor or substitution thereof, other than Common Stock, if any,
issued upon exchange thereof, which shall bear the legend set forth
in Exhibit B, if applicable) shall bear a legend in
substantially the following form, unless such Note has been sold
pursuant to a registration statement that has been declared
effective under the Securities Act (and which continues to be
effective at the time of such transfer) or pursuant to
Rule 144 under the Securities Act or any similar provision
then in force, or unless otherwise agreed by the Company in
writing, with written notice thereof to the Trustee:
THIS SECURITY HAS NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER
JURISDICTION. 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, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY ITS
ACCEPTANCE HEREOF:
(1) REPRESENTS THAT IT
IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)) AND
IS PURCHASING IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT;
(2) AGREES ON ITS OWN
BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS
PURCHASED SECURITIES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE
ORIGINAL ISSUANCE OF THIS SECURITY OFFER, SELL OR OTHERWISE
TRANSFER SUCH SECURITY OR ANY COMMON STOCK ISSUABLE UPON EXCHANGE
OF SUCH SECURITY EXCEPT (A) TO CSK AUTO, INC. (THE
“ISSUER”) OR ANY SUBSIDIARY THEREOF, (B) PURSUANT
TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER
THE SECURITIES ACT AND WHICH CONTINUES TO BE EFFECTIVE AT THE TIME
OF SUCH TRANSFER, (C) TO A QUALIFIED INSTITUTIONAL BUYER IN
COMPLIANCE WITH RULE 144A OR (D) PURSUANT TO THE EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT PROVIDED
BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE); AND
(3) AGREES THAT IT WILL
DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED (OTHER
THAN A TRANSFER PURSUANT TO CLAUSE 2(B) OR 2(D) ABOVE) A NOTICE
SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND.
IN CONNECTION WITH ANY TRANSFER OF THIS
SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF SUCH
SECURITY (OTHER THAN A TRANSFER PURSUANT TO CLAUSE 2(B) ABOVE), THE
HOLDER MUST CHECK THE APPROPRIATE BOX SET FORTH ON THE REVERSE
HEREOF RELATING TO THE MANNER OF SUCH TRANSFER AND SUBMIT THIS
CERTIFICATE TO THE TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS
APPLICABLE). IF THE PROPOSED TRANSFER IS PURSUANT TO CLAUSE 2(D)
ABOVE, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE
TRUSTEE (OR ANY SUCCESSOR TRUSTEE, AS APPLICABLE), SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS THE ISSUER
OR THE TRUSTEE MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER
IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION
NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THIS LEGEND WILL BE REMOVED UPON THE EARLIER OF THE TRANSFER
OF THIS SECURITY PURSUANT TO CLAUSE 2(B) OR 2(D) ABOVE OR THE
EXPIRATION OF TWO YEARS FROM THE ORIGINAL ISSUANCE OF THE SECURITY
EVIDENCED HEREBY.
Each stock certificate
representing Common Stock issued upon exchange of a Note bearing
the legend set forth in this Section 2.05(c) shall bear a
comparable legend as set forth in Exhibit B.
Any Note (or security issued
in exchange or substitution therefor) as to which such restrictions
on transfer shall have expired in accordance with their terms or as
to conditions for removal of the foregoing legend set forth therein
have been satisfied may, upon surrender of such Note for exchange
to the Note Registrar in accordance with the provisions of this
Section 2.05, be exchanged for a new Note or Notes, of like
tenor and aggregate Principal Amount, which shall not bear the
restrictive legend required by this Section 2.05(c). If the
Restricted Security surrendered for exchange is represented by a
Global Note bearing the legend set forth in this
Section 2.05(c), the Principal Amount of the legended Global
Note shall be reduced by the appropriate Principal Amount and the
Principal Amount of a Global Note without the legend set forth in
this Section 2.05(c) shall be increased by an equal Principal
Amount. If a Global Note without the legend set forth in this
Section 2.05(c) is not then outstanding, the Company shall
execute and the Trustee shall authenticate and deliver an
unlegended Global Note to the Depositary.
(d) Any Note or Common
Stock issued upon the exchange of a Note that, prior to the
expiration of the holding period applicable to sales thereof under
Rule 144(k) under the Securities Act (or any successor provision),
is purchased or owned by the Company, the Issuer or any Affiliate
thereof may not be resold by the Company, the Issuer or such
Affiliate unless registered under the Securities Act or resold
pursuant to an exemption from the registration requirements of the
Securities Act in a transaction which results in such Notes or
Common Stock, as the case may be, no longer being “restricted
securities” (as defined under Rule 144).
(e) 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 Note (including any transfers between or among
Agent Members or beneficial holders of interests in any Global
Note) other than to require delivery of such certificates and other
documentation or evidence as are expressly required by, and to do
so if and when expressly required by, the terms of this Indenture,
and to examine the same to determine substantial compliance as to
form with the express requirements hereof.
Neither the Trustee nor any
agent of the Trustee shall have any responsibility for actions
taken or not taken by the Depositary.
Section 2.06.
Mutilated, Destroyed, Lost or Stolen Notes . In case any
Note shall become mutilated or be destroyed, lost or stolen, the
Company in its discretion may execute, and upon its written request
the Trustee or an authenticating agent appointed by the Trustee
shall authenticate and make available for delivery, a new Note,
bearing a number not contemporaneously outstanding, in exchange and
substitution for the mutilated Note, or in lieu of and in
substitution for the Note so destroyed, lost or stolen. In every
case, the applicant for a substituted Note shall furnish to the
Company, to the Trustee and, if applicable, to such authenticating
agent such security or indemnity satisfactory to them to save each
of them harmless for any loss, claim, damage, liability, cost or
expense caused by or connected with such substitution, and, in
every case of destruction, loss or theft, the applicant shall also
furnish to the Company, to the Trustee and, if applicable, to such
authenticating agent evidence to their satisfaction of the
destruction, loss or theft of such Note and of the ownership
thereof.
Following receipt by the
Trustee or such authenticating agent, as the case may be, of
satisfactory security or indemnity and evidence, as described in
the preceding paragraph, the Trustee or such authenticating agent
may authenticate any such substituted Note and make available for
delivery such Note. Upon the issuance of any substituted Note, the
Company may require the payment by the holder of a sum sufficient
to cover any tax, assessment or other governmental charge that may
be imposed in relation thereto and any other expenses connected
therewith. In case any Note which has matured or is about to mature
or has been called for redemption or has been tendered for
repurchase upon a Fundamental Change (and not withdrawn) or has
been surrendered for repurchase on a Repurchase Date (and not
withdrawn) or is to be exchanged into cash or combination of cash
and Common Stock, as the case may be, shall become mutilated or be
destroyed, lost or stolen, the Company may, instead of issuing a
substitute Note, pay or authorize the payment of or exchange or
authorize the exchange of the same (without surrender thereof
except in the case of a mutilated Note), as the case may be, if the
applicant for such payment or exchange shall furnish to the
Company, to the Trustee and, if applicable, to such authenticating
agent such security or indemnity satisfactory to them to save each
of them harmless from any loss, claim, damage, liability, cost or
expense caused by or in connection with such substitution, and, in
every case of destruction, loss or theft, the applicant shall also
furnish to the Company, the Trustee and, if applicable, any Paying
Agent or Exchange Agent evidence to their satisfaction of the
destruction, loss or theft of such Note and of the ownership
thereof.
Every substitute Note issued
pursuant to the provisions of this Section 2.06 by virtue of
the fact that any Note is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Note shall be found at
any time, and shall be entitled to all the benefits of (but shall
be subject to all the limitations set forth in) this Indenture
equally and proportionately with any and all other Notes duly
issued hereunder. To the extent permitted by law, all Notes shall
be held and owned upon the express condition that the foregoing
provisions are exclusive with respect to the replacement or payment
or conversion or redemption or repurchase of mutilated, destroyed,
lost or stolen Notes and shall preclude any and all other rights or
remedies notwithstanding any law or statute existing or hereafter
enacted to the contrary with respect to the replacement or payment
or conversion or redemption or repurchase of negotiable instruments
or other securities without their surrender.
Section 2.07.
Temporary Notes . Pending the preparation of Notes in
certificated form, the Company may execute and the Trustee or an
authenticating agent appointed by the Trustee shall, upon the
written request of the Company, authenticate and deliver temporary
Notes (printed or lithographed). Temporary Notes shall be issuable
in any authorized denomination, and substantially in the form of
the Notes in certificated form, but with such omissions, insertions
and variations as may be appropriate for temporary Notes, all as
may be determined by the Company. Every such temporary Note shall
be executed by the Company and authenticated by the Trustee or such
authenticating agent upon the same
conditions and in substantially the same
manner, and with the same effect, as the Notes in certificated
form. Without unreasonable delay, the Company will execute and
deliver to the Trustee or such authenticating agent Notes in
certificated form and thereupon any or all temporary Notes may be
surrendered in exchange therefor, at each office or agency
maintained by the Company pursuant to Section 4.02 and the
Trustee or such authenticating agent shall authenticate and make
available for delivery in exchange for such temporary Notes an
equal aggregate Principal Amount of Notes in certificated form.
Such exchange shall be made by the Company at its own expense and
without any charge therefor. Until so exchanged, the temporary
Notes shall in all respects be entitled to the same benefits and
subject to the same limitations under this Indenture as Notes in
certificated form authenticated and delivered hereunder.
Section 2.08.
Cancellation of Notes . All Notes surrendered for the
purpose of payment, redemption, repurchase, exchange or
registration of transfer shall, if surrendered to the Company or
any Paying Agent or any Note Registrar or any Exchange Agent, be
surrendered to the Trustee and promptly canceled by it, or, if
surrendered to the Trustee, shall be promptly canceled by it, and
no Notes shall be issued in lieu thereof except as expressly
permitted by any of the provisions of this Indenture. The Trustee
shall dispose of such canceled Notes in accordance with its
customary procedures. If the Company shall acquire any of the
Notes, such acquisition shall not operate as a redemption,
repurchase or satisfaction of the indebtedness represented by such
Notes unless and until the same are delivered to the Trustee for
cancellation.
Section 2.09. CUSIP
Numbers . The Company in issuing the Notes may use “
CUSIP ” or “ ISIN ” numbers and/or
similar numbers (if then generally in use), and, if so, the Trustee
shall use “ CUSIP ” and/or “ ISIN
” numbers in notices of redemption as a convenience to
Noteholders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either
as printed on the Notes or as contained in any notice of a
redemption and that reliance may be placed only on the other
identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of
such numbers. The Company will promptly notify the Trustee in
writing of any change in the “ CUSIP ” and/or
similar numbers.
Section 2.10.
Ranking . The indebtedness of the Company arising under or
in connection with this Indenture and every outstanding Note issued
under this Indenture from time to time constitutes and will
constitute a direct and senior general obligation of the Company
ranking equally with other existing and future senior Indebtedness
of the Company, and shall rank senior in right of payment to
existing and future Indebtedness of the Company and the Issuer that
is expressly made subordinate to the Notes by the terms of such
Indebtedness. Additionally, the Notes shall constitute Senior Debt
for purposes of the Senior Subordinated Indenture, and the Notes
shall be deemed to be Designated Senior Debt (as defined in the
Senior Subordinated Indenture) at such time as there does not exist
a Credit Agreement (as defined in the Senior Subordinated
Indenture). For purposes of this Section 2.10 only, “
Indebtedness ” means, without duplication, the
principal or face amount of (i) all obligations for borrowed
money, (ii) all obligations evidenced by notes or other
similar instruments, (iii) all obligations in respect of
letters of credit or bankers acceptances or similar instruments (or
reimbursement obligations with respect thereto), (iv) all
obligations to pay the deferred purchase price of property or
services, (v) all obligations as lessee which are capitalized
in accordance with generally accepted accounting principles, and
(vi) all Indebtedness of others guaranteed by the Company or
for which the Company is legally responsible or liable (whether by
agreement to purchase indebtedness of, or to supply funds or to
invest in, others).
ARTICLE 3
R EDEMPTION
AND R EPURCHASE OF N
OTES
Section 3.01.
Company’s Right to Redeem . Prior to December 15,
2010, the Notes will not be redeemable at the Company’s
option. At any time on or after December 15, 2010, the
Company, at its option, may redeem the Notes, in whole or in part,
in accordance with the provisions of Section 3.02,
Section 3.03 and Section 3.04 on the Redemption Date for
a redemption price in cash equal to 100% of the Principal Amount of
the Notes to be redeemed (the “ Redemption Price
”), plus any accrued and unpaid Interest on the Notes
redeemed to, but not including, the Redemption Date. If the
Redemption Date is after a Regular Record Date and on or prior to
the corresponding Interest Payment Date, the Interest payable on
such Interest Payment Date will be paid on the Redemption Date to
the holder on the Regular Record Date.
Section 3.02. Notice
of Optional Redemption; Selection of Notes .
(a) In case the Company shall
desire to exercise the right to redeem all or, as the case may be,
any part of the Notes pursuant to Section 3.01, it shall fix a
date for redemption (the “ Redemption Date ”)
and it or, at its written request received by the Trustee not fewer
than ten Business Days prior (or such shorter period of time as may
be acceptable to the Trustee) to the date the notice (which notice
shall be prepared by the Company) of such redemption (the “
Redemption Notice ”) is to be mailed, the Trustee in
the name of and at the expense of the Company, shall mail or cause
to be mailed (or, if The Depository Trust Company is the sole
holder of Notes, sent via electronic mail) the Redemption Notice
not fewer than 35 calendar nor more than 60 calendar days prior to
the Redemption Date to each holder of Notes so to be redeemed as a
whole or in part at its last address as the same appears on the
Note Register; provided that if the Company shall give such
notice, it shall also give written notice of the Redemption Date to
the Trustee. Such mailing shall be by first class mail. The notice,
if mailed in the manner herein provided, shall be conclusively
presumed to have been duly 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 Note
designated for redemption as a whole or in part shall not affect
the validity of the proceedings for the redemption of any other
Note. Concurrently with the mailing of any such Redemption Notice,
the Company shall issue a press release announcing such redemption,
the form and content of which press release shall be determined by
the Company in its sole discretion. The failure to issue any such
press release or any defect therein shall not affect the validity
of the Redemption Notice or any of the proceedings for the
redemption of any Note called for redemption.
(b) Each such Redemption
Notice shall specify:
(i) the aggregate Principal
Amount of Notes to be redeemed;
(ii) the CUSIP, ISIN or
similar number or numbers of the Notes being redeemed (if then
generally in use);
(iii) the Redemption Date
(which shall be a Business Day);
(iv) the Redemption Price at
which Notes are to be redeemed;
(v) the place or places of
payment and that payment will be made upon presentation and
surrender of such Notes;
(vi) that Interest accrued to
the Redemption Date will be paid as specified in said notice, and
that on and after said date Interest thereon or on the portion
thereof to be redeemed will cease to accrue;
(vii) that the holder has the
right to exchange the Notes called for redemption;
(viii) the Exchange Rate on
the date of such notice;
(ix) the time and the date on
which the right to exchange such Notes or portions thereof into
Common Stock will expire; and
(x) that the Company will pay
cash for fractional interests in shares of Common Stock, if any, as
provided in this Indenture.
If fewer than all the Notes are to be
redeemed, the Redemption Notice shall identify the Notes to be
redeemed (including CUSIP, ISIN or similar numbers, if any). In
case any Note is to be redeemed in part only, the Redemption Notice
shall state the portion of the Principal Amount thereof to be
redeemed and shall state that, on and after the Redemption Date,
upon surrender of such Note, a new Note or Notes in Principal
Amount equal to the unredeemed portion thereof will be
issued.
(c) On or prior to the
Redemption Date specified in the Redemption Notice given as
provided in this Section 3.02, the Company will deposit with
the Paying Agent (or, if the Company, the Issuer or a Subsidiary
Guarantors is acting as
Paying Agent, set aside, segregate and
hold in trust as provided in Section 4.04) an amount of money
in immediately available funds sufficient to redeem on the
Redemption Date all the Notes (or portions thereof) so called for
redemption (other than those theretofore surrendered for exchange
into Common Stock) at the Redemption Price plus accrued and unpaid
interest to, but excluding, the Redemption Date; provided
that if such payment is made on the Redemption Date, it must be
received by the Paying Agent by 10:00 a.m., New York City
time, on such date. The Company shall be entitled to retain any
interest, yield or gain on amounts deposited with the Paying Agent
pursuant to this Section 3.02(c) in excess of amounts required
hereunder to pay the Redemption Price and accrued interest to, but
not including, the Redemption Date. Subject to the last sentence of
Section 7.05, if any Note called for redemption is exchanged
pursuant hereto prior to such Redemption Date, any money deposited
with the Paying Agent or so segregated and held in trust for the
redemption of such Note shall be paid to the Company upon its
written request, or, if then held by the Company, the Issuer or any
of the Subsidiary Guarantors, shall be discharged from such
trust.
Whenever any Notes are to be
redeemed, the Company will give the Trustee written notice in the
form of an Officers’ Certificate as to the aggregate
Principal Amount of Notes to be redeemed not fewer than 10 Business
Days (or such shorter period of time as may be acceptable to the
Trustee) prior to the mailing of the Redemption Notice to the
holders.
(d) If less than all of the
outstanding Notes are to be redeemed, the Trustee shall select the
Notes or portions thereof of the Global Note or the Notes in
certificated form to be redeemed (in Principal Amounts of $1,000 or
integral multiples thereof) by lot, on a pro rata basis or by
another method the Trustee deems fair and appropriate. If any Note
selected for partial redemption is submitted for exchange in part
after such selection, the portion of such Note submitted for
exchange shall be deemed (so far as may be possible) to be from the
portion selected for redemption. The Notes (or portions thereof) so
selected shall be deemed duly selected for redemption for all
purposes hereof, notwithstanding that any such Note is submitted
for exchange in part before the mailing of the Redemption
Notice.
Upon any redemption of less
than all of the outstanding Notes, the Company and the Trustee may
(but need not), solely for purposes of determining the pro rata
allocation among such Notes as are not exchanged and outstanding at
the time of redemption, treat as outstanding any Notes surrendered
for exchange during the period of fifteen days next preceding the
mailing of a Redemption Notice and may (but need not) treat as
outstanding any Note authenticated and delivered during such period
in exchange for the not exchanged portion of any Note exchanged in
part during such period.
Section 3.03. Payment
of Notes Called for Redemption by the Company . If notice of
redemption has been given as provided in Section 3.02, the
Notes or portion of Notes with respect to which such notice has
been given shall, unless exchanged into Common Stock pursuant to
the terms hereof, become due and payable on the Redemption Date and
at the place or places stated in such notice at the Redemption
Price plus interest accrued to, but not including, the Redemption
Date. Interest on the Notes or portion of Notes so called for
redemption shall cease to accrue on and after the Redemption Date
(unless the Company shall default in the payment of the Redemption
Price plus interest accrued to, but not including, the Redemption
Date) and after 5:00 p.m., New York City time, on the second
Trading Day immediately preceding the Redemption Date, such Notes
shall cease to be exchangeable into Common Stock and, except as
provided in Section 7.05, to be entitled to any benefit or
security under this Indenture, and the holders thereof shall have
no right in respect of such Notes except the right to receive the
Redemption Price plus interest accrued to, but not including, the
Redemption Date. On presentation and surrender of such Notes at a
place of payment in said notice specified, the said Notes or the
specified portions thereof shall be paid and redeemed by the
Company at the Redemption Price plus interest accrued to, but not
including, the Redemption Date; provided that if the applicable
Redemption Date is after the applicable Regular Record Date and on
or before an Interest Payment Date, the Interest payable on such
Interest Payment Date shall be paid on such Interest Payment Date
to the holders of record of such Notes on the applicable Regular
Record Date instead of the holders surrendering such Notes for
redemption on such date.
(a) Upon presentation of any
Note redeemed in part only, the Company shall execute and the
Trustee shall authenticate and make available for delivery to the
holder thereof, at the expense of the Company, a new Note or Notes,
of authorized denominations, in Principal Amount equal to the
unredeemed portion of the Notes so presented.
Notwithstanding the
foregoing, the Trustee shall not redeem any Notes or mail any
Redemption Notice during the continuance of a default in payment of
Interest on the Notes. If any Note called for redemption shall not
be so paid upon
surrender thereof for redemption, the
principal shall, until paid or duly provided for, continue to bear
interest at the rate borne by the Note, compounded semi-annually,
and such Note shall remain exchangeable into cash or a combination
of cash and Common Stock, as the case may be, until the Principal
Amount and Interest shall have been paid or duly provided for. The
Company will notify all of the holders if the Company redeems any
of the Notes.
Section 3.04.
Repurchase of Notes by the Company at Option of Holders upon a
Fundamental Change .
(a) If a Fundamental
Change shall occur at any time prior to Stated Maturity, each
holder shall have the right, at such holder’s option, to
require the Company to repurchase for cash all or a portion of such
holder’s Notes, or any portion of the Principal Amount
thereof that is equal to $1,000 or an integral multiple of $1,000,
on the date specified in the Fundamental Change Repurchase Notice,
which date shall be no more than 30 Business Days after the date of
the Fundamental Change Repurchase Notice (subject to extension to
comply with applicable law) (the “ Fundamental Change
Repurchase Date ”). The Company shall repurchase such
Notes at a price equal to 100% of the Principal Amount thereof (the
“ Fundamental Change Repurchase Price ”) plus
any accrued and unpaid Interest on the Notes to, but not including,
the Fundamental Change Repurchase Date. If the applicable
Fundamental Change Repurchase Date is after a Regular Record Date
and on or prior to the corresponding Interest Payment Date, the
Interest payable on such Interest Payment Date shall be paid on
such Interest Payment Date to the holders of record of such Notes
on the applicable record date instead of the holders surrendering
such Notes for repurchase on such date.
(b) On or before the
30th calendar day after the occurrence of a Fundamental Change, the
Company, or at its written request the Trustee in the name of and
at the expense of the Company (which request must be received by
the Trustee at least five Business Days prior to the date the
Trustee is requested to give notice as described below, unless the
Trustee shall agree to a shorter period), shall mail or cause to be
mailed, by first class mail, to all holders of record on such date
a notice (which notice shall be prepared by the Company) (the
“ Fundamental Change Repurchase Notice ”) of the
occurrence of such Fundamental Change and of the repurchase right
at the option of the holders arising as a result thereof to each
holder of Notes at its last address as the same appears on the Note
Register, and the Company shall also provide notification thereof
in the manner contemplated by Section 14.01(c) to beneficial
owners as required by applicable law; provided that if the
Company shall give such notice, it shall also give written notice
of the Fundamental Change to the Trustee and Paying Agent, if other
than the Trustee, at such time as it is mailed to Noteholders. Such
notice, if mailed in the manner herein provided, shall be
conclusively presumed to have been duly given, whether or not the
holder receives such notice. Each Fundamental Change Repurchase
Notice shall state, among other things:
(i) the events causing the
Fundamental Change;
(ii) the date of the
Fundamental Change;
(iii) the last date on which
a holder may exercise the repurchase right;
(iv) the Fundamental Change
Repurchase Price and, to the extent known at the time of such
notice, the amount of Interest that will be payable with respect to
the Notes to, but not including, the Fundamental Change Repurchase
Date;
(v) the Fundamental Change
Repurchase Date;
(vi) the name and address of
the Paying Agent and the Exchange Agent, if the Notes are then
exchangeable in accordance with Section 14.01;
(vii) if the Notes are then
exchangeable in accordance with Section 14.01, the applicable
Exchange Rate at the time of such notice (and any applicable
adjustments to the applicable Exchange Rate);
(viii) if the Notes are then
exchangeable in accordance with Section 14.01, that Notes as
to which a Fundamental Change Repurchase Election has been given by
the holder may be exchanged only if the election has been withdrawn
by the holder in accordance with the terms of this
Indenture;
(ix) that the holder shall
have the right to withdraw any Notes surrendered prior to 5:00
p.m., New York City time, on the Business Day immediately preceding
the Fundamental Change Repurchase Date (or any such later time as
may be required by applicable law);
(x) a description of the
procedures which a Noteholder must follow to exercise such
repurchase right or to withdraw any surrendered Notes;
(xi) the CUSIP, ISIN or
similar number or numbers of the Notes (if then generally in use);
and
(xii) briefly, the exchange
rights of the holders of the Notes.
No failure of the Company to
give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the
proceedings for the repurchase of the Notes pursuant to this
Section 3.04.
(c) Notes shall be
repurchased pursuant to this Section 3.04 at the option of the
holder upon:
(i) delivery to the Paying
Agent by a holder of a duly completed notice (a “
Fundamental Change Repurchase Election ”) in the form
set forth on the reverse of the Note at any time prior to 5:00
p.m., New York City time, on the Business Day immediately preceding
the Fundamental Change Repurchase Date, which is subject to
extension to comply with applicable law, stating:
(A) if certificated notes
have been issued, the certificate numbers of the Notes which the
holder shall deliver to be repurchased;
(B) the portion of the
Principal Amount of the Notes that the holder shall deliver to be
repurchased, which portion must be $1,000 or an integral multiple
thereof; and
(C) that such Notes shall be
repurchased by the Company as of the Fundamental Change Repurchase
Date pursuant to the terms and conditions specified in the Notes
and in the Indenture; and
(ii) delivery or book-entry
transfer of the Notes to the Paying Agent simultaneously with or at
any time after delivery of the Fundamental Change Repurchase
Election (together with all necessary endorsements) at the
Corporate Trust Office of the Paying Agent, such delivery or
transfer being a condition to receipt by the holder of the
Fundamental Change Repurchase Price therefor; provided that such
Fundamental Change Repurchase Price shall be so paid pursuant to
this Section 3.04 only if the Notes so delivered or
transferred to the Paying Agent shall conform in all respects to
the description thereof in the related Fundamental Change
Repurchase Election. All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Note for
repurchase shall be determined by the Company, whose determination
shall be final and binding absent manifest error.
If the Notes are not in
certificated form, holders must provide notice of their election in
accordance with the appropriate procedures of the
Depositary.
Section 3.05.
Repurchase of Notes by the Company at Option of Holders on
Specified Dates .
(a) On each of
December 15, 2010, December 15, 2015 and
December 15, 2020 (each, a “ Company Repurchase
Date ”), each holder shall have the right, at such
holder’s option, to require the Company to repurchase for
cash all of such holder’s Notes, or any portion of the
Principal Amount thereof that is an integral multiple of $1,000.
The Company shall repurchase such Notes at a price equal to 100% of
the Principal Amount thereof (the “ Company Repurchase
Price ”) plus any accrued and unpaid Interest to, but not
including, the Company Repurchase Date; provided that the
Interest will be payable to the holder of record on the
corresponding Regular Record Date.
(b) On or before the 20th
Business Day prior to each Company Repurchase Date, the Company, or
at its written request the Trustee in the name of and at the
expense of the Company (which request must be received by the
Trustee at
least five Business Days prior to the
date the Trustee is requested to give notice as described below,
unless the Trustee shall agree to a shorter period), shall mail or
cause to be mailed, by first class mail, to all holders of record
on such date a notice (which notice shall be prepared by the
Company) of such optional repurchase (the “ Company
Repurchase Notice ”) to each holder of Notes at its last
address as the same appears on the Note Register, and the Company
shall also provide notification thereof in the manner contemplated
by Section 14.01(c) to beneficial owners as required by
applicable law; provided that if the Company shall give such
notice, it shall also give written notice to the Trustee and Paying
Agent, if other than the Trustee, at such time as it is mailed to
Noteholders. Such notice, if mailed in the manner herein provided,
shall be conclusively presumed to have been duly given, whether or
not the holder receives such notice. Each Company Repurchase Notice
shall state, among other things:
(i) the last date on which a
holder may exercise the repurchase right;
(ii) the Company Repurchase
Price and, to the extent known at the time of such notice, the
amount of Interest that will be payable with respect to the Notes
to, but not including, the Company Repurchase Date;
(iii) the Company Repurchase
Date;
(iv) the name and address of
the Paying Agent and the Exchange Agent, if the Notes are then
exchangeable in accordance with Section 13.01;
(v) if the Notes are then
exchangeable in accordance with Section 13.01, the applicable
Exchange Rate at the time of such notice (and any applicable
adjustments to the applicable Exchange Rate);
(vi) if the Notes are then
exchangeable in accordance with Section 13.01, those Notes as
to which a Company Repurchase Election has been given by the holder
may be exchanged only if the election has been withdrawn by the
holder in accordance with the terms of this Indenture;
(vii) that the holder shall
have the right to withdraw any Notes surrendered prior to 5:00
p.m., New York City time, on the Business Day immediately preceding
the Company Repurchase Date (or any such later time as may be
required by applicable law);
(viii) a description of the
procedures which a Noteholder must follow to exercise such
repurchase right or to withdraw any surrendered Notes;
(ix) the CUSIP, ISIN or
similar number or numbers of the Notes (if then generally in use);
and
(x) briefly, the exchange
rights of the holders of the Notes.
No failure of the Company to
give the foregoing notices and no defect therein shall limit the
Noteholders’ repurchase rights or affect the validity of the
proceedings for the repurchase of the Notes pursuant to this
Section 3.05.
(c) Notes shall be
repurchased pursuant to this Section 3.05 at the option of the
holder upon:
(i) delivery to the Paying
Agent by a holder of a duly completed notice (a “ Company
Repurchase Election ”) in the form set forth on the
reverse of the Note at any time from 9:00 a.m., New York City time,
on the 20 th Business Day preceding the Company Repurchase Date until 5:00
p.m., New York City time, on the Business Day immediately preceding
the Company Repurchase Date, stating:
(A) if certificated Notes
have been issued, the certificate numbers of the Notes which the
holder shall deliver to be repurchased;
(B) the portion of the
Principal Amount of the Notes that the holder shall deliver to be
repurchased, which portion must be $1,000 or an integral multiple
thereof; and
(C) that such Notes shall be
repurchased by the Company as of the Company Repurchase Date
pursuant to the terms and conditions specified in the Notes and in
the Indenture; and
(ii) delivery or book-entry
transfer of the Notes to the Paying Agent simultaneously with or at
any time after delivery of the Company Repurchase Election
(together with all necessary endorsements) at the Corporate Trust
Office of the Paying Agent, such delivery or transfer being a
condition to receipt by the holder of the Company Repurchase Price
therefor; provided that such Company Repurchase Price shall
be so paid pursuant to this Section 3.05 only if the Notes so
delivered or transferred to the Paying Agent shall conform in all
respects to the description thereof in the related Company
Repurchase Election. All questions as to the validity, eligibility
(including time of receipt) and acceptance of any Note for
repurchase shall be determined by the Company, whose determination
shall be final and binding absent manifest error.
If the Notes are not in
certificated form, holders must provide notice of their election in
accordance with the appropriate procedures of the
Depositary.
Section 3.06.
Conditions and Procedures for Repurchase at Option of
Holders .
(a) At the request of the
holder, the Company shall repurchase from such holder, pursuant to
Section 3.04 or Section 3.05, a portion of a Note, if the
Principal Amount of such portion is $1,000 or a whole multiple of
$1,000. Provisions of this Indenture that apply to the repurchase
of all of a Note also apply to the repurchase of such portion of
such Note. Upon presentation of any Note repurchased in part only,
the Company shall execute and the Trustee shall authenticate and
make available for delivery to the holder thereof, at the expense
of the Company, a new Note or Notes, of any authorized
denomination, in aggregate Principal Amount equal to the portion of
the Notes presented not repurchased.
(b) On or prior to a
Repurchase Date, the Company will deposit with the Paying Agent
(or, if the Company or the Issuer is acting as the Paying Agent,
set aside, segregate and hold in trust as provided in
Section 4.04) an amount of money sufficient to repurchase on
the Repurchase Date all the Notes or portions thereof to be
repurchased on such date at the Repurchase Price plus accrued and
unpaid Interest, if any, to, but not including, the Repurchase
Date, if applicable; provided that if such deposit is made
on the Repurchase Date it must be received by the Trustee or Paying
Agent, as the case may be, by 10:00 a.m., New York City time,
on such date.
If on the Repurchase Date the
Trustee or other Paying Agent appointed by the Company (or, if the
Company or the Issuer is acting as the Paying Agent, the Company or
the Issuer) holds money sufficient to pay the aggregate Repurchase
Price of all the Notes or portions thereof that are to be
repurchased plus accrued and unpaid Interest, if any, to, but not
including, the Repurchase Date, if applicable, then, on such
Repurchase Date (i) such Notes will cease to be outstanding,
(ii) Interest on such Notes will cease to accrue (in the case
of clauses (i) and (ii), whether or not book-entry transfer of
the Notes has been made or the Notes have been delivered to the
Paying Agent, as the case may be), and (iii) all other rights
of the holders of such Notes will terminate (other than the right
to receive the Repurchase Price plus accrued and unpaid Interest,
if any, to, but not including, the Repurchase Date, if applicable
upon book-entry transfer or delivery of the Notes, as the case may
be).
(c) Upon receipt by the
Paying Agent of a Repurchase Election, the holder of the Note in
respect of which such Repurchase Election was given shall (unless
such Repurchase Election is validly withdrawn) thereafter be
entitled to receive solely the Repurchase Price with respect to
such Note plus accrued and unpaid Interest, if any, to, but not
including, the Repurchase Date, if applicable. Such Repurchase
Price plus accrued and unpaid Interest, if any, to, but not
including, the Repurchase Date, if applicable, shall be paid to
such holder, subject to receipt of funds and/or Notes by the Paying
Agent, promptly following the later of (x) the Repurchase Date
with respect to such Note (provided the holder has satisfied the
conditions in Section 3.04(c) or Section 3.05(c), as
applicable) and (y) the time of book-entry transfer or
delivery of such Note to the Paying Agent by the holder thereof in
the manner required by Section 3.04(c) or
Section 3.05(c), as applicable. Notes in respect of which a
Repurchase Election has been given by the holder thereof may not be
exchanged pursuant to Article 14 hereof on or after the date
of the delivery of such Repurchase Election unless such Repurchase
Election has first been validly withdrawn.
(d) Notwithstanding anything
herein to the contrary, any holder delivering to the Paying Agent a
Repurchase Election shall have the right to withdraw such
Repurchase Election, in whole or in part, at any time prior to 5:00
p.m., New York City time, on the Business Day preceding the
Repurchase Date (or any such later time as may be required by
applicable law) by delivery of a written notice of withdrawal to
the Paying Agent, specifying:
(i) if certificated Notes
have been issued, the certificate numbers of the withdrawn
Notes;
(ii) the Principal Amount of
the Note with respect to which such notice of withdrawal is being
submitted; and
(iii) the Principal Amount,
if any, of such Note which remains subject to the original
Repurchase Election and which has been or will be delivered for
repurchase by the Company.
If the Notes are not in
certificated form, holders must provide notice of their withdrawal
in accordance with the appropriate procedures of the
Depositary.
The Paying Agent shall
promptly notify the Company of the receipt by it of any Repurchase
Election or written notice of withdrawal thereof.
(e) The Company will comply
with the provisions of Rule 13e-4 and any other tender offer
rules under the Exchange Act to the extent then applicable in
connection with the repurchase rights of the holders of Notes in
the event of a Fundamental Change or on any Company Repurchase
Date. If then required by applicable rules, the Company will file a
Schedule TO or any other schedule required in connection with
any offer by the Company to repurchase Notes.
(f) There shall be no
repurchase of any Notes pursuant to Section 3.04 or
Section 3.05 if there has occurred at any time prior to, and
is continuing on, the Repurchase Date an Event of Default (other
than an Event of Default that is cured by the payment of the
Repurchase Price with respect to such Notes). The Paying Agent will
promptly return to the respective holders thereof any Notes
(x) with respect to which a Repurchase Election has been
withdrawn in compliance with this Indenture or (y) held by it
during the continuance of an Event of Default (other than a default
in the payment of the Repurchase Price with respect to such Notes)
in which case, upon such return, the Repurchase Election with
respect thereto shall be deemed to have been withdrawn.
(g) The Paying Agent shall
return to the Company any cash that remains unclaimed as provided
in Section 11.03, together with interest, if any, thereon,
held by them for the payment of the Repurchase Price;
provided that to the extent that the aggregate amount of
cash deposited by the Company pursuant to Section 3.06(b)
exceeds the aggregate Repurchase Price of the Notes or portions
thereof which the Company is obligated to purchase as of the
Repurchase Date then, unless otherwise agreed in writing with the
Company, promptly after the Business Day following the Repurchase
Date, the Paying Agent shall return any such excess to the Company
together with interest, if any, thereon.
(h) In the case of (i) a
reclassification, change, consolidation, merger, binding share
exchange, combination, sale or conveyance to which
Section 14.06 applies, in which the Common Stock of the Issuer
is changed or exchanged as a result into the right to receive cash,
securities or other property, which includes shares of Common Stock
of the Issuer or shares of common stock of another Person that are,
or upon issuance will be, traded on a United States national
securities exchange or approved for trading on an established
automated over-the-counter trading market in the United States and
such shares constitute at the time such change or exchange becomes
effective in excess of 50% of the aggregate fair market value of
such cash, securities or other property (as determined by the
Company, which determination shall be conclusive and binding) or
(ii) a Public Acquirer Change of Control in which the Company
has made the election pursuant to Section 14.07 to adjust the
Exchange Rate and related exchange obligation, then the Company
shall execute and deliver to the Trustee a supplemental indenture
(accompanied by an Opinion of Counsel that such supplemental
indenture complies with the Trust Indenture Act as in force at the
date of execution of such supplemental indenture and is authorized
or permitted by this Indenture) modifying the applicable provisions
of this Article 3 and the definition of Fundamental Change, as
appropriate, as determined in good faith by the Company (which
determination shall be conclusive and binding), to make such
provisions apply to such other Person if different from the Issuer
(in lieu of the Issuer).
ARTICLE 4
P ARTICULAR C
OVENANTS
Section 4.01. Payment
of Principal and Interest . The Company covenants and agrees
that it will duly and punctually pay or cause to be paid the
Principal Amount of (including any Redemption Price or Repurchase
Price pursuant to Article 3) and Interest on each of the Notes
at the places, at the respective times and in the manner provided
herein and in the Notes.
Section 4.02.
Maintenance of Office or Agency . The Company will maintain
an office or agency in such cities as it shall determine, where the
Notes may be surrendered for registration of transfer or exchange
or for presentation for payment or for conversion, redemption or
repurchase and where notices and demands to or upon the Company in
respect of the Notes and this Indenture may be served. The Company
will give prompt written notice to the Trustee of the location, and
any change in the location, of such office or agency not designated
or appointed by the Trustee. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the
Corporate Trust Office.
The Company may also from
time to time designate co-registrars and one or more offices or
agencies where the Notes may be presented or surrendered for any or
all such purposes and may from time to time rescind such
designations. The Company will give prompt written notice of any
such designation or rescission and of any change in the location of
any such other office or agency.
The Company hereby initially
designates the Trustee as Paying Agent, Note Registrar, Custodian
and Exchange Agent, and each of the Corporate Trust Office and the
office of agency of the Trustee and its affiliate located at 101
Barclay Street, 8W, New York, New York 10286 shall be considered as
one such office or agency of the Company for each of the aforesaid
purposes.
So long as the Trustee is the
Note Registrar, the Trustee agrees to mail, or cause to be mailed,
the notices set forth in Section 7.10(a) and the third
paragraph of Section 7.11. If co-registrars have been
appointed in accordance with this Section, the Trustee shall mail
such notices only to the Company and the holders of Notes it can
identify from its records.
Section 4.03.
Appointments to Fill Vacancies in Trustee’s Office .
The Company, whenever necessary to avoid or fill a vacancy in the
office of Trustee, will appoint, in the manner provided in
Section 7.10, a Trustee, so that there shall at all times be a
Trustee hereunder.
Section 4.04.
Provisions as to Paying Agent . (a) If the Company
shall appoint a Paying Agent other than the Trustee, or if the
Trustee shall appoint such a Paying Agent, the Company will cause
such Paying Agent 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 4.04:
(1) that it will hold all
sums held by it as such agent for the payment of the Principal
Amount of or Interest on the Notes (whether such sums have been
paid to it by the Company or by any other obligor on the Notes) in
trust for the benefit of the holders of the Notes;
(2) that it will give the
Trustee notice of any failure by the Company (or by any other
obligor on the Notes) to make any payment of the Principal Amount
of or Interest on the Notes when the same shall be due and payable;
and
(3) that at any time during
the continuance of an Event of Default, upon request of the
Trustee, it will forthwith pay to the Trustee all sums so held in
trust.
The Company shall, on or
before each due date of the Principal Amount of or Interest on the
Notes, deposit with the Paying Agent a sum (in funds which are
immediately available on the due date for such payment) sufficient
to pay such
Principal Amount or Interest, and
(unless such Paying Agent is the Trustee) the Company will promptly
notify the Trustee of any failure to take such action;
provided that if such deposit is made on the due date, such
deposit shall be received by the Paying Agent by 10:00 a.m.,
New York City time, on such date.
(b) If the Company or
the Issuer shall act as Paying Agent, it will, on or before each
due date of the Principal Amount of or Interest on the Notes, set
aside, segregate and hold in trust for the benefit of the holders
of the Notes a sum sufficient to pay such Principal Amount or
Interest so becoming due and will promptly notify the Trustee of
any failure to take such action and of any failure by the Company
(or any other obligor under the Notes) to make any payment of the
Principal Amount of or Interest on the Notes when the same shall
become due and payable.
(c) Anything in this
Section 4.04 to the contrary notwithstanding, the Company may,
at any time, for the purpose of obtaining a satisfaction and
discharge of this Indenture, or for any other reason, pay or cause
to be paid to the Trustee all sums held in trust by the Company,
the Issuer or any Paying Agent hereunder as required by this
Section 4.04, such sums to be held by the Trustee upon the
trusts herein contained and upon such payment by the Company, the
Issuer or any Paying Agent to the Trustee, the Company, the Issuer
or such Paying Agent shall be released from all further liability
with respect to such sums.
(d) Anything in this
Section 4.04 to the contrary notwithstanding, the agreement to
hold sums in trust as provided in this Section 4.04 is subject
to Sections 12.02 and 12.03.
The Trustee shall not be
responsible for the actions of any other Paying Agents (including
the Company or the Issuer if acting as Paying Agent) and shall have
no control of any funds held by such other Paying
Agents.
Section 4.05.
Existence . Subject to Article 11, the Company will do
or cause to be done all things necessary to preserve and keep in
full force and effect its existence and rights (charter and
statutory); provided that the Company shall not be required to
preserve any such right if the Company shall determine that the
preservation thereof is no longer desirable in the conduct of the
business of the Company and that the loss thereof is not
disadvantageous in any material respect to the
Noteholders.
Section 4.06.
Rule 144A Information Requirement . Within the period
prior to the expiration of the holding period applicable to sales
thereof under Rule 144(k) under the Securities Act (or any
successor provision), the Company and the Issuer covenant and agree
that they shall, during any period in which financial information
with respect to it is not provided in accordance with
Section 13 or 15(d) under the Exchange Act, make available to
any holder or beneficial holder of Notes or any Common Stock issued
upon exchange thereof which continue to be Restricted Securities in
connection with any sale thereof and any prospective purchaser of
Notes or such Common Stock designated by such holder or beneficial
holder, the information required pursuant to Rule 144A(d)(4) under
the Securities Act upon the request of any holder or beneficial
holder of the Notes or such Common Stock and it will take such
further action as any holder or beneficial holder of such Notes or
such Common Stock may reasonably request, all to the extent
required from time to time to enable such holder or beneficial
holder to sell its Notes or Common Stock without registration under
the Securities Act within the limitation of the exemption provided
by Rule 144A, as such Rule may be amended from time to time.
Upon the request of any holder or any beneficial holder of the
Notes or such Common Stock, the Company and the Issuer will deliver
to such holder a written statement as to whether it has complied
with such requirements.
Section 4.07. Stay,
Extension and Usury Laws . The Company covenants (to the extent
that it may lawfully do so) that it shall not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit
or advantage of, any stay, extension or usury law or other law
which would prohibit or forgive the Company from paying all or any
portion of the Principal Amount of or Interest on the Notes as
contemplated herein, wherever enacted, now or at any time hereafter
in force, or which may affect the covenants or the performance of
this Indenture and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such
law, and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted
to the Trustee, but will suffer and permit the execution of every
such power as though no such law had been enacted.
Section 4.08.
Compliance Certificate . The Company shall deliver to the
Trustee, within one hundred twenty calendar days after the end of
each fiscal year of the Company (which fiscal year of the Company
presently ends on the
Sunday nearest to January 31), a
certificate signed by either the principal executive officer,
principal financial officer or principal accounting officer of the
Company, stating whether or not to the best knowledge of the signer
thereof the Company or the Issuer is in default in the performance
and observance of any of the terms, provisions and conditions of
this Indenture (without regard to any period of grace or
requirement of notice provided hereunder) and, if the Company or
the Issuer shall be in default, specifying all such defaults and
the nature and the status thereof of which the signer may have
knowledge.
The Company will deliver to
the Trustee, promptly upon becoming aware of (i) any default
in the performance or observance of any covenant, agreement or
condition contained in this Indenture, or (ii) any Event of
Default, an Officers’ Certificate specifying with
particularity such default or Event of Default and further stating
what action the Company or the Issuer has taken, is taking or
proposes to take with respect thereto.
Any notice required to be
given under this Section 4.08 shall be delivered to a
Responsible Officer of the Trustee at its Corporate Trust
Office.
Section 4.09.
Additional Interest Notice . In the event that the Company
is required to pay Additional Interest to holders of Notes pursuant
to the Registration Rights Agreement, the Company will provide
written notice (“ Additional Interest Notice ”)
to the Trustee of its obligation to pay Additional Interest no
later than fifteen calendar days prior to the proposed payment date
for the Additional Interest, and the Additional Interest Notice
shall set forth the amount of Additional Interest to be paid by the
Company on such payment date. The Trustee shall not at any time be
under any duty or responsibility to any holder of Notes to
determine the Additional Interest, or with respect to the nature,
extent or calculation of the amount of Additional Interest when
made, or with respect to the method employed in such calculation of
the Additional Interest.
Section 4.10. Future
Guarantors . The Company shall cause each Person that becomes a
Domestic Subsidiary to execute and deliver to the Trustee promptly
after such Person becomes a Domestic Subsidiary a supplemental
indenture substantially in the form of Exhibit C hereto
pursuant to which such Domestic Subsidiary shall become a
Subsidiary Guarantor hereunder.
ARTICLE 5
N OTEHOLDERS
’ L ISTS AND R
EPORTS BY THE C
OMPANY AND THE T
RUSTEE
Section 5.01.
Noteholders’ Lists . The Company covenants and agrees
that it will furnish or cause to be furnished to the Trustee,
semiannually, not more than fifteen calendar days after each
December 1 or June 1 in each year beginning with
June 1, 2006, and at such other times as the Trustee may
request in writing, within 30 calendar days after receipt by the
Company of any such request (or such lesser time as the Trustee may
reasonably request in order to enable it to timely provide any
notice to be provided by it hereunder), a list in such form as the
Trustee may reasonably require of the names and addresses of the
holders of Notes as of a date not more than fifteen calendar days
(or such other date as the Trustee may reasonably request in order
to so provide any such notices) prior to the time such information
is furnished, except that no such list need be furnished by the
Company to the Trustee so long as the Trustee is acting as the sole
Note Registrar.
Section 5.02.
Preservation and Disclosure of Lists . (a) The Trustee
shall preserve, in as current a form as is reasonably practicable,
all information as to the names and addresses of the holders of
Notes contained in the most recent list furnished to it as provided
in Section 5.01 or maintained by the Trustee in its capacity
as Note Registrar or co-registrar in respect of the Notes, if so
acting. The Trustee may destroy any list furnished to it as
provided in Section 5.01 upon receipt of a new list so
furnished.
(b) The rights of
Noteholders to communicate with other holders of Notes with respect
to their rights under this Indenture or under the Notes, and the
corresponding rights and duties of the Trustee, shall be as
provided by the Trust Indenture Act.
(c) Every Noteholder, by
receiving and holding the same, agrees with the Company and the
Trustee that neither the Company nor the Trustee nor any agent of
either of them shall be held accountable by reason of any
disclosure of information as to names and addresses of holders of
Notes made pursuant to the Trust Indenture Act.
Section 5.03. Reports
by Trustee . (a) Within 60 calendar days after
February 1 of each year commencing with the year 2006, the
Trustee shall transmit to holders of Notes such reports dated as of
February 1 of the year in which such reports are made
concerning the Trustee and its actions under this Indenture as may
be required pursuant to the Trust Indenture Act at the times and in
the manner provided pursuant thereto. In the event that no events
have occurred under the applicable sections of the Trust Indenture
Act, the Trustee shall be under no duty or obligation to provide
such reports.
(b) A copy of such
report shall, at the time of such transmission to holders of Notes,
be filed by the Trustee with each stock exchange and automated
quotation system upon which the Notes are listed, if any, and with
the Company. The Company will promptly notify the Trustee in
writing when the Notes are listed on any stock exchange or
automated quotation system or delisted therefrom.
Section 5.04. Reports
by Company . The Company shall file with the Trustee (and the
Commission if at any time after the Indenture becomes qualified
under the Trust Indenture Act), and transmit to holders of Notes,
such information, documents and other reports and such summaries
thereof, as may be required pursuant to the Trust Indenture Act at
the times and in the manner provided pursuant to such Act, whether
or not the Notes are governed by such Act; provided that any such
information, documents or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act
shall, unless such information, documents or reports are available
on the Commission’s EDGAR filing system (or any successor
thereto) be filed with the Trustee within fifteen calendar days
after the same is so required to be filed with the Commission.
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).
ARTICLE 6
R EMEDIES
OF THE T RUSTEE
AND N OTEHOLDERS ON
AN E VENT OF D
EFAULT
Section 6.01. Events
of Default . In case one or more of the following events (each,
an “ Event of Default ”) (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) shall have
occurred and be continuing:
(a) default in the
payment of the Principal Amount of any of the Notes as and when the
same shall become due and payable either at Stated Maturity or in
connection with any redemption, repurchase or Fundamental Change
repurchase, in each case pursuant to Article 3, or otherwise;
or
(b) default in the
payment of any installment of Interest upon any of the Notes as and
when the same shall become due and payable, and continuance of such
default for a period of 30 calendar days; or
(c) failure to provide
on a timely basis a Fundamental Change Repurchase Notice after the
occurrence of a Fundamental Change as required by
Section 3.04; or
(d) default in the
Company’s obligation to exchange the Notes into cash or a
combination of cash and Common Stock, as applicable, upon the
exercise of a holder’s exchange rights pursuant to
Article 14 and continuation of such default for a period of
ten calendar days; or
(e) failure on the part
of the Company duly to observe or perform any other of the terms,
covenants or agreements on the part of the Company in the Notes or
this Indenture (other than a covenant or agreement a default in
whose performance or whose breach is elsewhere in this
Section 6.01 specifically dealt with) continued for a period
of 60 calendar days after the date on which written notice of such
failure, requiring the Company to remedy the same, shall
have been given to the Company by the
Trustee, or to the Company and a Responsible Officer of the Trustee
by the holders of at least 25% in aggregate Principal Amount of the
Notes at the time outstanding determined in accordance with
Section 8.04; or
(f) default under any
mortgage, indenture or instrument under which there may be issued
or by which there may be evidenced or secured any indebtedness for
money borrowed by the Company or any of its Subsidiaries (or the
payment of which is guaranteed by the Company or any of its
Significant Subsidiaries) having a principal amount then
outstanding, individually or in the aggregate, of at least
$20.0 million, other than indebtedness owed to the Company or
a Subsidiary, whether such indebtedness or guarantee now exists or
is hereafter incurred, which default or defaults, if not cured,
rescinded or annulled within ten calendar days after the date on
which written notice of such failure, requiring the Company to
remedy the same, shall have been given to the Company by the
Trustee, or to the Company and a Responsible Officer of the Trustee
by the holders of at least 25% in aggregate Principal Amount of the
Notes at the time outstanding determined in accordance with
Section 8.04:
(i) is caused by the
failure to pay the stated principal amount on such indebtedness
prior to the expiration of the grace period provided in such
indebtedness; or
(ii) results in the
acceleration of such indebtedness prior to its maturity;
or
(g) failure by the
Company or any Significant Subsidiary to pay any final judgment or
judgments for the payment of money aggregating in excess of
$20.0 million (net of any amounts covered by a reputable and
creditworthy insurance company (as determined by the
Company’s Board of Directors) that does not dispute such
coverage), which judgments are not paid, discharged or stayed for
any period of 60 consecutive calendar days; or
(h) the Guarantee of the
Issuer ceases to be in full force and effect (except as
contemplated by the terms of this Indenture) or is declared null
and void in a judicial proceeding or the Issuer denies or
disaffirms its obligations under the Indenture or the Parent
Guarantee;
(i) any Subsidiary
Guarantee of a Significant Subsidiary ceases to be in full force
and effect (except as contemplated by the terms of this Indenture)
or is declared null and void in a judicial proceeding or any
Subsidiary Guarantor that is a Significant Subsidiary denies or
disaffirms such Subsidiary Guarantor’s obligations under this
Indenture or its Subsidiary Guarantee;
(j) commencement by the
Company, the Issuer or any Significant Subsidiary of a voluntary
case or other proceeding seeking liquidation, reorganization or
other relief with respect to the Company, the Issuer or any
Significant Subsidiary or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect or
seeking the appointment of a trustee, receiver, liquidator,
custodian or other similar official of the Company, the Issuer or
any Significant Subsidiary or any substantial part of the property
of the Company, the Issuer or any Significant Subsidiary, or
consent by the Company, the Issuer or any Significant Subsidiary to
any such relief or to the
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