The Goodyear Tire & Rubber
Company
10.500% Senior Notes due
2016
Wells Fargo Bank, N.A.
Trustee
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TIA
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Indenture
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Section
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Section
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7.10
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7.10
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N.A.
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N.A.
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7.08;
7.10
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N.A.
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7.11
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7.11
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N.A.
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2.05
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11.03
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11.03
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7.06
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7.06
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7.06
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11.02
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7.06
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4.02; 4.13;
11.02
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N.A.
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11.04
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11.04
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N.A.
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N.A.
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11.05
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4.14
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7.01
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7.05;
11.02
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7.01
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7.01
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6.11
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11.06
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6.05
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6.04
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N.A.
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6.07
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6.08
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6.09
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2.04
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11.01
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N.A. means Not
Applicable.
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Note:
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This
Cross-Reference Table shall not, for any purpose, be deemed to be
part of this Indenture.
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Page
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Definitions and Incorporation by
Reference
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SECTION 1.01.
Definitions
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1
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SECTION 1.02.
Other Definitions
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32
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SECTION 1.03.
Incorporation by Reference of Trust Indenture Act
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33
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SECTION 1.04.
Rules of Construction
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33
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SECTION 2.01.
Form and Dating
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34
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SECTION 2.02.
Execution and Authentication
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34
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SECTION 2.03.
Registrar and Paying Agent
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35
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SECTION 2.04.
Paying Agent To Hold Money in Trust
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36
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SECTION 2.05.
Lists of Holders of Securities
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36
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SECTION 2.06.
Transfer and Exchange
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36
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SECTION 2.07.
Replacement Securities
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37
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SECTION 2.08.
Outstanding Securities
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38
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SECTION 2.09.
Temporary Securities
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38
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SECTION 2.10.
Cancellation
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38
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SECTION 2.11.
Defaulted Interest
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38
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SECTION 2.12.
CUSIP Numbers and ISINs
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38
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SECTION 2.13.
Issuance of Additional Securities
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39
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SECTION 3.01.
Notices to Trustee
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39
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SECTION 3.02.
Selection of Securities to Be Redeemed
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40
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SECTION 3.03.
Notice of Redemption
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40
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SECTION 3.04.
Effect of Notice of Redemption
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41
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SECTION 3.05.
Deposit of Redemption Price
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41
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SECTION 3.06.
Securities Redeemed in Part
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41
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SECTION 4.01.
Payment of Securities
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41
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SECTION 4.02.
SEC Reports
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41
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Page
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SECTION 4.03.
Limitation on Indebtedness
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42
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SECTION 4.04.
Limitation on Restricted Payments
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45
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SECTION 4.05.
Limitation on Restrictions on Distributions from Restricted
Subsidiaries
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49
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SECTION 4.06.
Limitation on Sales of Assets and Subsidiary Stock
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50
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SECTION 4.07.
Limitation on Transactions with Affiliates
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54
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SECTION 4.08.
Change of Control
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56
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SECTION 4.09.
Limitation on Liens
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57
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SECTION 4.10.
Limitation on Sale/Leaseback Transactions
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57
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SECTION 4.11.
Future Subsidiary Guarantors
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58
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SECTION 4.12.
Suspension of Certain Covenants
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58
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SECTION 4.13.
Compliance Certificate
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59
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SECTION 4.14.
Further Instruments and Acts
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60
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SECTION 5.01.
When Company May Merge or Transfer Assets
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60
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SECTION 6.01.
Events of Default
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61
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SECTION 6.02.
Acceleration
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63
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SECTION 6.03.
Other Remedies
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64
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SECTION 6.04.
Waiver of Past Defaults
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64
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SECTION 6.05.
Control by Majority
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64
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SECTION 6.06.
Limitation on Suits
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65
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SECTION 6.07.
Rights of Holders to Receive Payment
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65
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SECTION 6.08.
Collection Suit by Trustee
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65
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SECTION 6.09.
Trustee May File Proofs of Claim
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65
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66
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SECTION 6.11.
Undertaking for Costs
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66
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SECTION 6.12.
Waiver of Stay or Extension Laws
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66
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SECTION 7.01.
Duties of Trustee
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66
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SECTION 7.02.
Rights of Trustee
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67
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SECTION 7.03.
Individual Rights of Trustee
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68
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SECTION 7.04.
Trustee’s Disclaimer
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69
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SECTION 7.05.
Notice of Defaults
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69
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SECTION 7.06.
Reports by Trustee to Holders
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69
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ii
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Page
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SECTION 7.07.
Compensation and Indemnity
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69
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SECTION 7.08.
Replacement of Trustee
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70
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SECTION 7.09.
Successor Trustee by Merger
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71
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SECTION 7.10.
Eligibility; Disqualification
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71
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SECTION 7.11.
Preferential Collection of Claims Against Company
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71
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Discharge of Indenture;
Defeasance
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SECTION 8.01.
Discharge of Liability on Securities; Defeasance
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71
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SECTION 8.02.
Conditions to Defeasance
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72
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SECTION 8.03.
Application of Trust Money
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73
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SECTION 8.04.
Repayment to Company
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74
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SECTION 8.05.
Indemnity for Government Obligations
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74
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SECTION 8.06.
Reinstatement
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74
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SECTION 9.01.
Without Consent of Holders
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74
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SECTION 9.02.
With Consent of Holders
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75
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SECTION 9.03.
Compliance with Trust Indenture Act
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76
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SECTION 9.04.
Revocation and Effect of Consents and Waivers
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76
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SECTION 9.05.
Notation on or Exchange of Securities
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77
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SECTION 9.06.
Trustee To Sign Amendments
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77
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SECTION 9.07.
Payment for Consent
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77
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SECTION 10.01.
Guarantees
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77
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SECTION 10.02.
Limitation on Liability
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79
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SECTION 10.03.
Successors and Assigns
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79
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79
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SECTION 10.05.
Modification
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79
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SECTION 10.06.
Release of Subsidiary Guarantor
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79
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SECTION 10.07.
Contribution
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80
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SECTION 11.01.
Trust Indenture Act Controls
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80
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81
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SECTION 11.03.
Communication by Holders with Other Holders
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81
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iii
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Page
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SECTION 11.04.
Certificate and Opinion as to Conditions Precedent
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81
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SECTION 11.05.
Statements Required in Certificate or Opinion
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82
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SECTION 11.06.
When Securities Disregarded
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82
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SECTION 11.07.
Rules by Trustee, Paying Agent and Registrar
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82
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SECTION 11.08.
Legal Holidays
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82
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SECTION 11.09.
Governing Law
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83
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SECTION 11.10.
No Recourse Against Others
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83
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SECTION 11.11.
Successors
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83
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SECTION 11.12.
Multiple Originals
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83
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SECTION 11.13.
Table of Contents; Headings
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83
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Appendix A
Provisions Relating to Securities
Exhibit 1
– Form of Security
Exhibit 2
– Form of Supplemental Indenture
iv
INDENTURE dated as
of May 11, 2009 among The Goodyear Tire & Rubber Company,
an Ohio corporation (the “Company”), the Subsidiary
Guarantors listed on the signature pages hereto and Wells Fargo
Bank, N.A., a national banking association (the
“Trustee”).
Each
party agrees as follows for the benefit of the other parties and
for the equal and ratable benefit of the Holders of the
Securities:
Definitions and Incorporation by
Reference
SECTION
1.01. Definitions.
“Additional
Assets” means:
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(1)
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any
property or assets (other than Indebtedness and Capital Stock) to
be used by the Company or a Restricted Subsidiary;
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(2)
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the
Capital Stock of a Person that becomes a Restricted Subsidiary as a
result of the acquisition of such Capital Stock by the Company or
another Restricted Subsidiary; or
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(3)
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Capital Stock constituting a
minority interest in any Person that at such time is a Restricted
Subsidiary;
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provided , however , that any such Restricted
Subsidiary described in clauses (2) or (3) above is
primarily engaged in a Permitted Business.
“Additional
Securities” means Securities issued under this Indenture
after the Closing Date and in compliance with Sections 2.13,
4.03 and 4.09, it being understood that any Securities issued in
exchange for or replacement of any Security issued on the Closing
Date shall not be an Additional Security.
“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 Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise; and
the terms “controlling” and “controlled”
have meanings correlative to the foregoing. For purposes of
Section 4.06 and Section 4.07 only,
“Affiliate” shall also mean any beneficial owner of
shares representing 10% or more of the total voting power of the
Voting Stock (on a fully diluted basis) of the Company or of rights
or warrants to purchase such Voting Stock (whether or not currently
exercisable) and any Person who would be an Affiliate of any such
beneficial owner pursuant to the first sentence hereof.
2
“Asset
Disposition” means any sale, lease, transfer or other
disposition (or series of sales, leases, transfers or dispositions
that are part of a common plan) by the Company or any Restricted
Subsidiary, including any disposition by means of a merger,
consolidation, or similar transaction (each referred to for the
purposes of this definition as a “disposition”),
of:
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(1)
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any
shares of Capital Stock of a Restricted Subsidiary (other than
directors’ qualifying shares or shares required by applicable
law to be held by a Person other than the Company or a Restricted
Subsidiary),
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(2)
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all
or substantially all the assets of any division or line of business
of the Company or any Restricted Subsidiary, or
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(3)
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any
other assets of the Company or any Restricted Subsidiary outside of
the ordinary course of business of the Company or such Restricted
Subsidiary,
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other than, in the
case of clauses (1), (2) and (3) above,
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(A)
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a
disposition by a Restricted Subsidiary to the Company or by the
Company or a Restricted Subsidiary to a Restricted
Subsidiary;
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(B)
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for
purposes of Section 4.06 only, a disposition subject to
Section 4.04;
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(C)
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a
disposition of assets with a Fair Market Value of less than
$10,000,000;
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(D)
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a
sale of accounts receivable and related assets of the type
specified in the definition of “Qualified Receivables
Transaction” to a Receivables Entity;
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(E)
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a
transfer of accounts receivable and related assets of the type
specified in the definition of “Qualified Receivables
Transaction” (or a fractional undivided interest therein) by
a Receivables Entity in a Qualified Receivables
Transaction;
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(F)
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a
disposition of all or substantially all the Company’s assets
(as determined on a Consolidated basis) in accordance with
Section 5.01; and
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(G)
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any
Specified Asset Sale.
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“Attributable
Debt” means, with respect to any Sale/Leaseback Transaction
that does not result in a Capitalized Lease Obligation, the present
value (computed in accordance with GAAP) of the total obligations
of the lessee for rental payments during the remaining term of the
lease included in such Sale/Leaseback Transaction (including any
period for which such lease has been extended). In the
case
3
of any lease
which is terminable by the lessee upon payment of a penalty, the
Attributable Debt shall be the lesser of:
(i) the
Attributable Debt determined assuming termination upon the first
date such lease may be terminated (in which case the Attributable
Debt shall also include the amount of the penalty, but no rent
shall be considered as required to be paid under such lease
subsequent to the first date upon which it may be so terminated)
and
(ii) the
Attributable Debt determined assuming no such
termination.
“Average
Life” means, as of the date of determination, with respect to
any Indebtedness or Preferred Stock, the quotient obtained by
dividing:
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(1)
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the
sum of the products of the number of years from the date of
determination to the dates of each successive scheduled principal
payment of such Indebtedness or scheduled redemption or similar
payment with respect to such Preferred Stock multiplied by the
amount of such payment by
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(2)
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the
sum of all such payments.
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“Bank
Indebtedness” means all obligations under the U.S. Bank
Indebtedness and European Bank Indebtedness.
“Board
of Directors” means the board of directors of the Company or
any committee thereof duly authorized to act on behalf of the board
of directors of the Company.
“Business
Day” means each day which is not a Legal Holiday.
“Capital
Stock” of any Person means any and all shares, interests,
rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) equity of such
Person, including any Preferred Stock, but excluding any debt
securities convertible into such equity.
“Capitalized
Lease Obligations” means an obligation that is required to be
classified and accounted for as a capitalized lease for financial
reporting purposes in accordance with GAAP, and the amount of
Indebtedness represented by such obligation shall be the
capitalized amount of such obligation determined in accordance with
GAAP.
“Change
of Control” means the occurrence of any of the following
events:
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(1)
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any
“person” (as such term is used in Sections 13(d) and
14(d) of the Exchange Act) becomes the beneficial owner (as defined
in Rules 13d-3 and 13d-5 under the Exchange Act, except that
for purposes of this clause (1) such person shall be deemed to
have “beneficial ownership” of all shares that any such
person has the right to acquire, whether such right is exercisable
immediately or only after the passage of time), directly
or
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4
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indirectly, of
more than 50% of the total voting power of the Voting Stock of the
Company;
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(2)
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during any period of two consecutive
years, individuals who at the beginning of such period constituted
the board of directors of the Company (together with any new
directors whose election by such board of directors of the Company
or whose nomination for election by the shareholders of the Company
was approved by a vote of a majority of the directors of the
Company then still in office who were either directors at the
beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to
constitute a majority of the board of directors of the Company then
in office;
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(3)
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the
adoption of a plan relating to the liquidation or dissolution of
the Company; or
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(4)
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the
merger or consolidation of the Company with or into another Person
or the merger of another Person with or into the Company, or the
sale of all or substantially all the assets of the Company (as
determined on a Consolidated basis) to another Person, and, in the
case of any such merger or consolidation, the securities of the
Company that are outstanding immediately prior to such transaction
and which represent 100% of the aggregate voting power of the
Voting Stock of the Company are changed into or exchanged for cash,
securities or property, unless pursuant to such transaction such
securities are changed into or exchanged for, in addition to any
other consideration, securities of the surviving Person or
transferee that represent immediately after such transaction, at
least a majority of the aggregate voting power of the Voting Stock
of the surviving Person or transferee.
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“Closing
Date” means May 11, 2009.
“Code”
means the Internal Revenue Code of 1986, as amended.
“Company”
means the party named as such in this Indenture until a successor
replaces it and, thereafter, means the successor and, for purposes
of any provision contained herein and required by the TIA, each
other obligor on the indenture securities.
“Consolidated
Coverage Ratio” as of any date of determination means the
ratio of:
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(1)
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the
aggregate amount of EBITDA for the period of the most recent four
consecutive fiscal quarters ending prior to the date of such
determination for which financial statements have been filed with
the SEC to
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(2)
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Consolidated Interest Expense for
such four fiscal quarters;
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5
provided , however , that:
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(A)
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if
the Company or any Restricted Subsidiary has Incurred any
Indebtedness since the beginning of such period that remains
outstanding on such date of determination or if the transaction
giving rise to the need to calculate the Consolidated Coverage
Ratio is an Incurrence of Indebtedness, EBITDA and Consolidated
Interest Expense for such period shall be calculated after giving
effect on a pro forma basis to such Indebtedness as if such
Indebtedness had been Incurred on the first day of such period and
the discharge of any other Indebtedness repaid, repurchased,
defeased or otherwise discharged with the proceeds of such new
Indebtedness as if such discharge had occurred on the first day of
such period;
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(B)
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if
the Company or any Restricted Subsidiary has repaid, repurchased,
defeased or otherwise discharged any Indebtedness since the
beginning of such period or if any Indebtedness is to be repaid,
repurchased, defeased or otherwise discharged (in each case other
than Indebtedness Incurred under any revolving credit facility
unless such Indebtedness has been permanently repaid and has not
been replaced) on the date of the transaction giving rise to the
need to calculate the Consolidated Coverage Ratio, EBITDA and
Consolidated Interest Expense for such period shall be calculated
on a pro forma basis as if such discharge had occurred on the first
day of such period and as if the Company or such Restricted
Subsidiary had not earned the interest income actually earned
during such period in respect of cash or Temporary Cash Investments
used to repay, repurchase, defease or otherwise discharge such
Indebtedness;
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(C)
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if
since the beginning of such period the Company or any Restricted
Subsidiary shall have made any Asset Disposition, the EBITDA for
such period shall be reduced by an amount equal to the EBITDA (if
positive) directly attributable to the assets that are the subject
of such Asset Disposition for such period or increased by an amount
equal to the EBITDA (if negative) directly attributable thereto for
such period and Consolidated Interest Expense for such period shall
be reduced by an amount equal to the Consolidated Interest Expense
directly attributable to any Indebtedness of the Company or any
Restricted Subsidiary repaid, repurchased, defeased or otherwise
discharged with respect to the Company and its
Restricted
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6
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Subsidiaries in
connection with such Asset Disposition for such period (or, if the
Capital Stock of any Restricted Subsidiary is sold, the
Consolidated Interest Expense for such period directly attributable
to the Indebtedness of such Restricted Subsidiary to the extent the
Company and its continuing Restricted Subsidiaries are no longer
liable for such Indebtedness after such sale);
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(D)
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if
since the beginning of such period the Company or any Restricted
Subsidiary (by merger or otherwise) shall have made an Investment
in any Restricted Subsidiary (or any Person that becomes a
Restricted Subsidiary) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction
causing a calculation to be made hereunder, which constitutes all
or substantially all of an operating unit, division or line of a
business, EBITDA and Consolidated Interest Expense for such period
shall be calculated after giving pro forma effect thereto
(including the Incurrence of any Indebtedness) as if such
Investment or acquisition occurred on the first day of such period;
and
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(E)
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if
since the beginning of such period any Person that subsequently
became a Restricted Subsidiary or was merged with or into the
Company or any Restricted Subsidiary since the beginning of such
period shall have made any Asset Disposition or any Investment or
acquisition of assets that would have required an adjustment
pursuant to clause (C) or (D) above if made by the
Company or a Restricted Subsidiary during such period, EBITDA and
Consolidated Interest Expense for such period shall be calculated
after giving pro forma effect thereto as if such Asset Disposition,
Investment or acquisition of assets occurred on the first day of
such period.
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For purposes of
this definition, whenever pro forma effect is to be given to an
acquisition of assets, Asset Disposition or other Investment, the
amount of income, EBITDA or earnings relating thereto and the
amount of Consolidated Interest Expense associated with any
Indebtedness Incurred in connection therewith, the pro forma
calculations shall be determined in good faith by a responsible
Financial Officer of the Company and shall comply with the
requirements of Rule 11-02 of Regulation S-X, as it may
be amended or replaced from time to time, promulgated by the
SEC.
If any
Indebtedness bears a floating rate of interest and is being given
pro forma effect, the interest expense on such Indebtedness shall
be calculated as if the rate in effect on the date of determination
had been the applicable rate for the entire period (taking
into
7
account any
Interest Rate Agreement applicable to such Indebtedness if such
Interest Rate Agreement has a remaining term as at the date of
determination in excess of 12 months). If any Indebtedness is
Incurred or repaid under a revolving credit facility and is being
given pro forma effect, the interest on such Indebtedness shall be
calculated based on the average daily balance of such Indebtedness
for the four fiscal quarters subject to the pro forma
calculation.
“Consolidated
Interest Expense” means, for any period, the total interest
expense of the Company and its Consolidated Restricted
Subsidiaries, plus, to the extent Incurred by the Company and its
Consolidated Restricted Subsidiaries in such period but not
included in such interest expense, without duplication:
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(1)
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interest expense attributable to
Capitalized Lease Obligations and the interest expense attributable
to leases constituting part of a Sale/Leaseback Transaction that
does not result in a Capitalized Lease Obligation;
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(2)
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amortization of debt discount and
debt issuance costs;
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(3)
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capitalized interest;
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(4)
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noncash interest expense;
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(5)
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commissions, discounts and other
fees and charges attributable to letters of credit and
bankers’ acceptance financing;
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(6)
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interest accruing on any
Indebtedness of any other Person to the extent such Indebtedness is
Guaranteed by (or secured by the assets of) the Company or any
Restricted Subsidiary and such Indebtedness is in default under its
terms or any payment is actually made in respect of such
Guarantee;
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(7)
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net
payments made pursuant to Hedging Obligations (including
amortization of fees);
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(8)
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dividends paid in cash or
Disqualified Stock in respect of (A) all Preferred Stock of
Restricted Subsidiaries and (B) all Disqualified Stock of the
Company, in each case held by Persons other than the Company or a
Restricted Subsidiary;
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(9)
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interest Incurred in connection with
investments in discontinued operations; and
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(10)
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the
cash contributions to any employee stock ownership plan or similar
trust to the extent such contributions are used by such plan or
trust to pay interest or fees to any Person (other than the
Company) in connection with Indebtedness Incurred by such plan or
trust;
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8
and less, to
the extent included in such total interest expense, (A) any
breakage costs of Hedging Obligations terminated in connection with
the offering of the Securities on the Closing Date and the
application of the net proceeds therefrom and (B) the
amortization during such period of capitalized financing costs;
provided , however , that for any financing
consummated after the Closing Date, the aggregate amount of
amortization relating to any such capitalized financing costs
deducted in calculating Consolidated Interest Expense shall not
exceed 5% of the aggregate amount of the financing giving rise to
such capitalized financing costs.
“Consolidated
Net Income” means, for any period, the net income of the
Company and its Consolidated Subsidiaries for such period;
provided , however , that there shall not be included
in such Consolidated Net Income:
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(1)
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any
net income of any Person (other than the Company) if such Person is
not a Restricted Subsidiary, except that:
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(A)
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subject to the limitations contained
in clause (4) below, the Company’s equity in the net
income of any such Person for such period shall be included in such
Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a
Restricted Subsidiary as a dividend or other distribution (subject,
in the case of a dividend or other distribution made to a
Restricted Subsidiary, to the limitations contained in clause
(3) below) and
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(B)
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the
Company’s equity in a net loss of any such Person for such
period shall be included in determining such Consolidated Net
Income to the extent such loss has been funded with cash from the
Company or a Restricted Subsidiary;
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(2)
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any
net income (or loss) of any Person acquired by the Company or a
Subsidiary of the Company in a pooling of interests transaction for
any period prior to the date of such acquisition;
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(3)
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any
net income of any Restricted Subsidiary if such Restricted
Subsidiary is subject to restrictions on the payment of dividends
or the making of distributions by such Restricted Subsidiary,
directly or indirectly, to the Company (but, in the case of any
Foreign Subsidiary, only to the extent cash equal to such net
income (or a portion thereof) for such period is not readily
procurable by the Company from such Foreign Subsidiary (with the
amount of cash readily procurable from such Foreign Subsidiary
being determined in good faith by a Financial Officer of the
Company) pursuant to intercompany loans, repurchases of Capital
Stock or otherwise), except that:
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(A)
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subject to the limitations contained
in clause (4) below, the Company’s equity in the net
income of any such Restricted
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9
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Subsidiary for such period shall be
included in such Consolidated Net Income up to the aggregate amount
of cash actually distributed by such Restricted Subsidiary during
such period to the Company or another Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend
or other distribution made to another Restricted Subsidiary, to the
limitation contained in this clause) and
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(B)
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the
net loss of any such Restricted Subsidiary for such period shall
not be excluded in determining such Consolidated Net
Income;
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(4)
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any
gain (or loss) realized upon the sale or other disposition of any
asset of the Company or its Consolidated Subsidiaries (including
pursuant to any Sale/Leaseback Transaction) that is not sold or
otherwise disposed of in the ordinary course of business and any
gain (or loss) realized upon the sale or other disposition of any
Capital Stock of any Person;
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(5)
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any
extraordinary gain or loss; and
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(6)
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the
cumulative effect of a change in accounting principles.
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Notwithstanding
the foregoing, for the purpose of Section 4.04 only, there
shall be excluded from Consolidated Net Income any dividends,
repayments of loans or advances or other transfers of assets from
Unrestricted Subsidiaries to the Company or a Restricted Subsidiary
to the extent such dividends, repayments or transfers increase the
amount of Restricted Payments permitted under
Section 4.04(a)(3)(iv).
“Consolidation”
means, unless the context otherwise requires, the consolidation of
(1) in the case of the Company, the accounts of each of the
Restricted Subsidiaries with those of the Company and (2) in
the case of a Restricted Subsidiary, the accounts of each
Subsidiary of such Restricted Subsidiary that is a Restricted
Subsidiary with those of such Restricted Subsidiary, in each case
in accordance with GAAP consistently applied; provided ,
however , that “Consolidation” will not include
consolidation of the accounts of any Unrestricted Subsidiary, but
the interest of the Company or any Restricted Subsidiary in an
Unrestricted Subsidiary will be accounted for as an investment. The
term “Consolidated” has a correlative
meaning.
“Credit
Agreements” means the U.S. Credit Agreements and the European
Credit Agreement.
“Currency
Agreement” means with respect to any Person any foreign
exchange contract, currency swap agreements or other similar
agreement or arrangement to which such Person is a party or of
which it is a beneficiary.
“Default”
means any event which is, or after notice or passage of time or
both would be, an Event of Default.
10
“Designated
Noncash Consideration” means noncash consideration received
by the Company or one of its Restricted Subsidiaries in connection
with an Asset Sale that is designated by the Company as Designated
Noncash Consideration, less the amount of cash or cash equivalents
received in connection with a subsequent sale of such Designated
Noncash Consideration, which cash and cash equivalents shall be
considered Net Available Cash received as of such date and shall be
applied pursuant to Section 4.06.
“Disqualified
Stock” means, with respect to any Person, any Capital Stock
which by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable or exercisable) or
upon the happening of any event:
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(1)
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matures or is mandatorily redeemable
pursuant to a sinking fund obligation or otherwise;
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(2)
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is
convertible or exchangeable for Indebtedness or Disqualified Stock
(excluding Capital Stock convertible or exchangeable solely at the
option of the Company or a Restricted Subsidiary; provided ,
however , that any such conversion or exchange shall be
deemed an Incurrence of Indebtedness or Disqualified Stock, as
applicable); or
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(3)
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is
redeemable at the option of the holder thereof, in whole or in
part;
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in the case of
each of clauses (1), (2) and (3), on or prior to 180 days
after the Stated Maturity of the Securities; provided ,
however , that any Capital Stock that would not constitute
Disqualified Stock but for provisions thereof giving holders
thereof the right to require such Person to repurchase or redeem
such Capital Stock upon the occurrence of an “asset
sale” or “change of control” occurring prior to
the first anniversary of the Stated Maturity of the Securities
shall not constitute Disqualified Stock if the “asset
sale” or “change of control” provisions
applicable to such Capital Stock are not more favorable in any
material respect to the holders of such Capital Stock than the
provisions of Section 4.06 and Section 4.08; provided
further , however , that if such Capital Stock is issued
to any employee or to any plan for the benefit of employees of the
Company or its Subsidiaries or by any such plan to such employees,
such Capital Stock shall not constitute Disqualified Stock solely
because it may be required to be repurchased by the Company in
order to satisfy applicable statutory or regulatory obligations or
as a result of such employee’s termination, death or
disability.
The amount of
any Disqualified Stock that does not have a fixed redemption,
repayment or repurchase price will be calculated in accordance with
the terms of such Disqualified Stock as if such Disqualified Stock
were redeemed, repaid or repurchased on any date on which the
amount of such Disqualified Stock is to be determined pursuant to
this Indenture; provided , however , that if such
Disqualified Stock could not be required to be redeemed, repaid or
repurchased at the time of such determination, the redemption,
repayment or repurchase price will be the book value of such
Disqualified Stock as reflected in the most recent financial
statements of such Person.
11
“EBITDA”
for any period means the Consolidated Net Income for such period,
plus, without duplication, the following to the extent deducted in
calculating such Consolidated Net Income:
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(1)
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income tax expense of the Company
and its Consolidated Restricted Subsidiaries;
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(2)
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Consolidated Interest
Expense;
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(3)
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depreciation expense of the Company
and its Consolidated Restricted Subsidiaries;
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(4)
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amortization expense of the Company
and its Consolidated Restricted Subsidiaries (excluding
amortization expense attributable to a prepaid cash item that was
paid in a prior period); and
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(5)
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all
other noncash charges of the Company and its Consolidated
Restricted Subsidiaries (excluding any such noncash charge to the
extent it represents an accrual of or reserve for cash expenditures
in any future period) less all noncash items of income of the
Company and its Restricted Subsidiary in each case for such period
(other than normal accruals in the ordinary course of
business).
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Notwithstanding
the foregoing, the provision for taxes based on the income or
profits of, and the depreciation and amortization and noncash
charges of, a Restricted Subsidiary of the Company shall be added
to Consolidated Net Income to compute EBITDA only to the extent
(and in the same proportion) that the net income of such Restricted
Subsidiary was included in calculating Consolidated Net Income and
only if (A) a corresponding amount would be permitted at the
date of determination to be dividended to the Company by such
Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and
governmental regulations applicable to such Restricted Subsidiary
or its shareholders or (B) in the case of any Foreign
Subsidiary, a corresponding amount of cash is readily procurable by
the Company from such Foreign Subsidiary (as determined in good
faith by a Financial Officer of the Company) pursuant to
intercompany loans, repurchases of Capital Stock or otherwise,
provided that to the extent cash of such Foreign Subsidiary
provided the basis for including the net income of such Foreign
Subsidiary in Consolidated Net Income pursuant to clause
(3) of the definition of “Consolidated Net
Income”, such cash shall not be taken into account for the
purposes of determining readily procurable cash under this clause
(B).
“Equity
Offering” means a public or private offering of Capital Stock
(other than Disqualified Stock) of the Company.
“Euro
Equivalent” means with respect to any monetary amount in a
currency other than euros, at any time of determination thereof,
the amount of euros obtained by converting such foreign currency
involved in such computation into euros at the spot rate for the
purchase of euros with the applicable foreign currency as
published
12
in The Wall
Street Journal in the “Exchange Rates” column under
the heading “Currency Trading” on the date two Business
Days prior to such determination. Except as described in
Section 4.03, whenever it is necessary to determine whether
the Company has complied with any covenant in this Indenture or a
Default has occurred and an amount is expressed in a currency other
than euros, such amount will be treated as the Euro Equivalent
determined as of the date such amount is initially determined in
such currency.
“European
Bank Indebtedness” means any and all amounts payable under or
in respect of the European Credit Agreement and any Refinancing
Indebtedness with respect thereto or with respect to such
Refinancing Indebtedness, as amended from time to time, including
principal, premium (if any), interest (including interest accruing
on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company whether or not a claim for
post-filing interest is allowed in such proceedings), fees,
charges, expenses, reimbursement obligations and all other amounts
payable thereunder or in respect thereof.
“European
Credit Agreement” means the Amended and Restated Revolving
Credit Agreement, dated as of April 20, 2007 (as amended on
July 18, 2008 and August 22, 2008), among the Company,
Goodyear Dunlop Tires Europe B.V., Goodyear Dunlop Tires Germany
GmbH, Goodyear GmbH & Co. KG (now merged into Goodyear Dunlop
Tires Germany GmbH), Dunlop GmbH & Co. KG (now merged into
Goodyear Dunlop Tires Germany GmbH) and Goodyear Luxembourg Tires
S.A., the lenders party thereto, J.P. Morgan Europe Limited, as
Administrative Agent, JPMorgan Chase Bank, N.A., as Collateral
Agent, and the Mandated Lead Arrangers and Joint Bookrunners
identified therein, as amended, restated, supplemented, waived,
replaced (whether or not upon termination, and whether with the
original lenders or otherwise), refinanced, restructured or
otherwise modified from time to time (except to the extent that any
such amendment, restatement, supplement, waiver, replacement,
refinancing, restructuring or other modification thereto would be
prohibited by the terms of the Indenture, unless otherwise agreed
to by the Holders of at least a majority in aggregate principal
amount of Securities at the time outstanding).
“Exchange
Act” means the Securities Exchange Act of 1934, as
amended.
“Fair
Market Value” means, with respect to any asset or property,
the price which could be negotiated in an arm’s-length, free
market transaction, for cash, between a willing seller and a
willing and able buyer, neither of whom is under undue pressure or
compulsion to complete the transaction as such price is, unless
specified otherwise in this Indenture, determined in good faith by
a Financial Officer of the Company or by the Board of Directors.
Fair Market Value (other than of any asset with a public trading
market) of any asset or property (or group of assets or property
subject to an event giving rise to a requirement under this
Indenture that “Fair Market Value” be determined) in
excess of $25,000,000 shall be determined by the Board of Directors
or a duly authorized committee thereof.
13
“Financial
Officer” means the Chief Financial Officer, the Treasurer or
the Chief Accounting Officer of the Company.
“Foreign
Subsidiary” means any Restricted Subsidiary of the Company
that is not organized under the laws of the United States of
America or any State thereof or the District of Columbia, other
than Goodyear Canada.
“GAAP”
means generally accepted accounting principles in the United States
of America as in effect as of the Closing Date set forth
in:
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(1)
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the
opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants,
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(2)
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statements and pronouncements of the
Financial Accounting Standards Board,
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(3)
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such other statements by such other
entities as approved by a significant segment of the accounting
profession, and
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(4)
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the
rules and regulations of the SEC governing the inclusion of
financial statements (including pro forma financial statements) in
periodic reports required to be filed pursuant to Section 13
of the Exchange Act, including opinions and pronouncements in staff
accounting bulletins and similar written statements from the
accounting staff of the SEC.
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All ratios and
computations based on GAAP contained in this Indenture shall be
computed in conformity with GAAP.
“Goodyear
Canada” means Goodyear Canada Inc., an Ontario corporation,
and its successors and permitted assigns.
“Guarantee”
means any obligation, contingent or otherwise, of any Person
directly or indirectly guaranteeing any Indebtedness of any other
Person and any obligation, direct or indirect, contingent or
otherwise, of such Person:
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(1)
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to
purchase or pay (or advance or supply funds for the purchase or
payment of) such Indebtedness of such other Person (whether arising
by virtue of partnership arrangements, or by agreement to
keep-well, to purchase assets, goods, securities or services, to
take-or-pay, or to maintain financial statement conditions or
otherwise) or
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(2)
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entered into for purposes of
assuring in any other manner the obligee of such Indebtedness of
the payment thereof or to protect such obligee against loss in
respect thereof (in whole or in part);
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provided , however , that the term
“Guarantee” shall not include endorsements for
collection or deposit in the ordinary course of business. The term
“Guarantee” used as a
14
verb has a
corresponding meaning. The term “Guarantor” shall mean
any Person Guaranteeing any obligation.
“Guaranteed
Obligations” means the principal and interest on the
Securities when due, whether at Stated Maturity, by acceleration or
otherwise, and all other obligations, monetary or otherwise, of the
Company under this Indenture and the Securities (including expenses
and indemnification).
“Hedging
Obligations” of any Person means the obligations of such
Person pursuant to any Interest Rate Agreement, Currency Agreement
or raw materials hedge agreement.
“Holder”
means the Person in whose name a Security is registered on the
Registrar’s books.
“Incur”
means issue, assume, Guarantee, incur or otherwise become liable
for; provided , however , that any Indebtedness or
Capital Stock of a Person existing at the time such Person becomes
a Subsidiary (whether by merger, consolidation, acquisition or
otherwise) shall be deemed to be Incurred by such Person at the
time it becomes a Subsidiary. The term “Incurrence”
when used as a noun shall have a correlative meaning. The accretion
of principal of a non-interest bearing or other discount security
shall not be deemed the Incurrence of Indebtedness.
“Indebtedness”
means, with respect to any Person on any date of determination,
without duplication:
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(1)
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the
principal of and premium (if any) in respect of indebtedness of
such Person for borrowed money;
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(2)
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the
principal of and premium (if any) in respect of obligations of such
Person evidenced by bonds, debentures, notes or other similar
instruments;
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(3)
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all
obligations of such Person for the reimbursement of any obligor on
any letter of credit, bank guarantee, bankers’ acceptance or
similar credit transaction (other than obligations with respect to
letters of credit, bank guarantees, bankers’ acceptances or
similar credit transactions securing obligations (other than
obligations described in clauses (1), (2) and (5)) entered
into in the ordinary course of business of such Person to the
extent such letters of credit, bank guarantees, bankers’
acceptances or similar credit transactions are not drawn upon or,
if and to the extent drawn upon, such drawing is reimbursed no
later than the tenth Business Day following payment on the letter
of credit, bank guarantee, bankers’ acceptance or similar
credit transaction);
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(4)
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all
obligations of such Person to pay the deferred and unpaid purchase
price of property or services (except Trade Payables), which
purchase price is due more than six months after the date of
placing such property in
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15
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service or
taking delivery and title thereto or the completion of such
services;
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(5)
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all
Capitalized Lease Obligations and all Attributable Debt of such
Person;
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(6)
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the
amount of all obligations of such Person with respect to the
redemption, repayment or other repurchase of any Disqualified Stock
or, with respect to any Subsidiary of such Person, any Preferred
Stock (but excluding, in each case, any accrued and unpaid
dividends);
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(7)
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all
Indebtedness of other Persons secured by a Lien on any asset of
such Person, whether or not such Indebtedness is assumed by such
Person; provided , however , that the amount of
Indebtedness of such Person shall be the lesser of:
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(A)
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the
Fair Market Value of such asset at such date of determination
and
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(B)
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the
amount of such Indebtedness of such other Persons;
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(8)
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Hedging Obligations of such Person;
and
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(9)
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all
obligations of the type referred to in clauses (1) through
(8) of other Persons for the payment of which such Person is
responsible or liable, directly or indirectly, as obligor,
guarantor or otherwise, including by means of any
Guarantee.
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Notwithstanding
the foregoing, in connection with the purchase by the Company or
any Restricted Subsidiary of any business, the term
“Indebtedness” shall exclude post-closing payment
adjustments to which the seller may become entitled to the extent
such payment is determined by a final closing balance sheet or such
payment depends on the performance of such business after the
closing; provided , however , that, at the time of
closing, the amount of any such payment is not determinable and, to
the extent such payment thereafter becomes fixed and determined,
the amount is paid within 30 days thereafter.
The amount of
Indebtedness of any Person at any date shall be the outstanding
balance at such date of all unconditional obligations as described
above; provided , however , that in the case of
Indebtedness sold at a discount, the amount of such Indebtedness at
any time will be the accreted value thereof at such
time.
“Indenture”
means this Indenture as amended or supplemented from time to
time.
“Interest
Rate Agreement” means, with respect to any Person, any
interest rate protection agreement, interest rate future agreement,
interest rate option agreement, interest rate swap agreement,
interest rate cap agreement, interest rate collar
agreement,
16
interest rate
hedge agreement or other similar agreement or arrangement to which
such Person is party or of which it is a beneficiary.
“Investment”
in any Person means any direct or indirect advance, loan or other
extension of credit (including by way of Guarantee or similar
arrangement) or capital contribution to (by means of any transfer
of cash or other property to others or any payment for property or
services for the account or use of others), or any purchase or
acquisition of Capital Stock, Indebtedness or other similar
instruments issued by, such Person. For purposes of the definition
of “Unrestricted Subsidiary” and
Section 4.04:
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(1)
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“Investment” shall
include the portion (proportionate to the Company’s equity
interest in such Subsidiary) of the Fair Market Value of the net
assets of any Subsidiary of the Company at the time that such
Subsidiary is designated an Unrestricted Subsidiary;
provided , however , that upon a redesignation of
such Subsidiary as a Restricted Subsidiary, the Company shall be
deemed to continue to have a permanent “Investment” in
an Unrestricted Subsidiary in an amount (if positive) equal
to:
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(A)
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the
Company’s “Investment” in such Subsidiary at the
time of such redesignation less
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(B)
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the
portion (proportionate to the Company’s equity interest in
such Subsidiary) of the Fair Market Value of the net assets of such
Subsidiary at the time of such redesignation; and
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(2)
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any
property transferred to or from an Unrestricted Subsidiary shall be
valued at its Fair Market Value at the time of such
transfer.
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In the event
that the Company sells Capital Stock of a Restricted Subsidiary
such that after giving effect to such sale, such Restricted
Subsidiary would no longer constitute a Restricted Subsidiary, any
Investment in such Person remaining after giving effect to such
sale shall be deemed to constitute an Investment made on the date
of such sale of Capital Stock.
“Investment
Grade Rating” means a rating equal to or higher than Baa3 (or
the equivalent) by Moody’s and BBB- (or the equivalent) by
Standard and Poor’s, or an equivalent rating by any other
Rating Agency.
“Legal
Holiday” means a Saturday, Sunday or other day on which the
Trustee or banking institutions are not required by law or
regulation to be open in the State of New York.
“Lien”
means any mortgage, pledge, security interest, encumbrance, lien or
charge in the nature of an encumbrance of any kind (including any
conditional sale or other title retention agreement or lease in the
nature thereof).
“Moody’s”
means Moody’s Investors Service, Inc. and any successor to
its rating business.
17
“Net
Available Cash” from an Asset Disposition means cash payments
received (including any cash payments received by way of deferred
payment of principal pursuant to a note or installment receivable
or otherwise and proceeds from the sale or other disposition of any
securities received as consideration, in each case only as and when
received, but excluding any other consideration received in the
form of assumption by the acquiring Person of Indebtedness or other
obligations relating to the properties or assets that are the
subject of such Asset Disposition or received in any other noncash
form) therefrom, in each case net of:
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(1)
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all
legal, accounting, investment banking, title and recording tax
expenses, commissions and other fees and expenses incurred, and all
Federal, state, provincial, foreign and local taxes required to be
paid or accrued as a liability under GAAP, as a consequence of such
Asset Disposition;
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(2)
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all
payments made on any Indebtedness which is secured by any assets
subject to such Asset Disposition, in accordance with the terms of
any Lien upon or other security agreement of any kind with respect
to such assets, or which must by its terms, or in order to obtain a
necessary consent to such Asset Disposition, or by applicable law
be repaid out of the proceeds from such Asset
Disposition;
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(3)
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all
distributions and other payments required to be made to minority
interest holders in Subsidiaries or joint ventures as a result of
such Asset Disposition; and
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(4)
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appropriate amounts to be provided
by the seller as a reserve, in accordance with GAAP, against any
liabilities associated with the property or other assets disposed
of in such Asset Disposition and retained by the Company or any
Restricted Subsidiary after such Asset Disposition (but only for so
long as such reserve is maintained).
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“Net
Cash Proceeds”, with respect to any issuance or sale of
Capital Stock, means the cash proceeds of such issuance or sale net
of attorneys’ fees, accountants’ fees,
underwriters’ or placement agents’ fees, listing fees,
discounts or commissions and brokerage, consultant and other fees
actually incurred in connection with such issuance or sale and net
of taxes paid or payable as a result thereof.
“Obligations”
means with respect to any Indebtedness, all obligations for
principal, premium, interest, penalties, fees, indemnifications,
reimbursements, and other amounts payable pursuant to the
documentation governing such Indebtedness.
“Officer”
means the Chairman of the Board, the Chief Executive Officer, the
Chief Financial Officer, the President, any Vice President, the
Treasurer or the Secretary of the Company. “Officer” of
a Subsidiary Guarantor has a correlative meaning.
“Officers’
Certificate” means a certificate signed by two
Officers.
18
“Opinion
of Counsel” means a written opinion from legal counsel who is
acceptable to the Trustee. The counsel may be an employee of or
counsel to the Company, a Subsidiary Guarantor or the
Trustee.
“Permitted
Business” means any business engaged in by the Company or any
Restricted Subsidiary on the Closing Date and any Related
Business.
“Permitted
Investment” means an Investment by the Company or any
Restricted Subsidiary in:
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(1)
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the
Company, a Restricted Subsidiary or a Person that will, upon the
making of such Investment, become a Restricted
Subsidiary;
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(2)
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another Person if as a result of
such Investment such other Person is merged or consolidated with or
into, or transfers or conveys all or substantially all its assets
to, the Company or a Restricted Subsidiary;
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(3)
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Temporary Cash
Investments;
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(4)
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receivables owing to the Company or
any Restricted Subsidiary if created or acquired in the ordinary
course of business and payable or dischargeable in accordance with
customary trade terms; provided , however , that such
trade terms may include such concessionary trade terms as the
Company or any such Restricted Subsidiary deems reasonable under
the circumstances;
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(5)
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payroll, travel and similar advances
to cover matters that are expected at the time of such advances
ultimately to be treated as expenses for accounting purposes and
that are made in the ordinary course of business;
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(6)
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loans or advances to employees made
in the ordinary course of business of the Company or such
Restricted Subsidiary;
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(7)
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stock, obligations or securities
received in settlement of disputes with customers or suppliers or
debts (including pursuant to any plan of reorganization or similar
arrangement upon insolvency of a debtor) created in the ordinary
course of business and owing to the Company or any Restricted
Subsidiary or in satisfaction of judgments;
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(8)
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any
Person to the extent such Investment represents the noncash portion
of the consideration received for an Asset Disposition that was
made pursuant to and in compliance with
Section 4.06;
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(9)
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a
Receivables Entity or any Investment by a Receivables Entity in any
other Person in connection with a Qualified Receivables
Transaction, including Investments of funds held in accounts
permitted or required by the arrangements governing such Qualified
Receivables Transaction or any related Indebtedness;
provided , however , that any Investment in
a
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19
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Receivables
Entity is in the form of a Purchase Money Note, contribution of
additional receivables or an equity interest;
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(10)
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any
Person to the extent such Investments consist of prepaid expenses,
negotiable instruments held for collection and lease, utility and
workers’ compensation, performance and other similar deposits
made in the ordinary course of business by the Company or any
Restricted Subsidiary;
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(11)
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any
Person to the extent such Investments consist of Hedging
Obligations otherwise permitted under Section 4.03;
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(12)
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any
Person to the extent such Investment in such Person existed on the
Closing Date and any Investment that replaces, refinances or
refunds such an Investment, provided that the new Investment is in
an amount that does not exceed that amount replaced, refinanced or
refunded and is made in the same Person as the Investment replaced,
refinanced or refunded;
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(13)
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advances to, and Guarantees for the
benefit of, customers, dealers or suppliers made in the ordinary
course of business and consistent with past practice;
and
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(14)
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any
Person to the extent such Investment, when taken together with all
other Investments made pursuant to this clause (14) and then
outstanding on the date such Investment is made, does not exceed
the greater of (A) the sum of (i) $500,000,000 and
(ii) any amounts under Section 4.04(a)(3)(iv)(x) that
were excluded by operation of the proviso in
Section 4.04(a)(3)(iv)and which excluded amounts are not
otherwise included in Consolidated Net Income or intended to be
permitted under any of clauses (1) through (13) of this
definition and (B) 5.0% of Consolidated assets of the Company
as of the end of the most recent fiscal quarter for which financial
statements of the Company have been filed with the SEC.
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“Permitted
Liens” means, with respect to any Person:
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(1)
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Liens to secure Indebtedness
permitted pursuant to Section 4.03(b)(1);
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(2)
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Liens to secure Indebtedness
permitted pursuant to Sections 4.03(b)(11)and
4.03(b)(12);
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(3)
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pledges or deposits by such Person
under workers’ compensation laws, unemployment insurance laws
or similar legislation, or good faith deposits in connection with
bids, tenders, contracts (other than for the payment of
Indebtedness) or leases to which such Person is a party, or
deposits to secure public or statutory obligations of such Person
or deposits of cash or United States government bonds to secure
surety or appeal bonds to which such Person is a party, or deposits
as security for contested taxes or import
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20
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duties or for
the payment of rent, in each case Incurred in the ordinary course
of business;
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(4)
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Liens imposed by law, such as
carriers’, warehousemen’s and mechanics’ Liens,
in each case for sums not yet due or being contested in good faith
by appropriate proceedings or other Liens arising out of judgments
or awards against such Person with respect to which such Person
shall then be proceeding with an appeal or other proceedings for
review;
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(5)
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Liens for taxes, assessments or
other governmental charges not yet due or payable or subject to
penalties for non-payment or which are being contested in good
faith by appropriate proceedings;
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(6)
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Liens in favor of issuers of surety
or performance bonds or letters of credit, bank guarantees,
bankers’ acceptances or similar credit transactions issued
pursuant to the request of and for the account of such Person in
the ordinary course of its business; provided ,
however , that such letters of credit, bank guarantees,
bankers’ acceptances and similar credit transactions do not
constitute Indebtedness;
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(7)
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survey exceptions, encumbrances,
easements or reservations of, or rights of others for, licenses,
rights-of-way, sewers, electric lines, telegraph and telephone
lines and other similar purposes, or zoning or other restrictions
as to the use of real property or Liens incidental to the conduct
of the business of such Person or to the ownership of its
properties which were not Incurred in connection with Indebtedness
for borrowed money and which do not in the aggregate materially
adversely affect the value of said properties or materially impair
their use in the operation of the business of such
Person;
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(8)
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Liens securing Indebtedness Incurred
to finance the construction, purchase or lease of, or repairs,
improvements or additions to, property of such Person (including
Indebtedness Incurred under Section 4.03(b)(6);
provided , however , that the Lien may not extend to
any other property (other than property related to the property
being financed) owned by such Person or any of its Subsidiaries at
the time the Lien is Incurred, and the Indebtedness (other than any
interest thereon) secured by the Lien may not be Incurred more than
180 days after the later of the acquisition, completion of
construction, repair, improvement, addition or commencement of full
operation of the property subject to the Lien;
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(9)
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Liens existing on the Closing Date
(other than Liens referred to in the foregoing clauses (1) and
(2));
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(10)
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Liens on property or shares of stock
of another Person at the time such other Person becomes a
Subsidiary of such Person; provided , however , that
such Liens are not created, Incurred or assumed in connection with,
or
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21
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in
contemplation of, such other Person becoming such a Subsidiary;
provided further , however , that such Liens
do not extend to any other property owned by such Person or any of
its Subsidiaries, except pursuant to after-acquired property
clauses existing in the applicable agreements at the time such
Person becomes a Subsidiary which do not extend to property
transferred to such Person by the Company or a Restricted
Subsidiary;
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(11)
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Liens on property at the time such
Person or any of its Subsidiaries acquires the property, including
any acquisition by means of a merger or consolidation with or into
such Person or any Subsidiary of such Person; provided ,
however , that such Liens are not created, Incurred or
assumed in connection with, or in contemplation of, such
acquisition; provided further , however , that the
Liens do not extend to any other property owned by such Person or
any of its Subsidiaries;
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(12)
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Liens securing Indebtedness or other
obligations of a Subsidiary of such Person owing to such Person or
a Restricted Subsidiary of such Person;
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(13)
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Liens securing Hedging Obligations
so long as such Hedging Obligations are permitted to be Incurred
under this Indenture;
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(14)
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Liens on assets of Foreign
Subsidiaries securing Indebtedness Incurred under
Section 4.03(b)(10);
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(15)
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Liens to secure any Refinancing (or
successive Refinancings) as a whole, or in part, of any
Indebtedness secured by any Lien referred to in the foregoing
clauses (8), (9), (10) and (11); provided ,
however , that:
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(A)
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such new Lien shall be limited to
all or part of the same property that secured the original Lien
(plus improvements, accessions, proceeds, dividends or
distributions in respect thereof) and
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(B)
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the
Indebtedness secured by such Lien at such time is not increased to
any amount greater than the sum of:
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(i)
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the
outstanding principal amount or, if greater, committed amount of
the Indebtedness secured by Liens described under clauses (8), (9),
(10) or (11) hereof at the time the original Lien became
a Permitted Lien under this Indenture; and
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(ii)
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an
amount necessary to pay any fees and expenses, including premiums,
related to such Refinancings;
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(16)
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Liens on accounts receivables and
related assets of the type specified in the definition of
“Qualified Receivables Transaction” Incurred in
connection with a Qualified Receivables Transaction;
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22
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(17)
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judgment Liens not giving rise to an
Event of Default so long as any appropriate legal proceedings which
may have been duly initiated for the review of such judgment have
not been finally terminated or the period within which such
proceedings may be initiated has not expired;
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(18)
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Liens arising from Uniform
Commercial Code financing statement filings regarding leases that
do not otherwise constitute Indebtedness entered into in the
ordinary course of business;
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(19)
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leases and subleases of real
property which do not materially interfere with the ordinary
conduct of the business of the Company and its
Subsidiaries;
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(20)
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Liens which constitute
bankers’ Liens, rights of set-off or similar rights and
remedies as to deposit accounts or other funds maintained with any
bank or other financial institution, whether arising by operation
of law or pursuant to contract;
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(21)
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Liens on specific items of inventory
or other goods and proceeds of any Person securing such
Person’s obligations in respect of bankers’ acceptances
issued or created for the account of such Person to facilitate the
purchase, shipment or storage of such inventory or other
goods;
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(22)
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Liens on specific items of inventory
or other goods and related documentation (and proceeds thereof)
securing reimbursement obligations in respect of trade letters of
credit issued to ensure payment of the purchase price for such
items of inventory or other goods; and
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(23)
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other Liens to secure Indebtedness
as long as the amount of outstanding Indebtedness secured by Liens
Incurred pursuant to this clause (23) does not exceed 7.5% of
Consolidated assets of the Company, as determined based on the
consolidated balance sheet of the Company as of the end of the most
recent fiscal quarter for which financial statements have been
filed with the SEC; provided , however ,
notwithstanding whether this clause (23) would otherwise be
available to secure Indebtedness, Liens securing Indebtedness
originally secured pursuant to this clause (23) may secure
Refinancing Indebtedness in respect of such Indebtedness and such
Refinancing Indebtedness shall be deemed to have been secured
pursuant to this clause (23).
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“Person”
means any individual, corporation, partnership, limited liability
company, joint venture, association, joint-stock company, trust,
unincorporated organization, government or any agency or political
subdivision thereof or any other entity.
“Preferred
Stock”, as applied to the Capital Stock of any Person, means
Capital Stock of any class or classes (however designated) that is
preferred as to the payment of dividends, or as to the distribution
of assets upon any voluntary or
23
involuntary liquidation or dissolution of such Person, over shares
of Capital Stock of any other class of such Person.
“principal”
of a Security means the principal of the Security plus the premium,
if any, payable on the Security which is due or overdue or is to
become due at the relevant time.
“Prospectus”
means the Prospectus, dated May 5, 2009, as supplemented by
the Prospectus Supplement, dated May 6, 2009, with respect to
the Securities, as supplemented or amended and including all
documents incorporated by reference therein.
“Purchase
Money Indebtedness” means Indebtedness:
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(1)
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consisting of the deferred purchase
price of property, plant or equipment, conditional sale
obligations, obligations under any title retention agreement and
other obligations Incurred in connection with the acquisition,
construction or improvement of such asset, in each case where the
amount of such Indebtedness does not exceed the greater of
(A) the cost of the asset being financed and (B) the Fair
Market Value of such asset; and
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(2)
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Incurred to finance such
acquisition, construction or improvement by the Company or a
Restricted Subsidiary of such asset;
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provided , however , that such Indebtedness is
Incurred within 180 days after such acquisition or the
completion of such construction or improvement.
“Purchase
Money Note” means a promissory note of a Receivables Entity
evidencing a line of credit, which may be irrevocable, from the
Company or any Subsidiary of the Company to a Receivables Entity in
connection with a Qualified Receivables Transaction, which
note
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(1)
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shall be repaid from cash available
to the Receivables Entity, other than
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(A)
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amounts required to be established
as reserves;
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(B)
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amounts paid to investors in respect
of interest;
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(C)
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principal and other amounts owing to
such investors; and
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(D)
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amounts paid in connection with the
purchase of newly generated receivables and
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(2)
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may
be subordinated to the payments described in clause (a).
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“Qualified
Receivables Transaction” means any transaction or series of
transactions that may be entered into by the Company or any
of
24
its
Subsidiaries pursuant to which the Company or any of its
Subsidiaries may sell, convey or otherwise transfer to:
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(1)
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a
Receivables Entity (in the case of a transfer by the Company or any
of its Subsidiaries) or
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(2)
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any
other Person (in the case of a transfer by a Receivables
Entity),
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or may grant a
security interest in, any accounts receivable (whether now existing
or arising in the future) of the Company or any of its
Subsidiaries, and any assets related thereto including, without
limitation, all collateral securing such accounts receivable, all
contracts and all Guarantees or other obligations in respect of
such accounts receivable, proceeds of such accounts receivable and
other assets which are customarily transferred or in respect of
which security interests are customarily granted in connection with
asset securitization transactions involving accounts receivable;
provided , however , that the financing terms,
covenants, termination events and other provisions thereof shall be
market terms (as determined in good faith by a Financial Officer of
the Company).
The grant of a
security interest in any accounts receivable of the Company or any
of its Restricted Subsidiaries to secure Bank Indebtedness shall
not be deemed a Qualified Receivables Transaction.
“Rating
Agency” means Standard & Poor’s and Moody’s
or if Standard & Poor’s or Moody’s or both shall
not make a rating on the Securities publicly available, a
nationally recognized statistical rating agency or agencies, as the
case may be, selected by the Company (as certified by a resolution
of the Board of Directors) which shall be substituted for Standard
& Poor’s or Moody’s or both, as the case may
be.
“Receivables
Entity” means a (a) Wholly Owned Subsidiary of the
Company which is designated by the Board of Directors (as provided
below) as a Receivables Entity or (b) another Person engaging
in a Qualified Receivables Transaction with the Company which
Person engages in the business of the financing of accounts
receivable, and in either of clause (a) or (b):
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(1)
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no
portion of the Indebtedness or any other obligations (contingent or
otherwise) of which
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(A)
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is
Guaranteed by the Company or any Subsidiary of the Company
(excluding Guarantees of obligations (other than the principal of,
and interest on, Indebtedness) pursuant to Standard Securitization
Undertakings);
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(B)
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is
recourse to or obligates the Company or any Subsidiary of the
Company in any way other than pursuant to Standard Securitization
Undertakings; or
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(C)
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subjects any property or asset of
the Company or any Subsidiary of the Company, directly or
indirectly, contingently or otherwise, to
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25
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the
satisfaction thereof, other than pursuant to Standard
Securitization Undertakings;
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(2)
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which is not an Affiliate of the
Company or with which neither the Company nor any Subsidiary of the
Company has any material contract, agreement, arrangement or
understanding other than on terms which the Company reasonably
believes to be no less favorable to the Company or such Subsidiary
than those that might be obtained at the time from Persons that are
not Affiliates of the Company; and
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(3)
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to
which neither the Company nor any Subsidiary of the Company has any
obligation to maintain or preserve such entity’s financial
condition or cause such entity to achieve certain levels of
operating results.
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Any such
designation by the Board of Directors shall be evidenced to the
Trustee by filing with the Trustee a certified copy of the
resolution of the Board of Directors giving effect to such
designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions.
“Refinance”
means, in respect of any Indebtedness, to refinance, extend, renew,
refund, repay, prepay, redeem, defease or retire, or to issue other
Indebtedness in exchange or replacement for, such Indebtedness,
including, in any such case from time to time, after the discharge
of the Indebtedness being Refinanced. “Refinanced” and
“Refinancing” shall have correlative
meanings.
“Refinancing
Indebtedness” means Indebtedness that is Incurred to
Refinance (including pursuant to any defeasance or discharge
mechanism) any Indebtedness of the Company or any Restricted
Subsidiary existing on the Closing Date or Incurred in compliance
with this Indenture (including Indebtedness of the Company that
Refinances Refinancing Indebtedness); provided ,
however , that:
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(1)
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the
Refinancing Indebtedness has a Stated Maturity no earlier than the
Stated Maturity of the Indebtedness being Refinanced,
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(2)
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the
Refinancing Indebtedness has an Average Life at the time such
Refinancing Indebtedness is Incurred that is equal to or greater
than the Average Life of the Indebtedness being
refinanced,
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(3)
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such Refinancing Indebtedness is
Incurred in an aggregate principal amount (or if Incurred with
original issue discount, an aggregate issue price) that is equal to
or less than the aggregate principal amount of the Indebtedness
being refinanced (or if issued with original issue discount, the
aggregate accreted value) then outstanding (or that would be
outstanding if the entire committed amount of any credit facility
being Refinanced were fully drawn (other than any such amount that
would have been prohibited from being drawn pursuant to
Section 4.03) (plus fees and expenses, including any premium
and defeasance costs), and
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26
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(4)
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if
the Indebtedness being Refinanced is subordinated in right of
payment to the Securities, such Refinancing Indebtedness is
subordinated in right of payment to the Securities at least to the
same extent as the Indebtedness being Refinanced;
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provided further , however , that
Refinancing Indebtedness shall not include:
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(A)
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Indebtedness of a Restricted
Subsidiary that is not a Subsidiary Guarantor that Refinances
Indebtedness of the Company or
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(B)
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Indebtedness of the Company or a
Restricted Subsidiary that Refinances Indebtedness of an
Unrestricted Subsidiary.
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“Related
Business” means any business reasonably related, ancillary or
complementary to the businesses of the Company and its Restricted
Subsidiaries on the Closing Date.
“Restricted
Payment” in respect of any Person means:
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(1)
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the
declaration or payment of any dividend, any distribution on or in
respect of its Capital Stock or any similar payment (including any
payment in connection with any merger or consolidation involving
the Company or any Restricted Subsidiary) to the direct or indirect
holders of its Capital Stock in their capacity as such, except
(A) dividends or distributions payable solely in its Capital
Stock (other than Disqualified Stock or, in the case of a
Restricted Subsidiary, Preferred Stock) and (B) dividends or
distributions payable to the Company or a Restricted Subsidiary
(and, if such Restricted Subsidiary has Capital Stock held by
Persons other than the Company or other Restricted Subsidiaries, to
such other Persons on no more than a pro rata basis),
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(2)
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the
purchase, repurchase, redemption, retirement or other acquisition
(“Purchase”) for value of any Capital Stock of the
Company held by any Person (other than Capital Stock held by the
Company or a Restricted Subsidiary) or any Capital Stock of a
Restricted Subsidiary held by any affiliate of the Company (other
than by a Restricted Subsidiary) (other than in exchange for
Capital Stock of the Company that is not Disqualified
Stock),
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(3)
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the
Purchase for value, prior to scheduled maturity, of any scheduled
repayment or any scheduled sinking fund payment, any Subordinated
Obligations (other than the Purchase for value of Subordinated
Obligations acquired in anticipation of satisfying a sinking fund
obligation, principal installment or final maturity, in each case
due within one year of the date of such Purchase), or
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(4)
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any
Investment (other than a Permitted Investment) in any
Person.
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27
“Restricted
Subsidiary” means any Subsidiary of the Company other than an
Unrestricted Subsidiary.
“Sale/Leaseback
Transaction” means an arrangement relating to property, plant
or equipment now owned or hereafter acquired by the Company or a
Restricted Subsidiary whereby the Company or a Restricted
Subsidiary transfers such property to a Person and the Company or
such Restricted Subsidiary leases it from such Person, other than
(i) leases between the Company and a Restricted Subsidiary or
between Restricted Subsidiaries or (ii) any such transaction
entered into with respect to any property, plant or equipment or
any improvements thereto at the time of, or within 180 days
after, the acquisition or completion of construction of such
property, plant or equipment or such improvements (or, if later,
the commencement of commercial operation of any such property,
plant or equipment), as the case may be, to finance the cost of
such property, plant or equipment or such improvements, as the case
may be.
“SEC”
means the Securities and Exchange Commission.
“Secured
Indebtedness” means any Indebtedness of the Company secured
by a Lien. “Secured Indebtedness” of a Subsidiary
Guarantor has a correlative meaning.
“Securities”
means the 10.500% Senior Notes due 2016 issued pursuant to this
Indenture.
“Securities
Act” means the U.S. Securities Act of 1933, as
amended.
“Senior
Indebtedness” of the Company or any Subsidiary Guarantor, as
the case may be, means the principal of, premium (if any) and
accrued and unpaid interest on (including interest accruing on or
after the filing of any petition in bankruptcy or for
reorganization of the Company or any Subsidiary Guarantor, as
applicable, regardless of whether or not a claim for post-filing
interest is allowed in such proceedings), and fees and other
amounts owing in respect of, Bank Indebtedness, the Securities (in
the case of the Company), the Subsidiary Guarantees (in the case of
the Subsidiary Guarantors) and all other Indebtedness of the
Company or any Subsidiary Guarantor, as applicable, whether
outstanding on the Closing Date or thereafter Incurred, unless in
the instrument creating or evidencing the same or pursuant to which
the same is outstanding it is provided that such obligations are
subordinated in right of payment to the Securities or such
Subsidiary Guarantor’s Subsidiary Guarantee, as applicable;
provided , however , that Senior Indebtedness of the
Company or any Subsidiary Guarantor shall not include:
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(1)
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any
obligation of the Company to any Subsidiary of the Company or of
such Subsidiary Guarantor to the Company or any other Subsidiary of
the Company;
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(2)
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any
liability for Federal, state, local or other taxes owed or owing by
the Company or such Subsidiary Guarantor, as applicable;
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28
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(3)
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any
accounts payable or other liability to trade creditors arising in
the ordinary course of business (including Guarantees thereof or
instruments evidencing such liabilities);
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(4)
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any
Indebtedness or obligation of the Company (and any accrued and
unpaid interest in respect thereof) that by its terms is
subordinate or junior in right of payment to any other Indebtedness
or obligation of the Company or such Subsidiary Guarantor, as
applicable, including any Subordinated Obligations of the Company
or such Subsidiary Guarantor, as applicable;
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(5)
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any
obligations with respect to any Capital Stock; or
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(6)
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any
Indebtedness Incurred in violation of this Indenture.
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“Significant
Subsidiary” means any Restricted Subsidiary that would be a
“Significant Subsidiary” of the Company within the
meaning of Rule 1-02 under Regulation S-X promulgated by
the SEC.
“Specified
Asset Sale” means the sale of all or a portion of the
Company’s properties in Akron, Summit County, Ohio held on
the date hereof.
“Standard
& Poor’s” means Standard & Poor’s, a
division of The McGraw-Hill Companies, Inc., and any successor to
its rating business.
“Standard
Securitization Undertakings” means representations,
warranties, covenants and indemnities entered into by the Company
or any Subsidiary of the Company which, taken as a whole, are
customary in an accounts receivable transaction.
“Stated
Maturity” means, with respect to any security, the date
specified in such security as the fixed date on which the final
payment of principal of such security is due and payable, including
pursuant to any mandatory redemption provision (but excluding any
provision providing for the repurchase of such security at the
option of the holder thereof upon the happening of any contingency
beyond the control of the issuer unless such contingency has
occurred).
“Subordinated
Obligation” means any Indebtedness of the Company (whether
outstanding on the Closing Date or thereafter Incurred) that by its
terms is subordinate or junior in right of payment to the
Securities. “Subordinated Obligation” of a Subsidiary
Guarantor has a correlative meaning.
“Subsidiary”
of any Person means any corporation, association, partnership or
other business entity of which more than 50% of the total voting
power of shares of Capital Stock or other interests (including
partnership interests) 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:
29
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(1)
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such Person,
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(2)
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such Person and one or more
Subsidiaries of such Person or
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(3)
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one
or more Subsidiaries of such Person.
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“Subsidiary
Guarantee” means each Guarantee of the obligations with
respect to the Securities issued by a Subsidiary of the Company
pursuant to the terms of this Indenture.
“Subsidiary
Guarantor” means any Subsidiary that has issued a Subsidiary
Guarantee.
“Temporary
Cash Investments” means any of the following:
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(1)
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direct obligations of, or
obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by
any agency thereof to the extent such obligations are backed by the
full faith and credit of the United States of America), in each
case maturing within one year from the date of acquisition
thereof;
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(2)
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investments in commercial paper
maturing within 270 days from the date of acquisition thereof,
and having, at such date of acquisition, ratings of A1 from
Standard & Poor’s and P1 from Moody’s;
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(3)
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investments in certificates of
deposit, banker’s acceptances and time deposits maturing
within 180 days from the date of acquisition thereof and
issued or guaranteed by or placed with, and money market deposit
accounts issued or offered by any commercial bank organized under
the laws of the United States of America or any state thereof which
has a short-term deposit rating of A1 from Standard &
Poor’s and P1 from Moody’s and has a combined capital
and surplus and undivided profits of not less than
$500,000,000;
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(4)
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fully collateralized repurchase
agreements with a term of not more than 30 days for securities
described in clause (1) above and entered into with a
financial institution described in clause
(3) above;
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(5)
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money market funds that
(A) comply with the criteria set forth in SEC Rule 2a-7 under
the Investment Company Act of 1940, (B) are rated AAA by
Standard & Poor’s and Aaa by Moody’s and
(C) have portfolio assets of at least $5,000,000,000;
and
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(6)
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in
the case of any Foreign Subsidiary, (A) marketable direct
obligations issued or unconditionally guaranteed by the sovereign
nation in which such Foreign Subsidiary is organized and is
conducting business or issued by any agency of such sovereign
nation and backed by the full faith and credit of such sovereign
nation, in each case maturing within one year from the date of
acquisition, so long as the indebtedness of such sovereign nation
is rated at least A by Standard & Poor’s or A2 by
Moody’s or
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30
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carries an
equivalent rating from a comparable foreign rating agency, (B)
investments of the type and maturity described in clauses
(2) through (5) of foreign obligors, which investments or
obligors have ratings described in such clauses or equivalent
ratings from comparable foreign rating agencies,
(C) investments of the type and maturity described in clause
(3) in any obligor organized under the laws of a jurisdiction
other than the United States that (i) is a branch or
subsidiary of a lender or the ultimate parent company of a lender
under any of the Credit Agreements (but only if such lender meets
the ratings and capital, surplus and undivided profits requirements
of such clause (3)) or (ii) carries a rating at least
equivalent to the rating of the sovereign nation in which it is
located, and (D) other investments of the type and maturity
described in clause (3) in obligors organized under the laws
of a jurisdiction other than the United States in any country in
which such Subsidiary is located; provided , however
, that the investments permitted under this subclause
(D) shall be made in amounts and jurisdictions consistent with
the Company’s policies governing short-term
investments.
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“TIA”
means the Trust Indenture Act of 1939 (15 U.S.C. §§
77aaa-77bbbb) as in effect on the Closing Date.
“Trade
Payables” means, with respect to any Person, any accounts
payable or any indebtedness or monetary obligation to trade
creditors created, assumed or Guaranteed by such Person arising in
the ordinary course of business in connection with the acquisition
of goods or services.
“Trustee”
means the party named as such in this Indenture until a successor
replaces it and, thereafter, means the successor.
“Trust
Officer” means the Chairman of the Board, the President or
any other officer or assistant officer of the Trustee assigned by
the Trustee to administer its corporate trust matters.
“Uniform
Commercial Code” means the New York Uniform Commercial Code
as in effect from time to time.
“Unrestricted
Subsidiary” means:
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(1)
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any
Subsidiary of the Company that at the time of determination shall
be designated an Unrestricted Subsidiary by the Board of Directors
in the manner provided below and
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(2)
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any
Subsidiary of an Unrestricted Subsidiary.
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The Board of
Directors may designate any Subsidiary of the Company (including
any newly acquired or newly formed Subsidiary of the Company) to be
an Unrestricted Subsidiary unless such Subsidiary or any of its
Subsidiaries owns any Capital Stock or Indebtedness of, or owns or
holds any Lien on any property of, the Company or any
other
31
Subsidiary of
the Company that is not a Subsidiary of the Subsidiary to be so
designated; provided , however , that
either:
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(A)
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|
the
Subsidiary to be so designated has total Consolidated assets of
$1,000 or less or
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(B)
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if
such Subsidiary has Consolidated assets greater than $1,000, then
such designation would be permitted under
Section 4.04.
|
The Board of
Directors may designate any Unrestricted Subsidiary to be a
Restricted Subsidiary; provided , however , that
immediately after giving effect to such designation:
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(x)
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|
(1) the Company could Incur
$1.00 of additional Indebtedness under Section 4.03(a) or
(2) the Consolidated Coverage Ratio for the Company and its
Restricted Subsidiaries would be greater after giving effect to
such designation than before such designation and
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(y)
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no
Default shall have occurred and be continuing.
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Any such
designation of a Subsidiary as a Restricted Subsidiary or
Unrestricted Subsidiary by the Board of Directors shall be
evidenced to the Trustee by promptly filing with the Trustee a copy
of the resolution of the Board of Directors giving effect to such
designation and an Officers’ Certificate certifying that such
designation complied with the foregoing provisions.
“U.S.
Bank Indebtedness” means any and all amounts payable under or
in respect of the U.S. Credit Agreements and any Refinancing
Indebtedness with respect thereto or with respect to such
Refinancing Indebtedness, as amended from time to time, including
principal, premium (if any), interest (including interest accruing
on or after the filing of any petition in bankruptcy or for
reorganization relating to the Company whether or not a claim for
post-filing interest is allowed in such proceedings), fees,
charges, expenses, reimbursement obligations and all other amounts
payable thereunder or in respect thereof.
“U.S.
Credit Agreements” means (i) the Amended and Restated
First Lien Credit Agreement, dated as of April 20, 2007, among
the Company, the lenders party thereto, the issuing banks party
thereto, Citicorp USA, Inc., as Syndication Agent, Bank of America,
N.A., BNP Paribas, The CIT Group/Business Credit, Inc., General
Electric Capital Corporation, GMAC Commercial Finance LLC, Wells
Fargo Foothill, as Documentation Agents, and JPMorgan Chase Bank,
N.A., as Administrative Agent and Collateral Agent, and
(ii) the Amended and Restated Second Lien Credit Agreement,
dated as of April 20, 2007, among the Company, the lenders
party thereto, Deutsche Bank Trust Company Americas, as Collateral
Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent, each
as amended, restated, supplemented, waived, replaced (whether or
not upon termination, and whether with the original lenders or
otherwise), refinanced, restructured or otherwise modified from
time to time (except to the extent that any such amendment,
restatement, supplement, waiver, replacement, refinancing,
restructuring or other modification thereto would be prohibited by
the terms of the
32
Indenture,
unless otherwise agreed to by the Holders of at least a majority in
aggregate principal amount of Securities at the time
outstanding).
“U.S.
Dollar Equivalent” means with respect to any monetary amount
in a currency other than U.S. dollars, at any time for
determination thereof, the amount of U.S. dollars obtained by
converting such foreign currency involved in such computation into
U.S. dollars at the spot rate for the purchase of U.S. dollars with
the applicable foreign currency as published in The Wall Street
Journal in the “Exchange Rates” column under the
heading “Currency Trading” on the date two Business
Days prior to such determination.
“U.S.
Government Obligations” means direct obligations (or
certificates representing an ownership interest in such
obligations) of the United States of America (including any agency
or instrumentality thereof) for the payment of which the full faith
and credit of the United States of America is pledged and which are
not callable or redeemable at the issuer’s option.
“Voting
Stock” of a Person means all classes of Capital Stock or
other interests (including partnership interests) of such Person
then outstanding and normally entitled (without regard to the
occurrence of any contingency) to vote in the election of
directors, managers or trustees thereof.
“Wholly
Owned Subsidiary” means a Restricted Subsidiary of the
Company all the Capital Stock of which (other than directors’
qualifying shares) is owned by the Company or another Wholly Owned
Subsidiary.
SECTION
1.02. Other Definitions.
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Defined in
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Section
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4.07
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(a)
|
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6.01
|
|
“Change of Control Offer”
|
|
|
4.08
|
(b)
|
“covenant defeasance
option”
|
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|
8.01
|
(b)
|
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|
|
|
6.01
|
|
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|
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Appendix A
|
|
|
|
|
6.01
|
|
|
|
|
Appendix A
|
|
|
|
|
4.09
|
|
“legal defeasance option”
|
|
|
8.01
|
(b)
|
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|
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4.06
|
(c)
|
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|
4.06
|
(d)(3)
|
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4.06
|
(d)(3)
|
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2.03
|
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|
|
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4.06
|
(d)(2)
|
33
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Defined in
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|
Section
|
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2.03
|
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|
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4.12
|
(b)
|
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5.01
|
(a)(1)
|
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5.01
|
(c)(1)
|
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|
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4.12
|
(a)
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4.12
|
(a)
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4.12
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(b)
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SECTION
1.03. Incorporation by Reference of Trust Indenture Act .
This Indenture is subject to the mandatory provisions of the TIA
which are incorporated by reference in and made a part of this
Indenture. The following TIA terms have the following
meanings:
“Commission”
means the SEC;
“indenture
securities” means the Securities and the Subsidiary
Guarantees;
“indenture
security holder” means a Holder;
“indenture
to be qualified” means this Indenture;
“indenture
trustee” or “institutional trustee” means the
Trustee; and
“obligor”
on the indenture securities means the Company, each Subsidiary
Guarantor and any other obligor on the indenture
securities.
All
other TIA terms used in this Indenture that are defined by the TIA,
defined by TIA reference to another statute or defined by SEC rule
have the meanings assigned to them by such definitions.
SECTION
1.04. Rules of Construction . Unless the context otherwise
requires:
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|
(1)
|
|
a
term has the meaning assigned to it;
|
|
|
(2)
|
|
an
accounting term not otherwise defined has the meaning assigned to
it in accordance with GAAP;
|
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(3)
|
|
“or” is not
exclusive;
|
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|
(4)
|
|
“including” means
including without limitation;
|
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|
(5)
|
|
words in the singular include the
plural and words in the plural include the singular;
|
34
|
|
(6)
|
|
unsecured Indebtedness shall not be
deemed to be subordinate or junior to secured Indebtedness merely
by virtue of its nature as unsecured Indebtedness;
|
|
|
(7)
|
|
secured Indebtedness shall not be
deemed to be subordinate or junior to any other secured
Indebtedness merely because it has a junior priority with respect
to the same collateral;
|
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|
(8)
|
|
the
principal amount of any noninterest bearing or other discount
security at any date shall be the principal amount thereof that
would be shown on a balance sheet of the issuer dated such date
prepared in accordance with GAAP;
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(9)
|
|
the
principal amount of any Preferred Stock shall be (A) the
maximum liquidation value of such Preferred Stock or (B) the
maximum mandatory redemption or mandatory repurchase price with
respect to such Preferred Stock, whichever is greater;
and
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(10)
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|
all
references to the date the Securities were originally issued shall
refer to the Closing Date.
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SECTION
2.01. Form and Dating . Provisions relating to the
Securities are set forth in Appendix A attached hereto (the
“Appendix”) which is hereby incorporated in, and
expressly made part of, this Indenture. The Securities and the
Trustee’s certificate of authentication shall be
substantially in the form of Exhibit 1 to this Indenture,
which is hereby incorporated in and expressly made a part of this
Indenture. The Securities may have notations, legends or
endorsements required by law, stock exchange rule, agreements to
which the Company is subject, if any, or usage (provided that any
such notation, legend or endorsement is in a form acceptable to the
Company). Each Security shall be dated the date of its
authentication. The terms of the Securities set forth in
Appendix A and Exhibit 1 are part of the terms of this
Indenture. The Securities shall be issuable only in registered form
without interest coupons and only in denominations of $1,000 and
integral multiples of $1,000 in excess thereof.
SECTION
2.02. Execution and Authentication . Two Officers shall sign
the Securities for the Company by manual or facsimile
signature.
If
an Officer whose signature is on a Security no longer holds that
office at the time the Trustee authenticates the Security, the
Security shall be valid nevertheless.
A
Security shall not be valid until an authorized signatory of the
Trustee manually signs the certificate of authentication on the
Security. The signature shall be conclusive evidence that the
Security has been authenticated under this Indenture.
35
The
Trustee shall authenticate and make available for delivery
Securities as set forth in Appendix A.
The
Trustee may appoint an authenticating agent reasonably acceptable
to the Company to authenticate the Securities. Unless limited by
the terms of such appointment, an authenticating agent may
authenticate Securities whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee
includes authentication by such agent. An authenticating agent has
the same rights as any Registrar, Paying Agent or agent for service
of notices and demands.
SECTION
2.03. Registrar and Paying Agent . (a) The Company
shall maintain an office or agency where Securities may be
presented for registration of transfer or for exchange (the
“Registrar”) and an office or agency located in the
Borough of Manhattan, the City of New York, where Securities may be
presented for payment (the “Paying Agent”). The
Registrar shall keep a register of the Securities and of their
transfer and exchange. The Company may have one or more
co-registrars and one or more additional paying agents provided,
however, that so long as Wells Fargo Bank, National Association
shall be the Trustee, without the consent of the Trustee, there
shall be no more than one Registrar or Paying Agent. The term
“Paying Agent” includes any additional paying
agent.
The
Company shall enter into an appropriate agency agreement with any
Registrar, Paying Agent or co-registrar not a party to this
Indenture, which shall incorporate the terms of the TIA. The
agreement shall implement the provisions of this Indenture that
relate to such agent. The Company shall notify the Trustee of the
name and address of any such agent. If the Company fails to
maintain a Registrar or Paying Agent, the Trustee shall act as such
and shall be entitled to appropriate compensation therefor pursuant
to Section 7.07. The Company or any Wholly Owned Subsidiary
incorporated or organized within The United States of America may
act as Paying Agent, Registrar, co-registrar or transfer
agent.
The
Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents, and the Company
may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Registrar need not register
transfer or exchanges of Securities selected for redemption
(except, in the case of Securities to be redeemed in part, the
portion thereof not to be redeemed) or any Securities for a period
of 15 days before a selection of Securities to be redeemed, or
any Securities for a period of 15 days before a selection of
an interest payment date. The Holder of a Security may be treated
as the owner of such Security for all purposes.
(b) The
Company initially appoints the Trustee as Registrar and Paying
Agent in connection with the Securities and Securities Custodian
with respect to the Global Securities.
(c) The
Company may remove any Registrar or Paying Agent upon written
notice to such Registrar or Paying Agent and to the Trustee;
provided , however ,
36
that no such
removal shall become effective until (i) acceptance of an
appointment by a successor as evidence by an appropriate agreement
entered into by the Company and such successor Registrar or Paying
Agent, as the case may be, and delivered to the Trustee or
(ii) notification to the Trustee that the Trustee shall serve
as Registrar or Paying Agent until the appointment of a successor
in accordance with clause (i) above.
(d) Except
as the Company and the Trustee may otherwise agree, the Company
shall promptly file with the Trustee by each January 15th a
written notice specifying the amount of the original issue discount
accrued on the Securities for the previous calendar year, including
daily rates and accrual periods, and such other information
relating to original issue discount as may be required under the
Code and applicable regulations, as amended from time to
time.
SECTION
2.04. Paying Agent To Hold Money in Trust . Prior to each
due date of the principal and interest on any Security, the Company
shall deposit with the Paying Agent (or if the Company or a
Subsidiary is acting as Paying Agent, segregate and hold in trust
for the benefit of Holders entitled thereto) a sum sufficient to
pay such principal and interest when so becoming due. The Company
shall require each Paying Agent (other than the Trustee) to agree
in writing that the Paying Agent shall hold in trust for the
benefit of Holders or the Trustee all money held by the Paying
Agent for the payment of principal of or interest on the Securities
and shall notify the Trustee of any default by the Company in
making any such payment. If the Company or a Subsidiary acts as
Paying Agent, it shall segregate the money held by it as Paying
Agent and hold it as a separate trust fund. The Company at any time
may require a Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed by the Paying Agent.
Upon complying with this Section, the Paying Agent shall have no
further liability for the money delivered to the
Trustee.
SECTION
2.05. Lists of Holders of Securities . The Trustee shall
preserve in as current a form as is reasonably practicable the most
recent list available to it of the names and addresses of Holders.
If the Trustee is not the Registrar, the Company shall furnish to
the Trustee, in writing at least five Business Days before each
interest payment date and at such other times as the Trustee may
request in writing, a list in such form and as of such date as the
Trustee may reasonably require of the names and addresses of
Holders.
SECTION
2.06. Transfer and Exchange . (a) The Securities shall
be issued in registered form and shall be transferable only in
compliance with Appendix A and upon the surrender of a
Security for registration of transfer. When a Security is presented
to the Registrar or a co-registrar with a request to register a
transfer, the Registrar shall register the transfer as requested if
the requirements of this Indenture and Section 8-401(1) of the
Uniform Commercial Code are met. When Securities are presented to
the Registrar or a co-registrar with a request to exchange them for
an equal principal amount of Securities of other denominations, the
Registrar shall make the exchange as requested if the same
requirements are met.
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(b) To
permit registration of transfers and exchanges, the Company shall
execute and the Trustee shall authenticate Securities at the
Registrar’s request. The Company may require payment of a sum
sufficient to pay all taxes, assessments or other governmental
charges in connection with any transfer or exchange pursuant to
this Section. The Company shall not be required to make and the
Registrar need not register transfer or exchanges of Securities
selected for redemption in accordance with the terms of this
Indenture (except, in the case of Securities to be redeemed in
part, the portion thereof not to be redeemed) or any Securities for
a period of 15 days before a selection of Securities to be
redeemed or any Securities for a period of 15 days before an
interest payment date.
Prior
to the due presentation for registration of transfer of any
Security, the Company, the Subsidiary Guarantors, the Trustee, the
Paying Agent and the Registrar may deem and treat the Person in
whose name a Security is registered as the absolute owner of such
Security for the purpose of receiving payment of principal of and
(subject to paragraph 2 of the Securities) interest, if any, on
such Security and for all other purposes whatsoever, whether or not
such Security is overdue, and none of the Company, any Subsidiary
Guarantor, the Trustee, the Paying Agent, or the Registrar shall be
affected by notice to the contrary.
Any
Holder of a beneficial interest in a Global Security shall, by
acceptance of such beneficial interest, agree that transfers of
beneficial interest in such Global Security may be effected only
through a book-entry system maintained by (a) the Holder of
such Global Security (or its agent) or (b) any Holder of a
beneficial interest in such Global Security, and that ownership of
a beneficial interest in such Global Security shall be required to
be reflected in a book entry.
All
Securities issued upon any transfer or exchange pursuant to the
terms of this Indenture shall evidence the same Indebtedness and
shall be entitled to the same benefits under this Indenture as the
Securities surrendered upon such transfer or exchange.
SECTION
2.07. Replacement Securities . If a mutilated Security is
surrendered to the Registrar or if the Holder of a Security claims
that the Security has been lost, destroyed or wrongfully taken, the
Company shall issue and the Trustee shall authenticate a
replacement Security if the requirements of Section 8-405 of
the Uniform Commercial Code are met and the Holder satisfies any
other reasonable requirements of the Trustee. If required by the
Trustee or the Company, such Holder shall furnish an indemnity bond
sufficient in the judgment of the Company and the Trustee to
protect the Company, the Trustee, the Paying Agent, the Registrar
and any co-registrar from any loss which any of them may suffer if
a Security is replaced. The Company and the Trustee may charge the
Holder for their expenses in replacing a Security.
Every
replacement Security is an additional Obligation of the Company.
The provisions of this Section 2.07 are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, lost, destroyed
or wrongfully taken Securities.
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SECTION
2.08. Outstanding Securities . Securities outstanding at any
time are all Securities authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation and
those described in this Section as not outstanding. Subject to
Section 11.06, a Security does not cease to be outstanding
because the Company or an Affiliate of the Company holds the
Security.
If
a Security is replaced pursuant to Section 2.07, it ceases to
be outstanding unless the Trustee and the Company receive proof
satisfactory to them that the replaced Security is held by a
bona fide purchaser.
If
the Paying Agent segregates and holds in trust, in accordance with
this Indenture, on a redemption date or maturity date money
sufficient to pay all principal and interest payable on that date
with respect to the Securities (or portions thereof) to be redeemed
or maturing, as the case may be, then on and after that date such
Securities (or portions thereof) cease to be outstanding and
interest on them ceases to accrue.
SECTION
2.09. Temporary Securities . Until definitive Securities are
ready for delivery, the Company may prepare and the Trustee shall
authenticate temporary Securities. Temporary Securities shall be
substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary
Securities. Without unreasonable delay, the Company shall prepare
and the Trustee shall authenticate definitive Securities and
deliver them in exchange for temporary Securities upon surrender of
such temporary Securities at the office or agency of the Company,
without charge to the Holder.
SECTION
2.10. Cancellation . The Company at any time may deliver
Securities to the Trustee for cancellation. The Registrar and the
Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or
payment. The Trustee and no one else shall cancel and destroy
(subject to the record retention requirements of the Exchange Act)
all Securities surrendered for registration of transfer, exchange,
payment or cancellation and deliver a certificate of such
destruction to the Company. The Company may not issue new
Securities to replace Securities it has redeemed, paid or delivered
to the Trustee for cancellation. The Trustee shall not authenticate
Securities in place of cancelled Securities other than pursuant to
the terms of this Indenture.
SECTION
2.11. Defaulted Interest . If the Company defaults in a
payment of interest on the Securities, the Company shall pay
defaulted interest (plus interest on such defaulted interest to the
extent lawful) in any lawful manner. The Company may pay the
defaulted interest to the persons who are Holders on a subsequent
special record date. The Company shall fix or cause to be fixed any
such special record date and payment date to the reasonable
satisfaction of the Trustee and shall promptly mail or cause to be
mailed to each Holder a notice that states the special record date,
the payment date and the amount of defaulted interest to be
paid.
SECTION
2.12. CUSIP Numbers and ISINs . The Company in issuing the
Securities may use “CUSIP” numbers and ISINs (if then
generally in use) and, if so,
39
the Trustee
shall use “CUSIP” numbers and ISINs in notices of
redemption as a convenience to Holders; provided ,
however , that any such notice may state that no
representation is made as to the correctness of such numbers either
as printed on the Securities or as contained in any notice of a
redemption and that reliance may be placed only on the other
identification numbers printed on the Securities, and any such
redemption shall not be affected by any defect in or omission of
such numbers.
SECTION
2.13. Issuance of Additional Securities . After the Closing
Date, the Company shall be entitled, subject to its compliance, at
the time of and after giving effect to such issuance, with
Section 4.03 and Section 4.09, to issue Additional
Securities under this Indenture, which Securities shall have
identical terms as the Securities issued on the Closing Date, other
than with respect to the date of issuance and issue price; provided
that any such Additional Securities will be treated, for U.S.
federal income tax purposes, as fungible with the Securities. All
the Securities issued under this Indenture (including any
Additional Securities) shall be treated as a single class for all
purposes of this Indenture, including in respect of any amendment,
waiver, other modification or optional redemption by the
Company.
With
respect to any Additional Securities, the Company shall set forth
in an Officers’ Certificate, a copy of which shall be
delivered to the Trustee (along with a copy of the resolutions of
the Board of Directors authorizing the Additional Securities), the
following information:
(1) the aggregate
principal amount of such Additional Securities to be authenticated
and delivered pursuant to this Indenture and the provision of
Section 4.03 that the Company is relying on to issue such
Additional Securities; and
(2) the issue
price, the issue date, the CUSIP number and ISIN of such Additional
Securities.
SECTION
3.01. Notices to Trustee. If the Company elects to redeem
Securities pursuant to paragraph 6 of the Securities, it shall
notify the Trustee in writing of the redemption date, the principal
amount of Securities to be redeemed and the paragraph of the
Securities pursuant to which the redemption will occur.
The
Company shall give each notice to the Trustee provided for in this
Section at least 45 days before the redemption date unless the
Trustee consents to a shorter period. Such notice shall be
accompanied by an Officers’ Certificate to the effect that
such redemption will comply with the conditions herein. Any such
notice may be cancelled by the Company at any time prior to notice
of such redemption being
40
mailed to any
Holder and shall thereby be void and of no effect unless the
Trustee has sent the notice of redemption pursuant to
Section 3.03 below.
SECTION
3.02. Selection of Securities to Be Redeemed . If fewer than
all the Securities are to be redeemed, the Trustee, subject to the
procedures of DTC, shall select the Securities to be redeemed pro
rata or by lot or by a method that complies with applicable legal
and securities exchange requirements, if any, and that the Trustee
in its sole discretion shall deem to be fair and appropriate. The
Trustee shall make the selection from outstanding Securities not
previously called for redemption. The Trustee may select for
redemption portions of the principal amount of Securities that have
denominations larger than $1,000. Securities and portions of them
the Trustee selects shall be in principal amounts of $1,000 or a
whole multiple of $1,000 in excess thereof. Provisions of this
Indenture that apply to Securities called for redemption also apply
to portions of Securities called for redemption. The Trustee shall
notify the Company promptly of the Securities or portions of
Securities to be redeemed.
SECTION
3.03. Notice of Redemption . At least 30 days but not
more than 60 days before a date for redemption of Securities,
the Company, or the Trustee (at the direction of the Company),
shall mail a notice of redemption by first-class mail to each
Holder of Securities to be redeemed at such Holder’s
registered address.
The
notice shall identify the Securities to be redeemed and shall
state:
(2) the redemption
price;
(3) the name and
address of the Paying Agent;
(4) that
Securities called for redemption must be surrendered to the Paying
Agent to collect the redemption price;
(5) if fewer than
all the outstanding Securities are to be redeemed, the
identification and principal amounts of the particular Securities
to be redeemed;
(6) that, unless
the Company defaults in making such redemption payment, interest on
Securities (or portion thereof) called for redemption ceases to
accrue on and after the redemption date; and
(7) that no
representation is made as to the correctness or accuracy of the
CUSIP number or ISIN, if any, listed in such notice or printed on
the Securities.
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