the GUARANTORS party
hereto
THE BANK OF NEW YORK
MELLON,
as Trustee and Second Lien
Collateral Agent
Dated as of
September , 2009
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Page
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ARTICLE 1 DEFINITIONS AND OTHER PROVISIONS OF
GENERAL APPLICATION
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1
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1
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Section 1.02 Other
Definitions
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27
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Section 1.03 Rules of
Construction
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27
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Section 1.04 Incorporation by Reference
of TIA
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28
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Section 1.05 Conflict with
TIA
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28
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Section 1.06 Compliance Certificates and
Opinions
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29
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Section 1.07 Form of Documents Delivered
to Trustee
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29
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Section 1.08 Acts of Holders; Record
Dates
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30
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Section 1.09 Notices, Etc., to Trustee
and Company
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32
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Section 1.10 Notices to Holders;
Waivers
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32
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Section 1.11 Effect of Headings and
Table of Contents
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33
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Section 1.12 Successors and
Assigns
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33
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Section 1.13 Severability
Clause
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33
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Section 1.14 Benefits of
Indenture
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33
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Section 1.15 Governing
Law
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33
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Section 1.16 Legal
Holidays
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33
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Section 1.17 No Liability of Directors,
Officers, Employees, Incorporators, Members and
Stockholders
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34
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Section 1.18 Exhibits and
Schedules
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34
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Section 1.19 Counterparts
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34
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Section 1.20 Waiver of Jury
Trial
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34
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Section 1.21 Force
Majeure
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34
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34
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Section 2.01 Forms Generally;
Legends
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34
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Section 2.02 Form of Trustee’s
Certificate of Authentication
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36
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36
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Section 3.01 Title and
Terms
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36
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Section 3.02
Denominations
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37
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Section 3.03 Execution, Authentication
and Delivery and Dating
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38
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Section 3.04 Temporary
Notes
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39
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Section 3.05 Registration, Registration
of Transfer and Exchange
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39
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Section 3.06 Mutilated, Destroyed, Lost
and Stolen Notes
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40
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Section 3.07 Payment of Interest Rights
Preserved
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41
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Section 3.08 Persons Deemed
Owners
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42
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Section 3.09 Cancellation
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42
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Section 3.10 Computation of
Interest
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42
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Section 3.11 CUSIP
Numbers
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42
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-i-
TABLE OF CONTENTS
(Continued)
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Page
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Section 3.12 Book-entry Provisions for
Global Notes
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42
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Section 3.13 Restrictions on Transfer
and Exchange
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44
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Section 3.14 Deposit of
Moneys
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45
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45
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Section 4.01 Payment of Principal,
Premium and Interest
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45
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Section 4.02 Maintenance of Office or
Agency
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46
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Section 4.03 Money for Payments to Be
Held in Trust
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46
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47
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Section 4.05 Certificates to
Trustee
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48
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Section 4.06 Limitation on Debt and
Disqualified or Preferred Stock
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48
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Section 4.07 Limitation on Restricted
Payments
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52
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Section 4.08 Limitation on Dividend and
other Payment Restrictions Affecting Restricted
Subsidiaries
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55
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Section 4.09 Limitation on Sales of
Assets
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58
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Section 4.10 Limitation on Affiliate
Transactions
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59
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Section 4.11 Limitation on
Liens
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61
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Section 4.12 Repurchase of Notes upon a
Change in Control
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61
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Section 4.13 Limitation on Line of
Business
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62
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Section 4.14 Limited Applicability of
Covenants when Notes are Rated Investment-Grade
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62
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63
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Section 4.16 Payment of Taxes and Other
Claims
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64
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Section 4.17 Maintenance of Properties
and Insurance
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64
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Section 4.18 Additional
Guarantors
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64
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Section 4.19 Designation of Restricted
and Unrestricted Subsidiaries
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64
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ARTICLE 5 CONSOLIDATION, MERGER OR SALE OF
ASSETS
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66
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Section 5.01 Consolidation, Merger or
Sale of Assets by the Company
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66
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Section 5.02 Successor Company
Substituted
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67
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Section 5.03 Consolidation, Merger or
Sale of Assets by a Guarantor
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68
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Section 5.04 Opinion of Counsel to
Trustee
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68
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69
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Section 6.01 Events of
Default
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69
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Section 6.02 Acceleration
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70
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Section 6.03 Other
Remedies
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71
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Section 6.04 Waiver of Past
Defaults
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71
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Section 6.05 Control by
Majority
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71
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Section 6.06 Limitation on
Suits
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71
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Section 6.07 Rights of Holders to
Receive Payment
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72
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-ii-
TABLE OF CONTENTS
(Continued)
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Page
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Section 6.08 Collection Suit by
Trustee
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72
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Section 6.09 Trustee May File Proofs of
Claim
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72
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73
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Section 6.11 Undertaking for
Costs
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73
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Section 6.12 Restoration of Rights and
Remedies
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73
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Section 6.13 Rights and Remedies
Cumulative
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74
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Section 6.14 Waiver of Stay, Extension
or Usury Laws
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74
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74
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Section 7.01 Certain Duties and
Responsibilities
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74
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Section 7.02 Notice of
Defaults
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75
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Section 7.03 Certain Rights of
Trustee
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75
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Section 7.04 Not Responsible for
Recitals or Issuance of Notes
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77
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Section 7.05 Trustee’s
Disclaimer
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77
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Section 7.06 May Hold
Notes
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77
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Section 7.07 Money Held in
Trust
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77
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Section 7.08 Compensation and
Reimbursement
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77
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Section 7.09 Conflicting
Interests
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78
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Section 7.10 Corporate Trustee Required;
Eligibility
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78
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Section 7.11 Resignation and Removal;
Appointment of Successor
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79
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Section 7.12 Acceptance of Appointment
by Successor
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80
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Section 7.13 Merger, Conversion,
Consolidation or Succession to Business
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80
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Section 7.14 Preferential Collection of
Claims Against the Company
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81
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Section 7.15 Appointment of
Authenticating Agent
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81
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ARTICLE 8 HOLDERS’ LIST AND REPORTS BY
TRUSTEE AND THE COMPANY
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81
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Section 8.01 The Company to Furnish
Trustee Names and Addresses of Holders; Stock Exchange
Listing
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81
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Section 8.02 Preservation of
Information; Communications to Holders
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81
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Section 8.03 Reports by
Trustee
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82
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ARTICLE 9 AMENDMENT, SUPPLEMENT OR
WAIVER
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82
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Section 9.01 Without Consent of the
Holders
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82
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Section 9.02 With Consent of
Holders
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83
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Section 9.03 Execution of Amendments,
Supplements or Waivers
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84
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Section 9.04 Revocation and Effect of
Consents
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84
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Section 9.05 Conformity with
TIA
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85
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Section 9.06 Notation on or Exchange of
Notes
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85
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ARTICLE 10 REDEMPTION OF NOTES
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85
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Section 10.01 Right of
Redemption
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85
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-iii-
TABLE OF CONTENTS
(Continued)
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Page
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Section 10.02 Applicability of
Article
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86
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Section 10.03 Election to Redeem; Notice
to Trustee
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86
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Section 10.04 Selection by Trustee of
Notes to Be Redeemed
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86
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Section 10.05 Notice of
Redemption
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87
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Section 10.06 Deposit of Redemption
Price
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88
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Section 10.07 Notes Payable on
Redemption Date
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88
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Section 10.08 Notes Redeemed in
Part
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89
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ARTICLE 11 SATISFACTION AND DISCHARGE
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89
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Section 11.01 Satisfaction and Discharge
of Indenture
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89
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Section 11.02 Application of Trust
Money
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90
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ARTICLE 12 DEFEASANCE AND COVENANT
DEFEASANCE
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90
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Section 12.01 Option of the Company to
Effect Defeasance or Covenant Defeasance
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90
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Section 12.02 Legal Defeasance and
Discharge
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90
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Section 12.03 Covenant
Defeasance
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91
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Section 12.04 Conditions to Legal or
Covenant Defeasance
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91
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Section 12.05 Deposited Money and
Government Securities to Be Held in Trust; Other Miscellaneous
Provisions
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93
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Section 12.06 Repayment to
Company
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93
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Section 12.07
Reinstatement
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93
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ARTICLE 13 NOTE GUARANTIES
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94
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Section 13.01 The
Guarantees
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94
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Section 13.02 Guarantee
Unconditional
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94
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Section 13.03 Discharge;
Reinstatement
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95
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Section 13.04 Waiver by the
Guarantors
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95
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Section 13.05 Subrogation and
Contribution
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95
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Section 13.06 Stay of
Acceleration
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95
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Section 13.07 Limits of
Guarantees
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95
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Section 13.08 Execution and Delivery of
Note Guarantee
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96
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Section 13.09 Release of Note
Guaranties
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96
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ARTICLE 14 SECURITY INTEREST
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97
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Section 14.01 Grant of Security
Interest
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97
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Section 14.02 Release of Security
Interest
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98
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Section 14.03 Documents to be Delivered
Prior to Release of Security Interest
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99
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Section 14.04 Pledge of Additional
Collateral
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99
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Section 14.05 Amendment to Security
Agreements
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99
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Section 14.06 Confirmation of Perfection
of Second Lien Collateral Agent’s Liens
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100
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-iv-
TABLE OF CONTENTS
(Continued)
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Page
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Section 14.07 Second Lien Collateral
Agent
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100
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Section 14.08 Replacement of Second Lien
Collateral Agent
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100
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EXHIBIT
B Form
of Supplemental Indenture
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EXHIBIT
C Restricted
Legend
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EXHIBIT
F Second
Lien Legend
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EXHIBIT
G Rule 144A
Certificate
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-v-
INDENTURE, dated
as of September , 2009 (as amended,
supplemented or otherwise modified from time to time, this “
Indenture ”), among EASTMAN KODAK COMPANY, a New
Jersey corporation (as further defined herein, the “
Company ”), the Guarantors party hereto and The Bank
of New York Mellon, as trustee ( in such capacity, the
“Trustee”) and as collateral agent (in such
capacity, the “ Second Lien Collateral Agent
”).
The Company and
the Guarantors have duly authorized the execution and delivery of
this Indenture to provide for the issuance of $
,000,000 aggregate principal amount,
such amount to be increased upon the payment of PIK Interest (as
defined below), of % Senior
Notes due 2017 of the Company (the “ Notes ”),
guaranteed to the extent provided herein and in the Notes by the
Guarantors. All things necessary to make the Notes, when duly
issued, executed and delivered by the Company and authenticated and
delivered by the Trustee hereunder, the valid and legally binding
obligation of the Company, and to make this Indenture a valid and
legally binding agreement of the Company and the Guarantors as of
the date hereof, in accordance with the terms of the Notes and this
Indenture, have been done.
NOW,
THEREFORE, THIS INDENTURE WITNESSETH :
For and in
consideration of the premises and the purchase of the Notes by the
Holders (as defined herein) thereof, it is mutually agreed, for the
equal and ratable benefit of all Holders, as follows:
DEFINITIONS AND OTHER PROVISIONS OF
GENERAL APPLICATION
Section 1.01
Definitions.
“
Acquired Debt ” means Debt of a Person existing at the
time the Person merges with or into or becomes a Restricted
Subsidiary and not Incurred in connection with, or in contemplation
of, the Person merging with or into or becoming a Restricted
Subsidiary.
“
Additional Assets ” means any long-term assets or
other assets or inventory that are useful or to be used in a
Permitted Business.
“
Affiliate ” means, with respect to any Person, any
other Person directly or indirectly controlling, controlled by, or
under direct or indirect common control with, such Person. For
purposes of this definition, “control” (including, with
correlative meanings, the terms “controlling,”
“controlled by” and “under common control
with”) with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or
otherwise.
-1-
“ Asset
Sale ” means any sale, lease, transfer or other
disposition (including a Sale and Leaseback Transaction) of any
assets by the Company or any Restricted Subsidiary, including by
means of a merger, consolidation or similar transaction and
including any sale or issuance of the Equity Interests of any
Restricted Subsidiary (each of the above referred to as a “
disposition ”), provided that the following are not
included in the definition of “Asset Sale”:
(1) a
disposition to the Company or a Restricted Subsidiary, including
the sale or issuance by the Company or any Restricted Subsidiary of
any Equity Interests of any Restricted Subsidiary to the Company or
any Restricted Subsidiary;
(2) the
disposition by the Company or any Restricted Subsidiary in the
ordinary course of business of (i) cash and Cash Equivalents,
(ii) inventory and other assets acquired and held for resale
in the ordinary course of business, (iii) damaged, worn out,
surplus or obsolete assets, or (iv) rights granted to others
pursuant to leases or licenses (including licenses or sublicenses
of intellectual property);
(3) the
sale or discount of accounts receivable arising in the ordinary
course of business in connection with the compromise or collection
thereof;
(4) a
transaction subject to Article 5;
(5) a
Restricted Payment permitted under Section 4.07 or a Permitted
Investment and any disposition thereof;
(6) the
issuance of Disqualified or Preferred Stock pursuant to
Section 4.06;
(7) dispositions
of accounts receivable and related assets by or to a Securitization
Subsidiary in connection with a Permitted Receivables
Financing;
(8) any
disposition in a transaction or series of related transactions of
assets with a Fair Market Value of less than
$25,000,000;
(9) any
Event of Loss; provided that the Net Cash Proceeds in
respect thereof shall be deemed Net Cash Proceeds of an Asset Sale
for purposes of Section 4.09 to the extent that the Net Cash
Proceeds of such Event of Loss exceed $25,000,000;
(10) the
granting of any option or other right to purchase, lease or
otherwise acquire inventory in the ordinary course of
business;
(11) the
issuance of Equity Interests of Restricted Subsidiaries that are
directors’ qualifying shares or local ownership
shares;
(12) the
creation of any Lien permitted by this Indenture;
-2-
(13) the
settlement, waiver, release or surrender of claims or litigation
rights of any kind (including any settlement with respect to claims
involving intellectual property rights); and
(14) any
sale of property to the lessor thereof in connection with a Capital
Lease.
“
Authenticating Agent ” means any Person authorized by
the Trustee pursuant to Section 7.15 to act on behalf of the
Trustee to authenticate Notes of one or more series.
“ Average
Life ” means, with respect to any Debt, the quotient
obtained by dividing (i) the sum of the products of
(x) the number of years from the date of determination to the
dates of each successive scheduled principal payment of such Debt
and (y) the amount of such principal payment by (ii) the
sum of all such principal payments. For purposes of this
definition, a principal payment will be deemed to be scheduled on
the first date on which holders of such Debt could cause such Debt
to be mandatorily redeemed or repurchased.
“ Board
of Directors ” means:
(a) with
respect to a corporation, the board of the directors of the
corporation or a duly authorized committee thereof;
(b) with
respect to a partnership, the board of directors of the general
partner or a duly authorized committee of such partnership or
general partner serving a similar function; and
(c) with
respect to any other Person, the board or committee of such Person
serving a similar function.
“
Borrowing Base Amount ” means the average of the sums
of (a) 85% of the net book value of the accounts receivable of
the Company and its Domestic Restricted Subsidiaries plus
(b) 65% of the net book value of the inventory of the Company
and its Restricted Subsidiaries that is located in the United
States of America plus (c) 25% of the net book value of the
real property of the Company and its Restricted Subsidiaries that
is located in the United States of America plus (d) 25% of the
net book value of the equipment of the Company and its Restricted
Subsidiaries that is located in the United States of America as of
the last day of each of the four most recently completed fiscal
quarters of the Company, in each case calculated on a pro forma
basis to give effect to any acquisition or disposition of a Person,
division or line of business subsequent thereto and prior to the
date of determination.
“
Business Day ” means any day except a Saturday, Sunday
or other day on which commercial banks in The City of New York are
authorized by law to close.
“ Capital
Lease ” means, with respect to any Person, any lease of
any property which, in conformity with GAAP, is required to be
capitalized on the balance sheet of such Person.
“ Capital
Stock ” means, with respect to any Person, any and all
shares of stock of a corporation, partnership interests or other
equivalent interests (however designated, whether voting
-3-
or non-voting)
in such Person’s equity, entitling the holder to receive a
share of the profits and losses, and a distribution of assets,
after liabilities, of such Person.
“ Cash
Equivalents ” means
(1) United
States dollars, or money in other currencies;
(2) U.S.
Government Obligations, or certificates representing an ownership
interest in U.S. Government Obligations, with maturities not
exceeding one year from the date of acquisition;
(3)
(i) demand deposits, (ii) time deposits and certificates
of deposit with maturities of one year or less from the date of
acquisition, (iii) bankers’ acceptances with maturities
not exceeding one year from the date of acquisition, and
(iv) overnight bank deposits, in each case with any bank or
trust company organized or licensed under the laws of the United
States of America or any state thereof having capital, surplus and
undivided profits in excess of $500 million whose short-term
debt is rated “A-2” (or the then equivalent grade) or
higher by S&P or “P-2” (or the then equivalent
grade) or higher by Moody’s;
(4) repurchase
obligations with a term of not more than seven days for underlying
securities of the type described in clauses (2) and
(3) above entered into with any financial institution meeting
the qualifications specified in clause (3) above;
(5) commercial
paper rated at least P-1 (or the then equivalent grade) by
Moody’s or A-1 (or the then equivalent grade) by S&P and
maturing within 270 days after the date of
acquisition;
(6) money
market funds at least 95% of the assets of which consist of
investments of the type described in clauses (1) through
(5) above and (7) below; and
(7) substantially
similar investments, of comparable credit quality, denominated in
the currency of any jurisdiction in which the Company or any of its
Subsidiaries conducts business.
“ CFC
” means a “controlled foreign corporation” as
defined in the Code.
“ Change
of Control ” means:
(1) 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 and its
Subsidiaries, taken as a whole, to another Person, unless holders
of the Voting Stock of the Company, immediately prior to such
transaction, hold securities of the surviving or transferee Person
that represent, immediately after such transaction, at least a
majority of the aggregate voting power of the Voting Stock of the
surviving Person;
-4-
(2) any
“person” or “group” (as such terms are used
for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or
becomes the “beneficial owner” (as such term is used in
Rules 13d-3 under the Exchange Act), directly or indirectly,
of more than 50% of the total voting power of the Voting Stock of
the Company; or
(3) the
adoption of a plan relating to the liquidation or dissolution of
the Company.
“
Code ” means the Internal Revenue Code of 1986, as
amended.
“
Collateral ” means, collectively, all assets or
property (including Equity Interests) in which Liens are purported
to be granted pursuant to the Security Agreements as security for
the obligations of the Company and the Guarantors under the Notes
and the Note Guaranties.
“
Company ” means Eastman Kodak Company, a New Jersey
corporation, and any successor in interest thereto.
“ Company
Request ,” “ Company Order ” and
“ Company Consent ” mean, respectively, a
written request, order or consent signed in the name of the Company
by an Officer of the Company.
“
Consolidated Net Income ” means, for any period, the
aggregate net income (or loss) of the Company and its Restricted
Subsidiaries for such period determined on a consolidated basis in
conformity with GAAP, provided that the following (without
duplication) will be excluded in computing Consolidated Net
Income:
(1) the
net income (but not loss) of any Person that is not a Restricted
Subsidiary, except to the extent of the lesser of
(x) the
dividends or other distributions actually paid in cash to the
Company or any of its Restricted Subsidiaries (subject to clause
(3) below) by such Person during such period, and
(y) the
Company’s pro rata share of such Person’s net income
earned during such period;
(2) any
net income (or loss) of any Person acquired in a pooling of
interests transaction for any period prior to the date of such
acquisition;
(3) the
net income (but not loss) of any Restricted Subsidiary to the
extent that the declaration or payment of dividends or similar
distributions by such Restricted Subsidiary of such net income
would not have been permitted for the relevant period by charter or
by any agreement, instrument, judgment, decree, order, statute,
rule or governmental regulation applicable to such Restricted
Subsidiary;
(4) any
net after-tax extraordinary gains or extraordinary non-cash losses;
and
-5-
(5) any
non cash goodwill impairment charges.
In calculating the
aggregate net income (or loss) of the Company and its Restricted
Subsidiaries on a consolidated basis, income attributable to
Unrestricted Subsidiaries will be excluded altogether.
“
Corporate Trust Office ” means the principal office of
the Trustee, at which at any particular time its corporate trust
business shall be administered, which office on the Issue Date is
located at 101 Barclay Street, 8W, New York, New York, 10286,
Attention: Corporation Trust Administration, or such other address
as the Trustee may designate from time to time by notice to the
Holders and the Company, or the principal corporate trust office of
any successor Trustee (or such other address as such successor
Trustee may designate from time to time by notice to the Holders
and the Company).
“ Credit
Agreement ” means the amended and restated credit
agreement, dated as of March 31, 2009, among the Company,
Kodak Canada, Inc., the lenders party thereto, Citicorp USA, Inc.,
as agent, and the other agents an arrangers party thereto, together
with any related documents (including any security documents and
guarantee agreements), as such agreement or related documents may
be amended, restated, modified, supplemented, extended, renewed,
refinanced or replaced or substituted from time to time.
“ Credit
Facilities ” means one or more (i) credit agreements
(including the Credit Agreement) or debt facilities to which the
Company and/or one or more of its Restricted Subsidiaries is party
from time to time, in each case with banks, investment banks,
insurance companies, mutual funds, institutional investors or any
other lenders or (ii) indentures, in each case, providing for
revolving credit loans, term loans, debt securities, bankers
acceptances, receivables financing (including through the sale of
receivables to such lenders or to special purpose entities formed
to borrow from such lenders against such receivables), swing-line
or commercial paper or letters of credit or note facilities, in
each case as such agreements or facilities may be amended,
restated, modified or supplemented from time to time, including any
agreement refinancing the Credit Agreement, whether in the bank or
debt capital markets or otherwise (or combination thereof)
(including increasing the amount of available borrowings thereunder
or adding Subsidiaries as additional borrowers or guarantors
thereunder).
“ Credit
Facility Agent ” means the agent under the Credit
Agreement and any other collateral agent for any First-Priority
Lien Obligations.
“
Debt ” means, with respect to any Person, without
duplication,
(1) all
indebtedness of such Person for borrowed money;
(2) all
obligations of such Person evidenced by bonds, debentures, notes or
other similar instruments;
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(3) all
obligations of such Person in respect of letters of credit,
bankers’ acceptances or other similar instruments, excluding
obligations in respect of trade letters of credit, bankers’
acceptances or similar instruments issued in respect of trade
payables to the extent not drawn upon or presented, or, if drawn
upon or presented, the resulting obligation of the Person is paid
within 10 Business Days;
(4) all
obligations of such Person to pay the deferred and unpaid purchase
price of property or services which are recorded as liabilities
under GAAP, excluding accounts payable arising in the ordinary
course of business;
(5) all
obligations of such Person as lessee under Capital
Leases;
(6) all
Debt of other Persons Guaranteed by such Person to the extent so
Guaranteed;
(7) all
Debt of other Persons secured by a Lien on any asset of such
Person, whether or not such Debt is assumed by such
Person;
(8) the
amount of all Permitted Receivables Financings of such Person;
and
(9) all
obligations of such Person under Hedging Agreements,
if and only to the
extent, the items (other than letters of credit and obligations
referred to in clauses (5), (6), (7), (8) and (9) above)
would appear as a liability on a balance sheet in accordance with
GAAP.
The amount of Debt
of any Person will be deemed to be:
(A) with
respect to contingent obligations, the maximum liability upon the
occurrence of the contingency giving rise to the
obligation;
(B) with
respect to Debt secured by a Lien on an asset of such Person but
not otherwise the obligation, contingent or otherwise, of such
Person, the lesser of (x) the Fair Market Value of such asset
on the date the Lien attached and (y) the amount of such
Debt;
(C) with
respect to any Debt issued with original issue discount, the face
amount of such Debt less the remaining unamortized portion of the
original issue discount of such Debt;
(D) with
respect to any Hedging Agreement, the net amount payable if such
Hedging Agreement terminated at that time due to default by such
Person;
(E) with
respect to any Permitted Receivables Financing, (1) the
aggregate principal or stated amount of the Debt, fractional
undivided interests (which stated amount may be described as a
“net investment” or similar term reflecting the amount
invested in such undivided interest) or other securities incurred
or issued pursuant to such Permitted Receivables Financing,
in
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each case
outstanding at such time, or (2) in the case of any Permitted
Receivables Financing in respect of which no such Debt, fractional
undivided interests or securities are incurred or issued, the cash
purchase price paid by the buyer (other than any Securitization
Subsidiary) in connection with its purchase of Receivables less the
amount of collections received by the Company or any Subsidiary in
respect of such Receivables and paid to such buyer, excluding any
amounts applied to purchase fees or discount or in the nature of
interest; and
(F) otherwise,
the outstanding principal amount thereof.
In no event shall
the term “Debt” include (a) any indebtedness under
any overdraft or cash management facilities so long as any such
indebtedness is repaid in full no later than five business days
following the date on which it was incurred or in the case of such
indebtedness in respect of credit or purchase cards, within
60 days of its incurrence, (b) obligations in respect of
performance, appeal or other surety bonds or completion guarantees
or in respect of reimbursement obligations for undrawn letters of
credit, bankers’ guarantees or bankers’ acceptances
(whether or not secured by a lien), each incurred in the ordinary
course of business and not as a part of a financing transaction,
(c) any liability for Federal, state, local or other taxes,
(d) any balances that constitute accrued expenses, accounts
payable or trade payables in the ordinary course of business,
(e) any obligations in respect of a lease properly classified
as an operating lease in accordance with GAAP, or (f) any
customer deposits or advance payments received in the ordinary
course of business.
“
Default ” means any event that is, or after notice or
passage of time or both would be, an Event of Default.
“
Depositary ” means The Depository Trust Company, its
nominees and successors.
“
Designated Non-Cash Consideration ” means
consideration which is not cash or Cash Equivalents received by the
Company or a Restricted Subsidiary or not received by the Company
at closing in connection with an Asset Sale that is so designated
as Designated Non-Cash Consideration by the Company, setting forth
the Fair Market Value thereof as determined in good faith by the
Company and the basis of such calculation.
“
Designated Subsidiary ” means any Subsidiary engaged
in a material portion of the Company’s Graphic Communications
Group’s prepress solutions business, or document imaging
solutions business or commercial ink jet business, or the
Company’s Consumer Digital Imaging Group’s retail
systems solutions (RSS) business or all-in-one inkjet
business, or that owns intellectual property of the Company that is
material to the Company and its Subsidiaries taken as a
whole.
“
Disqualified Equity Interests ” means Equity Interests
that by their terms or upon the happening of any event
are
(1) required
to be redeemed or redeemable at the option of the holder prior to
the Stated Maturity of the notes for consideration other than
Qualified Equity Interests, or
-8-
(2) convertible
at the option of the holder into Disqualified Equity Interests or
exchangeable for Debt;
provided that Equity Interests will not constitute
Disqualified Equity Interests solely because of provisions giving
holders thereof the right to require repurchase or redemption upon
an Asset Sale or Change of Control occurring prior to the Stated
Maturity of the notes if those provisions specifically state that
repurchase or redemption pursuant thereto will not be required
prior to the Company’s repurchase of the notes as required by
this Indenture.
“
Disqualified Stock ” means Capital Stock constituting
Disqualified Equity Interests.
“
Domestic Restricted Subsidiary ” means any Domestic
Subsidiary that is a Restricted Subsidiary.
“
Domestic Subsidiary ” means any Subsidiary formed
under the laws of the United States of America or any jurisdiction
thereof.
“ DTC
Legend ” means the legend set forth in
Exhibit D.
“
EBITDA ” means, for any period, the sum of
(1) Consolidated
Net Income, plus
(2) Fixed
Charges, to the extent deducted in calculating Consolidated Net
Income, plus
(3) to
the extent deducted in calculating Consolidated Net Income and as
determined on a consolidated basis for the Company and its
Restricted Subsidiaries in conformity with GAAP and without
duplication:
(A) income
taxes, other than income taxes or income tax adjustments (whether
positive or negative) attributable to extraordinary gains or
losses; and
(B) depreciation,
amortization and all other non-cash items reducing Consolidated Net
Income (other than any such non-cash items in a period which
reflect cash payments made or to be made in another period), less
all non-cash items increasing Consolidated Net Income (other than
any such non-cash items in a period that will result in a cash
receipt or a reduction in a cash payment in another period);
plus
(4) without
duplication, net after-tax non-recurring losses (minus any net
after-tax non-recurring gains), to the extent reducing Consolidated
Net Income, plus
(5) without
duplication, the amount of any restructuring charges deducted (and
not added back) in such period in computing Consolidated Net
Income.
-9-
“ Equal
and Ratable Assets ” means, collectively, (i) each
Principal Property and (ii) all Equity Interests and all
indebtedness of each “Restricted Subsidiary” as defined
in the 1988 Indenture; provided , in each case, that any
such asset shall constitute an “Equal and Ratable
Asset” only for so long as, and to the extent that, the
granting of a security interest in or a Lien thereon would trigger
an obligation on the part of the Company or any Subsidiary,
pursuant to Section 1010 of the 1988 Indenture as in effect on
the Issue Date, to equally and ratably secure any securities issued
pursuant to the 1988 Indenture that are subject to the provisions
of such section.
“ Equity
Interests ” means all Capital Stock and all warrants or
options with respect to, or other rights to purchase, Capital
Stock, but excluding Debt convertible into equity.
“ Equity
Offering ” means an offering, after the Issue Date, of
Qualified Stock of the Company pursuant to an effective
registration statement under the Securities Act or pursuant to a
transaction exempt from the registration requirements of the
Security Act, other than an issuance registered on Form S-4 or S-8
or any successor thereto or any issuance pursuant to employee
benefit plans or otherwise in compensation to officers, directors
or employees.
“ Event
of Loss ” means, with respect to any property or asset
(tangible or intangible, real or personal), any of the
following:
(1) any
loss, destruction or damage of such property or asset;
(2) any
institution of any proceeding for the condemnation or seizure of
such property or asset or for the exercise of any right of eminent
domain;
(3) any
actual condemnation, seizure or taking by exercise of the power of
eminent domain or otherwise of such property or asset, or
confiscation of such property or asset or the requisition of the
use of such property or asset; or
(4) any
settlement in lieu of the matters described in clauses (2) or
(3) above.
“
Exchange Act ” means the Securities Exchange Act of
1934, as amended.
“
Excluded Property ” has the meaning given to such term
in the Security Agreement entered into on the Issue
Date.
“
Excluded Subsidiary ” means (i) any Immaterial
Subsidiary, (ii) any Subsidiary of a Foreign Subsidiary,
(iii) any Principal Property Subsidiary, and (iv) any
Securitization Subsidiary.
“ Fair
Market Value ” means the value that would be paid by a
willing buyer to an unaffiliated willing seller in a transaction
not involving distress or necessity of either party, determined in
good faith by the Company (unless otherwise provided in this
Indenture).
“
First-Priority Lien Obligations ” has the meaning
assigned to such term in clause (2) under “Permitted
Liens.”
-10-
“ Fixed
Charge Coverage Ratio ” means, on any date (the “
transaction date ”), the ratio of
(x) the
aggregate amount of EBITDA for the four fiscal quarters immediately
prior to the transaction date for which internal financial
statements are available (the “ reference period
”) to
(y) the
aggregate Fixed Charges during such reference period, excluding
amortization of debt issuance costs and any other non-cash interest
expense.
In making the
foregoing calculation,
(1) pro
forma effect will be given to any Debt, Disqualified Stock or
Preferred Stock Incurred during or after the reference period to
the extent the Debt, Disqualified Stock or Preferred Stock is
outstanding or is to be Incurred on the transaction date as if the
Debt, Disqualified Stock or Preferred Stock had been Incurred on
the first day of the reference period;
(2) pro
forma calculations of interest on Debt bearing a floating interest
rate will be made as if the rate in effect on the transaction date
(taking into account any Hedging Agreement applicable to the Debt
if the Hedging Agreement has a remaining term of at least
12 months) had been the applicable rate for the entire
reference period;
(3) Fixed
Charges related to any Debt, Disqualified Stock or Preferred Stock
no longer outstanding or to be repaid or redeemed on the
transaction date, except for Consolidated Interest Expense accrued
during the reference period under a revolving credit to the extent
of the commitment thereunder (or under any successor revolving
credit) in effect on the transaction date, will be
excluded;
(4) pro
forma effect will be given to
(A) the
creation, designation or redesignation of Restricted and
Unrestricted Subsidiaries,
(B) the
acquisition or disposition of companies, divisions or lines of
businesses by the Company and its Restricted Subsidiaries,
including any acquisition or disposition of a company, division or
line of business since the beginning of the reference period by a
Person that became a Restricted Subsidiary after the beginning of
the reference period, and
(C) the
discontinuation of any discontinued operations but, in the case of
Fixed Charges, only to the extent that the obligations giving rise
to the Fixed Charges will not be obligations of the Company or any
Restricted Subsidiary following the transaction date
that have
occurred since the beginning of the reference period as if such
events had occurred, and, in the case of any disposition, the
proceeds thereof applied, on the first day of the reference period.
To the extent that pro forma effect is to be given to an
acquisition or disposition of a company, division
-11-
or line of
business, the pro forma calculation will be based upon the most
recent four full fiscal quarters for which the relevant financial
information is available.
“ Fixed
Charges ” means, for any period, the sum of
(1) Interest
Expense for such period; and
(x)
(i) cash and non-cash dividends paid on any Disqualified Stock
or Preferred Stock of the Company or a Restricted Subsidiary plus
(ii) without duplication, declared, accrued or accumulated on
any Disqualified Stock of the Company or a Restricted Subsidiary,
in each case except for dividends payable in the Company’s
Qualified Stock or paid to the Company or to a Restricted
Subsidiary, and
(y) a
fraction, the numerator of which is one and the denominator of
which is one minus the sum of the currently effective combined
Federal, state, local and foreign tax rate applicable to the
Company and its Restricted Subsidiaries.
“ Foreign
Restricted Subsidiary ” means any Restricted Subsidiary
that is a Foreign Subsidiary.
“ Foreign
Subsidiary ” means a Subsidiary that is a CFC or a
Subsidiary all or substantially all of the assets of which are
Foreign Subsidiaries, and any Subsidiary which would be a CFC
except for any alternate classification under Treasury
Regulation 301.7701-3, or any successor provisions to the
foregoing.
“
GAAP ” means generally accepted accounting principles
in the United States of America as in effect as of the Issue Date
and, except as otherwise specifically provided for herein, all
calculations made for purposes of determining compliance with the
terms of the provisions of this Indenture shall utilize GAAP as in
effect on such date.
“
Guarantee ” means any obligation, contingent or
otherwise, of any Person directly or indirectly guaranteeing any
Debt or other obligation of any other Person and, without limiting
the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of such Person (i) to
purchase or pay (or advance or supply funds for the purchase or
payment of) such Debt or other obligation 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 (ii) entered into for purposes of
assuring in any other manner the obligee of such Debt or other
obligation of the payment thereof or to protect such obligee
against loss in respect thereof, in whole or in part;
provided that the term “Guarantee” does not
include endorsements for collection or deposit in the ordinary
course of business. The term “Guarantee” used as a verb
has a corresponding meaning.
-12-
“
Guarantor ” means (i) each Wholly-Owned Domestic
Restricted Subsidiary that Guarantees the Notes on the Issue Date
and (ii) each Wholly-Owned Domestic Restricted Subsidiary
(other than an Excluded Subsidiary).
“ Hedging
Agreement ” means (i) any interest rate swap
agreement, interest rate cap agreement, interest rate collar
agreement or other agreement designed to manage fluctuations in
interest rates or (ii) any foreign exchange forward contract,
currency swap agreement, currency option or other agreement
designed to manage fluctuations in foreign exchange rates or
(iii) any commodity or raw material futures contract,
commodity option agreement, commodity swap agreement or any other
agreement designed to manage fluctuations in commodity raw material
(as defined under the Commodity Exchange Act) prices.
“
Holder ” with respect to any Note, means the
registered holder thereof.
“
Immaterial Subsidiary ” means any Subsidiary that
(i) has not Guaranteed any other Debt of the Company or any of
its Subsidiaries (other than Permitted Credit Facility Debt) and
(ii) together with its Subsidiaries, has total assets
(determined in accordance with GAAP but excluding any intercompany
receivables from the Company or a Guarantor) of less than
$10,000,000 shown on the consolidated statement of financial
condition of the Company and its Subsidiaries, in each case as of
the as last day of the fiscal year most recently ended.
“
Incur ” means, with respect to any Debt or Capital
Stock, to incur, create, issue, assume or Guarantee such Debt or
Capital Stock. If any Person becomes a Restricted Subsidiary on any
date after the date of this Indenture (including by redesignation
of an Unrestricted Subsidiary or failure of an Unrestricted
Subsidiary to meet the qualifications necessary to remain an
Unrestricted Subsidiary), the Debt and Capital Stock of such Person
outstanding on such date will be deemed to have been Incurred by
such Person on such date for purposes of Section 4.06, but
will not be considered the sale or issuance of Equity Interests for
purposes of Section 4.09.
“
Intercreditor Agreement ” means the Intercreditor
Agreement dated on or about the Issue Date among the Second Lien
Collateral Agent, the Credit Facility Agent, the Trustee, the
Company and each Guarantor, as such agreement may be amended,
restated, supplemented or otherwise modified from time to time, and
any other Intercreditor Agreement entered into by the Second Lien
Collateral Agent (on terms not less favorable to the Holders) with
any Credit Facility Agent.
“
Interest Expense ” means, for any period, the
consolidated interest expense of the Company and its Restricted
Subsidiaries, plus, to the extent not included in such consolidated
interest expense, and to the extent incurred, accrued or payable by
the Company or its Restricted Subsidiaries, without duplication,
(i) amortization of debt discount and debt issuance costs
(other than any such amortization resulting from the issuance of
the Notes), (ii) capitalized interest, (iii) non-cash
interest expense (excluding non-cash interest expense attributable
to required marking-to-market of obligations under Hedging
Agreements or other derivative instruments in accordance with
GAAP), (iv) commissions, discounts and other fees and charges
owed with respect to letters of credit, bankers’ acceptances
and similar instruments, (v) net payments, if any, made (less
net payments, if any, received) pursuant to Hedging Agreements
(including the amortization of fees), and (vi) any
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premiums, fees,
discounts, expenses and losses on the sale of accounts receivable
(and any amortization thereof) payable by the Company or any
Restricted Subsidiary in connection with a Permitted Receivables
Financing, and any yields or other charges or other amounts
comparable to, or in the nature of, interest payable by the Company
or any Restricted Subsidiary under any Permitted Receivables
Financing, as determined on a consolidated basis and in accordance
with GAAP.
“
Interest Payment Date ” means, when used with respect
to any Note and any installment of interest thereon, the date
specified for such purpose in Section 3.01.
(1) any
advance, loan or other extension of credit to another
Person,
(2) any
capital contribution to another Person, by means of any transfer of
cash or other property or in any other form,
(3) any
purchase or acquisition of Equity Interests, bonds, notes or other
Debt, or other instruments or securities issued by another Person,
including the receipt of any of the above as consideration for the
disposition of assets or rendering of services, or
(4) any
Guarantee of any obligation of another Person.
If the Company or
any Restricted Subsidiary (x) sells or otherwise disposes of
any Equity Interests of any direct or indirect Restricted
Subsidiary so that, after giving effect to that sale or
disposition, such Person is no longer a Subsidiary of the Company,
or (y) designates any Restricted Subsidiary as an Unrestricted
Subsidiary in accordance with the provisions of this Indenture, all
remaining Investments of the Company and the Restricted
Subsidiaries in such Person shall be deemed to have been made at
such time.
“
Investment Grade ” designates a rating of BBB- or
higher by S&P or Baa3 or higher by Moody’s (or the
equivalent of such ratings from any rating agency that has been
substituted for S&P or Moody’s in accordance with the
definition of “Rating Agencies”).
“ Issue
Date ” means September ,
2009.
“
Lien ” means any mortgage, pledge, security interest,
encumbrance, lien or charge of any kind (including any conditional
sale or other title retention agreement or Capital
Lease).
“
Moody’s ” means Moody’s Investors Service,
Inc. and its successors.
“ Net
Cash Proceeds ” means, with respect to any Asset Sale or
Event of Loss, the proceeds of such Asset Sale or Event of Loss in
the form of cash (including (i) payments in respect of
deferred payment obligations to the extent corresponding to,
principal, but not interest, when received in the form of cash,
(ii) proceeds from the conversion of other consideration
received when converted to cash, and (iii) insurance proceeds
and condemnation awards), net of
-14-
(1) brokerage
commissions and other fees and expenses related to such Asset Sale
or Event of Loss, including fees and expenses of counsel,
accountants and investment bankers;
(2) provisions
for taxes paid or payable as a result of such Asset Sale or Event
of Loss (after taking into account any available tax credits or
deductions);
(3) payments
required to be made to holders of minority interests in Restricted
Subsidiaries as a result of such Asset Sale or to repay Debt
outstanding at the time of such Asset Sale or Event of Loss that is
secured by a Lien on the property or assets sold or subject to the
Event of Loss; and
(4) appropriate
amounts to be provided as a reserve against liabilities associated
with such Asset Sale or Event of Loss, including pension and other
post-employment benefit liabilities, liabilities related to
environmental matters and indemnification obligations associated
with such Asset Sale or Event of Loss, with any subsequent
reduction of the reserve other than by payments made and charged
against the reserved amount to be deemed a receipt of
cash.
“ 1988
Indenture ” means the indenture dated as of
January 1, 1988 between the Company and The Bank of New York
Mellon, as trustee, as amended or supplemented from time to
time.
“
Non-Recourse Debt ” means Debt as to which neither the
Company nor any Restricted Subsidiary provides any Guarantee and as
to which the providers thereof have been notified in writing, or
have otherwise agreed, that they will not have any recourse to the
stock or assets of the Company or any Restricted Subsidiary other
than the specific asset securing such Debt.
“
Notes ” means the notes issued pursuant to this
Indenture.
“ Note
Guaranty ” means the guaranty of the Notes by a Guarantor
pursuant to this Indenture.
“
Obligations ” means, with respect to any Debt, all
obligations (whether in existence on the Issue Date or arising
afterwards, absolute or contingent, direct or indirect) for or in
respect of principal (when due, upon acceleration, upon redemption,
upon mandatory repayment or repurchase pursuant to a mandatory
offer to purchase, or otherwise), premium, interest, penalties,
fees, indemnification, reimbursement and other amounts payable and
liabilities with respect to such Debt, including all interest
accrued or accruing after the commencement of any bankruptcy,
insolvency or reorganization or similar case or proceeding at the
contract rate (including, without limitation, any contract rate
applicable upon default) specified in the relevant documentation,
whether or not the claim for such interest is allowed as a claim in
such case or proceeding.
“
Officer ” means, with respect to the Company, the
president, chief executive officer, chief financial officer or
treasurer.
“
Officer’s Certificate ” means a certificate
signed in the name of the Company by an Officer of the
Company.
-15-
“ OID
Legend ” means the legend set forth in
Exhibit G.
“ Opinion
of Counsel ” means a written opinion (reasonably
acceptable to the Trustee) from legal counsel. The counsel may be
an employee of or counsel to the Company.
“
Outstanding ” when used with respect to Notes means,
as of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture,
except:
(1) Notes
theretofore cancelled by the Trustee or delivered to the Trustee
for cancellation;
(2) Notes for
whose payment or redemption money in the necessary amount has been
theretofore deposited with the Trustee or any Paying Agent in trust
for the Holders of such Notes, provided that, if such Notes
are to be redeemed, notice of such redemption has been duly given
pursuant to this Indenture or provision therefor reasonably
satisfactory to the Trustee has been made;
(3) Notes
surrendered pursuant to Section 3.06; and
(4) Notes in
exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to this Indenture.
A Note does not
cease to be Outstanding because the Company or any Affiliate of the
Company holds the Note, provided that, in determining
whether the Holders of the requisite amount of Outstanding Notes
have given any request, demand, authorization, direction, notice,
consent or waiver hereunder, Notes owned by the Company or any
Affiliate of the Company shall be disregarded and deemed not to be
Outstanding, except that, for the purpose of determining whether
the Trustee shall be protected in relying on any such request,
demand, authorization, direction, notice, consent or waiver, only
Notes which a Responsible Officer of the Trustee actually knows are
so owned shall be so disregarded. Notes so owned that have been
pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the reasonable satisfaction of the Trustee the
pledgee’s right to act with respect to such Notes and that
the pledgee is not the Company or an Affiliate of such
Company.
“ Paying
Agent ” means any Person authorized by the Company to pay
the principal of (and premium, if any) or interest on any Notes on
behalf of the Company.
“ Payment
Default ” means any failure to pay any scheduled
installment of interest or principal on any Debt within the grace
period provided for such payment in the documentation governing
such Debt.
“
Permitted Business ” means any of the businesses in
which the Company and its Restricted Subsidiaries are engaged on
the Issue Date, and any business reasonably related, incidental,
complementary or ancillary thereto.
“
Permitted Investments ” means:
-16-
(1) any
Investment in the Company or in a Restricted Subsidiary of the
Company;
(2) any
Investment in Cash Equivalents;
(3) any
Investment by the Company or any Subsidiary of the Company in a
Person, if as a result of such Investment,
(A) such
Person becomes a Restricted Subsidiary of the Company,
or
(B) such
Person is merged or consolidated with or into, or transfers or
conveys substantially all its assets to, or is liquidated into, the
Company or a Restricted Subsidiary;
(4) Investments
received as non-cash consideration in an Asset Sale made pursuant
to and in compliance with Section 4.09;
(5) any
Investment acquired solely in exchange for Qualified Stock of the
Company;
(6) Hedging
Agreements otherwise permitted under this Indenture;
(7)
(i) receivables owing to the Company or any Restricted
Subsidiary if created or acquired in the ordinary course of
business, (ii) Cash Equivalents or other liquid or portfolio
securities pledged as collateral pursuant to Section 4.11(b),
(iii) endorsements for collection or deposit in the ordinary
course of business, and (iv) securities, instruments or other
obligations received in compromise or settlement of debts created
in the ordinary course of business, or by reason of a composition
or readjustment of debts or reorganization of another Person, or in
satisfaction of disputes, claims or judgments;
(8) Investments
in Unrestricted Subsidiaries in an aggregate amount, taken together
with all other Investments made in reliance on this clause, not to
exceed $100,000,000 (net of, with respect to the Investment in any
particular Person, the cash return thereon received after the Issue
Date as a result of any sale for cash, repayment, redemption,
liquidating distribution or other cash realization (not included in
Consolidated Net Income), not to exceed the amount of Investments
in such Person made after the Issue Date in reliance on this
clause);
(9) payroll,
travel and other loans or advances to, or Guarantees issued to
support the obligations of, officers and employees, in each case in
the ordinary course of business, not in excess of $25,000,000
outstanding at any time;
(10) extensions
of credit to or on behalf of customers, distributors and suppliers
in the ordinary course of business;
(11) Investments
arising as a result of any Permitted Receivables
Financing;
-17-
(12) Investments
existing on the Issue Date and Investments purchased or received in
exchange for any such Investment (which initial Investment is not
otherwise permitted under any other clause of this definition);
provided , that any additional consideration provided by the
Company or any Restricted Subsidiary in any such exchange is
permitted pursuant to another clause of this definition;
(13) Investments
in any other Person in an aggregate amount not to exceed
$300,000,000 (net of, with respect to the Investment in any
particular Person made pursuant to this clause, the cash return
thereon received after the Issue Date as a result of any sale for
cash, repayment, redemption, liquidating distribution or other cash
realization (not included in Consolidated Net Income) not to exceed
the amount of such Investments made after the Issue Date in
reliance on this clause);
(14) lease,
utility, workers’ compensation, unemployment insurance,
performance and other deposits made in the ordinary course of
business;
(15) Investments
consisting of the purchase or acquisition of inventory, supplies,
materials and equipment in the ordinary course of
business;
(16) prepaid
expenses and negotiable instruments held for collection in the
ordinary course of business;
(17) Investments
(i) of the types specified in the definition of Cash
Equivalents but which mature on dates up to three years from the
date of acquisition and (ii) consisting of corporate
obligations with long term ratings of A or better from S&P or
A2 or better from Moody’s, having maturities of not more than
twelve months from the date of acquisition, so long as the
aggregate value of the Investments described in clauses
(i) and (ii) does not exceed 20% of the value of cash and
short term investments and long term investments of the types
described in the definition of Cash Equivalents and this clause
(17), in each case as shown on the Company’s most recent
balance sheet that has been made publicly available;
(18) Investments
in Persons domiciled in, or substantially all of the assets of
which are located in, the People’s Republic of China in an
aggregate amount not to exceed $100,000,000;
(19) Investments
received in settlement of claims against another Person in
connection with (A) a bankruptcy proceeding against such
Person, (B) accounts receivable arising from or trade credit
granted to, in the ordinary course of business, a financially
troubled account debtor and (C) disputes regarding
intellectual property rights; and
(20) Guarantees
of Debt permitted to be Incurred under
Section 4.06.
“
Permitted Liens ” means
(1) Liens
existing on the Issue Date other than Liens securing the Credit
Agreement;
-18-
(2) Liens
on the Collateral and Liens on assets of Excluded Subsidiaries that
are not Guarantors securing:
(A) the
Notes, the Note Guaranties and other Obligations under this
Indenture and in respect thereof and any obligations owing to the
Trustee or the Second Lien Collateral Agent under this Indenture or
the Security Agreements;
(B) (i) Debt
Incurred under clause (1) of the definition of Permitted Debt
(and all Obligations incurred, issued or arising under such secured
credit facilities that permit borrowings not in excess of the limit
set forth in such clause (1)) and (ii) Obligations of the
Company and its Subsidiaries under Hedging Agreements and other
agreements, including in respect of (x) treasury management
services provided by and (y) letters of credit issued by,
entered into with lenders under the Debt referred to in the
preceding clause (i) or their affiliates (so long as such
Persons remain lenders (or affiliates thereof) after entry into
such agreements or arrangements) in an aggregate amount for this
clause (ii) not to exceed the sum of (A) the excess, if
any, of the amount of Debt permitted to be Incurred under clause
(1) of the definition of Permitted Debt over the amount of
Debt actually Incurred under clause (1) of the definition of
Permitted Debt plus (B) $100,000,000, which Liens incurred under
this clause (B) may, subject to the limitations set forth in
the Intercreditor Agreement, be on a first-lien priority basis
compared to the liens securing the Notes and the other Obligations
referred to in the preceding paragraph (A) on the terms set
forth in the Intercreditor Agreement (collectively and as limited
by such limitations, “ First-Priority Lien Obligations
”);
(3) pledges
or deposits under worker’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in
connection with bids, tenders, contracts or leases, or to secure
public or statutory obligations, surety bonds, customs duties and
the like, or for the payment of rent, in each case incurred in the
ordinary course of business and not securing Debt;
(4) Liens
imposed by law, such as landlords’, suppliers’,
carriers’, vendors’, warehousemen’s,
materialmen’s, workmen’s, repairman’s and
mechanics’ liens, in each case for sums not yet due or being
contested in good faith and by appropriate proceedings;
(5) Liens
in respect of taxes and other governmental assessments and charges,
levies or claims which are not yet due or which are being contested
in good faith and by appropriate proceedings;
(6) Liens
securing reimbursement obligations with respect to letters of
credit that encumber documents and other property relating to such
letters of credit and the proceeds thereof;
(7) minor
survey exceptions, minor 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, not interfering in any material respect with the conduct
of the business of the Company and its Restricted
Subsidiaries;
-19-
(8) licenses
or leases or subleases as licensor, lessor or sublessor of any of
its property, including intellectual property, in the ordinary
course of business, and any interest of co-sponsors, co-owners or
co-developers of intellectual property;
(9) customary
Liens in favor of trustees and escrow agents, and netting and
setoff rights, banker’s liens and the like in favor of
financial institutions and counterparties to financial obligations
and instruments, excluding Hedging Agreements;
(10) Liens
on assets pursuant to merger agreements, stock or asset purchase
agreements and similar agreements in respect of the disposition of
assets subject thereto;
(11) options,
put and call arrangements, rights of first refusal and similar
rights relating to Investments in joint ventures, partnerships and
the like;
(12) judgment
liens, and Liens securing appeal bonds or letters of credit issued
in support of or in lieu of appeal bonds, so long as no Event of
Default then exists under Section 6.01(6);
(13) Liens
incurred in the ordinary course of business not securing Debt and
not in the aggregate materially detracting from the value of the
properties or their use in the operation of the business of the
Company and its Restricted Subsidiaries;
(14) Liens
(including the interest of a lessor under a Capital Lease) on
property that secure Debt Incurred for the purpose of financing or
refinancing all or any part of the purchase price or cost of
construction or improvement of such property and which attach
within 365 days after the date of such purchase or the
completion of construction or improvement (including Liens securing
Acquired Debt of the type described in this clause (14));
provided that such Debt was permitted to be incurred under
this Indenture;
(15) Liens
on property or shares of Capital Stock of a Person at the time such
Person becomes a Subsidiary of the Company, provided such Liens
were not created in contemplation thereof and do not extend to any
other property of the Company or any Restricted
Subsidiary;
(16) Liens
on property at the time the Company or any of the Restricted
Subsidiaries acquires such property, including any acquisition by
means of a merger or consolidation with or into the Company or a
Restricted Subsidiary of such Person, provided such Liens were not
created in contemplation thereof and do not extend to any other
property of the Company or any Restricted Subsidiary;
(17) Liens
on accounts receivable and related assets and proceeds thereof
arising in connection with a Permitted Receivables Financing
pursuant to Section 4.06(b)(xvi);
-20-
(18) Liens
on assets of Foreign Restricted Subsidiaries securing Debt of such
Foreign Restricted Subsidiaries or other obligations of such
Foreign Restricted Subsidiaries permitted under this
Indenture;
(19) extensions,
renewals or replacements of any Liens referred to in clauses (1),
(2), (14), (15) or (16) in connection with the
refinancing of the obligations secured thereby, provided that such
Lien does not extend to any other property and, except as
contemplated by the definition of “Permitted Refinancing
Debt”, the amount secured by such Lien is not
increased;
(20) Liens
on Equal and Ratable Assets so long as the notes have been secured
equally and ratably with (or, if the obligation to be secured by
the Lien is subordinated in right of payment to the Notes or any
Note Guaranty, prior to) the obligations so secured for so long as
such obligations are so secured;
(21) other
Liens (other than on the Collateral or Equal and Ratable Assets)
securing obligations in an aggregate amount at any time outstanding
not exceeding $200,000,000;
(22) Liens
securing Debt or other obligations of the Company or any Guarantor
owing to the Company or another Guarantor;
(23) Liens
arising from precautionary Uniform Commercial Code financing
statement filings regarding operating leases (other than Sale and
Leaseback Transactions) entered into by the Company or a Restricted
Subsidiary in the ordinary course of business; and
(24) Liens
on assets set aside or deposited to defease or repay Debt;
provided that such Debt was permitted under this
Indenture.
“
Permitted Receivables Financing ” means any
receivables financing facility or arrangement pursuant to which a
Securitization Subsidiary purchases or otherwise acquires
Receivables of the Company or any Restricted Subsidiaries and
enters into a third party financing thereof on terms that the Board
of Directors of the Company has concluded are customary and market
terms fair to the Company and its Restricted
Subsidiaries.
“
Person ” means an individual, a corporation, a
partnership, a limited liability company, an association, a trust
or any other entity, including a government or political
subdivision or an agency or instrumentality thereof.
“ PIK
Interest ” has the meaning set forth in Exhibit A
hereto.
“ Place
of Payment ” means a city or any political subdivision
thereof referred to in Article 3 and initially designated
under Section 4.02.
“
Preferred Stock ” means, with respect to any Person,
any and all Capital Stock which is preferred as to the payment of
dividends or distributions, upon liquidation or otherwise, over
another class of Capital Stock of such Person.
-21-
“
Principal ” of a Note means the principal of the Note
plus the premium, if any, payable on the Note which is due or
overdue or is to become due at the relevant time.
“
Principal Property ” means any manufacturing plant or
manufacturing facility which is (i) located within the continental
United States of America and (ii) in the opinion of the Board
of Directors of the Company materially important to the total
business conducted by the Company and its Subsidiaries that own
Principal Properties, taken as a whole; provided , that no
such manufacturing plant or manufacturing facility shall constitute
a “Principal Property” unless the pledge thereof to
secure the Notes or the Note Guaranties would trigger an obligation
on the part of the Company or any Restricted Subsidiary to equally
and ratably secure the Company’s existing unsecured public
bonds.
“
Principal Property Subsidiary ” means any Subsidiary
that owns Principal Property.
“
Qualified Equity Interests ” means all Equity
Interests of a Person other than Disqualified Equity
Interests.
“
Qualified Stock ” means all Capital Stock of a Person
other than Disqualified Stock.
“ Rating
Agencies ” means S&P and Moody’s;
provided , that if either S&P or Moody’s (or both)
shall cease issuing a rating on the notes for reasons outside the
control of the Company, the Company may select a nationally
recognized statistical rating agency to substitute for S&P or
Moody’s (or both).
“
Receivables ” means accounts receivable (including all
rights to payment created by or arising from the sale of goods,
leases of goods or the rendition of services, no matter how
evidenced (including in the form of a chattel paper) and whether or
not earned by performance).
“
Redemption Date ” when used with respect to any Note
to be redeemed or purchased means the date fixed for such
redemption or purchase by or pursuant to this Indenture and the
Note.
“
Redemption Price ” when used with respect to any Note
to be redeemed or purchased means the price at which it is to be
redeemed or purchased pursuant to this Indenture and the
Note.
“
Registration Rights Agreement ” means the Registration
Rights Agreement, dated as of
, 2009, among the
Company, the Guarantors and the other parties named on the
signature pages thereof, as such agreement may be amended, modified
or supplemented from time to time.
“ Regular
Record Date ” for the interest payable on any Interest
Payment Date means the date specified for that purpose in
Section 3.01.
“
Responsible Officer ” when used with respect to the
Trustee means any officer in the corporate trust department of the
Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any
other officer of the Trustee who customarily performs functions
similar to those performed by the Persons who at the time shall
be
-22-
such officers,
and also means, with respect to a particular corporate trust
matter, any other officer to whom such matter is referred because
of his or her knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the
administration of this Indenture.
“
Restricted Legend ” means the legend set forth in
Exhibit C.
“
Restricted Subsidiary ” means any Subsidiary of the
Company other than an Unrestricted Subsidiary.
“
Rule 144 ” means Rule 144 promulgated under
the Securities Act.
“
Rule 144A ” means Rule 144A under the
Securities Act.
“
Rule 144A Certificate ” means (i) a
certificate substantially in the form of Exhibit G hereto or
(ii) a written certification addressed to the Company and the
Trustee to the effect that the Person making such certification
(x) is acquiring the applicable Note (or beneficial interest)
for its own account or one or more accounts with respect to which
it exercises sole investment discretion and that it and each such
account is a qualified institutional buyer within the meaning of
Rule 144A, (y) is aware that the transfer to it or
exchange, as applicable, is being made in reliance upon the
exemption from the provisions of Section 5 of the Securities
Act provided by Rule 144A, and (z) acknowledges that it has
received such information regarding the Company as it has requested
pursuant to Rule 144A(d)(4) or has determined not to request
such information.
“
S&P ” means Standard & Poor’s Ratings
Group, a division of McGraw Hill, Inc. and its
successors.
“ Sale
and Leaseback Transaction ” means, with respect to any
Person, an arrangement whereby such Person enters into a lease
(other than a Capital Lease) of property previously transferred by
such Person to the lessor.
“ SEC
” means the Securities and Exchange Commission.
“ Second
Lien Legend ” means the legend set forth in
Exhibit F.
“
Second-Priority Liens ” means all Liens that secure
the Second-Priority Lien Obligations.
“
Second-Priority Lien Obligations ” shall mean the
Notes and any other indebtedness secured by the Collateral on a
second-priority basis, approved for designation as such by the
Credit Facility Agent and the Second Lien Collateral Agent or
pursuant to the Intercreditor Agreement between the Second Lien
Collateral Agent and the Credit Facility Agent.
“
Securities Act ” means the Securities Act of 1933, as
amended.
“
Securitization Subsidiary ” means a Subsidiary of the
Company
-23-
(1) that
is designated a “Securitization Subsidiary” by the
Board of Directors of the Company,
(2) that
does not engage in, and whose charter prohibits it from engaging
in, any activities other than Permitted Receivables Financings and
any activity necessary, incidental or related thereto,
(3) no
portion of the Debt or any other obligation, contingent or
otherwise, of which
(A) is
Guaranteed by the Company or any Restricted Subsidiary of the
Company,
(B) is
recourse to or obligates the Company or any Restricted Subsidiary
of the Company in any way, or
(C) subjects
any property or asset of the Company or any Restricted Subsidiary
of the Company, directly or indirectly, contingently or otherwise,
to the satisfaction thereof,
(4) with
respect to which neither the Company nor any Restricted Subsidiary
of the Company (other than an Unrestricted Subsidiary) has any
obligation to maintain or preserve its financial condition or cause
it to achieve certain levels of operating results,
other than, in
respect of clauses (3) and (4), pursuant to customary
representations, warranties, covenants and indemnities entered into
in connection with a Permitted Receivables Financing.
“
Security Agreements ” means (i) the Intercreditor
Agreement and (ii) all security agreements, pledge agreements,
collateral assignments and other security documents or other grants
or transfers for security or agreements related thereto creating or
perfecting (or purporting to create or perfect) a Lien in any
assets of any Person to secure the Obligations under the Notes and
the Note Guaranties, or under which rights or remedies with respect
to such Liens are governed, as each may be amended, restated,
supplemented or otherwise modified from time to time.
“
Significant Subsidiary ” means any Subsidiary, or
group of Subsidiaries, that would , taken together, be a
“significant subsidiary” as defined in Article 1,
Rule 1-02 (w)(1) or (2) of Regulation S-X
promulgated under the Securities Act, as such regulation is in
effect on the date of this Indenture.
“ Special
Record Date ” for the payment of any Defaulted Interest
means a date fixed by the Trustee pursuant to
Section 3.07(a).
“
Specified Transaction ” means any transaction or
agreement entered into with KKR Jet Stream (Cayman) Limited or its
Affiliates on or about the Issue Date in connection with the
issuance of the Notes.
-24-
“ Stated
Maturity ” means (i) with respect to any Debt, the
date specified as the fixed date on which the final installment of
principal of such Debt is due and payable or (ii) with respect
to any scheduled installment of principal of or interest on any
Debt, the date specified as the fixed date on which such
installment is due and payable as set forth in the documentation
governing such Debt, not including any contingent obligation to
repay, redeem or repurchase prior to the regularly scheduled date
for payment.
“
Subordinated Debt ” means any Debt of the Company or
any Guarantor which is subordinated in right of payment to the
notes or the Note Guaranty, as applicable, pursuant to a written
agreement to that effect.
“
Subsidiary ” means with respect to any Person, any
corporation, association or other business entity of which more
than 50% of the outstanding Voting Stock is owned, directly or
indirectly, by, or, in the case of a partnership, the sole general
partner or the managing partner or the only general partners of
which are, such Person and one or more Subsidiaries of such Person
(or a combination thereof). Unless otherwise specified,
“Subsidiary” means a Subsidiary of the
Company.
“
substantially concurrent ” means with respect to any
two events, such events occur within 45 days of each
other.
“ TIA
” means the Trust Indenture Act of 1939 (15 U.S.C. sections
77aaa-77bbbb) as in effect on the Issue Date, except as provided by
Section 9.05.
“
Treasury Rate ” means, as of any Redemption Date, the
yield to maturity as of such Redemption Date of United States
Treasury securities with a constant maturity (as compiled and
published in the most recent Federal Reserve Statistical Release
H.15 (519) that has become publicly available at least two
Business Days prior to the Redemption Date (or, if such Statistical
Release is no longer published, any publicly available source of
similar market data)) most nearly equal to the period from the
Redemption Date to October 1, 2013; provided , however,
that if the period from the Redemption Date to October 1, 2013
is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity
of one year will be used.
“ Trigger
Date ” means the date that is the same day of the month
as the Issue Date eighteen (18) months after the Issue
Date.
“
Trustee ” means the Person named as the
“Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter
“Trustee” shall mean such successor Trustee.
“ 2017
Convertible Notes ” means the
Company’s % Convertible
Senior Notes due 2017, issued on or about the Issue
Date.
“ U.S.
Government Obligations ” means obligations issued or
directly and fully guaranteed or insured by the United States of
America or by any agent or instrumentality thereof, provided that
the full faith and credit of the United States of America is
pledged in support thereof.
-25-
“
Unrestricted Subsidiary ” means any Subsidiary that at
the time of determination has previously been designated, and
continues to be, an Unrestricted Subsidiary in accordance with
Section 4.19.
“ Voting
Stock ” means, with respect to any Person, Capital Stock
of any class or kind ordinarily having the power to vote for the
election of directors, managers or other voting members of the
governing body of such Person.
“ Wholly
Owned ” means with respect to any Restricted Subsidiary,
a Restricted Subsidiary all of the outstanding Capital Stock of
which (other than any director’s qualifying shares) is owned
by the Company and one or more Wholly Owned Restricted Subsidiaries
(or a combination thereof).
Section 1.02
Other Definitions.
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Term
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Defined in Section
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1.08
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6.02
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4.10
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3.13
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10.01
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3.03
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6.01
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3.01
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Change of Control Payment
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4.12
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12.03
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3.07
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6.01
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4.09
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1.08
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2.01
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12.02
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4.12
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3.01
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Permitted Credit Facility Debt
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4.06
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4.06
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Permitted Refinancing Debt
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4.06
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2.01
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4.12
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4.06
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3.05
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3.05
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Related Party Transaction
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4.10
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4.12
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4.07
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4.12
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-26-
Section 1.03
Rules of Construction . For all purposes of this Indenture,
except as otherwise expressly provided or unless the context
otherwise requires:
(a) the
terms defined in this Indenture have the meanings assigned to them
in this Indenture;
(b)
“ or ” is not exclusive;
(c) all
accounting terms not otherwise defined herein have the meanings
assigned to them in accordance with GAAP and, unless expressly
provided otherwise, all determinations and computations made
pursuant to any provision hereof shall be made in accordance with
GAAP;
(d) the
words “ herein ,” “ hereof ”
and “ hereunder ” and other words of similar
import refer to this Indenture as a whole and not to any particular
Article, Section or other subdivision;
(e) all
references to “ $ ” or “ dollars
” shall refer to the lawful currency of the United States of
America;
(f) the
words “ include ,” “ included
” and “ including ” as used herein shall
be deemed in each case to be followed by the phrase “
without limitation ,” if not expressly followed by
such phrase or the phrase “ but not limited to
”;
(g) words
in the singular include the plural, and words in the plural include
the singular; and
(h) any
reference to a Section or Article refers to such Section or Article
of this Indenture unless otherwise indicated.
Section 1.04
Incorporation by Reference of TIA . Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture. This Indenture is
subject to the mandatory provisions of the TIA, which are
incorporated by reference in and made a part of this Indenture. Any
terms incorporated by reference in this Indenture that are defined
by the TIA, defined by any TIA reference to another statute or
defined by SEC rule under the TIA, have the meanings so assigned to
them therein. The following TIA terms have the following
meanings:
“
indenture securities ” means the Notes.
“
indenture security holder ” means a Holder.
“
indenture to be qualified ” means this
Indenture.
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“
indenture trustee ” or “ institutional
trustee ” means the Trustee.
“
obligor ” on the indenture securities means the
Company, any Guarantor and any other obligor on the indenture
securities.
Section 1.05
Conflict with TIA . If any provision hereof limits,
qualifies or conflicts with a provision of the TIA that is required
under the TIA to be a part of and govern this Indenture, the latter
provision shall control. If any provision of this Indenture
modifies or excludes any provision of the TIA that may be so
modified or excluded, the latter provision shall be deemed
(a) to apply to this Indenture as so modified or (b) to
be excluded, as the case may be.
Section 1.06
Compliance Certificates and Opinions . Upon any application
or request by the Company or by any other obligor upon the Notes to
the Trustee to take any action under any provision of this
Indenture, the Company or such other obligor upon the Notes, as the
case may be, shall furnish to the Trustee such certificates and
opinions as may be required under the TIA. Each such certificate or
opinion shall be given in the form of one or more Officer’s
Certificates, if to be given by an Officer, or an Opinion of
Counsel, if to be given by counsel, and shall comply with the
requirements of the TIA and any other requirements set forth in
this Indenture. Notwithstanding the foregoing, in the case of any
such request or application as to which the furnishing of any
Officer’s Certificate or Opinion of Counsel is specifically
required by any provision of this Indenture relating to such
particular request or application, no additional certificate or
opinion need be furnished.
Every certificate
or opinion with respect to compliance with a condition or covenant
provided for in this Indenture except for certificates provided for
in Section 4.05 shall include:
(a) a
statement that the individual signing such certificate or opinion
has read such covenant or condition and the definitions herein
relating thereto;
(b) a
brief statement as to the nature and scope of the examination or
investigation upon which the statements or opinions contained in
such certificate or opinion are based;
(c) a
statement that, in the opinion of such individual, he or she made
such examination or investigation as is necessary to enable him or
her to express an informed opinion as to whether or not such
covenant or condition has been complied with; and
(d) a
statement as to whether, in the opinion of such individual, such
condition or covenant has been complied with.
Section 1.07
Form of Documents Delivered to Trustee . In any case where
several matters are required to be certified by, or covered by an
opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one
document, but one such Person may certify or give an opinion with
respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion
as to such matters in one or several documents.
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Any certificate or
opinion of an Officer may be based, insofar as it relates to legal
matters, upon a certificate or opinion of, or representations by,
counsel, unless such Officer knows that the certificate or opinion
or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. Any such certificate
or opinion of counsel may be based, insofar as it relates to
factual matters, upon a certificate or opinion of, or
representations by, an Officer or Officers to the effect that the
information with respect to such factual matters is in the
possession of the Company, unless such counsel knows that the
certificate or opinion or representations with respect to such
matters are erroneous, and may contain customary exceptions and
qualifications.
Where any Person
is required to make, give or execute two or more applications,
requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be
consolidated and form one instrument.
Section 1.08
Acts of Holders; Record Dates.
(a) Any
request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by
Holders may be embodied in and evidenced by one or more instruments
of substantially similar tenor signed by such Holders in person or
by agent duly appointed in writing; and, except as herein otherwise
expressly provided, such action shall become effective irrevocably
as to the Holder when such instrument or instruments are delivered
to the Trustee, and, where it is hereby expressly required, to the
Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as
the “ Act ” of the Holders signing such
instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and (subject to
Section 7.01) conclusive in favor of the Trustee, the Company
and any other obligor upon the Notes, if made in the manner
provided in this Section 1.08.
(b) The
fact and date of the execution by any Person of any such instrument
or writing may be proved by the affidavit of a witness of such
execution or by the certificate of any notary public or other
officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing
acknowledged to him the execution thereof. Where such execution is
by an officer of a corporation or a member of a partnership or
other entity, on behalf of such corporation or partnership or other
entity, such certificate or affidavit shall also constitute
sufficient proof of such Person’s authority. The fact and
date of the execution of any such instrument or writing, or the
authority of the person executing the same, may also be proved in
any other manner that the Trustee deems sufficient.
(c) The
ownership of Notes shall be conclusively established by the
Register.
(d) Any
request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Note shall bind the Holder of
every Note issued upon the transfer thereof or in exchange therefor
or in lieu thereof, in respect of anything done or suffered to be
done by the Trustee, the Company or any other obligor on the Notes
in reliance thereon, whether or not notation of such action is made
upon such Note.
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(e)
(i) The Company may set any day as a record date for the
purpose of determining the Holders of Outstanding Notes entitled to
give, make or take any request, demand, authorization, direction,
notice, consent, waiver or other action provided or permitted by
this Indenture to be given, made or taken by Holders,
provided that the Company may not set a record date for, and
the provisions of this paragraph shall not apply with respect to,
the giving or making of any notice, declaration, request or
direction referred to in Section 1.08(e)(ii). If any record
date is set pursuant to this paragraph, the Holders of Outstanding
Notes on such record date (or their duly designated proxies), and
no other Holders, shall be entitled to take the relevant action,
whether or not such Persons remain Holders after such record date
; provided that no such action shall be effective hereunder
unless taken on or prior to any applicable Expiration Date by
Holders of the requisite principal amount of Outstanding Notes on
such record date. Nothing in this paragraph shall be construed to
prevent the Company from setting a new record date for any action
for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall
automatically and with no action by any Person be cancelled and of
no effect, whether or not the Expiration Date, if any, with respect
to a Record Date has previously passed), and nothing in this
paragraph shall be construed to render ineffective any action taken
by Holders of the requisite principal amount of Outstanding Notes
on the date such action is taken. Promptly after any record date is
set pursuant to this paragraph, the Company, at its own expense,
shall cause notice of such record date, the proposed action by
Holders and the applicable Expiration Date to be given to the
Trustee in writing and to each Holder in the manner set forth in
Section 1.10.
(ii) The
Trustee may set any day as a record date for the purpose of
determining the Holders of Outstanding Notes entitled to join in
the giving or making of (w) any Notice of Default,
(x) any declaration of acceleration referred to in
Section 6.02, (y) any request to institute proceedings
referred to in Section 6.06(2), or (z) any direction
referred to in Section 6.05, in each case with respect to
Notes, and shall set an Expiration Date for such Acts. If any
record date is set pursuant to this paragraph, the Holders of
Outstanding Notes on such record date, and no other Holders, shall
be entitled to join in such notice, declaration, request or
direction, whether or not such Holders remain Holders after such
record date ; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of
Outstanding Notes on such record date. Nothing in this paragraph
shall be construed to prevent the Trustee from setting a new record
date for any action for which a record date has previously been set
pursuant to this paragraph (whereupon the record date previously
set shall automatically and with no action by any Person be
cancelled and of no effect), and nothing in this paragraph shall be
construed to render ineffective any action taken by Holders of the
requisite principal amount of Outstanding Notes on the date such
action is taken. Promptly after any record date is set pursuant to
this paragraph, the Trustee, at the expense of the Company, shall
cause notice of such record date, the proposed action by Holders
and the applicable Expiration Date to be given to the Company in
writing and to each Holder in the manner set forth in
Section 1.10.
(iii)
With respect to any record date set pursuant to this
Section 1.08, the party hereto that sets such record dates may
designate any day as the “ Expiration Date ” and
from time to time may change the Expiration Date to any earlier or
later day ; provided that no such change shall be effective
unless notice of the proposed new Expiration Date is given to the
Company
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or the Trustee
(whichever such party is not setting a record date pursuant to this
Section l.08(e)) in writing, and to each Holder in the manner set
forth in Section 1.10, on or prior to the existing Expiration
Date. If an Expiration Date is not designated with respect to any
record date set pursuant to this Section, the party hereto that set
such record date shall be deemed to have initially designated the
180th day after such record date as the Expiration Date with
respect thereto, subject to its right to change the Expiration Date
as provided in this paragraph. Notwithstanding the foregoing, no
Expiration Date shall be later than the 180th day after the
applicable record date.
(iv) Without
limiting the foregoing, a Holder entitled hereunder to take any
action hereunder with regard to any particular Note may do so with
regard to all or any part of the principal amount of such Note or
by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any part of such
principal amount, provided however, that unless otherwise
expressly stated in such Holder’s Act, any Act shall be
deemed to have been given with respect to the entire principal
amount of such Holders Note or Notes.
Section 1.09
Notices, Etc., to Trustee and Company . Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders
or other document provided or permitted by this Indenture to be
made upon, given or furnished to, or filed with,
(a) the
Trustee by any Holder or by the Company or any other obligor upon
the Notes shall be sufficient for every purpose hereunder if made,
given, furnished or filed in writing to or with the Trustee at the
Corporate Trust Office (telephone: (212) 815-4779; facsimile:
(732) 667-9185, or at any other address furnished in writing
to the Company by the Trustee), or
(b) the
Company by the Trustee or by any Holder shall be sufficient for
every purpose hereunder if in writing and delivered in person or
mailed, first-class postage prepaid, to the Company at 343 State
Street, Rochester, New York 14650, Attention: General Counsel
(facsimile: (585) 724-9549) and Attention: Treasurer
(facsimile: (585) 724-5174), with copies to Wilson Sonsini
Goodrich & Rosati, Professional Corporation, 650 Page Mill
Road, Palo Alto, California 94304, Attention: Larry W. Sonsini,
Esq. (facsimile: (650) 493-6811), or at any other address
previously furnished in writing to the Trustee by the
Company.
(c) The
Trustee agrees to accept and act upon instructions or directions
pursuant to this Indenture sent by unsecured e-mail, facsimile
transmission or other similar unsecured electronic methods;
provided , however , that (i) the party
providing such written instructions, subsequent to such
transmission of written instructions, shall provide the originally
executed instructions or directions to the Trustee in a timely
manner, and (ii) such originally executed instructions or
directions shall be signed by an authorized representative of the
party providing such instructions or directions. The Trustee shall
not be liable for any losses, costs or expenses arising directly or
indirectly from the Trustee’s reliance upon and compliance
with such instructions. The party providing electronic instructions
agrees to assume all risks arising out of the use of such
electronic methods to submit instructions and directions to the
Trustee, including without limitation the risk of the Trustee
acting on unauthorized instructions, and the risk or interception
and misuse by third parties.
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Section 1.10
Notices to Holders; Waivers . Where this Indenture provides
for notice to Holders of any event, such notice shall be deemed to
have been given upon the mailing by first class mail, postage
prepaid, of such notices to Holders at their registered addresses
as recorded in the Register, not later than the latest date, and
not earlier than the earliest date, prescribed herein for the
giving of such notice. In any case where notice to Holders is given
by mail, neither the failure to mail such notice, nor any defect in
any notice so mailed, to any particular Holder shall affect the
sufficiency of such notice with respect to other
Holders.
Where this
Indenture provides for notice in any manner, such notice may be
waived in writing by the Person entitled to receive such notice,
either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be
filed with the Trustee, but such filing shall not be a condition
precedent to the validity of any action taken in reliance upon such
waiver.
In case, by reason
of the suspension of regular mail service, or by reason of any
other cause, it shall be impossible to mail notice of any event as
required by any provision of this Indenture, then such notification
as shall be made with the approval of the Trustee (such approval
not to be unreasonably withheld) shall constitute a sufficient
notification for every purpose hereunder.
Section 1.11
Effect of Headings and Table of Contents . The Article and
Section headings herein and the Table of Contents are for
convenience only and shall not affect the construction
hereof.
Section 1.12
Successors and Assigns . All covenants and agreements in
this Indenture by the Company shall bind its respective successors
and assigns, whether so expressed or not.
Section 1.13
Severability Clause . In case any provision in this
Indenture or in the Notes shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired
thereby.
Section 1.14
Benefits of Indenture . Nothing in this Indenture or in the
Notes, express or implied, shall give to any Person, other than the
parties hereto and their successors hereunder, any Paying Agent and
the Holders, any benefit or any legal or equitable right, remedy or
claim under this Indenture.
Section 1.15
Governing Law . THIS INDENTURE, THE NOTES AND THE NOTE
GUARANTIES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY
PRINCIPLES OF CONFLICT OF LAWS TO THE EXTENT THAT THE APPLICATION
OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. TO
THE EXTENT PERMITTED BY LAW, THE TRUSTEE, THE COMPANY, THE
GUARANTORS, ANY OTHER OBLIGORS IN RESPECT OF THE NOTES AND (BY
THEIR ACCEPTANCE OF THE NOTES) THE HOLDERS, AGREE TO SUBMIT TO THE
NON-EXCLUSIVE JURISDICTION OF ANY
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UNITED STATES
FEDERAL OR STATE COURT LOCATED IN THE BOROUGH OF MANHATTAN, IN THE
CITY OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE OR THE NOTES.
Section 1.16
Legal Holidays . In any case where any Interest Payment
Date, Redemption Date or Stated Maturity of any Note shall not be a
Business Day, then (notwithstanding any other provision of this
Indenture or of the Notes) payment of interest or principal and
premium (if any) need not be made on such date, but may be made on
the next succeeding Business Day with the same force and effect as
if made on the Interest Payment Date or Redemption Date, or at the
Stated Maturity.
Section 1.17
No Liability of Directors, Officers, Employees, Incorporators,
Members and Stockholders . No director, officer, employee,
incorporator, member or stockholder of the Company or any Guarantor
or any of their Affiliates, as such, will have any liability for
any obligations of the Company or such Guarantor under the Notes,
any Note Guaranty or this Indenture or for any claim based on, in
respect of, or by reason of, such obligations. Each Holder of Notes
by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for issuance of
the Notes and the Note Guaranties.
Section 1.18
Exhibits and Schedules . All exhibits and schedules attached
hereto are by this reference made a part hereof with the same
effect as if herein set forth in full.
Section 1.19
Counterparts . This Indenture may be executed in any number
of counterparts, each of which shall be an original; but such
counterparts shall together constitute but one and the same
instrument.
Section 1.20
Waiver of Jury Trial . EACH OF THE COMPANY, THE GUARANTORS
AND THE TRUSTEE HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN
ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE,
THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.
Section 1.21
Force Majeure . In no event shall the Trustee be responsible
or liable for any failure or delay in the performance of its
obligations hereunder arising out of or caused by, directly or
indirectly, forces beyond its control, including, without
limitation, strikes, work stoppages, accidents, acts of war or
terrorism, civil or military disturbances, nuclear or natural
catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use
reasonable efforts which are consistent with accepted practices in
the banking industry to resume performance as soon as practicable
under the circumstances.
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Section 2.01
Forms Generally; Legends.
(a) The
Notes and the Trustee’s certificate of authentication
relating thereto shall be in fully registered form and in
substantially the forms set forth, or referenced, in Exhibit A
annexed hereto and in this Article 2. The Notes may have such
appropriate insertions, omissions, substitutions, notations,
legends, endorsements, identifications and other variations as are
required or permitted by law, stock exchange rule or depository
rule or usage, the certificate of incorporation, bylaws or other
similar governing instruments of the Company, agreements to which
the Company is subject, if any, or other customary usage, or as may
consistently herewith be determined by the Officers of the Company
executing such Notes, as evidenced by such execution (provided
always that any such notation, legend, endorsement, identification
or variation is in a form acceptable to the Company and the
Trustee).
Notes shall be
issued initially in the form of one or more permanent global Notes
in substantially the form set forth in Exhibit A (the “
Global Notes ”), registered in the name of the nominee
of the Depositary, deposited with the Trustee, as custodian for the
Depositary or its nominee, duly executed by the Company and
authenticated by the Trustee as hereinafter provided. The aggregate
principal amount of the Global Notes may from time to time be
increased or decreased by adjustments made on the records of the
Trustee, as custodian for the Depositary or its nominee, as
provided in Section 3.12.
Notes issued
pursuant to Section 3.05 and Section 3.12 in exchange for
or upon transfer of beneficial interests in the Global Notes shall
be in the form of permanent certificated Notes in substantially the
form set forth in Exhibit A (the “ Physical Notes
”), as hereinafter provided.
(b)
(1) Except as otherwise provided in paragraph (c),
Section 3.13(c), each Original Note will bear the Restricted
Legend.
(2) Each
Global Note will bear the DTC Legend.
(3) Notes
will be issued in the form of Global Notes only, except as provided
in Section 3.12(b).
(4) Each
Note will bear the OID Legend.
(5) Each
Note will bear the Second Lien Legend.
(c)
(1) If the Company determines (upon the advice of counsel and
such other certifications and evidence as the Company may
reasonably require) that a Note is eligible for resale pursuant to
Rule 144(d) under the Securities Act (or a successor provision) and
that the Restricted
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Legend is no
longer necessary or appropriate in order to ensure that subsequent
transfers of the Note (or a beneficial interest therein) are
effected in compliance with the Securities Act, or
(2) after
any Note bearing the Restricted Legend is sold pursuant to an
effective registration statement under the Securities Act, pursuant
to the Registration Rights Agreement or otherwise,
the Company may
instruct the Trustee to cancel the Note and issue to the Holder
thereof (or to its transferee) a new Note (through the facilities
of the Depositary with respect to all or a portion of Notes
represented by a Global Note) of like tenor and amount, registered
in the name of the Holder thereof (or its transferee), that does
not bear the Restricted Legend, and the Trustee will comply with
such instruction.
(d) By
its acceptance of any Note bearing the Restricted Legend (or any
beneficial interest in such a Note), each Holder thereof and each
owner of a beneficial interest therein acknowledges the
restrictions on transfer of such Note (and any such beneficial
interest) set forth in this Indenture and in the Restricted Legend
and agrees that it will transfer such Note (and any such beneficial
interest) only in accordance with this Indenture and such
legend.
Section 2.02
Form of Trustee’s Certificate of Authentication . The
Trustee’s certificate of authentication shall be in
substantially the following form:
This is one of the
Notes referred to in the within-mentioned Indenture.
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THE BANK OF NEW
YORK MELLON,
as Trustee
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By:
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Authorized
Signatory
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If an appointment
of an Authenticating Agent is made pursuant to Section 7.15,
the Notes may have endorsed thereon, in lieu of the Trustee’s
certificate of authentication, an alternative certificate of
authentication in the following form:
This is one of the
Notes referred to in the within-mentioned Indenture.
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THE BANK OF NEW
YORK MELLON,
as Trustee
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By:
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As
Authenticating Agent
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By:
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Authorized
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Section 3.01
Title and Terms . The Notes shall be known and designated as
the “ % Senior Notes Due
2017” of the Company. The final Stated Maturity of the Notes
shall be October 1, 2017. Interest on the Outstanding
principal amount of Notes will accrue at the rate of
(x) % per annum entirely in cash
(“ Cash Interest ”) and
(y) % per annum in the form of PIK
Interest and will be payable semiannually in arrears on April 1 and
October 1 in each year (each such April 1 and October 1 an “
Interest Payment Date ”), commencing on April 1,
2010, to Holders of record at the close of business on the
immediately preceding March 15 and September 15,
respectively (each such March 15 and September 15 a
“ Regular Record Date ”). Interest on the Notes
will accrue from the most recent date to which interest has been
paid or duly provided for or, if no interest has been paid, from
the Issue Date; provided that if any Note is surrendered for
exchange on or after a record date for an Interest Payment Date
that will occur on or after the date of such exchange, interest on
the Note received in exchange thereof will accrue from the date of
such Interest Payment Date. The Company will pay interest on
overdue principal and, to the extent lawful, on overdue
installments of interest at the interest rate referred to above.
Payments (including principal (including PIK Interest), premium, if
any, and interest) in respect of the Notes shall be subject to all
applicable withholding taxes.
In connection with
the payment of PIK Interest in respect of the Notes, the Company is
entitled to, without the consent of the Holders and without regard
to Section 4.06, increase the outstanding principal amount of
the Notes under this Indenture.
On any Interest
Payment Date with respect to a Global Note, the Trustee shall
increase the principal amount of such Global Note by an amount
equal to the PIK Interest paid, rounded up to the nearest $1.00,
for the relevant interest period on the principal amount of such
Global Note as of the relevant Record Date for such Interest
Payment Date, to the credit of the Holders on such Record Date, pro
rata in accordance with their interests, and an adjustment shall be
made on the books and records of the Trustee (if it is then the
Custodian for such Global Note) with respect to such Global Note,
by the Trustee or the Custodian, to reflect such increase.
Following an increase in the principal amount of the outstanding
Notes as a result of PIK Interest, the Notes will bear Cash
Interest and PIK Interest on such increased principal amount from
and after the date of such Interest Payment Date.
The principal
(including any PIK Interest) of, and premium, if any, and interest
on the Notes shall be payable at the Corporate Trust Office or at
the office or agency of the Company maintained for that purpose
(each, a “ Place of Payment ”) in the manner
provided in Section 4.01(b) ; provided , however, that,
under the circumstances set forth in Section 4.01(b), payment
of interest on a Note may be made by wire transfer of immediately
available funds to the account specified by the Holder
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of a Global
Note or by check mailed to the address of the Person entitled
thereto as such address shall appear in the Register.
All the Notes
shall vote and consent together on all matters as one class, and
none of the Notes will have the right to vote or consent as a class
separate from one another on any matter. All references to
“Notes” for all purposes of this Indenture include any
PIK Interest that is actually paid, and references to
“principal amount” of the Notes includes any increase
in the principal amount of the outstanding Notes as a result of PIK
Interest.
Section 3.02
Denominations . Other than increases in the principal amount
of Notes in respect of PIK Interest, the Notes shall be issuable
only in registered form without coupons and only in denominations
of $2,000 and higher integral multiples of $1,000.
Section 3.03
Execution, Authentication and Delivery and Dating . The
Notes shall be executed on behalf of the Company by an Officer of
such Company. The signature of such Officer on the Notes may be
manual or facsimile.
Notes bearing the
manual or facsimile signature of an individual who was at any time
a proper Officer of the Company shall bind the Company,
notwithstanding that such individual has ceased to hold such office
prior to the authentication and delivery of such Notes or did not
hold such office at the date of such Notes.
At any time and
from time to time after the execution and delivery of this
Indenture, the Company may deliver Notes executed by the Company to
the Trustee for authentication; and the Trustee shall authenticate
and deliver Notes for original issue in the aggregate principal
amount not to exceed $ ,000,000 (plus any PIK Interest), upon a
written order of the Company in the form of an Officer’s
Certificate (an “ Authentication Order ”). Such
Officer’s Certificates shall specify the amount of Notes to
be authenticated and the date on which the Notes are to be
authenticated, whether the Notes are to be issued as one or more
Global Notes or Physical Notes, the name or names of the Holder or
Holders and such other information as the Company may include or
the Trustee may reasonably request.
In authenticating
such Notes, and accepting the additional responsibilities under
this Indenture in relation to such Notes, the Trustee shall receive
and shall rely upon:
(a) A
copy of the resolution or resolutions of the Board of Directors in
or pursuant to which the terms and form of the Notes were
established, certified by the Secretary or an Assistant Secretary
of the Company to have been duly adopted by the Board of Directors
and to be in full force and effect as of the date of such
certificate, and if the terms and form of such Notes are
established by an Officer’s Certificate pursuant to general
authorization of the Board of Directors, such Officer’s
Certificate;
(b) an
executed supplemental indenture, if required;
(c) an
Officer’s Certificate delivered in accordance with
Section 1.06; and
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(d) an
Opinion of Counsel which shall state:
(i) that
the form of such Notes has been established by a supplemental
indenture or by or pursuant to a resolution of the Board of
Directors in accordance with Sections 2.01 and 2.02 and in
conformity with the provisions of this Indenture;
(ii) that
the terms of such Notes have been established in accordance with
Section 2.01 and in conformity with the other provisions of
this Indenture; and
(iii) that
such Notes, when authenticated and delivered by the Trustee and
issued by the Company in the manner and subject to any conditions
specified in such Opinion of Counsel, will constitute valid and
legally binding obligations of the Company, enforceable in
accordance with their terms, subject to bankruptcy, insolvency,
reorganization and other laws of general applicability relating to
or affecting the enforcement of creditors’ rights and to
general equity principles.
All Notes shall be
dated the date of their authentication.
One Business Day
prior to any Interest Payment Date on which the Company pays PIK
Interest with respect to a Note, the Company will deliver to the
Trustee an Officer’s Certificate documenting the payment of
interest with respect to the Notes and the current cumulative
principal amount of the Notes. The Company will pay all interest
whether or not such Officer’s Certificate is
delivered.
No Note shall be
entitled to any benefit under this Indenture or be valid or
obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form provided
for herein executed by the Trustee by manual signature, and such
certificate upon any Note shall be conclusive evidence, and the
only evidence, that such Note has been duly authenticated and
delivered hereunder.
Section 3.04
Temporary Notes . Until definitive Notes are ready for
delivery, the Company may prepare and, upon receipt of an
Authentication Order, the Trustee shall authenticate temporary
Notes. Temporary Notes shall be substantially in the form of
definitive Notes but may have variations that the Company considers
appropriate for temporary Notes as may be reasonably acceptable to
the Trustee. If temporary Notes are issued, the Company will cause
definitive Notes to be prepared without unreasonable delay. After
the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary
Notes at the office or agency of the Company in a Place of Payment,
without charge to the Holder. Upon surrender for cancellation of
any one or more temporary Notes, the Company shall execute and,
upon receipt of an Authentication Order, the Trustee shall
authenticate and deliver in exchange therefor a like principal
amount of definitive Notes of authorized denominations. Until so
exchanged the temporary Notes shall in all respects be entitled to
the same benefits under this Indenture as definitive Notes of the
same series and tenor.
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Section 3.05
Registration, Registration of Transfer and Exchange . The
Company shall cause to be kept at the Corporate Trust Office of the
Trustee a register (the register maintained in such office and in
any other office or agency of the Company in a Place of Payment
being herein sometimes collectively referred to as the “
Register ”) in which, subject to such reasonable
regulations as it may prescribe, the Company shall provide for the
registration of Notes and of transfers of Notes. The Trustee is
hereby appointed “ Registrar ” for the purpose
of registering Notes and transfers of Notes as herein provided. The
Register shall be maintained in written form or in any other form
capable of being reproduced in written form in a reasonable period
of time. The Register shall be conclusive evidence of the ownership
of any Note.
Upon surrender for
transfer of any Note at the office or agency of the Company in a
Place of Payment, in compliance with all applicable requirements of
this Indenture and applicable law, the Company shall execute, and
the Trustee shall authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Notes, of any
authorized denominations and of a like aggregate principal
amount.
At the option of
the Holder, in compliance with all applicable requirements of this
Indenture and applicable laws, Notes may be exchanged for other
Notes, of any authorized denominations and of a like tenor and
aggregate principal amount, upon surrender of the Notes to be
exchanged at such office or agency. Whenever any Notes are so
surrendered for exchange, the Company shall execute, and the
Trustee shall authenticate and deliver, the Notes that the Holder
making the exchange is entitled to receive.
All Notes issued
upon any registration of transfer or exchange of Notes shall be the
valid obligations of the Company, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes
surrendered upon such registration of transfer or
exchange.
Every Note
presented or surrendered for registration of transfer or exchange
shall (if so required by the Company or the Registrar) be duly
endorsed, or be accompanied by a written instrument of transfer, in
form satisfactory to the Company and the Registrar duly executed,
by the Holder thereof or such Holder’s attorney duly
authorized in writing.
No service charge
shall be made for any registration of transfer or exchange or
redemption of Notes, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge that may
be imposed in connection with any registration of transfer or
exchange of Notes under this Section 3.05. Nothing herein
shall preclude any tax withholding required by law or
regulation.
Section 3.06
Mutilated, Destroyed, Lost and Stolen Notes . If
(a) any mutilated Note is surrendered to the Trustee, or the
Company and the Trustee receive evidence to their satisfaction of
the destruction, loss or theft of any Note, and (b) there is
delivered to the Company and the Trustee such security or indemnity
as may be required by them to save each of them harmless from any
loss, liability, cost or expense caused by or in connection with
such substitution, then, in the absence of notice to the Company or
the Trustee that such Note has been acquired by a bona fide
purchaser, the Company shall execute and upon receipt of an
Authentication Order the Trustee shall authenticate
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and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Note, a new Note of like tenor and principal amount, bearing
a number not contemporaneously Outstanding.
In case any such
mutilated, destroyed, lost or stolen Note has become or is about to
become due and payable, the Company in its discretion may, instead
of issuing a new Note, pay such Note.
Upon the issuance
of any new Note under this Section 3.06, the Company may
require the payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in relation thereto and any
other expenses (including the fees and expenses of the Trustee)
connected therewith.
Every new Note
issued pursuant to this Section 3.06 in lieu of any mutilated,
destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Company, whether or not
the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of
this Indenture equally and ratably with any and all other Notes
duly issued hereunder.
The provisions of
this Section 3.06 are exclusive and shall preclude (to the
extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen
Notes.
Section 3.07
Payment of Interest Rights Preserved . Interest on any Note
that is payable, and is punctually paid or duly provided for, on
any Interest Payment Date shall be paid to the Person in whose name
that Note (or one or more predecessor Notes) is registered at the
close of business on the Regular Record Date for such interest
specified in Section 3.01.
Any cash interest
on any Note that is payable, but is not punctually paid or duly
provided for, on any Interest Payment Date (herein called “
Defaulted Interest ”) shall forthwith cease to be
payable to the registered Holder on the relevant Regular Record
Date by virtue of having been such Holder; and such Defaulted
Interest shall be paid by the Company, as provided in
Section 3.07(a) or Section 3.07(b) below:
(a) The
Company may elect to make payment of any Defaulted Interest to the
Persons in whose names the Notes (or their respective predecessor
Notes) are registered at the close of business on a Special Record
Date for the payment of such Defaulted Interest, which shall be
fixed as provided in this Section 3.07(a). The Company shall
notify the Trustee in writing of the amount of Defaulted Interest
proposed to be paid on each Note and the date of the proposed
payment, and at the same time the Company shall deposit with the
Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such Defaulted Interest or shall make
arrangements reasonably satisfactory to the Trustee for such
deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons
entitled to such Defaulted Interest as provided in this
Section 3.07(a). Thereupon the Trustee shall fix a Special
Record Date for the payment of such Defaulted Interest which shall
be not more than 15 nor less than 10 days prior to the date of
the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment. The
Trustee shall promptly notify the
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Company of such
Special Record Date and, in the name and at the expense of the
Company, shall cause notice of the proposed payment of such
Defaulted Interest, the amount thereof and the Special Record Date
and payment date therefor to be delivered to each Holder not less
than 10 days prior to such Special Record Date. Notice of the
proposed payment of such Defaulted Interest and the Special Record
Date therefor having been so delivered, such Defaulted Interest
shall be paid to the Persons in whose names the Notes (or their
respective predecessor Notes) are registered on such Special Record
Date and shall no longer be payable pursuant to the following
Section 3.07(b).
(b) The
Company may make payment of any Defaulted Interest in any other
lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes may be listed, and upon such
notice as may be required by such exchange, if, after notice given
by the Company to the Trustee of the proposed payment pursuant to
this clause (b), such payment shall be deemed practicable by the
Trustee.
Subject to the
foregoing provisions of this Section 3.07, each Note delivered
under this Indenture upon registration of transfer of or in
exchange for or in lieu of any other Note shall carry the rights to
interest accrued and unpaid, and to accrue, that were carried by
such other Note.
Section 3.08
Persons Deemed Owners . Prior to due presentment of a Note
for registration of transfer, the Company, the Trustee and any
agent of the Company or the Trustee may treat the Person in whose
name such Note is registered as the owner of such Note for the
purpose of receiving payment of principal of (and premium, if any,
on) and (subject to Section 3.07) interest on such Note,
whether at Stated Maturity, any Redemption Date or otherwise, and
for all other purposes whatsoever, whether or not such Note be
overdue, and none of the Company, the Guarantors, the Trustee or
any agent of the Company, the Guarantors or the Trustee shall be
affected by notice to the contrary.
Section 3.09
Cancellation . All Notes surrendered for payment,
redemption, registration of transfer or exchange shall, if
surrendered to any Person other than the Trustee, be delivered to
the Trustee and, if not already cancelled, shall be promptly
cancelled by it. The Company may at any time deliver to the Trustee
for cancellation any Notes previously authenticated and delivered
hereunder that the Company may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled
by the Trustee. No Notes shall be authenticated in lieu of or in
exchange for any Notes cancelled as provided in this
Section 3.09, except as expressly permitted by this Indenture
and all Notes so cancelled shall cease to be Outstanding for all
purposes. All cancelled Notes held by the Trustee shall be disposed
of in accordance with the Trustee’s customary
procedures.
Section 3.10
Computation of Interest . Interest on the Notes shall be
computed on the basis of a 360-day year of twelve 30-day
months.
Section 3.11
CUSIP Numbers . The Company in issuing the Notes may use
“ CUSIP ” or “ CINS ” numbers
(if then generally in use) in addition to serial numbers, and, if
so, the Trustee shall use such “ CUSIP ” or
“ CINS ” numbers in addition to serial numbers
in notices of redemption, repurchase or other notices to Holders as
a convenience to Holders ; provided that any such
notice
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may state that
no representation is made as to the correctness of such “
CUSIP ” or “ CINS ” numbers either
as printed on the Notes or as contained in any notice of a
redemption or repurchase and that reliance may be placed only on
the serial or other identification numbers printed on the Notes,
and any such redemption or repurchase shall not be affected by any
defect in or omission of such numbers. The Company will promptly
notify the Trustee of any change in the “ CUSIP
” or “ CINS ” numbers.
Section 3.12
Book-entry Provisions for Global Notes .
(a) Each
Global Note initially shall (i) be registered in the name of
the Depositary for such Global Notes or the nominee of such
Depositary, and (ii) be delivered to the Trustee as custodian
for such Depositary. None of the Company or the Guarantors, nor any
of their agents shall have any responsibility or liability for any
aspect of the records relating to, or payments made on account of
beneficial ownership interests of, a Global Note, or for
maintaining, supervising or reviewing any records relating to such
beneficial ownership interests.
Members of, or
participants in, the Depositary (“ Agent Members
”) shall have no rights under this Indenture with respect to
any Global Note, and the Depositary may be treated by the Company,
the Guarantors, the Trustee and any agent of the Company, the
Guarantors or the Trustee as the absolute owner of such Global Note
for all purposes whatsoever. Notwithstanding the foregoing, nothing
herein shall prevent the Company, the Guarantors, the Trustee or
any agent of the Company, the Guarantors or the Trustee from giving
effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary
and its Agent Members, the operation of customary practices
governing the exercise of the rights of a beneficial owner of any
Note. The registered Holder of a Global Note may grant proxies and
otherwise authorize any Person, including Agent Members and persons
that may hold interests through Agent Members, to take any action
which a Holder is entitled to take under this Indenture or the
Notes.
(b) Interests
of beneficial owners in a Global Note may be transferred in
accordance with the applicable rules and procedures of the
Depositary. Transfers of a Global Note shall be limited to
transfers of such Global Note in whole, but not in part, to the
Depositary, its successors or their respective nominees, except
that Physical Notes shall be transferred to all beneficial owners
in exchange for their beneficial interests in a Global Note in the
event that (A) the Depositary notifies the Company that it is
unwilling or unable to continue as Depositary for the applicable
Global Note and a successor depositary is not appointed by the
Company within 90 days or (B) an Event of Default has
occurred and is continuing and the Registrar has received a request
from the Depositary. In addition, beneficial interests in a Global
Note may be exchanged for Physical Notes upon request but only upon
at least 20 days’ prior written notice given to the
Trustee by or on behalf of the Depositary in accordance with
customary procedures and subject to 3.13(b). In connection with any
transfer or exchange of a portion of the beneficial interest in any
Global Note to beneficial owners for Physical Notes pursuant to
this Section 3.12(b), the Registrar shall record on its books
and records (and make a notation on the Global Note of) the date
and a decrease in the principal amount of such Global Note in an
amount equal to the beneficial interest in the Global Note being
transferred, and the Company shall execute, and the Trustee shall
authenticate and
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deliver, one or
more Physical Notes of like tenor and principal amount of
authorized denominations. In connection with a transfer of an
entire Global Note to beneficial owners pursuant to this paragraph
(b), the applicable Global Note shall be deemed to be surrendered
to the Trustee for cancellation, and the Company shall execute, and
the Trustee shall authenticate and deliver, to each beneficial
owner identified by the Depositary in exchange for its beneficial
interest in the applicable Global Note, an equal aggregate
principal amount at maturity of Physical Notes of authorized
denominations.
(c) Any
beneficial interest in one of the Global Notes that is transferred
to a person who takes delivery in the form of an interest in
another Global Note will, upon transfer, cease to be an interest in
such Global Note and become an interest in the other Global Note
and, accordingly, will thereafter be subject to all procedures
applicable to beneficial interests in such other Global Note for as
long as it remains such an interest.
(d) The
Company, the Guarantors, any other obligor upon the Notes or the
Trustee, in the discretion of any of them, may treat as the Act of
a Holder any instrument or writing of any Person that is identified
by the Depositary as the owner of a beneficial interest in the
Global Note, provided that the fact and date of the execution of
such instrument or writing is proved in accordance with
Section 1.08(b).
Section 3.13
Restrictions on Transfer and Exchange.
(a) The
transfer or exchange of any Note (or a beneficial interest therein)
may only be made in accordance with this Section, Section 3.05
and Section 3.12 and, in the case of a Global Note (or a
beneficial interest therein), the applicable rules and procedures
of the Depositary. The Trustee shall refuse to register any
requested transfer or exchange that does not comply with the
preceding sentence.
(b) Subject
to paragraph (c), the transfer or exchange of any Note (or a
beneficial interest therein) of the type set forth in column A
below for a Note (or a beneficial interest therein) of the type set
forth opposite in column B below may only be made in compliance
with the certification requirements (if any) described in the
clause of this paragraph set forth opposite in column C
below.
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A
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B
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C
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Global Note
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Global Note
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(1)
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Global Note
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Physical Note
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(2)
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Physical Note
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Physical Note
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(2)
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Physical Note
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Global Note
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(3)
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(1) No
certification is required.
(2) The
Person requesting the transfer or exchange must deliver or cause to
be delivered to the Trustee a duly completed Rule 144A
Certificate, and/or an Opinion of Counsel and such other
certifications and evidence as the Company may reasonably require
in order to determine that the proposed transfer or exchange is
being made in compliance with the Securities Act and any applicable
securities laws of any state of the United States; provided
that if the requested transfer or exchange is made by the Holder of
a Physical Note that does not bear the Restricted Legend, then no
certification is required. In the event that a Physical Note that
does not bear the Restricted Legend is surrendered for transfer or
exchange, upon transfer or exchange the Trustee will deliver a
Physical Note that does not bear the Restricted Legend.
(3) The
Person requesting the transfer or exchange must deliver or cause to
be delivered to the Trustee a duly completed Rule 144A
Certificate.
(c) No
certification is required in connection with any transfer or
exchange of any Note (or a beneficial interest therein):
(1) after
such Note is eligible for resale pursuant to Rule 144(d) under the
Securities Act (or a successor provision); provided that the
Company has provided the Trustee with an Officer’s
Certificate to that effect, and the Company may require from any
Person requesting a transfer or exchange in reliance upon this
clause (1) an Opinion of Counsel and any other reasonable
certifications and evidence in order to support such certificate;
or
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