Document:

ex10-1.htm

Exhibit 10.1

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

THIS FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER (this “Amendment”), dated as of November 23, 2009 is by
and among BENIHANA INC., a Delaware corporation (the “Borrower”), the Domestic Subsidiaries of the Borrower party hereto (collectively, the “Guarantors”), the banks and certain financial institutions party hereto (the “Lenders”)
and WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent on behalf of the Lenders under the Credit Agreement (as hereinafter defined) (in such capacity, the “Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement, as amended hereby.

 

W I T N E S S E T H

WHEREAS, the Borrower, the Guarantors, the Lenders and the Agent are parties to that certain Credit Agreement dated as of March 15, 2007 (as amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit
Agreement”);

WHEREAS, the Credit Parties have delivered the Officer’s Certificate for the fiscal quarter ended October 11, 2009 demonstrating that the Credit Parties are not in compliance with the Leverage Ratio financial covenant set forth in Section 7.11(b) of the Credit Agreement (the
“Acknowledged Event of Default”);

WHEREAS, the Credit Parties have requested the Required Lenders (a) waive the Acknowledged Event of Default and (b) amend certain provisions of the Credit Agreement;

WHEREAS, the Required Lenders are willing to (a) waive the Acknowledged Event of Default and (b) make such amendments to the Credit Agreement, in each case, in accordance with and subject to the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

WAIVER

1.1           Waiver of Acknowledged
Event of Default.  Notwithstanding the provisions of the Credit Agreement to the contrary, the Required Lenders hereby waive, on a one-time basis, the Acknowledged Event of Default.

1.2           Effectiveness of Waiver.  This
waiver shall be effective only to the extent specifically set forth herein and shall not (a) be construed as a waiver of any breach or default other than as specifically waived herein nor as a waiver of any breach or default of which the Lenders have not been informed by the Borrower, (b) affect the right of the Lenders to demand compliance by the Borrower with all terms and conditions of the Credit Agreement, except as specifically modified or waived by this Amendment, (c) be deemed a waiver of
any transaction or future action on the part of the Borrower requiring the Lenders’ or the Required Lenders’ consent or approval under the Credit Agreement, or (d) except as waived hereby, be deemed or construed to be a waiver or release of, or a limitation upon, the Agent’s or the Lenders’ exercise of any rights or remedies under the Credit Agreement or any other Credit Document, whether arising as a consequence of any Event of Default (other than the Acknowledged Event of Default)
which may now exist or otherwise, all such rights and remedies hereby being expressly reserved.

 

 

 

ARTICLE II

AMENDMENTS

2.1           New Definitions.  The
following definitions are hereby added to Section 1.1 of the Credit Agreement in the appropriate alphabetical order:

“Debt Issuance” shall mean the issuance of any Indebtedness by any Credit Party or any of its Subsidiaries (excluding any Equity Issuance or any Indebtedness of any Credit Party and its Subsidiaries permitted to be incurred pursuant to Sections
8.1(a)-(e), (g)-(h) hereof).

“Equity Issuance” shall mean any issuance by any Credit Party or any Subsidiary to any Person which is not a Credit Party or a Subsidiary of (a) shares or interests of its Capital Stock, (b) its Capital Stock pursuant to the exercise
of options or warrants or similar rights, (c) any shares or interests of its Capital Stock pursuant to the conversion of any debt securities to equity or (d) warrants or options or similar rights that are exercisable or convertible into shares or interests of its Capital Stock.  The term “Equity Issuance” shall not include (i) any Asset Disposition, (ii) any Debt Issuance or (iii) any issuance of Capital Stock pursuant to (A) the Borrower’s 2007 Equity Incentive Plan
or any other equity incentive plan or equity awards or arrangements or (B) a stockholder rights plan (i.e. “poison pill” plan), in an aggregate amount not to exceed $1,000,000 during the term of this Agreement.

“Flood Hazard Property” shall mean any Mortgaged Property that is in an area designated by the Federal Emergency Management Agency as having special flood or mudslide hazards.

“Fourth Amendment Effective Date” shall mean November 23, 2009.

“Haru Litigation” shall mean that certain litigation against certain Credit Parties brought by the former minority stockholders of Haru Holding Corp. relating to a one-time put option to sell such former minority stockholders’ shares
of Haru Holding Corp.

 

 

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“Mortgage Instrument” shall mean any mortgage, deed of trust or deed to secure debt executed by a Credit Party in favor of the Agent, for the benefit of the Lenders, as the same may be amended, modified, extended, restated, replaced, or supplemented
from time to time.

“Mortgage Policy” shall mean, with respect to any Mortgage Instrument, an ALTA mortgagee title insurance policy issued by a title insurance company (the “Title Insurance Company”)
selected by the Borrower and reasonably satisfactory to the Agent in an amount reasonably satisfactory to the Agent, in form and substance reasonably satisfactory to the Agent.

“Mortgaged Property” shall mean any owned real property of a Credit Party listed on Schedule 6.28 and any other owned property of a Credit Party that is encumbered by a
Mortgage Instrument in favor of the Agent in accordance with the terms of this Agreement.

“Title Insurance Company” shall have the meaning set forth in the definition of “Mortgage Policy”.

2.2           Amendment to Definition
of Applicable Margin.  The definition of the term “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Applicable Margin” means, for purposes of calculating the applicable interest rate for any day for any Revolving Loan, the applicable rate of the Commitment Fee for any day for purposes of Section 3.5(a) and the applicable rate of the
Standby Letter of Credit Fee for any day for purposes of Section 3.5(b)(i), the appropriate Applicable Margin set forth below:

	
Applicable

Margin for

Eurodollar

Loans
	
Applicable

Margin for

Base Rate

Loans
	
Revolver

Commitment

Fee
	
Standby Letter of

Credit Fee

	
4.75%
	
3.75%
	
0.25%
	
4.75%

2.3           Amendment to Definition
of Collateral Documents.  The definition of the term “Collateral Documents” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Collateral Documents” means a collective reference to the Security Agreement, the Pledge Agreement, any Mortgage Instruments and such other documents executed and delivered in connection with the attachment and perfection of the Agent’s
security interests and liens arising thereunder, including without limitation, UCC financing statements and patent, trademark and copyright filings.

 

 

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2.4           Amendment to Definition
of Consolidated EBIT.  The definition of the term “Consolidated EBIT” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Consolidated EBIT” means, for any period, the sum of (a) Consolidated Net Income for such period, plus (b) an amount which, in the determination of Consolidated Net Income for
such period, has been deducted for (i) Consolidated Accrued Interest Expense for such period, (ii) Consolidated Taxes, (iii) non-cash stock-based compensation, all as determined in accordance with GAAP, (iv) non-recurring charges paid or payable as a result of adjudication of the Haru Litigation, in each case as determined in accordance with GAAP and (v) one-time fees, costs and expenses associated with the pledge of the Mortgaged Properties in an aggregate amount not to exceed $500,000.

2.5           Amendment to Definition
of Eurodollar Market Index Rate.  The definition of the term “Eurodollar Market Index Rate” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Eurodollar Market Index Rate” means, for any day, the rate for one month U.S. dollar deposits, as reported on Telerate page 3750 as of 11:00 a.m., London time, on such day, or if such day is not a London business day, then the immediately
preceding London business day (or if not so reported, then as determined by the Agent from another recognized source or interbank quotation). Notwithstanding the foregoing, for purposes of this Agreement, the Eurodollar Market Index Rate shall in no event be less than 1.00% at any time.

2.6           Amendment to Definition
of Eurodollar Rate.  The definition of the term “Eurodollar Rate” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 “Eurodollar Rate” means, for any Eurodollar Loan for any Interest Period therefor, the rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) determined by the Agent to be equal to the quotient obtained by dividing (a) the London Interbank Offered Rate for such Eurodollar Loan for such Interest Period by (b) 1 minus the Eurodollar Reserve Requirement for such Eurodollar Loan for such Interest Period.  Notwithstanding the foregoing, for purposes of this Agreement, the Eurodollar Rate shall in no event be less than 1.00% at any time.

2.7           Amendment to Definition
of Net Cash Proceeds.  The definition of the term “Net Cash Proceeds” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“Net Cash Proceeds” means the aggregate cash proceeds received by the Consolidated Parties in respect of any Asset Disposition, Equity Issuance or Debt Issuance, net of (a) direct costs (including, without limitation, legal, accounting
and investment banking fees, and sales commissions), (b) taxes paid or payable as a result thereof; it being understood that “Net Cash Proceeds” shall include, without limitation, any cash received upon the sale or other disposition of any non-cash consideration received by the Consolidated Parties in any Asset Disposition, Equity Issuance or Debt Issuance and (c) in the case of an Asset Disposition only, any amounts payable in respect of Indebtedness which is secured by, or otherwise related
to, any Property which is the subject thereof to the extent such Indebtedness and any payments in respect thereof are paid with a portion of the proceeds therefrom.

 

 

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2.8           Amendment to Definition
of Revolving Committed Amount.  The definition of the term “Revolving Committed Amount” in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

“Revolving Committed Amount” shall mean (a) from the Fourth Amendment Effective Date through July 17, 2010, $40,500,000, (b) from July 18, 2010 through January 1, 2011, $37,500,000
and (c) from January 2, 2011 and thereafter, $32,500,000.

2.9           Amendment to Section 2.4.  Section
2.4 of the Credit Agreement is hereby deleted in its entirety.

2.10         Amendment to Section 3.3(b).  Section
3.3(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(b)           Mandatory Prepayments.

(i)           Revolving Committed Amount.  If at any time, the sum of the aggregate principal amount of outstanding Revolving Loans plus LOC
Obligations outstanding shall exceed the Revolving Committed Amount, the Borrower immediately shall prepay the applicable Revolving Loans or (after all Revolving Loans have been repaid) cash collateralize the LOC Obligations, in an amount sufficient to eliminate such excess.

(ii)           Asset Dispositions.  Immediately upon the occurrence of any Asset Disposition other than an Excluded Asset Disposition, the
Borrower shall prepay the Loans in an aggregate amount equal to the Net Cash Proceeds of the related Asset Disposition (such prepayment to be applied as set forth in clause (v) below); provided, however, that no mandatory prepayment hereunder shall be required with respect to Net Cash Proceeds received from non-real estate Asset Dispositions if, (A) in any two year period the total
aggregate amount of Net Cash Proceeds received from Asset Dispositions does not exceed $10,000,000; it being expressly agreed that any mandatory prepayment that is required after giving effect to the terms of this subclause (A) shall equal the amount by which such Net Cash Proceeds exceeds $10,000,000 for such two year period, or (B) the Borrower delivers to the Agent a certificate stating that the Credit Parties intend to use such Net Cash Proceeds to acquire like assets useful to the business of the Credit
Parties within 730 days of the receipt of such Net Cash Proceeds, it being expressly agreed that Net Cash Proceeds not so reinvested and in excess of the available basket set forth in subclause (A) hereof shall be applied to prepay the Loans and/or cash collateralize the LOC Obligations immediately thereafter (such prepayment to be applied as set forth in clause (v) below).

(iii)          Debt Issuances.  Immediately upon receipt by any Credit Party or any of its Subsidiaries of proceeds from any Debt Issuance, the Borrower shall prepay the Loans and/or cash collateralize
the LOC Obligations in an aggregate amount equal to one hundred percent (100%) of the Net Cash Proceeds of such Debt Issuance (such prepayment to be applied as set forth in clause (v) below).

 

 

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(iv)          Issuances of Equity.  Immediately upon receipt by any Credit Party or any of its Subsidiaries of proceeds from any Equity Issuance, the Borrower shall prepay the Loans and/or cash
collateralize the LOC Obligations in an aggregate amount equal to one hundred percent (100%) of the Net Cash Proceeds of such Equity Issuance (such prepayment to be applied as set forth in clause (v) below).

 (v)           Application of Mandatory Prepayments.  All amounts required to be paid pursuant to this Section 3.3(b) shall be applied as follows: (A) with respect to all amounts prepaid
pursuant to Section 3.3(b)(i), to Revolving Loans and (after all Revolving Loans have been repaid) to a cash collateral account in respect of LOC Obligations; (B) with respect to all amounts prepaid pursuant to Section 3.3(b)(ii)-(iii), to the Revolving Loans and (after all Revolving Loans have been repaid) to a cash collateral account in respect of LOC Obligations (with a corresponding reduction in the Revolving Committed Amount in an amount equal to all amounts applied pursuant to this clause (B)) and (C) with
respect to all amounts prepaid pursuant to Section 3.3(b)(iv), to the Revolving Loans and (after all Revolving Loans have been repaid) to a cash collateral account in respect of LOC Obligations (with a corresponding reduction in the Revolving Committed Amount in an amount equal to 25% of the amount applied pursuant to this clause (C)).  Within the parameters of the applications set forth above, prepayments shall be applied first to Eurodollar Market Index Rate Loans, second to Base Rate Loans and then
to Eurodollar Loans in direct order of Interest Period maturities.  All prepayments under this Section 3.3(b) shall be subject to Section 3.12.

2.11           Amendment to Section 6.  Section
6 of the Credit Agreement is hereby amended by adding the following Sections to the end of Section 6 to read as follows:

6.28         Owned Properties.

Set forth on Schedule 6.28, as of the Fourth Amendment Effective, is a list of all owned real properties of the Credit Parties.

6.29         Regulation H.

No Mortgaged Property is a Flood Hazard Property unless the Agent shall have received the following: (a) the applicable Credit Party’s written acknowledgment of receipt of written notification from the Agent (i) as to the fact that such Mortgaged Property is a Flood Hazard Property and (ii) as to whether the
community in which each such Flood Hazard Property is located is participating in the National Flood Insurance Program and (b) copies of insurance policies or certificates of insurance of the applicable Credit Party evidencing flood insurance reasonably satisfactory to the Agent and naming the Agent as loss payee on behalf of the Lenders.

 

 

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2.12         Amendment to Section 7.1.  Section
7.1 of the Credit Agreement is hereby amended by (1) amending and restating clause (g) and (2) adding the following clauses (m) and (n) to the end of such Section, in each case to read as follows:

(g)           Monthly Financial Statements.  As soon as available, and in any event within thirty (30) days after the close of each fiscal month of the Consolidated Parties, a consolidated
balance sheet and income statement of the Consolidated Parties, as of the end of such fiscal month, together with related consolidated statements of operations and retained earnings and of cash flows for such fiscal month in each case setting forth in comparative form consolidated figures for the corresponding period of the preceding fiscal year, all such financial information described above to be in reasonable form and detail and reasonably acceptable to the Agent, and accompanied by a certificate of a Responsible
Officer to the effect that such monthly financial statements fairly present in all material respects the financial condition of the Consolidated Parties and have been prepared in accordance with GAAP, subject to changes resulting from audit and normal year-end audit adjustments.

(m)           Management Narratives.  Management narratives, discussion and analysis along with each of the applicable financial statements provided in connection with Sections 7.1(a),
7.1(b) and 7.1(g) above.

(n)           Calculations.  At the time of delivery of the financial statements provided for in Section 7.1(a) above, a certificate of a Responsible Officer detailing the amount of
Asset Dispositions, Debt Issuances and Equity Issuances that were made during the prior fiscal year.

2.13         Amendment to Section 7.11.  Section
7.11(a) and Section 7.11(b) of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

(a)           Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio, as of the last day of each fiscal quarter of the Consolidated Parties for each date of determination occurring
during each of the periods listed below, shall be greater than or equal to the following:

	
Period
	
     Ratio

	
Fourth Amendment Effective Date through and including the Borrower’s 2011 first fiscal quarter end
	
1.10 to 1.0

	
The Borrower’s 2011 second fiscal quarter end and thereafter
	
1.35 to 1.0

 

 

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(b)           Leverage Ratio.  The Leverage Ratio, as of the last day of each fiscal quarter of the Consolidated Parties for each date of determination occurring during each of the periods
listed below, shall be less than or equal to the following:

	
Period
	
Ratio

	
Fourth Amendment Effective Date through and including the Borrower’s 2011 first fiscal quarter end
	
5.00 to 1.0

	
The Borrower’s 2011 second fiscal quarter end through and including the Borrower’s 2011 third fiscal quarter end
	
4.50 to 1.0

	
The Borrower’s 2011 fourth fiscal quarter end and thereafter
	
4.00 to 1.0

2.14         Amendment to Section 7.13.  Section
7.13 of the Credit Agreement is hereby amended by adding the following paragraph to the end of such Section to read as follows:

To the extent otherwise permitted hereunder, if any Credit Party acquires a fee ownership interest in any real property (“Real Estate”) after the Closing Date, it shall provide to the Agent promptly (i) such security documentation as
the Agent may request to cause such Real Estate to be subject at all times to a first priority, perfected Lien (subject in each case to Permitted Liens) in favor of the Agent and (ii) such other documentation as the Agent may reasonably request in connection with the foregoing, including, without limitation, title insurance policies, surveys, appraisals, environmental reports and opinions of counsel, all in form and substance reasonably satisfactory to the Agent.

2.15         Amendment to Section 7.15.  Section
7.15 of the Credit Agreement is hereby amended by adding a new clause (e) to the end of such Section to read as follows:

(e)           Real Property Collateral.  By January 31, 2010 (or such extended period of time as agreed to by the Agent), the Agent shall have received, in form and substance satisfactory
to the Agent:

(i)           evidence as to (1) whether any Mortgaged Property is a Flood Hazard Property and (2) if any Mortgaged Property is a Flood Hazard Property, (x) whether the community in which such Mortgaged Property is located is participating in the National
Flood Insurance Program, (y) the applicable Credit Party’s written acknowledgment of receipt of written notification from the Agent (I) as to the fact that such Mortgaged Property is a Flood Hazard Property and (II) as to whether the community in which each such Flood Hazard Property is located is participating in the National Flood Insurance Program and (z) copies of insurance policies or certificates of insurance of the Credit Parties and their Subsidiaries evidencing flood insurance reasonably satisfactory
to the Agent and naming the Agent as loss payee on behalf of the Lenders; and

 

 

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(ii)           fully executed and notarized Mortgage Instruments encumbering the Mortgaged Properties as to properties owned by the Credit Parties.

(iii)         a title report in respect of each of the Mortgaged Properties;

(iv)          with respect to each Mortgaged Property, a Mortgage Policy assuring the Agent that the Mortgage Instrument with respect to such Mortgaged Property creates a valid and enforceable first priority mortgage lien on such Mortgaged Property, free and clear of
all defects and encumbrances except Permitted Liens, which Mortgage Policy shall be in form and substance reasonably satisfactory to the Agent and shall provide for affirmative insurance and such reinsurance as the Agent may reasonably request, all of the foregoing in form and substance reasonably satisfactory to the Agent;

(v)           maps or plats of an as-built survey of the sites of the Mortgaged Properties certified to the Agent and the Title Insurance Company in a manner reasonably satisfactory to them, dated a date satisfactory to each of the Agent and the Title Insurance
Company by an independent professional licensed land surveyor reasonably satisfactory to each of the Agent and the Title Insurance Company, which maps or plats and the surveys on which they are based shall be sufficient to delete any standard printed survey exception contained in the applicable title policy and be made in accordance with the Minimum Standard Detail Requirements for Land Title Surveys jointly established and adopted by the American Land Title Association and the American Congress on Surveying
and Mapping in 2005, and, without limiting the generality of the foregoing, there shall be surveyed and shown on such maps, plats or surveys the following:  (1)  the locations on such sites of all the buildings, structures and other improvements and the established building setback lines; (2) the lines of streets abutting the sites and width thereof; (3) all access and other easements appurtenant to the sites necessary to use the sites; (4) all roadways, paths, driveways, easements, encroachments
and overhanging projections and similar encumbrances affecting the site, whether recorded, apparent from a physical inspection of the sites or otherwise known to the surveyor; (5) any encroachments on any adjoining property by the building structures and improvements on the sites; and (6) if the site is described as being on a filed map, a legend relating the survey to said map;

(vi)          third-party environmental reviews, to be obtained by the Agent, of all owned Mortgaged Properties, including but not limited to Phase I environmental assessments, together with (if generally available) reliance letters in favor of the Lenders;

 

 

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(vii)         to the extent requested by the Agent, opinions of counsel to the Credit Parties for each jurisdiction in which the Mortgaged Properties are located;

(viii)        to the extent available, zoning letters from each municipality or other Governmental Authority for each jurisdiction in which the Mortgaged Properties are located; and

(ix)          an appraisal, obtained by the Agent, of each owned Mortgaged Property.

2.16         Amendment to Section 8.9.  Section
8.9 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

The Credit Parties will not permit any Consolidated Party to change its fiscal year or amend, modify or change its articles of incorporation (or corporate charter or other similar organizational document) or bylaws (or other similar document) without the prior written consent of the Required Lenders; provided, however,
that Borrower may so amend, modify or change its articles of incorporation (or corporate charter or other similar organizational document) to change the amount of shares of Capital Stock authorized for issuance thereunder and to effect any other amendment, modification or change thereto which does not have an adverse effect on the Lenders.

2.17         Amendment to Section 9.1(c)(i).  Section
9.1(c)(i) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

(i)           default in the performance or observance of any term, covenant or agreement contained in Sections 7.2, 7.9, 7.11, 7.12, 7.13, 7.15 or 8.1 through 8.13, inclusive;

 

ARTICLE III

CONDITIONS TO EFFECTIVENESS

3.1           Closing Conditions.  This
Amendment shall become effective as of the day and year set forth above (the “Amendment Effective Date”) upon satisfaction of the following conditions (in form and substance reasonably acceptable to the Agent):

(a)           Executed Amendment.  The Agent shall have received a copy of this Amendment duly executed by (i) each of the Credit Parties, (ii) the Agent and (iii) the Required Lenders.

(b)           Default.  No Default or Event of Default shall exist.

 

 

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(c)           Amendment Fee.  The Agent shall have received from the Borrower for the account of the Lenders an amendment fee in the amount of $150,000.

(d)           Fees and Expenses.  The Agent shall have received from the Borrower such fees and expenses that are payable in connection with the consummation of the transactions contemplated hereby, including,
without limitation, the reasonable fees and expenses of Moore & Van Allen PLLC.

ARTICLE IV

MISCELLANEOUS

4.1           Amended Terms.  On
and after the Amendment Effective Date, all references to the Credit Agreement in each of the Credit Documents shall hereafter mean the Credit Agreement as amended previously and as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.  This Amendment shall be effective only to the extent specifically set forth herein and shall not, except
as specifically consented to or waived by this Amendment, (a) be construed as a waiver of any breach or default whether or not the Lenders have been informed thereof, (b) affect the right of the Lenders to demand compliance by the Credit Parties with all terms and conditions of the Credit Agreement, (c) be deemed a waiver of any transaction or future action on the part of the Credit Parties requiring the Lenders’ or the Required Lenders’ consent or approval under the Credit Agreement, or (d) be deemed
or construed to be a waiver or release of, or a limitation upon, the Agent’s or the Lenders’ exercise of any rights or remedies under the Credit Agreement or any other Credit Document, whether arising as a consequence of any Default or Event of Default which may now exist or otherwise, all such rights and remedies hereby being expressly reserved.

4.2           Representations and Warranties
of Credit Parties.  Each of the Credit Parties represents and warrants as follows:

(a)           It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

(b)           This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization,
fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

(c)           No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.

 

 

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(d)           The representations and warranties set forth in Section 6 of the Credit Agreement are true and correct as of the date hereof (except for those which expressly relate to an earlier date).

(e)           After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

(f)           The Collateral Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Security Documents and
prior to all Liens other than Permitted Liens.

(g)           The Credit Party Obligations are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

4.3           Reaffirmation of Credit
Party Obligations.  Each Credit Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Credit Party Obligations.

4.4           Credit Document.  This
Amendment shall constitute a Credit Document under the terms of the Credit Agreement.

4.5           Expenses.  The
Borrower agrees to pay all reasonable costs and expenses of the Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Agent’s legal counsel.

4.6           Further Assurances.  The
Credit Parties agree to promptly take such action, upon the request of the Agent, as is necessary to carry out the intent of this Amendment.

4.7           Entirety.  This
Amendment and the other Credit Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

4.8           Counterparts; Telecopy.  This
Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.

4.9           No Actions, Claims, Etc.  As
of the date hereof, each of the Credit Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Agent, the Lenders, or the Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under this Credit Agreement on or prior to the date hereof.

 

 

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4.10         GOVERNING LAW.  THIS
AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA.

4.11         Successors and Assigns.  This
Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

4.12         General Release.  In
consideration of the Agent, on behalf of the Lenders, entering into this Amendment, each Credit Party hereby releases the Agent, the Lenders, and the Agent’s and the Lenders’ respective officers, employees, representatives, agents, counsel and directors from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure
to act under the Credit Agreement on or prior to the date hereof.

4.13         Consent to Jurisdiction; Service of
Process; Waiver of Jury Trial.  The jurisdiction, services of process and waiver of jury trial provisions set forth in Sections 11.10, 11.16 and 11.18 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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BENIHANA INC.

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

	
BORROWER:
	BENIHANA INC.,	  
	  	a Delaware corporation	  
	  	  	  	  
	  	
By:
	/s/ Juan C. Garcia	  
	  	  	Juan C. Garcia	  
	  	  	President	  
	
GUARANTORS:
	  	  	  
	  	
1501 BROADWAY RESTAURANT CORP.,
	  
	  	
a New York corporation
	  
	  	
BENIHANA BETHESDA CORP.,
	  
	  	
a New York corporation
	  
	  	
BENIHANA BRICKELL STATION CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA BROOMFIELD CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA CARLSBAD CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA CHANDLER CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA CHICAGO CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA ENCINO CORP.,
	  
	  	
a California corporation
	  
	  	
BENIHANA INTERNATIONAL, INC.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA LINCOLN ROAD CORP.,
	  
	  	
a Florida corporation
	  
	  	
BENIHANA LOMBARD CORP.,
	  
	  	
an Illinois corporation
	  
	  	
BENIHANA MARINA CORP.,
	  
	  	
a California corporation
	  
	  	
BENIHANA MONTEREY CORPORATION,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA NATIONAL CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA NATIONAL OF FLORIDA CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA NEW YORK CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA ONTARIO CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA ORLANDO CORP.,
	  
	  	
a Delaware corporation
	  

[signature pages continue]

 

 

 

BENIHANA INC.

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

 

	  	
BENIHANA PLYMOUTH MEETING CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA OF PUENTE HILLS CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA SCHAUMBURG CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA SUNRISE CORPORATION,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA TUCSON CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA WESTBURY CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA WESTWOOD CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA WHEELING CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BIG SPLASH KENDALL CORP.,
	  
	  	
a Delaware corporation
	  
	  	
HARU AMSTERDAM AVENUE CORP.,
	  
	  	
a New York corporation
	  
	  	
HARU FOOD CORP.,
	  
	  	
a New York corporation
	  
	  	
HARU GRAMERCY PARK CORP.,
	  
	  	
a New York corporation
	  
	  	
HARU HOLDING CORP.,
	  
	  	
a Delaware corporation
	  
	  	
HARU PARK AVENUE CORP.,
	  
	  	
a Delaware corporation
	  
	  	
HARU PHILADELPHIA CORP.,
	  
	  	
a Delaware corporation
	  
	  	
HARU PRUDENTIAL CORP.,
	  
	  	
a Delaware corporation
	  
	  	
HARU THIRD AVENUE CORP.,
	  
	  	
a New York corporation
	  
	  	
HARU TOO, INC.,
	  
	  	
a New York corporation
	  
	  	
HARU WALL STREET CORP.,
	  
	  	
a Delaware corporation
	  
	  	
MAXWELL’S INTERNATIONAL INC.,
	  
	  	
a Delaware corporation
	  
	  	
NOODLE TIME, INC.,
	  
	  	
a Florida corporation
	  
	  	
RA AHWATUKEE RESTAURANT CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA FASHION VALLEY CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA KIERLAND RESTAURANT CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SCOTTSDALE CORP.,
	  
	  	
a Delaware corporation
	  

[signature pages continue]

 

 

 

BENIHANA INC.

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

 

	  	
RA TEMPE CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI BALTIMORE CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI CHICAGO CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI CORONA CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI DENVER CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI GLENVIEW CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI HUNTINGTON BEACH CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI HOLDING CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI LAS VEGAS CORP.,
	  
	  	
a Nevada corporation
	  
	  	
RA SUSHI LOMBARD CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI MESA CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI PALM BEACH GARDENS CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI SAN DIEGO CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI SOUTH MIAMI CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI TORRANCE CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI TUCSON CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI TUSTIN CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI WESTWOOD CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RUDY’S RESTAURANT GROUP, INC.,
	  
	  	
a Nevada corporation
	  
	  	
TEPPAN RESTAURANTS LTD.,
	  
	  	
an Oregon corporation
	  
	  	
THE SAMURAI, INC.,
	  
	  	
a New York corporation
	  

[signature pages continue]

 

 

 

BENIHANA INC.

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

 

	  	
BENIHANA LAS COLINAS CORP.,
	  
	  	
a Texas corporation
	  
	  	
BENIHANA OF TEXAS, INC.,
	  
	  	
a Texas corporation
	  
	  	
BENIHANA WOODLANDS CORP.,
	  
	  	
a Texas corporation
	  
	  	
RA HOUSTON CORP.,
	  
	  	
a Texas corporation
	  
	  	
RA SUSHI CITY CENTER CORP.,
	  
	  	
a Texas corporation
	  
	  	
RA SUSHI PLANO CORP.,
	  
	  	
a Texas corporation
	  
	  	
BENIHANA MEADOWLANDS CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI PEMBROKE PINES CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA COLUMBUS CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA CORAL SPRINGS CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI CHINO HILLS CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI LEAWOOD CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI LEAWOOD CORP.,
	  
	  	
a Kansas corporation
	  
	  	
RA SUSHI ORLANDO CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA PLANO CORP.,
	  
	  	
a Texas corporation
	  
	  	
RA SUSHI PITTSBURGH CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI ATLANTA MIDTOWN CORP.,
	  
	  	
a Delaware corporation
	  
	  	
BENIHANA WINTER PARK CORP.,
	  
	  	
a Delaware corporation
	  
	  	
RA SUSHI FORT WORTH CORP.,
	  
	  	
a Texas corporation
	  
	  	  	  	  
	  	
By:
	/s/ Juan C. Garcia	  
	  	
Name:
	Juan C. Garcia	  
	  	
Title:
	President	  

 

 

 

BENIHANA INC.

FOURTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

 

	
ADMINISTRATIVE AGENT
	  	  	  
	
AND LENDER:
	WACHOVIA BANK, NATIONAL ASSOCIATION,	  
	  	as a Lender and as Agent	  
	  	  	  	  
	  	  	  	  
	  	
By:
	/s/ John C. Costa	  
	  	
Name:
	John C. Costa	  
	  	
Title:
	Senior Vice President	  

 

 

 

 

 

 

Schedule 6.28

Owned Properties

 

Benihana Owned Locations

	
Name
	
Address

	
Alpharetta
	
2365 Mansell Road, Alpharetta, GA  30022

	
Anchorage
	
1100 West 8th Avenue, Anchorage, AK  99501

	
Dallas
	
7775 Banner Drive, Dallas, TX  75251

	
Farmington Hills
	
21150 Haggerty Road, Northville, MI  48167

	
Fort Lauderdale
	
276 E. Commercial Blvd., Fort Lauderdale, FL  33308

	
Lombard
	
747 E. Butterfield Road, Lombard, IL  60148

	
Maple Grove
	
11840 Fountains Way N., Maple Grove, MN  55369

	
Miami Beach
	
1665 NE 79th Street Causeway, North Bay Village, FL  33141

	
Minneapolis
	
850 Louisiana Avenue, South Golden Valley, MN  55426

	
Schaumburg
	
1200 E. Higgins Road, Schaumburg, IL  60173

	
Stuart
	
3602 SE Ocean Blvd., Stuart, FL  34996

	
Wheeling
	
150 N. Milwaukee Avenue, Wheeling, IL  60090

	
The Woodlands
	
1720 Lake Woodlands Drive, The Woodlands, TX  77380ex4-1.htm

EXHIBIT 4.1

 

BENIHANA INC.

 

INDENTURE

 

Dated as of [________________,____]

[_________________________]

as Trustee

 

  

  

  

 

TABLE OF CONTENTS

	  	  	  
	
Article I DEFINITIONS AND INCORPORATION BY REFERENCE
	
1

	
Section 1.1
	
DEFINITIONS
	
1

	
Section 1.2
	
OTHER DEFINITIONS
	
5

	
Section 1.3
	
INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT
	
5

	
Section 1.4
	
RULES OF CONSTRUCTION
	
5

	  	  	  
	
Article II THE SECURITIES
	
6

	
Section 2.1
	
ISSUABLE IN SERIES
	
6

	
Section 2.2
	
ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES
	
6

	
Section 2.3
	
EXECUTION AND AUTHENTICATION
	
8

	
Section 2.4
	
REGISTRAR AND PAYING AGENT
	
9

	
Section 2.5
	
PAYING AGENT TO HOLD MONEY IN TRUST
	
10

	
Section 2.6
	
SECURITYHOLDER LISTS
	
10

	
Section 2.7
	
TRANSFER AND EXCHANGE
	
10

	
Section 2.8
	
MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES
	
10

	
Section 2.9
	
OUTSTANDING SECURITIES
	
11

	
Section 2.10
	
TREASURY SECURITIES
	
12

	
Section 2.11
	
TEMPORARY SECURITIES
	
12

	
Section 2.12
	
CANCELLATION
	
12

	
Section 2.13
	
DEFAULTED INTEREST
	
12

	
Section 2.14
	
GLOBAL SECURITIES
	
12

	
Section 2.15  
	
CUSIP NUMBERS
	
14

	  	  	  
	
Article III REDEMPTION
	
14

	
Section 3.1
	
NOTICE TO TRUSTEE
	
14

	
Section 3.2
	
SELECTION OF SECURITIES TO BE REDEEMED
	
14

	
Section 3.3
	
NOTICE OF REDEMPTION
	
14

	
Section 3.4
	
EFFECT OF NOTICE OF REDEMPTION
	
15

	
Section 3.5
	
DEPOSIT OF REDEMPTION PRICE
	
15

	
Section 3.6
	
SECURITIES REDEEMED IN PART
	
15

	  	  	  
	
Article IV COVENANTS
	
15

	
Section 4.1
	
PAYMENT OF PRINCIPAL AND INTEREST
	
15

	
Section 4.2
	
SEC REPORTS
	
15

	
Section 4.3
	
COMPLIANCE CERTIFICATE
	
16

	
Section 4.4
	
STAY, EXTENSION AND USURY LAWS
	
16

	  	  	  
	
Article V SUCCESSOR ENTITY
	
16

	
Section 5.1  
	
COMPANY MAY CONSOLIDATE, ETC
	
16

	
Section 5.2
	
SUCCESSOR ENTITY SUBSTITUTED
	
17

	
Section 5.3
	
EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE
	
17

	  	  	  
	
Article VI DEFAULTS AND REMEDIES
	
17

  

i

  

	
Section 6.1
	
EVENTS OF DEFAULT
	
17

	
Section 6.2
	
ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT
	
19

	
Section 6.3
	
COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE
	
20

	
Section 6.4
	
TRUSTEE MAY FILE PROOFS OF CLAIM
	
20

	
Section 6.5
	
TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES
	
21

	
Section 6.6
	
APPLICATION OF MONEY COLLECTED
	
21

	
Section 6.7
	
LIMITATION ON SUITS
	
21

	
Section 6.8
	
UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL AND INTEREST
	
22

	
Section 6.9
	
RESTORATION OF RIGHTS AND REMEDIES
	
22

	
Section 6.10  
	
RIGHTS AND REMEDIES CUMULATIVE
	
22

	
Section 6.11
	
DELAY OR OMISSION NOT WAIVER
	
23

	
Section 6.12
	
CONTROL BY HOLDERS
	
23

	
Section 6.13
	
WAIVER OF PAST DEFAULTS
	
23

	
Section 6.14
	
UNDERTAKING FOR COSTS
	
23

	  	  	  
	
Article VII TRUSTEE
	
24

	
Section 7.1
	
DUTIES OF TRUSTEE
	
24

	
Section 7.2
	
RIGHTS OF TRUSTEE
	
25

	
Section 7.3
	
INDIVIDUAL RIGHTS OF TRUSTEE
	
26

	
Section 7.4
	
TRUSTEE’S DISCLAIMER
	
26

	
Section 7.5
	
NOTICE OF DEFAULTS
	
26

	
Section 7.6
	
REPORTS BY TRUSTEE TO HOLDERS
	
26

	
Section 7.7
	
COMPENSATION AND INDEMNITY
	
26

	
Section 7.8
	
REPLACEMENT OF TRUSTEE
	
27

	
Section 7.9
	
SUCCESSOR TRUSTEE BY MERGER, ETC.
	
28

	
Section 7.10
	
ELIGIBILITY; DISQUALIFICATION
	
28

	
Section 7.11
	
PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY
	
28

	  	  	  
	
Article VIII SATISFACTION AND DISCHARGE; DEFEASANCE
	
28

	
Section 8.1
	
SATISFACTION AND DISCHARGE OF INDENTURE
	
28

	
Section 8.2
	
APPLICATION OF TRUST FUNDS; INDEMNIFICATION
	
29

	
Section 8.3
	
LEGAL DEFEASANCE OF SECURITIES OF ANY SERIES
	
30

	
Section 8.4
	
COVENANT DEFEASANCE
	
31

	
Section 8.5
	
REPAYMENT TO COMPANY
	
32

	  	  	  
	
Article IX AMENDMENTS AND WAIVERS
	
33

	
Section 9.1
	
WITHOUT CONSENT OF HOLDERS
	
33

	
Section 9.2
	
WITH CONSENT OF HOLDERS
	
33

	
Section 9.3
	
LIMITATIONS
	
34

	
Section 9.4
	
COMPLIANCE WITH TRUST INDENTURE ACT
	
34

	
Section 9.5
	
REVOCATION AND EFFECT OF CONSENTS
	
34

	
Section 9.6
	
NOTATION ON OR EXCHANGE OF SECURITIES
	
35

	
Section 9.7
	
TRUSTEE PROTECTED
	
35

  

ii

  

	
Article X MISCELLANEOUS
	
35

	
Section 10.1
	
TRUST INDENTURE ACT CONTROLS
	
35

	
Section 10.2
	
NOTICES
	
35

	
Section 10.3
	
COMMUNICATION BY HOLDERS WITH OTHER HOLDERS
	
36

	
Section 10.4
	
CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT
	
36

	
Section 10.5
	
STATEMENTS REQUIRED IN CERTIFICATE OR OPINION
	
36

	
Section 10.6
	
RULES BY TRUSTEE AND AGENTS
	
36

	
Section 10.7
	
LEGAL HOLIDAYS
	
37

	
Section 10.8
	
NO RECOURSE AGAINST OTHERS
	
37

	
Section 10.9
	
COUNTERPARTS
	
37

	
Section 10.10  
	
GOVERNING LAWS
	
37

	
Section 10.11
	
NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS
	
37

	
Section 10.12
	
SUCCESSORS
	
37

	
Section 10.13
	
SEVERABILITY
	
37

	
Section 10.14
	
TABLE OF CONTENTS, HEADINGS, ETC
	
37

	
Section 10.15
	
SECURITIES IN A FOREIGN CURRENCY
	
38

	
Section 10.16
	
JUDGMENT CURRENCY
	
38

	  	  	  
	Article XI SINKING FUNDS	
39

	
Section 11.1
	
APPLICABILITY OF ARTICLE
	
39

	
Section 11.2
	
SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES
	
39

	
Section 11.3
	
REDEMPTION OF SECURITIES FOR SINKING FUND
	
40

  

iii

  

 

BENIHANA INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of [_____________, _____]

 

	
SECTION 310
	
(A)(1)
	
7.10

	  	
(A)(2)
	
7.10

	  	
(A)(3)
	
NOT APPLICABLE

	  	
(A)(4)
	
NOT APPLICABLE

	  	
(A)(5)
	
7.10

	  	
(B)
	
7.10

	
SECTION 311
	
(A)
	
7.11

	  	
(B)
	
7.11

	  	
(C)
	
NOT APPLICABLE

	
SECTION 312
	
(A)
	
2.6

	  	
(B)
	
10.3

	  	
(C)
	
10.3

	
SECTION 313
	
(A)
	
7.6

	  	
(B)(1)
	
7.6

	  	
(B)(2)
	
7.6

	  	
(C)(1)
	
7.6

	  	
(D)
	
7.6

	
SECTION 314
	
(A)
	
4.2, 10.5

	  	
(B)
	
NOT APPLICABLE

	  	
(C)(1)
	
10.4

	  	
(C)(2)
	
10.4

	  	
(C)(3)
	
NOT APPLICABLE

	  	
(D)
	
NOT APPLICABLE

	  	
(E)
	
10.5

	  	
(F)
	
NOT APPLICABLE

	
SECTION 315
	
(A)
	
7.1

	  	
(B)
	
7.5

	  	
(C)
	
7.1

	  	
(D)
	
7.1

	  	
(E)
	
6.14

	
SECTION 316
	
(A)
	
2.10

	  	
(A)(1)(A)
	
6.12

	  	
(A)(1)(B)
	
6.13

	  	
(B)
	
6.8

	
SECTION 317
	
(A)
	
6.3

	  	
(A)(1)
	
6.4

	  	
(A)(2)
	
2.5

	
SECTION 318
	
(A)
	
10.1

Note: This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

 

iv

 

INDENTURE

Indenture dated as of [________________] between Benihana Inc., a Delaware corporation (“Company”), and [________________],
as trustee (“Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

 

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1 DEFINITIONS.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified therein and which are owing to such Holders.

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Service Agent.

 

“Authorized Newspaper” means a newspaper in an official language of the country of publication customarily published at least once a day for at least five days in each calendar week and of general circulation in the place in connection with which the term is used. If it shall be impractical in the opinion of the Trustee to make
any publication of any notice required hereby in an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by the Trustee shall constitute a sufficient publication of such notice.

 

“Bearer” means anyone in possession from time to time of a Bearer Security.

 

“Bearer Security” means any Security, including any interest coupon appertaining thereto, that does not provide for the identification of the Holder thereof.

 

“Board of Directors” means the Board of Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

 

1

 

 

“Business Day” means, unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to
close.

 

“Company” means the party named as the “Company” in the first paragraph of this Indenture until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by two Officers.

 

“Company Request” means a written request signed in the name of the Company by (i) its Chairman of the Board, its Chief Executive Officer, its President or any Vice President, and (ii) its Chief Financial Officer, its Treasurer, any Assistant Treasurer, its Secretary or an Assistant Secretary, and delivered to the Trustee.

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered.

 

“Debt” of any person as of any date means, without duplication, all indebtedness of such person in respect of borrowed money, including all interest, fees and expenses owed in respect thereto (whether or not the recourse of the lender is to the whole of the assets of such person or only to a portion thereof), or evidenced by bonds,
notes, debentures or similar instruments.

 

“Default” means any event which is, or after notice or passage of time would be, an Event of Default.

 

“Depository” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depository for such Series by the Company, which Depository shall be a clearing agency registered under the Exchange Act; and if at any time there is more
than one such person, “Depository” as used with respect to the Securities of any Series shall mean the Depository with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Dollars” means the currency of the United States of America.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of the United States of America.

 

 

2

 

 

“Foreign Government Obligations” means with respect to Securities of any Series that are denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged or (ii) obligations of a person controlled
or supervised by or acting as an agency or instrumentality of such government the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by such government, which, in either case under clauses (i) or (ii), are not callable or redeemable at the option of the issuer thereof.

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depository for such Series or its nominee, and registered in the name of such Depository or nominee.

 

“Holder” or “Securityholder” means a person in whose name a Security is registered or the holder of a Bearer Security.

 

“Indenture” means this Indenture as amended from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

 

“Maturity,” when used with respect to any Security or installment of principal thereof, means the date on which the principal of such Security or such installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption, notice of
option to elect repayment or otherwise.

 

“Officer” means the Chairman of the Board, the Chief Executive Officer, any President, any Vice-President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by two Officers.

 

“Opinion of Counsel” means a written opinion of legal counsel, which counsel may be an employee of or counsel to the Company.

 

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 

“SEC” means the Securities and Exchange Commission.

 

 

3

 

 

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.

 

“Stated Maturity” when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable.

 

“Subsidiary” of any specified person means any corporation of which an amount of outstanding stock representing by the terms thereof at least a majority of the ordinary voting power for the election of directors of such corporation (irrespective of whether or not at the time stock of any other class or classes of such corporation
shall have or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned by such person, or by one or more other Subsidiaries, or by such person and one or more other Subsidiaries.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code Section (Section 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as
so amended.

 

“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 or include each person who is then a Trustee hereunder, and if at any time
there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are (i) direct obligations of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a person controlled or supervised by and acting as an agency or instrumentality of the United States of America the payment of which
is unconditionally guaranteed as a full faith and credit obligation by the United States of America, and which in the case of (i) and (ii) are not callable or redeemable at the option of the issuer thereof, and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt,
provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depository receipt.

 

 

4

 

 

Section 1.2 OTHER DEFINITIONS.

 

	TERM	  	DEFINED IN

SECTION
	
“Bankruptcy Law”
	  	
6.1

	
“Custodian”
	 	
6.1

	
“Event of Default”
	  	
6.1

	
“Journal”
	  	
10.15

	
“Judgment Currency”
	  	
10.16

	
“Legal Holiday”
	  	
10.7

	
“mandatory sinking fund payment”
	  	
11.1

	
“Market Exchange Rate”
	  	
10.15

	
“New York Banking Day”
	  	
10.16

	
“optional sinking fund payment”
	  	
11.1

	
“Paying Agent”
	  	
2.4

	
“Registrar”
	  	
2.4

	
“Required Currency”
	  	
10.16

	
“Service Agent”
	  	
2.4

	
“successor person”
	  	
5.1

 

Section 1.3 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder. “indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.4 RULES OF CONSTRUCTION.

 

Unless the context otherwise requires:

 

(a) a term has the meaning assigned to it;

 

(b) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles;

 

(c) references to “generally accepted accounting principles” shall mean generally accepted accounting principles in effect as of the time when and for the period as to which such accounting principles are to be applied;

 

 

5

 

 

(d) “or” is not exclusive;

 

(e) words in the singular include the plural, and in the plural include the singular; and

 

(f) provisions apply to successive events and transactions.

 

ARTICLE II

THE SECURITIES

 

Section 2.1 ISSUABLE IN SERIES.

 

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of a Series shall be identical except as may be set forth in a Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the
adoption of the terms thereof pursuant to the authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate or supplemental indenture may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be
equally and ratably entitled to the benefits of the Indenture.

 

Section 2.2 ESTABLISHMENT OF TERMS OF SERIES OF SECURITIES.

 

At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Section 2.2(a), and, either as to such Securities within the Series or as to the Series generally, in the case of Section 2.2(b) through Section 2.2(t) by a Board Resolution, a supplemental indenture
or an Officers’ Certificate pursuant to authority granted under a Board Resolution:

 

(a)          the title of the Series (which shall distinguish the Securities of that particular Series from the Securities of any other Series);

 

(b)          the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

 

(c)          any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or
in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

 

(d)          the date or dates on which the principal of the Securities of the Series is payable;

 

(e)          the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the
Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

 

 

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(f)          the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, or the method of such payment, if by wire transfer, mail or other means;

 

(g)          if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

 

(h)          the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which
and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(i)           the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

 

(j)           if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

 

(k)          the forms of the Securities of the Series in bearer or fully registered form (and, if in fully registered form, whether the Securities will be issuable as Global Securities);

 

(l)           if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

 

(m)          the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency;

 

(n)          the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities of the Series will be made;

 

(o)          if payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with
respect to such payments will be determined;

 

(p)          the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined, if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a
commodity, commodity index, stock exchange index or financial index;

 

(q)          the provisions, if any, relating to any security provided for the Securities of the Series;

 

 

7

 

 

(r)          any addition to or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant
to Section 6.2;

 

(s)          any addition to or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;

 

(t)          any other terms of the Securities of the Series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 9.1, but which may modify or delete any provision of this Indenture insofar as it applies
to such Series); and

 

(u)          any depositories, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein.

 

(v)          All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to a Board Resolution, supplemental indenture or Officers’
Certificate, and the authorized principal amount of any Series may not be increased to provide for issuances of additional Securities of such Series, unless otherwise provided in such Board Resolution, supplemental indenture or Officers’ Certificate.

 

Section 2.3 EXECUTION AND AUTHENTICATION.

 

Two Officers shall sign the Securities for the Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officers’ Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may authorize authentication and delivery pursuant to oral
or electronic instructions from the Company or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in writing. Each Security shall be dated the date of its authentication unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officers’ Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officers’ Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms
of the Securities of that Series or of Securities within that Series, (b) an Officers’ Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

 

 

8

 

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an
Agent to deal with the Company or an Affiliate.

 

Section 2.4 REGISTRAR AND PAYING AGENT.

 

The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration
of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be served (“Service Agent”). The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any time the
Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one or more co-registrars, additional paying agents or additional service agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and
Service Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional service agent. The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Service Agent” includes
any additional service agent.

 

The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Service Agent for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

 

9

 

 

Section 2.5 PAYING AGENT TO HOLD MONEY IN TRUST.

 

The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee
of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary) shall have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund
for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.

 

Section 2.6 SECURITYHOLDER LISTS.

 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312( a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days before
each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.7 TRANSFER AND EXCHANGE.

 

Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the mailing of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business
on the day of such mailing, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

Section 2.8 MUTILATED, DESTROYED, LOST AND STOLEN SECURITIES.

 

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

 

10

 

 

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be required by them to hold each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such
Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

 

Upon the issuance of any new Security under this Section, 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 Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this
Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

 

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

 

Section 2.9 OUTSTANDING SECURITIES.

 

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 

A Security shall cease to be outstanding if the Company or any of its Subsidiaries holds the Security.

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that
would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

 

11

 

 

Section 2.10 TREASURY SECURITIES.

 

In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver Securities of a Series owned by the Company or an Affiliate shall be disregarded, except that for the purposes of determining whether the Trustee shall be
protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that the Trustee knows are so owned shall be so disregarded.

 

Section 2.11 TEMPORARY SECURITIES.

 

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee upon request shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

 

Section 2.12 CANCELLATION.

 

The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered for transfer, exchange, payment, replacement or cancellation
and shall destroy such canceled Securities (subject to the record retention requirement of the Exchange Act) and deliver a certificate of such destruction to the Company, unless the Company otherwise directs. The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.

 

Section 2.13 DEFAULTED INTEREST.

 

If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment date.
At least 30 days before the record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14 GLOBAL SECURITIES.

 

(a)          Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officers’ Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the
Depository for such Global Security or Securities.

 

 

 

12

 

 

(b)          Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered
in the names of Holders other than the Depository for such Security or its nominee only if (i) such Depository notifies the Company that it is unwilling or unable to continue as Depository for such Global Security or if at any time such Depository ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90 days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate to the effect
that such Global Security shall be so exchangeable or (iii) an Event of Default with respect to the Securities represented by such Global Security shall have happened and be continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depository shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

 

Except as provided in this Section 2.14(b), a Global Security may not be transferred except as a whole by the Depository with respect to such Global Security to a nominee of such Depository, by a nominee of such Depository to such Depository or another nominee of such Depository or by the Depository or any such nominee to a successor Depository
or a nominee of such a successor Depository.

 

(c)          Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depository or a nominee of the Depository. This Security is exchangeable for Securities registered in the name of a person other than the Depository or its nominee only in the limited circumstances described
in the Indenture, and may not be transferred except as a whole by the Depository to a nominee of the Depository, by a nominee of the Depository to the Depository or another nominee of the Depository or by the Depository or any such nominee to a successor Depository or a nominee of such a successor Depository.”

 

(d)          Acts of Holders. The Depository, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take
under the Indenture.

 

(e)          Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

(f)          Consents, Declaration and Directions. Except as provided in Section 2.14(e), the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security
as shall be specified in a written statement of the Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

 

 

13

 

 

Section 2.15 CUSIP NUMBERS.

 

The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.

 

ARTICLE III

REDEMPTION

 

Section 3.1 NOTICE TO TRUSTEE.

 

The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of Securities is redeemable
and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of the redemption date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice at least 30 days before the redemption date (or such shorter notice as may be acceptable to the Trustee).

 

Section 3.2 SELECTION OF SECURITIES TO BE REDEEMED.

 

Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate. The Trustee shall
make the selection from Securities of the Series outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000. Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.2(j), the minimum principal denomination for each Series and integral
multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 

Section 3.3 NOTICE OF REDEMPTION.

 

Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 30 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption by first-class mail to each Holder whose Securities are to be redeemed and if any Bearer
Securities are outstanding, publish on one occasion a notice in an Authorized Newspaper.

 

(a)          The notice shall identify the Securities of the Series to be redeemed and shall state:

 

 

14

 

 

(b)          the redemption date;

 

(c)          the redemption price;

 

(d)          the name and address of the Paying Agent;

 

(e)          that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

(f)           that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date; and

 

(g)          any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed. At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense.

 

Section 3.4 EFFECT OF NOTICE OF REDEMPTION.

 

Once notice of redemption is mailed or published as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price. A notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued
interest to the redemption date.

 

Section 3.5 DEPOSIT OF REDEMPTION PRICE.

 

On or before the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.6 SECURITIES REDEEMED IN PART.

 

Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

ARTICLE IV

COVENANTS

 

Section 4.1 PAYMENT OF PRINCIPAL AND INTEREST.

 

The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.2 SEC REPORTS.

 

The Company shall deliver to the Trustee within 45 days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section
13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a).

 

 

15

 

 

Section 4.3 COMPLIANCE CERTIFICATE.

 

The Company shall deliver to the Trustee, within 90 days after the end of each fiscal year of the Company, an Officers’ Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether
the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events
of Default of which he may have knowledge).

 

The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, forthwith upon becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 4.4 STAY, EXTENSION AND USURY LAWS.

 

The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture
or the Securities; and the Company (to the extent it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law has been enacted.

 

ARTICLE V

SUCCESSOR ENTITY

 

Section 5.1 COMPANY MAY CONSOLIDATE, ETC.

 

Except as otherwise provided as contemplated by Section 2.2 for a particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, nothing contained in this Indenture shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated with the Company) or successive
consolidations or mergers in which the Company or its successor or successors shall be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor or successors as an entirety, or substantially as an entirety, to any other Person (whether or not affiliated with the Company or its successor or successors) authorized to acquire and operate the same; provided, however, (a) the Company hereby covenants and agrees that, upon any such consolidation
or merger (in each case, if the Company is not the survivor of such transaction), sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium, if any) and interest on all of the Securities in accordance with the terms of each Series, according to their tenor, and the due and punctual performance and observance of all the covenants and conditions of this Indenture with respect to each Series or established with respect to such Series pursuant to Section 2.2 to be
kept or performed by the Company shall be expressly assumed, by supplemental indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged, or by the entity which shall have acquired such property and (b) in the event that the Securities of any Series then outstanding are convertible into or exchangeable for shares of common stock or other securities
of the Company, such entity shall, by such supplemental indenture, make provision so that the Holders of Securities of that Series shall thereafter be entitled to receive upon conversion or exchange of such Securities the number of securities or property to which a holder of the number of shares of common stock or other securities of the Company deliverable upon conversion or exchange of those Securities would have been entitled had such conversion or exchange occurred immediately prior to such consolidation,
merger, sale, conveyance, transfer or other disposition.

 

 

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Section 5.2 SUCCESSOR ENTITY SUBSTITUTED.

 

(a)          In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee, of the obligations set forth under Section
5.1 on all of the Securities of all Series outstanding, such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

(b)          In case of any such consolidation, merger, sale, conveyance, transfer or other disposition, such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

 

(c)          Nothing contained in this Article shall require any action by the Company in the case of a consolidation or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase
or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

 

Section 5.3 EVIDENCE OF CONSOLIDATION, ETC. TO TRUSTEE.

 

The Trustee may receive an Officers’ Certificate or an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer or other disposition, and any such assumption, comply with the provisions of this Article.

 

ARTICLE VI

DEFAULTS AND REMEDIES

 

Section 6.1 EVENTS OF DEFAULT.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in a Board Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

 

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(a)          default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee
or with a Paying Agent prior to the expiration of such period of 30 days); or

 

(b)          default in the payment of the principal of any Security of that Series at its Maturity; or

 

(c)          default in the deposit of any sinking fund payment, when and as due in respect of any Security of that Series; or

 

(d)          default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series),
which default continues uncured for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(e)          the Company pursuant to or within the meaning of any Bankruptcy Law:

 

(i) commences a voluntary case,

 

(ii) consents to the entry of an order for relief against it in an involuntary case,

 

(iii) consents to the appointment of a Custodian of it or for all or substantially all of its property,

 

(iv) makes a general assignment for the benefit of its creditors, or

 

(v) generally is unable to pay its debts as the same become due; or

 

(f)           a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

(i) is for relief against the Company in an involuntary case,

 

(ii) appoints a Custodian of the Company or for all or substantially all of its property, or

 

(iii) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days; or

 

(g)          any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, in accordance with Section 2.2(r).

 

 

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The term “Bankruptcy Law” means Title II, U.S. Code or any similar Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

Section 6.2 ACCELERATION OF MATURITY; RESCISSION AND ANNULMENT.

 

If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(e) or (f)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal
amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable.
If an Event of Default specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to
the Company and the Trustee, may rescind and annul such declaration and its consequences if:

 

(a)          the Company has paid or deposited with the Trustee a sum sufficient to pay:

 

(i) all overdue interest, if any, on all Securities of that Series,

 

(ii) the principal of any Securities of that Series which have become due otherwise than by such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in such Securities,

 

(iii) to the extent that payment of such interest is lawful, interest upon any overdue principal and overdue interest at the rate or rates prescribed therefor in such Securities, and

 

(iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and

 

(b)          all Events of Default with respect to Securities of that Series, other than the non-payment of the principal of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section
6.13.

 

No such rescission shall affect any subsequent Default or impair any right consequent thereon.

 

 

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Section 6.3 COLLECTION OF INDEBTEDNESS AND SUITS FOR ENFORCEMENT BY TRUSTEE.

 

The Company covenants that if:

 

(a)          default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or

 

(b)          default is made in the payment of principal of any Security at the Maturity thereof, or

 

(c)          default is made in the deposit of any sinking fund payment when and as due by the terms of a Security,

 

then the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal or any overdue interest, at the
rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor
upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

 

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such
rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

 

Section 6.4 TRUSTEE MAY FILE PROOFS OF CLAIM.

 

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether
the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

(a)          to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

 

 

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(b)          to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding
is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in
any such proceeding.

 

Section 6.5 TRUSTEE MAY ENFORCE CLAIMS WITHOUT POSSESSION OF SECURITIES.

 

All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.6 APPLICATION OF MONEY COLLECTED.

 

Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender
thereof if fully paid:

 

First: To the payment of all amounts due the Trustee under Section 7.7; and

 

Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively;
and

 

Third: To the Company.

 

Section 6.7 LIMITATION ON SUITS.

 

No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

 

 

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(a)          such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that Series;

 

(b)          the Holders of not less than 25% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

(c)          such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request;

 

(d)          the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

 

(e)          no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series;

 

it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or
to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders.

 

Section 6.8 UNCONDITIONAL RIGHT OF HOLDERS TO RECEIVE PRINCIPAL AND INTEREST.

 

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption
date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 6.9 RESTORATION OF RIGHTS AND REMEDIES.

 

If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company,
the Trustee and the Holders shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

 

Section 6.10 RIGHTS AND REMEDIES CUMULATIVE.

 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

 

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Section 6.11 DELAY OR OMISSION NOT WAIVER.

 

No delay or omission of the Trustee or of any Securityholder to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Securityholders
may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Securityholders, as the case may be.

 

Section 6.12 CONTROL BY HOLDERS.

 

The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that:

 

(a)          such direction shall not be in conflict with any rule of law or with this Indenture,

 

(b)          the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction, and

 

(c)          subject to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would expose
the Trustee to personal liability.

 

Section 6.13 WAIVER OF PAST DEFAULTS.

 

The Holders of a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided,
however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.14 UNDERTAKING FOR COSTS.

 

All parties to this Indenture agree, and each Securityholder by its acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Stated Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the redemption date).

 

 

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ARTICLE VII

TRUSTEE

 

Section 7.1 DUTIES OF TRUSTEE.

 

(a)          If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent man would exercise or use under the circumstances
in the conduct of his own affairs.

 

(b)          Except during the continuance of an Event of Default:

 

(i) The Trustee need perform only those duties that are specifically set forth in this Indenture and no others.

 

(ii) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officers’ Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officers’
Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or not they conform to the requirements of this Indenture.

 

(c)          The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(i) This paragraph does not limit the effect of paragraph (b) of this Section.

 

(ii) The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts.

 

(iii) The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series.

 

 

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(d)          Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section.

 

(e)          The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability or expense.

 

(f)          The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required
by law.

 

(g)          No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, or in the exercise of any of its rights or powers, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such risk is not reasonably assured to it.

 

(h)          The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections, immunities and standard of care as are set forth in paragraphs (a), (b) and (c) of this Section with respect to the Trustee.

 

Section 7.2 RIGHTS OF TRUSTEE.

 

(a)          The Trustee may rely on and shall be protected in acting or refraining from acting upon any document believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated
in the document.

 

(b)          Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate
or Opinion of Counsel.

 

(c)          The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.  No Depository shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any
act or omission by any Depository.

 

(d)          The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers.

 

(e)          The Trustee may consult with counsel and the advice of such counselor and any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance
thereon.

 

(f)          The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any Securityholders unless such Securityholders shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

 

25

 

 

Section 7.3 INDIVIDUAL RIGHTS OF TRUSTEE.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

 

Section 7.4 TRUSTEE’S DISCLAIMER.

 

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.5 NOTICE OF DEFAULTS.

 

If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any Bearer Securities are outstanding, publish on one occasion in an Authorized Newspaper,
notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders
of that Series.

 

Section 7.6 REPORTS BY TRUSTEE TO HOLDERS.

 

Within 60 days after May 15 in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent required
under, TIA Section 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each stock exchange on which the Securities of that Series are listed. The Company shall promptly notify the Trustee when Securities of any Series are listed on any stock exchange.

 

Section 7.7 COMPENSATION AND INDEMNITY.

 

The Company shall pay to the Trustee from time to time reasonable compensation for its services in amounts agreed to by the Company and the Trustee. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket
expenses incurred by it. Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

 

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The Company shall indemnify the Trustee (including the cost of defending itself) against any loss, liability or expense incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.
The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through negligence, willful misconduct or bad faith.

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal and interest on particular Securities of that Series.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1 (e) or (f) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section 7.8 REPLACEMENT OF TRUSTEE.

 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company.

 

The Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a)          the Trustee fails to comply with Section 7.10;

 

(b)          the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

(c)          a Custodian or public officer takes charge of the Trustee or its property; or

 

(d)          the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee. If a successor Trustee with respect to the Securities of any one or more Series does not take office within 45 days after the retiring Trustee resigns or is removed, the retiring Trustee,
the Company or the Holders of at least 10% in principal amount of the Securities of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

 

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If the Trustee with respect to the Securities of anyone or more Series fails to comply with Section 7.10, any Securityholder of the applicable Series may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall promptly mail a notice of its succession to each Securityholder of each such Series and, if any Bearer Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper. Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s
obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it prior to such replacement.

 

Section 7.9 SUCCESSOR TRUSTEE BY MERGER, ETC.

 

If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee, if such successor is eligible and qualified under Section 7.10.

 

Section 7.10 ELIGIBILITY; DISQUALIFICATION.

 

This Indenture shall always have a Trustee who satisfies the requirements of TIA Section 31O(a)(1), (2) and (5). The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA Section 310(b).

 

Section 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.

 

The Trustee is subject to TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

 

ARTICLE VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.1 SATISFACTION AND DISCHARGE OF INDENTURE.

 

This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when:

 

(a)          either:

 

 

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(i) all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

(ii) all such Securities not theretofore delivered to the Trustee for cancellation:

 

(1) have become due and payable, or

 

(2) will become due and payable at their Stated Maturity within one year, or

 

(3) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or

 

(4) are deemed paid and discharged pursuant to Section 8.3, as applicable;

 

and the Company, in the case of (1), (2) or (3) above, has deposited or caused to be deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of
such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

(b)          the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

 

(c)          the Company has delivered to the Trustee an Officers’ Certificate stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1 8.2 and 8.5 shall survive.

 

Section 8.2 APPLICATION OF TRUST FUNDS; INDEMNIFICATION.

 

(a)          Subject to the provisions of Section 8.5, all money deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all
money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money
has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4.

 

 

29

 

 

(b)          The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and
principal received in respect of such obligations other than any payable by or on behalf of Holders.

 

(c)          The Trustee shall deliver or pay to the Company from time to time upon Company Request any U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally
recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.

 

Section 8.3 LEGAL DEFEASANCE OF SECURITIES OF ANY SERIES.

 

Unless this Section 8.3 is otherwise specified pursuant to Section 2.2(t) to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of such Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and
the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, at Company Request, execute proper instruments acknowledging the same), except as to:

 

(a)          the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series
on the Stated Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

 

(b)          the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

 

(c)          the rights, powers, trust and immunities of the Trustee hereunder;

 

provided that, the following conditions shall have been satisfied:

 

(d)          the Company shall have deposited or caused to be deposited irrevocably with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders
of such Securities, (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms, will provide (and without
reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal (including mandatory sinking fund or analogous payments) of and interest, if any, on all the Securities of such Series on the dates such
installments of interest or principal are due;

 

 

30

 

 

(e)          such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(f)          no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

 

(g)          the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a
result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

 

(h)          the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company
or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company;

 

(i)           such deposit shall not result in the trust arising from such deposit constituting an investment company (as defined in the Investment Company Act of 1940, as amended), or such trust shall be qualified under such Act or exempt from regulation
thereunder; and

 

(j)           the Company shall have delivered to the Trustee an Officers’ Certificate stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

 

Section 8.4 COVENANT DEFEASANCE.

 

Unless this Section 8.4 is otherwise specified pursuant to Section 2.2(t) to be inapplicable to Securities of any Series, on and after the 91st day after the date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, and 5.1 as well
as any additional covenants contained in a supplemental indenture hereto for a particular Series of Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2(t) (and the failure to comply with any such covenants shall not constitute a Default or Event of Default under Section 6.1), with respect to the Securities of such Series, provided that the following conditions shall have been satisfied:

 

 

31

 

 

(a)          with reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust, specifically pledged as security for, and dedicated solely to, the
benefit of the Holders of such Securities, (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof, in accordance with their terms,
will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants expressed in a written certification thereof delivered to the Trustee, to pay principal and interest, if any, on and any mandatory sinking fund in respect of the Securities of such Series on the dates such installments of
interest or principal are due;

 

(b)          such deposit will not result in a breach or violation of, or constitute a default under, this Indenture;

 

(c)          no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

 

(d)          the Company shall have delivered to the Trustee an Opinion of Counsel confirming that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and defeasance and
will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred;

 

(e)          the Company shall have delivered to the Trustee an Officers’ Certificate stating the deposit was not made by the Company with the intent of preferring the Holders of the Securities of such Series over any other creditors of the Company or with
the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

 

(f)           the Company shall have delivered to the Trustee an Officers’ Certificate stating that all conditions precedent herein provided for relating to the defeasance contemplated by this Section have been complied with.

 

Section 8.5 REPAYMENT TO COMPANY.

 

The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for two years. After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another
person.

 

 

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ARTICLE IX

AMENDMENTS AND WAIVERS

 

Section 9.1 WITHOUT CONSENT OF HOLDERS.

 

The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:

 

(a)          to cure any ambiguity, defect or inconsistency;

 

(b)          to comply with Article V;

 

(c)          to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

(d)          to make any change that does not adversely affect the rights of any Securityholder;

 

(e)          to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

 

(f)          to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one Trustee; or

 

(g)          to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

 

Section 9.2 WITH CONSENT OF HOLDERS.

 

The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such
Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such waiver by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer
for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the Securityholders under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture or waiver under this section becomes effective, the Company shall
mail to the Securityholders affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

 

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Section 9.3 LIMITATIONS.

 

Without the consent of each Securityholder affected, an amendment or waiver may not:

 

(a)          change the amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(b)          reduce the rate of or extend the time for payment of interest (including default interest) on any Security;

 

(c)          reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

 

(d)          reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

 

(e)          waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding
Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(f)          make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

 

(g)          make any change in Sections 6.8, 6.13, 9.3 (this sentence), 10.15 or 10.16; or

 

(h)          waive a redemption payment with respect to any Security or change any of the provisions with respect to the redemption of any Securities.

 

Section 9.4 COMPLIANCE WITH TRUST INDENTURE ACT.

 

Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.5 REVOCATION AND EFFECT OF CONSENTS.

 

Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any
such Holder or subsequent Holder may revoke the consent as to its Security or portion of a Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.

 

 

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Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (g) of Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a
Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

Section 9.6 NOTATION ON OR EXCHANGE OF SECURITIES.

 

The Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.7 TRUSTEE PROTECTED.

 

In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution
of such supplemental indenture is authorized or permitted by this Indenture. The Trustee shall sign all supplemental indentures, except that the Trustee need not sign any supplemental indenture that adversely affects its rights.

 

ARTICLE X

MISCELLANEOUS

 

Section 10.1 TRUST INDENTURE ACT CONTROLS.

 

If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.2 NOTICES.

 

Any notice or communication by the Company or the Trustee to the other is duly given if in writing and delivered in person or mailed by first class mail:

 

if to the Company:

 

[______________________]

[______________________]

[______________________]

Attention:  [_____________]

 

if to the Trustee:

 

[______________________]

[______________________]

[______________________]

Attention:  [_____________]

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

 

35

 

 

Any notice or communication to a Securityholder shall be mailed by first-class mail to its address shown on the register kept by the Registrar and, if any Bearer Securities are outstanding, published in an Authorized Newspaper.  Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall
not affect its sufficiency with respect to other Securityholders of that or any other Series.

 

If a notice or communication is mailed or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If the Company mails a notice or communication to Securityholders, it shall mail a copy to the Trustee and each Agent at the same time.

 

Section 10.3 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.

 

Securityholders of any Series may communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA Section 312(c).

 

Section 10.4 CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.

 

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee or an Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with.

 

Section 10.5 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e) and shall include:

 

(a)          a statement that the person making such certificate or opinion has read such covenant or condition;

 

(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 person, he has made such examination or investigation as is necessary to enable him 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 or not, in the opinion of such person, such condition or covenant has been complied with.

 

Section 10.6 RULES BY TRUSTEE AND AGENTS.

 

The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

 

36

 

 

Section 10.7 LEGAL HOLIDAYS.

 

Unless otherwise provided by Board Resolution, Officers’ Certificate or supplemental indenture for a particular Series, a “Legal Holiday” is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday,
and no interest shall accrue for the intervening period.

 

Section 10.8 NO RECOURSE AGAINST OTHERS.

 

A director, officer, employee or stockholder, as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder by accepting a Security waives and releases all such liability.
The waiver and release are part of the consideration for the issue of the Securities.

 

Section 10.9 COUNTERPARTS.

 

This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

Section 10.10 GOVERNING LAWS.

 

THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

 

Section 10.11 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.

 

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 10.12 SUCCESSORS.

 

All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.13 SEVERABILITY.

 

In case any provision in this Indenture or in the Securities 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 10.14 TABLE OF CONTENTS, HEADINGS, ETC.

 

The Table of Contents, Cross-Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

 

37

 

 

Section 10.15 SECURITIES IN A FOREIGN CURRENCY.

 

Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal
amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in a coin or currency other than Dollars, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be that amount of Dollars that could be obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section 10.15,
“Market Exchange Rate” shall mean the noon Dollar buying rate in the City of New York for cable transfers of that currency as published by the Federal Reserve Bank of New York. If such Market Exchange Rate is not available for any reason with respect to such currency, the Trustee shall use, in its sole discretion and without liability on its part, such quotation of the Federal Reserve Bank of New York as of the most recent available date, or quotations or rates of exchange from one or more major banks
in the City of New York or in the country of issue of the currency in question or such other quotations or rates of exchange as the Trustee, upon consultation with the Company, shall deem appropriate. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Securityholders pursuant to the terms of this Indenture.

 

All decisions and determinations of the Trustee regarding the Market Exchange Rate or any alternative determination provided for in the preceding paragraph shall be in its sole discretion and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all purposes and irrevocably binding upon the Company and
all Holders.

 

Section 10.16 JUDGMENT CURRENCY.

 

The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency
in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in the City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in
the City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result
in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture. For purposes
of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in the City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

 

38

 

 

ARTICLE XI

SINKING FUNDS

 

Section 11.1 APPLICABILITY OF ARTICLE.

 

The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.” If provided for
by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

Section 11.2 SATISFACTION OF SINKING FUND PAYMENTS WITH SECURITIES.

 

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory
sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited. Such Securities
shall be received by the Trustee, together with an Officers’ Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities in lieu of cash
payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time
to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

 

39

 

 

Section 11.3 REDEMPTION OF SECURITIES FOR SINKING FUND.

 

Not less than 40 days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officers’ Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the
amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified. Not
less than 30 days (unless otherwise indicated in the Board Resolution, Officers’ Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.3. Such notice having been
duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

[Signature Page Follows]

  

40

  

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of the day and year first above written.

 

	 	 	 BENIHANA INC.	 
	 	 	 	 
	
 
	
 
	 By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	[________________________]	 
	 	 	 	 
	 	 	 By:	 	 
	 	 	Name:	 
	 	 	Title:	 

 

 

41

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