Document:

exhibit10_35.htm

  

  

EXHIBIT 10.35

  

 

SOFTWARE PRODUCT LINE PURCHASE AGREEMENT

 

This Software Product Line Purchase Agreement (this “Agreement”) is entered into as of  May 5, 2011 between WORDsearch Corp., L.L.C. a Delaware limited liability company (together with any subsidiaries, “WSC”) and FindEx.com, Inc., a Nevada corporation (together with any subsidiaries, “FIND”) (WSC and FIND may hereinafter be referred to individually as a “Party” or jointly as the “Parties”).

 

WHEREAS, except as specifically set forth herein, FIND is currently the exclusive owner of all rights in and to that certain original consumer software program product line published, marketed, distributed and/or sold under the brand name, and known generally in its vertical category as, “QuickVerse” (the “QuickVerse Product Line”);

 

WHEREAS, WSC desires to obtain from FIND all of FIND’s rights, title and interest in and to the assets which, taken collectively, comprise the QuickVerse Product Line, including the rights to develop, publish, market, distribute and sell the QuickVerse Product Line, and to assume up to $140,000 of certain liabilities as specified in this Agreement, and FIND desires to convey to WSC all of FIND’s rights, title and interest in and to the QuickVerse Product Line together with up to $140,000 of said certain liabilities;

 

WHEREAS, WSC and FIND have arrived at mutually agreeable terms upon which to effect a conveyance of the QuickVerse Product Line from Find to WSC together with an assumption by WSC of certain of the liabilities associated therewith as specified in this Agreement;

 

WHEREAS, under the circumstances, the conveyance of the QuickVerse Product Line by FIND may be deemed under Chapter 78.565 of the Nevada Revised Statutes and FIND’s Articles of Incorporation to require prior stockholder approval;

 

NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, the Parties agree as follows:

 

ARTICLE I – ASSET PURCHASE TRANSACTION

 

1.1           Generally.

 

On and subject to the terms and conditions of this Agreement, at the Closing (as hereinafter defined in Section 2.1), WSC agrees to acquire from FIND, and FIND agrees to convey and deliver to WSC as hereinafter provided, all of the QuickVerse Product Line Assets (as hereinafter defined in Section 1.2) for the consideration specified below in Section 1.6 of this Agreement (collectively, the “Transactions”).

 

1.2           The QuickVerse Product Line Assets.

 

For purposes of this Agreement, the QuickVerse Product Line shall include all software products sold by FIND to the Christian or faith-based markets except Greek Tutor and Hebrew Tutor, including, but not limited, to, the following software products in all versions and operating environments, including, but not limited to, Windows®, Macintosh, Palm and Pocket PC: QuickVerse®, Sermon BuilderTM, Ministry NotebookTM, and Jonah and the WhaleTM.  In addition, and without limitation, the QuickVerse Product Line shall include all of the following assets (collectively, the “QuickVerse Product Line Assets”):

 

	
  

	
(A) The following items of intellectual property, which, for purposes of, and as referenced throughout, this Agreement, shall collectively constitute the “QuickVerse Product Line Intellectual Property Rights”:

 

	
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All Software programs included in the QuickVerse Product Line and all revisions, modifications, upgrades, updates, enhancements, release levels and versions of the foregoing, in each case as existing in all computer-readable media now known or hereafter to become known, including without limitation magnetic media storage devices, CD-ROM, CDDVD and other optical disks, electronic downloading, Web-based online, and any other human or machine readable medium;

 

	
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All base and source code in all languages (including but not limited to C, C++, Pascal, Delphi, Pearl, Java Script, VB Script, ASP, SQL, HTML, DHTML, XML, RTF, STEP, Make files, and version control files), in machine readable and listing form, for all programs (including without limitation the program engine, user interface and other components) on all platforms (and specifically including source code used for content manipulation, organization, and maintenance and utilities) associated with the QuickVerse Product Line, in each case as existing in all computer-readable media now known or hereafter to become known, including without limitation magnetic media storage devices, CD-ROM, CDDVD and other optical disks, electronic downloading, Web-based online, and any other human or machine readable medium, in each case as  developed and owned by FIND as of the Closing Date, and in each case as may or may not be the subject of Copyright;

 

	
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All base and source code in all languages (including but not limited to C, C++, Pascal, Delphi, Pearl, Java Script, VB Script, ASP, SQL, HTML, DHTML, XML, RTF, STEP, Make files, and version control files), in machine readable and listing form, for all programs (including without limitation the program engine, user interface and other components) on all platforms (and specifically including source code used for content manipulation, organization, and maintenance and utilities) associated with all QuickVerse Product Line derivative works, in each case as existing in all computer-readable media now known or hereafter to become known, including without limitation magnetic media storage devices, CD-ROM, CDDVD and other optical disks, electronic downloading, Web-based online, and any other human or machine readable medium, in each case as developed and owned by FIND as of the Closing Date, and in each case as may or may not be the subject of Copyright;

 

	
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All source code and all object code, in machine readable and listing form, produced from all development work performed prior to the Closing Date by FIND and all third party object code purchased by FIND for any of the products included in the QuickVerse Product Line (including without limitation .exe, .com, .dll, .vbx, .vdc, all active-x and COM modules, Plug-ins, Applets);

 

	
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All setup source and object code, in machine readable and listing form, for all versions of all applications of the QuickVerse Product Line including Wise, Install Shield, and all application setup developed internally by FIND through the Closing;

 

	
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All flowcharts, notes, software tools, compilers, test routines and information relating to any base, source and/or object code contained in any of the products included in the QuickVerse Product Line, in whatever form.

 

	
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All existing technology rights relating to the base, source and object code associated with any part of the QuickVerse Product Line and all existing technology rights relating to the base, source and object code associated with all derivative works of any of the products included in the QuickVerse Product Line in each case as developed and to the extent owned by FIND as of the Closing Date;

 

	
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All content owned by FIND (including but not limited to Bible text, Bible reference text, Christian reference text, supporting text, photos, illustrations, videos, animations, maps, music, digital audio, analog audio) in all forms/stages (including but not limited to source, processed, and production) which, as of the Closing Date, is included in programs (including without limitation the program engine, user interface and other components), Websites owned and operated by FIND, or FIND product support processes (including customer and developer) relating to any of the products included in the QuickVerse Product Line;

 

	
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All rights granted to FIND, as licensee, pursuant to any licenses with third parties to publish and include in one or more products included in the QuickVerse Product Line certain specifically designated content owned or otherwise controlled by the licensor in each respective case, all as specifically set forth on Schedule 1.2(a)(ix) annexed hereto and made a part hereof (such agreements, collectively, the “QuickVerse Product Line Content License Agreements”);

 

	
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All public domain content (including but not limited to Bible text, Bible reference text, Christian reference text, supporting text, photos, illustrations, videos, animations, maps, music, digital audio, analog audio) in all forms/stages (including but not limited to source, processed, and production) which, as of the Closing Date, is included in programs (including without limitation the program engine, user interface and other components), Websites owned and operated by FIND, or FIND product support processes (including customer and developer) relating any of the products included in the QuickVerse Product Line;

 

	
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All artwork designs, interface designs, and product artwork incorporated in any of the products included in the QuickVerse Product Line, their packaging, their marketing (including those contained on the Website located at the URL identified by www.QuickVerse.com, including metatags), and/or product support processes (including customer and developer), in each case as developed and to the extent owned by FIND as of the Closing Date;

 

	
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All development rights relating to the base, source and object code associated with any of the products included in the QuickVerse Product Line and all development rights relating to the base, source and object code associated with all derivative works of the products included in the QuickVerse Product Line, in each case as developed and to the extent owned by FIND as of the Closing Date;

 

	
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The name “QuickVerse” and all Marks and trade names associated with the name and brand “QuickVerse” and any of the products included in the QuickVerse Product Line, including the names of any such products, in each case as owned by FIND as of the Closing Date;

 

	
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The exclusive ownership and use of the domain names and Websites used by FIND (including those used for Sermon Maker or other elements of the QuickVerse Product Line) in connection with the distribution and/or retail sale of the products included in the QuickVerse Product Line, and located as of the Closing Date at the following URL: www.QuickVerse.com and all content, design concepts, code (php, html, css, javascript and sql), text, graphics, images, data, video, audio (including without limitation music used in time relation with text, images, or video), URLs, navigational elements, links, pointers, technology and software related thereto, including any modifications, upgrades, updates, enhancements and related information or documentation, as well as all other domain names that redirect visitors to or are associated with or variants of the QuickVerse.com domain name; and

 

	
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All rights associated with any Proprietary Information that is used in connection with the development, publishing, marketing, distribution, sales and/or licensing of all or any part of the QuickVerse Product Line (collectively, the “QuickVerse Product Line Proprietary Information Rights”); and all FIND Registered Intellectual Property.

 

	
  

	
(B) The following contractual and related rights, which for purposes of, and as referenced throughout, this Agreement shall collectively constitute the “QuickVerse Product Line Contractual Rights”:

 

	
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All rights granted to FIND, as licensor, pursuant to any licenses with third parties who are end users of any of the QuickVerse Product Line Assets (such agreements as are in place and valid as of the Closing Date, collectively, the “QuickVerse Product Line End-User License Agreements”);

 

	
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All United States domestic and international distribution rights relating to the products included in the QuickVerse Product Line arising under any distribution or similar agreements (such agreements as are in place and valid as of the Closing Date collectively, the “QuickVerse Product Line Distribution Agreements”) between FIND and any one or more third parties; and

 

	
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All rights granted to FIND under any and all other agreements relating in any way to the QuickVerse Product Line Assets (such agreements as are in place and valid as of the Closing Date collectively, the “QuickVerse Product Line Other Agreements”).

 

	
  

	
(C) The following tangible assets, which for purposes of, and as referenced throughout, this Agreement, shall collectively constitute the “QuickVerse Product Line Tangible Assets”:

 

	
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All physical inventory of QuickVerse Product Line current merchandise which, as of the Closing Date, is located either (a) in any FIND warehouse or other controlled location, or (b) in the possession of retailers pursuant to a contractual consignment arrangement, all as specifically set forth on Schedule 1.2(c)(i) annexed hereto and made a part hereof (collectively, the “QuickVerse Product Line Physical Inventory”);

 

	
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All printed marketing literature, advertising, copy, camera-ready art, trade show booth set-ups, displays and other sales materials currently used in connection with the marketing, distribution and/or sales of all or any of the products included in the QuickVerse Product Line that are in the possession and control of FIND and/or its duly authorized agents as of the Closing;

 

	
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A comprehensive list of QuickVerse customers and the database of all purchases and customer transactions involving products included in the QuickVerse Product Line (including the corresponding customer information contained in such database), including upgrade transactions and current CRM data, in each case extending back to the date upon which FIND originally acquired the rights being conveyed pursuant to this Agreement, to wit June 1999, through the Closing Date;

 

	
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Copies of all reasonably material designs, drawings, procedures (including design, manufacturing, test and maintenance procedures), specifications, technical data, records, pricing and cost information, marketing plans and proposals, product literature, training materials and other documentation relating to some, all or any of the programs included in the QuickVerse Product Line that are in the possession and control of FIND or its duly authorized agents as of the Closing Date;

 

	
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Copies of all reasonably material film, electronic files for all packaging, documentation, inserts and collateral materials, gold masters, source code and related documentation and materials relating to any of the programs included in the QuickVerse Product Line that are in the possession of FIND or its duly authorized agents as of the Closing Date;

 

	
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A copy of FIND’s internally prepared list of “Frequently Asked Questions” used by FIND’s customer support and technical support personnel in the operation of selling and servicing the products included in the QuickVerse Product Line in the form as existing on the Closing Date; and

 

	
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Any and all material documentation and/or other material tangible items manifesting, embodying, incorporating or containing any QuickVerse Product Line Proprietary Information Rights that are in the possession and control of FIND or its duly authorized agents as of the Closing Date.

 

	
  

	
(D) The following tangible assets, which for purposes of, and as referenced throughout, this Agreement, shall collectively constitute the “QuickVerse Product Line Related Rights”:

 

	
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The right to sue or otherwise recover for any misappropriation of the QuickVerse Product Line Intellectual Property Rights, the QuickVerse Product Line Contractual Rights, the QuickVerse Product Line Tangible Assets, or any rights or interests in any of the foregoing;

 

	
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All income, royalties, damages and other payments due and payable from and after the Closing with respect to the QuickVerse Product Line Intellectual Property Rights, the QuickVerse Product Line Contractual Rights, and/or the QuickVerse Product Line Tangible Assets (including, without limitation, payments under all licenses entered into in connection therewith, and damages and payments for past and future infringements thereof); provided, however, that specifically excluded from the foregoing shall be any such amounts due and payable as of the Closing for QuickVerse Product Line merchandise then previously sold by FIND but payment for which remains outstanding and as-yet unsatisfied (which amounts shall be for the account of FIND); and

 

	
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all proceeds of the foregoing.

 

1.3           Conveyance of Assets.

 

1.3.1           Assignment of QuickVerse Intellectual Property Rights.

 

Subject to the terms and conditions of this Agreement, and as of the Closing, FIND shall have assigned and transferred ownership to WSC of all Intellectual Property Rights in and to the QuickVerse Product Line Assets.  At any time before or after the Closing, and upon request by WSC, FIND shall cooperate with WSC in executing documents and providing information that WSC may deem necessary to register with the U.S. Patent and Trademark Office or any foreign trademark authority the Marks that are included in the QuickVerse Product Line Assets.

 

1.3.2           Assignment of Contractual Rights.

 

Subject to the terms and conditions of this Agreement, and as of the Closing, FIND shall have granted, conveyed and assigned to WSC all of the QuickVerse Product Line Contractual Rights.

 

1.3.3           Sale and Delivery of Tangible Assets.

 

Subject to the terms and conditions of this Agreement, and as of the Closing, FIND shall have sold and physically or Constructively Delivered all of the QuickVerse Product Line Tangible Assets included in the QuickVerse Product Line to WSC.

 

1.3.4           Assignment of Related Rights.

 

Subject to the terms and conditions of this Agreement, and as of the Closing, FIND shall have granted, conveyed and assigned to WSC all of the QuickVerse Product Line Related Rights.

 

1.3.5           Assets not Conveyed

 

FIND shall retain Accounts Receivable, both credit and debit balances at the time of closing. Accounts Receivable records shall be transmitted to WSC.  FIND shall retain a list of customers with account balances for the purpose of settlement only.  FIND shall own the right to collect debit balances and the obligation to settle credit balances.

 

1.4           Assumption of Liabilities & Obligations.

 

WSC does not assume any liabilities of FIND other than those expressly assumed pursuant to subsection 1.4.1 below.  WSC explicitly does not assume the liability for product returns for products sold prior to Closing, or any liabilities related to any employees of FIND who may be hired by WSC subsequent to Closing.

 

1.4.1           Assumption of Certain Liabilities.

 

Subject to the terms and conditions of this Agreement, and as of the Closing, WSC shall have assumed exclusive primary responsibility and liability for any and all financial obligations associated with all accrued but, as of the date hereof, unpaid and outstanding customer refunds and rebates as specifically set forth on Schedule 1.4.1 annexed hereto and made a part hereof (the “QuickVerse Product Line Preexisting Customer Obligations”), provided, however, that the QuickVerse Product Line Preexisting Customer Obligations shall not exceed one hundred and forty thousand dollars (USD$140,000).

 

WORDsearch is only assuming responsibility for those refunds and rebates listed with customer name, order number, date, and amount in Schedule 1.4.1.

 

1.4.2           Assumption of Contractual Obligations.

 

Subject to the terms and conditions of this Agreement, after the Closing, WSC shall have assumed exclusive primary responsibility for the fulfillment of any and all obligations under any and all QuickVerse Product Line Distribution Agreements, QuickVerse Product Line Content License Agreements, and/or Quick Verse Product Line Other Agreements, including without limitation any royalty payment or other financial obligations accruing under any of such agreements after the Closing; provided, however, that WSC shall expressly not be deemed to have assumed any liability for product returns for any merchandise sold prior to Closing.

 

1.5           Transition Services.

 

Upon request by WSC, and for a period of not more than ninety (90) days following Closing, FIND shall provide certain transition services intended to facilitate the orderly transition of the QuickVerse Product Line from FIND to WSC as contemplated by this Agreement, including without limitation accounting services, payroll services, and technical and operational support services, all as specifically set forth in Schedule 1.5 annexed hereto and made a part hereof (collectively, the “QuickVerse Product Line Transition Services”), and at such costs as are further specifically set forth in Schedule 1.5.

 

1.6           Consideration for Conveyance.

 

For and in consideration of the conveyance to WSC of the QuickVerse Product Line Assets, WSC shall:

 

(i) pay to FIND an amount equal to nine hundred seventy-five thousand U.S. dollars (USD$975,000) (the “Purchase Price”) and

 

(ii) satisfy, if, as and when due, the QuickVerse Product Line Preexisting Customer Obligations (jointly with the Purchase Price, the “Conveyance Consideration”).

 

The Conveyance Consideration shall have a total value for all purposes equal to one million one hundred fifteen thousand U.S. dollars (USD$1,115,000).

 

ARTICLE II – CLOSING

 

2.1 Date & Time.

 

The closing of the Conveyance Transaction (the “Closing”) shall take place through an electronic exchange of documents and funds on a date to be specified by the Parties which date shall be no later than three (3) business days following the satisfaction or waiver (as provided herein) of the conditions set forth in Article VI (other than those conditions that by their nature are to be satisfied at the Closing), unless another time, date and/or place is agreed to in writing by the Parties (the date upon which the Closing shall have occurred is referred to hereinafter as the “Closing Date”).

2.2 Deliverables.

At or prior to the Closing, the following actions will be taken:

 

(a)           FIND shall deliver to WSC a certificate from FIND’s CEO in accordance with Section 6.3(f) hereof;

 

(b)           FIND shall deliver to WSC an executed Trademark Assignment from HMH Consumer Company to FIND for the mark “QUICKVERSE” in a form provided or approved by counsel for WSC;

 

(c)           FIND shall deliver to WSC a Certificate of Good Standing in accordance with Section 6.3(h) hereof;

 

(d)           FIND shall deliver to WSC a bill of sale reflecting the conveyance of the QuickVerse Product Line Tangible Assets;

 

(e)           FIND shall deliver to WSC a certificate from FIND's CEO stating that all other unpaid royalties described in Section 6.3(d) up to the date of Closing shall be paid to the satisfaction of the licensors from the proceeds of this Agreement. (f)WSC shall deliver to FIND a certificate from WSC’s CEO in accordance with Section 6.2(e);

 

(g)           WSC shall deliver to FIND a Certificate of Good Standing in accordance with Section 6.3(b) hereof; and

 

 (h)           WSC shall deliver to FIND certified checks for same-day funds for the Primary Consideration as follows:

 

	
i.  

	
one (1) check for each individual and separate settlement of unpaid royalties in the U.S. dollar amount corresponding to the Negotiated Release Agreements specified in Section 6.3(c) hereof payable in each case to the corresponding content licensor(s); and

 

 

	
ii.  

	
one (1) check in the amount of nine-hundred and seventy-five thousand U.S. dollars (USD$975,000) less the aggregate sum of all of the checks deliverable pursuant to subsection (h)(i) above made payable to FIND

 

ARTICLE III REPRESENTATIONS AND WARRANTIES OF FIND

 

Except as may be set forth in the disclosure schedule annexed hereto and made a part hereof (the “FIND Disclosure Schedule”), FIND hereby represents and warrants to WSC that the statements contained in this Article III are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Article III).

 

3.1           Organization and Qualification.

 

FIND is a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation and has the requisite corporate power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted.

 

3.2           Authority Relative To This Agreement.

 

FIND has all necessary corporate power and authority to execute and deliver this Agreement and, subject to approval of this Agreement and the transactions contemplated hereby by FIND’s shareholders in accordance with this Agreement and applicable Law, to perform its obligations hereunder and to consummate the transactions.  The execution and delivery of this Agreement by FIND and the consummation by FIND of the transactions have been duly and validly authorized by all necessary corporate action and no other corporate proceedings on the part of FIND are necessary to authorize this Agreement or to consummate the transactions other than the approval of this Agreement and the contemplated transactions by FIND’s shareholders in accordance with applicable Law.  This Agreement has been duly and validly executed and delivered by FIND, and, assuming the due authorization, execution and delivery of this Agreement by WSC, constitutes a legal, valid and binding obligation of FIND, enforceable against FIND in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting or relating to creditors’ rights generally, and (ii) the availability of injunctive relief and other equitable remedies.

 

3.3           No Conflict; Required Filings and Consents.

 

 (a)  The execution and delivery of this Agreement by FIND does not, and the performance of this Agreement by FIND will not (in each case, with or without the giving of notice or lapse of time, or both), subject to (x) obtaining the requisite approval of this Agreement and the transactions contemplated hereby by FIND’s shareholders in accordance with this Agreement and applicable Law, and (y) obtaining the consents (the “Required FIND Consents”), approvals, Authorizations and permits described in Section 3.3(a) of the FIND Disclosure Schedule, (i) conflict with or violate the certificate of incorporation, bylaws or equivalent organizational documents of FIND, (ii) conflict with or violate any Law applicable to FIND or by which any property or asset of FIND is bound or affected, or (iii) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any right of termination, unilateral amendment, acceleration or cancellation of, or result in the creation of a Lien on any of the QuickVerse Product Line Assets, or require the consent of any third party pursuant to, any promissory note, loan agreement, security agreement, intercreditor agreement, subordination agreement, bond, mortgage, indenture, lease, license, or other Contract, instrument or obligation to which FIND is a party and by which any QuickVerse Product Line Assets are bound or affected, except for such conflicts, violations, breaches, defaults or other occurrences, which individually or in the aggregate would not reasonably be expected to have a Material Adverse Effect on the QuickVerse Product Line Assets.

 

 (b)           The execution and delivery of this Agreement by FIND does not, and the performance of this Agreement by FIND will not, require any consent, approval, Authorization or permit of, or filing with or notification to, any Governmental Authority, domestic or foreign, except  where failure to obtain any such consents, approvals, Authorizations or permits, or to make such filings or notifications, would not prevent or delay consummation of the Transactions, or otherwise prevent FIND from performing its obligations under this Agreement.

 

3.4           Permits; Compliance.

 

Except as may be specified in Section 3.4 of the FIND Disclosure Schedule, FIND is in possession of all franchises, grants, Authorizations, licenses, permits, easements, variances, exceptions, consents, certificates, approvals and orders of any Governmental Authority necessary for FIND to carry on the QuickVerse Product Line as it is now being conducted, except for those which the failure to possess would not individually or in the aggregate reasonably be expected to have a Material Adverse Effect on FIND (collectively, the “FIND Permits”) and, as of the date hereof, no suspension or cancellation of any of the FIND Permits is pending or, to the Knowledge of FIND, threatened, except such suspension or termination as would not reasonably be expected to have a Material Adverse Effect on FIND.  Except as disclosed in Section 3.4 of the FIND Disclosure Schedule or as would not reasonably be expected to have a Material Adverse Effect on FIND, FIND is not in conflict with, or in default or violation of, or, with the giving of notice or the passage of time, would be in conflict with, or in default or violation of, (a) any Law applicable to FIND or by which all or any part of the QuickVerse Product Line Assets are bound or affected, or (b) any of the FIND Permits.

 

3.5           QuickVerse Product Line Intellectual Property Rights.

 

 (a)           Except as specifically set forth in Section 1.2 of this Agreement and/or Section 3.5(a) of the FIND Disclosure Schedule, FIND owns the entire right, title and interest to all QuickVerse Product Line Intellectual Property Rights free and clear of all Liens.

 

 (b)           Except as may be specified in Section 3.5(b) of the FIND Disclosure Schedule, the QuickVerse Product Line Intellectual Property Rights constitute all the Intellectual Property used in or necessary for the operation of the QuickVerse Product Line as it is currently conducted.

 

 (c)           Except as may be specified in Section 3.5(c) of the FIND Disclosure Schedule, each QuickVerse Product Line Content License Agreement and QuickVerse Product Line End-User License Agreement is in full force and effect and valid and enforceable in accordance with its terms, and except to the extent as would not have a Material Adverse Effect individually or in the aggregate on FIND or any successor-in-interest, FIND has not violated any provision of, or committed or failed to perform any act which, with or without the giving of notice or lapse of time, or both, would constitute a default in the performance, observance or fulfillment of any obligation, covenant, condition or other term contained in any QuickVerse Product Line Content License Agreement and QuickVerse Product Line End-User License Agreement, and FIND has not given or received notice to or from any Person relating to any such alleged or potential default that has not been cured.

 

 (d)           Except as may be specified in Section 3.5(d) of the FIND Disclosure Schedule, (i) all registration, maintenance and renewal fees related to Patents, Marks, Copyrights and any other certifications, filings or registrations, including pending applications, that are owned by FIND and included in the QuickVerse Product Line Intellectual Property Rights (collectively, “FIND Registered Intellectual Property”) that are currently due have been paid and all documents and certificates related to such FIND Registered Intellectual Property have been filed with the relevant Governmental Authority or other authorities in the United States or foreign jurisdictions, as the case may be, for the purposes of maintaining such FIND Registered Intellectual Property, and (ii) all FIND Registered Intellectual Property is in good standing, held in compliance with all applicable legal requirements and enforceable by FIND.

 

 (e)           Except as may be specified in Section 3.5(e) of the FIND Disclosure Schedule, FIND is not aware of any challenges (or any basis therefor) with respect to the validity or enforceability of any QuickVerse Product Line Intellectual Property Rights. FIND has not taken any action or failed to take any action that would reasonably be expected to result in the abandonment, cancellation, forfeiture, relinquishment, invalidation, waiver or unenforceability of any QuickVerse Product Line Intellectual Property Rights or any registration thereof.

 

 (f)           Except as may be specified in Section 3.5(f) of the FIND Disclosure Schedule, (i) none of the products included in the QuickVerse Product Line and which are currently or were formerly developed manufactured, sold, distributed, provided, shipped or licensed, by FIND, or which are currently under development by FIND, has infringed or infringes upon, or otherwise unlawfully used or uses, the Intellectual Property Rights of any third party, (ii) FIND, by conducting its business as currently conducted, has not infringed or is not infringing upon, or has not otherwise unlawfully used or is not otherwise unlawfully using, any Intellectual Property Rights of a third party, (iii) FIND has not received any communication alleging that it or any of the products included in the QuickVerse Product Line, or any of its services, activities or operations associated with the QuickVerse Product Line infringe upon or otherwise unlawfully use any Intellectual Property Rights of a third party nor, to FIND’s Knowledge, is there any basis therefor, (iv) no Proceeding has been instituted, or, to FIND’s Knowledge, threatened, relating to any Intellectual Property formerly or currently used by FIND in relation to, or incorporated into, any of the products included in the QuickVerse Product Line and none of the QuickVerse Product Line Intellectual Property Rights is subject to any outstanding Order, and (v) to FIND’s Knowledge, no Person has infringed or is infringing any of the QuickVerse Product Line Intellectual Property Rights or has otherwise misappropriated or is otherwise misappropriating any QuickVerse Product Line Intellectual Property Rights.

 

 (g)           Except as specified in Section 3.5(g) of the FIND Disclosure Schedule, or to the extent as would not have a Material Adverse Effect individually on any, or in the aggregate on the, QuickVerse Product Line Intellectual Property Rights, (i) all current and former employees, consultants and contractors of FIND have executed and delivered, and are in compliance with, enforceable agreements regarding the protection of the QuickVerse Product Line Proprietary Information Rights and providing valid written assignments to FIND of all Intellectual Property conceived or developed by such employees, consultants or contractors in connection with their services for FIND, and (ii) no current or former employee, consultant or contractor or any other Person has any right, claim or interest to any of the QuickVerse Product Line Intellectual Property Rights.

 

 (h)           QuickVerse Product Line Software.

 

 (i)           The Software included in the products included in the QuickVerse Product Line and owned by FIND (collectively, the “QuickVerse Product Line Software”) has been either (A) developed by employees of FIND within the scope of their employment by FIND and who have assigned all of their right, title and interest therein to FIND pursuant to written Contracts, (B) developed by independent contractors who have assigned all of their right, title and interest therein to FIND pursuant to written Contracts, or (C) otherwise acquired by FIND from a third party pursuant to a written Contract in which such third party assigns all of its right, title and interest therein.  FIND shall provide copies of all written assignments from its employees and independent contractors (referred to in (A) and (B) of the preceding sentence) and all third party Contracts (referred to in (C) of the preceding sentence) prior to Closing.  In addition, all such third party Contracts shall be identified on Schedule 3.5(i) of the FIND Disclosure Schedule.  No QuickVerse Product Line Software contains any programming code, documentation or other materials or development environments that embody Intellectual Property Rights of any Person other than FIND, other than such materials obtained by FIND from other Persons who make such materials generally available to all interested Persons or end-users on standard commercial terms; provided, however, that FIND represents and warrants that no open source code has been incorporated into the FIND code base.

 

 (ii)           Each existing and currently supported and marketed version of the QuickVerse Product Line Software (including Software-embedded) products performs, in all material respects, the functions described in any agreed specifications or end-user documentation or other information provided to customers of FIND on which such customers relied when licensing or otherwise acquiring such products, subject only to routine bugs and errors that could in the Ordinary Course of Business be corrected promptly by FIND in the course of providing customer support without further liability to FIND, and all of the code of such products has been developed in a manner that meets common industry practice, including the use of regression test and release procedures.  To FIND’s Knowledge, each existing and currently supported and marketed version of the QuickVerse Product Line Software  (including Software-embedded) products is free of all viruses, worms, trojan horses and material known Contaminants and does not contain any bugs, errors, or problems in each case that would substantially disrupt its operation or have a substantial adverse impact on the operation of the Software.

 

 (iii)           FIND has taken all actions customary in the Software industry to document the QuickVerse Product Line Software and its operation, such that the materials comprising the QuickVerse Product Line Software, including the source code and documentation, have been written in a clear and professional manner so that they may be understood, modified and maintained in an efficient manner by reasonably competent programmers.

 

 (iv)           All QuickVerse Product Line Software is free of any Disabling Code or Contaminants that may, or may be used to, access, modify, delete, damage or disable any Systems or that may result in damage thereto.  FIND has taken reasonable steps and implemented reasonable procedures to ensure that its internal computer systems used in connection with the development, publishing, marketing, distributing, selling and/or licensing of the QuickVerse Business Line is free from Disabling Code and Contaminants.  The Software licensed by FIND pursuant to the QuickVerse Product Line Content License Agreement is free of any Disabling Code or Contaminants that may, or may be used to, access, modify, delete, damage or disable the Systems of FIND or that might result in damage thereto.  FIND has taken all reasonable steps to safeguard its respective Systems and restrict unauthorized access thereto.

 

 (v)           No Public Software (A) forms part of the QuickVerse Product Line Software, (B) was, or is, used in connection with the development of any QuickVerse Product Line Software, or (C) was, or is, incorporated or distributed, in whole or in part, in conjunction with any QuickVerse Product Line Software.

 

3.6           QuickVerse Product Line Contractual Rights.

 

Except as may be specified in Section 3.6 of the FIND Disclosure Schedule, each QuickVerse Product Line Distribution Agreement is in full force and effect and valid and enforceable in accordance with its terms, and except to the extent as would not have a Material Adverse Effect individually or in the aggregate on FIND, has not violated any provision of, or committed or failed to perform any act which, with or without the giving of notice or lapse of time, or both, would constitute a default in the performance, observance or fulfillment of any obligation, covenant, condition or other term contained in any QuickVerse Product Line Distribution Agreement and QuickVerse Product Line Other Agreement, and FIND has not given or received notice to or from any Person relating to any such alleged or potential default that has not been cured.

 

3.7           QuickVerse Product Line Tangible Assets.

 

 (a)           With respect to all of the QuickVerse Product Line Tangible Assets purported to be owned by FIND, FIND has good and valid title to all of such assets, free and clear of all Liens other than Permitted Liens.

 

 (b)           Except as may be specified in Section 3.7(b) of the FIND Disclosure Schedule, the QuickVerse Product Line Physical Inventory consists of blank CD-ROM diskettes, pre-printed CD-ROM diskettes, product user manuals, packaging materials and supplies, and finished goods, all of which is merchantable and fit for the purpose for which it was procured or manufactured, and none of which is slow-moving, obsolete, damaged, or defective, subject only to the reserve for inventory writedown set forth on the face of the FIND balance sheet dated December 31, 2010 filed with the U.S. Securities & Exchange Commission on April 15, 2011 as part of its Annual Report on SEC Form 10-K and incorporated by reference herein (the “Most Recent FIND Balance Sheet”) (rather than in any notes thereto) as adjusted for operations and transactions through the Closing Date in accordance with the past custom and practice of FIND.

 

3.8           QuickVerse Product Warranty.

 

Except as may be specified in Section 3.8 of the FIND Disclosure Schedule, substantially all of the products included in the QuickVerse Product Line manufactured, sold, licensed, and delivered by FIND have conformed in all material respects with all applicable contractual commitments and all express and implied warranties, and FIND has no material Liability for replacement or repair thereof or other Damages in connection therewith, subject only to the reserve for product warranty claims set forth on the face of the Most Recent FIND Balance Sheet (rather than in any notes thereto) as adjusted for operations and transactions through the Closing Date in accordance with the past custom and practice of FIND.  Substantially all of the products included in the QuickVerse Product Line manufactured, sold, leased, and delivered by FIND are subject to standard terms and conditions of sale or lease.  Section 3.8 of the FIND Disclosure Schedule includes copies of the standard terms and conditions of sale or license for FIND (containing applicable guaranty, warranty, and indemnity provisions).

 

3.9           Brokers or Finders.

 

No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transactions based upon any Contract or arrangements made by or on behalf of FIND.

 

ARTICLE IV – REPRESENTATIONS AND WARRANTIES OF WSC

 

Except as may be set forth in the disclosure schedule annexed hereto and made a part hereof (the “WSC Disclosure Schedule”), WSC hereby represents and warrants to FIND that the statements contained in this Article IV are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the Closing Date were substituted for the date of this Agreement throughout this Article IV).

 

4.1           Organization and Qualification.

 

WSC is a limited liability company duly organized, validly existing and in good standing under the Laws of the jurisdiction of its organization and has the requisite  power and authority to own, lease and operate its properties and to carry on its business as it is now being conducted.

 

4.2           Authority Relative To This Agreement.

 

WSC has all necessary corporate power and authority to execute and deliver this Agreement and, subject to approval of this Agreement and the transactions contemplated hereby by WSC’s shareholders in accordance with this Agreement and applicable Law, to perform its obligations hereunder and to consummate the transactions.  The execution and delivery of this Agreement by WSC and the consummation by WSC of the transactions have been duly and validly authorized by all necessary member and/or company action, and no other proceedings on the part of WSC are necessary to authorize this Agreement or to consummate the transactions other than the approval of this Agreement and the contemplated transactions by WSC’s members in accordance with applicable Law.  This Agreement has been duly and validly executed and delivered by WSC, and, assuming the due authorization, execution and delivery of this Agreement by FIND, constitutes a legal, valid and binding obligation of WSC, enforceable against WSC in accordance with its terms, except as the enforceability thereof may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting or relating to creditors’ rights generally, and (ii) the availability of injunctive relief and other equitable remedies.

 

4.3           No Conflict; Required Filings and Consents.

 

 (a)           The execution and delivery of this Agreement by WSC does not, and the performance of this Agreement by WSC will not (in each case, with or without the giving of notice or lapse of time, or both), subject to obtaining the consents (the “Required WSC Consents”), approvals, Authorizations and permits described in Section 4.3(a) of the WSC Disclosure Schedule, (i) conflict with or violate the articles of organization or other charter/organizational documents of WSC, (ii) conflict with or violate any Law applicable to WSC or by which any property or asset of WSC is bound or affected, or (iii) result in any breach of or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any right of termination, unilateral amendment, acceleration or cancellation of, or result in the creation of a Lien on any WSC assets, or require the consent of any third party pursuant to, any promissory note, loan agreement, security agreement, intercreditor agreement, subordination agreement, bond, mortgage, indenture, lease, license, or other Contract, instrument or obligation to which WSC is a party and by which any of its assets are bound or affected.

 

 (b)           The execution and delivery of this Agreement by WSC does not, and the performance of this Agreement by WSC will not, require any consent, approval, Authorization or permit of, or filing with or notification to, any Governmental Authority, domestic or foreign, other than the making of appropriate filings with the U.S. Copyright Office and United States Patent and Trademark Office in connection with the maintenance and development of the QuickVerse Product Line Intellectual Property Rights; FIND shall fully cooperate with WSC in executing any additional documents necessary to effectuate such filings.

 

4.4           Permits; Compliance.

 

Except as may be specified in Section 4.4 of the WSC Disclosure Schedule, WSC is in possession of all franchises, grants, Authorizations, licenses, permits, easements, variances, exceptions, consents, certificates, approvals and orders of any Governmental Authority necessary for WSC to carry on its business as it is now being conducted, except for those which the failure to possess would not individually or in the aggregate reasonably be expected to have a Material Adverse Effect on WSC (the “WSC Permits”) and, as of the date hereof, no suspension or cancellation of any of the WSC Permits is pending or, to the Knowledge of WSC, threatened, except such suspension or termination as would not reasonably be expected to have a Material Adverse Effect on WSC.  Except as disclosed in Section 4.4 of the WSC Disclosure Schedule or as would not reasonably be expected to have a Material Adverse Effect on WSC, WSC is not in conflict with, or in default or violation of, or, with the giving of notice or the passage of time, would be in conflict with, or in default or violation of, (a) any Law applicable to WSC or by which all or any part of its assets are bound or affected, or (b) any of the WSC Permits.

 

4.5           Brokers or Finders.

 

No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with the Transactions based upon arrangements made by or on behalf of WSC.

 

4.6           No Conditions Precedent.

 

There are no conditions precedent to the effectiveness of this Agreement that have not been satisfied or waived.

 

4.7           Material Disclosures.

 

No statement, representation or warranty made by WSC in this Agreement, or in any certificate, statement, list, schedule or other document furnished or to be furnished to FIND hereunder, contains, or when so furnished will contain, any untrue statement of a material fact, or fails to state, or when so furnished will fail to state, a material fact necessary in order to make the statements contained herein or therein, in light of the circumstances in which they are or will be made, not misleading.

 

ARTICLE V – PRE-CLOSING COVENANTS

 

5.1           Conduct of Business by FIND Pending the Closing.

 

FIND covenants and agrees that, between the date of this Agreement and the Closing, except as set forth in Section 5.1 of the FIND Disclosure Schedule or as contemplated by any other provision of this Agreement, and unless WSC shall otherwise agree in writing (which agreement shall not be unreasonably withheld), (1) the business of FIND as it relates to the QuickVerse Product Line shall be conducted only in, and FIND not take any action except in, the Ordinary Course of Business, (2) FIND shall use all reasonable efforts to preserve substantially intact its business organization, to keep available the services of the current employees and consultants of FIND and to preserve the current relationships of FIND with customers, suppliers and other Persons with which FIND has material business relations, (3) comply with all applicable Laws, (4) prepare and timely file all foreign, federal, state and local Tax Returns as required by applicable Law, and make timely payment of all applicable Taxes when due, (5) use reasonable efforts to obtain, prior to the Closing Date, all Required FIND Consents, (6) take all actions to be in substantial compliance with all FIND Permits, (7) make full and timely payment of all amounts required to be contributed under the terms of any applicable employee benefit plans and applicable Law or required to be paid as expenses under any such plans, (8) diligently and consistently apply its reasonable best efforts in good faith to obtain the requisite approval of its stockholders to the Transactions and this Agreement as soon as reasonably practicable in accordance with Article 78 of the Nevada Revised Statutes and its Articles of Incorporation and Bylaws (“FIND Stockholder Approval”), and (9) FIND will not:

 

 (a)           sell, license, pledge, assign, dispose of, grant, encumber, or authorize the sale, license, pledge, disposition, grant or encumbrance of any of the QuickVerse Product Line Assets, except for sales in the Ordinary Course of Business and in a manner consistent with past practice;

 

 (b)           merge with or be acquired by any Person, except where the terms of any such transactions specifically authorize and make express provision for the completion of the Transactions by the surviving Person in any such merger or the acquiror in any such acquisition, in either case not inconsistent with the terms and conditions set forth herein;

 

 (c)           enter into any Contract material to the business, results of operations or financial condition of the QuickVerse Product Line as a standalone operation other than in the Ordinary Course of Business, consistent with past practice;

 

 (d)           settle or compromise any pending or threatened litigation which is material, or potentially material, to the QuickVerse Product Line or which otherwise has a bearing on the Transactions;

 

 (e)           take any action or omit to do any act within its reasonable control which action or omission is reasonably likely to result in any of the conditions of Closing under this Agreement not being satisfied, except as may be required by applicable Law;

 

 (f)           take or omit to take any action that would result in its representations and warranties hereunder being rendered untrue in any material respect; or

 

 (g)           agree to do any of the foregoing.

 

5.2           Conduct of WSC Pending the Closing.

 

WSC covenants and agrees that, between the date of this Agreement and the Closing, except as set forth in Section 5.2 of the WSC Disclosure Schedule or as contemplated by any other provision of this Agreement, and unless FIND shall otherwise agree in writing, it will (1) comply with all applicable Laws, (2) use reasonable efforts to obtain, prior to the Closing Date, all Required WSC Consents, (3) take all actions to be in substantial compliance with all WSC Permits, (4) diligently and consistently apply its reasonable best efforts in good faith to secure financing from a qualified commercial bank to effect the Transactions as soon as reasonably practicable, such financing to be based on an annual interest rate and other terms and conditions that would generally be available to companies within the consumer software sector with balance sheets and historical net incomes not materially different than WSC’s most recent balance sheet and historical net income (the “WSC Acquisition Financing”), (5) immediately notify FIND of any facts, circumstances or events that, to the Knowledge of WSC, have had or are reasonably likely to have a Material Adverse Effect on WSC, and (6) WSC will not:

 

 (a)           take any action or omit to do any act within its reasonable control which action or omission is reasonably likely to result in any of the conditions of Closing under this Agreement not being satisfied, except as may be required by applicable Law;

 

 (b)           take or omit to take any action that would result in its representations and warranties hereunder being rendered untrue in any material respect; or

 

 (c)           agree to do any of the foregoing.

 

ARTICLE VI – CONDITIONS OF CLOSING OF THE TRANSACTIONS

 

6.1           Conditions to the Obligations of Each Party to Effect the Transactions.

 

In addition to the other conditions set forth in this Article VI, the obligations of FIND and WSC to consummate the Transactions are subject to the satisfaction on or prior to the Closing Date of the following conditions:

 

 (a)           all Authorizations and Orders of, declarations and filings with, and notices to any Governmental Authority required to permit the consummation of the Transactions shall have been obtained or made and shall be in full force and effect; and

 

 (b)           no temporary restraining order, preliminary or permanent injunction or other Order prohibiting the consummation of the Transactions shall be in effect, and no Law shall have been enacted or shall be deemed applicable to the Transactions which makes the consummation of the Transactions unlawful;

 

6.2           Conditions to the Obligations of FIND to Effect the Transactions.

 

The obligations of FIND to consummate the Transactions are subject to satisfaction (or waiver by FIND in its sole discretion) on or prior to the Closing Date of the following conditions:

 

 (a)           FIND shall have obtained the FIND Stockholder Approval;

 

 (b)           FIND shall have received from WSC an originally issued Certificate of Good Standing from the State of Delaware and dated no earlier than two business days prior to the Closing Date that indicates that, as of the date of such certificate’s issuance, WSC had been in good standing under applicable Law;

 

 (c)           each of the representations and warranties of WSC set forth in this Agreement that is qualified by a Material Adverse Effect on WSC shall be true and correct at and as of the Closing Date as if made at and as of the Closing Date and each of such representations and warranties that is not so qualified shall be true and correct in all material respects at and as of the Closing Date as if made at and as of the Closing Date, except to the extent that (i) such representations and warranties refer specifically to an earlier date, in which case such representations and warranties shall have been true and correct as of such earlier date, or (ii) any facts which would otherwise render any such representations or warranties untrue or incorrect as of the Closing Date are the direct or indirect result of obligations arising under or are otherwise contemplated by any one or more provisions of this Agreement;

 

 (d)           WSC shall have performed, or complied with, in all material respects all obligations required to be performed or complied with by it under this Agreement at or prior to the Closing Date, and WSC shall have delivered to FIND a certificate signed by the Chief Executive Officer of WSC to such effect;

 

 (e)           FIND shall have received a certificate signed by the Chief Executive Officer of WSC certifying as to the satisfaction of the conditions set forth in Sections 6.1 and 6.2, as applicable, as of the Closing Date; and

 

 (f)           all actions to be taken by WSC in connection with the consummation of the Transactions and all certificates, opinions, instruments, and other documents required to effect the Transactions will be reasonably satisfactory in form and substance to FIND.

 

6.3           Conditions to the Obligations of WSC to Effect the Transactions.

 

The obligation of WSC to consummate the Transaction is subject to satisfaction (or waiver by WSC in its sole discretion) on or prior to the Closing Date of the following conditions:

 

 (a) each of the representations and warranties of FIND set forth in this Agreement shall be true in all material respects in accordance with their express terms;

 

 (b) any and all QuickVerse Product Line Content License Agreements shall have been duly assigned over from FIND to WSC and shall, in accordance with their terms, terminate no earlier than December 31, 2012;

 

 (c) FIND shall have delivered to WSC, three (3) business days before Closing, signed release statements from holders of unpaid royalties due as of the Closing Date under any QuickVerse Product Line Content License Agreements representing no less than eighty percent (80%) of such royalties due in the aggregate as of such date (the “Negotiated Release Agreements”), along with written agreements to extend the terms of such licenses at the current rates up to and including December 31, 2012, for all QuickVerse Product Line Content License Agreements that are expired as of the Closing Date or that will expire on or before December 31, 2012;

 

(d) FIND shall have delivered to WSC, three (3) business days before Closing, a complete and true list of all other royalties due for which written agreements have not been obtained plus the supporting royalty reports normally supplied to the payee.

 

 (e) FIND shall have performed, or complied with, in all material respects all obligations required to be performed or complied with by it under this Agreement at or prior to the Closing Date, and FIND shall have delivered to WSC a certificate signed by the Chief Executive Officer of FIND to such effect;

 

 (f) there shall not have occurred any event, occurrence or change that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on FIND or the QuickVerse Product Line except where any such event, occurrence or change are the direct or indirect result of obligations arising under or are otherwise contemplated by any one or more provisions of this Agreement;

 

 (g) WSC shall have received a certificate signed by the Chief Executive Officer of FIND certifying as to the satisfaction of the conditions set forth in Sections 6.1 and 6.3 as of the Closing Date;

 

 (h) all actions to be taken by FIND in connection with consummation of the Transactions and all certificates, opinions, instruments, and other documents required to effect the Transactions will be reasonably satisfactory in form and substance to WSC;

 

 (i) WSC shall have received from FIND an originally issued Certificate of Good Standing from the State of Nevada and dated no earlier than two business days prior to the Closing Date that indicates that, as of the date of such certificate’s issuance, FIND had been in good standing under applicable corporate Law; and

 

(j) WSC shall have obtained the WSC Acquisition Financing.

 

ARTICLE VII – TERMINATION, AMENDMENT & WAIVER

 

7.1           Termination.

 

This Agreement may be terminated and the Transactions may be abandoned at any time prior to the Closing, notwithstanding any requisite approval of this Agreement and the Transactions, as follows:

 

 (a) by mutual written consent duly authorized by the boards of directors of each of FIND and WSC;

 

 (b) by FIND:

 

(i) to the extent that FIND shall not have obtained any requisite approval of its stockholders to the Transactions and this Agreement in accordance with Article 78 of the Nevada Revised Statutes and the Articles of Incorporation and Bylaws of FIND;

 

(ii) to the extent that the Closing shall not have occurred on or before June 30, 2011; provided, however, that the right to terminate this Agreement under this Section 7.1(b) shall not be available to FIND if FIND’s failure to fulfill any obligation under this Agreement is reasonably found to have been the cause of, or resulted in, the failure of the Closing to occur on or before such date;

 

(iii) upon a material breach of any representation, warranty, covenant or agreement on the part of WSC set forth in this Agreement, or if any representation or warranty of WSC shall have become materially untrue, in either case such that any one or more of the conditions set forth in Section 6.2 would not be satisfied (a “Terminating WSC Breach”); provided, however, that (A) if such Terminating WSC Breach is curable by WSC through the exercise of its best efforts and for so long as WSC continues to exercise such best efforts, and (B) if such Terminating WSC Breach is the direct or indirect result of either the fulfillment of, or the failure to fulfill, obligations arising under or that are otherwise reasonably contemplated by any other provision of this Agreement, FIND may not terminate this Agreement under this Section 7.1(b)(iii);

 

 (c)           by WSC:

 

(i) to the extent that the Closing shall not have occurred on or before June 30, 2011; provided, however, that the right to terminate this Agreement under this Section 7.1(c) shall not be available to WSC if WSC’s failure to fulfill any obligation under this Agreement is reasonably found to have been the cause of, or resulted in, the failure of the Closing to occur on or before such date; or

 

(ii) upon a material breach of any representation, warranty, covenant or agreement on the part of FIND set forth in this Agreement, or if any representation or warranty of FIND shall have become materially untrue, in either case such that any one or more of the conditions set forth in Section 6.3 would not be satisfied (“Terminating FIND Breach”); provided, however, that, (A) if such Terminating FIND Breach is curable by FIND through best efforts and for so long as FIND continues to exercise such best efforts, or (B) if such Terminating FIND Breach is the direct or indirect result of either the fulfillment of, or the failure to fulfill, any obligations of any Party arising under or that are otherwise reasonably contemplated by any other provision of this Agreement, WSC may not terminate this Agreement under this Section 7.1(c)(ii).

 

7.2           Amendment.

 

This Agreement may be amended by WSC and FIND by mutual action taken by or on behalf of their respective boards of directors at any time prior to the Closing Date; provided, however, that, (i) any such amendment is in writing signed by each of the Parties, and (ii) after approval of the matters presented in connection with the Transactions and this Agreement by the FIND stockholders, no amendment shall be made which by Law requires further approval by the FIND stockholders without such further approval.

 

7.3           Waiver.

 

At any time prior to the Closing, either FIND or WSC may (a) extend the time for the performance of any obligation or other act of the other, (b) waive any inaccuracy in the representations and warranties by the other contained herein or in any document delivered pursuant hereto, and (c) waive compliance with any agreement or condition applicable to the other contained herein.  Any such extensions or waivers shall be valid only if set forth in an instrument in writing signed by the Party or Parties to be bound thereby.  No failure or delay by any Party in exercising any right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.  To the maximum extent permitted by Law, (i) no waiver that may be given by a Party shall be applicable except in the specific instance for which it was given, and (ii) no notice to or demand on one Party shall be deemed to be a waiver of any obligation of such Party or the right of the Party giving such notice or demand to take further action without notice or demand.

 

ARTICLE VIII – POST-CLOSING COVENANTS

 

If, at any time after the Closing, WSC shall reasonably conclude that any instruments (e.g. bills of sale, assignments, etc.) or any actions are reasonably necessary and/or proper to carry out the express purposes of this Agreement, FIND shall reasonably cooperate with WSC to provide and/or otherwise make available such instruments and/or perform such actions.

 

ARTICLE IX – DISPUTE RESOLUTION,

 INDEMNIFICATION & OTHER REMEDIES

 

9.1           Conditions and Extent of Obligation.

 

FIND shall indemnify and hold harmless WSC from and against any and all Liabilities, including third party claims, arising out of and directly attributable to the breach by FIND of any FIND representation, warranty or covenant contained in this Agreement, in each case only to the extent that (i) any alleged breach involved in any claim for indemnification by WSC hereunder, the total amount of the claimed Liabilities by WSC in relation thereto, and the precise extent to which any such Liabilities were directly attributable to such alleged breach, are all uncontested and conceded in writing by FIND, or (ii) any alleged breach involved in any claim for indemnification by WSC hereunder is found to have occurred, the total amount of the claimed Liabilities by WSC in relation thereto are determined, and the precise extent to which any such Liabilities were directly attributable to such alleged breach are determined, in each case by an appropriate authority in accordance with the arbitration provision set forth in Section 9. 2 of this Agreement.  In any event, FIND shall only be obligated hereunder to provide indemnification up to the actual extent that any such Liabilities were conceded to or found to (as applicable) be directly attributable to any such breach, provided, however, that (x) no claim for indemnification shall be made hereunder by WSC unless and until the aggregate amount of claimed Liabilities reasonably exceeds an amount equal to twenty thousand dollars (USD$20,000), (y) no claim for indemnification shall be made hereunder by WSC after the date that is twelve (12) months following the Closing Date, and (z) the aggregate indemnification obligation arising hereunder shall not exceed an amount equal to one million one hundred fifteen thousand dollars (USD$1,115,000).

 

9.2           Arbitration.

 

Any dispute arising in connection with any claim for indemnification by WSC pursuant to Section 9.1 above shall be determined and settled by arbitration in Austin, Texas pursuant to the rules then in effect of the American Arbitration Association, and each Party hereby consents to the jurisdiction thereof.  Any award rendered as a result of any such arbitration Proceeding shall be final and conclusive upon the Parties and a judgment thereon may be entered in a court having competent jurisdiction. Upon initiating any such claim, WSC shall request the American Arbitration Association to appoint an arbitrator (i) who is knowledgeable and experienced in the software publishing industry generally, and, if possible, the consumer software publishing industry in particular, (ii) who will follow substantive rules of the law, (iii) allow for the Parties to request discovery pursuant to the rules then in effect under the Federal Rules of Civil Procedure for a period not to exceed sixty (60) days, (iv) require all testimony to be transcribed, and (v) require the award to be accompanied by findings of relevant fact and a detailed statement explaining the rationale for the decision. All costs and expenses, including attorney’s fees, of all Parties incurred in any dispute hereunder shall be borne by the non-prevailing Party.

 

9.3           Governing Law.

 

The resolution of any dispute in arbitration pursuant to Section 9.2 above shall be governed by and interpreted and enforced in accordance with the Laws of the State of Texas, without giving effect to any choice of Law or conflict of Laws rules or provisions (whether of the State of Texas or any other jurisdiction) that would cause the application of the Laws of any jurisdiction other than the State of Texas.

 

ARTICLE X – GENERAL PROVISIONS

 

10.1           Confidentiality.

 

The terms of this Agreement are confidential and shall not be disclosed to any third party without the prior written consent of the other Party; provided, however, that FIND shall be permitted to comply with any and all disclosure requirements as may be applicable to it under the Securities Exchange Act of 1934, as amended, and other securities laws, including without limitation the filing of a current report on Form 8-K.  Except as otherwise expressly provided for herein, each Party shall (and shall take such reasonable action to ensure that its employees) preserve in strict confidence any information obtained by the other Party or its employees, concerning its business or any of its Affiliates, including without limitation Proprietary Information, and agrees, except as expressly permitted herein, to refrain (and shall take such reasonable action to assure that its employees) from disclosing, during the term of this Agreement or at any time thereafter, any such information to any Person.

 

10.2           Non-Competition.

 

Effective as of the date of this Agreement and for a period of thirty-six (36) months thereafter, FIND shall not, without the prior written consent of WSC, and assuming no Default, directly develop or market any program or online service that includes any translation of the Bible, with the following exceptions: 1) FIND may develop Bible programs for the iPhone or iPad; and 2) FIND may sell and distribute Bible products that may be developed or marketed by companies that FIND or any of its Affiliates may acquire in the future, so long as a) they do not incorporate any program code developed by FIND prior to Closing, b) are not marketed using any customer lists or product brands conveyed at Closing, c) are not designed to use any content conveyed at Closing and d) are not any such acquired companies’principal source of revenue over the twelve (12) month period immediately preceding consummation of the acquisition.  Upon transferring all of the records and information pertaining to customers that have purchased Bible products from FIND or any of its Affiliates, FIND will purge all such customer information from it records of all kinds, including electronic and paper records and will not keep copies of such information or use such information in any way whatsoever. FIND, its officers, affiliates and directors will not contact said customers in any way whatsoever.

 

10.3           Notices.

 

Notices permitted or required under this Agreement shall be sent to the addresses set forth below and shall be sent by hand delivery, by telecopier or e-mail followed with written confirmation sent by regular mail, by overnight courier or by registered or certified mail, return receipt requested.  Notices shall be deemed to have been given on the date actually received if sent by hand delivery or overnight courier, on the date sent if sent by telecopier or e-mail, or three (3) days after mailing if sent by registered or certified mail.

If to WSC:

Randolph Beck

WORDsearch Corp., LLC

3006 Longhorn Blvd., #110

Austin, TX 78758

Email: rbeck@WORDsearchbible.com

Telephone:  (800) 888-9898

Facsimile:  (512) 834-1888

With a copy of any such notices to:

Antoinette M. Tease, P.L.L.C.

1633 Main Street, Suite A-348

Billings, MT  59105

Email: toni@teaselaw.com

Telephone (406) 245-5254

Fax (406) 245-4548

and

Jack Tompkins

4900 Woodway Drive Suite 890

Houston TX, 77056

Email:  jtompkins@artaequity.com

Telephone 713-223-5801

Fax  713-223-5825

If to FIND:

Steven Malone

FindEx.com, Inc.

4437 S. 134th St.

Omaha, NE  68137

Email:  smalone@quickverse.com

Telephone: (402) 333-1900

Fax: (402) 778-5763

With a copy of any such notices to:

M.M. Membrado, PLLC

115 East 57th Street, 11th Floor

New York, NY 10022

Email: mmm@mmmembrado.com

Telephone: (646) 486-9772

Fax:  (646) 486-9771

 

10.4           Certain Definitions.

 

For purposes of this Agreement, the following terms, in their capitalized forms, shall have the correspondingly ascribed meanings:

 

“Affiliate” means, with respect to any specified Person, any other Person who, directly or indirectly, through one or more intermediaries, Controls, is Controlled By, or is Under Common Control With, such specified Person.

 

“Applicable Rate” means the corporate base rate of interest publicly announced from time to time by Citibank N.A. plus 2% per annum.

 

“Authorization” means any authorization, approval, consent, certificate, license, permit or franchise of or from any Governmental Authority or pursuant to any Law.

 

“Code” means the U.S. Internal Revenue Code of 1986, as amended.

 

“Contaminant” means, in relation to any Software, any virus or other intentionally created, undocumented contaminant.

 

“Contract” means any agreement, contract, license, lease, commitment, arrangement or understanding, written or oral, including any sales order and purchase order.

 

“Control” (including the terms “Controlled By” and “Under Common Control With”) means the possession, directly or indirectly or as trustee or executor, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, as trustee or executor, by Contract or credit arrangement or otherwise.

 

“Copyrights” means registered and unregistered copyrights in both published and unpublished works.

 

“Damages” means all Proceedings, demands, claims, assessments, losses, damages, costs, expenses, Liabilities, obligations, injunctions, judgments, Orders, decrees, rulings, awards, fines, sanctions, penalties, charges, Taxes and amounts paid in settlement, including, without limitation, (i) interest on cash disbursements in respect of any of the foregoing at the Applicable Rate, compounded quarterly, from the date each such cash disbursement is made until the Person incurring the same shall have been indemnified in respect thereof, and (ii) reasonable costs, fees and expenses of attorneys, accountants and other agents of the relevant Person.

 

“Disabling Code” means, with respect to any Software, any disabling code or related instructions.

 

“GAAP” means U.S. Generally Accepted Accounting Principles.

 

“Governmental Authority” means any entity or body exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to United States federal, state, local, or municipal government, foreign, international, multinational or other government, including any department, commission, board, agency, bureau, subdivision, instrumentality, official or other regulatory, administrative or judicial authority thereof, and any non-governmental regulatory body to the extent that the rules and regulations or orders of such body have the force of Law.

 

“Intellectual Property” means: (i) Proprietary Information; (ii) trademarks and service marks (whether or not registered), trade names, logos, trade dress and other proprietary indicia and all goodwill associated therewith; (iii) documentation, advertising copy, marketing materials, web-sites, specifications, mask works, drawings, graphics, databases, recordings and other works of authorship, whether or not protected by Copyright; (iv) Software; and (v) Intellectual Property Rights, including all Patents, Copyrights, Marks, trade secret rights, mask works, moral rights or other literary property or authors rights, and all applications, registrations, issuances, divisions, continuations, renewals, reissuances and extensions of the foregoing.

 

“Intellectual Property Rights” means all forms of legal rights and protections that may be obtained for, or may pertain to, any Intellectual Property in any country of the world.

 

“Knowledge” of a given Person means, with respect to any fact or matter, the actual knowledge of the directors, executive officers and/or other employees of such Person and/or its subsidiaries, together with such knowledge that such directors, executive officers and other employees could be expected to discover after due investigation concerning the existence of the fact or matter in question.

 

“Law” means any statute, law (including common law), constitution, treaty, ordinance, code, order, decree, judgment, rule, regulation and any other binding requirement or determination of any Governmental Authority.

 

“Liability” or “Liabilities” means any liability, Indebtedness or obligation of any kind, whether known or unknown, whether asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, whether secured or unsecured, whether joint or several, whether due or to become due, whether vested or unvested, including any liability for Taxes.

 

“Liens” means any liens, claims, charges, security interests, mortgages, pledges, easements, conditional sale or other title retention agreements, defects in title, covenants or other restrictions of any kind, including, any restrictions on the use, voting, transfer or other attributes of ownership.

 

“Marks” means trademarks, service marks, logos and other proprietary indicia (whether or not registered).

 

“Material Adverse Effect” means, with respect to any Person or business product line, any state of facts, development, event, circumstance, condition, occurrence or effect that, individually or taken collectively with all other preceding facts, developments, events, circumstances, conditions, occurrences or effects (a) is materially adverse to the condition (financial or otherwise), business, operations or results of operations of such Person or business product line, or (b) if applicable, impairs the ability of such Person to perform its obligations under this Agreement.

 

“Order” means any award, injunction, judgment, decree, stay, order, ruling, subpoena or verdict, or other decision entered, issued or rendered by any Governmental Authority.

 

“Ordinary Course of Business” means the ordinary course of business consistent with past custom and practice (including with respect to quantity and frequency).

 

“Patents” means letters patent, patent applications, provisional patents, design patents, PCT filings, invention disclosures and other rights to inventions or designs.

 

“Permitted Liens” means, with respect to any Person, (i) Liens for current real or personal property taxes not yet due and payable and with respect to which such party maintains adequate reserves, (ii) workers’, carriers’ and mechanics’ or other like Liens incurred in the Ordinary Course of Business with respect to which payment is not due and that do not impair the conduct of such party’s or any of its Subsidiaries’ business in any material respect or the present or proposed use of the affected property and (iii) Liens that are immaterial in character, amount, and extent and which do not detract from the value or interfere with the present or proposed use of the properties they affect.

 

“Person” means an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated association, Governmental Authority, a person (including, without limitation, a “person” as defined in Section 13(d)(3) of the Exchange Act), or any political subdivision, agency or instrumentality of a Governmental Authority, or any other entity or body.

 

“Proceeding” or “Proceedings” means any actions, suits, claims, hearings, arbitrations, mediations, proceedings (public or private) or governmental investigations that have been brought by any governmental authority (including without limitation the U.S. Patent and Trademark Office or U.S. Copyright Office) or any other Person.

 

“Proprietary Information” means, collectively, inventions (whether or not patentable), trade secrets, technical data, databases, customer lists, designs, tools, methods, processes, technology, ideas, know-how, source code, product road maps and other proprietary information and materials.

 

“Public Software” means any Software that contains, or is derived in any manner (in whole or in part) from, any Software that is distributed as free Software, open source Software or similar licensing or distribution models, including Software licensed or distributed under any of the following licenses or distribution models, or licenses or distribution models similar to any of the following: (i) GNU’s General Public License or Lesser/Library GPL; (ii) Mozilla Public License; (iii) Netscape Public License; (iv) Sun Community Source/ Industry Standard License; (v) BSD License; (vi) Apache License; and (vii) any other license that is listed at http://www.opensource.org or that meets the open source definition set forth on this website.

 

“Software” means, collectively, computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code, design documents, flow-charts, user manuals and training materials relating thereto and any translations thereof.

 

“Systems” means, in relation to any Person, any of the hardware, Software, databases or embedded control systems thereof.

 

“Tax” or “Taxes” means any means any and all federal, state, local, or foreign net or gross income, gross receipts, net proceeds, sales, use, ad valorem, value added, franchise, bank shares, withholding, payroll, employment, excise, property, deed, stamp, alternative or add-on minimum, environmental (including taxes under Code §59A), profits, windfall profits, transaction, license, lease, service, service use, occupation, severance, energy, unemployment, social security, workers’ compensation, capital, premium, and other taxes, assessments, customs, duties, fees, levies, or other governmental charges of any nature whatever, whether disputed or not, together with any interest, penalties, additions to tax, or additional amounts with respect thereto.

 

“Tax Returns” means any return, declaration, report, claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

10.5           Index of Other Defined Terms.

 

In addition to those terms defined above, the following terms, in their capitalized forms, shall have the respective meanings given thereto in the sections indicated below:

 

	Defined Term	 	Section
	
 

“Agreement”

“Closing”

“Closing Date”

“Conveyance Consideration”

“FIND”

“FIND Disclosure Schedule”

“FIND Permits”

“FIND Registered Intellectual Property”

“FIND Stockholder Approval”

“Most Recent FIND Balance Sheet”

“Negotiated Release Agreements”

“Party/Parties”

“Purchase Price”

“QuickVerse Product Line”

“QuickVerse Product Line Assets”

“QuickVerse Product Line Content License Agreements”

“QuickVerse Product Line Contractual Rights”

“QuickVerse Product Line End-User License Agreements”

“QuickVerse Product Line Distribution Agreements”

“QuickVerse Product Line Intellectual Property Rights”

“QuickVerse Product Line Other Agreements”

“QuickVerse Product Line Physical Inventory”

“QuickVerse Product Line Preexisting Customer Obligations”

“QuickVerse Product Line Software”

“QuickVerse Product Line Tangible Assets”

“QuickVerse Product Line Transition Services”

“Required WSC Consents”

“Required FIND Consents”

“Terminating WSC breach”

“Terminating FIND Breach”

“Transactions”

“WSC”

“WSC Acquisition Financing”

“WSC Disclosure Schedule”

“WSC Permits”

	  	
 

Preamble

2.1

2.1

1.6

Preamble

Article III Introduction

3.4

3.5(d)

5.1(8)

3.7(b)

6.3(e)

Preamble

1.6

Recitals

1.2

1.2(i)

1.2(B)

1.2(B)

1.2(B)

1.2(A)

1.2(B)

1.2(C)

1.4.1

3.5(h)(i)

1.2(C)

1.5

4.3(a)

3.3(a)

7.1(b)(iii)

7.1(c)(ii)

1.1

Preamble

5.2(4)

Article IV Introduction

4.4

 

10.6           Interpretation.

 

(a) The meaning assigned to each term defined herein shall be equally applicable to both the singular and the plural forms of such term and vice versa, and words denoting either gender shall include both genders as the context requires.  Where a word or phrase is defined herein, each of its other grammatical forms shall have a corresponding meaning.

 

(b) The terms “hereof”, “herein” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement.

 

(c) When a reference is made in this Agreement to an Article, Section, paragraph, Exhibit or Schedule, such reference is to an Article, Section, paragraph, Exhibit or Schedule to this Agreement unless otherwise specified.

 

(d) The word “include”, “includes”, and “including” when used in this Agreement shall be deemed to be followed by the words “without limitation”, unless otherwise specified.

 

(e) A reference to any Party to this Agreement or any other agreement or document shall include such Party’s predecessors, successors and permitted assigns.

 

(f) Reference to any Law means such Law as amended, modified, codified, replaced or reenacted, and all rules and regulations promulgated thereunder.

 

(g) The Parties have participated jointly in the negotiation and drafting of this Agreement.  Any rule of construction or interpretation otherwise requiring this Agreement to be construed or interpreted against any Party by virtue of the authorship of this Agreement shall not apply to the construction and interpretation hereof.

 

(h) All accounting terms used and not defined herein shall have the respective meanings given to them under GAAP.

 

10.7           Severability.

 

If any term or other provision of this Agreement is determined to be invalid, illegal or incapable of being enforced by any rule of Law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the Transactions is not affected in any manner materially adverse to any Party.  Upon a determination that any term or other provision of this Agreement is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the Transactions be consummated as originally contemplated to the fullest extent possible.

 

10.8           Assignment; Binding Effect; Benefit.

 

Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the Parties hereto (whether by operation of Law or otherwise) without the prior written consent of the other Party, which consent shall not be unreasonably withheld; provided, however, that either Party may assign their rights but not their obligations under this Agreement to a third party purchaser of all or substantially all of such Party’s business assets or in connection with a corporate restructuring or merger without the prior written consent of the other Party. Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective executors, heirs, personal representatives successors and assigns.  Notwithstanding anything contained in this Agreement to the contrary, nothing in this Agreement, expressed or implied, is intended to confer on any Person other than the Parties or their respective successors and assigns any rights, remedies, obligations or Liabilities under or by reason of this Agreement.

 

10.9           Fees and Expenses.

 

All fees and expenses incurred in connection with the Transactions and this Agreement shall be paid by the Party incurring such fees or expenses.

 

10.10           Incorporation of Schedules.

 

The schedules referred to herein are hereby incorporated herein and made a part hereof for all purposes as if fully set forth herein.

 

10.11           Headings.

 

The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

 

10.12           Counterparts.

 

This Agreement may be executed and delivered (including by e-mail in .pdf format or by facsimile transmission) in one or more counterparts, and by the different Parties hereto in separate counterparts, each of which when executed and delivered shall be deemed to be an original but all of which taken together shall constitute one and the same agreement.

 

10.13           Entire Agreement.

 

This Agreement, including the schedules and exhibits hereto and any documents delivered by the Parties in connection herewith constitute the entire agreement among the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings among the Parties with respect thereto.  Except as otherwise provided herein, no addition to or modification of any provision of this Agreement shall be binding upon any Party hereto unless made in writing and signed by all Parties hereto.

 

10.14           Arbitration.

 

Except as otherwise expressly set forth herein, any dispute arising under this Agreement shall be determined and settled by arbitration, if instituted by WSC in Omaha, Nebraska, if instituted by FIND in Austin, Texas, pursuant to the rules then in effect of the American Arbitration Association, and each Party hereby consents to the jurisdiction thereof.  Any award rendered as a result of any such arbitration Proceeding shall be final and conclusive upon the Parties and a judgment thereon may be entered in a court having competent jurisdiction. Upon initiating any such claim, the initiating Party shall request the American Arbitration Association to appoint an arbitrator (i) who is knowledgeable and experienced in commercials law and the software publishing industry generally, and, if possible, the consumer software publishing industry in particular, (ii) who will follow substantive rules of the law, (iii) allow for the Parties to request discovery pursuant to the rules then in effect under the Federal Rules of Civil Procedure for a period not to exceed sixty (60) days, (iv) require all testimony to be transcribed, and (v) require the award to be accompanied by findings of relevant fact and a detailed statement explaining the rationale for the decision. All costs and expenses, including attorney’s fees, of all Parties incurred in any dispute hereunder shall be borne by the non-prevailing Party.

 

10.15           Governing Law.

 

Except as otherwise expressly set forth herein, this Agreement and its validity, construction and performance shall be governed in all respects by the internal laws of the state of Texas without giving effect to any principles of conflict of laws.

 

 

[SIGNATURES ON FOLLOWING PAGE]

  

  

  

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be signed under seal as of the date set forth on Page 1 of this Agreement.

 

 

	 WORDsearch CORP., L.L.C.
	 	 	 	 	 	 
	By: 	
/s/ Randolph Beck

	 	By: 	
/s/ Jack I. Tompkins

	 
	 	
Randolph Beck, President

	 	 	
Jack I. Tompkins, Chairman

	 
	 	 	 	 	 	 

 

 

	FINDEX.COM, INC
	 	 	 
	
By: 

	/s/ Steven Malone	 
	 	Steven Malone, Presidentexhibit4_1.htm

Exhibit 4.1

 

EXECUTION VERSION

 

 

 

 

CCO HOLDINGS, LLC

 

and

 

CCO HOLDINGS CAPITAL CORP.,

 

as Issuers,

 

CHARTER COMMUNICATIONS, INC.,

 

as Parent Guarantor

 

and

 

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

 

as Trustee

 

 

INDENTURE

 

Dated as of May 10, 2011

 

 

PROVIDING FOR ISSUANCE OF SENIOR DEBT SECURITIES

 

 

 

 

  

  

  

 

CROSS-REFERENCE TABLE*

 

	
Trust Indenture

Act Section

	
Indenture 

Section

	
310 (a)(1)   

	
7.10

	
       (a)(2)                                                                                 

	
7.10

	
       (a)(3)                                                                                   

	
N.A.

	
       (a)(4)                                                                                   

	
N.A.

	
       (a)(5)                                                                                   

	
7.10

	
       (b)                                                                                   

	
7.10

	
       (c)                                                                                   

	
N.A.

	
311 (a)

	
7.11

	
       (b)                                                                                   

	
7.11

	
       (c)                                                                                   

	
N.A.

	
312 (a)

	
2.05

	
       (b)                                                                                   

	
11.03

	
       (c)                                                                                   

	
11.03

	
313 (a)

	
7.06

	
       (b)(1)                                                                                   

	
N.A.

	
       (b)(2)                                                                                   

	
7.06; 7.07

	
       (c)                                                                                   

	
7.06; 11.02

	
       (d)                                                                                   

	
7.06

	
314 (a)

	
11.02; 11.04

	
       (b)                                                                                   

	
N.A.

	
       (c)(1)                                                                                   

	
11.04

	
       (c)(2)                                                                                   

	
11.04

	
       (c)(3)                                                                                   

	
N.A.

	
       (d)                                                                                   

	
N.A.

	
       (e)                                                                                   

	
11.05

	
       (f)                                                                                   

	
N.A.

	
315 (a)

	
7.01; 7.02

	
       (b)                                                                                   

	
7.05; 11.02

	
       (c)                                                                                   

	
7.01

	
       (d)                                                                                   

	
7.01

	
       (e)                                                                                   

	
6.11

	
316 (a) (last sentence)

	
2.09

	
       (a)(1)(A)                                                                                   

	
6.05

	
       (a)(1)(B)                                                                                   

	
6.04

	
       (a)(2)                                                                                   

	
N.A.

	
       (b)                                                                                   

	
6.07

	
       (c)                                                                                   

	
2.12

	
317 (a)(1)

	
6.08

	
       (a)(2)                                                                                   

	
6.09

	
       (b)                                                                                   

	
2.04

	
318 (a)

	
11.01

	
       (b)                                                                                   

	
N.A.

	
       (c)                                                                                   

	
11.01

N.A. means not applicable.

*  This Cross Reference Table is not part of this Indenture.

 

 

  

-i-

  

 

 

TABLE OF CONTENTS

 

Page

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

	
  

	
Section 1.01

	
Definitions

	
1

	
  

	
Section 1.02

	
Other Definitions

	
10

	
  

	
Section 1.03

	
Incorporation by Reference of Trust Indenture Act

	
11

	
  

	
Section 1.04

	
Rules of Construction

	
11

 

ARTICLE 2

 

THE NOTES

 

	
  

	
Section 2.01

	
Form and Dating

	
12

	
  

	
Section 2.02

	
Execution and Authentication

	
14

	
  

	
Section 2.03

	
Registrar and Paying Agent

	
15

	
  

	
Section 2.04

	
Paying Agent to Hold Money in Trust

	
16

	
  

	
Section 2.05

	
Holder Lists

	
16

	
  

	
Section 2.06

	
Transfer and Exchange

	
16

	
  

	
Section 2.07

	
Replacement Notes

	
28

	
  

	
Section 2.08

	
Outstanding Notes

	
28

	
  

	
Section 2.09

	
Treasury Notes

	
29

	
  

	
Section 2.10

	
Temporary Notes

	
29

	
  

	
Section 2.11

	
Cancellation

	
29

	
  

	
Section 2.12

	
Defaulted Interest

	
30

	
  

	
Section 2.13

	
CUSIP Numbers.

	
30

 

ARTICLE 3

 

REDEMPTION AND PREPAYMENT

 

	
  

	
Section 3.01

	
Redemption and Prepayment

	
30

 

ARTICLE 4

 

COVENANTS

 

	
  

	
Section 4.01

	
Payment of Notes

	
30

	
  

	
Section 4.02

	
Maintenance of Office or Agency

	
31

 

 

  

-ii-

  

 

ARTICLE 5

 

SUCCESSORS

 

	
  

	
Section 5.01

	
Merger, Consolidation or Sale of Assets

	
31

	
  

	
Section 5.02

	
Successor Person Substituted

	
32

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

	
  

	
Section 6.01

	
Events of Default

	
32

	
  

	
Section 6.02

	
Acceleration

	
34

	
  

	
Section 6.03

	
Other Remedies

	
34

	
  

	
Section 6.04

	
Waiver of Existing Defaults

	
34

	
  

	
Section 6.05

	
Control by Majority

	
35

	
  

	
Section 6.06

	
Limitation on Suits

	
35

	
  

	
Section 6.07

	
Rights of Holders of Notes to Receive Payment

	
35

	
  

	
Section 6.08

	
Collection Suit by Trustee

	
35

	
  

	
Section 6.09

	
Trustee May File Proofs of Claim

	
36

	
  

	
Section 6.10

	
Priorities

	
36

	
  

	
Section 6.11

	
Undertaking for Costs

	
37

 

ARTICLE 7

 

TRUSTEE

 

	
  

	
Section 7.01

	
Duties of Trustee

	
37

	
  

	
Section 7.02

	
Rights of Trustee

	
38

	
  

	
Section 7.03

	
Individual Rights of Trustee

	
39

	
  

	
Section 7.04

	
Trustee’s Disclaimer

	
40

	
  

	
Section 7.05

	
Notice of Defaults

	
40

	
  

	
Section 7.06

	
Reports by Trustee to Holders

	
40

	
  

	
Section 7.07

	
Compensation and Indemnity

	
40

	
  

	
Section 7.08

	
Replacement of the Trustee

	
41

	
  

	
Section 7.09

	
Successor Trustee by Merger, etc

	
42

	
  

	
Section 7.10

	
Eligibility; Disqualification

	
42

	
  

	
Section 7.11

	
Preferential Collection of Claims Against the Issuers

	
42

 

ARTICLE 8

 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

	
  

	
Section 8.01

	
Option to Effect Legal Defeasance or Covenant Defeasance

	
43

 

 

  

-iii-

  

 

 

 

	
  

	
Section 8.02

	
Legal Defeasance and Discharge

	
43

	
  

	
Section 8.03

	
Covenant Defeasance.

	
43

	
  

	
Section 8.04

	
Conditions to Legal or Covenant Defeasance

	
44

	
  

	
Section 8.05

	
Deposited Money and Government Securities

	
 

	
  

	
 

	
to Be Held in Trust; Other Miscellaneous Provisions

	
45

	
  

	
Section 8.06

	
Repayment to Issuers

	
46

	
  

	
Section 8.07

	
Reinstatement

	
46

 

 

ARTICLE 9

 

AMENDMENT, SUPPLEMENT AND WAIVER

 

	
  

	
Section 9.01

	
Without Consent of Holders of Notes

	
47

	
  

	
Section 9.02

	
With Consent of Holders of Notes

	
48

	
  

	
Section 9.03

	
Compliance with Trust Indenture Act

	
49

	
  

	
Section 9.04

	
Revocation and Effect of Consents

	
49

	
  

	
Section 9.05

	
Notation on or Exchange of Notes

	
49

	
  

	
Section 9.06

	
Trustee to Sign Amendments, etc

	
50

 

ARTICLE 10

 

GUARANTEE

 

	
  

	
Section 10.01

	
Guarantee

	
50

	
  

	
Section 10.02

	
Limitation on Liability

	
52

	
  

	
Section 10.03

	
Successors and Assigns

	
53

	
  

	
Section 10.04

	
No Waiver

	
53

	
  

	
Section 10.05

	
Modification

	
53

	
  

	
Section 10.06

	
Execution of Supplemental Indenture for Future Guarantors

	
54

	
  

	
Section 10.07

	
Non-Impairment

	
54

 

ARTICLE 11

 

MISCELLANEOUS

 

	
  

	
Section 11.01

	
Trust Indenture Act Controls

	
54

	
  

	
Section 11.02

	
Notices

	
54

	
  

	
Section 11.03

	
Communication by Holders with Other Holders

	
56

	
  

	
Section 11.04

	
Certificate and Opinion as to Conditions Precedent

	
56

	
  

	
Section 11.05

	
Statements Required in Certificate or Opinion

	
56

	
  

	
Section 11.06

	
Rules by Trustee and Agents

	
57

	
  

	
Section 11.07

	No Personal Liability of Directors, Officers,	
 

	
  

	
 

	
Employees, Members and Stockholders

	
57

 

 

 

 

  

-iv-

  

 

 

	
  

	
Section 11.08

	
Governing Law

	
57

	
  

	
Section 11.09

	
No Adverse Interpretation of Other Agreements

	
57

	
  

	
Section 11.10

	
Successors

	
57

	
  

	
Section 11.11

	
Severability

	
58

	
  

	
Section 11.12

	
Counterpart Originals

	
58

	
  

	
Section 11.13

	
Table of Contents, Headings, etc

	
58

	
  

	
Section 11.14

	
Waiver of Jury Trial.

	
58

	
  

	
Section 11.15

	
Force Majeure.

	
58

 

 

ARTICLE 12

 

SATISFACTION AND DISCHARGE

 

	
  

	
Section 12.01

	
Satisfaction and Discharge of Indenture

	
58

	
  

	
Section 12.02

	
Application of Trust Money

	
59

 

 

  

-v-

  

 

INDENTURE dated as of May 10, 2011 among CCO Holdings, LLC, a Delaware limited liability company (as further defined below, the “Company”), CCO Holdings Capital Corp., a Delaware corporation (as further defined below, “Capital Corp” and together with the Company, the “Issuers”), Charter Communications, Inc., a Delaware corporation (as further defined below, “CCI” or the “Parent Guarantor”) (with respect to Article 10 and Section 7.07 only) and The Bank of New York Mellon Trust Company, N.A., as trustee (the “Trustee”).

 

W I T N E S S E T H :

WHEREAS, the Issuers have duly authorized the execution and delivery of this Indenture to provide for the issuance of unsecured debentures, notes, bonds or other evidences of indebtedness (the “Notes”) in an unlimited aggregate principal amount to be issued from time to time in one or more series as provided in this Indenture; and

 

WHEREAS, all things necessary to make this Indenture a valid and legally binding agreement of the Issuers, in accordance with its terms, have been done.

 

The Issuers and the Trustee agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the Notes:

 

ARTICLE 1

 

DEFINITIONS AND INCORPORATION BY REFERENCE

 

	
Section 1.01  

	
Definitions.

 

“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 purposes of this definition, “control,” 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, by agreement or otherwise.  For purposes of this definition, the terms “controlling, “controlled by” and “under common control with” shall have correlative meanings.

 

“Agent” means any Registrar or Paying Agent.

 

“Applicable Procedures” means, with respect to any transfer or transaction involving a Global Note or beneficial interest therein, the rules and procedures of the Depositary, Euroclear and Clearstream, in each case to the extent applicable to such transaction and as in effect from time to time.

 

“Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination, the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the lessee, be extended.  Such present value shall be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP.

 

 

  

  

  

 

“Bankruptcy Law” means Title 11, U.S. Code or any similar Federal or state law of any jurisdiction relating to bankruptcy, insolvency, winding up, liquidation, reorganization or relief of debtors.

 

“Board of Directors” means the board of directors or comparable governing body of CCI or if specified, the Company, as the case may be, in either case as constituted as of the date of any determination required to be made, or action required to be taken, pursuant to this Indenture.

 

“Business Day” means any day other than a Legal Holiday.

 

“Capital Corp” means CCO Holdings Capital Corp., a Delaware corporation, and any successor Person thereto.

 

“Capital Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP.

 

“Capital Stock” means:

 

(1)           in the case of a corporation, corporate stock;

 

(2)           in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

 

(3)           in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and

 

(4)           any other interest (other than any debt obligation) or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

 

“CCI” means Charter Communications, Inc., a Delaware corporation, and any successor Person thereto.

 

“Clearstream” means Clearstream Banking, société anonyme (formerly Cedelbank).

 

“Commission” or “SEC” means the Securities and Exchange Commission.

 

“Company” means CCO Holdings, LLC, a Delaware limited liability company, and any successor Person thereto, but for the avoidance of doubt, does not include any of its Subsidiaries.

 

“Corporate Trust Office of the Trustee” shall be at the address of the Trustee specified in Section 11.02 or such other address as to which the Trustee may designate from time 

 

 

  

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to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee.

 

“Credit Facilities” means, with respect to the Company and/or its Restricted Subsidiaries, and with respect to any other entity as the context requires, one or more debt facilities (including indentures), in each case with banks, lenders or noteholders (other than a Parent of the Issuers) providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) letters of credit, notes, guarantees, and commercial paper in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time.

 

“Default” means any event that is, or with the passage of time or the giving of notice or both would be, an Event of Default; provided, that any Default that results solely from the taking of an action that would have been permitted but for the continuation of a previous Default will be deemed to be cured if such previous Default is cured prior to becoming an Event of Default.

 

“Definitive Note” means a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 2.06, substantially in the form of Exhibit A hereto except that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with respect to the securities of any series, the Person specified in Section 2.03 as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable provision of this Indenture.

 

“Equity Interests” means Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock).

 

“Euroclear” means Morgan Guaranty Trust Company of New York, Brussels office, as operator of the Euroclear system.

 

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

 

“GAAP” means generally accepted accounting principles in the United States in effect as of September 27, 2010. At any time after the Issue Date, the Issuers may elect to apply International Financial Reporting Standards (“IFRS”) accounting principles in lieu of GAAP and, upon any such election, references herein to GAAP shall thereafter be construed to mean IFRS on the date of such election; provided that any such election, once made, shall be irrevocable; provided, further, that any calculation or determination in this Indenture that requires the application of GAAP for periods that include fiscal quarters ended prior to the Issuers’ election to apply IFRS shall remain as previously calculated or determined in accordance with GAAP.  The Issuers shall give notice of any such election made in accordance with this definition to the Trustee.

 

 

  

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“Global Note Legend” means the legend set forth in Section 2.06(f)(ii) which is required to be placed on all Global Notes issued under this Indenture.

 

“Global Notes” means, individually and collectively, each of the Restricted Global Notes and the Unrestricted Global Notes.

 

“Government Securities” means direct obligations of, or obligations guaranteed by, the United States of America, and the payment for which the United States pledges its full faith and credit.

 

“Guarantee” or “guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness, measured as the lesser of the aggregate outstanding amount of the Indebtedness so guaranteed and the face amount of the guarantee.

 

“Guarantor” means the Parent Guarantor and any Subsidiary that executes a supplemental indenture and provides a Subsidiary Guarantee in accordance with the terms of any supplemental indenture.

 

“Hedging Obligations” means, with respect to any Person, the obligations of such Person under:

 

(1)           interest rate swap agreements, interest rate cap agreements and interest rate collar agreements;

 

(2)           interest rate option agreements, foreign currency exchange agreements, foreign currency swap agreements; and

 

(3)           other agreements or arrangements designed to protect such Person against fluctuations in interest and currency exchange rates.

 

“Holder” means a holder of the Notes.

 

“IFRS” has the meaning assigned to such term in the definition of “GAAP.”

 

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person, whether or not contingent:

 

(1)           in respect of borrowed money;

 

(2)           evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof);

 

(3)           in respect of banker’s acceptances;

 

(4)           representing Capital Lease Obligations or Attributable Debt;

 

 

  

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(5)           in respect of the balance deferred and unpaid of the purchase price of any property due more than six months after the property is acquired, except any such balance that constitutes an accrued expense or trade payable; or

 

(6)           represented by Hedging Obligations only to the extent an amount is then owed and is payable pursuant to the terms of such Hedging Obligations;

 

if and to the extent any of the preceding items would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP.

 

The term “Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person) and, to the extent not otherwise included, the guarantee by such Person of any indebtedness of any other Person.  The amount of any Indebtedness outstanding as of any date shall be:

 

(1)           the accreted value thereof, in the case of any Indebtedness issued with original issue discount; and

 

(2)           the principal amount thereof, together with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness.

 

“Indenture” means this Indenture, as amended or supplemented from time to time.

 

“Indirect Participant” means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Institutional Accredited Investor” means an institution that is an “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act that is not also a QIB.

 

“Investments” means, with respect to any Person, all investments by such Person in other Persons, including Affiliates, in the forms of direct or indirect loans (including guarantees of Indebtedness or other obligations), advances or capital contributions (excluding commission, travel and similar advances to officers and employees made in the ordinary course of business) and purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.

 

“Issue Date” with respect to any series of Notes means the date that Notes of any such series are first issued under this Indenture and any supplemental indenture.

 

“Issuers” has the meaning assigned to it in the preamble to this Indenture.

 

“Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in The City of New York or at a place of payment are authorized by law, regulation or executive order to remain closed.  If a payment date is a Legal Holiday at a place of payment, 

 

 

  

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payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such payment for the intervening period.

 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Non-U.S. Person” means a Person who is not a U.S. Person.

 

“Non-Recourse Debt” means Indebtedness:

 

(1)           as to which neither the Company nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness), (b) is directly or indirectly liable as a guarantor or otherwise, or (c) constitutes the lender;

 

(2)           no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted Subsidiary) would permit upon notice, lapse of time or both any holder of any other Indebtedness (other than the Notes) of the Company or any of its Restricted Subsidiaries to declare a default on such other Indebtedness or cause the payment thereof to be accelerated or payable prior to its Stated Maturity; and

 

(3)           as to which the lenders have been notified in writing that they will not have any recourse to the stock or assets of the Company or any of its Restricted Subsidiaries.

 

“Note” or “Notes” has the meaning assigned to it in the preamble.

 

“Note Guarantee” means any guarantee of the obligations of the Issuers under this Indenture and the Notes by any Person in accordance with the provisions of this Indenture.

 

“Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person.

 

“Officers’ Certificate” means a certificate signed on behalf of the Company or Capital Corp, as the case may be, by two Officers of the Company or Capital Corp, as the case may be, one of whom must be the principal executive officer, the chief financial officer or the treasurer of the Company or Capital Corp, as the case may be, that meets the requirements of Section 11.05.

 

“Opinion of Counsel” means an opinion from legal counsel that meets the requirements of Section 11.05.  The counsel may be an employee of or counsel to the Company or any Subsidiary of the Company.

 

 

  

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“Parent” means (i) CCH II, LLC, a Delaware limited liability company, and any successor Person thereto, (ii) CCH I, LLC, a Delaware limited liability company, and any successor Person thereto, (iii) Charter Communications Holdings, LLC, a Delaware limited liability company, and any successor Person thereto, (iv) Charter Communications Holding Company, LLC, and any successor Person thereto, (v) CCI and/or any direct or indirect Subsidiary of the foregoing 100% of the Capital Stock of which is owned directly or indirectly by one or more of the foregoing Persons, as applicable, and that directly or indirectly beneficially owns 100% of the Capital Stock of the Company, and any successor Person to any of the foregoing.

 

“Parent Guarantee” means the Note Guarantee of CCI and its successors.

 

“Parent Guarantor” means CCI and its successors.

 

“Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to DTC, shall include Euroclear and Clearstream).

 

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

 

“Private Placement Legend” means the legend set forth in Section 2.06(f)(i)(a) to be placed on Notes issued under this Indenture where appropriate.

 

“QIB” means a “qualified institutional buyer” as defined in Rule 144A.

 

“Register” means a register in which, subject to such reasonable regulations as it may prescribe, the Issuers shall provide for the registration of the Notes and of transfers and exchanges of such Notes which the Issuers shall cause to be kept at the appropriate office of the Registrar in accordance with Section 2.03.

 

“Regulation S” means Regulation S promulgated under the Securities Act.

 

“Regulation S Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend, the Private Placement Legend and the Regulation S Legend deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in an initial denomination equal to the outstanding principal amount of any Notes initially sold in reliance on Rule 903 of Regulation S.

 

“Regulation S Legend” means the legend set forth in Section 2.06(f)(iii) which is required to be placed on all Regulation S Global Notes issued under this Indenture.

 

“Regulation S-X” means Regulation S-X promulgated by the Commission.

 

“Responsible Officer” when used with respect to the Trustee, means any officer within the Corporate Trust Administration of the Trustee (or any successor group of the Trustee) who customarily performs functions similar to those performed by the Persons who at the time 

 

 

  

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shall be such officer and with direct responsibility for the administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

 

“Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

 

“Restricted Global Note” means a Global Note bearing the Private Placement Legend.

 

“Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

 

“Rule 144” means Rule 144 promulgated under the Securities Act.

 

“Rule 144A” means Rule 144A promulgated under the Securities Act.

 

“Rule 144A Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in an initial denomination equal to the outstanding principal amount of any Notes initially sold in reliance on Rule 144A.

 

“Rule 903” means Rule 903 promulgated under the Securities Act.

 

“Rule 904” means Rule 904 promulgated under the Securities Act.

 

“Security” or “Securities” means one or more of the Notes duly authenticated by the Trustee and delivered pursuant to the provisions of this Indenture.

 

“Securities Act” means the Securities Act of 1933, as amended.

 

“Significant Subsidiary” means (a) with respect to any Person, any Restricted Subsidiary of such Person which would be considered a “Significant Subsidiary” as defined in Rule 1-02(w) of Regulation S-X under the Securities Act and (b) in addition, with respect to the Company, Capital Corp.

 

“Stated Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which such payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness, or, if none, the original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or repurchase any such interest or principal prior to the date originally scheduled for the payment thereof.

 

“Subsidiary” means, with respect to any Person:

 

(1)           any corporation, association or other business entity of which at least 50% of the total voting power of shares of Capital Stock entitled (without regard to the 

 

 

  

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occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person (or a combination thereof) and, in the case of any such entity of which 50% of the total voting power of shares of Capital Stock is so owned or controlled by such Person or one or more of the other Subsidiaries of such Person, such Person and its Subsidiaries also have the right to control the management of such entity pursuant to contract or otherwise; and

 

(2)           any partnership (a) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person or (b) the only general partners of which are such Person or one or more Subsidiaries of such Person (or any combination thereof).

 

“Subsidiary Guarantee” means the Guarantee of the payment of any series of Notes by any Subsidiary of the Company pursuant to the terms of a supplemental indenture with respect to such Notes executed in accordance with the terms hereof.

 

“Tax” shall mean any tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and any other liabilities related thereto).

 

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

 

“Trustee” means The Bank of New York Mellon Trust Company, N.A., until a successor replaces The Bank of New York Mellon Trust Company, N.A., in accordance with the applicable provisions of this Indenture and thereafter means the successor serving hereunder.

 

“Unrestricted Definitive Note” means one or more Definitive Notes that do not bear and are not required to bear the Private Placement Legend.

 

“Unrestricted Global Note” means a permanent Global Note substantially in the form of Exhibit A attached hereto that bears the Global Note Legend and that has the “Schedule of Exchanges of Interests in the Global Note” attached thereto, and that is deposited with or on behalf of and registered in the name of the Depositary, representing any Notes that do not bear the Private Placement Legend.

 

“Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by the Board of Directors of the Company or CCI as an Unrestricted Subsidiary pursuant to a board resolution, but only to the extent that such Subsidiary:

 

(1)           has no Indebtedness other than Non-Recourse Debt;

 

(2)           is not party to any agreement, contract, arrangement or understanding with the Company or any Restricted Subsidiary thereof unless the terms of any such agreement, contract, arrangement or understanding are no less favorable to the Company or any Restricted Subsidiary than those that might be obtained at the time from Persons 

 

 

  

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who are not Affiliates of the Company unless such terms constitute Investments permitted under applicable sections of any supplemental indenture; and

 

(3)           does not own any Capital Stock of any Restricted Subsidiary of the Company.

 

Any designation of a Subsidiary of the Company as an Unrestricted Subsidiary shall be evidenced to the Trustee by filing with the Trustee a certified copy of the board resolution giving effect to such designation and an Officers’ Certificate certifying that such designation complied with the preceding conditions and was permitted by the applicable section of any supplemental indenture.  If, at any time, any Unrestricted Subsidiary would fail to meet the preceding requirements as an Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted Subsidiary for purposes of this Indenture and any Indebtedness of such Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the Company as of such date and, if such Indebtedness is not permitted to be incurred as of such date under the applicable section of any supplemental indenture, the Company shall be in default of such covenant. The Board of Directors of the Company or CCI may at any time designate any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such designation shall be deemed to be an incurrence of Indebtedness by a Restricted Subsidiary of any outstanding Indebtedness of such Unrestricted Subsidiary and such designation shall only be permitted if:

 

(1)           such Indebtedness is permitted under the applicable section of any supplemental indenture calculated on a pro forma basis as if such designation had occurred at the beginning of the applicable reference period; and

 

(2)           no Default or Event of Default would be in existence immediately following such designation.

 

“U.S. Person” means a U.S. person as defined in Rule 902(k) under the Securities Act.

 

“Wholly Owned Restricted Subsidiary” of any Person means a Restricted Subsidiary of such Person all of the outstanding common equity interests or other ownership interests of which (other than directors’ qualifying shares) shall at the time be owned by such Person and/or by one or more Wholly Owned Restricted Subsidiaries of such Person.

 

	
Section 1.02  

	
Other Definitions.

 

	
 

Term

	
Defined

in Section

	
“Authentication Order”                                                                                     

	
2.02

	
“Covenant Defeasance”                                                                                     

	
8.03

	
“DTC”                                                                                     

	
2.03

	
“Event of Default”                                                                                     

	
6.01

	
“Guaranteed Obligations”                                                                                     

	
10.01

	
“Legal Defeasance”                                                                                     

	
8.02

	
“Paying Agent”                                                                                     

	
2.03

	
“Payment Default”                                                                                     

	
6.01

 

 

 

  

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Term

	
Defined

in Section

	
“Purchase Date”                                                                                     

	
3.09

	
“Registrar”                                                                                     

	
2.03

	
Section 1.03  

	
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:

 

“indenture securities” means the Notes;

 

“indenture security holder” means a Holder of a Note;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional trustee” means the Trustee; and

 

“obligor” on the Notes means the Issuers and any successor obligor upon the Notes.

 

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 have the meanings so assigned to them.

 

	
Section 1.04  

	
Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

(ii)          an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(iii)         “or” is not exclusive;

 

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

 

(v)          provisions apply to successive events and transactions;

 

(vi)         references to sections of or rules under the Securities Act shall be deemed to include substitute, replacement or successor sections or rules adopted by the SEC from time to time;

 

 

  

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(vii)         references to any statute, law, rule or regulation shall be deemed to refer to the same as from time to time amended and in effect and to any successor statute, law, rule or regulation;

 

(viii)        references to any contract, agreement or instrument shall mean the same as amended, modified, supplemented or amended and restated from time to time, in each case, in accordance with any applicable restrictions contained in this Indenture; and

 

(ix)         “including” means “including, without limitation.”

 

ARTICLE 2

 

THE NOTES

 

	
Section 2.01  

	
Form and Dating.

 

(a) General.  The Notes shall be substantially in the form of Exhibit A hereto.  The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage or this Indenture and may reference terms of the Notes.  Each Note shall be dated the date of its authentication.

 

The aggregate principal amount of Notes that may be authenticated and delivered under this Indenture is unlimited.  The Notes may be issued in one or more series.  There shall be set forth in one or more indentures supplemental hereto, prior to the issuance of Notes of any series:

 

(a)         the title of the series (which shall distinguish the Notes of such series from the Notes of all other series;

 

(b)         any limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon transfer of, or in exchange for, or in lieu of, other Notes of such series pursuant to this Indenture);

 

(c)         the dates on which or periods during which the Notes of the series may be issued, and the dates on, or the range of dates within, which the principal of and premium, if any, on the Notes of such series are or may be payable or the method by which such date or dates shall be determined or extended;

 

(d)         the rate or rates at which the Notes of the series shall bear interest, if any, or the method by which such rate or rates shall be determined, whether such interest shall be payable in cash or additional Notes of the same series or shall accrue and increase the aggregate principal amount outstanding of such series (including if such Securities were originally issued at a discount), the date or dates from which such interest shall accrue, or the method by which such date or dates shall be determined, the interest payment dates on which any such interest shall be payable, and the record dates for the determination of Holders to whom interest is payable on such interest payment dates or the method by which such date or dates shall be determined, the right, if any, to extend or defer interest payments and the duration of such extension or deferral;

 

 

  

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(e)          if other than U.S. Dollars, the currency in which Notes of the series shall be denominated or in which payment of the principal of, premium, if any, or interest in the Notes of the series shall be payable and any other terms concerning such payment;

 

(f)          the place or places, if any, in addition to or instead of the Corporate Trust Office of the Trustee where the principal of, premium, if any, and interest on Securities of the series shall be payable, and where Securities of any series may be presented for registration of transfer, exchange or conversion, and the place or places where notices and demands to or upon the Issuers in respect of the Securities of such series may be made;

 

(g)         the price or prices at which, the period or periods within which or the date or dates on which, and the terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Issuers, if the Issuers are to have that option;

 

(h)         the obligation or right, if any, of the Issuers to redeem, purchase or repay Notes of the series pursuant to any sinking fund, amortization or analogous provisions or at the option of a Holder thereof and the price or prices at which, the period or periods within which or the date or dates on which, and the terms and conditions upon which Notes of the series shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation;

 

(i)           if other than the principal amount thereof, the portion of the principal amount of the securities of the series which shall be payable upon declaration of acceleration of the maturity thereof;

 

(j)          the Guarantors, if any, of the Notes of the series, and the extent of the guarantees (including provisions relating to seniority, subordination, and the release of the Guarantors), if any, and any additions or changes to permit or facilitate guarantees of such Securities;

 

(k)         whether the Notes of the series are to be issued as original issue discount Securities and the amount of discount with which such Notes may be issued;

 

(l)          provisions, if any, for the defeasance of Notes of the series in whole or in part and any addition or change in the provisions related to satisfaction and discharge;

 

(m)         whether the Notes of the series are to be issued in whole or in part in the form of one or more Global Notes, and, in such case, the Depositary for such Global Notes, and the terms and conditions, if any, upon which interests in such Global Note or Global Notes may be exchanged in whole or in part for the individual Notes represented thereby in definitive form registered in the name or names of Persons other than such Depositary or a nominee or nominees thereof;

 

(n)         the date as of which any Global Notes of the series shall be dated if other than the original issuance of the first Security of the series to be issued;

 

(o)         the form of the Notes of the series;

 

 

  

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(p)         whether the Notes of such series are subject to subordination and the terms of such subordination;

 

(q)         any restriction or condition on the transferability of the Notes such series;

 

(r)          any addition or change in the provisions related to compensation and reimbursement of the Trustee which applies to Securities of such series;

 

(s)         any addition or change in the provisions related to supplemental indentures which applies to Notes of such series;

 

(t)          provisions, if any, granting special rights to Holders upon the occurrence of specified events;

 

(u)         any addition to or change in the Events of the Default which applies to any Notes of the series; and

 

(v)         any other terms of the Notes of such series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 9.01).

 

(b) Global Notes.  Notes issued in global form shall be substantially in the form of Exhibit A (including the Global Note Legend thereon and the “Schedule of Exchanges of Interests in the Global Note” attached thereto).  Notes issued in definitive form shall be substantially in the form of Exhibit A (without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the Global Note” attached thereto).  Each Global Note shall represent such outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions.  Any endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby shall be made by the Trustee or the custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.06.

 

(c) [Reserved]

 

(d) Euroclear and Clearstream Procedures Applicable.  The provisions of the “Operating Procedures of the Euroclear System” and “Terms and Conditions Governing Use of Euroclear” and the “General Terms and Conditions of Clearstream” and “Customer Handbook” of Clearstream (or, in each case, equivalent documents setting forth the procedures of Euroclear and Clearstream) shall be applicable to transfers of beneficial interests in Regulation S Global Notes that are held by Participants through Euroclear or Clearstream.

 

	
Section 2.02  

	
Execution and Authentication.

 

Two Officers shall sign the Notes for each Issuer by manual or facsimile signature.

 

 

  

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

 

A Note shall not be valid until authenticated by the manual signature (which may be by facsimile) of the Trustee.  The signature shall be conclusive evidence that the Note has been authenticated under this Indenture.

 

At any time and from time to time after the execution and delivery of this Indenture, the Issuers may deliver Notes executed by the Issuers to the Trustee for authentication; and the Trustee shall authenticate and deliver Notes upon a written order of the Issuers signed by an Officer of each of the Issuers (an “Authentication Order”).  Such Authentication Order shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated, and whether the Notes are to be issued as one or more Global Notes and such other information as the Issuers may include or the Trustee may reasonably request.  The aggregate principal amount of Notes which may be authenticated and delivered under this Indenture is unlimited.

 

The Trustee may appoint an authenticating agent acceptable to the Issuers to authenticate Notes.  An authenticating agent may authenticate Notes 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 Holders or an Affiliate of the Issuers.

 

	
Section 2.03  

	
Registrar and Paying Agent.

 

The Issuers shall maintain an office or agency in the Borough of Manhattan, the City of New York, where Notes may be presented for registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for payment (“Paying Agent”).  Until otherwise designated by the Issuers, the Issuers’ office or agency in New York shall be the office of the Trustee maintained for such purpose.  The Registrar shall keep the Register of the Notes and of their transfer and exchange.  The Issuers may appoint one or more co-registrars and one or more additional paying agents.  The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent.  The Issuers may change any Paying Agent or Registrar without notice to any Holder.  The Registrar or Paying Agent may resign at any time upon not less than 10 Business Days’ prior written notice to the Issuers.  The Issuers shall enter into an appropriate agency agreement with any Agent not a party to this Indenture, which shall incorporate any applicable terms of the TIA.  The Issuers shall notify the Trustee in writing of the name and address of any Agent not a party to this Indenture.  The Company or any of its Subsidiaries may act as Paying Agent or Registrar.

 

The Issuers initially appoint The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Notes.

 

The Issuers initially appoint the Trustee to act as the Registrar and Paying Agent and to act as custodian with respect to the Global Notes.

 

 

  

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Section 2.04  

	
Paying Agent to Hold Money in Trust.

 

Principal of, premium, if any, and interest on the Notes will be payable at the office of the Paying Agent or, at the option of the Issuers, payment of interest may be made by check mailed to Holders at their respective addresses set forth in the Register; provided, all payments of principal, premium, if any, and interest with respect to the Notes represented by one or more Global Notes registered in the name or held by the Depositary shall be made by wire transfer of immediately available funds to accounts specified by the Holder prior to 10:00 a.m., New York time, on each due date of the principal and interest on any Note.  The Issuers shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent shall hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal, premium, if any, or interest on the Notes, and shall notify the Trustee of any default by the Issuers 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 Issuers 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 Holders all money held by it as Paying Agent.  Upon any bankruptcy or reorganization proceedings relating to the Issuers, the Trustee shall serve as Paying Agent for the Notes.

 

	
Section 2.05  

	
Holder 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 all Holders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar, the Issuers shall furnish to the Trustee at least seven Business Days before each interest payment date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders, and the Issuers shall otherwise comply with TIA § 312(a).

 

	
Section 2.06  

	
Transfer and Exchange.

 

(a) Transfer and Exchange of Global Notes.  A Global Note may not be transferred as a whole except by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary.  All Global Notes shall be exchanged by the Issuers for Definitive Notes if:

 

(i) the Issuers deliver to the Trustee notice from the Depositary that it is unwilling or unable to continue to act as Depositary or that it is no longer a clearing agency registered under the Exchange Act and, in either case, a successor Depositary is not appointed by the Issuers within 120 days after the date of such notice from the Depositary;

 

 

  

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(ii) the Issuers in their sole discretion determine that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes and deliver a written notice to such effect to the Trustee; or

 

(iii) there shall have occurred and be continuing a Default or Event of Default with respect to the Notes.

 

Upon the occurrence of any of the preceding events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee.  Global Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10.  Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10, shall be authenticated and delivered in the form of, and shall be, a Global Note.  A Global Note may not be exchanged for another Note other than as provided in this Section 2.06(a); however, beneficial interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b), (c) or (f).

 

(b) Transfer and Exchange of Beneficial Interests in the Global Notes.  The transfer and exchange of beneficial interests in the Global Notes shall be effected through the Depositary, in accordance with the provisions of this Indenture and the Applicable Procedures.  Beneficial interests in Restricted Global Notes shall be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act.  Prior to the expiration of the 40-day distribution compliance period set forth in Regulation S, beneficial interests in any Regulation S Global Notes may be held only through Euroclear or Clearstream unless transferred in accordance with Section 2.06(b)(iii)(A).  Transfers of beneficial interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

 

(i) Transfer of Beneficial Interests in the Same Global Note.  Beneficial interests in any Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer restrictions set forth in the Private Placement Legend.  Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.06(b)(i).

 

(ii) All Other Transfers and Exchanges of Beneficial Interests in Global Notes.  In connection with all transfers and exchanges of beneficial interests that are not subject to Section 2.06(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either:

 

(A) a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

 

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(B) instructions given in accordance with the Applicable Procedures containing information regarding the Participant account to be credited with such increase; or

 

(C)  a written order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

(D) instructions given by the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (A) above.

 

(iii) Transfer of Beneficial Interests to Another Restricted Global Note.  A beneficial interest in any Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the requirements of Section 2.06(b)(ii) above and the Registrar receives the following:

 

(A) if the transferee will take delivery in the form of a beneficial interest in the Rule 144A Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof; and

 

(B) if the transferee will take delivery in the form of a beneficial interest in the Regulation S Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof.

 

(iv) Transfer and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial Interests in an Unrestricted Global Note.  A beneficial interest in any Restricted Global Note may be exchanged by any Holder thereof for a beneficial interest in an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section 2.06(b)(ii) above and:

 

(A) such exchange or transfer is effected with the Issuers’ consent; or

 

(B) such exchange or transfer is effected after the expiration of the 40-day distribution compliance period set forth in Regulation S and the Registrar receives the following:

 

(1)           if the Holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

 

 

  

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(2)           if the Holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph (B), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

 

If any such transfer is effected pursuant to subparagraph (B) above at a time when an Unrestricted Global Note has not yet been issued, the Issuers shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) above.

 

Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global Note.

 

(c) Transfer or Exchange of Beneficial Interests for Definitive Notes.

 

(i) Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.  If any Holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation:

 

(A) if the Holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof (provided that any such beneficial interest in Regulation S Global Note shall not be so exchangeable until after the expiration of the 40-day distribution compliance period set forth in Regulation S);

 

(B) if such beneficial interest is being transferred to a QIB in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

 

(C) if such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

 

(D) if such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance 

 

 

  

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with Rule 144 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

 

(E) if such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3)(d) thereof, if applicable;

 

(F) if such beneficial interest is being transferred to the Issuers or any of their Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

 

(G) if such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g), and the Issuers shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c) shall be registered in such name or names and in such authorized denomination or denominations as the Holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Definitive Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein.

 

(ii) Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.  A Holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note only if:

 

(A) such exchange or transfer is effected with the Issuers’ consent; or

 

(B) such exchange or transfer is effected after the expiration of the 40-day distribution compliance period set forth in Regulation S and the Registrar receives the following:

 

(1)           if the Holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Definitive Note that does not bear the Private Placement Legend, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof; or

 

(2)           if the Holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in

 

 

  

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the form of a Definitive Note that does not bear the Private Placement Legend, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph (B), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

 

(iii) Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.  If any Holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.06(b)(ii), the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g), and the Issuers shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(iii) shall be registered in such name or names and in such authorized denomination or denominations as the Holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant.  The Trustee shall deliver such Definitive Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(iii) shall not bear the Private Placement Legend.

 

(d) Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.

 

(i) Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.  If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation:

 

(A) if the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof;

 

(B) if such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

 

(C) if such Restricted Definitive Note is being transferred to a Non- U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904 

 

 

  

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under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

 

(D) if such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144 under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

 

(E) if such Restricted Definitive Note is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable;

 

(F) if such Restricted Definitive Note is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

 

(G) if such Restricted Definitive Note is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

 

the Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global Note, in the case of clause (B) above, the Rule 144A Global Note or, in the case of clause (C) above, the Regulation S Global Note.

 

(ii) Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note only if:

 

(A) such exchange or transfer is effected with the Issuers’ consent; or

 

(B) such exchange or transfer is effected after the expiration of the 40-day distribution compliance period set forth in Regulation S and the Registrar receives the following:

 

(1)           if the Holder of such Definitive Notes proposes to exchange such Notes for a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or

 

(2)           if the Holder of such Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of a beneficial interest in the

 

 

  

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Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph (B), if the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Registrar to the effect that such exchange or transfer is in compliance with the Securities Act  and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

 

Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(ii), the Trustee shall cancel the Definitive Notes and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Note.

 

(iii) Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of an Unrestricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note at any time.  Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive Note and increase or cause to be increased the aggregate principal amount of one of the Unrestricted Global Notes.

 

If any such exchange or transfer from a Definitive Note to a beneficial interest is effected pursuant to subparagraph (ii)(B) or (iii) above at a time when an Unrestricted Global Note has not yet been issued, the Issuers shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

 

(e) Transfer and Exchange of Definitive Notes for Definitive Notes.  Upon request by a Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the Registrar shall register the transfer or exchange of Definitive Notes.  Prior to such registration of transfer or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly authorized in writing.  In addition, the requesting Holder shall provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e):

 

(i) Restricted Definitive Notes to Restricted Definitive Notes.  Any Restricted Definitive Note may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following:

 

(A) if the transfer will be made pursuant to Rule 144A under the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof;

 

 

  

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(B) if the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and

 

(C) if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable.

 

(ii) Restricted Definitive Notes to Unrestricted Definitive Notes.  Any Restricted Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if:

 

(A) such exchange or transfer is effected with the Issuers’ consent; or

 

(B) such exchange or transfer is effected after the expiration of the 40-day distribution compliance period set forth in Regulation S and the Registrar receives the following:

 

(1)           if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or

 

(2)           if the Holder of such Restricted Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph (B), if the Registrar so requests, an Opinion of Counsel in form reasonably acceptable to the Issuers to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

 

(iii) Unrestricted Definitive Notes to Unrestricted Definitive Notes.  A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note.  Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof.

 

(f) Legends.  The following legends shall appear on the face of all Global Notes and Definitive Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture:

 

 

  

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(i) Private Placement Legend.

 

(A) Except as permitted by subparagraph (B) below, each Restricted Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form:

 

THE NOTE (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE NOTE EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE NOTES EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE NOTES EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) (A) TO A PERSON WHO IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT, OR (D) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE ISSUERS SO REQUEST), (II) TO THE ISSUERS, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE NOTES EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE NOTE EVIDENCED HEREBY.

 

(B) Notwithstanding the foregoing, any Initial Note and any Global Note or Definitive Note issued pursuant to subparagraph (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii) or (e)(iii) of this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend.

 

 

  

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(ii) Global Note Legend.  Each Global Note shall bear a legend in substantially the following form:

 

THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

(iii) Regulation S Legend.  Each Regulation S Global Note should bear a legend in substantially the following form:

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE 

 

 

  

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THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

 

(g) Cancellation and/or Adjustment of Global Notes.  At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each such Global Note shall be returned to or retained and canceled by the Trustee in accordance with Section 2.11.  At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note shall be reduced accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an endorsement shall be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

 

(h) General Provisions Relating to Transfers and Exchanges.

 

(i) To permit registrations of transfers and exchanges, the Issuers shall execute and the Trustee shall authenticate Global Notes and Definitive Notes upon the Issuers’ order or at the Registrar’s request.

 

(ii) No service charge shall be made to a Holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but the Issuers 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 taxes or similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10 and 9.05).

 

(iii) The Registrar shall not be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

 

(iv) All Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes shall be the valid obligations of the Issuers, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(v) The Issuers shall not be required to register the transfer of or to exchange a Note between a record date and the next succeeding interest payment date.

 

(vi) Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Issuers may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuers shall be affected by notice to the contrary.

 

 

  

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(vii) The Trustee shall authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.02.

 

(viii) All certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.06 to effect a registration of transfer or exchange may be submitted by facsimile.

 

(ix) Each Holder of a Security agrees to indemnify the Issuers and the Trustee against any liability that may result from the transfer, exchange or assignment of such Holder’s Security in violation of any provision of this Indenture and/or applicable United States Federal or state securities law.

 

(x) The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Security (including any transfers between or among Depositary Participants or beneficial owners of interests in any Global Security) other than to require delivery of such certificates and other documentation or evidence as are expressly required by, and to do so if and when expressly required by the terms of, this Indenture, and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

(xi) Neither the Trustee nor any Agent shall have any responsibility for any actions taken or not taken by the Depositary.

 

(xii) Notwithstanding anything contained herein, any transfers, replacements or exchanges of Notes, including as contemplated in this Article 2, shall not be deemed to be an incurrence of Indebtedness.

 

	
Section 2.07  

	
Replacement Notes.

 

If any mutilated Note is surrendered to the Trustee or the Issuers and the Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, the Issuers shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the Trustee’s requirements are met.  If required by the Trustee or the Issuers, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Issuers to protect the Issuers, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced.  The Issuers may charge for their expenses in replacing a Note.

 

Every replacement Note is an additional legally binding obligation of the Issuers and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder.

 

	
Section 2.08  

	
Outstanding Notes.

 

The Notes outstanding at any time are all the Notes authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions of this 

 

 

  

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Indenture, and those described in this Section 2.08 as not outstanding.  Except as set forth in Section 2.09, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the Note.

 

If a Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

 

If the principal amount of any Note is considered paid under Section 4.01, it ceases to be outstanding and interest on it ceases to accrue.

 

If the Paying Agent (other than an Issuer, a Subsidiary or an Affiliate of any thereof) holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue interest.

 

	
Section 2.09  

	
Treasury Notes.

 

In determining whether the Holders of the required principal amount of Notes have concurred in any direction, waiver or consent, Notes owned by an Issuer, or by any Person directly or indirectly controlled by or under direct or indirect common control with an Issuer or, if the TIA is applicable to this Indenture, to the extent required by the TIA, any person controlling an Issuer, shall be considered as though not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Notes that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

 

	
Section 2.10  

	
Temporary Notes.

 

Until certificates representing Notes are ready for delivery, the Issuers may prepare and the Trustee, upon receipt of an Authentication Order, shall authenticate temporary Notes.  Temporary Notes shall be substantially in the form of certificated Notes but may have variations that the Issuers considers appropriate for temporary Notes and as shall be reasonably acceptable to the Trustee.  Without unreasonable delay, the Issuers shall prepare and the Trustee shall authenticate Definitive Notes in exchange for temporary Notes.

 

Holders of temporary Notes shall be entitled to all of the benefits of this Indenture.

 

	
Section 2.11  

	
Cancellation.

 

The Issuers at any time may deliver Notes to the Trustee for cancellation.  The Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to them for registration of transfer, exchange or payment.  The Trustee and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall dispose of such canceled Notes in its customary manner.  The Issuers may not issue new Notes to replace Notes that they have paid or that have been delivered to the Trustee for cancellation.

 

 

  

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Section 2.12  

	
Defaulted Interest.

 

If the Issuers default in a payment of interest on the Notes, they shall pay the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the defaulted interest, which interest on defaulted interest shall accrue until the defaulted interest is deemed paid hereunder, to the Persons who are Holders on a subsequent special record date, in each case at the rate provided in the Notes and in Section 4.01.  The Issuers shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment.  The Issuers shall fix or cause to be fixed each such special record date and payment date; provided that no such special record date shall be less than 10 days prior to the related payment date for such defaulted interest.  At least 15 days before the special record date, the Issuers (or, upon the written request of the Issuers, the Trustee in the name and at the expense of the Issuers) shall mail or cause to be mailed to Holders a notice that states the special record date, the related payment date and the amount of such interest to be paid.

 

	
Section 2.13  

	
CUSIP Numbers.

 

The Issuers in issuing the Notes 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 Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes,  and any such redemption shall not be affected by any defect in or omission of such numbers.  The Issuers will promptly notify the Trustee in writing of any change in the "CUSIP" numbers of any Notes.

 

ARTICLE 3

 

REDEMPTION AND PREPAYMENT

 

	
Section 3.01  

	
Redemption and Prepayment

 

The redemption and prepayment terms with respect to any series of Notes will be set forth in one or more supplemental indentures governing such series of Notes.

 

ARTICLE 4

 

COVENANTS

 

	
Section 4.01  

	
Payment of Notes.

 

The Issuers shall pay or cause to be paid the principal, premium, if any, and interest on the Notes on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest shall be considered paid on the date due if the Paying Agent, if other than the Issuers or a Subsidiary thereof, holds as of 10:00 a.m. New York City time on the due date money deposited by the Issuers in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due.

 

 

  

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The Issuers shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the rate equal to 1.00% per annum in excess of the then applicable interest rate on the Notes to the extent lawful; they shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to any applicable grace period) at the same rate to the extent lawful.

 

	
Section 4.02  

	
Maintenance of Office or Agency.

 

The Issuers shall maintain in the Borough of Manhattan, The City of New York, an office or agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Issuers in respect of the Notes and this Indenture may be served.  The Issuers shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.  If at any time the Issuers shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee.

 

The Issuers may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Issuers of their obligation to maintain an office or agency in the Borough of Manhattan, The City of New York for such purposes.  The Issuers shall give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency.

 

The Issuers hereby designate The Bank of New York Mellon Trust Company, N.A., at 101 Barclay Street, Floor 8W, New York, New York  10286, as one such office or agency of the Issuers in accordance with Section 2.03.

 

ARTICLE 5

 

SUCCESSORS

 

	
Section 5.01  

	
Merger, Consolidation or Sale of Assets.

 

Neither Issuer may, directly or indirectly:  (1) consolidate or merge with or into another Person or (2) sell, assign, transfer, convey or otherwise dispose of all or substantially all of its properties or assets, in one or more related transactions, to another Person; unless:

 

        (A) either:

 

(i)           such Issuer is the surviving Person; or

 

(ii)          the Person formed by or surviving any such consolidation or merger (if other than such Issuer) or to which such sale, assignment, transfer, conveyance or other disposition shall have been made is a Person organized or existing under the laws of the 

 

 

  

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United States, any state thereof or the District of Columbia, provided that if the Person formed by or surviving any such consolidation or merger with such Issuer is a limited liability company or a Person other than a corporation, a corporate co-issuer shall also be an obligor with respect to the Notes;

 

(B) the Person formed by or surviving any such consolidation or merger (if other than such Issuer) or the Person to which such sale, assignment, transfer, conveyance or other disposition shall have been made assumes all the obligations of such Issuer under the Notes and this Indenture pursuant to agreements reasonably satisfactory to the Trustee; and

 

(C) immediately after such transaction no Default or Event of Default exists.

 

In addition, the Company may not, directly or indirectly, lease all or substantially all of its properties or assets, in one or more related transactions, to any other Person.

 

	
Section 5.02  

	
Successor Person Substituted.

 

Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or other disposition of all or substantially all of the assets of either Issuer in accordance with Section 5.01, the successor Person formed by such consolidation or into which either Issuer is merged or to which such transfer is made shall succeed to and (except in the case of a lease) be substituted for, and may exercise every right and power of, such Issuer under this Indenture with the same effect as if such successor Person had been named herein as such Issuer, and (except in the case of a lease) such Issuer shall be released from the obligations under the Notes and this Indenture, except with respect to any obligations that arise from, or are related to, such transaction.

 

ARTICLE 6

 

DEFAULTS AND REMEDIES

 

	
Section 6.01  

	
Events of Default.

 

Except where otherwise indicated by the context or where the term is otherwise defined for a specific purpose, the term “Event of Default” as used in this Indenture with respect to Notes of any series shall mean one of the following described events unless it is either inapplicable to a particular series or it is specifically deleted or modified in a supplemental indenture:

 

(1)           default for 30 consecutive days in the payment when due of interest on the Notes of such series;

 

(2)           default in payment when due of the principal of or premium, if any, on the Notes of such series;

 

(3)           failure by the Company or any of its Restricted Subsidiaries for 30 consecutive days after written notice thereof has been given to the Issuers by the Trustee

 

 

  

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or to the Issuers and the Trustee by Holders of at least 25% of the aggregate principal amount of the Notes of such series outstanding to comply with any of their other covenants or agreements in this Indenture;

 

(4)           default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Subsidiaries) whether such Indebtedness or guarantee now exists or is created after the Issue Date, if that default:

 

(a)           is caused by a failure to pay at final stated maturity the principal amount on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”) or

 

(b)           results in the acceleration of such Indebtedness prior to its express maturity,

 

and, in each case, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $100.0 million or more;

(5)           failure by the Company or any of its Restricted Subsidiaries to pay final judgments which are non-appealable aggregating in excess of $100.0 million, net of applicable insurance which has not been denied in writing by the insurer, which judgments are not paid, discharged or stayed for a period of 60 days;

 

(6)           the Company or any of its Significant Subsidiaries pursuant to or within the meaning of Bankruptcy Law:

 

(a)           commences a voluntary case,

 

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

 

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

 

(d)           makes a general assignment for the benefit of its creditors; or

 

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

 

(a)           is for relief against the Company or any of its Significant Subsidiaries in an involuntary case;

 

(b)           appoints a custodian of the Company or any of its Significant Subsidiaries or for all or substantially all of the property of the Company or any of its Significant Subsidiaries; or

 

 

  

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(c)           orders the liquidation of the Company or any of its Significant Subsidiaries;

 

and the order or decree remains unstayed and in effect for 60 consecutive days.

 

	
Section 6.02  

	
Acceleration.

 

In the case of an Event of Default arising from clause (6) or (7) of Section 6.01 with respect to the Company, all outstanding Notes shall become due and payable immediately without further action or notice.  If any other Event of Default with respect to the Notes of any series occurs and is continuing, the Trustee by notice to the Issuers or the Holders of at least 25% in principal amount of the then outstanding Notes of any series by notice to the Issuers and the Trustee may declare the Notes of such series to be due and payable immediately.  The Holders of a majority in aggregate principal amount of the Notes of any series then outstanding by written notice to the Trustee may on behalf of all of the Holders of such series rescind an acceleration and its consequences with respect to such series of Notes if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except non-payment of principal, interest or premium that has become due solely because of the acceleration) have been cured or waived.

 

	
Section 6.03  

	
Other Remedies.

 

If an Event of Default with respect to any series of Notes occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal, premium, if any, and interest on such Notes or to enforce the performance of any provision of such Notes including those under this Indenture as it related to such series of Notes.

 

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent permitted by law.

 

	
Section 6.04  

	
Waiver of Existing Defaults.

 

Holders of not less than a majority in aggregate principal amount of the then outstanding Notes of any series by notice to the Trustee may on behalf of the Holders of all of the Notes of such series waive any existing Default or Event of Default and its consequences hereunder, except a continuing Default or Event of Default in the payment of the principal of, premium, if any, or interest on, the Notes of such series (including in connection with an offer to purchase) (provided, however, that the Holders of a majority in aggregate principal amount of the then outstanding Notes of such 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.

 

 

  

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Section 6.05  

	
Control by Majority.

 

Holders of a majority in principal amount of the then outstanding Notes of any series may direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee or exercising any trust or power conferred on it, in each case with respect to such series.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture that the Trustee determines may be prejudicial to the rights of other Holders or that may involve the Trustee in personal liability.  The Trustee may take any other action which it deems proper that is not inconsistent with any such directive.

 

	
Section 6.06  

	
Limitation on Suits.

 

A Holder may pursue a remedy with respect to this Indenture or the Notes only if:

 

(a) the Holder gives to the Trustee written notice of a continuing Event of Default with respect to the series of Notes held by such Holder;

 

(b) the Holders of at least 25% in principal amount of the then outstanding Notes of such series make a written request to the Trustee to pursue the remedy;

 

(c) such Holder or Holders of Notes offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against any loss, liability or expense;

 

(d) the Trustee does not comply with the request within 60 days after receipt of the request and the offer and, if requested, the provision of indemnity; and

 

(e) during such 60-day period the Holders of a majority in principal amount of the then outstanding Notes of such series do not give the Trustee a direction inconsistent with the request.

 

A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder.

 

	
Section 6.07  

	
Rights of Holders of Notes to Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment of principal, premium, if any, and interest on any Note, on or after the respective due dates expressed in such Note (including in connection with an offer to purchase), or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder.

 

	
Section 6.08  

	
Collection Suit by Trustee.

 

If an Event of Default specified in Section 6.01(1) or (2) occurs and is continuing with respect to any series of Notes, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Issuers for the whole amount of principal of, premium, if any, and interest remaining unpaid on such Notes and interest on overdue principal and, to the extent lawful, interest and such further amount as shall be sufficient to cover the costs 

 

 

  

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and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

	
Section 6.09  

	
Trustee May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim and 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 Holders allowed in any judicial proceedings relative to the Issuers (or any other obligor upon the Notes), their creditors or their property and shall be entitled and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims and any custodian 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 Holders, to pay to the Trustee any amount due to 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 7.07.  To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07 out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.  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 Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

	
Section 6.10  

	
Priorities.

 

If the Trustee collects any money pursuant to this Article 6, it shall pay out the money in the following order:

 

First:  to the Trustee, its agents and attorneys for amounts due under Section 7.07, including payment of all compensation, expense and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection;

 

Second:  to Holders for amounts due and unpaid on the Notes for principal, premium, if any, and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, if any and interest, respectively; and

 

Third:  to the Issuers or to such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.10.

 

 

  

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Section 6.11  

	
Undertaking for Costs.

 

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 or omitted by it as a Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07, or a suit by Holders of more than 10% in principal amount of the then outstanding Notes of such series.

 

ARTICLE 7

 

TRUSTEE

 

	
Section 7.01  

	
Duties of Trustee.

 

(1)           If an Event of Default with respect to the Notes of any series has occurred and is continuing, the Trustee shall, with respect to such series, exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 

(2)           Except during the continuance of an Event of Default with respect to any series of Notes:

 

(a)           the duties of the Trustee, with respect to the Notes of any series, shall be determined solely by the express provisions of this Indenture and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and

 

(b)           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 certificates or opinions required to be furnished to the Trustee hereunder and conforming to the requirements of this Indenture.  However, in the case of certificates or opinions specifically required by any provision hereof to be furnished to it, the Trustee shall examine such certificates and opinions to determine whether or not they conform to the requirements of this Indenture (but need not confirm or investigate the accuracy of any mathematical calculations or other facts stated therein).

 

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

 

(a)           this paragraph (3) does not limit the effect of paragraph (2) of this Section 7.01;

 

 

  

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(b)           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 grossly negligent in ascertaining the pertinent facts; and

 

(c)           the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05.

 

(4)           Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (1), (2), and (3) of this Section 7.01.

 

(5)           No provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability.  The Trustee shall be under no obligation to exercise any of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and indemnity satisfactory to it against any loss, liability, claim, damage or expense.

 

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

 

(7)           The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or documents.

 

	
Section 7.02  

	
Rights of Trustee.

 

(1)           The Trustee may conclusively rely and shall be protected in acting or refraining from acting upon any document (whether in its original or facsimile form) 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.

 

(2)           Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel or both.  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.  The Trustee may consult with counsel of its own selection and the written advice or opinion of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

 

(3)           The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

 

(4)           The Trustee shall not be liable for any action it takes or omits to take in good faith that it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

 

 

  

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(5)           Unless otherwise specifically provided in this Indenture, any demand, request, direction or notice from either of the Issuers shall be sufficient if signed by an Officer of such Issuer.

 

(6)           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 of Holder unless such Holder shall have offered to the Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction.

 

(7)           The Trustee shall not be charged with knowledge of any Default or Event of Default unless either (a) a Responsible Officer of the Trustee shall have actual knowledge of such Default or Event of Default or (b) written notice of such Default or Event of Default shall have been given to and received at the Corporate Trust Office of the Trustee by the Issuers or any Holder and such notice references the Notes and this Indenture.

 

(8)           The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Issuers, personally or by agent or attorney at the sole cost of the Issuers and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation.

 

(9)           In no event shall the Trustee be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action.

 

(10)         The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other Person employed to act hereunder.

 

(11)         The Trustee may request that the Issuers deliver certificates setting forth the names of individuals and/or titles of officers authorized at such time to take specified actions pursuant to this Indenture.

 

	
Section 7.03  

	
Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuers or any Affiliate of the Issuers with the same rights it would have if it were not Trustee.  However, in the event that the Trustee acquires any conflicting interest, it must eliminate such conflict within 90 days and apply to the SEC for permission to continue as trustee or resign.  Any Agent may do the same with like rights and duties.  The Trustee is also subject to Sections 7.10 and 7.11.

 

 

  

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Section 7.04  

	
Trustee’s Disclaimer.

 

The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuers’ use of the proceeds from the Notes or any money paid to the Issuers or upon the Issuers’ direction under any provision of this Indenture, it shall not be responsible for the use or application of any money received by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement in the Notes or any other document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.

 

	
Section 7.05  

	
Notice of Defaults.

 

If a Default or Event of Default occurs and is continuing and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to Holders a notice of the Default or Event of Default within 90 days after the Trustee acquires knowledge thereof.  Except in the case of a Default or Event of Default in payment of principal of, premium, if any, or interest on any Note, the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders.

 

	
Section 7.06  

	
Reports by Trustee to Holders.

 

By March 15th of each year, and for so long as any Notes remain outstanding, the Trustee shall mail to Holders a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted).  The Trustee also shall comply with TIA § 313(b)(2).  The Trustee shall also transmit by mail all reports as required by TIA § 313(c).

 

A copy of each report at the time of its mailing to Holders shall be mailed to the Company and filed with the SEC and each stock exchange on which the Notes are listed in accordance with TIA § 313(d).  The Issuers shall promptly notify the Trustee when the Notes are listed or delisted on any stock exchange.

 

	
Section 7.07  

	
Compensation and Indemnity.

 

The Issuers shall pay to the Trustee from time to time compensation as agreed upon in writing for its acceptance of this Indenture and services hereunder.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Issuers shall reimburse the Trustee promptly upon request for all disbursements, advances and expenses incurred or made by it in addition to the compensation for its services.  Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

 

The Issuers and the Parent Guarantor shall, jointly and severally, indemnify the Trustee and any predecessor trustee against any and all losses, liabilities, claims, damages or expenses (including reasonable legal fees and expenses) including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Issuers (including this Section 7.07) 

 

 

  

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and defending itself against any claim (whether asserted by the Issuers or any Holder or any other person) or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent any such loss, damage, claim, liability or expense determined to have been caused by its own gross negligence or willful misconduct.  The Trustee shall notify the Issuers promptly of any claim for which it may seek indemnity of which a Responsible Officer has received written notice.  Failure by the Trustee to so notify the Issuers shall not relieve the Issuers of their obligations hereunder.  The Issuers shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the Issuers shall pay the reasonable fees and expenses of such counsel.  The Issuers need not pay for any settlement made without their consent, which consent shall not be unreasonably withheld.

 

The obligations of the Issuers in this Section 7.07 shall survive resignation or removal of the Trustee and the satisfaction, discharge or termination of this Indenture.

 

To secure the Issuers’ payment obligations in this Section 7.07, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except  such money or property held in trust by the Trustee to pay the principal of and interest on any Notes.  Such Lien shall survive the resignation or removal of the Trustee and the satisfaction and discharge of this Indenture.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(6) or (7) occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law.

 

The Trustee shall comply with the provisions of TIA § 313(b)(2) to the extent applicable.

 

	
Section 7.08  

	
Replacement of the 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 7.08.

 

The Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Issuers.  The Holders of a majority in principal amount of the then outstanding Notes may remove the Trustee by so notifying the Trustee and the Issuers in writing.  The Issuers may remove the Trustee if:

 

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

 

(b) the Trustee is adjudged as bankrupt or as 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.

 

 

  

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If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Issuers shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Issuers.

 

If a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuers or the Holders of at least 10% in principal amount of the then outstanding Notes may petition at the expense of the Issuers any court of competent jurisdiction for the appointment of a successor Trustee.

 

If the Trustee, after written request by any Holder who has been a Holder for at least six months, fails to comply with Section 7.10, such Holder 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 Issuers.  Thereupon, 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 under this Indenture.  The successor Trustee shall mail a notice of its succession to Holders.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07.  Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Issuers’ obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.

 

	
Section 7.09  

	
Successor Trustee by Merger, etc.

 

If the Trustee consolidates, 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.

 

	
Section 7.10  

	
Eligibility; Disqualification.

 

There shall at all times be a Trustee hereunder that is a corporation organized and doing business under the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or state authorities and that has a combined capital and surplus of at least $100.0 million as set forth in its most recent published annual report of condition.

 

This Indenture shall always have a Trustee who satisfies the requirements of TIA §§ 310(a)(1), (2) and (5).  The Trustee is subject to TIA § 310(b).

 

	
Section 7.11  

	
Preferential Collection of Claims Against the Issuers.

 

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

 

 

  

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ARTICLE 8

 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

	
Section 8.01  

	
Option to Effect Legal Defeasance or Covenant Defeasance.

 

The Issuers may, at the option of their respective boards of directors or the Board of Directors of CCI evidenced by a resolution set forth in an Officers’ Certificate of each of the Issuers, at any time, elect to have either Section 8.02 or 8.03 applied to all outstanding Notes of any series upon compliance with the conditions set forth below in this Article 8.

 

	
Section 8.02  

	
Legal Defeasance and Discharge.

 

Upon the Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.02, the Issuers shall, subject to the satisfaction of the conditions set forth in Section 8.04, be deemed to have been discharged from their obligations with respect to all outstanding Notes of such series on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Issuers shall be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes of such series, which shall thereafter be deemed to be “outstanding” only for the purposes of Section 8.05 and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all their other obligations under such Notes and this Indenture (and the Trustee, on demand of and at the expense of the Issuers, shall execute proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder:

 

(a) the rights of Holders of outstanding Notes of such series to receive payments in respect of the principal of, premium, if any, and interest on such Notes when such payments are due from the trust referred to below;

 

(b) the Issuers’ obligations with respect to the Notes of such series concerning issuing temporary Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust;

 

(c) the rights, powers, trusts, duties and immunities of the Trustee and the Issuers’ obligations in connection therewith; and

 

(d) the Legal Defeasance provisions of this Indenture;

 

Subject to compliance with this Article 8, the Issuers may exercise their option under this Section 8.02 notwithstanding the prior exercise of their option under Section 8.03.

 

	
Section 8.03  

	
Covenant Defeasance.

 

Upon the Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.03, the Issuers shall, subject to the satisfaction of the conditions set forth in Section 8.04, be released from their obligations under the covenants contained in Article 5 with respect to the outstanding Notes of such series on and after the date the conditions set forth in Section 

 

 

  

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8.04 are satisfied (hereinafter, “Covenant Defeasance”), and the Notes of such series shall thereafter be deemed not “outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed “outstanding” for all other purposes hereunder (it being understood that such Notes shall not be deemed outstanding for accounting purposes).  For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes of such series, the Issuers may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 6.01, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby.  In addition, upon the Issuers’ exercise under Section 8.01 of the option applicable to this Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04, Sections 6.01(3) through 6.01(5) shall not constitute Events of Default.

 

	
Section 8.04  

	
Conditions to Legal or Covenant Defeasance.

 

In order to exercise either Legal Defeasance pursuant to Section 8.02 or Covenant Defeasance pursuant to Section 8.03, the following conditions must be met:

 

(1)           the Issuers must irrevocably deposit or cause to be deposited with the Trustee, in trust, for the benefit of the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as are expected to be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and interest on the outstanding Notes on the stated maturity or on the applicable redemption date, as the case may be, and the Issuers must specify whether the Notes are being defeased to maturity or to a particular redemption date;

 

(2)           in the case of Legal Defeasance, the Issuers shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that

 

(a)           the Issuers have received from, or there has been published by, the Internal Revenue Service a ruling or

 

(b)           since the Issue Date, there has been a change in the applicable federal income tax law,

 

in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Legal 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 Legal Defeasance had not occurred;

 

(3)           in the case of Covenant Defeasance, the Issuers shall have delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee confirming that the Holders of the outstanding Notes will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal 

 

 

  

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income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred;

 

(4)           no Default or Event of Default shall have occurred and be continuing (on the date of such deposit (other than resulting from the borrowing of funds to be applied to such deposit and the grant of any Lien securing such borrowing)):

 

(5)           such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under any material agreement or instrument (other than this Indenture) to which the Company or any of its Restricted Subsidiaries is a party or by which the Company or any of its Restricted Subsidiaries is bound;

 

(6)           the Issuers must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuers with the intent of preferring Holders over the other creditors of the Issuers with the intent of defeating, hindering, delaying or defrauding creditors of the Issuers or others; and

 

(7)           the Issuers must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied with.

 

Notwithstanding the foregoing, the Opinion of Counsel required by clause (2) above with respect to a Legal Defeasance need not be delivered if all Notes not theretofore delivered to the Trustee for cancellation,

 

(a) have become due and payable or

 

(b) will become due and payable on the maturity date within one year, by their terms or 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 Issuers.

 

	
Section 8.05  

	
Deposited Money and Government Securities

	
  

	
to Be Held in Trust; Other Miscellaneous Provisions.

 

Subject to Section 8.06, all money and non-callable Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuers acting as Paying Agent) as the Trustee may determine, to Holders of all sums due and to become due thereon in respect of principal, premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Securities deposited pursuant to Section 8.04 or the principal and interest received in respect thereof other than any 

 

 

  

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such tax, fee or other charge which by law is for the account of the Holders of the outstanding Notes.

 

Anything in this Article 8 to the contrary notwithstanding, the Trustee shall deliver or pay to the Issuers from time to time upon the request of the Issuers any money or non-callable Government Securities held by it as provided in Section 8.04 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.04(1)), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

 

	
Section 8.06  

	
Repayment to Issuers.

 

Any money deposited with the Trustee or any Paying Agent, or then held by the Issuers, in trust for the payment of the principal of, premium, if any, or interest on any Note and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable shall be paid to the Issuers on their request or (if then held by the Issuers) shall be discharged from such trust; and the Holder of such Note shall thereafter look only to the Issuers for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuers as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Issuers cause to be published once, in The New York Times and The Wall Street Journal (national edition), notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining shall be repaid to the Issuers.

 

	
Section 8.07  

	
Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any United States dollars or non-callable Government Securities in accordance with Section 8.02 or 8.03, as the case may be, by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Issuers’ obligations under this Indenture and the Notes, shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03, as the case may be; provided, however, that, if the Issuers make any payment of principal of, premium, if any, or interest on any Note following the reinstatement of their obligations, the Issuers shall be subrogated to the rights of Holders to receive such payment from the money held by the Trustee or Paying Agent.

 

 

  

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ARTICLE 9

 

AMENDMENT, SUPPLEMENT AND WAIVER

 

	
Section 9.01  

	
Without Consent of Holders of Notes.

 

Notwithstanding Section 9.02 of this Indenture, the Issuers and the Trustee may amend or supplement this Indenture or the Notes of any series without the consent of any Holder of a Note of such series to:

 

(1)           cure any ambiguity, mistake, defect or inconsistency;

 

(2)           provide for uncertificated Notes in addition to or in place of certificated Notes;

 

(3)           provide for or confirm the issuance of additional Notes;

 

(4)           provide for the assumption of the Issuers’ obligations to Holders in the case of a merger or consolidation or sale of all or substantially all of the assets of the Issuers pursuant to Article 5;

 

(5)           make any change that would provide any additional rights or benefits to Holders of any series or that does not adversely affect the legal rights under this Indenture of any such Holder;

 

(6)           comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA or otherwise as necessary to comply with applicable law;

 

(7)           make any change for the issuance of any series of Notes including with respect to the terms thereof that would provide any additional rights or benefits to Holders of any series or that does not adversely affect the legal rights under this Indenture of any such Holder;

 

(7)           conform this Indenture, as amended and supplemented, or the Notes, as amended or supplemented, to the description and terms of such Notes in the offering memorandum, prospectus supplement or other offering document applicable to such Notes at the time of the initial sale thereof;

 

(8)           change or eliminate any of the provisions of this Indenture; provided that any such change or elimination with respect to any series of Notes shall become effective with respect to such series of Notes only when there is no outstanding Notes of such series effected that is entitled to the benefit of such provision and as to which such supplemental indenture would apply; or

 

(9)           evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to one or more series of Notes and to add to or change any 

 

 

  

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of the provisions of this Indenture as shall be necessary for or to facilitate the administration of the trusts hereunder by more than one Trustee.

 

Upon the request of the Issuers accompanied by a resolution of their respective boards of directors or the Board of Directors of CCI authorizing the execution of any such amended or supplemental indenture, and upon receipt by the Trustee an Officers’ Certificate and an Opinion of Counsel pursuant to Section 9.06, the Trustee shall join with the Issuers in the execution of any amended or supplemental indenture authorized or permitted by the terms of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such amended or supplemental indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

 

	
Section 9.02  

	
With Consent of Holders of Notes.

 

Except as provided below in this Section 9.02, this Indenture or the Notes of any series may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the outstanding Notes of each series affected (including, without limitation, consents obtained in connection with a purchase of, or a tender offer or exchange offer for, Notes) and, subject to Sections 6.04 and 6.07, any existing Default or compliance with any provision of this Indenture or the Notes of any series may be waived, including by way of amendment, with the consent of the Holders of a majority in aggregate principal amount of the outstanding Notes of each series affected (including, without limitation, consents obtained in connection with a purchase of, or a tender offer or exchange offer for, Notes).  Section 2.08 shall determine which Notes are considered to be “outstanding” for purposes of this Section 9.02.

 

Upon the request of the Issuers accompanied by a resolution of their respective boards of directors or the Board of Directors of CCI authorizing the execution of any such amended or supplemental indenture, and upon the filing with the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of such Notes as aforesaid, and upon receipt by the Trustee of an Officers’ Certificate and an Opinion of Counsel pursuant to Section 9.06, the Trustee shall join with the Issuers in the execution of such amended or supplemental indenture unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental indenture.

 

It shall not be necessary for the consent of the Holders of Notes under this Section 9.02 to approve the particular form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof.

 

After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Issuers shall mail to the Holders affected thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuers to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver.  Subject to Sections 6.04 and 6.07, the Holders of a majority in aggregate principal amount of the outstanding Notes of each affected series may waive compliance in a particular instance by the Issuers with any provision of this Indenture or such Notes.  However, without the consent of each Holder affected, an amendment, supplement or 

 

 

  

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waiver under this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

 

(1)           reduce the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver;

 

(2)           reduce the principal of or change the fixed maturity of any Note or alter the payment provisions with respect to the redemption of the Notes;

 

(3)           reduce the rate of or extend the time for payment of interest on any Note;

 

(4)           waive a Default or Event of Default in the payment of principal of, or premium, if any, or interest on the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the Notes and a waiver of the payment default that resulted from such acceleration);

 

(5)           make any Note payable in money other than that stated in the Notes;

 

(6)           make any change in the provisions of this Indenture relating to waivers of past Defaults or the rights of Holders to receive payments of principal of, or premium, if any, or interest on the Notes;

 

(7)           waive a redemption payment with respect to any Note; or

 

(8)           make any change in this Section 9.02.

 

	
Section 9.03  

	
Compliance with Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the Notes shall be set forth in a amended or supplemental indenture that complies with the TIA as then in effect.

 

	
Section 9.04  

	
Revocation and Effect of Consents.

 

Until an amendment, supplement or waiver becomes effective, a consent thereto by a Holder is a continuing consent by the Holder and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note.  However, any such Holder or subsequent Holder may revoke the consent as to its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

 

	
Section 9.05  

	
Notation on or Exchange of Notes.

 

The Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated.  The Issuers in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment, supplement or waiver.

 

 

  

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Failure to make the appropriate notation or issue a new Note shall not affect the validity and effect of such amendment, supplement or waiver.

 

	
Section 9.06  

	
Trustee to Sign Amendments, etc.

 

The Trustee shall sign any amended or supplemental indenture authorized pursuant to this Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities or immunities of the Trustee.  The Issuers may not sign an amendment or supplemental indenture until their respective boards of directors approve it.  In executing any amended or supplemental indenture, the Trustee shall be provided with and (subject to Section 7.01) shall be fully protected in relying upon, in addition to the documents required by Section 11.04, an Officers’ Certificate and an Opinion of Counsel, in each case from each of the Issuers, stating that the execution of such amended or supplemental indenture is authorized or permitted by this Indenture.

 

ARTICLE 10

 

GUARANTEE

 

	
Section 10.01  

	
Guarantee.

 

(a) To the extent applicable, each Guarantor hereby jointly and severally, irrevocably and unconditionally guarantees, as a primary obligor and not merely as a surety, to each Holder and to the Trustee (i) the full and punctual payment when due, whether at Stated Maturity, by acceleration, by redemption or otherwise, of all obligations of the Issuers under this Indenture (including obligations to the Trustee) and the Notes, whether for payment of principal of, premium, if any, or interest on in respect of the Notes and all other monetary obligations of the Issuers under this Indenture and the Notes and (ii) the full and punctual performance within applicable grace periods of all other obligations of the Issuers whether for fees, expenses, indemnification or otherwise under this Indenture and the Notes (all the foregoing being hereinafter collectively called the “Guaranteed Obligations”).  Each Guarantor further agrees that the Guaranteed Obligations may be extended or renewed, in whole or in part, without notice or further assent from any Guarantor, and that each Guarantor shall remain bound under this Article 10 notwithstanding any extension or renewal of any Guaranteed Obligation.

 

(b) To the extent applicable, each Guarantor waives presentation to, demand of payment from and protest to the Issuers of any of the Guaranteed Obligations and also waives notice of protest for nonpayment.  Each Guarantor waives notice of any default under the Notes or the Guaranteed Obligations.  The obligations of each Guarantor hereunder shall not be affected by (i) the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or remedy against the Issuers or any other Person under this Indenture, the Notes or any other agreement or otherwise; (ii) any extension or renewal of this Indenture, the Notes or any other agreement; (iii) any rescission, waiver, amendment or modification of any of the terms or provisions of this Indenture, the Notes or any other agreement; (iv) the failure of any Holder or Trustee to exercise any right or remedy against any other guarantor of the Guaranteed Obligations; or (v) any change in the ownership of each Guarantor, except as provided in Section 10.02(b) or Section 10.02(c). Each Guarantor hereby waives any right to which it may be entitled 

 

 

  

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to have its obligations hereunder divided among the Guarantors, such that such Guarantor’s obligations would be less than the full amount claimed.

 

(c) Each Guarantor hereby waives any right to which it may be entitled to have the assets of the Issuers first be used and depleted as payment of the Issuers’ or such Guarantor’s obligations hereunder prior to any amounts being claimed from or paid by such Guarantor hereunder.  Each Guarantor hereby waives any right to which it may be entitled to require that the Issuer be sued prior to an action being initiated against such Guarantor.

 

(d) Each Guarantor further agrees that its Guarantee herein constitutes a guarantee of payment when due (and not a guarantee of collection) and waives any right to require that any resort be had by any holder or the Trustee to any security held for payment of the Guaranteed Obligations.

 

(e) The Note Guarantee of each Guarantor is, to the extent and in the manner set forth in Article 10, equal in right of payment to all existing and future pari passu Indebtedness, senior in right of payment to all existing and future subordinated Indebtedness of the Issuers and subordinated and subject in right of payment to the prior payment in full of the principal of and premium, if any, and interest on all secured Indebtedness of the relevant Guarantor and is made subject to such provisions of this Indenture.

 

(f) Except as expressly set forth in Sections 8.02, 10.02 and 10.06, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations or otherwise.  Without limiting the generality of the foregoing, the obligations of each Guarantor herein shall not be discharged or impaired or otherwise affected by the failure of any holder or the Trustee to assert any claim or demand or to enforce any remedy under this Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by any default, failure or delay, willful or otherwise, in the performance of the obligations, or by any other act or thing or omission or delay to do any other act or thing which may or might in any manner or to any extent vary the risk of any Guarantor or would otherwise operate as a discharge of any Guarantor as a matter of law or equity.

 

(g) Each Guarantor agrees that its Note Guarantee shall remain in full force and effect until payment in full of all the Guaranteed Obligations.  Each Guarantor further agrees that its Guarantee herein shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of principal of or interest on any Guaranteed Obligation is rescinded or must otherwise be restored by any holder or the Trustee upon the bankruptcy or reorganization of the Issuers or otherwise.

 

(h) In furtherance of the foregoing and not in limitation of any other right which any Holder or the Trustee has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Issuers to pay the principal of or interest on any Guaranteed Obligation when and as the same shall become due, whether at maturity, by acceleration, by redemption or otherwise, or to perform or comply with any other Guaranteed Obligation, each Guarantor 

 

 

  

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hereby promises to and shall, upon receipt of written demand by the Trustee, forthwith pay, or cause to be paid, in cash, to the Holders or the Trustee an amount equal to the sum of (i) the unpaid principal amount of such Guaranteed Obligations, (ii) accrued and unpaid interest on such Guaranteed Obligations (but only to the extent not prohibited by applicable law) and (iii) all other monetary obligations of the Issuers to Holders and the Trustee.

 

(i) Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to Holders in respect of any Guaranteed Obligations guaranteed hereby until payment in full of all Guaranteed Obligations.  Each Guarantor further agrees that, as between it, on the one hand, and Holders and the Trustee, on the other hand, (i) the maturity of the Guaranteed Obligations guaranteed hereby may be accelerated as provided in Article 6 for the purposes of the Guarantee herein, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the Guaranteed Obligations guaranteed hereby, and (ii) in the event of any declaration of acceleration of such Guaranteed Obligations as provided in Article 6, such Guaranteed Obligations (whether or not due and payable) shall forthwith become due and payable by the Parent Guarantor for the purposes of this Section 10.01.

 

(j) Each Guarantor also agrees to pay any and all costs and expenses (including reasonable attorneys’ fees and expenses) incurred by the Trustee or any holder in enforcing any rights under this Section 10.01.

 

(k) Upon request of the Trustee, each Guarantor shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

 

	
Section 10.02  

	
Limitation on Liability.

 

(a) Any term or provision of this Indenture to the contrary notwithstanding, the maximum aggregate amount of the Guaranteed Obligations guaranteed hereunder by each Guarantor shall not exceed the maximum amount that can be hereby guaranteed without rendering this Indenture, as it relates to such Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer or similar laws affecting the rights of creditors generally.

 

(b) A Subsidiary Guarantee by any Subsidiary that executes a supplemental indenture in accordance with Section 10.16 and provides a guarantee shall terminate and be of no further force or effect and such Guarantor shall be deemed to be released from all obligations under this Article 10 upon:

 

(i) the sale, disposition, exchange or other transfer (including through merger, consolidation, amalgamation or otherwise) of the Capital Stock (including any sale, disposition or other transfer following which the applicable Guarantor is no longer a Wholly Owned Restricted Subsidiary), of the applicable Guarantor if such sale, disposition, exchange or other transfer is made in a manner not in violation of this Indenture;

 

(ii) [Reserved];

 

 

  

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(iii) the release or discharge of the guarantee of any other Indebtedness which resulted in the obligation to guarantee the Notes; and

 

(iv) the Issuers’ exercise of their legal defeasance option or covenant defeasance option under Article 8 or if the Issuers’ obligations under this Indenture are discharged in accordance with the terms of this Indenture.

 

A Subsidiary Guarantee also will be automatically released upon the applicable Subsidiary ceasing to be a Subsidiary as a result of any foreclosure of any pledge or security interest securing any Credit Facility or other exercise of remedies in respect thereof.

 

(c) The Parent Guarantee shall terminate and be of no further force or effect and the Parent Guarantor shall be deemed to be released from all obligations under this Article 10 upon:

 

(i) the Issuers ceasing to be wholly owned Subsidiaries of CCI;

 

(ii) the Issuers’ transfer of all or substantially all of their assets to, or merger with, an entity that is not a wholly owned Subsidiary of CCI in accordance with Section 5.01 and such transferee entity assumes the Issuers’ obligations under this Indenture; and

 

(iii) the Issuers’ exercise of their Legal Defeasance option or Covenant Defeasance option under Article 8 or if the Issuers’ obligations under this Indenture are discharged in accordance with the terms of this Indenture.

 

	
Section 10.03  

	
Successors and Assigns.

 

This Article 10 shall be binding upon each Guarantor and its successors and assigns and shall inure to the benefit of the successors and assigns of the Trustee and Holders and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges conferred upon that party in this Indenture and in the Notes shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions of this Indenture.

 

	
Section 10.04  

	
No Waiver.

 

Neither a failure nor a delay on the part of either the Trustee or Holders in exercising any right, power or privilege under this Article 10 shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise of any right, power or privilege.  The rights, remedies and benefits of the Trustee and Holders herein expressly specified are cumulative and not exclusive of any other rights, remedies or benefits which either may have under this Article 10 at law, in equity, by statute or otherwise.

 

	
Section 10.05  

	
Modification.

 

No modification, amendment or waiver of any provision of this Article 10, nor the consent to any departure by any Guarantor therefrom, shall in any event be effective unless the same shall be in writing and signed by the Trustee, and then such waiver or consent shall be 

 

 

  

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effective only in the specific instance and for the purpose for which given.  No notice to or demand on any Guarantor in any case shall entitle any Guarantor to any other or further notice or demand in the same, similar or other circumstances.

 

	
Section 10.06  

	
Execution of Supplemental Indenture for Future Guarantors.

 

Each Subsidiary and other Person which is required to become a Guarantor of any series of Notes pursuant to the terms of this Indenture (as supplemented by the supplemental indenture with respect to such Notes) shall promptly execute and deliver to the Trustee a supplemental indenture in the form of Exhibit E hereto pursuant to which such Subsidiary or other Person shall become a Guarantor under this Article 10 and shall guarantee the Notes.  Concurrently with the execution and delivery of such supplemental indenture, the Issuers shall deliver to the Trustee an Opinion of Counsel and an Officers’ Certificate to the effect that such supplemental indenture has been duly authorized, executed and delivered by such Subsidiary or other Person and that, subject to the application of bankruptcy, insolvency, moratorium, fraudulent conveyance or transfer and other similar laws relating to creditors’ rights generally and to the principles of equity, whether considered in a proceeding at law or in equity, the Guarantee of such Guarantor is a valid and binding obligation of such guarantor, enforceable against such Guarantor in accordance with its terms and/or to such other matters as the Trustee may reasonably request.

 

	
Section 10.07  

	
Non-Impairment.

 

The failure to endorse a Guarantee on any Note shall not affect or impair the validity thereof.

ARTICLE 11

 

MISCELLANEOUS

 

	
Section 11.01  

	
Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by TIA § 318(c), the imposed duties shall control.

 

	
Section 11.02  

	
Notices.

 

Any notices or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if made by hand delivery, first class mail (registered or certified, return receipt requested), facsimile transmission or overnight air courier guaranteeing next day delivery, and addressed as follows:

 

If to the Issuers:

 

 

  

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CCO Holdings, LLC

CCO Holdings Capital Corp.

c/o Charter Communications, Inc.

12405 Powerscourt Drive, Suite 100

St. Louis, Missouri 63131

Facsimile No.: (314) 965-6640

Attention:  Corporate Secretary

 

With a copy to:

 

Kirkland & Ellis LLP

601 Lexington Avenue

New York, New York 10022

Facsimile No.: (212) 446-4900

Attention: Christian O. Nagler, Esq.

 

If to the Trustee:

 

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Facsimile No.: (312) 827-8542

Attention:  Corporate Trust Administration

The Issuers or the Trustee, by notice to each other Person may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications (other than those sent to Holders) shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; five Business Days after being deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder shall be mailed by first class mail, certified or registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Registrar.  Any notice or communication shall also be so mailed to any Person described in TIA § 313(c), to the extent required by the TIA.  Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders.

 

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

 

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

 

The Trustee agrees to accept and act upon instructions or directions pursuant to this Indenture sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured 

 

 

  

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electronic methods, provided, however, that the Trustee shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing.  If the Issuer elects to give the Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Trustee in its discretion elects to act upon such instructions, the Trustee’s understanding of such instructions shall be deemed controlling. The Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The Issuer agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Trustee, including without limitation the risk of the Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties.

 

	
Section 11.03  

	
Communication by Holders with Other Holders.

 

Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Notes.  The Issuers, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

	
Section 11.04  

	
Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Issuers to the Trustee to take any action under this Indenture, the Issuers shall furnish to the Trustee:

 

(i) an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.05) stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied; and

 

(ii) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.05) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied.

 

	
Section 11.05  

	
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 § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include:

 

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

 

(ii) 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;

 

 

  

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(iii) a statement that, in the opinion of such Person, he or she 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 satisfied; and

 

(iv) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied.

 

	
Section 11.06  

	
Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or at a meeting of Holders.  The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

 

	
Section 11.07  

	
No Personal Liability of Directors, Officers,

	
  

	
Employees, Members and Stockholders.

 

No director, officer, employee, incorporator, member or stockholder of the Issuers or CCI, as such, shall have any liability for any obligations of the Issuers or CCI under the Notes or this Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation.  Each Holder by accepting a Note waives and releases all such liability.  The waiver and release are part of the consideration for issuance of the Notes.

 

	
Section 11.08  

	
Governing Law.

 

THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE AND THE NOTES AND ANY GUARANTEE WITHOUT GIVING EFFECT TO THE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.  EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR ANY GUARANTEE.

 

	
Section 11.09  

	
No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret any other indenture, loan or debt agreement of the Issuers or their Subsidiaries or of any other Person.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

	
Section 11.10  

	
Successors.

 

All agreements of the Issuers in this Indenture and the Notes, as the case may be, shall bind their respective successors.  All agreements of the Trustee in this Indenture shall bind its successors.

 

 

  

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Section 11.11  

	
Severability.

 

In case any provision in this Indenture or the Notes, as the case may be, 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 11.12  

	
Counterpart Originals.

 

The parties may sign any number of copies of this Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

	
Section 11.13  

	
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 of this Indenture and shall in no way modify or restrict any of the terms or provisions.

 

	
Section 11.14  

	
Waiver of Jury Trial.

 

EACH OF THE ISSUERS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

 

	
Section 11.15  

	
Force Majeure.

 

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

ARTICLE 12

 

SATISFACTION AND DISCHARGE

 

	
Section 12.01  

	
Satisfaction and Discharge of Indenture.

 

This Indenture, with respect to any series of Notes (if all series of Notes issued under this Indenture are not to be affected), shall cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Notes herein expressly provided for), and the Trustee, on demand of and at the expense of the Issuers, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

 

  

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(1)           either

 

(a) all Notes of such series theretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07 and (ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuers and thereafter repaid to the Issuers or discharged from such trust) have been delivered to the Trustee for cancellation; or

 

(b) all Notes of such series not theretofore delivered to the Trustee for cancellation

 

(i) have become due and payable, or

 

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

 

(iii) 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 Issuers,

 

and the Issuers, in the case of (i), (ii) or (iii) above, have deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount sufficient to pay and discharge the entire indebtedness on such Notes not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest to the date of such deposit (in the case of Notes which have become due and payable) or to the maturity or redemption thereof, as the case may be;

 

(2)           the Issuers have paid or caused to be paid all other sums payable hereunder by the Issuers; and

 

(3)           each of the Issuers has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each 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 with respect to any such series of Notes pursuant to this Article 12, the obligations of the Issuers to the Trustee under Section 7.07, and, if money shall have been deposited with the Trustee pursuant to subclause (b) of clause (1) of this Section 12.01, the obligations of the Trustee under Section 12.02 shall survive such satisfaction and discharge.

 

	
Section 12.02  

	
Application of Trust Money.

 

All money deposited with the Trustee pursuant to Section 12.01 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment such money has been deposited with the Trustee.

 

                                                            [Signatures on following page]

 

 

  

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Dated as of May 10, 2011

 

 

CCO HOLDINGS, LLC, as an Issuer

 

	
  

	
By:

	
/s/ Christopher L. Winfrey

	
  

	
Name:  Christopher L. Winfrey

	
  

	
Title:  Executive Vice President and

	
  

	
          Chief Financial Officer

 

 

CCO HOLDINGS CAPITAL CORP., as an Issuer

 

	
  

	
By:

	
/s/ Christopher L. Winfrey

	
  

	
Name:  Christopher L. Winfrey

	
  

	
Title:  Executive Vice President and

	
  

	
          Chief Financial Officer

 

 

	
  

	
CHARTER COMMUNICATIONS, INC., as Guarantor, with respect to Article 10 and Section 7.07 only

 

 

	
  

	
By:

	
/s/ Christopher L. Winfrey

	
  

	
Name:  Christopher L. Winfrey

	
  

	
Title:  Executive Vice President and

	
  

	
          Chief Financial Officer

 

 

  

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THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

 

 

	
  

	
By:

	
/s/ M. Callahan

	
  

	
Name: M. Callahan

	
  

	
Title: Vice President

 

 

  

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EXHIBIT A

 

[THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.  UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.  UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE ISSUERS OR THEIR AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 1

 

[THE NOTE (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), 

 

 

 

	
1

	
Include Global Note Legend, if applicable.

 

 

  

A-1-3

  

 

AND THE NOTE EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE NOTES EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF THE NOTES EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) (A) TO A PERSON WHO IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (B) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES TO A NON-U.S. PERSON IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT, OR (D) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE ISSUERS SO REQUEST), (II) TO THE ISSUERS, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE NOTES EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN CLAUSE (A) ABOVE. NO REPRESENTATION CAN BE MADE AS TO THE AVAILABILITY OF THE EXEMPTION PROVIDED BY RULE 144 FOR RESALE OF THE NOTE EVIDENCED HEREBY.]2

 

[THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY U.S. PERSON EXCEPT PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE HAVE 

 

 

 

 

	
2

	
Include Private Placement Legend, if applicable.

 

 

  

A-1-4

  

 

 

THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.]3

 

 

 

	
3

	
Include Regulation S Legend, if applicable.

 

 

 

  

A-1-5

  

 

 

[Face of Note]

CUSIP NO. [_________]

 

 

[●]% Senior Notes due [●]

 

No [   ].

 

$[                      ]

 

CCO HOLDINGS, LLC

 

and

 

CCO HOLDINGS CAPITAL CORP.

 

promise to pay to CEDE & CO. or to registered assigns the principal amount of $[] Dollars on [                            ].

 

Interest Payment Dates:  [                          ] and [                          ]

 

Record Dates:  [                         ] and [                            ]

 

Subject to Restrictions set forth in this Note.

 

 

  

A-1-1

  

 

IN WITNESS WHEREOF, each of CCO Holdings, LLC and CCO Holdings Capital Corp. has caused this instrument to be duly executed.

 

Dated:  [                                ]  

 

 

CCO HOLDINGS, LLC

 

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

 

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

 

CCO HOLDINGS CAPITAL CORP.

 

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

 

	
  

	
By:

	 	 

	
  

	
Name:

	
  

	
Title:

 

 

 

This is one of the Notes referred to

in the within-mentioned Indenture:

THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A.,

as Trustee

By: __________________________________

Authorized Signatory

 

  

A-1-2

  

 

 

EXHIBIT B

 

FORM OF CERTIFICATE OF TRANSFER

 

CCO Holdings, LLC

CCO Holdings Capital Corp.

c/o Charter Communications, Inc.

12405 Powerscourt Drive, Suite 100

St. Louis, Missouri  63131

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Facsimile No.: (312) 827-8542

Attention:  Corporate Trust Administration

Re:  CCO Holdings, LLC and CCO Holdings Capital Corp.

 

	
  

	 o	
    [          ]% Senior Notes due [          ] (CUSIP [              ]) (the “Notes”)

Reference is hereby made to the Indenture, dated as of May 10, 2011 (as amended, supplemented or otherwise modified, the “Indenture”), among CCO Holdings, LLC (the “Company”), CCO Holdings Capital Corp. (“Capital Corp” and, together with the Company, the “Issuers”), the guarantor party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

___________________ (the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount of $_____________________________ in such Note[s] or interests (the “Transfer”), to ___________________________ (the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

o           1.           Check if Transferee will take delivery of a beneficial interest in the Rule 144A Global Note or a Definitive Note Pursuant to Rule 144A.  The Transfer is being effected pursuant to and in accordance with Rule 144A under the United States Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A and such Transfer is in compliance with any applicable blue sky 

 

 

  

B-1

  

 

securities laws of any state of the United States.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Rule 144A Global Note and/or the Definitive Note and in the Indenture and the Securities Act.

 

o           2.           Check if Transferee will take delivery of a beneficial interest in the Regulation S Global Note or a Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act and (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act.  Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Note and/or the Definitive Note and in the Indenture and the Securities Act.  If the Transfer of the beneficial interest occurs prior to the expiration of the 40-day distribution compliance period set forth in Regulation S, the transferred beneficial interest will be held immediately thereafter through Euroclear or Clearstream.

 

o   3.           Check and complete if Transferee will take delivery of a beneficial interest in a Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S.  The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one):

 

          o    (i)           such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act; or

 

          o    (ii)          such Transfer is being effected to the Company or a subsidiary thereof; or

 

          o    (iii)         such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the

                 prospectus delivery requirements of the Securities Act; or

 

 

  

B-2

  

 

      o    (iv)           such Transfer is being effected to an Institutional Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby further certifies that it has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of the exemption claimed, which certification is supported by (1) a certificate executed by the Transferee in the form of Exhibit D to the Indenture and (2) an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this certification), to the effect that such Transfer is in compliance with the Securities Act.  Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Note and/or the Definitive Notes and in the Indenture and the Securities Act.

 

  o  4.           Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.

 

      o    (i)           Check if Transfer is pursuant to Rule 144.  (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

 

      o    (ii)          Check if Transfer is Pursuant to Regulation S.  (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

 

      o    (iii)         Check if Transfer is Pursuant to Other Exemption.  (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any 

 

 

  

B-3

  

 

applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuers.

 

____________________________________________

 

[Insert Name of Transferor]

 

By__________________________________________

Name:

Title:

Dated:  ______________________________________

 

 

  

B-4

  

 

 

 

ANNEX A TO CERTIFICATE OF TRANSFER

 

1.           The Transferor owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

o  (a)   a beneficial interest in the:

 

o  (i)    Rule 144A Global Note (CUSIP __________), or

 

o  (ii)   Regulation S Global Note (CUSIP _________), or

 

o  (b)   a Restricted Definitive Note.

 

2.           After the Transfer the Transferee will hold:

 

[CHECK ONE]

 

o  (a)   a beneficial interest in the:

 

o  (i)    Rule 144A Global Note (CUSIP __________), or

 

o  (ii)   Regulation S Global Note (CUSIP _________), or

 

o  (iii)         Unrestricted Global Note (CUSIP _________); or

 

o  (b)   a Restricted Definitive Note; or

 

o  (c)   an Unrestricted Definitive Note,

 

in accordance with the terms of the Indenture.

 

 

  

B-5

  

 

EXHIBIT C

 

FORM OF CERTIFICATE OF EXCHANGE

 

CCO Holdings, LLC

CCO Holdings Capital Corp.

c/o Charter Communications, Inc.

12405 Powerscourt Drive, Suite 100

St. Louis, Missouri  63131

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Facsimile No.: (312) 827-8542

Attention:  Corporate Trust Administration

Re:  CCO Holdings, LLC and CCO Holdings Capital Corp.

 

	
  

	 o	
    [      ]% Senior Notes due [          ] (CUSIP [              ])  (the “Notes”)

Reference is hereby made to the Indenture, dated as of May 10, 2011 (as amended, supplemented or otherwise modified, the “Indenture”), among CCO Holdings, LLC (the “Company”), CCO Holdings Capital Corp. (“Capital Corp” and, together with the Company, the “Issuers”), the guarantor party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

__________________________ (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount of $____________________________ in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner hereby certifies that:

 

1.           Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

 

   o (i)           Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the United States Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private 

 

 

  

C-1

  

 

Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.  If the Exchange is from beneficial interest in a Regulation S Global Note to beneficial interest in an Unrestricted Global Note, the Owner further certifies that it is either (x) a non-U.S. Person to whom Notes would be transferred in accordance with Regulation S or (y) a U.S. Person who purchased Notes in a transaction that did not require registration under the Securities Act.

 

   o (ii)           Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

 

   o (iii)          Check if Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.  If the Exchange is from beneficial interest in a Regulation S Global Note to an Unrestricted Definitive Note, the Owner further certifies that it is either (x) a non-U.S. Person to whom Notes could be transferred in accordance with Regulation S or (y) a U.S. Person who purchased Notes in a transaction that did not require registration under the Securities Act.

 

   o (iv)          Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being 

 

 

  

C-2

  

 

acquired in compliance with any applicable blue sky securities laws of any state of the United States.

 

2.           Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

 

   o (i)            Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without transfer.  If the Exchange is from beneficial interest in a Regulation S Global Note to a Restricted Definitive Note, the Owner further certifies that it is either (x) a non-U.S. Person to whom Notes could be transferred in accordance with Regulation S or (y) a U.S. Person who purchased Notes in a transaction that did not require registration under the Securities Act.  Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act.

 

   o (ii)           Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE] Rule 144A Global Note or  Regulation S Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

 

 

  

C-3

  

 

This certificate and the statements contained herein are made for your benefit and the benefit of the Issuers.

 

____________________________________________

 

[Insert Name of Transferor]

 

By__________________________________________

Name:

Title:

Dated:  ______________________________________

 

  

C-4

  

 

EXHIBIT D

 

FORM OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

CCO Holdings, LLC

CCO Holdings Capital Corp.

c/o Charter Communications, Inc.

12405 Powerscourt Drive, Suite 100

St. Louis, Missouri  63131

The Bank of New York Mellon Trust Company, N.A.

2 North LaSalle Street, Suite 1020

Chicago, Illinois 60602

Facsimile No.: (312) 827-8542

Attention:  Corporate Trust Administration

Re:  CCO Holdings, LLC and CCO Holdings Capital Corp.

 

	
  

	 o	
    [          ]% Senior Notes due [          ] (CUSIP [              ]) (the “Notes”)

Reference is hereby made to the Indenture, dated as of May 10, 2011 (as amended, supplemented or otherwise modified, the “Indenture”), among CCO Holdings, LLC (the “Company”), CCO Holdings Capital Corp. (“Capital Corp” and, together with the Company, the “Issuers”), the guarantor party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

In connection with our proposed purchase of $____________ aggregate principal amount of:

 

(i)          o    a beneficial interest in a Global Note, or

 

(ii)         o    a Definitive Note,

 

we confirm that:

 

1.           We understand that any subsequent transfer of the Notes or any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the undersigned agrees to be bound by, and not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with, such restrictions and conditions and the United States Securities Act of 1933, as amended (the “Securities Act”).

 

2.           We understand that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered or sold except as permitted in the following sentence.  We agree, on our own behalf 

 

 

  

C-5

  

 

 

and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the Notes or any interest therein, we will do so only (a) to the Company or any subsidiary thereof, (b) in accordance with Rule 144A under the Securities Act to a “qualified institutional buyer” (as defined therein), (c) to an institutional “accredited investor” (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to you and to the Company a signed letter substantially in the form of this letter and an Opinion of Counsel in form reasonably acceptable to the Company to the effect that such transfer is in compliance with the Securities Act, (d) outside the United States in accordance with Rule 904 of Regulation S under the Securities Act, (e) pursuant to the provisions of Rule 144(d) under the Securities Act or (f) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing the Definitive Note or beneficial interest in a Global Note from us in a transaction meeting the requirements of clauses (a) through (e) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein.

 

3.           We understand that, on any proposed resale of the Notes or beneficial interest therein, we will be required to furnish to you and the Issuers such certifications, legal opinions and other information as you and the Issuers may reasonably require to confirm that the proposed sale complies with the foregoing restrictions.  We further understand that the Notes purchased by us will bear a legend to the foregoing effect.

 

4.           We are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the economic risk of our or its investment.

 

5.           We are acquiring the Notes or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an institutional “accredited investor”) as to each of which we exercise sole investment discretion.

 

You and the Issuers are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby.

 

____________________________________________

 

[Insert Name of Transferor]

 

 

By__________________________________________

Name:

Title:

Dated:  ______________________________________

 

 

  

D-1

  

 

 

EXHIBIT E

[FORM OF SUPPLEMENTAL INDENTURE]

 

 

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”) dated as of [               ], among [GUARANTOR] (the “New Guarantor”), a subsidiary of CCO Holdings, LLC (or its successor), a Delaware limited liability company and CCO Holdings Capital Corp. (or its successor), a Delaware corporation (together, the “Issuers”), and THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., a national banking association, as trustee under the indenture referred to below (the “Trustee”).

 

W I T N E S S E T H :

 

WHEREAS the Issuers and CHARTER COMMUNICATIONS, INC., a Delaware corporation (the “Parent Guarantor”) have heretofore executed and delivered to the Trustee an indenture (as amended, supplemented or otherwise modified, the “Indenture”) dated as of May 10, 2011, providing for the issuance of the Issuers’ [            ]% Senior Notes due [            ] initially in the aggregate principal amount of $[                        ] (the “Notes”);

 

WHEREAS Section [●] of the Indenture provides that under certain circumstances the Company is required to cause the New Guarantor to execute and deliver to the Trustee a supplemental indenture pursuant to which the New Guarantor shall unconditionally guarantee all the Issuers’ Obligations under the Notes and the Indenture pursuant to a Note Guarantee on the terms and conditions set forth herein; and

 

WHEREAS pursuant to Section 9.01 of the Indenture, the Trustee, the Issuers, the Parent Guarantor and other existing Guarantors, if any, are authorized to execute and deliver this Supplemental Indenture;

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the New Guarantor, the Parent Guarantor, the Issuers and the Trustee mutually covenant and agree for the equal and ratable benefit of Holders as follows:

 

1.           Defined Terms.  As used in this Supplemental Indenture, terms defined in the Indenture or in the preamble or recital hereto are used herein as therein defined, except that the term “holders” in this Supplemental Indenture shall refer to the term “holders” as defined in the Indenture and the Trustee acting on behalf of and for the benefit of such holders.  The words “herein,” “hereof” and “hereby” and other words of similar import used in this Supplemental Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

 

2.           Agreement to Guarantee.  The New Guarantor hereby agrees, jointly and severally with all existing guarantors (if any), to unconditionally guarantee the Issuers’ Obligations under the Notes and the Indenture on the terms and subject to the conditions set 

 

 

  

E-1

  

 

 

forth in Article 10 of the Indenture and to be bound by all other applicable provisions of the Indenture and the Notes and to perform all of the obligations and agreements of a Guarantor under the Indenture.

 

3.           Notices.  All notices or other communications to the New Guarantor shall be given as provided in Section 11.02 of the Indenture.

 

4.           Ratification of Indenture; Supplemental Indentures Part of Indenture.  Except as expressly amended hereby, the Indenture is in all respects ratified and confirmed and all the terms, conditions and provisions thereof shall remain in full force and effect.  This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder heretofore or hereafter authenticated and delivered shall be bound hereby.

 

5.           Governing Law.  THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

6.           Trustee Makes No Representation.  The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture.

 

7.           Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.

 

8.           Effect of Headings.  The Section headings herein are for convenience only and shall not effect the construction thereof.

 

 

  

E-2

  

 

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

 

 

[NEW GUARANTOR]

 

 

 

	 	By:	_______________________________
	 	 	Name:
	 	 	Title:

 

 

	
  

	
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee

 

	 	By:	_______________________________
	 	 	Name:
	 	 	Title:

 

 

  E-3

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