Document:

Exhibit 4.6

 

 

 

 

 

DYCOM INVESTMENTS, INC.,

Issuer,

 

 

 

DYCOM INDUSTRIES, INC.,

Parent Guarantor,

 

 

THE OTHER GUARANTORS FROM TIME TO TIME PARTY HERETO,

 

 

And

 

_______________________,

Trustee

 

____________

 

FORM OF INDENTURE

 

____________

 

Dated as of ________, 20__

 

Debt Securities

 

 

 

 

 

 

 

  

  

  

RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939 (THE “TRUST INDENTURE ACT”) AND INDENTURE

 

	

Trust Indenture Act Section

	 	

Indenture Section

	
ss. 310

	
(a)(1)

	 	
6.7

	  	
(a)(2)

	 	
6.7

	  	
(b)

	 	
6.8

	
ss. 311

	  	 	
6.4

	
ss. 312

	
(a)

	 	
7.1

	  	
(b)

	 	
7.2

	  	
(c)

	 	
7.2

	
ss. 313

	
(a)

	 	
7.3

	  	
(b)

	 	
7.3

	  	
(c)

	 	
7.3

	  	
(d)

	 	
7.3

	
ss. 314

	
(a)

	 	
10.4

	  	
(c)(1)

	 	
1.2

	  	
(c)(2)

	 	
1.2

	  	
(e)

	 	
1.1, 1.2

	  	
(f)

	 	
1.2

	
ss. 315

	
(a)-(d)

	 	
6.1

	  	
(b)

	 	
6.2

	  	
(c)

	 	
6.1

	  	
(d)

	 	
6.1

	  	
(e)

	 	
5.11

	
ss. 316

	
(a) (last sentence)

	 	
1.1

	  	
(a)(1)(A)

	 	
5.9

	  	
(a)(1)(B)

	 	
5.10

	  	
(b)

	 	
5.8

	
ss. 317

	
(a)(1)

	 	
5.3

	  	
(a)(2)

	 	
5.4

	  	
(b)

	 	
10.3

	
ss. 318

	
(a)

	 	
1.8

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

 

  

  

  

Table of Contents

 

Page

 

ARTICLE 1

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

	
Section 1.1

	
Definitions

	
1

	
Section 1.2

	
Compliance Certificates and Opinions

	
12

	
Section 1.3

	
Form of Documents Delivered to Trustee

	
13

	
Section 1.4

	
Acts of Holders

	
13

	
Section 1.5

	
Notices, etc. to Trustee and Company

	
15

	
Section 1.6

	
Notice to Holders of Securities; Waiver

	
15

	
Section 1.7

	
Language of Notices

	
17

	
Section 1.8

	
Conflict with Trust Indenture Act

	
17

	
Section 1.9

	
Effect of Headings and Table of Contents

	
17

	
Section 1.10

	
Successors and Assigns

	
17

	
Section 1.11

	
Separability Clause

	
17

	
Section 1.12

	
Benefits of Indenture

	
17

	
Section 1.13

	
Governing Law

	
18

	
Section 1.14

	
Legal Holidays

	
18

	
Section 1.15

	
Counterparts

	
18

	
Section 1.16

	
Judgment Currency

	
18

	
Section 1.17

	
No Security Interest Created

	
19

	
Section 1.18    

	
Limitation on Individual Liability

	
19

	 	 	 
	
ARTICLE 2

	 	 	 
	
SECURITIES FORMS

	 	 	 
	
Section 2.1

	
Forms Generally

	
19

	
Section 2.2

	
Form of Trustee’s Certificate of Authentication

	
20

	
Section 2.3

	
Securities in Global Form

	
20

	 	 	 
	
ARTICLE 3

	 	 	 
	
THE SECURITIES

	 	 	 
	
Section 3.1

	
Amount Unlimited; Issuable in Series

	
21

	
Section 3.2

	
Currency; Denominations

	
25

	
Section 3.3

	
Execution, Authentication, Delivery and Dating

	
25

	
Section 3.4

	
Temporary Securities

	
27

	
Section 3.5

	
Registration, Transfer and Exchange

	
27

	
Section 3.6

	
Mutilated, Destroyed, Lost and Stolen Securities

	
31

	
Section 3.7

	
Payment of Interest; Rights to Interest Preserved

	
32

	
Section 3.8

	
Persons Deemed Owners

	
34

 

  

i

  

 

	
Section 3.9

	
Cancellation

	
34

	
Section 3.10

	
Computation of Interest

	
35

	 	 	 
	
ARTICLE 4

	 	 	 
	
SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE AND COVENANT DEFEASANCE

	 	 	 
	
Section 4.1

	
Satisfaction and Discharge

	
35

	
Section 4.2

	
Defeasance and Covenant Defeasance

	
36

	
Section 4.3

	
Application of Trust Money

	
40

	
Section 4.4

	
Reinstatement

	
40

	 	 	 
	
ARTICLE 5

	 	 	 
	
REMEDIES

	 	 	 
	
Section 5.1

	
Events of Default

	
41

	
Section 5.2

	
Acceleration

	
42

	
Section 5.3

	
Other Remedies.

	
42

	
Section 5.4

	
Trustee May File Proofs of Claim

	
43

	
Section 5.5

	
Collection Suit by Trustee

	
43

	
Section 5.6

	
Priorities

	
44

	
Section 5.7

	
Limitations on Suits

	
44

	
Section 5.8

	
Rights of Holders of Securities to Receive Payment

	
45

	
Section 5.9

	
Control by Majority

	
45

	
Section 5.10

	
Waiver of Past Defaults

	
45

	
Section 5.11

	
Undertaking for Costs

	
45

	 	 	 
	
ARTICLE 6

	 	 	 
	
THE TRUSTEE

	 	 	 
	
Section 6.1

	
Certain Rights of Trustee

	
46

	
Section 6.2

	
Notice of Defaults

	
47

	
Section 6.3

	
Not Responsible for Recitals or Issuance of Securities

	
47

	
Section 6.4

	
May Hold Securities

	
48

	
Section 6.5

	
Money Held in Trust

	
48

	
Section 6.6

	
Compensation and Reimbursement

	
48

	
Section 6.7

	
Corporate Trustee Required; Eligibility

	
49

	
Section 6.8

	
Resignation and Removal; Appointment of Successor

	
49

	
Section 6.9

	
Acceptance of Appointment by Successor

	
51

	
Section 6.10

	
Merger, Conversion, Consolidation or Succession to Business

	
52

	
Section 6.11

	
Appointment of Authenticating Agent

	
52

	
Section 6.12

	
Appointment of Attorney-in-Fact

	
54

 

  

ii

  

 

	
ARTICLE 7

	 	 	 
	
HOLDERS LISTS AND REPORTS BY TRUSTEE

	 	 	 
	
Section 7.1

	
Holder Lists

	
55

	
Section 7.2

	
Preservation of Information; Communications to Holders

	
55

	
Section 7.3

	
Reports by Trustee

	
55

	 	 	 
	
ARTICLE 8

	 	 	 
	
SUCCESSORS

	 	 	 
	
Section 8.1

	
Merger, Consolidation, or Sale of Assets

	
55

	
Section 8.2

	
Successor Person Substituted for Company

	
57

	 	 	 
	
ARTICLE 9

	 	 	 
	
SUPPLEMENTAL INDENTURES

	 	 	 
	
Section 9.1

	
Supplemental Indentures without Consent of Holders

	
57

	
Section 9.2

	
Supplemental Indentures with Consent of Holders

	
59

	
Section 9.3

	
Trustee to Sign Amendments, etc

	
61

	
Section 9.4

	
Conformity with Trust Indenture Act

	
62

	
Section 9.5

	
Notice of Supplemental Indenture

	
62

	
Section 9.6

	
Revocation and Effect of Consents.

	
62

	 	 	 
	
ARTICLE 10

	 	 	 
	
COVENANTS

	 	 	 
	
Section 10.1

	
Payment of Securities

	
62

	
Section 10.2

	
Maintenance of Office or Agency

	
63

	
Section 10.3

	
Money for Securities Payments to Be Held in Trust

	
64

	
Section 10.4

	
Reports

	
65

	
Section 10.5

	
Corporate Existence

	
66

	
Section 10.6

	
Compliance Certificate

	
66

	
Section 10.7

	
Taxes.

	
67

	
Section 10.8

	
Stay, Extension and Usury Laws.

	
67

	 	 	 
	
ARTICLE 11

	 	 	 
	
REDEMPTION OF SECURITIES

	 	 	 
	
Section 11.1

	
Applicability of Article

	
67

	
Section 11.2

	
Election to Redeem; Notice to Trustee

	
67

	
Section 11.3

	
Selection by Trustee of Securities to be Redeemed

	
68

	
Section 11.4

	
Notice of Redemption

	
68

	
Section 11.5

	
Deposit of Redemption Price

	
70

 

  

iii

  

 

	
Section 11.6

	
Securities Payable on Redemption Date

	
70

	
Section 11.7

	
Securities Redeemed in Part

	
71

	
Section 11.8

	
Cancellation and Destruction of Securities

	
71

	 	 	 
	
ARTICLE 12

	 	 	 
	
SINKING FUNDS

	 	 	 
	
Section 12.1

	
Applicability of Article

	
71

	
Section 12.2

	
Satisfaction of Sinking Fund Payments with Securities

	
72

	
Section 12.3

	
Redemption of Securities for Sinking Fund

	
72

	 	 	 
	
ARTICLE 13

	 	 	 
	
REPAYMENT AT THE OPTION OF HOLDERS

	 	 	 
	
Section 13.1

	
Applicability of Article

	
73

	 	 	 
	
ARTICLE 14

	 	 	 
	
SECURITIES IN FOREIGN CURRENCIES

	 	 	 
	
Section 14.1

	
Applicability of Article

	
73

	 	 	 
	
ARTICLE 15

	 	 	 
	
MEETINGS OF HOLDERS OF SECURITIES

	 	 	 
	
Section 15.1

	
Purposes for Which Meetings May Be Called

	
74

	
Section 15.2

	
Call, Notice and Place of Meetings

	
74

	
Section 15.3

	
Persons Entitled to Vote at Meetings

	
74

	
Section 15.4

	
Quorum; Action

	
75

	
Section 15.5

	
Determination of Voting Rights; Conduct and Adjournment of Meetings

	
75

	
Section 15.6

	
Counting Votes and Recording Action of Meetings

	
76

	
Section 15.7

	
Preservation of Rights of Trustee and Holders

	
76

	 	 	 
	
ARTICLE 16

	 	 	 
	
SECURITY GUARANTEES

	 	 	 
	
Section 16.1

	
Guarantee.

	
77

	
Section 16.2

	
Limitation on Guarantor Liability.

	
78

	
Section 16.3

	
Execution and Delivery of Security Guarantee.

	
78

	
Section 16.4

	
Guarantors May Consolidate, etc., on Certain Terms.

	
79

	
Section 16.5

	
Releases.

	
80

 

  

iv

  

 

INDENTURE, dated as of ________, 20__ (the “Indenture”), between Dycom Investments, Inc., a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), as issuer, Dycom Industries, Inc., a corporation duly organized and existing under the laws of the State of Florida (the “Parent”), as guarantor, and each of the other Guarantors (as defined below) from time to time party hereto in respect of a particular Series of Securities (as defined below) and ______________, as trustee (the “Trustee”).

 

RECITALS

 

The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured debentures, notes or other evidences of indebtedness (the “Securities”), unlimited as to principal amount, to bear such rates of interest, to mature at such time or times, to be issued in one or more series, to be unsubordinated or subordinated and to have such other provisions as shall be fixed as hereinafter provided.

 

The Company has duly authorized the execution and delivery of this Indenture.  All things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.

 

This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Securities and Exchange Commission promulgated thereunder that are required to be part of this Indenture and, to the extent applicable, shall be governed by such provisions.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and the purchase of the Securities by the Holders (as herein defined) thereof, it is mutually covenanted, declared and agreed by and between the parties hereto, for the equal and proportionate benefit of all Holders of the Securities or of any series thereof and any Coupons (as herein defined) as follows:

 

ARTICLE 1

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.1      Definitions.

 

Except as otherwise specified with respect to any Securities issued pursuant to Section 3.1, and except as otherwise expressly provided in or pursuant to this Indenture, or unless the context otherwise requires, for all purposes of this Indenture:

 

(1)           the terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

 

(2)           all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

 

  

1

  

 

(3)           all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States of America and, except as otherwise herein expressly provided, the terms “generally accepted accounting principles” or “GAAP” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date or time of such computation;

 

(4)           the words “herein,” “hereof,” “hereto” and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and

 

(5)           the word “or” is always used inclusively (for example, the phrase “A or B” means “A or B or both,” not “either A or B but not both”).

 

Certain terms used principally in certain Articles hereof are defined in those Articles.

 

“Act,” when used with respect to any Holders, has the meaning specified in Section 1.4.

 

“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, means 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; provided that beneficial ownership of 10% or more of the voting securities of a Person will be deemed to be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

 

“Authenticating Agent” means any Person authorized by the Trustee pursuant to Section 6.11 to act on behalf of the Trustee to authenticate Securities of one or more series.

 

“Authorized Newspaper” means a newspaper, in an official language of the place of publication or in the English language, customarily published on each day that is a Business Day in the place of publication, whether or not published on days that are legal holidays in the place of publication, and of general circulation in each place in connection with which the term is used or in the financial community of each such place; provided, however, that “Authorized Newspaper” shall be the New York Times and The Wall Street Journal (national edition) for any Security denominated in Dollars unless otherwise provided in or pursuant to this Indenture.  Where successive publications are required to be made in Authorized Newspapers, the successive publications may be made in the same or in different newspapers in the same city meeting the foregoing requirements and in each case on any day that is a Business Day in the place of publication.

 

“Bankruptcy Law” means Title 11 of the U.S. Code or any similar federal or state law for the relief of debtors.

 

  

2

  

 

“Bearer Security” means any Security in the form established pursuant to Section 2.1 which is payable to bearer.

 

“Board of Directors” means the board of directors of the Company or any committee of that board duly authorized to act generally or in any particular respect for the Company hereunder.

 

“Board Resolution” means a copy of one or more resolutions, certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, delivered to the Trustee.

 

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

 

“Capital Lease Obligation” means, at the time any determination 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 prepared in accordance with GAAP, and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty.

 

“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 interests or membership interests (whether general or limited); and

 

(4) any other interest 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,

 

but excluding from all of the foregoing any debt securities convertible into Capital Stock,whether or not such debt securities include any right of participation with Capital Stock.

 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

 

“Common Stock” means, with respect to any Person, any Capital Stock (other than Preferred Stock) of such Person, whether outstanding on the date of this Indenture or issued thereafter.

 

“Company” means Dycom Investments, Inc., and any and all successors thereto.

 

  

3

  

 

“Company Request” or “Company Order” mean, respectively, a written request or order, as the case may be, signed in the name of the Company by an Officer, and delivered to the Trustee.

 

“continuing” means, with respect to any Default or Event of Default, that such Default or Event of Default has not been cured or waived.

 

“Conversion Event” means the cessation of use of (i) a Foreign Currency both by the government of the country or the confederation which issued such Foreign Currency and for the settlement of transactions by a central bank or other public institutions of or within the international banking community or (ii) any currency unit or composite currency for the purposes for which it was established.

 

“Corporate Trust Office” means the principal corporate trust office of the Trustee at which at any particular time its corporate trust business shall be administered, which office at the date of original execution of this Indenture is located at _________________________.

 

“Corporation” means corporations and limited liability companies and, except for purposes of Article 8, associations, companies and business trusts.

 

“Coupon” means any interest coupon appertaining to a Bearer Security.

 

“Currency,” with respect to any payment, deposit or other transfer in respect of the principal of or any premium or interest on any Security, means Dollars or the Foreign Currency, as the case may be, in which such payment, deposit or other transfer is required to be made by or pursuant to the terms hereof or such Security and, with respect to any other payment, deposit or transfer pursuant to or contemplated by the terms hereof or such Security, means Dollars.

 

“CUSIP number” means the alphanumeric designation assigned to a Security by Standard & Poor’s Ratings Service, CUSIP Service Bureau.

 

“Default” means any event that is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such Series.

 

“Defaulted Interest” has the meaning specified in Section 3.7.

 

“Dollars or $” means a dollar or other equivalent unit of legal tender for payment of public or private debts in the United States of America.

 

“Event of Default” has the meaning specified in Section 5.1.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party.

 

  

4

  

 

“Foreign Currency” means any currency, currency unit or composite currency, including, without limitation, the euro, issued by the government of one or more countries other than the United States of America or by any recognized confederation or association of such governments.

 

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

 

“Guarantee” means, as to any Person, 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 of another person (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise), but excluding endorsements for collection or deposit in the ordinary course of business or representations, warranties, covenants and indemnities entered into in the ordinary course of business.

 

“Guarantor” means with respect to any Series of Securities, each of (i) the Parent, (ii) each of the Parent’s Subsidiaries signatory to the supplemental indenture pursuant to Section 9.1(13) with respect to such Series, (iii) each of the Parent’s Subsidiaries that becomes a Guarantor of such Series of Securities pursuant to the provisions of this Indenture, and (iv) successors and assigns of (i), (ii) and (iii), in each case until released from its Guarantee pursuant to the provisions of this Indenture and the terms of such Series of Securities.

 

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

 

(1) interest rate swap agreements (whether from fixed to floating or from floating to fixed), interest rate cap agreements and interest rate collar agreements;

 

  

5

  

 

(2) other agreements or arrangements designed to manage interest rates or interest rate risk; and

 

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

 

“Holder,” in the case of any Registered Security, means the Person in whose name such Security is registered in the Security Register and, in the case of any Bearer Security, means the bearer thereof and, in the case of any Coupon, means the bearer thereof.

 

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables), 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;

 

(5) representing the balance deferred and unpaid of the purchase price of any property or services due more than one year after such property is acquired or such services are completed; or

 

(6) representing any Hedging Obligations,

 

if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP.

 

In addition, the term “Indebtedness” includes (x) 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); provided that the amount of such Indebtedness will be the lesser of (A) the Fair Market Value of such asset at such date of determination and (B) the amount of such Indebtedness and (y) to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.

 

“Indenture” means this instrument as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern this instrument, and, with respect to any Security, by the terms and provisions of such Security and any Coupon appertaining thereto established pursuant to Section 3.1 (as such terms and provisions may be amended pursuant to the applicable provisions hereof).

 

  

6

  

 

“Independent Public Accountants” means accountants or a firm of accountants that, with respect to the Company and any other obligor under the Securities or the Coupons, are independent public accountants within the meaning of the Securities Act who may be the independent public accountants regularly retained by the Company or who may be other independent public accountants.  Such accountants or firm shall be entitled to rely upon any Opinion of Counsel as to the interpretation of any legal matters relating to this Indenture or certificates required to be provided hereunder.

 

“Indexed Security” means a Security the terms of which provide that the principal amount thereof payable at Stated Maturity may be more or less than the principal face amount thereof at original issuance.

 

“Interest Payment Date,” with respect to any Security, means the Stated Maturity of an installment of interest on such Security.

 

“Judgment Currency” has the meaning specified in Section 1.16.

 

“Legal Holiday” with respect to any Place of Payment or other location, means any a Saturday, Sunday or other day on which banking institutions in such Place of Payment or other location are authorized or obligated by law, regulation or executive order to close.  If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue 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 in such asset.

 

“Maturity,” with respect to any Security, means the date on which the principal of such Security, or an installment of principal, becomes due and payable as provided in or pursuant to this Indenture, whether at the Stated Maturity or by declaration of acceleration, notice of redemption or repurchase, notice of option to elect repayment or otherwise, and includes the Redemption Date.

 

“New York Banking Day” has the meaning specified in Section 1.16.

 

“Office or Agency” with respect to any Securities, means an office or agency of the Company maintained or designated in a Place of Payment for such Securities pursuant to Section 10.2 or any other office or agency of the Company maintained or designated for such Securities pursuant to Section 10.2 or, to the extent designated or required by Section 10.2 in lieu of such office or agency, the Corporate Trust Office of the Trustee.

 

“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.

 

  

7

  

 

“Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of the Company, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Company, that meets the requirements of Section 1.2 hereof.

 

“Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel for the Company or other counsel who shall be reasonably acceptable to the Trustee, that meets the requirements of Section 1.2 hereof and, if required by the Trust Indenture Act, complies with the requirements of Section 314(e) of the Trust Indenture Act.

 

“Original Issue Discount Security” means a Security issued pursuant to this Indenture which provides for declaration of an amount less than the principal face amount thereof to be due and payable upon acceleration pursuant to Section 5.2.

 

“Outstanding,” when used with respect to any Securities, means, as of the date of determination, all such Securities theretofore authenticated and delivered under this Indenture, except:

 

(a)           any such Security theretofore cancelled by the Trustee or the Security Registrar or delivered to the Trustee or the Security Registrar for cancellation;

 

(b)           any such Security for whose payment at the Maturity thereof money in the necessary amount has been theretofore deposited pursuant hereto with the Trustee or any Paying Agent (other than the Company or any Subsidiary of the Parent) in trust or set aside and segregated in trust by the Company or any Subsidiary of the Parent (if the Company or such Subsidiary of the Parent shall act as Paying Agent) for the Holders of such Securities and any Coupons appertaining thereto; provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made;

 

(c)           any such Security with respect to which the Company has effected defeasance and/or covenant defeasance pursuant to the terms hereof, except to the extent provided in Section 4.2;

 

(d)           any such Security which has been paid pursuant to Section 3.6 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, unless there shall have been presented to the Trustee proof satisfactory to it that such Security is held by a bona fide purchaser in whose hands such Security is a valid obligation of the Company; and

 

(e)           any such Security converted or exchanged as contemplated by this Indenture into other securities of the Company or Common Stock of the Parent, if the terms of such Security provide for such conversion or exchange pursuant to Section 3.1;

 

provided, however, that in determining whether the Holders of the requisite principal amount of Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder or are present at a meeting of Holders of Securities for quorum purposes, (i) the principal amount of an Original Issue Discount Security that may be counted in making

 

 

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such determination and that shall be deemed to be Outstanding for such purposes shall be equal to the amount of the principal thereof that pursuant to the terms of such Original Issue Discount Security would be declared (or shall have been declared to be) due and payable upon a declaration of acceleration thereof pursuant to Section 5.2 at the time of such determination, and (ii) the principal amount of any Indexed Security that may be counted in making such determination and that shall be deemed Outstanding for such purposes shall be equal to the principal face amount of such Indexed Security at original issuance, unless otherwise provided in or pursuant to this Indenture, and (iii) the principal amount of a Security denominated in a Foreign Currency shall be the Dollar equivalent, determined on the date of original issuance of such Security, of the principal amount (or, in the case of an Original Issue Discount Security, the Dollar equivalent on the date of original issuance of such Security of the amount determined as provided in (i) above) of such Security, and (iv) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor, shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in making any such determination or relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded.  Securities so owned which shall have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee (A) the pledgee’s right so to act with respect to such Securities and (B) that the pledgee is not the Company or any other obligor upon the Securities or any Coupons appertaining thereto or an Affiliate of the Company or such other obligor.

 

“Parent” means Dycom Industries, Inc., and any and all successors thereto.

 

“Paying Agent” means any Person authorized by the Company to pay the principal of, or any premium or interest on, any Security or any Coupon on behalf of the Company.

 

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

 

“Place of Payment,” with respect to any Security, means the place or places where the principal of, or any premium or interest on, such Security is payable as provided in or pursuant to this Indenture or such Security.

 

“Predecessor Security” of any particular Security means every previous Security evidencing all or a portion of the same Indebtedness as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or in lieu of a lost, destroyed, mutilated or stolen Security or any Security to which a mutilated, destroyed, lost or stolen Coupon appertains shall be deemed to evidence the same Indebtedness as the lost, destroyed, mutilated or stolen Security or the Security to which a mutilated, destroyed, lost or stolen Coupon appertains.

 

“Preferred Stock” means, with respect to any Person, any Capital Stock of such Person that has preferential rights to any other Capital Stock of such Person with respect to dividends or redemptions upon liquidation.

 

  

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“Redemption Date” with respect to any Security or portion thereof to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture or such Security.

 

“Redemption Price” with respect to any Security or portion thereof to be redeemed, means the price at which it is to be redeemed as determined by or pursuant to this Indenture or such Security.

 

“Registered Security” means any Security in the form established pursuant to Section 2.1 which is registered in a Security Register.

 

“Regular Record Date” for the interest payable on any Registered Security on any Interest Payment Date therefor means the date, if any, specified in or pursuant to this Indenture or such Security as the “Regular Record Date”.

 

“Required Currency” has the meaning specified in Section 1.16.

 

“Responsible Officer” when used with respect to the Trustee, means any officer within the ______________ of the Trustee (or any successor group of the Trustee) or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated officers 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.

 

“Security” or “Securities” means any note or notes, bond or bonds, debenture or debentures, or any other evidences of Indebtedness, as the case may be, authenticated and delivered under this Indenture; provided, however, that, if at any time there is more than one Person acting as Trustee under this Indenture, “Securities,” with respect to any such Person, shall mean Securities authenticated and delivered under this Indenture, exclusive, however, of Securities of any Series as to which such Person is not Trustee.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission thereunder.

 

“Security Guarantee” means the Guarantee of Securities of any applicable Series by each Guarantor thereof under this Indenture, executed pursuant to the provisions of this Indenture.

 

“Security Register” and “Security Registrar” have the respective meanings specified in Section 3.5.

 

“Series” means each series of Securities created pursuant to Sections 2.1 and 3.1 hereof.

 

“Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the date of this Indenture.

 

  

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“Special Record Date” for the payment of any Defaulted Interest on any Registered Security means a date fixed by the Company pursuant to Section 3.7.

 

“Stated Maturity,” with respect to any Security or any installment of principal thereof or interest thereon, means the date established by or pursuant to this Indenture or such Security as the fixed date on which the principal of such Security or such installment of principal or interest is, due and payable.

 

“Subsidiary” means, with respect to any specified Person:

 

(1) any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); 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 that Person or one or more Subsidiaries of that Person (or any combination thereof).

 

“Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, and any reference herein to the Trust Indenture Act or a particular provision thereof shall mean such Act or provision, as the case may be, as amended or replaced from time to time or as supplemented from time to time by rules or regulations adopted by the Commission under or in furtherance of the purposes of such Act or provision, as the case may be.

 

“Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture until a successor Trustee shall have become such with respect to one or more Series of Securities pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean each Person who is then a Trustee hereunder; provided, however, that if at any time there is more than one such Person, “Trustee” shall mean each such Person and as used with respect to the Securities of any Series shall mean the Trustee with respect to the Securities of such Series.

 

“United States,” except as otherwise provided in or pursuant to this Indenture or any Security, means the United States of America (including the states thereof and the District of Columbia), its territories and possessions and other areas subject to its jurisdiction.

 

“U.S. Depository” or “Depository” means, with respect to any Security issuable or issued in the form of one or more global Securities, the Person designated as U.S. Depository or Depository by the Company in or pursuant to this Indenture, which Person must be, to the extent required by applicable law or regulation, a clearing agency registered under the Exchange Act and, if so provided with respect to any Security, any successor to such Person.  If at any time there is more than one such Person, “U.S. Depository” or “Depository” shall mean, with respect to any Securities, the qualifying entity that has been appointed with respect to such Securities.

 

Section 1.2      Compliance Certificates and Opinions.

 

  

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Except as otherwise expressly provided in this Indenture, upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of such documents or any of them is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.

 

Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

 

(1)           a statement that the individual signing such certificate or opinion has read such condition or covenant and the definitions herein relating thereto;

 

(2)           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;

 

(3)           a statement that, in the opinion of such individual, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such condition or covenant has been complied with; and

 

(4)           a statement as to whether, in the opinion of such individual, such condition or covenant has been complied with.

 

Section 1.3      Form of Documents Delivered to Trustee.

 

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

 

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, provided that such officer, after reasonable inquiry, has no reason to believe and does not believe that the Opinion of Counsel with respect to the matters upon which his certificate or opinion is based is erroneous.  Any such Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company, stating that the information with respect to such factual matters is in the possession of the Company, provided that such counsel, after reasonable inquiry, has no reason to believe and does not believe that the certificate or opinion or representations with respect to such matters are erroneous.

 

  

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Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture or any Security, they may, but need not, be consolidated and form one instrument.

 

Section 1.4      Acts of Holders.

 

(1)           Any request, demand, authorization, direction, notice, consent, waiver or other action provided by or pursuant to this Indenture to be given or taken by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by an agent duly appointed in writing.  If, but only if, Securities of a Series are issuable as Bearer Securities, any request, demand, authorization, direction, notice, consent, waiver or other action provided by or pursuant to this Indenture to be given or taken by Holders of Securities of such Series may, alternatively, be embodied in and evidenced by the record of Holders of Securities of such Series voting in favor thereof, either in person or by proxies duly appointed in writing, at any meeting of Holders of Securities of such Series duly called and held in accordance with the provisions of Article 15, or a combination of such instruments and any such record.  Except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company.  Such instrument or instruments and any such record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing such instrument or instruments or so voting at any such meeting.  Proof of execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and (subject to Section 315 of the Trust Indenture Act) conclusive in favor of the Trustee, the Company and any agent of the Trustee or the Company, if made in the manner provided in this Section.  The record of any meeting of Holders of Securities shall be proved in the manner provided in Section 15.6.

 

Without limiting the generality of this Section 1.4, unless otherwise provided in or pursuant to this Indenture, a Holder, including a U.S. Depository that is a Holder of a global Security, may make, give or take, by a proxy or proxies, duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other Act provided by or pursuant to this Indenture to be made, given or taken by Holders, and a U.S. Depository that is a Holder of a global Security may provide its proxy or proxies to the beneficial owners of interests in any such global Security through such U.S. Depository’s standing instructions and customary practices.

 

The Company shall fix a record date for the purpose of determining the Persons who are beneficial owners of interest in any permanent global Security held by a U.S. Depository entitled under the procedures of such U.S. Depository to make, give or take, by a proxy or proxies duly appointed in writing, any request, demand, authorization, direction, notice, consent, waiver or other Act provided by or pursuant to this Indenture to be made, given or taken by Holders.  If such a record date is fixed, the Holders on such record date or their duly appointed proxy or proxies, and only such Persons, shall be entitled to make, give or take such request, demand, authorization, direction, notice, consent, waiver or other Act, whether or not such Holders remain Holders after such record date.  No such request, demand, authorization, direction, notice, consent, waiver or other Act shall be valid or effective if made, given or taken more than 90 days after such record date.

 

  

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(2)           The fact and date of the execution by any Person of any such instrument or writing referred to in this Section 1.4 may be proved in any reasonable manner; and the Trustee may in any instance require further proof with respect to any of the matters referred to in this Section 1.4.

 

(3)           The ownership, principal amount and serial numbers of Registered Securities held by any Person, and the date of the commencement and the date of the termination of holding the same, shall be proved by the Security Register.

 

(4)           The ownership, principal amount and serial numbers of Bearer Securities held by any Person, and the date of the commencement and the date of the termination of holding the same, may be proved by the production of such Bearer Securities or by a certificate executed, as depositary, by any trust company, bank, banker or other depositary reasonably acceptable to the Company, wherever situated, if such certificate shall be deemed by the Company and the Trustee to be satisfactory, showing that at the date therein mentioned such Person had on deposit with such depositary, or exhibited to it, the Bearer Securities therein described; or such facts may be proved by the certificate or affidavit of the Person holding such Bearer Securities, if such certificate or affidavit is deemed by the Trustee to be satisfactory.  The Trustee and the Company may assume that such ownership of any Bearer Security continues until (i) another certificate or affidavit bearing a later date issued in respect of the same Bearer Security is produced, or (ii) such Bearer Security is produced to the Trustee by some other Person, or (iii) such Bearer Security is surrendered in exchange for a Registered Security, or (iv) such Bearer Security is no longer Outstanding.  The ownership, principal amount and serial numbers of Bearer Securities held by the Person so executing such instrument or writing and the date of the commencement and the date of the termination of holding the same may also be proved in any other manner, which the Company and the Trustee deem sufficient.

 

(5)           If the Company shall solicit from the Holders of any Registered Securities any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may at its option (but is not obligated to), by Board Resolution, fix in advance a record date for the determination of Holders of Registered Securities entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act.  If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of Registered Securities of record at the close of business on such record date shall be deemed to be Holders for the purpose of determining whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders of Registered Securities shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the record date.

 

(6)           Any request, demand, authorization, direction, notice, consent, waiver or other Act by the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything done or suffered to be done by the Trustee, any

 

 

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Security Registrar, any Paying Agent or the Company in reliance thereon, whether or not notation of such Act is made upon such Security.

 

Section 1.5      Notices, etc. to Trustee and Company.

 

Any request, demand, authorization, direction, notice, consent, waiver or other Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with,

 

(1)           the Trustee by any Holder or the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office, or

 

(2)           the Company, by the Trustee or any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company, addressed to the attention of its General Counsel at the address of its principal office specified herein or at any other address previously furnished in writing to the Trustee by the Company.

 

Section 1.6      Notice to Holders of Securities; Waiver.

 

Except as otherwise expressly provided in or pursuant to this Indenture, where this Indenture provides for notice to Holders of Securities of any event,

 

(1)           such notice shall be sufficiently given to Holders of Registered Securities if in writing and mailed, first-class postage prepaid, to each Holder of a Registered Security affected by such event, at his address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice; and

 

(2)           such notice shall be sufficiently given to Holders of Bearer Securities, if any, if published in an Authorized Newspaper in The City of New York and, if such Securities are then listed on any stock exchange outside the United States, in an Authorized Newspaper in such city as the Company shall advise the Trustee that such stock exchange so requires, on a Business Day at least twice, the first such publication to be not earlier than the earliest date and the second such publication not later than the latest date prescribed for the giving of such notice.

 

In any case where notice to Holders of Registered Securities is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder of a Registered Security shall affect the sufficiency of such notice with respect to other Holders of Registered Securities or the sufficiency of any notice to Holders of Bearer Securities given as provided herein.  Any notice that is mailed in the manner herein provided, shall be conclusively presumed to have been duly given or provided.  In the case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made with the approval of the Trustee shall constitute a sufficient notification for every purpose hereunder.

 

  

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In case by reason of the suspension of publication of any Authorized Newspaper or Authorized Newspapers or by reason of any other cause it shall be impracticable to publish any notice to Holders of Bearer Securities as provided above, then such notification to Holders of Bearer Securities as shall be given with the approval of the Trustee shall constitute sufficient notice to such Holders for every purpose hereunder.  Neither failure to give notice by publication to Holders of Bearer Securities as provided above, nor any defect in any notice so published, shall affect the sufficiency of any notice mailed to Holders of Registered Securities as provided above.

 

Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice.  Waivers of notice by Holders of Securities shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

 

All communications hereunder will be in writing and will be mailed, delivered or telegraphed and confirmed to the party receiving such communication at its address indicated below:

 

If to the Company:

 

Dycom Investments, Inc.

c/o Dycom Industries, Inc.

11770 U.S. Highway 1, Suite 101

Palm Beach Gardens, FL 33408

Facsimile No.: (561) 799-2207

Attention: General Counsel

If to the Trustee:

 

__________________

__________________

__________________

Attention:  _______________

Section 1.7      Language of Notices.

 

Any request, demand, authorization, direction, notice, consent, election or waiver required or permitted under this Indenture shall be in the English language, except that, if the Company so elects, any published notice may be in an official language of the country of publication.

 

Section 1.8      Conflict with Trust Indenture Act.

 

If any provision hereof limits, qualifies or conflicts with any duties under any required provision of the Trust Indenture Act imposed hereon by Section 318(c) thereof, such required provision shall control.

 

  

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Section 1.9      Effect of Headings and Table of Contents.

 

The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

 

Section 1.10      Successors and Assigns.

 

All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

 

Section 1.11      Separability Clause.

 

In case any provision in this Indenture, any Security or any Coupon shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section 1.12      Benefits of Indenture.

 

Nothing in this Indenture, any Security or any Coupon, express or implied, shall give to any Person, other than the parties hereto, any Security Registrar, any Paying Agent, any Authenticating Agent and their successors hereunder and the Holders of Securities or Coupons, any benefit or any legal or equitable right, remedy or claim under this Indenture.

 

Section 1.13      Governing Law.

 

This Indenture, the Securities and any Coupons shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made or instruments entered into and, in each case, performed in said state.

 

Section 1.14      Legal Holidays.

 

Unless otherwise specified in or pursuant to this Indenture or any Securities, in any case where any Interest Payment Date, Stated Maturity or Maturity of any Security, or the last date on which a Holder has the right to convert or exchange Securities of a Series that are convertible or exchangeable, shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture, any Security or any Coupon other than a provision in any Security or Coupon that specifically states that such provision shall apply in lieu hereof) payment need not be made at such Place of Payment on such date, and such Securities need not be converted or exchanged on such date, but such payment may be made, and such Securities may be converted or exchanged, on the next succeeding day that is a Business Day at such Place of Payment, and no interest shall accrue on the amount payable on such date or at such time for the period from and after such Interest Payment Date, Stated Maturity, Maturity or last day for conversion or exchange, as the case may be, to such next succeeding Business Day, except that if such next succeeding Business Day is in the next succeeding calendar year, such payment may be made, and such Securities may be converted or exchanged, on the immediately preceding Business Day (in the case of each of the foregoing, with the same force and effect as if made on such Interest Payment Date or at such Stated Maturity or Maturity or on such last day for conversion or exchange, as the case may be).

 

  

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Section 1.15      Counterparts.

 

This Indenture may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

 

Section 1.16      Judgment Currency.

 

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

 

Section 1.17      No Security Interest Created.

 

Nothing in this Indenture or in any Securities, express or implied, shall be construed to constitute a security interest under the Uniform Commercial Code or similar legislation, as now or hereafter enacted and in effect in any jurisdiction where property of the Company or its Subsidiaries is or may be located.

 

Section 1.18      Limitation on Individual Liability.

 

No recourse under or upon any obligation, covenant or agreement contained in this Indenture or in any Security, or for any claim based thereon or otherwise in respect thereof, shall be had against any incorporator, shareholder, officer or director, as such, past, present or future, of the Company, either directly or through the Company, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, shareholders, officers or directors, as such, of the Company, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in

 

 

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any Security or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, shareholder, officer or director, as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any Security or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Security.

 

ARTICLE 2

 

SECURITIES FORMS

 

Section 2.1      Forms Generally.

 

Each Registered Security, Bearer Security, Coupon and temporary or permanent global Security issued pursuant to this Indenture shall be in the form established in one or more indentures supplemental hereto, shall have such appropriate insertions, omissions, substitutions and other variations as are required or permitted by or pursuant to this Indenture or any indenture supplemental hereto and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Security or Coupon as evidenced by their execution of such Security or Coupon, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Securities may be listed.

 

Unless otherwise provided in or pursuant to this Indenture or any Securities, the Securities shall be issuable in registered form without Coupons.

 

Definitive Securities and definitive Coupons shall be lithographed, typewritten, mimeographed or otherwise produced by any combination of these methods on a steel engraved border or steel engraved borders or may be produced in any other manner, all as determined by the officers of the Company executing such Securities or Coupons, as evidenced by their execution of such Securities or Coupons.

 

Section 2.2      Form of Trustee’s Certificate of Authentication.

 

Subject to Section 6.11, the Trustee’s certificate of authentication shall be in substantially the following form:

 

This is one of the Securities of the Series designated therein referred to in the within-mentioned Indenture.

 

	 	 	 	 ,
	 	 	as Trustee	 
	 	 	 	 
	 	 	 	 
	
 

	
By

	 	 
	 	 	Officer	 

 

  

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Section 2.3      Securities in Global Form.

 

Unless otherwise provided in or pursuant to this Indenture or any Securities, the Securities shall not be issuable in temporary or permanent global form.  If Securities of a Series shall be issuable in global form, as specified and contemplated by Section 3.1, any such Security may provide that it or any number of such Securities shall represent the aggregate amount of all Outstanding Securities of such Series (or such lesser amount as is permitted by the terms thereof) from time to time endorsed thereon and may also provide that the aggregate amount of Outstanding Securities represented thereby may from time to time be increased or reduced to reflect exchanges.  Any endorsement of any Security in global form to reflect the amount, or any increase or decrease in the amount, or changes in the rights of Holders, of Outstanding Securities represented thereby shall be made in such manner and by such Person or Persons as shall be specified therein or in the Company Order to be delivered pursuant to Section 3.3 or 3.4 with respect thereto.  Subject to the provisions of Section 3.3 and, if applicable, Section 3.4, the Trustee shall deliver and redeliver, in each case at the Company’s expense, any Security in permanent global form in the manner and upon instructions given by the Person or Persons specified therein or in the applicable Company Order.  If a Company Order pursuant to Section 3.3 or 3.4 has been, or simultaneously is, delivered, any instructions by the Company with respect to a Security in global form shall be in writing but need not be accompanied by or contained in an Officers’ Certificate and need not be accompanied by an Opinion of Counsel.

 

Notwithstanding the provisions of Section 3.7, unless otherwise specified in or pursuant to this Indenture or any Securities, payment of principal of, any premium and interest on, any Security (i) in temporary form shall be made to the Person or Persons specified therein, and (ii) in global form and registered in the name of a Depository or its nominee shall be made to the Depository or its nominee as the Holder of such global Security.  Neither the Company nor the Trustee shall have any responsibility or liability for any aspect of the records relating to, or payments made on account of, beneficial ownership interests of a global Security, or for maintaining, supervising or reviewing any records relating to beneficial ownership interests, and each of the Company and the Trustee may act or refrain from acting without liability on any information provided by the Depository.

 

Notwithstanding the provisions of Section 3.8 and except as provided in the preceding paragraph, the Company, the Trustee and any agent of the Company or the Trustee shall treat as the Holder of such principal amount of Outstanding Securities represented by a global Security (i) in the case of a global Security in registered form, the Holder of such global Security in registered form, or (ii) in the case of a global Security in bearer form, the Person or Persons specified pursuant to Section 3.1.

 

ARTICLE 3

 

THE SECURITIES

 

Section 3.1      Amount Unlimited; Issuable in Series.

 

The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited.  The Securities may be issued in one or more series.

 

  

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With respect to any Securities to be authenticated and delivered hereunder, there shall be established in one or more indentures supplemental hereto,

 

(1)           the title and series of such Securities;

 

(2)           the total principal amount of the Series of such Securities and whether there shall be any limit upon the aggregate principal amount of Series of such Securities that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration or transfer of, or in exchange for, or in lieu of, other Securities of such Series pursuant to Section 3.4, 3.5, 3.6, 9.5 or 11.7);

 

(3)           if Series of such Securities are to be issuable as Registered Securities, as Bearer Securities or alternatively as Bearer Securities and Registered Securities, and whether the Bearer Securities are to be issuable with Coupons, without Coupons or both, and any restrictions applicable to the offer, sale or delivery of the Bearer Securities and the terms, if any, upon which Bearer Securities may be exchanged for Registered Securities and vice versa;

 

(4)           if any of such Securities are to be issuable in global form, when any of such Securities are to be issuable in global form and (i) whether such Securities are to be issued in temporary or permanent global form or both, (ii) whether beneficial owners of interests in any such global Security may exchange such interests for Securities of the same Series and of like tenor and of any authorized form and denomination, and the circumstances under which any such exchanges may occur, if other than in the manner specified in Section 3.5, and (iii) the name of the Depository or the U.S. Depository, as the case may be, with respect to any such global Security;

 

(5)           if any of such Securities are to be issuable as Bearer Securities or in global form, the date as of which any such Bearer Security or global Security shall be dated (if other than the date of original issuance of the first of such Securities to be issued);

 

(6)           if any of such Securities are to be issuable as Bearer Securities, whether interest in respect of any portion of a temporary Bearer Security in global form payable in respect of an Interest Payment Date therefor prior to the exchange, if any, of such temporary Bearer Security for definitive Securities shall be paid to any clearing organization with respect to the portion of such temporary Bearer Security held for its account and, in such event, the terms and conditions (including any certification requirements) upon which any such interest payment received by a clearing organization will be credited to the Persons entitled to interest payable on such Interest Payment Date;

 

(7)           the date or dates, or the method or methods, if any, by which such date or dates shall be determined, on which the principal of and premium, if any, on the Series of such Securities shall be payable;

 

(8)           the entities which shall be the initial Guarantors of the Company’s obligations with respect to Series of such Securities and any modifications to the terms of Article 16 applicable to the Securities of such Series;

 

  

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(9)           if Series of such Securities and the related Security Guarantees are subordinated in right of payment to the prior payment in full of any senior indebtedness, the terms and conditions of such subordination;

 

(10)           the Person to whom any interest on a Series of Security shall be payable, if other than the Person in whose name that Security is registered at the close of business on the Regular Record Date for such interest; the rate or rates at which Series of such Securities shall bear interest, if any, which rate may be zero in the case of certain Securities issued at an issue price representing a discount from the principal amount payable at Maturity, or the method by which such rate or rates will be determined (including, if applicable, any remarketing option or similar method), and the date or dates from which such interest, if any, will accrue or the method by which such date or dates will be determined, and the basis upon which interest shall be calculated if other than that of a 360 day year of twelve 30-day months;

 

(11)           the date or dates on which interest, if any, on Series of such Securities shall be payable and any Regular Record Dates applicable to the date or dates on which interest will be so payable;

 

(12)           if in addition to or other than the Borough of Manhattan, The City of New York, the place or places where the principal of or any premium or interest on Series of such Securities shall be payable, where any of such Securities that are issued in registered form may be surrendered for registration of transfer or exchange, and where any such Securities may be surrendered for conversion or exchange and notices of demands to or upon the Company in respect of such Securities and this Indenture may be served;

 

(13)           the extent to which, the manner in which, any interest payment on a global Security on an Interest Payment Date, will be paid and the manner in which any principal of or premium, if any, on any global Security will be paid;

 

(14)           if Series of such Securities are to be redeemable at the Company’s option, the date or dates on which, the period or periods within which, the price or prices at which and the other terms and conditions upon which such Securities may be redeemed, in whole or in part, at the Company’s option pursuant to any sinking fund or otherwise;

 

(15)           provisions specifying whether the Company shall be obligated to redeem, purchase or repay Series of such Securities pursuant to any sinking fund or analogous provision or at the option of any Holder of such Securities and, if so, the date or dates on which, the period or periods within which, the price or prices at which and the other terms and conditions upon which Series of such Securities shall be redeemed, purchased or repaid, in whole or in part, pursuant to such obligation, and any provisions for the remarketing of Series of such Securities so redeemed or purchased;

 

(16)           if other than denominations of $2,000, and any integral multiple of $1,000 in excess thereof, the denominations in which any Securities to be issued in registered form will be issuable and, if other than a denomination of $5,000, the denominations in which any Securities to be issued in bearer form will be issuable;

 

  

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(17)           provisions specifying whether the Series of such Securities will be convertible into other securities of the Company or exchangeable into Common Stock of the Parent and, if so, the terms and conditions upon which such Securities shall be so convertible or exchangeable;

 

(18)           if other than the principal amount, the portion of the principal amount (or the method by which such portion will be determined) of Series of such Securities that will be payable upon declaration of acceleration of the Maturity thereof pursuant to the terms of this Indenture;

 

(19)           if other than Dollars, the Currency of payment, including composite Currencies and Foreign Currencies, of the principal of, any premium or interest on any Series of such Securities;

 

(20)           if other than as provided in Section 4.2, the manner in which the Securities of the Series are to be defeased;

 

(21)           provisions specifying whether the principal of, or any premium or interest on Series of such Securities shall be payable, at the election of the Company or a Holder of Securities, in a Currency other than that in which such Securities are stated to be payable and the date or dates on which, the period or periods within which, and the other terms and conditions upon which, such election may be made, and the time and manner of determining the exchange rate;

 

(22)           any index, formula or other method used to determine the amount of payments of principal of, or any premium or interest on, Series of such Securities;

 

(23)           provisions specifying whether Series of such Securities are to be issued in the form of one or more global Securities and, if so, the identity of the Depository for such global Security or Securities;

 

(24)           any deletions from, modifications of or additions to the Events of Default or covenants of the Company and/or the Guarantors that are contained herein with respect to Series of such Securities;

 

(25)           any deletions from, modifications of or additions to Article 8 that are contained herein with respect to Series of such Securities;

 

(26)           terms specifying whether the provisions described below under Sections 4.1 and 4.2 shall be applicable to Series of such Securities;

 

(27)           terms specifying whether any of such Securities are to be issued upon the exercise of warrants, and the time, manner and place for such Securities to be authenticated and delivered; and

 

(28)           any other terms of Series of such Securities and any other deletions from or modifications or additions to this Indenture in respect of such Securities.

 

  

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All Securities of any Series and all Coupons, if any, appertaining to Bearer Securities of such Series shall be substantially identical except as to Currency of payments due thereunder, denomination and the rate of interest thereon, or method of determining the rate of interest, if any, Maturity, and the date from which interest, if any, shall accrue and except as may otherwise be provided by the Company in any indenture or indentures supplemental hereto pertaining to such Series of Securities.  The terms of the Securities of any Series may provide, without limitation, that the Securities shall be authenticated and delivered by the Trustee on original issue from time to time upon written order of persons designated in the supplemental indenture and that such persons are authorized to determine, consistent with the applicable supplemental indenture, such terms and conditions of the Securities of such Series as are specified in such supplemental indenture.  All Securities of any Series need not be issued at the same time and, unless otherwise so provided, a Series may be reopened for issuances of additional Securities of such Series or to establish additional terms of such Series of Securities.  The Company also may issue, and the Trustee may authenticate, Securities with the same terms as previously issued Securities.

 

Section 3.2      Currency; Denominations.

 

Unless otherwise provided in or pursuant to this Indenture, the principal of, and any premium and interest, if any, on, the Securities shall be payable in Dollars.  Unless otherwise provided in or pursuant to this Indenture, Registered Securities denominated in Dollars shall be issuable in registered form without Coupons in denominations of $2,000, and any integral multiple of $1,000 in excess thereof, and the Bearer Securities denominated in Dollars shall be issuable in denominations of $5,000.  Securities not denominated in Dollars shall be issuable in such denominations as are established with respect to such Securities in or pursuant to this Indenture.

 

Section 3.3      Execution, Authentication, Delivery and Dating.

 

Securities and Coupons shall be executed on behalf of the Company by at least one Officer.  The signature of any of these officers on the Securities or any Coupons appertaining thereto may be manual or facsimile.

 

Securities and any Coupons appertaining thereto bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities and Coupons or did not hold such offices at the date of original issuance of such Securities or Coupons.

 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities, together with any Coupons appertaining thereto, executed by the Company, to the Trustee for authentication and, provided that the supplemental indenture or indentures with respect to such Securities referred to in Section 3.1 and a Company Order for the authentication and delivery of such Securities have been delivered to the Trustee, the Trustee in accordance with the Company Order and subject to the provisions hereof and of such Securities shall authenticate and deliver such Securities.  In authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities

 

 

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and any Coupons appertaining thereto, the Trustee shall be entitled to receive, and (subject to Sections 315(a) through 315(d) of the Trust Indenture Act) shall be fully protected in relying upon,

 

(1)           an Opinion of Counsel to the effect that:

 

(a)           the form or forms and the terms of such Securities and any Coupons have been established in conformity with the provisions of this Indenture; and

 

(b)           such Securities, together with any Coupons appertaining thereto, when completed by appropriate insertions and executed and delivered by the Company to the Trustee for authentication in accordance with this Indenture, authenticated and delivered by the Trustee in accordance with this Indenture and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute legal, valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization and other similar laws of general applicability relating to or affecting the enforcement of creditors’ rights, to general equitable principles and to such other qualifications as such counsel shall conclude do not materially affect the rights of Holders of such Securities and any Coupons; and

 

(2)           an Officers’ Certificate stating that, to the best knowledge of the Persons executing such certificate, all conditions precedent to the execution, authentication and delivery of such Securities and Coupons, if any, appertaining thereto, have been complied with, and no event which is, or after notice or lapse of time would become, an Event of Default with respect to any of the Securities shall have occurred and be continuing.

 

If all the Securities of any Series are not to be issued at one time, it shall not be necessary to deliver an Opinion of Counsel and an Officers’ Certificate at the time of issuance of each Security, but such Opinion of Counsel and Officers’ Certificate, with appropriate modifications, shall be delivered at or before the time of issuance of the first Security of such Series.  After any such first delivery, any separate written request by an Officer of the Company or any person designated in writing by an Officer that the Trustee authenticate and deliver Securities of such Series for original issue will be deemed to be a certification by the Company that all conditions precedent provided for in this Indenture relating to authentication and delivery of such Securities continue to have been complied with and that no Event of Default with respect to any of the Securities has occurred or is continuing.

 

The Trustee shall not be required to authenticate or to cause an Authenticating Agent to authenticate any Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee or if the Trustee, being advised by counsel, determines that such action may not lawfully be taken.

 

  

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Each Registered Security shall be dated the date of its authentication.  Unless otherwise specified in or pursuant to this Indenture, each Bearer Security and any Bearer Security in global form shall be dated as of the date specified in or pursuant to this Indenture.

 

No Security or Coupon appertaining thereto shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Security a certificate of authentication substantially in the form provided for in Section 2.2 or 6.11 executed by or on behalf of the Trustee or by the Authenticating Agent by the manual signature of one of its authorized officers.  Such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder.  Except as permitted by Section 3.6, the Trustee shall not authenticate and deliver any Bearer Security unless all Coupons appertaining thereto then matured have been detached and cancelled.

 

Section 3.4      Temporary Securities.

 

Pending the preparation of definitive Securities, the Company may execute and deliver to the Trustee and, upon Company Order, the Trustee shall authenticate and deliver, in the manner provided in Section 3.3, temporary Securities in lieu thereof which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued, in registered form or, if authorized in or pursuant to this Indenture, in bearer form with one or more Coupons or without Coupons and with such appropriate insertions, omissions, substitutions and other variations as the officers of the Company executing such Securities may determine, as conclusively evidenced by their execution of such Securities.  Such temporary Securities may be in global form.

 

Except in the case of temporary Securities in global form, which shall be exchanged in accordance with the provisions thereof, if temporary Securities are issued, the Company shall cause definitive Securities to be prepared without unreasonable delay.  After the preparation of definitive Securities of the same Series and containing terms and provisions that are identical to those of any temporary Securities, such temporary Securities shall be exchangeable for such definitive Securities upon surrender of such temporary Securities at an Office or Agency for such Securities, without charge to any Holder thereof.  Upon surrender for cancellation of any one or more temporary Securities (accompanied by any unmatured Coupons appertaining thereto), the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor an equal aggregate principal amount of definitive Securities of authorized denominations of the same Series and containing identical terms and provisions; provided, however, that no definitive Bearer Security, except as provided in or pursuant to this Indenture, shall be delivered in exchange for a temporary Registered Security; and provided, further, that a definitive Bearer Security shall be delivered in exchange for a temporary Bearer Security only in compliance with the conditions set forth in or pursuant to this Indenture.  Unless otherwise provided in or pursuant to this Indenture with respect to a temporary global Security, until so exchanged the temporary Securities of any Series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such Series.

 

  

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Section 3.5      Registration, Transfer and Exchange.

 

With respect to the Registered Securities of each Series, if any, the Company shall cause to be kept a register (each such register being herein sometimes referred to as the “Security Register”) at an Office or Agency for such Series in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of the Registered Securities of such Series and of transfers of the Registered Securities of such Series.  Such Office or Agency shall be the “Security Registrar” for that Series of Securities.  Unless otherwise specified in or pursuant to this Indenture or the Securities, the Trustee shall be the initial Security Registrar for each Series of Securities.  The Company shall have the right to remove and replace from time to time the Security Registrar for any Series of Securities; provided that no such removal or replacement shall be effective until a successor Security Registrar with respect to such Series of Securities shall have been appointed by the Company and shall have accepted such appointment by the Company.  In the event that the Trustee shall not be or shall cease to be Security Registrar with respect to a Series of Securities, it shall have the right to examine the Security Register for such Series at all reasonable times.  The Company shall be required to maintain a Security Registrar in each place where the principal of and premium or interest on any Security is payable.  There shall be only one Security Register for each Series of Securities.

 

Upon surrender for registration of transfer of any Registered Security of any Series at any Office or Agency for such Series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Registered Securities of the same Series denominated as authorized in or pursuant to this Indenture, of a like aggregate principal amount bearing a number not contemporaneously outstanding and containing identical terms and provisions.

 

At the option of the Holder, certificated Securities (including Bearer Securities) and the right to receive the principal, premium and interest, if any, on any certificated Security may be transferred by a Holder by surrendering such certificate representing the certificated Securities at the Corporate Trust Office of the Trustee.  Such certificate representing the certificated Securities may be reissued by the Company or the Trustee to a new Holder or a new certificate representing the certificated Securities may be issued by the Company or the Trustee to a new Holder.

 

At the option of the Holder, Registered Securities of any Series may be exchanged for other Registered Securities of the same Series containing identical terms and provisions, in any authorized denominations, and of a like aggregate principal amount, upon surrender of the Securities to be exchanged at any Office or Agency for such Series.  Whenever any Registered Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Registered Securities that the Holder making the exchange is entitled to receive.

 

If provided in or pursuant to this Indenture, with respect to Securities of any Series, at the option of the Holder, Bearer Securities of such Series may be exchanged for Registered Securities of such Series containing identical terms, denominated as authorized in or pursuant to this Indenture and in the same aggregate principal amount, upon surrender of the Bearer Securities to be exchanged at any Office or Agency for such Series, with all unmatured

 

 

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Coupons and all matured Coupons in default thereto appertaining.  If the Holder of a Bearer Security is unable to produce any such unmatured Coupon or Coupons or matured Coupon or Coupons in default, such exchange may be effected if the Bearer Securities are accompanied by payment in funds acceptable to the Company and the Trustee in an amount equal to the face amount of such missing Coupon or Coupons, or the surrender of such missing Coupon or Coupons may be waived by the Company and the Trustee if there is furnished to them such security or indemnity as they may require to save each of them and any Paying Agent harmless.  If thereafter the Holder of such Bearer Security shall surrender to any Paying Agent any such missing Coupon in respect of which such a payment shall have been made, such Holder shall be entitled to receive the amount of such payment; provided, however, that, except as otherwise provided in Section 10.2, interest represented by Coupons shall be payable only upon presentation and surrender of those Coupons at an Office or Agency for such Series located outside the United States.  Notwithstanding the foregoing, in case a Bearer Security of any Series is surrendered at any such Office or Agency for such Series in exchange for a Registered Security of such Series and like tenor after the close of business at such Office or Agency on (i) any Regular Record Date and before the opening of business at such Office or Agency on the next succeeding Interest Payment Date, or (ii) any Special Record Date and before the opening of business at such Office or Agency on the related date for payment of Defaulted Interest, such Bearer Security shall be surrendered without the Coupon relating to such Interest Payment Date or proposed date of payment, as the case may be (or, if such Coupon is so surrendered with such Bearer Security, such Coupon shall be returned to the Person so surrendering the Bearer Security), and interest or Defaulted Interest, as the case may be, shall not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of the Registered Security issued in exchange for such Bearer Security, but shall be payable only to the Holder of such Coupon when due in accordance with the provisions of this Indenture.

 

If provided in or pursuant to this Indenture with respect to Securities of any Series, at the option of the Holder, Registered Securities of such Series may be exchanged for Bearer Securities upon such terms and conditions as may be provided in or pursuant to this Indenture with respect to such Series.

 

Whenever any Securities are surrendered for exchange as contemplated by the immediately preceding two paragraphs, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities that the Holder making the exchange is entitled to receive.

 

Notwithstanding the foregoing, except as otherwise provided in or pursuant to this Indenture, any global Security shall be exchangeable for certificated Securities only if (i) the Depository is at any time unwilling, unable or ineligible to continue as depository and a successor depository is not appointed by the Company within 90 days of the date the Company is so informed in writing or (ii) the Company, in its discretion, determines not to require all of the Securities of a Series to be represented by a global Security and notifies the Trustee of its decision by executing and delivering to the Trustee a Company Order to the effect that such global Security shall be so exchangeable.  If the beneficial owners of interests in a global Security are entitled to exchange such interests for definitive Securities as the result of an event described in clause (i) or (ii) of the preceding sentence, then without unnecessary delay but in any event not later than the earliest date on which such interests may be so exchanged, the

 

 

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Company shall deliver to the Trustee definitive Securities in such form and denominations as are required by or pursuant to this Indenture, and of the same Series, containing identical terms and in aggregate principal amount equal to the principal amount of such global Security, executed by the Company.  On or after the earliest date on which such interests may be so exchanged, such global Security shall be surrendered from time to time by the U.S. Depository or such other Depository as shall be specified in the Company Order with respect thereto, and in accordance with instructions given to the Trustee and the U.S. Depository or such other Depository, as the case may be (which instructions shall be in writing but need not be contained in or accompanied by an Officers’ Certificate or be accompanied by an Opinion of Counsel), as shall be specified in the Company Order with respect thereto to the Trustee, as the Company’s agent for such purpose, to be exchanged, in whole or in part, for definitive Securities as described above without charge.  The Trustee shall authenticate and make available for delivery, in exchange for each portion of such surrendered global Security, a like aggregate principal amount of definitive Securities of the same Series of authorized denominations and of like tenor as the portion of such global Security to be exchanged, which (unless such Securities are not issuable both as Bearer Securities and as Registered Securities, in which case the definitive Securities exchanged for the global Security shall be issuable only in the form in which the Securities are issuable, as provided in or pursuant to this Indenture) shall be in the form of Bearer Securities or Registered Securities, or any combination thereof, as shall be specified by the beneficial owner thereof, but subject to the satisfaction of any certification or other requirements to the issuance of Bearer Securities; provided, however, that (unless otherwise provided in or pursuant to this Indenture) no Bearer Security delivered in exchange for a portion of a global Security shall be mailed or otherwise delivered to any location in the United States.  Promptly following any such exchange in part, such global Security shall be returned by the Trustee to such Depository or the U.S. Depository, as the case may be, or such other Depository or U.S. Depository referred to above in accordance with the instructions of the Company referred to above.  If a Registered Security is issued in exchange for any portion of a global Security after the close of business at the Office or Agency for such Security where such exchange occurs on or after (i) any Regular Record Date for such Security and before the opening of business at such Office or Agency on the next succeeding Interest Payment Date, or (ii) any Special Record Date for such Security and before the opening of business at such Office or Agency on the related proposed date for payment of interest or Defaulted Interest, as the case may be, interest shall not be payable on such Interest Payment Date or proposed date for payment, as the case may be, in respect of such Registered Security, but shall be payable on such Interest Payment Date or proposed date for payment, as the case may be, only to the Person to whom interest in respect of such portion of such global Security shall be payable in accordance with the provisions of this Indenture.

 

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same debt and entitling the Holders thereof to the same benefits under this Indenture as the Securities surrendered upon such registration of transfer or exchange.

 

Every Registered Security presented or surrendered for registration of transfer or for exchange or redemption shall (if so required by the Company or the Security Registrar for such Security) be duly endorsed, or be accompanied by a written instrument of transfer in a form satisfactory to the Company and the Security Registrar for such Security duly executed by the Holder thereof or his attorney duly authorized in writing.

 

  

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No service charge shall be made for any registration of transfer or exchange, or redemption of Securities, but the Company may require payment of a sum sufficient to cover any stamp tax or other governmental charge and any other reasonable expenses (including fees and expenses of the Trustee) that may be imposed in connection with any registration of transfer or exchange of Securities, other than exchanges pursuant to Section 3.4, 3.6, 9.5 or 11.7 not involving any transfer.

 

Except as otherwise provided in or pursuant to this Indenture, the Company shall not be required (i) to register the transfer of or exchange Securities of any Series during a period beginning at the opening of business 15 days before the day the Company transmits a notice of redemption of Securities of the Series selected for redemption and ending at the close of business on the day of the transmission, or (ii) to register the transfer of or exchange any Security selected for redemption in whole or in part, except in the case of any Security to be redeemed in part, the portion thereof not to be redeemed, or (iii) to exchange any Bearer Security selected for redemption except, to the extent provided with respect to such Bearer Security, that such Bearer Security may be exchanged for a Registered Security of like tenor and the same Series, provided that such Registered Security shall be immediately surrendered for redemption with written instruction for payment consistent with the provisions of this Indenture or (iv) to issue, register the transfer of or exchange any Security which, in accordance with its terms, has been surrendered for repayment at the option of the Holder, except the portion, if any, of such Security not to be so repaid.

 

Section 3.6      Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Security or a Security with a mutilated Coupon appertaining to it is surrendered to the Trustee, subject to the provisions of this Section 3.6, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series containing identical terms and of like principal amount and bearing a number not contemporaneously outstanding, with Coupons appertaining thereto corresponding to the Coupons, if any, appertaining to the surrendered Security.

 

If there be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security or Coupon, and (ii) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless, then, in the absence of notice to the Company or the Trustee that such Security or Coupon has been acquired by a bona fide purchaser, the Company shall execute and, upon the Company’s request the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Security or in exchange for the Security to which a destroyed, lost or stolen Coupon appertains with all appurtenant Coupons not destroyed, lost or stolen, a new Security of the same Series containing identical terms and of like principal amount and bearing a number not contemporaneously outstanding, with Coupons appertaining thereto corresponding to the Coupons, if any, appertaining to such destroyed, lost or stolen Security or to the Security to which such destroyed, lost or stolen Coupon appertains.

 

Notwithstanding the foregoing provisions of this Section 3.6, in case any mutilated, destroyed, lost or stolen Security or Coupon has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such

 

 

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Security or Coupon; provided, however, that payment of principal of, and any premium or interest, if any, on any Bearer Securities shall, except as otherwise provided in Section 10.2, be payable only at an Office or Agency for such Securities located outside the United States.

 

Upon the issuance of any new Security under this Section 3.6, the Company may require the payment of a sum sufficient to cover any stamp tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Security, with any Coupons appertaining thereto issued pursuant to this Section 3.6 in lieu of any destroyed, lost or stolen Security, or in exchange for a Security to which a destroyed, lost or stolen Coupon appertains shall constitute a separate obligation of the Company, whether or not the destroyed, lost or stolen Security and Coupons appertaining thereto or the destroyed, lost or stolen Coupon shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of such Series and any Coupons, if any, duly issued hereunder.

 

The provisions of this Section 3.6, as amended or supplemented pursuant to this Indenture with respect to particular Securities or generally, shall be exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities or Coupons.

 

Section 3.7      Payment of Interest; Rights to Interest Preserved.

 

Unless otherwise provided in or pursuant to this Indenture, any interest on any Registered Security which shall be payable, and are punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name such Security (or one or more Predecessor Securities) is registered as of the close of business on the Regular Record Date for such interest.

 

Unless otherwise provided in or pursuant to this Indenture, any interest on any Registered Security which shall be payable, but shall not be punctually paid or duly provided for, on any Interest Payment Date for such Registered Security (herein called “Defaulted Interest”) shall forthwith cease to be payable to the Holder thereof on the relevant Regular Record Date by virtue of having been such Holder; and such Defaulted Interest may be paid by the Company as provided in clause (1) or (2) below:

 

(1)           The Company may elect to make payment of any Defaulted Interest to the Person in whose name such Registered Security (or a Predecessor Security thereof) shall be registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall be fixed by the Company in the following manner.  The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on such Registered Security, the Special Record Date therefor and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when so deposited to be held

 

  

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in trust for the benefit of the Person entitled to such Defaulted Interest as in this clause provided.  The Special Record Date for the payment of such Defaulted Interest shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after notification to the Trustee of the proposed payment.  The Trustee shall, in the name and at the expense of the Company, cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holder of such Registered Security (or a Predecessor Security thereof) at his address as it appears in the Security Register not less than 10 days prior to such Special Record Date.  The Trustee may, in its discretion, in the name and at the expense of the Company, cause a similar notice to be published at least once in an Authorized Newspaper of general circulation in the Borough of Manhattan, The City of New York, but such publication shall not be a condition precedent to the establishment of such Special Record Date.  Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Person in whose name such Registered Security (or a Predecessor Security thereof) shall be registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (2).

 

(2)           The Company may make payment of any Defaulted Interest in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Security may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such payment shall be deemed practicable by the Trustee.

 

Unless otherwise provided in or pursuant to this Indenture or the Securities of any particular Series pursuant to the provisions of this Indenture, at the option of the Company, interest on Registered Securities that bear interest may be paid at the office or agency of the Company maintained for such purposes in the Borough of Manhattan, City of New York, or by mailing a check to the address of the Person entitled thereto as such address shall appear in the Security Register or by transfer to an account maintained by the payee with a bank located in the United States.

 

Notwithstanding the foregoing, a holder of $1,000,000 or more in aggregate principal amount of Securities of any Series of global Securities (or its equivalent in a Foreign Currency, if the currency unit is a Foreign Currency), whether having identical or different terms and provisions, having the same interest payment dates will be entitled to receive interest payments, other than at Maturity, by wire transfer of immediately available funds if appropriate wire transfer instructions have been received in writing by the Trustee for the Securities of such Series at least 15 days prior to the applicable Interest Payment Date.  In addition to the foregoing, a holder of $1,000,000 or more in aggregate principal amount of Securities of any Series of global Securities (or its equivalent in a Foreign Currency, if the currency unit is a Foreign Currency), whether having identical or different terms and provisions, having the same Maturity will be entitled to receive payment at Maturity by wire transfer of immediately available funds if appropriate wire transfer instructions have been received in writing by the Trustee for the Securities of such Series at least 15 days prior to Maturity; provided; however, that such payments shall be made subject to applicable laws and regulations and only after

 

 

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surrender of the global Securities to the Company, the corporate trust office or the Paying Agent, for such global Securities not later than one Business Day prior to Maturity.  Any wire instructions received by the Trustee for the Securities of such Series shall remain in effect until revoked by the Holder.

 

Subject to the foregoing provisions of this Section 3.7 and Section 3.5, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

 

In the case of any Registered Security of any Series that is convertible into other securities of the Company or exchangeable into Common Stock of the Parent, which Registered Security is converted or exchanged after any Regular Record Date and on or prior to the next succeeding Interest Payment Date (other than any Registered Security with respect to which the Stated Maturity is prior to such Interest Payment Date), interest with respect to which the Stated Maturity is on such Interest Payment Date shall be payable on such Interest Payment Date notwithstanding such conversion or exchange, and such interest (whether or not punctually paid or duly provided for) shall be paid to the Person in whose name that Registered Security (or one or more predecessor Registered Securities) is registered at the close of business on such Regular Record Date.  Except as otherwise expressly provided in the immediately preceding sentence, in the case of any Registered Security which is converted or exchanged, interest with respect to which the Stated Maturity is after the date of conversion or exchange of such Registered Security shall not be payable.

 

Section 3.8      Persons Deemed Owners.

 

Prior to due presentment of a Registered Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such Registered Security is registered in the Security Register as the owner of such Registered Security for the purpose of receiving payment of principal of, and any premium or (subject to Sections 3.5 and 3.7) interest, if any, on such Registered Security and for all other purposes whatsoever, whether or not any payment with respect to such Registered Security shall be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected by notice to the contrary.

 

The Company, the Trustee and any agent of the Company or the Trustee may treat the bearer of any Bearer Security or the bearer of any Coupon as the absolute owner of such Security or Coupon for the purpose of receiving payment thereof or on account thereof and for all other purposes whatsoever, whether or not any payment with respect to such Security or Coupon shall be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected by notice to the contrary.

 

No Holder of any beneficial interest in any global Security held on its behalf by a Depository shall have any rights under this Indenture with respect to such global Security, and such Depository may be treated by the Company, the Trustee, and any agent of the Company or the Trustee as the owner of such global Security for all purposes whatsoever.  None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any responsibility or

 

 

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liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

 

Section 3.9      Cancellation.

 

All Securities and Coupons surrendered for payment, redemption, registration of transfer, exchange or conversion or for credit against any sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee, and any such Securities and Coupons, as well as Securities and Coupons surrendered directly to the Trustee for any such purpose, shall be cancelled promptly by the Trustee.  The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be cancelled promptly by the Trustee.  No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by or pursuant to this Indenture.  All cancelled Securities and Coupons held by the Trustee shall be destroyed by the Trustee, unless by a Company Order, the Company directs their return to it.

 

Section 3.10      Computation of Interest.

 

Except as otherwise provided in or pursuant to this Indenture or in any Security, interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

 

ARTICLE 4

 

SATISFACTION AND DISCHARGE OF INDENTURE; DEFEASANCE AND COVENANT DEFEASANCE

 

Section 4.1      Satisfaction and Discharge.

 

This Indenture will be discharged and will cease to be of further effect with respect to any Series of Securities, when:

 

(1) either:

 

(a) all Securities of such Series that have been authenticated and all Coupons appertaining thereto (other than Coupons appertaining to Bearer Securities of such Series surrendered in exchange for Registered Securities of such Series and maturing after such exchange whose surrender is not required or has been waived as provided in Section 3.5), except lost, stolen or destroyed Securities and Coupons of such Series that have been replaced or paid and Securities and Coupons of such Series for whose payment money has theretofore been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or

 

(b) all Securities of such Series and, in the case of (i) or (ii) of this subclause (b) below, any Coupons appertaining thereto have not been delivered to the Trustee for cancellation 

 

 

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(x) have become due and payable by reason of the mailing of a notice of redemption or otherwise, (y) will become due and payable within one year, or (z) 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 Company’s name and at the Company’s expense, and in each such case the Company or any Guarantor has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders, cash in the Currency in which such Securities are payable in an amount sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on such Securities and any Coupons appertaining thereto not delivered to the Trustee for cancellation for principal of (and premium, if any), and interest, if any, to the date of such deposit (in the case of Securities which have become due and payable) or to the Maturity thereof;

 

(2) no Default or Event of Default has occurred and is continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit) and the deposit will not result in a breach or violation of, or constitute a Default under, any other instrument to which the Company or any Guarantor is a party or by which the Company or any Guarantor is bound;

 

(3) the Company or any Guarantor has paid or caused to be paid all sums payable by it under this Indenture with respect to the Outstanding Securities of such Series and any Coupons appertaining thereto; and

 

(4) the Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of such Securities and any Coupons appertaining thereto at date of such deposit (in the case of Securities which have become due and payable) or to the Maturity thereof.

 

In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge of this Indenture as to such Series have been satisfied.

 

In the event there are Securities of two or more Series hereunder, the Trustee shall be required to execute an instrument acknowledging satisfaction and discharge of this Indenture only if requested to do so with respect to Securities of such Series as to which it is Trustee and if the other conditions thereto are met.

 

Notwithstanding the satisfaction and discharge of this Indenture with respect to any Series of Securities, if money has been deposited with the Trustee pursuant to subclause (b) of clause (1) of this Section, the provisions of Sections 3.5, 3.6, 10.2 and 10.3 hereof with respect to the Securities of each Series, and with respect to any rights to convert such Securities into securities of the Company or to exchange such Securities into Common Stock of the Parent, will survive. In addition, nothing in this Section will be deemed to discharge those provisions of Section 6.6 hereof, that, by their terms, survive the resignation and removal of the Trustee and the satisfaction and discharge of this Indenture as to such Series.

 

Section 4.2      Defeasance and Covenant Defeasance.

 

  

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(1)           Unless pursuant to Section 3.1, either or both of (i) defeasance of the Securities of or within a Series under clause (2) of this Section 4.2 shall not be applicable with respect to the Securities of such Series or (ii) covenant defeasance of the Securities of or within a Series under clause (3) of this Section 4.2 shall not be applicable with respect to the Securities of such Series, then such provisions, together with the other provisions of this Section 4.2 (with such modifications thereto as may be specified pursuant to Section 3.1 with respect to any Securities), shall be applicable to such Securities and any Coupons appertaining thereto, and the Company may at its option by Board Resolution set forth in an Officers’ Certificate at any time, with respect to such Securities and any Coupons appertaining thereto, elect to have Section 4.2(2) or Section 4.2(3) be applied to such Outstanding Securities and any Coupons appertaining thereto upon compliance with the conditions set forth below in this Section 4.2.

 

(2)           Upon the Company’s exercise of the above option applicable to this Section 4.2(2) with respect to any Securities of or within a Series, the Company and each of the Guarantors will, subject to the satisfaction of the conditions set forth in clause (4) of this Section 4.2, be deemed to have been discharged from their obligations with respect to all outstanding such Outstanding Securities and any Coupons appertaining thereto (including the Security Guarantees) on the date the conditions set forth below are satisfied (hereinafter, “defeasance”). For this purpose, such defeasance means that the Company and the Guarantors will be deemed to have paid and discharged the entire Indebtedness represented by such Outstanding Securities and any Coupons appertaining thereto (including the Security Guarantees), which will thereafter be deemed to be “Outstanding” only for the purposes of clause (5) of this Section 4.2 and the other Sections of this Indenture referred to in clauses (1) and (2) below, and to have satisfied all their other obligations under such Securities, Security Guarantees and any Coupons appertaining thereto, and this Indenture insofar as such Securities and any Coupons appertaining thereto are concerned (and the Trustee, on written demand of and at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder: (1) the rights of Holders of such Outstanding Securities and any Coupons appertaining thereto to receive payments in respect of the principal of (and premium, if any), and interest, if any, on such Securities and any Coupons appertaining thereto when such payments are due from the trust referred to in Section 4.2(4) hereof; (2) the Company’s obligations with respect to such Securities under Article 3 and Sections 10.2 and 10.3, and with respect to any rights to convert such Securities into other securities of the Company or to exchange such Securities into Common Stock of the Parent; (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company’s and the Guarantors’ obligations in connection therewith; and (4) this Section 4.2.

 

Subject to compliance with this Section 4.2, the Company may exercise its option under this Section 4.2(2) notwithstanding the prior exercise of its option under clause (3) of this Section 4.2 with respect to such Securities and any Coupons appertaining thereto.

 

(3)           Upon the Company’s exercise of the option to have this Section 4.2(3) apply with respect to any Securities of or within a Series, the Company and each of the Guarantors will, subject to the satisfaction of the conditions set forth in Section 4.2(4), be released from each of their obligations under the covenants contained in Section 10.4 and, to the extent specified pursuant to Section 3.1, any other covenant applicable to such Securities, with

 

 

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respect to such Outstanding Securities and any Coupons appertaining thereto, on and after the date the conditions set forth in clause (4) of this Section 4.2 are satisfied (hereinafter, “covenant defeasance”), and such Securities and any Coupons appertaining thereto will 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 will continue to be deemed “Outstanding” for all other purposes hereunder (it being understood that such Securities and any Coupons appertaining thereto will not be deemed Outstanding for accounting purposes).  For this purpose, covenant defeasance means that, with respect to the Outstanding Securities, any Coupons appertaining thereto and Security Guarantees, the Company and the Guarantors may omit to comply with and will 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 will not constitute a Default or an Event of Default under Section 5.1(4) or 5.1(6), but, except as specified above, the remainder of this Indenture and such Securities, Coupons appertaining thereto and Security Guarantees will be unaffected thereby. In addition, upon the Company’s exercise under Section 4.2(1) of the option applicable to this Section 4.2(3), subject to the satisfaction of the conditions set forth in this Section 4.2, Sections 5.1(4), 5.1(6) and, to the extent specified pursuant to Section 3.1, any other Event of Default applicable to Securities of such Series with respect to such Outstanding Securities and any Coupons appertaining thereto, will not constitute Events of Default.

 

(4)           In order to exercise either defeasance or covenant defeasance under either clause (2) or (3) of this Section 4.2 with respect to any Outstanding Securities of or within a Series and any Coupons appertaining thereto:

 

(a)           The Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of such Securities and any Coupons appertaining thereto, cash in (1) an amount in Dollars or in such Foreign Currency in which such Securities and any Coupons appertaining thereto are then specified as payable at Stated Maturity, or (2) Government Obligations applicable to such Securities and Coupons appertaining thereto (determined on the basis of the Currency in which such Securities and Coupons appertaining thereto are then specified as payable at Stated Maturity) which through the scheduled payment of principal and interest in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment of principal of (and premium, if any) and interest, if any, on such Securities and any Coupons appertaining thereto, money in an amount, or (3) a combination thereof, in each case, in such amounts as will be sufficient, in the opinion of a nationally recognized investment bank, appraisal firm, or firm of Independent Public Accountants, to pay (x) the principal of (and premium, if any), and interest, if any, on such Outstanding Securities and any Coupons appertaining thereto at the Stated Maturity of such principal or installment of principal of (and premium, if any), and interest, if any, or on the applicable redemption date, as the case may be, and the Company must specify whether such Securities are being defeased to such Stated Maturity or to a particular redemption date and (y) any mandatory sinking fund payments or analogous payments applicable to such Outstanding Securities and any Coupons appertaining thereto on the days on which such payments are due and payable in accordance with the terms of this Indenture and of such Securities and

 

  

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any Coupons appertaining thereto.  provided, that notwithstanding the foregoing, with respect to any Securities which shall at the time be listed for trading on the New York Stock Exchange, there shall be no deposit of funds in cash and/or in Government Obligations with the Trustee to pay the principal amount, the redemption price or any installment of interest in order to discharge the Company’s obligations in respect of such payment if, at such time, the rules of the New York Stock Exchange prohibit such deposit with the Trustee.

 

(b)           In the case of an election under clause (2) of this Section 4.2, the Company must deliver to the Trustee an Opinion of Counsel confirming that (A) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (B) since the date of this Indenture, 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 Securities and any Coupons appertaining thereto will not recognize income, gain or loss for federal income tax purposes as a result of such 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 defeasance had not occurred.

 

(c)           In the case of an election under clause (3) of this Section 4.2, the Company must deliver to the Trustee an Opinion of Counsel confirming that the Holders of such Outstanding Securities and any Coupons appertaining thereto 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 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.

 

(d)           No Event of Default or Default which with notice or lapse of time or both would become an Event of Default with respect to such Securities and any Coupons appertaining thereto shall have occurred and be continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit).

 

(e)           Such 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 Parent or any of its subsidiaries is a party or by which the Parent or any of its subsidiaries is bound.

 

(f)           The Company must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the Company with the intent of preferring the Holders of such Outstanding Securities and any Coupons appertaining thereto over the other creditors of the Company with the intent of defeating, hindering, delaying or defrauding any creditors of the Company or others.

 

(g)           The Company must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the

 

 

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defeasance or the covenant defeasance under clause (2) or (3) of this Section 4.2 (as the case may be) have been complied with.

 

(h)           Notwithstanding any other provisions of this Section 4.2(4), such defeasance or covenant defeasance shall be effected in compliance with any additional or substitute terms, conditions or limitations which may be imposed on the Company in connection therewith pursuant to Section 3.1.

 

(5)           Unless otherwise specified in or pursuant to this Indenture or any Security, if, after a deposit referred to in Section 4.2(4)(a) has been made, (a) the Holder of a Security in respect of which such deposit was made is entitled to, and does, elect pursuant to Section 3.1 or the terms of such Security to receive payment in a Currency other than that in which the deposit pursuant to Section 4.2(4)(a) has been made in respect of such Security, or (b) a Conversion Event occurs in respect of the Foreign Currency in which the deposit pursuant to Section 4.2(4)(a) has been made, the indebtedness represented by such Security and any Coupons appertaining thereto shall be deemed to have been, and will be, fully discharged and satisfied through the payment of the principal of (and premium, if any), and interest, if any, on, such Security as the same becomes due out of the proceeds yielded by converting (from time to time as specified below in the case of any such election) the amount or other property deposited in respect of such Security into the Currency in which such Security becomes payable as a result of such election or Conversion Event based on (x) in the case of payments made pursuant to clause (a) above, the applicable market exchange rate for such Currency in effect on the second Business Day prior to each payment date, or (y) with respect to a Conversion Event, the applicable market exchange rate for such Foreign Currency in effect (as nearly as feasible) at the time of the Conversion Event.

 

Section 4.3      Application of Trust Money.

 

(1)           Subject to Section 10.3, all money and non-callable Government Obligations (including the proceeds thereof) (or other property as may be provided pursuant to Section 3.1) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 4.3, the “Trustee”) pursuant to Section 4.2 hereof in respect of any Outstanding Securities of any Series and any Coupons appertaining thereto will be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and any Coupons appertaining thereto and this Indenture, to the payment, either directly or through any Paying Agent (including the Company or any Subsidiary of the Parent acting as Paying Agent) as the Trustee may determine, to the Holders of such Securities and any Coupons appertaining thereto of all sums due and to become due thereon in respect of principal of (and premium, if any), and interest, if any, but such money need not be segregated from other funds except to the extent required by law.

 

(2)           The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable Government Obligations deposited pursuant to Section 4.2 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of such Outstanding Securities and any Coupons appertaining thereto.

 

  

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(3)           Notwithstanding anything in this Article 4 to the contrary, the Trustee will deliver or pay to the Company from time to time upon the request of the Company any money or non-callable Government Obligations held by it as provided in Section 4.2(4) hereof 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 4.2(4)(a) hereof), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent defeasance or covenant defeasance, as applicable, in accordance with Section 4.2.

 

Section 4.4      Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any money or Government Obligations in accordance with Section 4.2(4) by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company’s and the Guarantors’ obligations under this Indenture and the Securities of the applicable Series issued hereunder and the Security Guarantees will be revived and reinstated as though no deposit had occurred pursuant to Section 4.2(4) until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 4.2(4); provided, however, that, if the Company makes any payment of principal of (and premium, if any), and interest, if any, on, any Securities and any Coupons appertaining thereto following the reinstatement of its obligations, the Company will be subrogated to the rights of the Holders of the Securities of the applicable Series to receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE 5

 

REMEDIES

 

Section 5.1      Events of Default.

 

Each of the following is an “Event of Default”, unless such event is specifically deleted or modified in or pursuant to the supplemental indenture establishing the terms of such Series pursuant to this Indenture:

 

(1)           default for 30 days in the payment when due of interest on any Security of such Series;

 

(2)           default in the payment when due (whether at maturity, upon redemption or otherwise) of the principal of (and premium, if any) on, any Security of such Series,

 

(3)           default in the deposit of any sinking fund or analogous payment when and as due by the terms of a Security of such Series; or

 

(4)           failure by the Company, the Parent or any other Guarantor for 60 days after notice to the Parent by the Trustee or the Holders of at least 25% in aggregate principal amount of the Outstanding Securities of that Series voting as a single class to comply with any of the agreements in this Indenture with respect to any Security of that Series (other than a covenant or agreement a default in whose performance or whose

 

 

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breach is elsewhere in this Section specifically dealt with and other than a covenant or agreement included in this Indenture solely for the benefit of another Series of Securities); or

 

(5)           the Company, Parent or any Significant Subsidiary 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,

 

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

 

(e)           generally is not paying its debts as they become due; or

 

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

 

(a)           is for relief against the Company, the Parent or any Significant Subsidiary in an involuntary case;

 

(b)           appoints a custodian of the Company, the Parent or any Significant Subsidiary or for all or substantially all of the property of the Company, the Parent or any Significant Subsidiary; or

 

(c)           orders the liquidation of the Company, the Parent or any Significant Subsidiary; and the order or decree remains unstayed and in effect for 60 consecutive days; or

 

(7)           except as permitted by this Indenture or pursuant to the supplemental indenture establishing the terms of such Series pursuant to this Indenture, any Security Guarantee with respect to such Series is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor that is a Significant Subsidiary (or any group of Guarantors that, taken together, would constitute a Significant Subsidiary), or any Person acting on behalf of any such Guarantor, denies or disaffirm its obligations under such Security Guarantee;

 

(8)           any other Event of Default provided in or pursuant to this Indenture with respect to Securities of such Series.

 

Section 5.2      Acceleration.

 

In the case of an Event of Default specified in clause (5) or (6) of Section 5.1 hereof, with respect to the Company, the Parent, any Significant Subsidiary, all outstanding

 

 

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Securities will become due and payable immediately without further action or notice. If any other Event of Default occurs and is continuing, the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of such Series (or such lesser amount as may be provided for in the Securities of such Series) may declare all Securities of such Series to be due and payable immediately by notice in writing to the Company specifying the Event of Default.

 

Upon any such declaration, the Securities of such Series shall become due and payable immediately. The Holders of a majority in aggregate principal amount of the Outstanding Securities of such Series by written notice to the Trustee may, on behalf of all of the Holders of such Series, rescind an acceleration and its consequences, if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal of (and premium, if any), and interest, if any, that has become due solely because of the acceleration) have been cured or waived.

 

Section 5.3      Other Remedies.

 

If an Event of Default with respect to Securities of any Series occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of (and premium, if any), and interest, if any, on the Securities of such Series and any Coupons appertaining or to enforce the performance of any provision of such Securities or this Indenture.

 

The Trustee may maintain a proceeding even if it does not possess any of the Securities or Coupons or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder of any Security or Coupon 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 5.4      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 the Holders of Securities or any Coupons appertaining thereto allowed in any judicial proceedings relative to the Company (or any other obligor upon the Securities), its creditors or its 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 of Securities or any Coupons to make such payments to the Trustee, and in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due 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 6.6 hereof. 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 6.6 hereof 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

 

 

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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 of a Security or any Coupon any plan of reorganization, arrangement, adjustment or composition affecting the Securities or Coupons or the rights of any Holder thereof 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 5.5      Collection Suit by Trustee.

 

If an Event of Default specified in Section 5.1(1) or (2) hereof occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as trustee of an express trust against the Parent for the whole amount of principal of (and premium, if any), and interest, if any, remaining unpaid on, the Securities of such Series and interest on overdue principal and, to the extent lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

 

Section 5.6      Priorities.

 

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

 

(1)           First:           to the Trustee, its agents and attorneys for amounts due under Section 6.6 hereof, including payment of all reasonable compensation, expenses and liabilities incurred, and all advances made, by the Trustee and the reasonable costs and expenses of collection;

 

(2)           Second:  to Holders of Securities of the applicable Series and any Coupons for amounts due and unpaid on the Securities of such Series and any Coupons for principal and any premium and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities of such securities and Coupons for principal and any premium and interest, respectively; and

 

(3)           Third:  to the Company 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 of Securities and any Coupons pursuant to this Section 5.6.

 

Section 5.7      Limitations on Suits.

 

Except as set forth in Section 5.8, a Holder of any Security of any Series or any Coupons appertaining thereto may pursue a remedy with respect to this Indenture or the Security of such Series only if:

 

(1)           such Holder gives to the Trustee written notice that an Event of Default is continuing with respect to Securities of such Series;

 

  

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(2)           Holders of at least 25.0% in aggregate principal amount of the Outstanding Securities of such Series make a written request to the Trustee to pursue the remedy;

 

(3)           such Holder or Holders offer and, if requested, provide to the Trustee security or indemnity reasonably satisfactory to the Trustee against any loss, damage, liability, cost or expense, including reasonable attorneys’ fees;

 

(4)           the Trustee does not comply with the request within 60 days after receipt of the request and the offer of security or indemnity; and

 

(5)           during such 60-day period, Holders of a majority in aggregate principal amount of the Outstanding Securities of such Series do not give the Trustee a direction inconsistent with such request.

 

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

 

Section 5.8      Rights of Holders of Securities to Receive Payment.

 

Notwithstanding any other provision of this Indenture, the right of any the Holder of any Security or Coupon to receive payment of the principal of, any premium and (subject to Sections 3.7) interest, or any sinking fund payment, if applicable, on such Security or payment of such Coupon, as the case may be, on the respective Stated Maturity or Maturities therefor specified in such Security or Coupon (or, in the case of redemption, on the Redemption Date or, in the case of repayment at the option of such Holder if provided in or pursuant to this Indenture, on the date such repayment is due), 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 5.9      Control by Majority.

 

Holders of a majority in aggregate principal amount of the Outstanding Securities 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 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 unduly prejudicial to the rights of other Holders of Securities of such Series or that may involve the Trustee in personal liability. The Trustee may withhold from Holders of Securities of such Series notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal or interest, if any) if it determines that withholding notice is in their interest.

 

Section 5.10      Waiver of Past Defaults.

 

Holders of not less than a majority in principal amount of the Outstanding Securities of any Series by notice to the Trustee may on behalf of the Holders of all the Securities of such Series and any Coupons appertaining thereto rescind an acceleration or waive an existing Default or Event of Default and its consequences hereunder, except a continuing

 

 

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Default or Event of Default in the payment of the principal of (and premium, if any), and interest, if any, on, or any sinking fund payment, if applicable, on any Security of such Series or any Coupons appertaining thereto (including in connection with an offer to purchase) and in respect of a covenant or provision hereof which under Article 9 cannot be modified or amended without the consent of the Holder of each Outstanding Security of such Series affected; provided, however, that the Holders of a majority in aggregate principal amount of the Outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration, of such Series. Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom with respect to such Series shall be deemed to have been cured for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 5.11      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, 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 5.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 5.8 or for the enforcement of the right, if any, to convert or exchange any Security into other securities in accordance with its terms, or a suit by Holders of more than 10% in aggregate principal amount of Outstanding Securities of any Series.

 

ARTICLE 6

 

THE TRUSTEE

 

Section 6.1      Certain Rights of Trustee.

 

Subject to Sections 315(a) through 315(d) of the Trust Indenture Act:

 

(1)           The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, coupon or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties.

 

(2)           Any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order (other than delivery of any Security, together with any Coupons appertaining thereto, to the Trustee for authentication and delivery pursuant to Section 3.3 which shall be sufficiently evidenced as provided therein) and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution.

 

(3)           Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any

 

 

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action hereunder, the Trustee (unless other evidence shall be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon a Board Resolution, an Opinion of Counsel or an Officers’ Certificate.

 

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

 

(5)           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 the Holders of Securities of any Series or any related Coupons pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

 

(6)           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, coupon or other paper or document.

 

(7)           The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

 

(8)           The Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture.

 

(9)           The Trustee shall not be charged with knowledge of any Default or Event of Default with respect to the Securities of any Series unless either (1) such Default or Event of Default is known, or ought reasonably to have been known, by a Responsible Officer of the Trustee or (2) written notice of such Default or Event of Default shall have been given to the Trustee by the Company or any other obligor on the Securities of any Series or by any Holder of the Securities of any Series.

 

(10)           The Trustee shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

 

Section 6.2      Notice of Defaults.

 

Within 90 days after the occurrence of any Default hereunder with respect to the Securities of any Series, the Trustee shall transmit by mail to all Holders of Securities of such Series entitled to receive reports pursuant to Section 7.3, notice of such Default hereunder

 

 

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actually known to a Responsible Officer of the Trustee, unless such Default shall have been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of (or premium, if any), or interest, if any, on, or any sinking fund or purchase fund installment with respect to, any Security of such Series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the best interest of the Holders of Securities and Coupons of such Series; and provided, further, that in the case of any Default of the character specified in Sections 5.1(4) with respect to Securities of such Series, no such notice to Holders shall be given until such Default shall have become an Event of Default with respect to Securities of such Series.

 

Section 6.3      Not Responsible for Recitals or Issuance of Securities.

 

The recitals contained herein and in the Securities, except the Trustee’s certificate of authentication, and in any Coupons shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities or Coupons, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true and accurate, subject to the qualifications set forth therein.  Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof.

 

Section 6.4      May Hold Securities.

 

The Trustee, any Paying Agent, Security Registrar, Authenticating Agent or any other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and Coupons and, subject to Trust Indenture Act Sections 310(b) and 311, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar, Authenticating Agent or such other agent.

 

Section 6.5      Money Held in Trust.

 

Except as provided in Section 4.3 and Section 10.3, money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law and shall be held uninvested.  The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed to in writing with the Company.

 

Section 6.6      Compensation and Reimbursement.

 

The Company agrees:

 

(1)           to pay to the Trustee from time to time such compensation for all services rendered by it hereunder as the Company and the Trustee shall from time to time agree in writing (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust).

 

  

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(2)           except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith.

 

(3)           to indemnify each of the Trustee and any predecessor Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its own part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder, except to the extent that any such loss, liability or expense was due to the Trustee’s negligence or bad faith.

 

As security for the performance of the obligations of the Company under this Section, the Trustee for the Securities of any Series shall have a claim prior to the Securities of such Series upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (or premium, if any) or interest, if any, on Securities or any Coupons of such Series.

 

To the extent permitted by law, any compensation or expense incurred by the Trustee after a Default specified in or pursuant to Section 5.1 is intended to constitute an expense of administration under any then applicable bankruptcy or insolvency law.  “Trustee” for purposes of this Section 6.6 shall include any predecessor Trustee but the negligence or bad faith of any Trustee shall not affect the rights of any other Trustee under this Section 6.6.

 

The provisions of this Section 6.6 shall survive the satisfaction and discharge of this Indenture or the earlier resignation or removal of the Trustee and shall apply with equal force and effect to the Trustee in its capacity as Authenticating Agent, Paying Agent or Security Registrar.

 

Section 6.7      Corporate Trustee Required; Eligibility.

 

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, any state thereof or the District of Columbia, that is eligible under Section 310(a)(1) of the Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act and that has a combined capital and surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000, and that is subject to supervision or examination by Federal or state authority.  If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

 

Section 6.8      Resignation and Removal; Appointment of Successor.

 

(1)           No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee pursuant to Section 6.9.

 

  

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(2)           The Trustee may resign at any time with respect to the Securities of one or more Series by giving written notice thereof to the Company.  If the instrument of acceptance by a successor Trustee required by Section 6.9 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to such Series.

 

(3)           The Trustee may be removed at any time with respect to the Securities of any Series by Act of the Holders of a majority in principal amount of the Outstanding Securities of such Series, delivered to the Trustee and the Company.

 

(4)           If at any time:

 

(a)           the Trustee shall fail to comply with the obligations imposed upon it under Section 310(b) of the Trust Indenture Act with respect to Securities of any Series after written request therefor by the Company or any Holder of a Security of such Series who has been a bona fide Holder of a Security of such Series for at least six months, or

 

(b)           the Trustee shall cease to be eligible under Section 6.7 and shall fail to resign after written request therefor by the Company or any such Holder, or

 

(c)           the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation

 

then, in any such case, (i) the Company, by or pursuant to a Board Resolution, may remove the Trustee with respect to all Securities or the Securities of such Series, or (ii) subject to Section 315(e) of the Trust Indenture Act, any Holder of a Security who has been a bona fide Holder of a Security of such Series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities of such Series and the appointment of a successor Trustee or Trustees.

 

(5)           If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more Series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of such Series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such Series and that at any time there shall be only one Trustee with respect to the Securities of any particular Series) and shall comply with the applicable requirements of Section 6.9.  If, within one year after such resignation, removal or incapacity, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any Series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such Series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with the applicable requirements of Section 6.9, become the successor Trustee with respect to the

 

 

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Securities of such Series and to that extent supersede the successor Trustee appointed by the Company.  If no successor Trustee with respect to the Securities of any Series shall have been so appointed within three months after such appointment might have been made hereunder by the Company or the Holders of Securities and accepted appointment in the manner required by Section 6.9, any Holder of a Security who has been a bona fide Holder of a Security of such Series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such Series.

 

(6)           The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any Series and each appointment of a successor Trustee with respect to the Securities of any Series by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Registered Securities, if any, of such Series as their names and addresses appear in the Security Register and, if Securities of such Series are issued as Bearer Securities, by publishing notice of such event once in an Authorized Newspaper in each Place of Payment located outside the United States.  Each notice shall include the name of the successor Trustee with respect to the Securities of such Series and the address of its Corporate Trust Office.

 

(7)           In no event shall any retiring Trustee be liable for the acts or omissions of any successor Trustee hereunder.

 

Section 6.9      Acceptance of Appointment by Successor.

 

(1)           Upon the appointment hereunder of any successor Trustee with respect to all Securities, such successor Trustee so appointed shall execute, acknowledge and deliver to the Company and the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties hereunder of the retiring Trustee; but, on the request of the Company or such successor Trustee or the Holders of at least 10% in principal amount of the applicable Series of Securities then Outstanding, such retiring Trustee, upon payment of its charges, shall execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and, subject to Section 10.3, shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder, subject nevertheless to its claim, if any, provided for in Section 6.6.

 

(2)           Upon the appointment hereunder of any successor Trustee with respect to the Securities of one or more (but not all) Series, the Company, the retiring Trustee and such successor Trustee shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, such successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those Series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those Series as to which the retiring

 

 

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Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust, that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee and that no Trustee shall be responsible for any notice given to, or received by, or any act or failure to act on the part of any other Trustee hereunder, and, upon the execution and delivery of such supplemental indenture, the resignation or removal of the retiring Trustee shall become effective to the extent provided therein, such retiring Trustee shall have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested in the Trustee under this Indenture with respect to the Securities of that or those Series to which the appointment of such successor Trustee relates other than as hereinafter expressly set forth, and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those Series to which the appointment of such successor Trustee relates; but, on request of the Company or such successor Trustee, such retiring Trustee, upon payment of its charges with respect to the Securities of that or those Series to which the appointment of such successor Trustee relates and subject to Section 10.3 shall duly assign, transfer and deliver to such successor Trustee, to the extent contemplated by such supplemental indenture, the property and money held by such retiring Trustee hereunder with respect to the Securities of that or those Series to which the appointment of such successor Trustee relates, subject to its claim, if any, provided for in Section 6.6.

 

(3)           Upon request of any Person appointed hereunder as a successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in paragraph (1) or (2) of this Section, as the case may be.

 

(4)           No Person shall accept its appointment hereunder as a successor Trustee unless at the time of such acceptance such successor Person shall be qualified and eligible under this Article.

 

Section 6.10      Merger, Conversion, Consolidation or Succession to Business.

 

Any Corporation into which, the Trustee may be merged or converted or with which it may be consolidated, or any Corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, shall be the successor of the Trustee hereunder, without the execution or filing of any paper or any further act on the part of any of the parties hereto, provided, that such Corporation shall be otherwise qualified and eligible under this Article 6.  In case any Securities shall have been authenticated but not delivered by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities.

 

  

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Section 6.11      Appointment of Authenticating Agent.

 

The Trustee may appoint one or more Authenticating Agents acceptable to the Company with respect to one or more Series of Securities, and which shall be authorized to act on behalf of the Trustee to authenticate Securities of that or those Series issued upon original issue, exchange, registration of transfer, partial redemption or partial repayment or pursuant to Section 3.6, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder.  Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent.

 

Each Authenticating Agent must be acceptable to the Company and, except as provided in or pursuant to this Indenture, shall at all times be a corporation that would be permitted by the Trust Indenture Act to act as trustee under an indenture qualified under the Trust Indenture Act, is authorized under applicable law and by its charter to act as an Authenticating Agent and has a combined capital and surplus (computed in accordance with Section 310(a)(2) of the Trust Indenture Act) of at least $50,000,000.  If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect specified in this Section.

 

Any Corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any Corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any Corporation succeeding to all or substantially all of the corporate agency or corporate trust business of an Authenticating Agent, shall be the successor of such Authenticating Agent hereunder, provided such Corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

 

An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and the Company.  The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and the Company.  Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall (i) mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Registered Securities, if any, of the Series with respect to which such Authenticating Agent shall serve, as their names and addresses appear in the Security Register, and (ii) if Securities of the Series are issued as Bearer Securities, publish notice of such appointment at least once in an Authorized Newspaper in the place where such successor Authenticating Agent has its principal office if such office is located outside the United States.  Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent.  No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

 

  

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The Company agrees to pay each Authenticating Agent from time to time reasonable compensation for its services under this Section.  If the Trustee makes such payments, it shall be entitled to be reimbursed for such payments, subject to the provisions of Section 6.6.

 

If an Authenticating Agent is appointed with respect to one or more Series of Securities pursuant to this Section, the Securities of such Series may have endorsed thereon, in addition to or in lieu of the Trustee’s certificate of authentication, an alternate certificate of authentication in substantially the following form:

 

This is one of the Securities of the Series designated herein referred to in the within-mentioned Indenture.

 

 

	 	 	 	 ,
	 	 	as Trustee	 
	 	 	 	 
	 	 	 	 
	
 

	
By

	 	 
	 	 	as Authenticating Agent	 
	 	 	 	 
	 	 	 	 
	 	By	 	 
	 	 	as Officer	 

 

If all of the Securities of any Series may not be originally issued at one time, and if the Trustee does not have an office capable of authenticating Securities upon original issuance located in a Place of Payment where the Company wishes to have Securities of such Series authenticated upon original issuance, the Trustee, if so requested in writing (which writing need not be accompanied by or contained in an Officers’ Certificate by the Company), shall appoint in accordance with this Section an Authenticating Agent having an office in a Place of Payment designated by the Company with respect to such Series of Securities.

 

Section 6.12      Appointment of Attorney-in-Fact.

 

The Trustee for each Series of Securities is hereby appointed, and each and every Holder of Securities of such Series, by receiving and holding the same, shall be conclusively deemed to have appointed such Trustee, the true and lawful attorney-in-fact of such Holder, with authority to make or file (whether or not the Company shall be in default in respect of the payment of the principal of, or premium or interest, if any, on any of the Securities of such Series), in its own name as trustee of an express trust or otherwise as it shall deem advisable, in any receivership, insolvency, liquidation, bankruptcy, reorganization, or other judicial proceedings relative to the Company or any other obligor upon such Securities or to their respective creditors or property, any and all claims, proofs of claim, proofs of debt, petitions, consents, other papers and documents, and amendments of any thereof, as may be necessary or advisable in order to have the claims of the Trustee and of the Holders of such Securities allowed in any such proceeding and to collect and receive any moneys or other property payable or deliverable on any such claim, and to execute and deliver any and all other papers and documents and to do and perform any and all other acts and things, as it may deem necessary or advisable in order to enforce in any such proceedings any of the claims of such Trustee and of

 

  

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any of such Holders in respect of any of the Securities of such Series; and any receiver, assignee, custodian, trustee, or debtor in any such proceedings is hereby authorized, and each and every Holder of the Securities of such Series, by receiving and holding the same, shall be conclusively deemed to have authorized any such receiver, assignee, custodian, trustee, or debtor, to make any such payment or delivery to or on the order of such Trustee, and, in the event that such Trustee shall consent to the making of such payments or deliveries directly to the Holders of the Securities of such Series, to pay to such Trustee any amount due it for compensation and expenses, including counsel fees and expenses, incurred by it down to the date of such payment or delivery; provided, however, that nothing herein contained shall be deemed to authorize or empower such Trustee to consent to or accept or adopt, on behalf of any Holder of Securities of such Series, any plan of reorganization or readjustment of the Company affecting the Securities of such Series or the rights of any Holder thereof, or to authorize or empower such Trustee to vote in respect of the claim of any Holder of any Securities of such Series in any such proceedings.

 

ARTICLE 7

 

HOLDERS LISTS AND REPORTS BY TRUSTEE

 

Section 7.1      Holder Lists.

 

The Trustee will 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 Trust Indenture Act Section 312(a). If the Trustee is not the Security Registrar, the Company will 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 the Holders of Securities of each Series and the Company shall otherwise comply with Trust Indenture Act Section 312(a).

 

Section 7.2      Preservation of Information; Communications to Holders.

 

The Trustee shall comply with the obligations imposed upon it pursuant to Section 312 of the Trust Indenture Act.

 

Every Holder of Securities or Coupons, by receiving and holding the same, agrees with the Company and the Trustee that none of the Company, the Trustee, any Paying Agent or any Security Registrar shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders of Securities in accordance with Section 312(c) of the Trust Indenture Act, regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 312(b) of the Trust Indenture Act.

 

Section 7.3      Reports by Trustee.

 

(1)           Within 60 days after each ____________ beginning with the ___________ following the first issuance of Securities pursuant to Section 3.1, and for so long as Securities remain outstanding, the Trustee will mail to the Holders of the Outstanding Securities

 

 

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of each Series a brief report dated as of such reporting date that complies with Trust Indenture Act Section 313(a) (but if no event described in Trust Indenture Act Section 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted). The Trustee also will comply with Trust Indenture Act Section 313(b)(2). The Trustee will also transmit by mail all reports as required by Trust Indenture Act Section 313(c).

 

(2)           A copy of each report at the time of its mailing to the Holders of Securities will be mailed by the Trustee to the Company and filed by the Trustee with the Commission and each stock exchange on which the Securities of each Series are listed in accordance with Trust Indenture Act Section 313(d). The Company will promptly notify the Trustee when the Securities of each Series are listed on any stock exchange.

 

ARTICLE 8

 

SUCCESSORS

 

Section 8.1      Merger, Consolidation, or Sale of Assets.

 

The Parent shall not, directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Parent is the surviving corporation); (2) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Parent and its Subsidiaries taken as a whole, in one or a series of related transactions, to another Person; or (3) permit any of the other Guarantor (whether or not such Guarantor is the surviving entity) to enter into any such transactions or a series of such transactions under clause (1) or (2) above which, in the aggregate, would result in a sale, assignment, transfer, conveyance or other disposition of all or substantially all of the properties and assets of the Parent and the other Guarantors taken as a whole, unless:

 

(1)           Either:

 

(a)           the Parent or such other Guarantor is the surviving corporation; or

 

(b)           the Person formed by or surviving any such consolidation or merger (if other than the Parent or such other Guarantor) or to which such sale, assignment, transfer, conveyance or other disposition has been made is organized or existing under the laws of the United States, any state of the United States or the District of Columbia;

 

(2)           the Person formed by or surviving any such consolidation or merger (if other than the Parent or such other Guarantor) or the Person to which such sale, assignment, transfer, conveyance or other disposition has been made assumes all the obligations of the Parent or such other Guarantor under all Securities and this Indenture pursuant to agreements reasonably satisfactory to the Trustee; and

 

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

 

The Company shall not, directly or indirectly: (1) consolidate or merge with or into another Person (whether or not the Company is the surviving corporation); or (2) sell,

 

 

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assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company in one or a series of related transactions, to another Person, unless:

 

(1)           Either:

 

(a)           the Company is the surviving corporation; or

 

(b)           the Person formed by or surviving any such consolidation or merger (if other than the Company) or to which such sale, assignment, transfer, conveyance or other disposition has been made is organized or existing under the laws of the United States, any state of the United States or the District of Columbia; provided that in the case when such entity is not a corporation, a co-obligor of all Securities is a corporation organized or existing under the laws of the United States, any state of the United States or the District of Columbia.

 

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

 

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

 

This Section 8.1 will not apply to:

 

(1) a merger of the Parent or the Company with an Affiliate solely for the purpose of reincorporating the Parent or the Company in another jurisdiction; or

 

(2) any consolidation or merger or any sale, assignment, transfer, conveyance or other disposition of assets between or among the Parent or the Company and the Parent’s Subsidiaries.

 

Section 8.2      Successor Person Substituted for Company.

 

Upon any consolidation or merger, or any sale, assignment, transfer, conveyance or other disposition of all or substantially all of the properties or assets of the Company in a transaction that is subject to, and that complies with the provisions of, Section 8.1 hereof, the successor Person formed by such consolidation or into or with which the Company is merged or to which such sale, assignment, transfer, conveyance or other disposition is made shall succeed to, and be substituted for (so that from and after the date of such consolidation, merger, sale, assignment, transfer, conveyance or other disposition, the provisions of this Indenture referring to the “Company” shall refer instead to the successor Person and not to the Company), and may exercise every right and power of the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein; provided, however, that the predecessor Company shall not be relieved from the obligation to pay the principal of and interest on the Securities and the Coupons except in the case of a sale, assignment, transfer, conveyance or other disposition of all of the Company’s

 

 

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assets in a transaction that is subject to, and that complies with the provisions of, Section 8.1 hereof.

 

ARTICLE 9

 

SUPPLEMENTAL INDENTURES

 

Section 9.1      Supplemental Indentures without Consent of Holders.

 

Notwithstanding Section 9.2 of this Indenture, the Company, the Guarantors and the Trustee may amend or supplement this Indenture or the Securities or the Security Guarantees without the consent of any Holder of Securities:

 

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

 

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

 

(3)           to add to or change any of the provisions of this Indenture to provide that Bearer Securities may be registrable as to principal, to change or eliminate any restrictions on the payment of principal of, any premium or interest on, Securities, to permit Bearer Securities to be issued in exchange for Registered Securities, to permit Bearer Securities to be exchanged for Bearer Securities of other authorized denominations or to permit or facilitate the issuance of Securities in uncertificated form, provided any such action shall not adversely affect the interests of the Holders of Outstanding Securities of any Series or any Coupons appertaining thereto in any material respect

 

(4)           to provide for the assumption of the Company’s or a Guarantor’s obligations to the Holders of the Securities and Security Guarantees by a successor to the Company or such Guarantor pursuant to Article 8 or Article 16 hereof;

 

(5)           to make any change that would provide any additional rights or benefits to the Holders of all or any Series of Securities (as shall be specified in such supplemental indenture or indentures) or that does not materially adversely affect the legal rights hereunder of any Holder;

 

(6)           to comply with requirements of the Commission in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act;

 

(7)           to conform the text of this Indenture, the Security Guarantees or the Securities of any Series or any Coupons appertaining thereto to any provision of the “Description of Notes” section of the Company’s prospectus or prospectus supplement relating to the offering of the Securities of such Series, to the extent that such provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of this Indenture, the Security Guarantees or the Securities of such Series or any Coupons appertaining thereto;

 

  

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(8)           to release a Guarantor from its obligations under its Security Guarantee or this Indenture in accordance with Section 16.4 hereof;

 

(9)           to secure the Securities of any Series and/or the Security Guarantees;

 

(10)           to evidence and provide for the acceptance of appointment by a successor trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 6.9;

 

(11)           to allow any Guarantor to execute a supplemental indenture and/or a Security Guarantee with respect to the Securities of any Series;

 

(12)           to comply with the provisions described under Section 8.1 hereof;

 

(13)           to establish the form or terms of Securities of any Series and any related Coupons as permitted by Sections 2.1 and 3.1, including the provisions and procedures relating to Securities convertible into any securities of the Company or exchangeable into Common Stock of the Parent;

 

(14)           to add any additional Events of Default with respect to all or any Series of Securities (as shall be specified in such supplemental indenture);

 

(15)           to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any Series of Securities pursuant to Article 4, provided that any such action shall not adversely affect the interests of any Holder of an Outstanding Security of such Series and any Coupons appertaining thereto or any other Outstanding Security or Coupon in any material respect;

 

(16)           to amend or supplement any provision contained herein or in any supplemental indenture, provided that no such amendment or supplement shall materially adversely affect the interests of the Holders of any Securities then Outstanding.

 

Upon the request of the Company accompanied by a Board Resolution authorizing the execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the other documents described in Section 1.2 hereof, the Trustee will join with the Company and the Guarantors 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 will 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 9.2      Supplemental Indentures with Consent of Holders.

 

Except as provided below in this Section 9.2, by Act of said Holders delivered to the Company and the Trustee, the Company and the Trustee may amend or supplement this Indenture and the Securities of any Series and the Security Guarantees with the consent of the

 

 

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Holders of at least a majority in aggregate principal amount of the Outstanding Securities of all Series affected by such supplemental indenture voting as a single class (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Securities), and, subject to Sections 5.8 and 5.10 hereof, any existing Default or Event of Default (other than a Default or Event of Default in the payment of the principal of (and premium, if any), and interest, if any, on the Security of such Series or any Coupons appertaining thereto, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture or the Security of such Series or any Coupons appertaining thereto or the Security Guarantees may be waived with the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of such Series affected voting as a single class (including, without limitation, consents obtained in connection with a tender offer or exchange offer for, or purchase of, the Securities).

 

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to consent to any supplemental indenture hereto. If a record date is fixed, the Holders on such record date, or its duly designated proxies, and only such Persons, shall be entitled to consent to such supplemental indenture, whether or not such Holders remain Holders after such record date; provided that unless such consent shall have become effective by virtue of the requisite percentage having been obtained prior to the date which is 90 days after such record date, any such consent previously given shall automatically and without further action by any Holder be cancelled and of no further effect.

 

Upon the written request of the Company accompanied by a Board Resolution 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 Securities as aforesaid, and upon receipt by the Trustee of the documents described in Section 6.1 hereof, the Trustee will join with the Company and the Guarantors 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 will not be obligated to, enter into such amended or supplemental Indenture. As evidence of the consent of the Holders of the Securities, the Trustee may conclusively rely upon the written consents of such Holders of the requisite percentage in principal amount of the Outstanding Securities or an Officer’s Certificate of the Company.

 

In computing whether the Holders of the requisite principal amount of Outstanding Securities have taken action under this Indenture or under a supplemental indenture hereto, the Company shall use:  (i) for an Original Issue Discount Security, the amount of the principal that would be due and payable as of that date, as if the Maturity of such Security had been accelerated due to a default; and (ii) for a Security denominated in a Foreign Currency or Currencies, the Dollar equivalent of the outstanding principal amount as of that date, using the exchange rate in effect on the date of original issuance of such Security.

 

A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture, which shall have been included expressly and solely for the benefit of one or more particular Series of Securities, or which modifies the rights of the Holders of Securities of such Series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other Series.

 

  

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It shall not be necessary for any Act of Holders of Securities under this Section 9.2 to approve the particular form of any proposed amendment, supplement or waiver, but it is be sufficient if such Act shall approve the substance thereof.

 

Without the consent of each Holder affected, an amendment, supplement or waiver under this Section 9.2 may not (with respect to any Securities held by a non-consenting Holder):

 

(1)           reduce the principal amount of  Outstanding Securities of any Series whose Holders must consent to an amendment, supplement or waiver, or reduce the requirements of Section 15.4 for quorum or voting;

 

(2)           change the Stated Maturity of the principal of, or any premium or installment of interest on, any Security, or reduce the principal amount thereof or the rate (or modify the calculation of such rate) of interest thereon, or any premium payable upon the redemption thereof or otherwise, or reduce the amount of the principal of an Original Issue Discount Security that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2 or the amount thereof provable in bankruptcy pursuant to Section 5.4;

 

(3)           change the redemption provisions or adversely affect the right of repayment at the option of any Holder as contemplated by Article 13;

 

(4)           change the Place of Payment or Currency in which the principal of, any premium or interest on, any Security is payable;

 

(5)           impair the right to institute suit for the enforcement of any such payment on or with respect to the Securities or the Security Guarantees on or after the Stated Maturity thereof (or, in the case of redemption, on or after the Redemption Date or, in the case of repayment at the option of the Holder, on or after the date for repayment);

 

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

 

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

 

(8)           release any Guarantor from any of its obligations under its Security Guarantee or this Indenture, except in accordance with the terms of this Indenture;

 

(9)           make any change that adversely affects the right to convert any Security into or for securities of the Company, cash or property or to exchange any Security into Common Stock of the Parent in accordance with its terms; or

 

(10)           make any change in the preceding amendment and waiver provisions.

 

  

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Section 9.3      Trustee to Sign Amendments, etc.

 

The Trustee will 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 Company may not sign an amended or supplemental indenture until the Board of Directors of the Company approves it.  In executing any amended or supplemental indenture, the Trustee will be entitled to receive and (subject to Section 6.1 hereof) will be fully protected in relying upon, in addition to the documents required by Section 1.2 hereof, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental indenture is authorized or permitted by this Indenture.

 

Section 9.4      Conformity with Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the Securities will be set forth in an amended or supplemental indenture that complies with the Trust Indenture Act as then in effect.

 

Section 9.5      Notice of Supplemental Indenture.

 

After an amendment, supplement or waiver under Section 9.2 becomes effective, the Company will mail to the Holders of Outstanding Securities of any Series affected thereby a notice briefly describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, will not, however, in any way impair or affect the validity of any such amended or supplemental indenture or waiver.

 

Section 9.6      Revocation and Effect of Consents.

 

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

 

ARTICLE 10

 

COVENANTS

 

Section 10.1      Payment of Securities.

 

The Company will pay or cause to be paid the principal of, premium, if any, and interest, if any, on, the Securities of each Series on the dates and in the manner provided in the Securities.  Principal of, and any premium or interest, if any, will be considered paid on the date due if the Paying Agent, if other than the Company or a Subsidiary of the Parent, holds as of 10:00 a.m. Eastern Time on the due date money deposited by the Company in immediately

 

 

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available funds and designated for and sufficient to pay all principal of, and any premium or interest, if any, then due.

 

The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal at the interest rate on the Securities to the extent lawful; it will 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 10.2      Maintenance of Office or Agency.

 

The Company will maintain in each Place of Payment for any Series of Securities an Office or Agency (which may be an office of the Trustee or an affiliate of the Trustee, Security Registrar or co-registrar) where Securities of such Series (but not Bearer Securities, except as otherwise provided below, unless such Place of Payment is located outside the United States)  may be surrendered for registration of transfer or for exchange, where Securities of such Series that are convertible or exchangeable may be surrendered for conversion or exchange, as the case may be, and where notices and demands to or upon the Company in respect of the Securities of such Series relating thereto and this Indenture may be served.  If Securities of a Series are issuable as Bearer Securities, the Company shall maintain, subject to any laws or regulations applicable thereto, an Office or Agency in a Place of Payment for such Series which is located outside the United States where Securities of such Series and any Coupons appertaining thereto may be presented and surrendered for payment; provided, however, that if the Securities of such Series are listed on The International Stock Exchange of the United Kingdom and the Republic of Ireland or the Luxembourg Stock Exchange, or any other stock exchange located outside the United States, and such stock exchange shall so require, the Company shall maintain a Paying Agent in London, Luxembourg or any other required city located outside the United States, as the case may be, so long as the Securities of such Series are listed on such exchange.  The Company will 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 Company fails to maintain any such required office or agency or fails 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, except that Bearer Securities of such Series and any Coupons appertaining thereto may be presented and surrendered for payment at the place specified for the purpose with respect to such Securities as provided in or pursuant to this Indenture, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

 

Except as otherwise provided in or pursuant to this Indenture, no payment of principal, premium or interest with respect to Bearer Securities shall be made at any Office or Agency in the United States or by check mailed to any address in the United States or by transfer to an account maintained with a bank located in the United States; provided, however, if amounts owing with respect to any Bearer Securities shall be payable in Dollars, payment of principal of, any premium or interest on, any such Security may be made at the Corporate Trust Office of the Trustee or any Office or Agency designated by the Company in the Borough of Manhattan, The City of New York, if (but only if) payment of the full amount of such principal, premium or interest at all offices outside the United States maintained for such purpose by the Company in 

 

 

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accordance with this Indenture is illegal or effectively precluded by exchange controls or other similar restrictions, and the Company has delivered to the Trustee an Opinion of Counsel to that effect.

 

The Company may also from time to time designate one or more other Offices or Agencies where the Securities of one or more Series 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 will in any manner relieve the Company of its obligation to maintain an Office or Agency in each Place of Payment for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other Office or Agency.

 

Unless otherwise provided in or pursuant to this Indenture, the Company hereby designates as the Place of Payment for each Series of Securities the Borough of Manhattan, The City of New York, and initially appoint the Corporate Trust Office of the Trustee as the Office or Agency of the Company in the Borough of Manhattan, The City of New York for such purpose.  The Company may subsequently appoint a different Office or Agency in the Borough of Manhattan, The City of New York for the Securities of any Series.

 

Unless otherwise specified with respect to any Securities pursuant to Section 3.1, if and so long as the Securities of any Series (i) are denominated in a Foreign Currency or (ii) may be payable in a Foreign Currency, or so long as it is required under any other provision of this Indenture, then the Company will maintain with respect to each such Series of Securities, or as so required, at least one exchange rate agent.

 

Section 10.3      Money for Securities Payments to Be Held in Trust.

 

If the Company or any Subsidiary of the Parent shall at any time act as its own Paying Agent, with respect to any Series of Securities, it shall, on or before each due date of the principal of, any premium or interest on, any of the Securities of such Series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum in the currency or currencies, currency unit or units or composite currency or currencies in which the Securities of such Series are payable (except as otherwise specified pursuant to Section 3.1 for the Securities of such Series) sufficient to pay the principal or any premium or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided, and shall promptly notify the Trustee of its action or failure so to act.

 

Whenever the Company shall have one or more Paying Agents for any Series of Securities, it shall, no later than 11:00 am on or prior to each due date of the principal of, any premium or interest on, any Securities of such Series, deposit with any Paying Agent a sum (in the currency or currencies, currency unit or units or composite currency or currencies described in the preceding paragraph) sufficient to pay the principal or any premium or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled thereto, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.

 

  

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The Company shall cause each Paying Agent for any Series of Securities other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent shall:

 

(1)           hold all sums held by it for the payment of the principal of, any premium or interest on, Securities of such Series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as provided in or pursuant to this Indenture;

 

(2)           give the Trustee notice of any default by the Company (or any other obligor upon the Securities of such Series) in the making of any payment of principal, any premium or interest on, Securities of such Series; and

 

(3)           at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

 

The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be held by the Trustee upon the same terms as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such sums.

 

Except as otherwise provided herein or pursuant hereto, any money deposited with the Trustee or any Paying Agent, or then held by the Company or any Subsidiary of the Parent, in trust for the payment of the principal of, any premium or interest on, any Security of any Series or any Coupon appertaining thereto and remaining unclaimed for two years after such principal or any such premium or interest has become due and payable shall be paid to the Company on Company Request or (if then held by the Company or any Subsidiary of the Parent) will be discharged from such trust; and the Holder of such Security or any Coupon appertaining thereto will thereafter be permitted to look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, will 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 Company cause to be published once, in an Authorized Newspaper in each Place of Payment for such Series, notice that such money remains unclaimed and that, after a date specified therein, which will not be less than 30 days from the date of such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Company.

 

Section 10.4      Reports.

 

The Parent, pursuant to Section 314(a) of the Trust Indenture Act, shall:

 

(1)           file with the Trustee, within 15 days after the Parent is required to file the same with the Commission, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the

 

 

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Commission may from time to time by rules and regulations prescribe) which the Parent may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Parent is not required to file information, documents or reports pursuant to either of said Sections, then it shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations;

 

(2)           file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Parent with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

 

(3)           transmit to the Holders of Securities within 30 days after the filing thereof with the Trustee, in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act, such summaries of any information, documents and reports required to be filed by the Parent, pursuant to paragraphs (1) and (2) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.

 

Section 10.5      Corporate Existence.

 

Subject to Article 8, the Company and the Parent shall do or cause to be done all things necessary to preserve and keep in full force and effect:

 

(1)           its corporate existence, and the corporate, partnership or other existence of each of its Subsidiaries, in accordance with the respective organizational documents (as the same may be amended from time to time) of the Company or each such Subsidiary; and

 

(2)           the rights (charter and statutory), licenses and franchises of the Company and its Subsidiaries;

 

provided, however, that the Company shall not be required to preserve any such right, license or franchise, or the corporate, partnership or other existence of any of its Subsidiaries, if with respect to the Company or any Subsidiary, the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company, the Parent and its Subsidiaries, taken as a whole, and that the loss thereof is not adverse in any material respect to any Holder.

 

Section 10.6      Compliance Certificate.

 

(1)           The Company and each Guarantor (to the extent that such Guarantor is so required under the Trust Indenture Act) shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officers’ Certificate stating that:

 

  

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(a)           a review of the activities of the Company and the Parent’s Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture,

 

(b)           to the best of his or her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default has occurred, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Company is taking or proposes to take with respect thereto), and

 

(c)           to the best of his or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of or interest, if any, on any of the Securities is prohibited or if such event has occurred, a description of the event and what action the Company is taking or proposes to take with respect thereto.

 

(2)           So long as any of the Securities are outstanding, the Company will deliver to the Trustee within five business days of any Officer becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

Section 10.7      Taxes.

 

The Company will pay, and the Parent will cause each of its Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Securities.

 

Section 10.8      Stay, Extension and Usury Laws.

 

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

 

  

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ARTICLE 11

 

REDEMPTION OF SECURITIES

 

Section 11.1      Applicability of Article.

 

Redemption of Securities of any Series at the option of the Company as permitted or required by the terms of such Securities shall be made in accordance with the terms of such Securities and (except as otherwise provided herein or pursuant hereto) this Article.

 

Section 11.2      Election to Redeem; Notice to Trustee.

 

The election of the Company to redeem any Securities shall be evidenced by or pursuant to a Board Resolution.  In case of any redemption at the election of the Company of (a) less than all of the Securities of any Series or (b) all of the Securities of any Series, with the same issue date, interest rate or formula, Stated Maturity and other terms, the Company shall, at least 30 days but not more than 75 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date, the Redemption Price, of the principal amount of Securities of such Series to be redeemed and the clause of the supplemental indenture establishing the terms of such Series pursuant to this Indenture pursuant to which the redemption shall occur.

 

Section 11.3      Selection by Trustee of Securities to be Redeemed.

 

If less than all of the Securities of any Series with the same issue date, interest rate or formula, Stated Maturity and other terms are to be redeemed, the particular Securities to be redeemed shall be selected not less than 30 nor more than 60 days prior to the Redemption Date by the Trustee from the Outstanding Securities of such Series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions of the principal amount of Registered Securities of such Series; provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Registered Security of such Series not redeemed to less than the minimum denomination for a Security of such Series established herein or pursuant hereto.

 

The Trustee shall promptly notify the Company and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

 

For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Securities redeemed or to be redeemed only in part, to the portion of the principal of such Securities which has been or is to be redeemed.

 

Unless otherwise specified in or pursuant to this Indenture or the Securities of any Series, if any Security selected for partial redemption is converted into other securities of the Company in part or exchanged into Common Stock of the Parent in part before termination of the conversion or exchange right with respect to the portion of the Security so selected, the converted or exchanged portion of such Security shall be deemed (so far as may be) to be the

 

 

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portion selected for redemption.  Securities which have been converted or exchanged during a selection of Securities to be redeemed shall be treated by the Trustee as Outstanding for the purpose of such selection.

 

Section 11.4      Notice of Redemption.

 

Notice of redemption shall be given in the manner provided in Section 1.6, not less than 30 nor more than 60 days prior to the Redemption Date, unless a shorter period is specified in the Securities to be redeemed, to the Holders of Securities to be redeemed.  Failure to give notice by mailing in the manner herein provided to the Holder of any Registered Securities designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other Securities or portion thereof.

 

Any notice that is mailed to the Holder of any Registered Securities in the manner herein provided shall be conclusively presumed to have been duly given, whether or not such Holder receives the notice.

 

All notices of redemption shall state:

 

(1)           the Redemption Date,

 

(2)           the Redemption Price,

 

(3)           the clause of the supplemental indenture establishing the terms of such Series pursuant to this Indenture pursuant to which the redemption shall occur

 

(4)           if less than all Outstanding Securities of any Series are to be redeemed, the identification (and, in the case of partial redemption, the principal amount) of the particular Security or Securities to be redeemed,

 

(5)           in case any Security is to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date, upon surrender of such Security, the Holder of such Security will receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed,

 

(6)           that, on the Redemption Date, the Redemption Price shall become due and payable upon each such Security or portion thereof to be redeemed, and, if applicable, that interest thereon shall cease to accrue on and after said date,

 

(7)           the place or places where such Securities, together (in the case of Bearer Securities) with all Coupons appertaining thereto, if any, maturing after the Redemption Date, are to be surrendered for payment of the Redemption Price and any accrued interest,

 

(8)           that the redemption is for a sinking fund, if such is the case,

 

  

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(9)           that, unless otherwise specified in such notice, Bearer Securities of any Series, if any, surrendered for redemption must be accompanied by all Coupons maturing subsequent to the date fixed for redemption or the amount of any such missing Coupon or Coupons will be deducted from the Redemption Price, unless security or indemnity satisfactory to the Company, the Trustee and any Paying Agent is furnished,

 

(10)           if Bearer Securities of any Series are to be redeemed and no Registered Securities of such Series are to be redeemed, and if such Bearer Securities may be exchanged for Registered Securities not subject to redemption on the Redemption Date pursuant to Section 3.5 or otherwise,

 

(11)            the last date, as determined by the Company, on which such exchanges may be made, in the case of Securities of any Series that are convertible into other securities of the Company or exchangeable into Common Stock of the Parent, the conversion or exchange price or rate, the date or dates on which the right to convert or exchange the principal of the Securities of such Series to be redeemed will commence or terminate and the place or places where such Securities may be surrendered for conversion or exchange, and

 

(12)           the CUSIP number or the Euroclear or Cedel reference numbers of such Securities, if any (or any other numbers used by a Depository to identify such Securities) and that no representation is made as to the correctness or accuracy of such numbers listed in such notice or printed on such Securities.

 

A notice of redemption published as contemplated by Section 1.6 need not identify particular Registered Securities to be redeemed.

 

Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of the Company.

 

Section 11.5      Deposit of Redemption Price.

 

One Business Day prior to any Redemption Date, the Company shall deposit, with respect to the Securities of any Series called for redemption pursuant to Section 11.4, with the Trustee or with a Paying Agent (or, if the Company or any Subsidiary of the Parent is acting as Paying Agent, segregate and hold in trust as provided in Section 10.3) an amount of money in the applicable Currency sufficient to pay the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date, unless otherwise specified pursuant to Section 3.1 or in the Securities of such Series) any accrued interest on, all such Securities or portions thereof which are to be redeemed on that date.

 

Section 11.6      Securities Payable on Redemption Date.

 

Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified, and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest) such Securities shall cease to bear interest and the

 

 

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Coupons for such interest appertaining to any Bearer Securities so to be redeemed, except to the extent provided below, shall be void.  Upon surrender of any such Security for redemption in accordance with said notice, together with all Coupons, if any, appertaining thereto maturing after the Redemption Date, such Security shall be paid by the Company at the Redemption Price, together with any accrued interest to the Redemption Date; provided, however, that, except as otherwise provided in or pursuant to this Indenture or the Bearer Securities of such Series, installments of interest on Bearer Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable only upon presentation and surrender of Coupons for such interest (at an Office or Agency located outside the United States except as otherwise provided in Section 10.2), and provided, further, that, except as otherwise specified in or pursuant to this Indenture or the Registered Securities of such Series, installments of interest on Registered Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the Regular Record Dates therefor according to their terms and the provisions of Section 3.7.

 

If any Bearer Security surrendered for redemption shall not be accompanied by all appurtenant Coupons maturing after the Redemption Date, such Security may be paid after deducting from the Redemption Price an amount equal to the face amount of all such missing Coupons, or the surrender of such missing Coupon or Coupons may be waived by the Company and the Trustee if there be furnished to them such security or indemnity as they may require to save each of them and any Paying Agent harmless.  If thereafter the Holder of such Security shall surrender to the Trustee or any Paying Agent any such missing Coupon in respect of which a deduction shall have been made from the Redemption Price, such Holder shall be entitled to receive the amount so deducted; provided, however, that any interest represented by Coupons shall be payable only upon presentation and surrender of those Coupons at an Office or Agency for such Security located outside of the United States except as otherwise provided in Section 10.2.

 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal and any premium until paid, shall bear interest from the Redemption Date at the rate prescribed therefor in the Security.

 

Section 11.7      Securities Redeemed in Part.

 

Any Registered Security which is to be redeemed only in part shall be surrendered at any Office or Agency for such Security (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Registered Security or Securities of the same Series, containing identical terms and provisions, of any authorized denomination as requested by such Holder in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered.  If a Security in global form is so surrendered, the Company shall execute, and the Trustee shall authenticate and deliver to the U.S. Depository or other Depository for such Security in global form as shall be specified in the Company Order with respect thereto to the Trustee, without service charge, a new Security in global form in a

 

 

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denomination equal to and in exchange for the unredeemed portion of the principal of the Security in global form so surrendered.

 

Section 11.8      Cancellation and Destruction of Securities.

 

All Securities redeemed and paid pursuant to the provisions of this Article 11 shall be cancelled and destroyed, as provided in Section 3.9, and, except in the case of partial redemption of any Security, no Security shall be issued under this Indenture in lieu thereof.

 

ARTICLE 12

 

SINKING FUNDS

 

Section 12.1      Applicability of Article.

 

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

 

The minimum amount of any sinking fund payment provided for by the terms of Securities of any Series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment”.  If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 12.2.  Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of Securities of such Series and this Indenture.

 

Section 12.2      Satisfaction of Sinking Fund Payments with Securities.

 

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver Outstanding Securities of such Series (other than any of such Securities previously called for redemption or any of such Securities in respect of which cash shall have been released to the Company), together in the case of any Bearer Securities of such Series with all unmatured Coupons appertaining thereto, and (2) apply as a credit Securities of such Series which have been redeemed either at the election of the Company pursuant to the terms of such Series of Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities, provided that such Series of Securities have not been previously so credited.  Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.  If, as a result of the delivery or credit of Securities of any Series in lieu of cash payments pursuant to this Section 12.2, the principal amount of Securities of such Series to be redeemed in order to satisfy the remaining sinking fund payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon Company Request, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall at the request of the Company

 

 

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from time to time pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment requested to be released to the Company.

 

Section 12.3      Redemption of Securities for Sinking Fund.

 

Not less than 75 days prior to each sinking fund payment date for any Series of Securities, the Company shall deliver to the Trustee an Officers’ Certificate specifying the amount of the next, ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 12.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and will also deliver to the Trustee any Securities to be so credited and not theretofore delivered.  If such Officers’ Certificate shall specify an optional amount to be added in cash to the next ensuing mandatory sinking fund payment, the Company shall thereupon be obligated to pay the amount therein specified.  Not less than 60 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 11.3 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 11.4.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 11.6 and 11.7.

 

ARTICLE 13

 

REPAYMENT AT THE OPTION OF HOLDERS

 

Section 13.1      Applicability of Article.

 

Securities of any Series which are repayable at the option of the Holders thereof before their Stated Maturity shall be repaid in accordance with the terms of the Securities of such Series.  The repayment of any principal amount of Securities pursuant to such option of the Holder to require repayment of Securities before their Stated Maturity, for purposes of Section 3.9, shall not operate as a payment, redemption or satisfaction of the Indebtedness represented by such Securities unless and until the Company, at its option, shall deliver or surrender the same to the Trustee with a directive that such Securities be cancelled.  Notwithstanding anything to the contrary contained in this Section 13.1, in connection with any repayment of Securities, the Company may arrange for the purchase of any Securities by an agreement with one or more investment bankers or other purchasers to purchase such Securities by paying to the Holders of such Securities on or before the close of business on the repayment date an amount not less than the repayment price payable by the Company on repayment of such Securities, and the obligation of the Company to pay the repayment price of such Securities shall be satisfied and discharged to the extent such payment is so paid by such purchasers.

 

  

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ARTICLE 14

 

SECURITIES IN FOREIGN CURRENCIES

 

Section 14.1      Applicability of Article.

 

Whenever this Indenture provides for (1) any action by, or the determination of any of the rights of, Holders of Securities of any Series in which not all of such Securities are denominated in the same Currency, or (ii) any distribution to Holders of Securities, in the absence of any provision to the contrary in the form of Security of any particular Series or pursuant to this Indenture or the Securities, any amount in respect of any Security denominated in a Currency other than Dollars shall be treated for any such action or distribution as that amount of Dollars that could be obtained for such amount on such reasonable basis of exchange and as of the record date with respect to Registered Securities of such Series (if any) for such action, determination of rights or distribution (or, if there shall be no applicable record date, such other date reasonably proximate to the date of such action, determination of rights or distribution) as the Company may specify in a written notice to the Trustee.

 

ARTICLE 15

 

MEETINGS OF HOLDERS OF SECURITIES

 

Section 15.1      Purposes for Which Meetings May Be Called.

 

A meeting of Holders of Securities of any Series may be called at any time and from time to time pursuant to this Article, to make, give or take any request, demand, authorization, direction, notice, consent, waiver or other Act provided by this Indenture or under applicable law, to be made, given or taken by Holders of Securities of such Series.

 

Section 15.2      Call, Notice and Place of Meetings.

 

(1)           The Trustee may at any time call a meeting of Holders of Securities of any Series for any purpose specified in Section 15.1, to be held at such time and at such place in the Borough of Manhattan, The City of New York, or, if Securities of such Series have been issued in whole or in part as Bearer Securities, in London or in such place outside the United States as the Trustee shall determine.  Notice of every meeting of Holders of Securities of any Series, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given, in the manner provided in Section 1.6, not less than 21 nor more than 180 days prior to the date fixed for the meeting.

 

(2)           In case at any time the Company (by or pursuant to a Board Resolution) or the Holders of at least 10% in principal amount of the Outstanding Securities of any Series or all Series shall have requested the Trustee to call a meeting of the Holders of Securities of such Series or all Series, respectively, for any purpose specified in Section 15.1, by written request setting forth in reasonable detail the action proposed to be taken at the meeting, and the Trustee shall not have mailed notice of or made the first publication of the notice of such meeting within 21 days after receipt of such request (whichever shall be required pursuant to Section 1.6) or shall not thereafter proceed to cause the meeting to be held as provided herein, then the

 

 

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Company or the Holders of Securities of such Series in the amount above specified, as the case may be, may determine the time and the place in the Borough of Manhattan, The City of New York, or, if Securities of such Series are to be issued as Bearer Securities, in London for such meeting and may call such meeting for such purposes by giving notice thereof as provided in clause (1) of this Section.

 

Section 15.3      Persons Entitled to Vote at Meetings.

 

To be entitled to vote at any meeting of Holders of Securities of any Series, a Person shall be (1) a Holder of one or more Outstanding Securities of such Series, or (2) a Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Securities of such Series by such Holder or Holders.  The only Persons who shall be entitled to be present or to speak at any meeting of Holders of Securities of any Series shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel, and any representatives of the Company and its counsel.

 

Section 15.4      Quorum; Action.

 

The Persons entitled to vote a majority in aggregate principal amount of the Outstanding Securities of the relevant Series shall constitute a quorum for any meeting of Holders of Securities of such Series.  In the absence of a quorum within 30 minutes after the time appointed for any such meeting, the meeting shall, if convened at the request of Holders of Securities of such Series, be dissolved.  In any other case the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting.  In the absence of a quorum at any reconvened meeting, such reconvened meeting may be further adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such reconvened meeting.  Notice of the reconvening of any adjourned meeting shall be given as provided in Section 15.2(1), except that such notice need be given only once not less than five days prior to the date on which the meeting is scheduled to be reconvened.  Notice of the reconvening of an adjourned meeting shall state expressly the percentage, as provided above, of the principal amount of the Outstanding Securities of such Series which shall constitute a quorum.

 

Except as limited by the proviso to Section 9.2, any resolution presented to a meeting or adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only by the affirmative vote of the Holders of a majority in principal amount of the Outstanding Securities of that Series; provided, however, that, except as limited by the proviso to Section 9.2, any resolution with respect to any request, demand, authorization, direction, notice, consent, waiver or other Act which this Indenture expressly provides may be made, given or taken by the Holders of a specified percentage, which is less than a majority, in principal amount of the Outstanding Securities of a Series may be adopted at a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of such specified percentage in principal amount of the Outstanding Securities of such Series.

 

Except as limited by the proviso to Section 9.2, any resolution passed or decision taken at any meeting of Holders of Securities of any Series duly held in accordance with this

 

 

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Section shall be binding on all the Holders of Securities of such Series and the Coupons appertaining thereto, whether or not such Holders were present or represented at the meeting.

 

Section 15.5      Determination of Voting Rights; Conduct and Adjournment of Meetings.

 

(1)           Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations as it may deem advisable for any meeting of Holders of Securities of such Series in regard to proof of the holding of Securities of such Series and of the appointment of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.  Except as otherwise permitted or required by any such regulations, the holding of Securities shall be proved in the manner specified in Section 1.4 and the appointment of any proxy shall be proved in the manner specified in Section 1.4 or by having the signature of the person executing the proxy witnessed or guaranteed by any trust company, bank or banker authorized by Section 1.4 to certify to the holding of Bearer Securities.  Such regulations may provide that written instruments appointing proxies, regular on their face, may be presumed valid and genuine without the proof specified in Section 1.4 or other proof.

 

(2)           The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting, unless the meeting shall have been called by the Company or by Holders of Securities as provided in Section 15.2(2), in which case the Company or the Holders of Securities of the Series calling the meeting, as the case may be, shall in like manner appoint a temporary chairman.  A permanent chairman and a permanent secretary of the meeting shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Securities of such Series represented at the meeting.

 

(3)           At any meeting, each Holder of a Security of such Series or proxy shall be entitled to one vote for each $1,000 principal amount of Securities of such Series held or represented by him or such other amount established pursuant to Section 3.1; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding.  The chairman of the meeting shall have no right to vote, except as a Holder of a Security of such Series or proxy.

 

(4)           Any meeting of Holders of Securities of any Series duly called pursuant to Section 15.2 at which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Securities of such Series represented at the meeting; and the meeting may be held as so adjourned without further notice.

 

Section 15.6      Counting Votes and Recording Action of Meetings.

 

The vote upon any resolution submitted to any meeting of Holders of Securities of any Series shall be by written ballots on which shall be subscribed the signatures of the Holders of Securities of such Series or of their representatives by proxy and the principal amounts and serial numbers of the Outstanding Securities of such Series held or represented by them.  The permanent chairman of the meeting shall appoint two inspectors of votes who shall count all

 

 

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votes cast at the meeting for or against any resolution and who shall make and file with the secretary of the meeting their verified written reports in triplicate of all votes cast at the meeting.  A record, at least in triplicate, of the proceedings of each meeting of Holders of Securities of any Series shall be prepared by the secretary of the meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 15.2 and, if applicable, Section 15.4.  Each copy shall be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall be delivered to the Company, and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at the meeting.  Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

Section 15.7      Preservation of Rights of Trustee and Holders.

 

Nothing contained in this Article 15 shall be deemed or construed to authorize or permit, by reason of any call of a meeting of Holders of any or all Series or any rights expressly or impliedly conferred hereunder to make such call, any hindrance or delay in the exercise of any right or rights conferred upon or reserved to the Trustee or to the Holders of any or all Series under any of the provisions of this Indenture or of such Series of Securities.

 

ARTICLE 16

 

SECURITY GUARANTEES

 

Section 16.1      Guarantee.

 

(1)           Notwithstanding any provision of this Article 16 to the contrary, the provisions of this Article 16 shall be applicable only to the Parent and each Subsidiary of the Parent as the Parent may designate, pursuant to Section 3.1, as Guarantor of such Series of Securities; provided that prior to the initial issuance of Securities of such Series, the parties hereto and such Subsidiary shall enter into a supplemental indenture pursuant to Section 9.1(13) with respect to such Series as the initial Guarantors of such Series whereby such Subsidiary shall become a Guarantor under this Indenture.

 

(2)           Subject to this Article 16, each of the Guarantors hereby, jointly and severally, fully and unconditionally guarantees to each Holder of a Security of any Series authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Security or the obligations of the Company hereunder or thereunder, that:

 

(a)           the principal, any premium or interest on Securities of each Series will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Securities of each Series, if any, if lawful, and all other obligations of the Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and

 

  

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(b)           in case of any extension of time of payment or renewal of the Securities of any Series or Coupons appertaining thereto or any of such other obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity, by acceleration or otherwise.

 

Failing payment when due of any amount so guaranteed or any performance so guaranteed for whatever reason, the Guarantors will be jointly and severally obligated to pay the same immediately.  Each Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

(3)           The Guarantors hereby agree that their obligations hereunder are unconditional, irrespective of the validity, regularity or enforceability of the Securities of any Series or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Securities or Coupons appertaining thereto with respect to any provisions hereof or thereof, the recovery of any judgment against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor.  Each Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands whatsoever and covenant that this Security Guarantee will not be discharged except by complete performance of the obligations contained in the Securities of all Series, Coupons appertaining thereto and this Indenture.

 

(4)           If any Holder or the Trustee is required by any court or otherwise to return to the Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such Holder, this Security Guarantee, to the extent theretofore discharged, will be reinstated in full force and effect.

 

(5)           Each Guarantor agrees that it will not be entitled to any right of subrogation in relation to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 5 hereof for the purposes of this Security Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any declaration of acceleration of such obligations as provided in Article 5 hereof, such obligations (whether or not due and payable) will forthwith become due and payable by the Guarantors for the purpose of this Security Guarantee. The Guarantors will have the right to seek contribution from any non-paying Guarantor so long as the exercise of such right does not impair the rights of the Holders under the Security Guarantee.

 

Section 16.2      Limitation on Guarantor Liability.

 

Each Guarantor, and by its acceptance of the Securities of such Series, each Holder, hereby confirms that it is the intention of all such parties that the Security Guarantee of

 

 

77

 

 

such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to any Security Guarantee.  To effectuate the foregoing intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any collections from, rights to receive contribution from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other Guarantor under this Article 16, result in the obligations of such Guarantor under its Security Guarantee not constituting a fraudulent transfer or conveyance.

Section 16.3      Execution and Delivery of Security Guarantee.

 

To evidence its Security Guarantee set forth in Section 16.1 hereof, each Guarantor hereby agrees that a notation of such Security Guarantee will be endorsed by an Officer of such Guarantor on Security of each Series authenticated and delivered by the Trustee and that any supplemental indenture establishing the terms of such Series will be executed on behalf of such Guarantor by one of its Officers.

Each Guarantor hereby agrees that its Security Guarantee set forth in Section 16.1 hereof will remain in full force and effect notwithstanding any failure to endorse on any Security a notation of such Security Guarantee.

If an Officer whose signature is on the Security Guarantee no longer holds that office at the time the Trustee authenticates the Security on which a Security Guarantee is endorsed, the Security Guarantee will be valid nevertheless.

The delivery of any Security by the Trustee, after the authentication thereof hereunder, will constitute due delivery of the Security Guarantee set forth in this Indenture on behalf of the Guarantors.

Section 16.4      Guarantors May Consolidate, etc., on Certain Terms.

 

Except as otherwise provided in Section 16.5 hereof, a Guarantor shall not sell, assign, transfer, convey or otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with or into (whether or not such Guarantor is the surviving Person) another Person, other than the Company or another Guarantor, unless:

(1)           immediately after giving effect to such transaction, no Default or Event of Default exists; and

 

(2)           subject to Section 16.5 hereof, the Person acquiring the property in any such sale, assignment, transfer, conveyance or other disposition or the Person formed by or surviving any such consolidation or merger (if other than the Guarantor) unconditionally assumes all the obligations of that Guarantor under this Indenture and its Security Guarantee on

 

 

78

 

 

the terms set forth herein or therein, pursuant to a supplemental indenture in form and substance reasonably satisfactory to the Trustee.

 

In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Security Guarantee endorsed upon the Security and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor. Such successor Person thereupon may cause to be signed any or all of the Security Guarantees to be endorsed upon all of the Securities issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee. All the Security Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture as the Security Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Security Guarantees had been issued at the date of the execution hereof.

Except as set forth in Article 5 hereof, and notwithstanding clauses 2 above, nothing contained in this Indenture or in any Security will prevent any consolidation or merger of a Guarantor with or into the Company or another Guarantor, or will prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to the Company or another Guarantor.

Section 16.5      Releases.

 

(1)           The Security Guarantee of a Guarantor will be automatically and unconditionally released:

 

(a)           In the event of any sale or other disposition of all or substantially all of the assets of any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the Capital Stock of any Guarantor, in each case to a Person that is not (either before or after giving effect to such transactions) the Company, the Parent or its Subsidiary; and

 

(b)           upon defeasance and covenant defeasance in accordance with Article 8 hereof or satisfaction and discharge of this Indenture in accordance with Article 12 hereof.

 

(2)           Any Guarantor not released from its obligations under its Security Guarantee as provided in this Section 16.5 will remain liable for the full amount of principal, any premium or interest on the Securities of each Series and for the other obligations of any Guarantor under this Indenture as provided in this Article 16.

 

  

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

 

 

	 	DYCOM INVESTMENTS, INC.	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	By:  	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	 	 	 	 	 

 

	 	DYCOM INDUSTRIES, INC.	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	By:  	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 

 

	 	 	 ,	 
	 	as Trustee	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	By:  	 	 	 
	 	Name:	 	 	 
	 	Title:exv10w1

Exhibit
10.1

AMENDED AND RESTATED SUPPLY AND DEVELOPMENT AGREEMENT

     This Amended and Restated Supply and Development Agreement (“Agreement”) is made as of
the 28th day of January, 2011 (“Effective Date”), by and between LifeCell Corporation, a
Delaware corporation (“LifeCell”), and Wright Medical Technology Inc., a Delaware
corporation (“Distributor”). This Agreement replaces and supersedes in its entirety the
Supply and Development Agreement, as amended, dated April 1, 2002, by and between LifeCell and
Distributor. Capitalized terms used in this Agreement have the meanings given to them in Section
18.1 or elsewhere in this Agreement.

Witnesseth:

     WHEREAS, LifeCell is engaged in the business of, among other things, processing tissue using
its proprietary AlloDerm® process and marketing and selling tissue processing services to health
care providers;

     WHEREAS, Distributor is engaged in the business of, among other things, distributing products
and services to health care providers;

     WHEREAS, the parties desire that LifeCell engage Distributor to distribute Products to
Customers and that Distributor distribute Products to Customers on the terms and conditions
hereinafter set forth;

     NOW, THEREFORE, in consideration of the foregoing, the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and intending to be legally bound, the parties hereto hereby agree as follows:

1. Distribution of the Products.

     1.1 Appointment. LifeCell hereby appoints Distributor as its exclusive authorized distributor of the
Products to Customers in the Sales Territory for use within the Sales Territory in accordance with
the provisions of this Agreement. Distributor hereby accepts such appointment and agrees to use
all commercially reasonable efforts to develop and exploit the market and to solicit sales and
obtain orders for the purchase of Products for which its appointment as distributor is effective
and for use within the jurisdiction in the Sales Territory for which such appointment then is
effective. Distributor acknowledges that nothing contained in this Agreement grants Distributor
the exclusive, non-exclusive, or any other right whatsoever to sell or distribute Products to
persons in the Sales Territory that are not Customers and Distributor hereby agrees that it will
sell Products to Customers only in the Sales Territory, which Customers, to the best knowledge of
Distributor, after due inquiry, will use Products sold to them on or before June 30, 2011, only in
the Sales Territory for orthopedic applications and podiatric wound applications and Products sold
to them after June 30, 2011, only in the Sales Territory for orthopedic applications. LifeCell
hereby expressly retains all distribution and other rights in connection with the Products and
Processed Tissue not specifically granted to Distributor under this Agreement.

2. Distributor’s Duties.

     2.1 Distributor’s Duties. Distributor’s duties hereunder shall include:

          (a) promoting and selling the Products to Customers in the Sales Territory through
Distributor’s trained field sales representatives;

          (b) regularly and diligently soliciting Product orders from present and potential Customers
within the Sales Territory for use within the Sales Territory;

 

 

          (c) supporting, developing, administering, monitoring and participating in Market Development
Programs in accordance with Section 5;

          (d) consulting with and furnishing information to LifeCell concerning Customers’ requirements
and other matters that may affect Product sales in the Sales Territory;

          (e) not giving any warranties in favor of Customers or proposed Customers beyond those
contained in Section 4.9 hereof;

          (f) being responsible for reporting to LifeCell all information in Distributor’s possession or
of which Distributor is aware, upon reasonable request by LifeCell to enable LifeCell to ensure
that the Products meet all applicable laws, rules and regulations relating to health, safety,
labeling and the like;

          (g) refraining from any act or practice that (i) reasonably might tend to diminish or inhibit
Product sales or in any way adversely reflect upon LifeCell, provided, however, except as limited
by subsection (i) below, nothing contained herein shall restrict Distributor from developing or
otherwise acquiring rights to or selling (1) synthetic derived graft containment products, or (2)
xenograft tissue products, provided, however, that if xenograft tissue products exceed [***]% of
Distributor’s sales of graft containment products, Lifecell at its option may change the Agreement
to non-exclusive, and if xenograft tissue products exceed [***]% of Distributor’s sales of graft
containment products, Lifecell at its option may terminate the Agreement; or (ii) constitutes a
violation of applicable law;

          (h) refraining from promoting, soliciting or otherwise participating in the sale of human
derived soft tissue graft containment products that directly compete with the Products, in North
America during the Term, and solely if this Agreement is terminated by LifeCell due to a material
and intentional breach by Distributor hereof which is not remedied within applicable cure periods
for [***] after such termination of this Agreement (and the foregoing shall survive such
termination of this Agreement for a period of [***], if applicable); provided, however, that
Distributor may develop a human-derived dermal product offering (which may not be commercialized
during the Term), subject to Distributor providing LifeCell with written notice upon initiation of
human clinical studies and trials to obtain clinical validation of the human-derived dermal
product;

          (i) subsequent to June 30, 2011, refraining from promoting, soliciting or otherwise
participating in the sale of human and non-human derived soft tissue graft containment products in
the field of wound care treatment, including, without limitation, the care and treatment of acute,
surgical, and chronic wounds, such as, by non-limiting example, diabetic foot ulcers, venous leg
ulcers, and pressure ulcers, except that Distributor may promote, solicit or otherwise participate
in the sale of current or future products based on Distributor’s [***] currently marketed under the name “Biotape” (the “WMT Porcine Platform”) to
the hospital market, provided that Distributor will not, and will not permit, authorize, or license
any third party to, begin commercial sales of any new products based on the WMT Porcine Platform
(i.e. products not sold by Distributor as of the Effective Date) that are specifically indicated
for wound care applications to the hospital market prior to the second anniversary of the Effective
Date (the “Exclusion Period”). For the avoidance of doubt, the hospital market shall not include
the post acute wound care market, including, without limitation, wound care facilities, outpatient
facilities, or ambulatory surgical centers.

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

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          (j) refraining from changing Product or Processed Tissue labels or containers, repackaging the
Products or Processed Tissue, or otherwise presenting or marketing the Products in competition with
or as similar substitute items for other products of LifeCell sold in the Sales Territory;

          (k) furnishing to LifeCell for prior review and approval copies of all proposed Marketing
Materials in accordance with Section 9.5 and refraining from or discontinuing the use of any
Marketing Materials which in the reasonable opinion of LifeCell are false or misleading or may
subject LifeCell to liability;

          (l) providing to LifeCell Updated Product Forecasts during the Term in accordance with Section
4.8;

          (m) providing to LifeCell, on or before the fifteenth day of each month, a report of sales of
the Products in the immediately preceding month in the United States and, if applicable, on or
before the fifteenth day of each month immediately following each Sales Quarter, a report of sales
of Products in the immediately preceding Sales Quarter to each country other than the United States
in the Sales Territory, with each report listing the total dollar amount of sales and total number
of Units.

          (n) refraining from (i) acting in any manner that could expose LifeCell to any liability
beyond such exposure as is inherent in connection with introducing a product, such as the Products,
into the market and Sales Territory as is contemplated by this Agreement and (ii) pledging or
purporting to pledge LifeCell’s credit;

          (o) informing LifeCell of any infringements of its patents, trademarks and other proprietary
rights known to Distributor and using commercially reasonable efforts to assist LifeCell in the
safeguarding of such legal rights at LifeCell’s sole expense;

          (p) not disputing the right of LifeCell to its trademarks;

          (q) not marketing the Products (i) for sale, delivery or use outside the Sales Territory,
unless otherwise agreed in writing in advance with LifeCell, (ii) for sale inside the Sales
Territory if, to Distributor’s knowledge, after reasonable inquiry, the Products are ultimately
destined for delivery or use outside the Sales Territory, unless otherwise agreed in writing in
advance by LifeCell, or (iii) for sale, delivery or use, inside or outside the Sales Territory, to
persons that are not Customers, unless otherwise agreed in writing in advance by LifeCell;

          (r) not marketing, promoting, soliciting, or, directly or indirectly, knowingly selling the
Product or allowing the Product to be sold for use in any application other than orthopedic
applications, other than during the period commencing on the Effective Date through June 30, 2011
(the “Wind Down Period”), when Distributor may market and sell the Product for orthopedic
applications, on an exclusive basis, and podiatric wound care applications, on a non-exclusive
basis;

          (s) immediately upon expiration of the Wind Down Period, returning to LifeCell all Products
intended to be sold for podiatric wound care applications (i.e. unsold [***] Sheet Products and all
Micronized Products), for which Distributor shall receive a credit in the amount equal to [***] paid for such products, but not to exceed [***] Distributor’s average
monthly unit volume sales of such products over the [***] period immediately preceding the
repurchase date, to be applied against future Product purchases;

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

-3-

 

          (t) complying, at its sole expense and prior to any sale of Products in the Sales Territory,
with all laws, rules and regulations applicable to the performance of its duties under this
Agreement and to the operation of this Agreement, including the filing of all documents and
obtaining of all permits, authorizations and the like required by the laws of all the jurisdictions
in the Sales Territory, and providing to LifeCell promptly upon LifeCell’s request, reasonable
evidence of such compliance;

          (u) securing and maintaining insurance, including product liability insurance, of at least
$3 million  in accordance with Section 2.2;

          (v) paying any and all expenses of and incidental to the distributorship obligations hereunder
incurred by the Distributor, including without limitation, costs and expenses associated with
Marketing Materials; salaries, commissions and benefits of Distributor’s employees and agents, as
applicable; taxes, imposts, charges and assessments levied by any appropriate governmental or
jurisdictional authority in connection with the purchase and sale of Products in the Sales
Territory; and

          (w) supporting and participating in Clinical Development Programs in accordance with Section
5.

     2.2 Insurance. Distributor shall maintain, during the Term, Comprehensive or Commercial General
Liability insurance, which shall include without limitation, broad form liability and products
liability coverage with minimum limits of three million dollars ($ 3,000,000).  per occurrence/aggregate. Distributor shall
furnish LifeCell with such insurance certificates prior to the delivery of Products hereunder and
during the Term as LifeCell may require.

3. LifeCell’s Duties.

     3.1 LifeCell’s Duties. LifeCell’s duties hereunder shall include:

          (a) providing Distributor with specimens of its existing promotional materials and marketing
brochures and copies of relevant documents either in its possession or commercially reasonably
obtainable by LifeCell relating to regulatory approvals;

          (b) providing Distributor such reasonable assistance, as shall be determined mutually by
LifeCell and Distributor, to be appropriate to support Distributor’s promotional and advertising
activities within the Sales Territory, including LifeCell sending one LifeCell employee or
consultant knowledgeable about the Products to no more than three (3) significant industry trade
shows each Sales Year and to conduct two (2) training sessions concerning the Products each Sales
Year;

          (c) referring to Distributor all orders and inquiries from Customers relating to the sale of
Products within the Sales Territory; provided, however, that LifeCell shall not have the duty to
refer orders and inquiries relating to podiatric wound care applications during the Wind Down
Period;

          (d) supporting and participating in Clinical Development Programs in accordance with Section
5;

          (e) including Distributor as an additional insured on LifeCell’s product liability insurance
policy;

-4-

 

          (f) securing
and maintaining product liability insurance of at least $3 million;

          (g) supplying Distributor with Product in accordance with the Delivery Schedule. Furthermore,
Lifecell agrees that delivery of Product to Distributor is not, and will not be incumbered by any
contract, or other agreement in which priority or preferential delivery, obligations are offered to
any other party, distributor or dealer of Lifecell products or services;

          (h) maintaining the Intellectual Property related to the Product;

          (i) limiting the use of the Product for orthopedic applications exclusively to Distributor,
and limiting the use of the Product to Distributor for podiatric wound applications, on a
non-exclusive basis, during the Wind Down Period. Without limiting the generality of the
foregoing, LifeCell will not, at any time during the term of this Agreement, directly or indirectly
(i) knowingly sell or distribute the Product, or permit the Product to be sold or distributed, for
use in any orthopedic application, (ii) appoint, engage or authorize any other person or entity to
act as a seller or distributor of the Product for use in any orthopedic application or as its
representative or agent in connection with the sale or distribution of any Products for use in any
orthopedic application, or (iii) pay any commissions or other compensation to any person or entity
for or in connection with the sale or distribution of the Product for use in any orthopedic
application;

          (j) refraining from (i) acting in any manner that could expose Distributor to any liability
beyond such exposure as is inherent in connection with introducing a product, such as the Products,
into the market and Sales Territory as is contemplated by this Agreement and (ii) pledging or
purporting to pledge Distributor’s credit;

          (k) not disputing the right of Distributor to its trademarks;

          (l) granting Distributor exclusive distribution rights in the orthopedic field and on the
terms and conditions set forth in this Agreement to any next generation human tissue products
commercialized by LifeCell that the parties mutually agree are both commercially viable and
clinically appropriate for orthopedic applications (which agreement shall not be unreasonably
withheld or delayed by LifeCell). No later than [***] of Distributor’s commercialization of a next generation human tissue product, the parties shall
determine the increase in annual Product sales reasonably attributable to such next generation
human tissue product during the previous [***] (net of any cannibalization of prior
generation Product sales), and make a [***] increase in the Minimum Annual Payment [***] in an amount proportionate to such net increase. Thereafter, no later
than February 28 of each calendar year during the Term, the parties shall analyze and discuss
whether a further increase in the Minimum Annual Payment is appropriate based on increases in
annual Product sales achieved during the prior periods which are attributable to next generation
human tissue products. For purposes of this Section, a “next generation human tissue product”
shall mean a new acellular, [***], human dermal sheet product offering commercialized by LifeCell
(other than an Enhanced Sheet Product). LifeCell will provide Distributor with written notice of
any next generation human tissue product that is both commercially viable and clinically
appropriate for orthopedic applications prior to commercializing any such application outside the
orthopedic field of use, and will cooperate with Distributor in the evaluation, development and
commercialization of such applications in the orthopedic market. Any such next generation human
tissue product shall be added to the definition of “Product” hereunder upon the granting to
Distributor of exclusive distribution rights in the

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

-5-

 

orthopedic field with respect thereto pursuant to the provisions of this paragraph. All product
development and implementation costs associated with the
commercialization of the next genertion
human tissue product in the orthopedic field shall be borne by Distributor, including, without
limitation, labeling costs, SKU sizes, and thickness preparation. Notwithstanding the foregoing,
any future products resulting from changes to enhance, improve, or modify the Sheet Products, for
the orthopedic field, that combine the Sheet Products with [***], or other
[***] are hereafter referred to as “Enhanced Sheet Products” and
shall not be considered next generation human tissue products hereunder. Distributor has not been
granted any rights with respect to any Enhanced Sheet Products under this Agreement, but LifeCell
may elect under separate terms and conditions to enter into an agreement with Distributor to
develop, commercialize or use one or more Enhanced Sheet Products. In no event shall LifeCell
enter into any agreement with a third party to commercialize any Enhanced Sheet Product without
first providing Distributor the opportunity to accept or refuse such an agreement offered on equal
terms and conditions, which acceptance or refusal shall be provided in writing [***] after
written notice is sent from LifeCell describing in reasonable detail the subject Enhanced Sheet
Product and the terms and conditions of the proposed agreement with such third party with respect
to the commercialization thereof. LifeCell will promptly provide the Distributor with any and all
data and information relating to such Enhanced Sheet Product that Distributor may reasonably
request to facilitate its assessment of the viability of such product for orthopedic applications.
Failure by Distributor to provide written acceptance [***] shall be deemed a
rejection of the right to commercialize the Enhanced Sheet Product;

          (m) cooperating with Distributor on the evaluation and potential development of any specific
project ideas, new product configurations, or potential additional indications in the orthopedic
field that are communicated to LifeCell by Distributor; provided the business case for each of
foregoing is reasonably acceptable to both parties (which acceptance shall not be unreasonably
withheld or delayed by LifeCell). All product development and implementation costs associated with
the commercialization of the foregoing in the orthopedic field shall be borne by Distributor,
including, without limitation, labeling costs, SKU sizes, and thickness preparation. Further, no
later than [***] of Distributor’s commercialization of a new project
idea, configuration or indication in the orthopedic field, the parties shall determine the increase
in annual Product sales reasonably attributable to such project idea, configuration and/or
indication during the previous [***] (net of any cannibalization of prior generation
Product sales), and make a [***] increase the Minimum Annual Payment [***] in an amount proportionate to such net increase. Thereafter, no later than February 28 of
each calendar year during the Term, the parties shall analyze and discuss whether a further
increase in the Minimum Annual Payment is appropriate based on increases in annual Product sales
achieved during the prior periods which are attributable to such project idea, configuration and/or
indication; and

          (n) within forty-five (45) days following the end of the Wind Down Period, repurchasing
Distributor’s remaining inventory of [***] Sheet Product and Micronized Product from Distributor at
a price equal to [***], not to exceed [***] Distributor’s average monthly unit volume sales of such products [***] period
immediately preceding the repurchase date.

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

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4. Terms and Conditions of Sale.

     4.1 Minimum Annual Product Sales.

          (a) During the Term, Distributor is required to achieve Minimum Annual Product Sales. The
total United States dollar-value amount of sales of all Products to Customers that are recognized
by Distributor as revenue pursuant to United States Generally Accepted Accounting Principles during
any given calendar year period, beginning with the year ending December 31, 2004, are hereafter
referred to, respectively, as “Annual Product Sales”. Minimum Annual Product Sales for the
calendar years ending December 31, 2004 and 2005 are $[***] and $[***] respectively, per year.
Within thirty (30) days after completion of the calendar year ending December 31, 2006, and within
thirty (30) days following the completion of each calendar year through 2010, Distributor shall
calculate the compound annual growth rate of its Annual Product Sales for the most
recently-completed two year period (hereafter referred to as the “Two Year CAGR”) pursuant to the
following formula:

Two Year CAGR = (v(Ac/ Ac-2) ) — 1

     Wherein; Ac = Annual Product Sales during the most recently completed calendar
year;

     Ac-2 = Annual Product Sales during the calendar year two years prior to the most
recently-completed calendar year, and;

     √ = the square root of a number;

     As an example, if Ac equals $1,000,000 and Ac-2 equals $800,000, then
the 2010 Two Year CAGR computes to equal .1180, or 11.80%. As a further example, if Ac
equals $1,000,000 and Ac-2 equals $1,200,000, then the Two Year CAGR, equals -.0871, or
negative 8.71%.

     In any calendar year during the period from the calendar year ending December 31, 2006 through
the calendar year ending December 31, 2010, if the Distributor achieves a Two Year CAGR of less
than [***], as determined in accordance with this Section 4.1(a) (the “Pre-2011 Minimum Annual
Product Sales”), the Distributor shall pay to LifeCell an amount equal to the difference between
(i) the Revenue Share Amount that LifeCell would have received pursuant to Section 4.3 if
Distributor had achieved the Pre-2011 Minimum Annual Product Sales, and (ii) the amount actually
earned by LifeCell pursuant to Section 4.3 (the “Pre-2011 Catch-up Amount”). The pre-2011 Catch-up
Amount shall be due and payable by Distributor within thirty (30) days following Distributor’s
determination of the pre-2011 Two Year CAGR pursuant to the second sentence of this Section.

          (b) Beginning in the calendar year ending December 31, 2011, or any calendar year thereafter,
if Distributor’s Annual Product Sales are less than $[***] (the “Minimum Annual Product Sales”),
Distributor shall, within sixty (60) days following the completion of that respective period,
provide LifeCell with a plan for improving Distributor’s sales of Products to Customers. LifeCell
at its sole and absolute discretion, shall thereafter be entitled to change Distributor’s status as
exclusive distributor of Products in the Sales Territory to non-exclusive distributor of Products,
unless Distributor pays to LifeCell, within ninety (90) days following the completion of that
respective period, a “Catch-up Amount” equal to any difference between (x) the Revenue
Share Amount that LifeCell would have received pursuant to Section 4.3 if Distributor had achieved
the Minimum Annual Product Sales for that respective period and (y) the amount actually earned by
LifeCell pursuant to Section 4.3.

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

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          (c) In the event that Distributor In the event that Distributor achieves a Two Year CAGR of
less than negative [***] for any period consisting of two consecutive calendar years during the
Term prior to December 31, 2010, as determined in accordance with Section 4.1(a), or Annual Product
Sales of less than $[***] in any calendar year during the Term after December 31, 2010 (the
“Terminable Minimum Annual Product Sales”) Distributor shall, within sixty (60) days following the
completion of that respective period, provide LifeCell with a plan for improving Distributor’s
sales of Products to Customers. LifeCell at its sole and absolute discretion, shall thereafter be
entitled to terminate this agreement, unless Distributor pays to LifeCell, within ninety (90) days
following the completion of that respective period, a “Termination Catch-up Amount” equal
to any difference between (x) the Revenue Share Amount that LifeCell would have received pursuant
to Section 4.3 if Distributor had achieved the Terminable Minimum Annual Product Sales for that
respective period and (y) the amount actually earned by LifeCell pursuant to Section 4.3 plus any
previous Catch-up Amounts and Termination Catch-up Amounts paid during that respective period.

          (d) With respect to any calendar year during the Term, in the event that LifeCell is unable to
furnish Distributor, for any reason, with the Number of Units of each respective Product and Sizes
as established in Updated Product Forecasts pursuant to Section 4.8(a), or should LifeCell, for any
reason including a force majeure event, decline to accept an Updated Product Forecast wherein the
Number of Units of each respective Product and Sizes requested by Distributor falls within the
allowable percentage increase provisions established in Section 4.8(a), for purposes of calculating
the Minimum Annual Product Sales, the Distributor shall be allowed to include in its calculations
of the Minimum Annual Product Sales and Terminable Minimum Annual Product Sales, a sales amount
representative of what would have been derived from the number of units that LifeCell was unable to
furnish. For purposes of that period’s calculation, Distributor will be deemed to have achieved
those Product Sales. Additionally, should LifeCell’s inability to meet Distributor requests for
any of the Products be prolonged for more than twelve (12) months, Distributor shall be deemed to
have achieved the Minimum Annual Product Sales criteria set forth in Section 4.1(b) for the periods
in which the prolonged supply constraint occurred. Except as otherwise provided in Section 4.3,
4.9(b), 4.12 and 7.4, Distributor shall have no right and LifeCell shall have no obligation to
accept returns from Distributor of Products.

          (e) LifeCell, at its expense, shall have the right upon no less than five (5) days advance
written notice to Distributor and no more often than one (1) time per year, to have an independent
consultant chosen by LifeCell, inspect and audit Distributor’s books and records reasonably
necessary or desirable to determine Distributor’s compliance with its obligations under this
Agreement. Such audit shall not be limited to the fiscal year in which the audit is performed.
Any audit performed pursuant to LifeCell’s right to audit shall be at LifeCell’s expense. This
Section 4.1(e) shall survive any expiration or termination of this Agreement for a period of two
years.

     4.2 Transfer Price. LifeCell shall supply Sheet Products to Distributor at the price of [***] per
square centimeter of Product and, until the expiration of the Wind Down Period, LifeCell shall
supply Micronized Products to Distributor at prices consisting of [***] for the current one cubic
centimeter size and [***] for the current two cubic centimeter size (hereinafter such price of the
respective Products is referred to as the “Transfer Price”); provided, however, that in no
event shall LifeCell increase the respective Transfer Prices (i) effective more than once in any
Sales Year and/or (ii) by more than [***] in any Sales Year. LifeCell shall use commercially
reasonable efforts to provide ninety (90) days prior written notice to Distributor of any increase
in Transfer Prices and inform Distributor of such potential increases on or before November 15 of
each Sales Year, LifeCell may increase the Transfer Price by

 

			
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Securities and Exchange Commission pursuant to a request for confidential treatment.

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more than [***] in any Sales Year only if the costs associated with processing Processed Tissue
increases by more than [***] in any Sales Year. In such an event LifeCell may increase the
Transfer Price above [***] and up to the increase in costs associated with processing Processed
Tissue. In the event that LifeCell increases Transfer Prices by more than [***]% in any Sales
Year, Distributor may terminate this Agreement upon thirty (30) days written notice to LifeCell by
providing such written notice to LifeCell within sixty (60) days after receiving LifeCell’s
Transfer Price increase notice.

     4.3 Revenue Share Payment. The Distributor shall, with respect to all Product sold to Customers during
a Sales Quarter, pay to LifeCell an amount equal to [***]% of the gross sales price invoiced by
Distributor to the Customers for such Products (“Revenue Share Amount”), less the Transfer
Price previously paid by Distributor to LifeCell for such Products (the net amount of the Revenue
Share Amount less the Transfer Price, hereafter, the “Revenue Share Payment”). In the
event that the Revenue Share Amount for Products sold during a respective Sales Quarter is less
than the Transfer Price of such Products, the Revenue Share Payment for such sold Products shall be
zero, and Distributor shall not be entitled to any credit against other Product Revenue Share
Payments in past or future Sales Quarters. (For example, if Distributor sells Products to
Customers during a Sales Quarter in an amount that totals $100,000.00, and the Transfer Price of
those Product units when purchased from LifeCell was $10,000.00, the Revenue Share Payment to be
paid to LifeCell upon sale of the Product is $[***], calculated as $[***] less the Product Transfer
Price of $10,000.00.) Distributor shall be entitled to a credit for any Revenue Share Payment made
for any unit of Product that is rejected or returned by a Customer.

     4.4 Payment Terms. The Distributor shall (i) pay for the Products purchased hereunder by cash within
forty five (45) days of the later of the date of shipment or the invoice date for such Products and
(ii) pay the applicable Revenue Share Payment for sale of the Product to Customers by cash within
45 days following each month occurring during the Term of this Agreement. Interest at the lesser
of the per annum rate of [***] or the highest interest rate permitted under
applicable law shall accrue, and Distributor shall pay to LifeCell such interest on any amounts
owed to LifeCell for Products purchased and Revenue Share Payments, which amounts have not been
paid to LifeCell within forty five (45) days of the later of the date of shipment or the invoice
date for such Products with respect to payments for Products or within 45 days following the month
in which Revenue Share Payments are earned with respect to Revenue Share Payments. LifeCell, in
its sole discretion, may terminate this Agreement upon 30 days prior written notice of termination
(the “Notice Period”) to Distributor if any invoice (including invoices for interest accrued and
payable under the terms hereof) from LifeCell to Distributor remains unpaid for more than 45 days
from the later of the date of such invoice or the date of the related shipment and Distributor has
not paid such invoice, together with accrued unpaid interest thereon as provided herein, upon
expiration of the Notice Period. Notwithstanding the foregoing or anything to the contrary
contained in this Agreement, in the event that LifeCell provides written notice of non-payment to
Distributor pursuant to this Section 4.4 more than once in any Sales Year, LifeCell may
immediately, without the requirement of a Notice Period, either (i) change Distributor’s status as
exclusive distributor of Products in the Sales Territory to non-exclusive distributor of Products
or (ii) terminate this Agreement.

     4.5 Delivery. All deliveries of Products by LifeCell to Distributor hereunder, unless otherwise agreed
to by LifeCell in writing, shall be made in accordance with the Delivery Schedule and shall be FOB LifeCell’s tissue processing facility. LifeCell agrees to use commercially reasonable efforts to
ship Products in accordance with the Delivery Schedule, but in no event more than ninety (90) days
after

 

			
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LifeCell’s receipt of Distributor’s purchase order, provided that LifeCell timely receives
Distributor’s purchase order issued in accordance with the terms of this Agreement. Distributor
agrees that its only right or remedy for LifeCell’s failure to deliver Products within 90 days of
receipt of Distributor’s applicable and compliant purchase order is as set forth in Section 4.1(c).

     4.6 Regulatory Approval. LifeCell shall be responsible for securing all marketing and other regulatory
approvals and permits necessary or otherwise required in the United States and shall pay for all
costs associated therewith. In the event that the Sales Territory includes jurisdictions outside
of the United States, Distributor shall be responsible for securing all marketing and other
regulatory approvals and permits necessary or otherwise required in any jurisdiction in the Sales
Territory other than the United States in which Distributor intends to distribute Products or is
distributing Products, as the case may be, and shall pay for all costs associated therewith.
Distributor shall provide evidence of its securing all marketing and other regulatory approvals and
permits as set forth in this Section 4.6 promptly upon the request of LifeCell. Upon any
termination or expiration of this Agreement, to the extent transferable by law, Distributor shall
in its sole discretion have the option to enter good faith negotiations with LifeCell to sell
LifeCell all such marketing and other regulatory approvals and permits upon mutually satisfactory
terms and conditions.

     4.7 Storage and Handling. Distributor agrees to store, handle and transport Processed Tissue and
adhere to all applicable record keeping requirements therefor, in strict accordance with all
applicable laws, rules and regulations, including without limitation, the guidelines of the United
States Food and Drug Administration (the “FDA”) and the American Association of Tissue Banks (the
“AATB”) and the specifications and procedures of LifeCell set forth in Schedule I attached to this
Agreement and made apart hereof, as it may be reasonably changed by LifeCell, in its sole
discretion, from time to time. LifeCell agrees to provide Distributor with such advance notice of
any such changes to Schedule II as is commercially reasonable. Upon reasonable notice and during
regular business hours, Distributor shall make available from time to time its storage, handling
and transport facilities for inspection at LifeCell’s expense by independent representatives
selected by LifeCell or qualified LifeCell employees to verify compliance with the applicable
provisions hereof. Distributor shall store Products and sell Products from inventory to Customers
in the Sales Territory on a First In First Out basis.

     4.8 Forecasts; Deliveries; Orders.

          (a) No later than the first day of every Sales Quarter during the Term, Distributor shall
provide to LifeCell an updated rolling forecast for the following twelve (12) month period in the
format typically provided by Distributor prior to the date of this amendment and restatement (each
an “Updated Product Forecast”). Each Updated Product Forecast is subject to LifeCell’s
express written approval unless either (i) the Number of Units of Products in any of the Sizes for
any of the first three Sales Quarters of that respective forecast have increased by less than ten
percent (10%), respectively, from their most recent previously-forecasted amounts, or (ii) the
Number of Units of Products in any of the Sizes for the newly-added fourth Sales Quarter of that
respective forecast exceed those of the forecast’s third Sales Quarter by less than ten percent
(10%). In the event that either (y) an Updated Product Forecast complies with the percentage
requirement set forth in the immediately preceding sentence, or (z) an Updated Product Forecast
that does not comply with such percentage requirement is otherwise approved in writing by LifeCell
pursuant to this Section 4.8(a), it shall be deemed as accepted by LifeCell and Distributor.
Promptly following the Effective Date, the parties will mutually agree on a separate Product
forecast for [***] Sheet Product and Micronized Product through the Wind Down Period

 

			
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reasonably calculated to allow for appropriate depletion of Distributor’s supply of [***] Sheet
Product and Micronized Product by the expiration of the Wind Down Period. Such forecast will be
adjusted by the parties on a monthly basis following the parties mutual review and consideration of
current inventory volumes and customer demand promptly at the end of each month of the Wind Down
Period.

          (b) The Number of Units of Products specified for the first Sales Quarter of each accepted
Updated Product Forecast, (each a “First Quarter Commitment”), shall constitute binding
commitments on behalf of Distributor to purchase from LifeCell and LifeCell to deliver to
Distributor. The Number of Units of each respective Product and Sizes forecasted for the second,
third and fourth Sales Quarters of such product forecasts shall constitute non-binding projections
of anticipated future unit demand until such time, whether subsequently revised pursuant to Section
4.8(a) or left unchanged, each become the unit forecast for the first Sales Quarter of the latest
Updated Product Forecast.

          (c) Purchase orders for the shipment of the number of Units of Products in the Sizes, issued
in conformance with each First Quarter Commitment shall be binding on LifeCell and Distributor,
except as otherwise provided herein. Purchase orders issued for the number of Units of Products in
the Sizes, in excess of the current First Quarter Commitment for the current Sales Quarter shall be
deemed accepted only up to the applicable First Quarter Commitment for that Sales Quarter unless
otherwise expressly acknowledged by LifeCell in writing.

          (d) Distributor agrees to submit to and cause to be received by LifeCell, on or before the
last day of each applicable Sales Quarter in accordance with Section 4.1(a) at LifeCell’s address
set forth in Section 15, written purchases orders for the purchase of a quantity of Units of
Products in the Sizes necessary to at least satisfy the impending First Quarter Commitment for the
next Sales Quarter. Except as otherwise set forth herein, all purchase orders for Numbers of Units
of each respective Product and Sizes in excess of those specified in the current First Quarter
Commitment are subject to approval and written acceptance by LifeCell. Once issued, Distributor
shall not cancel or reschedule any purchase order within twenty (20) days of the scheduled shipment
date for the Products without express written consent from LifeCell. Hand written provisions on
any purchase orders submitted by or through Distributor shall be deemed deleted. Additional or
different terms inserted in this agreement or in any purchase order by either party, or deletions
thereto, whether by alterations, addenda, or otherwise, shall be of no force and effect, unless
mutually expressly agreed to by both parties in writing.

     4.9 Warranty; Limitation of Liability.

          (a) LifeCell represents and warrants that any Processed Tissue delivered by it to Distributor
hereunder will be, and will have been, obtained, processed, stored, handled and transported in
accordance with (i) all applicable legal requirements then in effect, including without limitation,
the regulations of the FDA and the United States Department of Health and Human Services (21 C.F.R.
Part 1270), (ii) the guidelines of the AATB, (iii) the license requirements of the states of New
York, California and Florida, and (iv) the procedures and specifications set forth on Schedule II.
Distributor agrees that the only remedies for failure of any Processed Tissue to comply with this
limited warranty shall be replacement of non-conforming Processed Tissue.

          (b) The parties acknowledge and understand that, under the Federal Food, Drug, and Cosmetic
Act and regulations thereunder, FDA may consider the Processed Tissue or any Products to be medical
devices for the intended uses contemplated in this Agreement, rather than human tissue. The
parties understand, acknowledge and agree that LifeCell does not warrant that the Processed Tissue

 

			
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Securities and Exchange Commission pursuant to a request for confidential treatment.

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or any Products currently meet or in the future will be able to meet medical device regulatory
requirements, including, without limitation, obtaining premarket approval. The parties further
understand, acknowledge and agree that the FDA’s imposition of medical device regulatory
requirements would be substantially more burdensome and costly than the FDA’s human tissue
requirements and that, among other things, the FDA could require that a party or the parties take
certain actions with respect to the Processed Tissue or Products regarding premarket approval,
commercial distribution and regulatory requirements that could have a material impact on the
distribution of Products as contemplated by the parties hereunder. In the event that the FDA
imposes medical device regulatory requirements on the Products or Processed Tissue, (i) Distributor
may cancel any pending purchase orders and/or return any inventory in Distributor’s possession in
exchange for a prompt refund by LifeCell to Distributor of the dollar amount equal to the Transfer
Prices paid by Distributor for the Sizes returned multiplied by the number of Units thereof, and
(ii) LifeCell or Distributor may terminate this Agreement upon fifteen (15) days advance written
notice to the other without incurring any further liability under this Agreement.

          (c) In the event and to the extent that any of the actions contemplated by or performed in
connection with this Agreement constitutes the sale of goods by LifeCell, LIFECELL HEREBY DISCLAIMS
AND NEGATES ANY AND ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED WITH RESPECT TO THE PROCESSED
TISSUE, THE PRODUCTS OR ANY RIGHTS HEREUNDER TRANSFERRED, INCLUDING WITHOUT LIMITATION, ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.

          (d) Distributor covenants and agrees that it shall not make or provide to any Customer any
warranties, representations, specifications, or claims regarding the Processed Tissue or Products
in excess of or inconsistent with those described herein.

          (e) LifeCell will not be liable for indirect, incidental, special, consequential, punitive,
exemplary or multiple damages, including without limitation, any damages resulting from business
interruption, loss of use, loss of business, loss of revenue, or loss of profits, arising in
connection with this Agreement or LifeCell’s performance hereunder or of any other obligations
relating to this Agreement, even if LifeCell has been advised of the likelihood of those damages.
The aggregate liability of LifeCell to Distributor arising directly or indirectly out of this
Agreement shall not exceed an amount equal to the total of twelve
(12) full months of revenue actually received by LifeCell under
Section 4.1 during the twelve (12) months immediately preceding the
date on which notice of a claim for such liability arose. This limitation of liability shall
apply regardless of the cause of action under which those damages are sought. The parties
acknowledge that absent this limitation, LifeCell would not have been able to agree to provide the
Products or perform its other obligations hereunder for the consideration and on the terms and
conditions set forth in this Agreement.

     4.10
Processed Tissue Changes. LifeCell reserves the right at any time to make changes in the Processed
Tissue provided, however, that LifeCell shall use commercially reasonable efforts to
provide [***] prior written notice to Distributor of any such changes. Distributor
agrees that LifeCell shall have no liability to Distributor by reason of any Processed Tissue
change.

     4.11 Processed Tissue Shelf Life. LifeCell covenants that the shelf life of any Processed Tissue
delivered to Distributor during the Term shall have a shelf life of no less than [***] as of the date of shipment from LifeCell.

     4.12 Product Recalls.

          (a) Responsibility for Recall. In the event any Product(s) must be recalled or LifeCell
reasonably determines that it is prudent to have any Product(s) recalled from the channel of
distribution

 

			
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by reason of failure to meet any requirements of law or otherwise, Distributor shall have the
sole responsibility to effect the recall. LifeCell is solely responsible for final decisions
concerning the recall of Products in the United States, and the destruction and/or reconditioning
of recalled Products. In addition, LifeCell is solely responsible for all communications with
Regulatory Agencies concerning Product recalls in the United States. For recall of Product outside
the United States, the parties agree to work cooperatively regarding communication with the
Regulatory Agencies to effect the recall. Any costs and expenses incurred by either party in
connection with a recall of Products shall be borne by the party whose acts or omissions caused or
resulted in the necessity for such recall. LifeCell shall use commercially diligent efforts to
cooperate with Distributor in implementing any such recalls to the extent such cooperation is
necessary to effect the recall.

          (b) Responsibility for Reimbursement. In the event the recall results from or is caused by an
act or omission by Distributor, Distributor shall reimburse LifeCell for any costs and/or expenses
reasonably expended by LifeCell as a consequence of the recall. Without limiting the general
nature of the foregoing, Distributor shall bear the cost of any Products involved in such recall.
In the event the recall results from or is caused by an act or omission by LifeCell, LifeCell shall
reimburse Distributor for any costs and/or expenses reasonably expended by Distributor as a
consequence of the recall. Without limiting the general nature of the foregoing, LifeCell will
provide replacement Products for recalled Products and for any Products that cannot be shipped due
to the condition requiring the recall within 120 days, and if this does not occur, Distributor
shall have the right to terminate this Agreement.

5. Market Development Programs. LifeCell and Distributor shall review the implementation and
administration of market development and regulatory strategies, priorities, of the Products
(“Market Development Programs”) and Clinical Development Programs and activities and procedures
related to the marketing and sales of Products.

6. Term. This Agreement, as amended shall be effective as of April 1, 2004 and, unless earlier
terminated in accordance with the terms pursuant to Section 7, shall remain in force and effect
until 11:59 p.m., Eastern United States time, December 31, 2018 (the “Initial Term”). Not
later than one hundred twenty (120) days prior to the expiration of the Initial Term or then
current Renewal Term, each party shall provide written notice to the other party indicating its
desire to renew this Agreement for a Renewal Term (the “Renewal Notice”). In the event that either
party’s Renewal Notice indicates a desire to renew this Agreement for a Renewal Term, the parties
shall arrange to meet, in person or telephonically, not later than ninety (90) days prior to the
expiration of the Initial Term or then current Renewal Term, and shall negotiate in good faith
concerning the renewal of this Agreement and any revisions to the terms and conditions to this
Agreement. Unless otherwise extended by mutual agreement of the parties, in the event the parties
have not agreed to renew this Agreement prior to September 30 of the last year of the Initial Term
or then current Renewal Term, this Agreement shall terminate upon expiration of the Initial Term or
then current Renewal Term, as the case may be. Each renewal to this Agreement, including any
revisions to this Agreement agreed to between the parties, shall be memorialized in a written
amendment to this Agreement executed by authorized representatives of each of the parties.

7. Termination.

     7.1 Expiration. This Agreement shall terminate on the expiration of the Initial Term or then current
Renewal Term, as applicable, unless the parties shall have agreed to a Renewal Term in accordance
with Section 6.

     7.2 LifeCell Option. This agreement shall terminate, at the option of LifeCell, (i) immediately upon
notice to Distributor in the event of (1) an attempted assignment or delegation of this Agreement
by

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Distributor, without LifeCell’s prior written consent, to an entity that is neither controlled
by, nor controls
Distributor via an ownership interest of at least ninety percent (90%), (2) an inability by
Distributor to pay its debts as they become due, (3) the institution of any proceedings by or
against Distributor for reorganization, bankruptcy or other relief under any insolvency or similar
law, (4) an application for or the appointment of a receiver for Distributor (5) dissolution of
Distributor, whether voluntary or by law, unless dissolved into a an entity that is either
controlled by, or controls Distributor via an ownership interest of at least ninety percent (90%),
or (6) solely if LifeCell and KCI Medical Resources are then Affiliates, a material and
intentional breach by Distributor of Section 1B of that certain Trademark License Agreement by and
between Distributor and KCI Medical Resources, dated the Effective Date (the “KCI License
Agreement”) which is not remedied by Distributor within thirty (30) days after written notice
thereof specifying in reasonable detail the nature of the alleged breach, as determined by final
judgment of an arbitrator pursuant to Section 12 of the KCI License Agreement which is no longer
subject to appeal, and provided LifeCell first follows in good faith the dispute resolution
procedures set forth in Section 10D of the KCI License Agreement; or (ii) upon thirty (30) days
written notice to Distributor in the event of a material breach by Distributor of any of the terms
of this Agreement not otherwise described in clause (i) above, if such notice specifies in
reasonable detail the nature of the alleged breach and Distributor shall have failed to cure such a
breach within thirty (30) days of such notice.

     7.3 Other. This Agreement also shall terminate in accordance with other Sections of this Agreement
that permit or provide for such termination, including, without limitation, Sections 4.4, 4.9(b)
and 16.2.

     7.4 Permitted Activities. Distributor agrees that upon termination of this Agreement, LifeCell may, at
its option, (i) ship Products to Distributor with respect to orders from Distributor duly accepted
by LifeCell during the Term, for sale to and payment by Distributor in accordance with the terms of
this Agreement (treating such terms for this limited purpose as being still in effect), and (ii)
permit Distributor to sell Products in Distributor’s inventory on a non-exclusive basis, but
otherwise subject to and in accordance with the terms of this Agreement (treating such terms for
this limited purpose as being still in effect), until the earlier of such time as (1) all of
Distributor’s then existing inventory of Products has been sold, or (2) the Products have reached
their expiration date. Notwithstanding the foregoing, Distributor, at its option, may return to
LifeCell the actual Products last delivered to Distributor in an amount equal to the amount of
Products purchased by Distributor from LifeCell in the immediately preceding Sales Quarter,
provided that those Products returned have a shelf life of no less than nine (9) months when
received by LifeCell and meet the quality requirements applicable thereto, including without
limitation, the requirements of Section 4.7 and Schedule II (the “Put-Back Amount”), and LifeCell
shall refund to Distributor the dollar amount equal to the Transfer Prices paid by Distributor for
the Sizes returned, multiplied by the number of Units thereof. In the event that Distributor, after
the return to LifeCell of the Put-Back Amount, still retains Products in inventory, LifeCell, at
its option, shall either purchase Distributor’s remaining inventory of Products [***] in effect at the time such Products were purchased by Distributor, provided that the
Products to be repurchased by LifeCell have a shelf life of no less than nine (9) months when
received by LifeCell and meet the quality requirements applicable thereto, including without
limitation, the requirements of Section 4.7 and Schedule II, or permit Distributor to sell the
Products in Distributor’s inventory on a non-exclusive basis for the greater of sixty (60) days
after termination of this Agreement, or until all of Distributor’s then existing inventory of
Products has been sold, or the Products have reached their expiration date.

     7.5 Damages.

          (a) Distributor shall not be entitled to and shall not claim or seek indemnification or any
other form of damages or compensation from LifeCell by reason of termination of this Agreement

 

			
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pursuant to its terms or loss of its rights under this Agreement pursuant to such termination, nor
shall it be entitled to seek compensation or damages on account of prospective profits or income after the
termination date.

          (b) LifeCell shall not be entitled to and shall not claim or seek indemnification or any other
form of damages or compensation from Distributor by reason of termination of this Agreement
pursuant to its terms or loss of its rights under this Agreement pursuant to such termination, nor
shall it be entitled to seek compensation or damages on account of prospective profits or income
after the termination date.

     7.6 Distributor Option. This Agreement shall terminate, at the option of Distributor, (i) immediately
upon notice to LifeCell in the event of (1) an attempted assignment or delegation of this Agreement
by LifeCell without Distributor’s prior written consent, (2) an inability by LifeCell to pay its
debts as they become due, (3) the institution of any proceedings by or against LifeCell for
reorganization, bankruptcy or other relief under any insolvency or similar law, (4) an application
for or the appointment of a receiver for LifeCell, (5) dissolution of LifeCell, whether voluntary
or by law or (6) a change in the control of LifeCell reasonably unacceptable to Distributor or (ii)
upon thirty (30) days written notice to LifeCell in the event of a material breach by LifeCell of
any of the terms of this Agreement not otherwise described in clause (i) above, if LifeCell shall
have failed to cure such breach within 30 days of such notice or (iii) upon 60 days prior written
notice to LifeCell in the event that LifeCell changes any of the Products and such changes, in
Distributor’s reasonable judgment, significantly and adversely affect Distributor. In addition to
the foregoing, Distributor shall have the right to terminate this Agreement at any time, for any
reason in its sole discretion, by giving LifeCell written notice of termination not less than
eighteen (18) months prior to the effective date of termination.

     7.7 Survival. Except as otherwise expressly set forth herein, the obligations of the parties under
Sections, 4.1(d), 4.4, 4.7, 4.9, 4.12, 7.4, 8.1, 9, 10, 11, 12, 14, and 17 through 27 shall survive
any expiration or termination of this Agreement forever.

8. Complaints and Regulatory Notices.

     8.1 Complaints.

          (a) In the event that LifeCell or Distributor at any time during the Term receives any
written, electronic or oral communication that alleges deficiencies related to identity, quality,
durability, reliability, safety, effectiveness or performance concerning the Products or Processed
Tissue (individually or collectively, a “Complaint”), including notices from the FDA regarding any
alleged regulatory non-compliance of such Products or Processed Tissue, or the marketing thereof,
such party shall, within two (2) business days following receipt of notices relating to medical
reports and within 2 business days following receipt of any notice relating to any other Complaint
or such shorter period as may be required by applicable laws, rules or regulations, provide to the
other party all information contained in such Complaint, report or notice and any additional
information relating thereto as may reasonably be requested.

          (b) In the event that any Complaint is received from a Customer, LifeCell and Distributor
shall use their best efforts to reach mutual agreement concerning the handling and resolution of
such customer Complaint. LifeCell shall be responsible for the timely review and analysis of each
Complaint, to document its findings in connection therewith and, as LifeCell deems necessary, to
take corrective action.

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     8.2 Regulatory Notice. Each of LifeCell and Distributor shall promptly but in no event more than five
(5) days following the receipt thereof, notify the other party and provide to such party a copy or
transcription, if available, of any materially adverse communication received from a regulatory
agency relating to the Product or Processed Tissue, the marketing thereof or any related matter.

9. Trademarks.

     9.1 Definition. Distributor acknowledges that LifeCell owns and shall continue to own all right, title
and interest in and to the trademarks or trade names “AlloDerm,” “LifeCell” and “AlloDerm Process”
(the “Trademarks”).

     9.2 Grant. LifeCell hereby grants to Distributor a non-exclusive license to use the Trademarks during
the Term solely in connection with Distributor’s marketing and sales of the Products to Customers
in the Sales Territory as provided herein and, in those jurisdictions in which Distributor has been
appointed an exclusive distributor pursuant to Section 1.1 and provided Distributor’s
distributorship status has not become nonexclusive, LifeCell agrees not to grant a license to any
other person to use the Trademarks during the Term in connection with marketing and sales of the
Products to Customers in the Sales Territory.

     9.3 Distributor’s Trademarks. The parties acknowledge and agree that all right, title and interest in
and to any trademarks, service marks, trade names or brand names developed for the Product by the
Distributor hereunder shall reside solely with the Distributor. The parties further acknowledge
and agree that the use and display of the trademarks developed by the Distributor and/or LifeCell
Trademarks shall be authorized in advance by LifeCell. The Distributor will provide packaging
specifications, labeling and graphics to LifeCell for review and approval. The parties agree that
the Product package will include a statement, to be agreed upon by both parties, indicating
LifeCell as the manufacturer/technology provider.

     9.4 Limitation of Grant. In performing its obligations hereunder, Distributor may use the Trademarks
only for display on packaging or images of the Products and Processed Tissue. All such use and
display shall be solely in connection with the promotion and solicitation of orders for the
Products to Customers in the Sales Territory and only in such fashion as has been expressly
authorized by LifeCell in advance of such use or display. Distributor acknowledges and agrees that
its use of the Trademarks shall at all times be as licensee for the account and benefit of
LifeCell. To the extent that any rights in and to any of the Trademarks are deemed to accrue to
Distributor pursuant to this Agreement, Distributor hereby assigns any and all such rights, at such
time as they may be deemed to accrue, to LifeCell.

     9.5 Distributor Actions. Distributor shall not, at any time, do or cause to be done any act or thing
that (i) will in any way impair the rights of LifeCell in or to the Trademarks or their
registrations, (ii) may affect the validity of any of the Trademarks or (iii) may depreciate the
value of the Trademarks or their reputation. Except as otherwise specifically provided herein,
Distributor shall not, during the Term or thereafter, attach LifeCell’s title or right in and to
the Trademarks. Distributor shall, at LifeCell’s request and sole expense, provide all
commercially reasonable cooperation and assistance in connection with LifeCell’s efforts to
register, maintain, protect and defend the Trademarks and to prosecute any infringers with respect
to the Trademarks. LifeCell shall control all efforts to register, maintain, protect and defend
the Trademarks and to prosecute any infringers with respect to the Trademarks. Distributor agrees
to advise LifeCell promptly of any actual or potential infringement of the Trademarks on becoming
aware of such infringements. LifeCell shall have the sole right to determine if any action shall
be taken against any third party on account of any such infringements or imitations and Distributor
shall not institute any suit or take any action against any third party on account of any such
infringements or imitations without first

-16-

 

obtaining LifeCell’s written consent to do so. Any
recovery as a result of such action shall belong solely to LifeCell, except to the extent that such
recovery represents damage to Distributor, in which event any specified recovery, net of all
expenses paid by LifeCell, including Distributor’s attorneys’ fees, if any, shall
be paid to Distributor, Distributor agrees and undertakes that its use of the Trademarks will be in
strict compliance with any and all applicable laws, rules and regulations, including trademark
laws, and that it will make such marking on the Product packaging or otherwise in connection
therewith as may be required by LifeCell in its sole discretion. Distributor shall use commercially
reasonable efforts to cooperate fully with LifeCell in preparing and causing to be recorded at
LifeCell’s expense such documents as may be necessary or desirable to evidence, protect and
implement the rights of LifeCell pursuant to this Section 9.

     9.6 Pre-Publication Review of Marketing Materials. All Marketing Materials are expressly subject to
pre-publication review and approval with respect to, but not limited to, content, style,
appearance, composition, timing, and media. Prior to the distribution or publication of any
advertising, technical, sales or other materials containing any of LifeCell’s trademarks, service
marks or trade names, or referring to the Products or Processed Tissue (“Marketing Materials”),
Distributor shall provide one copy of proofs of such Marketing Materials to LifeCell for review and
approval (Attention: Vice-President, Marketing, LifeCell Corporation, One Millennium Way,
Branchburg, NJ 08876) at least ten (10) days prior to the anticipated publication of such Marketing
Materials. LifeCell shall use commercially diligent efforts to provide feedback and/or approval (as
the case may be) to Distributor within five (5) days after LifeCell’s receipt of the applicable
Marketing Materials. Notwithstanding anything to the contrary contained herein, Distributor shall
not use, distribute or publish anything containing LifeCell’s trademarks, service marks or trade
names or referring to Products or Processed Tissue without the express prior written consent of
LifeCell.

     9.7 Termination of Use of Trademark. Except as provided in Section 7.4, if for any reason Distributor
ceases to be the Distributor of the Products in the Sales Territory, Distributor’s right to use the
Trademarks shall terminate immediately upon depletion of existing inventory of Product. Except as
provided in Section 7.4, upon any termination of this Agreement, (i) any and all rights granted to
Distributor hereunder, together with any interest in and to the Trademarks and registrations
therefor which Distributor may be deemed to have acquired by virtue thereof or otherwise, shall
immediately cease and without further act or instrument be assigned to and revert to LifeCell, and
(ii) Distributor shall immediately terminate all further use of the Trademarks except as provided
herein. Thereafter, Distributor shall not recommence or continue using any of the Trademarks
without the prior written consent of LifeCell. In addition, Distributor will promptly execute any
instruments reasonably requested by LifeCell which LifeCell reasonably, in its sole discretion,
deems necessary, proper or appropriate to accomplish or confirm the foregoing. Any such
assignment, transfer or conveyance shall be without further consideration other than the mutual
agreement contained herein.

10. Proprietary Rights. To LifeCell’s knowledge, it owns or possesses, or has licenses or other
rights to use and license all patents, patent applications, patent disclosures and inventions,
patent licenses, trademarks, trade names, trade secrets, service marks, brand marks, brand names,
copyrights, copyright applications, inventions, technologies, know-how, formulae and processes
owned by or licensed to LifeCell (collectively, “Proprietary Rights”) necessary for it to comply
with its obligations under this Agreement without any conflict with or infringement of the rights
of any third party. To LifeCell’s knowledge, no claim has been asserted or threatened by any person
regarding the use or licensing of any of the Proprietary Rights by LifeCell or challenging or
questioning the validity, enforceability or effectiveness of any licenses or agreements relating to
Proprietary Rights or asserting any rights in such Proprietary Rights. To LifeCell’s knowledge,
the use by LifeCell of its Proprietary Rights does not violate

-17-

 

or infringe the rights of any third
party. LifeCell is not aware of any third parties who are infringing or violating any of the
Proprietary Rights.

11. Independent Contractor. Distributor is an independent contractor and agrees not to represent
itself in any manner to any third party as a partner, agent, associate or employee of LifeCell. It
is expressly provided that this Agreement does not create a partnership, joint venture or any similar
business association or combination between the parties hereto. It is understood and agreed that
all contracts for the sale of Products to Customers will be between Distributor (or its permitted
sub-distributors) and Customers. Distributor shall have no authority to accept orders for Products
on behalf of LifeCell. Distributor does not have the power to bind LifeCell or to assume or create
any contract or other obligation on behalf of LifeCell.

12. Indemnity.

     12.1 Distributor. Distributor shall indemnify and hold LifeCell harmless from any and all claims,
liabilities, judgments, losses, damages, costs and expenses, including without limitation,
reasonable attorneys’ fees and costs, (“Damages”) successfully asserted against LifeCell by any
person not a party to this Agreement which Damages result from any bodily injury, illness, death,
or property damage if Damages (i) arise out of any statement, representation, warranty or Marketing
Materials issued by Distributor which materially exceeds in scope or is different in meaning from
statements made by LifeCell in LifeCell’s own literature, or specifications or has been previously
approved by LifeCell or (ii) arises solely from the negligence or wrongful activity of Distributor.

     12.2 LifeCell. LifeCell shall indemnify and hold Distributor harmless from any and all Damages by any
person or entity not a party to this Agreement which Damages result from any bodily injury,
illness, death, or property damage if such Damages arise from (i) a defect in any of the Processed
Tissue associated with any Products, (ii) a failure of any of the Processed Tissue associated with
any Products to meet LifeCell’s specifications, (iii) from the negligence or wrongful activity of
LifeCell or (iv) infringement of Proprietary Rights of third parties.

     12.3 Settlements and Compromises. Neither the party having the right to indemnification nor the party
having the indemnification obligation under this Section 12 may settle or compromise any such
claim, suit, action or proceeding unless (i) the other party consents in writing (which consent may
not be unreasonably withheld) and (ii) the terms of that settlement or compromise release the other
party from any and all liability with respect to that claim.

     12.4 Joint Actions. In the event any claim, suit, action or proceeding is asserted against both
LifeCell and Distributor, or one party to this Agreement joins the opposite party in any such
claim, suit, action or other proceeding, a party will be obligated to indemnify the opposite party
with respect to that matter only if, and in proportion to the extent that, such party is first
found to have been at fault with respect to that matter by a final, non-appealable judgment of a
court of law.

13. Compliance with Laws.

          (a) Each of LifeCell and Distributor shall comply with, and be responsible for ensuring that
its employees and agents comply with, all applicable statutes, rules, regulations, orders and
by-laws of the federal government of the United States and any other jurisdiction in the Sales
Territory or any state and any agency, authority or political subdivision thereof.

-18-

 

          (b) Distributor agrees that neither it nor any of its officers, directors, employees or
representatives will, directly or indirectly, in connection with the solicitation of sales of the
Products to Customers in the Sales Territory:

          (i) make any payment to any officer or employee of any government, or to any political
party or official thereof; where such payment either is unlawful under laws applicable
thereto, or would be unlawful under the Foreign Corrupt Practices Act of 1977, as amended,
of the United States of America, if Distributor, as the case may be, were a “domestic
concern”, within the meaning of such act;

          (ii) make any payment to any person, if such payment constitutes an illegal bribe,
illegal kickback or other illegal payment under laws applicable thereto; or

          (iii) commit, directly or indirectly, any other act or omission in violation in any
material respect of any applicable law, regulation, rule or custom having the effect of law.

14. Confidential Information.

     14.1 Definition. LifeCell and Distributor may from time to time provide to the other party (each, a
“Recipient”) certain advice, technical information, know-how and other proprietary data and
information that they respectively own to aid each other in the performance of their respective
obligations under this Agreement. Inasmuch as various of these materials and advice (all of which
will be referred to herein as the “Confidential Information”) will contain confidential information
and/or trade secrets, it is hereby agreed that any Confidential Information which is disclosed by
one party to the other is valuable, proprietary property belonging to the party making such
disclosure, and the Recipient agrees that it will neither use nor disclose any Confidential
Information to any third party (except if necessary in the performance of its duties hereunder),
except with the prior written consent of the other party, provided, however, that any written
Confidential Information shall be marked “Confidential”.

     14.2 Limitation. The Recipient agrees to make copies of that Confidential Information received by the
Recipient as is authorized by the other party and which is necessary to the performance of
Recipient’s obligations under this Agreement. Recipient also agrees to limit disclosure of the
Confidential Information to only those employees of Recipient with a need to know such Confidential
Information in connection with the performance of Recipient’s obligations under this Agreement.

     14.3 Remedies. In the event of breach or threatened breach by the Recipient or its employees of any of
the provisions of Sections 14.1 or 14.2, the other party shall be entitled to an injunction or
judicial order equivalent thereto restraining the Recipient or its employees from disclosing, in
whole or in part, such Confidential Information. Nothing herein shall be construed as prohibiting
the other party from pursuing any other remedies available to it for such breach or threatened
breach, including recovery of damages from the Recipient.

     14.4 Termination. The Recipient agrees, either upon the termination of this Agreement or upon request,
to surrender to the other party all documentary material including Confidential Information, price
lists, catalogues, technical literature, sales literature, samples and any other documents, papers
or other properties of the other party, however previously supplied to the Recipient by the other
party, provided, however, that Distributor may retain a reasonable amount of Marketing Materials as
necessary to sell Products in accordance with Section 7.4. The Recipient may retain one (1) copy or
memorandum of said documentary materials for dispute resolution purposes only.

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     14.5 Survival. The obligations of the Recipient pursuant to this Section 14 shall continue in full
force and effect after the termination of this Agreement regardless of how or when this Agreement
is expires or is terminated.

     14.6 Exclusions. Notwithstanding any other provision in this Section 14, the term “Confidential
Information” does not include information which (i) came into the Recipient’s possession prior to
execution of this Agreement, provided that such information is not known by the Recipient to be
subject to another confidentiality agreement with or other obligation of secrecy to the other
party, or (ii) becomes generally available to the public other than as a result of a disclosure by the Recipient
or any of the Recipient’s directors, officers, employees, agents or advisors, or (iii) becomes
available to the Recipient on a non-confidential basis from a source other than the other party or
the other party’s advisors, provided that such source is not bound by a confidentiality agreement
with or other obligation of secrecy to the other party.

15. Notices. Any notice, transmittal of documents, correspondence or other communication between the
parties to this Agreement required hereunder shall be in writing, addressed to the party to whom
sent and transmitted by certified mail, courier or by facsimile with signed written original to
follow by certified mail or courier. All such notices in compliance with this provision shall be
deemed received by the other party on the next business day after transmission. For purposes of
this Agreement, the addresses of the parties are as follows until changed by written notice from
the party desiring to change its address to the other party.

	 	 	 

	If to LifeCell:

	 	If to Distributor:
	 
	 	 
	LifeCell Corporation 

One Millennium Way 

Branchburg, NJ 08876

Attn: President 

Telephone: 908-947-1102

Facsimile: 908-947-1081

	 	Wright Medical Technology, Inc. 

5677 Airline Road 

Arlington, TN 38002

Attn: President 

Telephone: 901-867-4361

Facsimile: 901-867-4332
	 
	 	 
	With a copy to:
	 	 
	 
	 	 
	LifeCell Corporation 

One Millennium Way 

Branchburg, NJ 08876

Attn: Legal Department 

Telephone: 908-947-1118

Facsimile: 908-947-1081

	 	Wright Medical Technology, Inc. 

5677 Airline Road 

Arlington: TN 38002

Attn: General Counsel 

Telephone: 901-867-4743

Facsimile: 901-867-4398

16. Force Majeure.

     16.1 Definition. Neither party hereto shall be responsible for any loss or damage to the other in the
event that it is unable to fulfill the whole or any part of its obligations hereunder, or is
prevented or delayed from fulfilling the same, due to war or hostilities (whether war be declared
or not), invasion, act of foreign enemies, rebellion, revolution, insurrection, military usurpation
of power, civil war or riot, strike, lockout, commotion, disorder, flood, tempest, earthquake, acts
or omissions of civil or military authority whether legitimate or not, or other causes beyond the
control of either party, including changes in laws or regulations relating to or affecting the
Processed Tissue or the Products and increase in costs of raw materials resulting in commercial
impracticability of selling Products [***].

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

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     16.2 Consequences. Upon the occurrence of an event of force majeure, the party affected shall notify
the other party immediately. The rights and obligations of either party under this Agreement
affected by any such event of force majeure shall be suspended only for the duration and to the
extent of such event of force majeure, and once such event of force majeure ceases to exist, the
rights and obligations of the parties shall continue in full force. In the event that a condition
of force majeure sufficient to suspend a party’s obligations under this Agreement is continuing for
a period of ninety (90) days or more, either party may terminate this Agreement immediately upon
written notice to the other party.

17. Arbitration.

     17.1 Agreement. Any dispute, controversy, claim or other matter in question between the parties hereto
arising out of or relating to this Agreement or any other document or instrument executed by the
parties hereto in connection with this Agreement contemplated in any of the foregoing, including
all issues of fact and law (for the purposes of this Section 17, the “Claim”), shall be settled by
arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration
Association (the “Commercial Arbitration Rules”), except as otherwise expressly set forth herein.
Without limiting the generality of the foregoing, “Claims” shall also include any dispute,
controversy, claim or other matter in question arising out of or related to this Agreement or any
document or instrument executed by the parties hereto in connection herewith, it being the purpose
and intent hereof to evidence the agreement of all the parties hereto to submit all Claims to
arbitration. Notice of demand for arbitration shall be filed in writing with all parties to this
Agreement as to whom the Claim is alleged and with the American Arbitration Association (the
“AAA”). The arbitration proceeding shall be conducted by one disinterested neutral arbitrator who
shall be appointed from a panel in accordance with the Commercial Arbitration Rules of the AAA;
provided, however, that if a neutral arbitrator cannot be selected and appointed by the parties to
the dispute from the first list of names submitted by the AAA, then the AAA shall submit to each
party to the dispute a second list of names of persons chosen from the panel, and if a neutral
disinterested arbitrator cannot be appointed for any reason from said second list, then the AAA
shall then be deemed authorized and directed to and shall select and appoint, on behalf of all
parties to the dispute, one disinterested neutral arbitrator (but in no event shall the AAA appoint
an arbitrator whose name has previously been rejected by the parties to the dispute). All persons
submitted as prospective arbitrators by the AAA shall be persons having substantial knowledge of
substantive commercial laws and the general issues in question for arbitration.

     17.2 Proceedings. The arbitrator shall conduct the arbitration proceeding in the State of New Jersey if
the Distributor initiates the dispute and in Memphis, Tennessee if LifeCell initiates the dispute,
as provided hereinabove and in the Commercial Arbitration Rules. The arbitrator rendering the
judgment or award shall deliver a brief written opinion explaining such judgment or award and the
legal and factual reasons therefor. This agreement to arbitrate shall be specifically enforceable
under applicable law in any court having jurisdiction thereof. The award rendered by the
arbitrator shall be final, such judgment shall be entered upon it in accordance with applicable law
in a court hearing jurisdiction thereof and any such award or judgment shall be subject to appeal
in accordance with the same procedures and an the same legal basis as a final judgment of the trial
court in which such judgment is entered. The parties hereto agree to expedite and cooperate in
obtaining the entry of judgment with respect to such award. A demand for arbitration shall be made
within a reasonable time after the Claim or other matter in question has arisen. In no event shall
the demand for arbitration be made after the date when institution of legal or equitable
proceedings based on such Claim or the matter would be barred by applicable statutes of limitation.

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18. Definitions and Construction.

     18.1 Certain Definitions. Capitalized terms used in this Agreement, unless the context otherwise
requires, have the meanings specified in this Section 18.1 or in the part of this Agreement
referred to below.

          (a) “AAA” shall have the meaning given to such term in Section 17.

          (b) “AATB” shall have the meaning given to such term in Section 4.7.

          (c) “Agreement” shall have the meaning given to such term in the preamble and shall for all
purposes include the Schedules and Exhibits hereto.

          (d) “Agreement Matters” shall have the meaning given to such term in Section 19.

          (e) “Affiliate” means, with respect to any specified person at any time, any person who is
directly or indirectly controlling, controlled by or under common control with such specified
person at such time.

          (f) “Claim” shall have the meaning given to such term in Section 17.1.

          (g) “Clinical Development Programs” means the conduct, in the United States and outside the
United States, as applicable, of preclinical and clinical activities and filing and prosecution of
regulatory applications in support of regulatory approval and regulatory classification in respect
of commercial introduction, marketing and sales of the Products.

          (h) “Commercial Arbitration Rules” shall have the meaning given to such term in Section 17.1.

          (i) “Complaint” shall have the meaning given to such term in Section 8.1.

          (j) “Confidential Information” shall have the meaning given to such term in Section 14.1.

          (k) “Customer” means health care provider who or that performs orthopedic surgery procedures
including, but not limited to, the spine, trauma, oncology, extremities and joint replacement, or,
until June 30, 2011, podiatric wound surgical procedures or other care or treatment of podiatric
wounds.

          (l) “Damages” shall have the meaning given to such term in Section 12.1.

          (m) “ “Distributor” shall have the meaning given to such term in the preamble.

          (n) “Effective Date” shall have the meaning given to such term in the opening paragraph of
this Agreement.

          (o) “FDA” shall have the meaning given to such term in Section 4.7.

          (p) “Initial Term” shall have the meaning given to such term in Section 6.

          (q) “Intellectual Property” means United States and foreign patents and patent applications,
know-how, show-how, trade secrets, inventions, discoveries and technical information,

-22-

 

including
without limitation, information embodied in drawings, designs, copyrights, copyright applications,
trademarks and trademark applications, service marks and service marks applications, material
specifications, processing instructions, formulas, equipment specifications, product
specifications, confidential data, computer software, electronic files, research notebooks,
invention disclosures, research and development reports and the like related thereto and all
amendments, modifications and improvements of any of the foregoing.

          (r) “LifeCell” shall have the meaning given to such term in the preamble.

          (s) “Market Development Programs” shall have the meaning given to such term is Section 5.

          (t) “Marketing Materials” shall have the meaning given to such term in Section 9.6.

          (u) “person” means any individual, corporation, partnership, joint venture, association,
limited liability company, joint stock company, trust, unincorporated organization or any federal,
state, local or other government (or agency or political subdivision thereof).

          (v) “Processed Tissue” means tissue processed by LifeCell in accordance with its proprietary
AlloDerm® process.

          (w) “Products” means all Processed Tissue provided during the Term in the form of (i)
LifeCell’s current human acellular [***] dermal sheet product for use in any and all orthopedic
surgical applications and, until the expiration of the Wind Down Period, LifeCell’s current human
acellular [***] and [***] sheet product in podiatric wound applications, with the exception that
the marketing of product by Distributor for use in [***] (“Sheet Products”), [***]; and
(ii) until June 30, 2011, LifeCell’s current acellular, micronized form, specifically limited to
use in [***] (“Micronized Products”). Products are further described in the Product Specification
as detailed hereto as Schedule II, which may be changed to include additional Products, as they are
developed by LifeCell and made available to Distributor in accordance with the provisions of this
Agreement or otherwise by mutual agreement of the parties. Distributor agrees that it shall not
sell or distribute Products for any non-orthopedic application, or as otherwise limited by or
excluded in the definition above, except that Distributor may sell or distribute the Product for
podiatric wound applications until the expiration of the Wind Down Period.

          (x) “Proprietary Rights” shall have the meaning given to such term in Section 10.

          (y) “Recipient” shall have the meaning given to such term in Section 14.1.

          (z) “Renewal Notice” shall have the meaning given to such Term in Section 6.

          (aa) “Renewal Term” means any and each additional one (1) year term of this Agreement mutually
agreed to by the parties.

          (bb) “Revenue Share Payments” shall have the meaning given to such term in Section 4.3.

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

-23-

 

          (cc) “Sales Quarter” means any three month period or shorter period, as the case may be,
occurring during the Term that commences on the first day of each calendar quarter and terminates
on the earlier of the first day of the immediately following calendar quarter or on the date this
Agreement expires or is terminated.

          (dd) “Sales Territory” means the United States, Greece, Italy, South Africa, Canada, and the
United Kingdom as well as any other country or jurisdiction which the parties mutually agree by
written amendment to this Agreement is to be included in the Sales Territory; provided, however,
that Distributor shall have the first option to exclusively distribute the Products in other
countries or jurisdictions which right shall be lost if Distributor fails to sell the Product in such
additional countries or jurisdictions within 18 months of LifeCell’s reasonable request.

          (ee) “Sales Year” means any twelve (12) month or shorter period, as the case may be, occurring
during the Term that commences on the Effective Date or the anniversary of the Effective Date, as
the case may be, and terminates on the earlier of the date 12 months thereafter or on the date this
Agreement expires or is terminated.

          (ff) “Sizes” means the sizes in which the Products are offered for sale as set forth in the
most current Updated Product Forecast.

          (gg) “Term” means the Initial Term and each Renewal Term, if any.

          (hh) “Trademarks” shall have the meaning given to such term in Section 9.1.

          (ii) “Transfer Prices” shall have the meaning given to such term in Section 4.2.

          (jj) “Units” means the number of Products to be purchased by Distributor for a respective
Sales Quarter as set forth in the most current Updated Product Forecast.

          (kk) (pp) “Updated Product Forecast” shall have the meaning given to such term in Section
4.8(a).

     18.2 Other Definitions. Other terms may be defined elsewhere in this Agreement and shall have the
meanings there indicated.

     18.3 Gender, etc. Words used in this Agreement, regardless of the number or gender specifically used,
shall be deemed and construed to include any other number, singular or plural, and any other
gender, masculine, feminine or neuter, as the context shall require.

     18.4 Certain Constructions. As used in this Agreement, unless expressly stated otherwise, references
to:

          (a) (i) “include” and “including” mean “include, without limitation” and “including, without
limitation”, respectively, (ii) the words “hereof’, “herein” and “hereunder”, and similar words,
refer to this Agreement as a whole and not to any particular section, subsection, paragraph or
provision of this Agreement and (iii) “or” means “either or both”,

          (b) Unless otherwise specified, all reference in this Agreement to sections, subsections,
paragraphs or schedules are deemed references to the corresponding sections, subsections,
paragraphs or schedules in this Agreement.

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

-24-

 

          (c) References to “days”, “months”, “quarters” and “years” in this Agreement, unless
otherwise specifically indicated, shall mean calendar days, months, quarters and years,
respectively,

     18.5 Captions. The section, subsection and paragraph headings contained herein are for convenience of reference
only and shall not affect or control the construction or interpretation of any provision hereof.

19. Governing Law and Jurisdiction. The validity, interpretation, performance, and enforcement of
this Agreement and all matters arising directly and indirectly from this Agreement (collectively
“Agreement Matters”) shall be governed by the internal laws of the State of Delaware, without
regard to any conflicts or choice of law rules. The parties hereby irrevocably submit to the
exclusive personal jurisdiction of the State and Federal courts located in Delaware for the purpose
of any suit, action, proceeding or judgment which, directly or indirectly, arises out of any
Agreement Matters; provided that a party to this Agreement shall be entitled to enforce an order or
judgment of a Delaware court (or a federal appellate court of competent jurisdiction issuing the
same on appeal from a Delaware court) in any other court having jurisdiction over the other party
hereto. Each of the parties hereby irrevocably waives, to the fullest extent permitted by
applicable law, any objection that it may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding brought in such a
court has been brought in an inconvenient forum.

20. Public Announcements. Unless otherwise required by applicable laws, rules or regulations of any government, agency or
political subdivision thereof or the rules of any securities exchange or market on which such
party’s securities are listed, neither party shall issue a press release or make any public
announcement relating to this Agreement or the transactions contemplated hereby or subsequent
developments relating to the relationship of the parties hereto without first providing a copy of
such release or announcement to the other party and the prior consent of the other party, which
consent shall not be unreasonably withheld. In the case of any announcement required by applicable
laws, rules or regulations of any government, agency or political subdivision, thereof or the rules
of any securities exchange or market on which such party’s securities are listed, neither party
shall issue a press release or make any public announcement relating to this Agreement or the
transactions contemplated hereby or subsequent developments relating to the relationship of the
parties hereto without first providing a copy of such proposed announcement to the other party as
soon as practicable prior to the proposed release thereof.

21. Amendment; Remedies; Waiver. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and its
terms and conditions may be waived, but only by a written instrument signed by the parties or, in
the case of a waiver, by the party waiving compliance. All remedies available to either party for
breach of this Agreement are cumulative and may be exercised concurrently or separately. Exercise
of any one remedy shall not be deemed an election of such remedy to the exclusion of other
remedies. No delay on the part of any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any waiver on the part of any party of any right,
power or privilege hereunder, nor any single or partial exercise of any right, power or privilege
hereunder, preclude any other or further exercise thereof or the exercise of any other right, power
or privilege which that party might otherwise have hereunder, or at law or in equity.

22. Severability. Should any provision of this Agreement be held unenforceable or invalid, then the parties hereto
agree that such provision shall he deemed modified to the extent necessary to render it lawful and
enforceable, or if such a modification is not possible without materially altering the intention of
the parties hereto, then such provision shall be severed herefrom. In such case the validity of
the

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remaining provisions shall not be affected and this Agreement shall be construed as if such
provision were not contained herein.

23. Assignment. Other than as expressly set forth herein, neither party shall assign or subcontract the whole or
any part of this Agreement without the other party’s written consent.

24. Entire Agreement. All agreements and understandings between the parties relating to the purchase and distribution
of the Products in the Sales Territory are embodied in this Agreement. This Agreement supersedes
any previous agreements and understandings between the parties as to the subject matter hereof and
is entire in itself and not a part of any other agreement, and no promises, covenants, or
representations of any kind or nature other than those expressly stated herein have been made to
induce either party to enter into this Agreement. All other terms and conditions, whether express,
or implied by statute, common law, trade usage or custom are hereby excluded and extinguished.

25. Construction of Agreement. Both parties have participated fully in the preparation and revision of this Agreement. Any
rule of construction to the effect that ambiguities are to be resolved against the drafting party
shall not apply to the interpretation of this Agreement.

26. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same instrument.

27. Further Assurances. Each party will do such further acts, including executing and delivering additional agreements
or instruments as the other may reasonably require, to consummate, evidence, confirm or give effect
to the agreements contained in this Agreement.

(Remainder of page intentionally left blank)

-26-

 

     IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have
executed and delivered this Agreement as of the date first above written.

	 	 	 	 	 
	 	LIFECELL CORPORATION

 	 
	 	By:  	/s/ Lisa Colleran           1-28-11	 
	 	 	Name:  	Lisa Colleran 	 
	 	 	Title:  	President 	 
	 
	 	WRIGHT MEDICAL TECHNOLOGY, INC

 	 
	 	By:  	/s/ Gary D. Henley
 	 
	 	 	Name:  	Gary D. Henley 	 
	 	 	Title:  	CEO 	 
	 

Attachments:

	 	Schedule I — Processed Tissue Storage, Handling and Transportation Specifications and
Procedures
	 
	 	Schedule II — Product Specification

-27-

 

Schedule I

Processed Tissue Storage, Handling and Transportation Specifications and Procedures

The following policies and procedures to be incorporated into Distributor’s existing protocols are
based on the Standards of the American Association of Tissue Banks (1998) and specifically address
the issue of “Tissue Distribution Intermediates” (Section M). Technical assistance is available
from LifeCell to facilitate the incorporation of these procedures.

Appropriate documentation is critical. Particular attention should be paid to the following areas:

Documentation of receipt of tissue

Lot/graft numbers

Expiration date

Received by

Date of receipt

Condition of packaging

Documentation of storage conditions

Temperature monitoring

Documentation of distribution

     Distributor shall maintain distribution records that permit the tracing of the Processed
Tissue to the consignee. Distribution records must include:

Date of order

Consignee name and address

Identification of person placing the order

Type and quantity of tissue ordered

Information regarding tissue shipped

Identification numbers of tissue’s

Expiration date of tissue Date of shipment

Mode of transportation

Name of Individual filling order

Documentation of final package inspection prior to distribution

Additional requirements:

Storage Equipment

Distributor must insure that all storage equipment (i.e., refrigerator(s)) is regularly maintained
(i.e. preventative maintenance program), calibrated, and monitored.

Monitoring of refrigerators may consist of the installation of a continuous temperature recording
device or a routine (once each working day) and documented check of temperature utilizing a
refrigerator thermometer. Acceptable temperature range for the storage of Processed Tissue is 1 -
10°C. Processed

-28-

 

Tissue may be stored in a standard household refrigerator provided that this temperature range can
be maintained.

Adverse Outcomes

All reports of complaints or adverse outcomes must be required to be forwarded immediately to
LifeCell.

Return of Tissue

All expired, returned, damaged, or otherwise compromised packages or grafts must be returned to
LifeCell.

Labels

Packages containing Processed Tissue cannot be relabeled. Existing labeling cannot be altered.

-29-

 

Schedule II

Product Specification

See attached.

 

 

			
	Wright Medical Technology
	 	Document No.: PS02-0013
	Issued
	 	Rev.: 07

Product Specification for GRAFTJACKET®

Regenerative Tissue Matrix

	 	 	 

	Revision Draft Date:

	 	July 26, 2007
	Issue Date:

	 	July 31, 2007
	Effective Date:

	 	July 31, 2007
	Supersedes:

	 	PS02-0013, Rev.: 06
	Supersedes Date:

	 	January 25, 2007

	 	 	 

	Prepared by:

	 	Mandy Turner, Product Development Engineering
	 
	 	 
	Approved by:

	 	Ann Burgess, Biologics Development
	 
	 	 
	 

	 	Barbara Blum, Material Engineering
	 
	 	 
	 

	 	Connie Howell, Industrial Engineering
	 
	 	 
	 

	 	Eric Gay, Marketing
	 
	 	 
	 

	 	Brian Young, Regulatory Affairs
	 
	 	 
	 

	 	Sam Wheeler, International Marketing
	 
	 	 
	 

	 	Phil Ward, Production Management
	 
	 	 
	 

	 	Tim Smith, Process Engineering
	 
	 	 
	 

	 	Rodney Williams, Quality Assurance
	 
	 	 
	 

	 	Scott Shankle, Quality Engineering
	 
	 	 
	 

	 	Carey Michael, Purchasing
	 
	 	 
	 

	 	Joel Batts, Clinical
	 
	 	 
	 

	 	Denise Carey, Sterilization Assurance
	 
	 	 
	 

	 	Andy Fronk, Packaging Engineering
	 
	 	 

Document Release Section

	 	 	 	 	 
	Dept/Function	 	Approver	 	Signature and Date
	 
	 	 	 	 
	Documentation

	 	Lori Oliver
	 	/s/ Lori Oliver                                  7-31-2007

			
	 	 	 
	
Proprietary Information

Do not copy or write on this document.

	 	Page 1 of 5

 

 

			
	Product Specification for GRAFTJACKET® Regenerative Tissue Matrix

Issued
	 	Document No.: PS02-0013

Rev.: 07

	1.0	 	Objective
	 
	 	 	This specification describes the product requirements for GRAFTJACKET®
Regenerative Tissue Matrix (manufactured by LifeCell Corporation, Branchburg, NJ).
	 
	2.0	 	Document Reference Summary

	 	•	 	American Association of Tissue Banks (AATB): Standards for Tissue Banking Guidelines
	 
	 	•	 	21 CFR 1271, Subpart C — Eligibility Determination for Donors of Human Cells,
Tissues, and Cellular and Tissue-Based Products
	 
	 	•	 	21 CFR 1271, Subpart D — Current Good Tissue Practice for Human Cell, Tissue, and
Cellular and Tissue-Based Product Establishments.
	 
	 	•	 	G102-0163 Package Challenge/Distribution Testing Procedure

	3.0	 	Product Description

	 	3.1	 	General Overview: GRAFTJACKET® is human dermal tissue that has been
processed to remove all epidermal and dermal cells while maintaining its biologic
matrix. It is provided freeze-dried and must be rehydrated prior to use. Once
rehydrated, the product may be sutured, folded, or easily trimmed with scissors or a
scalpel in the operating room.
	 
	 	3.2	 	Intended Use: The GRAFTJACKET® matrix is used to provide supplement
support, protection, and reinforcement of tendon and ligamentous tissue; to be used as
a periosteal patch or covering; or for protection and support of bone and tendons in
hand surgery.
	 
	 	3.3	 	Related Devices: There are no related devices.
	 
	 	3.4	 	Post-market Surveillance: Post-market surveillance will be investigated
through complaint history, surgeon feedback, and/or clinical evaluations of both WMT
and related competitor products.

	4.0	 	Proposed Size Offering

	 	4.1	 	GRAFTJACKET® matrix will have multiple size offerings ranging from 1
to 5 cm in width to 4 to 12 cm in length.
	 
	 	4.2	 	GRAFTJACKET® matrix may have specific size options with the
approximate dimensions of 5 X 5 cm (approximately 2” X 2”), 5 X 10 cm (approximately 2”
X 4”), 2 X 4 cm (approximately 0.8” X 1.6”), 4 X 7 cm (approximately 1.6” X 2.8”), and
1 X 12 cm (0.4” X 4.7”).
	 
	 	4.3	 	GRAFTJACKET® matrix will have different thicknesses ranging from
0.013” to 0.099”.
	 
	 	4.4	 	GRAFTJACKET® matrix may have different thickness ranges for specific
size options:

	 	4.2.1	 	The average sheet thickness for the standard
GRAFTJACKET® matrix 5 X 5 cm, 4 X 7 cm, and 5 X 10 cm sizes may fall
in the range of 0.035” to 0.060”.
	 
	 	4.2.2	 	The average sheet thickness for the thin GRAFTJACKET®
matrix 2 X 4 cm size may fall in the range of 0.013” to 0.024”.
	 
	 	4.2.3	 	The average sheet thickness for the thick
GRAFTJACKET® matrix 2 X 4 cm, 5 X 5 cm, and 4 X 7cm sizes may fall in
the range of 0.040” to 0.070”.
	 
	 	4.2.4	 	The average sheet thickness for the ultra thick
GRAFTJACKET® matrix 4 X 7 cm size may fall in the range of 0.071” to
0.099”.
	 
	 	4.2.5	 	The average sheet thickness for the long strip
GRAFTJACKET® matrix 1 X 12 cm size may fall in the range of 0.050” to
0.075”.

	 	4.5	 	Each size will be provided for single patient use in packaged, sealed containers.

			
	 	 	 
	Proprietary Information

Do not copy or write on this document.
	 	Wright Medical Technology

Page 2 of 5

 

 

			
	Product Specification for GRAFTJACKET® Regenerative Tissue Matrix

Issued
	 	Document No.: PS02-0013

Rev.: 07

	5.0	 	Product Features and Functional Requirements

	 	5.1	 	Product thickness shall be determined by LifeCell Corporation in the dry state
per their standard procedure.
	 
	 	5.2	 	Product sheets shall be visibly uniform in appearance and white or buff
colored.
	 
	 	5.3	 	The donor tissue shall be recovered in accordance with FDA regulations and AATB
guidelines. Donor history and tissues shall be examined to rule out pathogenic
contamination.
	 
	 	5.4	 	The material shall be processed to ensure there is no damage to the underlying
matrix of the tissue. The patented LifeCell process shall remove epidermal and dermal
cells, while preserving the collagen, elastin, blood vessel channels, and proteoglycan
proteins.
	 
	 	5.5	 	Material shall be biocompatible and conducive to cellular and vascular infiltration.
	 
	 	5.6	 	Residual moisture of the material shall be less than ≤ 6%.
	 
	 	5.7	 	The product is supplied freeze-dried.
	 
	 	5.8	 	Functional requirements

	 	5.8.1	 	Fixation for GRAFTJACKET® shall be compatible with
current surgical techniques such as sutures, surgical tacks, etc.
	 
	 	5.8.2	 	Rehydrated product shall be flexible and malleable for surgical manipulation.
	 
	 	5.8.3	 	If not totally saturated, GRAFTJACKET® readily
absorbs fluids such as saline, blood, cells, or marrow.
	 
	 	5.8.4	 	GRAFTJACKET® shall resist tearing and deformation in both wet and dry states.

	6.0	 	Materials and Processes

	 	6.1	 	Manufacturing Processes

	 	6.1.1	 	Human dermal tissues from which GRAFTJACKET® is
produced shall be procured in accordance with FDA regulations and AATB
guidelines.
	 
	 	6.1.2	 	Dermal and epidermal cells shall be removed and the product
freeze-dried by LifeCell Corporation per their patented processes.
	 
	 	6.1.3	 	GRAFTJACKET® shall be certified to conform to the
appropriate WMT material specification upon receipt.

	 	6.2	 	Packaging

	 	6.2.1	 	GRAFTJACKET® shall be packaged with one piece of
unattached, non-woven backing that is clearly labeled to indicate that it must
be removed, except for size options less than 2 cm wide which will not have a
backing (i.e., the long strip GRAFTJACKET® matrix, 1 X 12 cm).
Removal should occur after partial rehydration.
	 
	 	6.2.1	 	GRAFTJACKET® shall be packaged in clean, heat-sealed
peel pouches, freeze-dried, and sealed within a foil inert atmosphere.
	 
	 	6.2.2	 	Labeling shall clearly indicate that the inner pouch and contents are not sterile.

			
	 	 	 
	Proprietary Information

Do not copy or write on this document.
	 	Wright Medical Technology

Page 3 of 5

 

 

			
	Product Specification for GRAFTJACKET® Regenerative Tissue Matrix
	 	Document No.: PS02-0013
	Issued
	 	Rev.: 07

	6.0	 	Materials and Processes (continued)

	 	6.3	 	Sterilization

	 	6.3.1	 	The tissues shall be prepared aseptically.

	 	6.3.1.1	 	Product shall be aseptically prepared in a controlled area.
	 
	 	6.3.1.2	 	Representative samples of the final product tested from the donor lot
must be free of bacterial and fungal pathogens using microbiological
tissue cultures in accordance with AATB guidelines.
	 
	 	6.3.1.3	 	All processing shall be done in conjunction with antibiotics.
Antibiotics utilized in transport or processing of the tissue are to
appear on the final labeling.

	7.0	 	Product Performance Specifications

	 	7.1	 	Performance Requirements

	 	7.1.1	 	Products must meet appropriate FDA regulations and AATB guidelines.
	 
	 	7.1.2	 	The aseptically prepared product shall have an expiration date
of two years from the date of manufacture, clearly indicated on the package.
	 
	 	7.1.3	 	GRAFTJACKET® may be transported in ambient
temperature, then refrigerated immediately on receipt to maximize the shelf
life. Unopened product shall be stored under refrigeration at 1 to 10°C
(34-50°F). Per the manufacturer, temperature fluctuations during shipping will
not affect the product adversely.
	 
	 	7.1.4	 	Packaging components must pass the challenge/distribution test
per the WMT document G102-0163, Package Challenge/Distribution Testing
Procedure.
	 
	 	7.1.5	 	Prior to use, GRAFTJACKET® must be rehydrated. At
least 200 ml of rehydration fluid (sterile normal saline or sterile lactated
Ringer’s solution) must be used. GRAFTJACKET®, with backing, must be
submerged for at least five minutes in a dish of 100 ml of rehydration fluid.
After five minutes the backing must be removed, and the product submerged for an
additional five minutes in a separate dish of 100 ml of rehydration fluid. When
fully rehydrated, the product is soft and pliable throughout.
	 
	 	 	 	NOTE: Thicker grafts may take up to 30 minutes or longer to completely
rehydrate. The ultra thick GRAFTJACKET® matrix may take up to 1
hour or longer to completely rehydrate.
	 
	 	7.1.6	 	GRAFTJACKET® shall be easily sutured without tearing.

	 	7.2	 	Test Specifications
	 
	 	 	 	[***]

	8.0	 	Clinical and Regulatory Plan

	 	8.1	 	Clinical Evaluation Requirements
	 
	 	 	 	Clinical evaluation will be undertaken after commercialization as defined by the
clinical & regulatory, research & development, marketing groups, and surgeon
consultants.

			
	 	 	 
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	 	Wright Medical Technology
	Do not copy or write on this document.
	 	Page 4 of 5

 

			
	[***]	 	Indicates portions of this exhibit that have been omitted and filed separately with the
Securities and Exchange Commission pursuant to a request for confidential treatment.

 

 

			
	Product Specification for GRAFTJACKET® Regenerative Tissue Matrix
	 	Document No.: PS02-0013
	Issued
	 	Rev.: 07

	8.0	 	Clinical and Regulatory Plan (continued)

	 	8.2	 	Regulatory Clearance/Approvals

	 	8.2.1	 	GRAFTJACKET® is regulated by the FDA in accordance
with 21 CFR, Part 1271, as human tissue for transplantation.
	 
	 	8.2.2	 	This product will be selectively registered outside the US by a
joint determination of International Marketing, Regulatory Affairs, and LifeCell
Corporation.

	9.0	 	Production Launch and Distribution Logistics

	 	9.1	 	GRAFTJACKET® Regenerative Tissue Matrix was launched in the U.S. in
the third quarter of 2002. The thin GRAFTJACKET® Matrix 2 X 4 cm product was
launched in the fourth quarter of 2003. The thick GRAFTJACKET® Matrix 4 x 7
cm product was distributed in the fourth quarter of 2003. The thick
GRAFTJACKET® Matrix 2 x 4 cm was available in the first quarter of 2005.
The thick GRAFTJACKET® Matrix 5 x 5 cm product was distributed in the first
quarter of 2005. The ultra thick GRAFTJACKET® Matrix 4 x 7 cm product was
launched in the second quarter of 2005. The thick GRAFTJACKET® Matrix 4 x 7
cm product was available in the first quarter 2007. The long strip
GRAFTJACKET® Matrix 1 X 12 cm product will be launched in the fourth quarter
of 2007.
	 
	 	9.2	 	Launch support materials will include brochures, surgical techniques,
informational videos, press releases, etc. Product usage training will be conducted in
regional training sessions.
	 
	 	9.3	 	This product will be selectively launched outside the US by a joint determination of International
Marketing and Regulatory Affairs.

	10.0	 	Production Costs

	 	10.1	 	Material transfer costs are outlined in the effective Supply and Development
Agreement between LifeCell Corporation and Wright Medical Technology.

	11.0	 	Document Changes
	 
		 	(02) Material Change
	 
	 	 	Approvals            Added Carely Michael and removed Shannon Cummings.
	 
	 	 	Added new product size to the Product Specification.

	 	Section 3.2 	 	Updated Intended for Use section per the current IFU.
	 
	 	Section 3.4 	 	Added post-market surveillance.
	 
	 	Section 4.0 	 	Broadly defined possible product sizes and thickness ranges.
	 
	 	Section 4.1 	 	Added new product size dimensions.
	 
	 	Section 4.2 	 	Added thickness range for new product size.
	 
	 	Section 5.1 	 	Deleted specific thickness specifications for specific products. This
information is part of the Material Specification.
	 
	 	Section 5.6 	 	Updated a residual moisture content of 5% to £ 6%.
	 
	 	Section 6.2.1 	 	Indicated new product(s) may not have a non-woven backing.
	 
	 	Section 8.2.2 	 	Added “and LifeCell Corporation.”

	 
	 	Section 9.1 	 	Updated for previous launches and planned launch of new product size.

			
	 	 	 
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	 	Page 5 of 5

 

 

Document Distribution Summary Sheet

	 	 	 

	Document

Contact

	 	Upon receipt of a new controlled document, put document into documentation book and shred
obsolete document (when new document is a revision). Inform appropriate personnel of the revisions made, or of
the new document.
	 
	 	 
	Document No:

	 	PS02-0013
	Revision:

	 	07
	Issued Date:

	 	July 31, 2007
	Document Title:

	 	
Product Specification for GRAFTJACKET® Regenerative Tissue Matrix

Initial distribution of the document indicated above is to the following locations:

	 	 	 	 	 	 	 
	Distribution Location	 	Code	 	Contact/Backup
	 
	 	 	 	 	 	 
	Writer

	 	DDF
	 	Mandy Turner
	 
	 	 	 	 	 	 
	C&RA

	 	 	012	 	 	Cherita Walton/Angela Smith
	 
	 	 	 	 	 	 
	R&D Hips and Knees

	 	 	016	 	 	Maleesha Morris
	 
	 	 	 	 	 	 
	Bio. Development Lab

	 	 	026	 	 	Linda Morris
	 
	 	 	 	 	 	 
	Mat./Process Research

	 	 	065	 	 	Maleesha Morris

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