Document:

Exhibit 4.2

 

EXECUTION VERSION

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of March 24, 2015

 

to

 

INDENTURE

 

Dated as of March 24, 2015

 

Among

 

Washington Prime Group, L.P.

 

and

 

U.S. Bank National Association, as Trustee

 

$250,000,000 3.850% Senior Notes due 2020

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE I   DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.1
    	
Certain Terms Defined in   the Indenture
    	
1
    
	
Section 1.2
    	
Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   CREATION, FORMS AND TERMS AND CONDITIONS OF THE 2020 SECURITIES
    	
7
    
	
 
    	
 
    
	
Section 2.1
    	
Creation of the 2020   Securities
    	
7
    
	
Section 2.2
    	
Form of the 2020   Securities
    	
7
    
	
Section 2.3
    	
Terms and Conditions of the   2020 Securities
    	
7
    
	
Section 2.4
    	
Designation of Strip Center   Properties
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE III   CERTAIN COVENANTS
    	
9
    
	
 
    	
 
    
	
Section 3.1
    	
Limitation on All Outstanding   Indebtedness
    	
10
    
	
Section 3.2
    	
Limitations on Incurrence   of Secured Indebtedness
    	
10
    
	
Section 3.3
    	
Maximum Ratio of   Consolidated Income Available for Debt Service to Annual Service Charge
    	
10
    
	
Section 3.4
    	
General
    	
10
    
	
Section 3.5
    	
Maintenance of Total Unencumbered   Assets
    	
11
    
	
Section 3.6
    	
Delivery of Information
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   REGISTRATION, TRANSFER AND EXCHANGE
    	
11
    
	
 
    	
 
    
	
Section 4.1
    	
Restricted 2020 Securities
    	
11
    
	
Section 4.2
    	
Temporary Securities
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE V   LEGENDS
    	
14
    
	
 
    	
 
    	
 
    
	
Section 5.1
    	
Legends
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   MISCELLANEOUS
    	
16
    
	
 
    	
 
    
	
Section 6.1
    	
Relationship with Indenture
    	
16
    
	
Section 6.2
    	
Trust Indenture Act   Controls
    	
16
    
	
Section 6.3
    	
Additional Interest
    	
16
    
	
Section 6.4
    	
Governing Law
    	
17
    
	
Section 6.5
    	
Multiple Counterparts
    	
17
    
	
Section 6.6
    	
Severability
    	
17
    
	
Section 6.7
    	
Ratification
    	
17
    
	
Section 6.8
    	
Headings
    	
17
    
	
Section 6.9
    	
Effectiveness
    	
17
    

 

i

 

	
SCHEDULE   A
    	
 
    	
Form of   Officers’ Certificate
    
	
 
    	
 
    	
 
    
	
EXHIBIT A
    	
 
    	
Form of   2020 Security
    
	
 
    	
 
    	
 
    
	
EXHIBIT B
    	
 
    	
Form of   Transfer Certificate for Exchange or Transfer from Rule 144A Global Note   to Regulation S Global Note Prior to the Expiration of the Distribution   Compliance Period
    
	
 
    	
 
    	
 
    
	
EXHIBIT C
    	
 
    	
Form of   Transfer Certificate for the Transfer or Exchange from Rule 144A Global   Note to Regulation S Global Note After the Expiration of the   Distribution Compliance Period
    
	
 
    	
 
    	
 
    
	
EXHIBIT D
    	
 
    	
Form of   Transfer Certificate for Exchange or Transfer from Regulation S Global   Note to Rule 144A Global Note
    
	
 
    	
 
    	
 
    
	
EXHIBIT E
    	
 
    	
Form of   Certificate of Beneficial Ownership
    

 

ii

 

FIRST SUPPLEMENTAL INDENTURE

 

This First Supplemental Indenture, dated as of March 24, 2015 (this “First Supplemental Indenture”), between Washington Prime Group, L.P., an Indiana limited partnership (the “Operating Partnership”) and U.S. Bank National Association, as trustee, supplements that certain Indenture, dated as of March 24, 2015, between the Operating Partnership and the Trustee (the “Base Indenture” and together with the First Supplemental Indenture, as it may be further supplemented or amended from time to time, the “Indenture”).

 

RECITALS

 

Whereas, the Operating Partnership has duly authorized the execution and delivery of the Base Indenture to provide for the issuance from time to time of its Securities, unlimited as to principal amount, to bear such fixed or floating rates of interest, to mature at such time or times, to be issued in one or more series and to have such other provisions as provided for in the Base Indenture;

 

Whereas, the Base Indenture provides that the Securities issued thereunder shall be in the form as may be established by or pursuant to a Board Resolution and set forth in an Officer’s Certificate or as may be established in one or more supplemental indentures thereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Base Indenture; and

 

Whereas, pursuant to the terms of the Base Indenture, the Operating Partnership seeks to provide for the establishment of the terms of the 2020 Securities (as defined below).

 

NOW, THEREFORE, THIS FIRST SUPPLEMENTAL INDENTURE WITNESSETH:

 

For and in consideration of the premises stated herein, the parties hereto hereby enter into this First Supplemental Indenture, for the equal and proportionate benefit of all Holders of the Securities, as follows:

 

ARTICLE I

 

DEFINITIONS

 

Section 1.1            Certain Terms Defined in the Indenture.  For purposes of this First Supplemental Indenture, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Base Indenture, as amended and supplemented by this First Supplemental Indenture.

 

Section 1.2            Definitions.  For all purposes of this First Supplemental Indenture:

 

“2020 Securities” means the Initial 2020 Securities, the Additional 2020 Securities, if any, and any related Exchange Securities.

 

“Acquired Indebtedness” means Indebtedness (i) of any Person existing at the time such Person is acquired by the Operating Partnership or one of its Subsidiaries or (ii) assumed by the

 

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Operating Partnership or one of its Subsidiaries in connection with the acquisition of any asset or group of assets from any Person, in each case, other than Indebtedness incurred in connection with, or in contemplation of, such Person becoming a Subsidiary or the related acquisition, as applicable. Acquired Indebtedness shall be deemed to be incurred on the date such Person becomes a Subsidiary or date of the related acquisition, as applicable.

 

“Additional Interest” means all additional interest then owing on the 2020 Securities pursuant to the Registration Rights Agreement.

 

“Additional 2020 Securities” has the meaning set forth in Section 2.3(g).

 

“Annual Service Charge” for any period means the aggregate interest expense for such period on, and the amortization during the period of any original issue discount of, Indebtedness of the Operating Partnership and its Subsidiaries on a consolidated basis.

 

“Base Indenture” has the meaning set forth in the recitals hereto.

 

“Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions in The City of New York are authorized or obligated by law, regulation or executive order to close.

 

“Calculation Date” for the Treasury Rate means the third Business Day preceding the redemption date.

 

“Capitalization Rate” means 7.50% for malls and other real properties (excluding Strip Center Properties) and 7.00% for Strip Center Properties.

 

“Clearstream” means Clearstream Banking, société anonyme, or any successor.

 

“Closing Date” means March 24, 2015.

 

“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable to the remaining term of the 2020 Securities to be redeemed to the then assumed stated maturity date of March 2, 2020 that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of the 2020 Securities to be redeemed.

 

“Comparable Treasury Price” means, with respect to any redemption date for the 2020 Securities, (1) the average of three Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of five Reference Treasury Dealer Quotations, or (2) if the Operating Partnership obtains fewer than five such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

 

“Consolidated EBITDA” means, for any period, the sum of Mall EBITDA and Strip Center EBITDA for such period.

 

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“Distribution Compliance Period” means “distribution compliance period”, as such term is defined in Regulation S.

 

“DTC” means The Depository Trust Company, its nominees and their successors and assigns.

 

“Euroclear” means Euroclear Bank SA/NV, or any successor.

 

“Exchange Securities” means debt securities of the Operating Partnership issued in the Exchange Offer and having terms identical in all material respects to the Initial 2020 Securities, except that the transfer restrictions under the Securities Act shall be eliminated.

 

“Exchange Offer” means an offer made by the Operating Partnership pursuant to the Registration Rights Agreement to exchange the Initial 2020 Securities or Additional 2020 Securities, as applicable, for the related Exchange Securities.

 

“First Supplemental Indenture” has the meaning set forth in the recitals hereto.

 

“Future Securities” has the meaning set forth in Article III.

 

“Global Security” means the 2020 Securities, in global form and registered in the name of DTC or its nominee.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers that the Operating Partnership appoints to act as the Independent Investment Banker from time to time.

 

“Indenture” has the meaning set forth in the recitals hereto.

 

“Initial 2020 Securities” means the $250 million in aggregate principal amount of the Operating Partnership’s 3.850% Senior Notes due 2020 issued under this Indenture on the Closing Date.

 

“Interest Payment Date” has the meaning set forth in Section 2.3(c).

 

“Mall EBITDA” means, for any period, without duplication, the Operating Partnership’s consolidated net income or loss from mall and other real properties (excluding Strip Center Properties), including amounts reported in discontinued operations, excluding net derivative gains or losses and gains or losses on dispositions of real estate investments as reflected in the reports filed by the Operating Partnership under the Exchange Act (or, at any time that the Operating Partnership is not subject to the information requirements of the Exchange Act, as reflected in the Operating Partnership’s internal consolidated financial statements), before deductions, for: (i) interest expense; (ii) provision for taxes based on income; (iii) depreciation, amortization and all other non-cash items, as the Operating Partnership determines in good faith, deducted in arriving at consolidated net income or loss; (iv) extraordinary items; (v) non-recurring items, as the Operating Partnership determines in good faith, including prepayment penalties; and (vi) minority interests.

 

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In each case for the relevant period, the Operating Partnership will reasonably determine the amounts in accordance with GAAP, except to the extent GAAP is not applicable with respect to the determination of all non-cash and non-recurring items.  Mall EBITDA will be adjusted, without duplication, to give pro forma effect: (a) in the case of any assets placed in service or removed from service since the beginning of the period and on or prior to the date of determination, to include or exclude, as the case may be, any Mall EBITDA earned or eliminated as a result of the placement of such assets in service or removal of such assets from service as if the placement of such assets in service or removal of such assets from service occurred at the beginning of the period; and (b) in the case of any acquisition or disposition of any asset or group of assets since the beginning of the period and on or prior to the date of determination, including, without limitation, by merger, or share or asset purchase or sale, to include or exclude, as the case may be, any Mall EBITDA earned or eliminated as a result of the acquisition or disposition of such asset or group of assets as if the acquisition or disposition occurred at the beginning of the period.  For the purposes of this definition, Mall EBITDA will be determined without the deduction to earnings of transaction expenses, merger costs, impairment charges, corporate level general and administrative expenses and other corporate expenses such as land holding costs, employee and director stock and stock option expense and pursuit cost write-offs as the Operating Partnership determines in good faith.

 

“Operating Partnership” has the meaning set forth in the recitals hereto.

 

“Primary Treasury Dealer” means a primary United States government securities dealer in the United States of America.

 

“Reference Treasury Dealer” means: each of (i) Citigroup Global Markets Inc., J.P. Morgan Securities LLC or RBS Securities Inc. (or an affiliate of any of the foregoing that is a Primary Treasury Dealer); provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Operating Partnership will substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the Operating Partnership.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed, in each case, as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer as of 3:30 p.m., New York City time, on the third Business Day immediately preceding such redemption date.

 

“Regular Record Date” has the meaning set forth in Sections 2.3(c) hereof.

 

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

 

“Regulation S Security” means a 2020 Security sold in reliance on Regulation S under the Securities Act.

 

“Reporting Date” means the date ending the most recently ended fiscal quarter of the Operating Partnership for which the Operating Partnership’s internal consolidated financial statements are available, it being understood that at any time when the Operating Partnership is

 

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subject to the informational requirements of the Exchange Act, and, in accordance therewith, file annual and quarterly reports with the Commission, the term “Reporting Date” shall be deemed to refer to the date ending the fiscal quarter covered by the Operating Partnership’s most recently filed Quarterly Report on Form 10-Q or, in the case of the last fiscal quarter of the year, the Operating Partnership’s Annual Report on Form 10-K.

 

“Restricted Securities” means “restricted securities,” as such term is defined in Rule 144 under the Securities Act.

 

“Rule 144A Security” means a 2020 Security sold pursuant to Rule 144A under the Securities Act.

 

“Stabilized Property” means (i) with respect to the Operating Partnership’s direct or indirect acquisition of an income producing property, a real property becomes stabilized when the Operating Partnership or its Subsidiaries have owned the property for at least four full quarters and (ii) with respect to one of the Operating Partnership’s direct or indirect newly constructed or development properties, a real property becomes stabilized four full quarters after the earlier of (a) 18 months after its substantial completion of construction or development, and (b) the fiscal quarter in which the occupancy level of such real property is at least 90%.

 

“Stabilized Property Value” means, with respect to the Stabilized Properties, as of any date, (i) Mall EBITDA divided by the applicable Capitalization Rate plus (ii) Strip Center EBITDA divided by the applicable Capitalization Rate.

 

“Strip Center EBITDA” means, for any period, without duplication, the Operating Partnership’s consolidated net income or loss from Strip Center Properties, including amounts reported in discontinued operations, excluding net derivative gains or losses and gains or losses on dispositions of real estate investments as reflected in the reports filed by the Operating Partnership under the Exchange Act (or, at any time that the Operating Partnership is not subject to the information requirements of the Exchange Act, as reflected in the Operating Partnership’s internal consolidated financial statements), before deductions, for: (i) interest expense; (ii) provision for taxes based on income; (iii) depreciation, amortization and all other non-cash items, as the Operating Partnership determines in good faith, deducted in arriving at consolidated net income or loss; (iv) extraordinary items; (v) non-recurring items, as the Operating Partnership determines in good faith, including prepayment penalties; and (vi) minority interests.

 

In each case for the relevant period, the Operating Partnership will reasonably determine the amounts in accordance with GAAP, except to the extent GAAP is not applicable with respect to the determination of all non-cash and non-recurring items.  Strip Center EBITDA will be adjusted, without duplication, to give pro forma effect: (a) in the case of any assets placed in service or removed from service since the beginning of the period and on or prior to the date of determination, to include or exclude, as the case may be, any Strip Center EBITDA earned or eliminated as a result of the placement of such assets in service or removal of such assets from service as if the placement of such assets in service or removal of such assets from service occurred at the beginning of the period; and (b) in the case of any acquisition or disposition of any asset or group of assets since the beginning of the period and on or prior to the date of determination, including, without limitation, by merger, or share or asset purchase or sale, to

 

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include or exclude, as the case may be, any Strip Center EBITDA earned or eliminated as a result of the acquisition or disposition of such asset or group of assets as if the acquisition or disposition occurred at the beginning of the period.  For the purposes of this definition, Strip Center EBITDA will be determined without the deduction to earnings of transaction expenses, merger costs, impairment charges, corporate level general and administrative expenses and other corporate expenses such as land holding costs, employee and director stock and stock option expense and pursuit cost write-offs as the Operating Partnership determines in good faith.

 

“Strip Center Properties” means the properties identified as “strip centers” on Schedule III to WPG’s or the Operating Partnership’s most recent audited consolidated financial statements (or any successor schedule), together with each additional real property acquired or placed in service since the date of such audited consolidated financial statements, determined in good faith by any two of the Chief Executive Officer, the President, the Chief Financial Officer, the Chief Operations Officer and the Chief Administrative Officer of WPG, as the sole general partner of the Operating Partnership, to be “strip centers” on the same basis as the “strip centers” identified on the aforementioned Schedule III, subject to, and in accordance with, Section 2.4 hereof.

 

“Total Assets” means, as of any date, in each case as determined by the Operating Partnership, on a consolidated basis for the Operating Partnership and its Subsidiaries, the sum of:  (i) for Stabilized Properties, their Stabilized Property Value; and (ii) for all other assets of the Operating Partnership and its Subsidiaries, their undepreciated book value as determined in accordance with GAAP.

 

“Total Unencumbered Assets” means those assets within Total Assets that are not subject to an Encumbrance; provided, however, that, in determining Total Unencumbered Assets as a percentage of outstanding Unsecured Indebtedness for purposes of Section 3.5 hereof, all investments in any Person that is not consolidated with the Operating Partnership for financial reporting purposes in accordance with GAAP shall be excluded from Total Unencumbered Assets to the extent that such investments would have otherwise been included.

 

“Treasury Rate” means, with respect to any redemption date,  (1) the arithmetic mean of the yields for the week preceding the Calculation Date published in the statistical release designated “H.15(519)”, or any successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity, under the caption “Week Ending” for “Treasury Constant Maturities”, for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within 30 days before or after the remaining term of the 2020 Securities to be redeemed to their assumed stated maturity date of March 2, 2020, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue, rounded to the nearest month, will be determined and the Treasury Rate will be interpolated or extrapolated from such yields on a straight line basis), or (2) if such release (or any successor release) is not published during the week preceding the Calculation Date or does not contain such yields, the rate per year equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated on the Calculation Date using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date.

 

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“U.S. Resale Restriction Termination Date” means, with respect to the Initial 2020 Securities and any Additional 2020 Securities, (x) the date which is one year (or such shorter period of time as permitted by Rule 144 under the Securities Act without the satisfaction of any conditions or other requirements) after the later of the date of original issue thereof, as the case may be, and the last date on which the Operating Partnership or any of its affiliates were the owner thereof, as the case may be, (or any predecessor thereto) and (y) such later date, if any, as may be required by any subsequent change in applicable law.

 

“Unsecured Indebtedness” means Indebtedness which is (i) not subordinated to any other Indebtedness and (ii) not secured by any Encumbrance upon any of the properties of the Operating Partnership or any Subsidiary.

 

ARTICLE II

 

CREATION, FORM AND
 TERMS AND CONDITIONS OF THE 2020 SECURITIES

 

Section 2.1                                    Creation of the 2020 Securities.  In accordance with Section 301 of the Base Indenture, the Operating Partnership hereby creates the 2020 Securities as a series of its debt securities issued pursuant to the Indenture.  The 2020 Securities shall initially be issued in an aggregate principal amount of $250,000,000.  Additional 2020 Securities in an unlimited amount may be issued pursuant to Sections 2.3(g) hereof.

 

Section 2.2                                    Form of the 2020 Securities.  The Initial 2020 Securities shall be issued in the form of one or more Global Securities, duly executed by the Operating Partnership and authenticated by the Trustee without the necessity of the reproduction thereon of the corporate seal of WPG (as defined in the Base Indenture), as the general partner of the Operating Partnership, which shall be initially deposited with, or on behalf of, DTC and registered in the name of “Cede & Co.,” as the initial nominee of DTC.  If the Initial 2020 Securities are represented by one or more Global Securities, then any Additional 2020 Securities and any related Exchange Securities issued by the Operating Partnership will also be represented by one or more Global Securities.  The 2020 Securities shall be substantially in the form of Exhibit A hereto.

 

Section 2.3                                    Terms and Conditions of the 2020 Securities.  The 2020 Securities shall be governed by all the terms and conditions of the Indenture.  In particular, the following provisions shall be terms of the 2020 Securities:

 

(a)                                 Title and Aggregate Principal Amount.  The title of the 2020 Securities shall be “Washington Prime Group, L.P. 3.850% Senior Notes due 2020”; and the aggregate principal amount of the 2020 Securities shall be as specified in Section 2.1 of this First Supplemental Indenture.

 

(b)                                 Stated Maturity Date.  The 2020 Securities shall mature, and the unpaid principal thereon shall be payable, on April 1, 2020, unless redeemed at the option of the Operating Partnership prior to such date in accordance with Section 2.3(d) below.

 

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(c)                                  Interest.  The rate per annum at which interest shall be payable on the 2020 Securities shall be 3.850%, subject to the provisions of the Registration Rights Agreement in respect of Additional Interest.  Interest on the 2020 Securities shall accrue from, and including, the Closing Date.  Interest on the related Exchange Securities shall accrue from, and including, the last date, if any, on which interest was paid on the 2020 Securities or, if none, from, and including, the Closing Date.  Interest on the Additional 2020 Securities shall accrue as contemplated in Section 2.3(g) hereof. Interest on the 2020 Securities shall be payable semi-annually in arrears on each April 1 and October 1, commencing on October 1, 2015 (each, an “Interest Payment Date”), to the Persons in whose names the applicable 2020 Securities are registered in the Security Register at the close of business on March 15 or September 15, as the case may be, immediately preceding the applicable Interest Payment Date, regardless of whether such day is a Business Day (each, a “Regular Record Date”).  Interest on the 2020 Securities shall be computed on the basis of a 360-day year of twelve 30-day months.

 

(d)                                 Optional Redemption.  The Operating Partnership may redeem the 2020 Securities, in whole or from time to time in part, subject to the conditions and at the redemption prices set forth in the form set forth in Exhibit A hereto, which is hereby incorporated by reference and made a part of this First Supplemental Indenture.

 

(e)                                  Registration and Form.  The 2020 Securities shall be issuable as Registered Securities in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  All payments of principal, premium, if any, and interest in respect of the 2020 Securities shall be made by the Operating Partnership in immediately available funds.

 

(f)                                   Defeasance.  The provisions for legal defeasance in Section 402 of the Base Indenture and for covenant defeasance (which provisions shall apply to the covenants set forth in Article III of this First Supplemental Indenture, with the exception of the second paragraph of Section 3.6) in Section 402 of the Base Indenture shall be applicable to the 2020 Securities.

 

(g)                                  Issuance of Additional 2020 Securities. The Operating Partnership may, from time to time, without notice to or the consent of any Holders of the 2020 Securities, create and issue additional debt securities having the same terms as the 2020 Securities of such series in all respects, except for the issue date and, under certain circumstances, the issue price, the date from which interest begins to accrue and the first payment of interest thereon, provided that such issuance complies with the covenants described herein (the “Additional 2020 Securities”). The Initial 2020 Securities, any additional debt securities issued pursuant to this Section 2.3(g) and any related Exchange Securities shall be treated as a single series of debt securities of the Operating Partnership for all purposes under the Indenture.

 

With respect to any Additional 2020 Securities, the Operating Partnership shall set forth in a resolution of its Board of Directors and in an Officer’s Certificate, a copy of each of which shall be delivered to the Trustee, the following information:

 

(1)                                 the aggregate principal amount of such Additional 2020 Securities to be authenticated and delivered pursuant to this First Supplemental Indenture;

 

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(2)                                 the issue price, the issue date, the CUSIP number of such Additional 2020 Securities, the first Interest Payment Date and the date from which interest begins to accrue; and

 

(3)                                 whether such Additional 2020 Securities shall be Restricted Securities.

 

(h)                                 Cancellation.  Any 2020 Securities purchased by the Operating Partnership may not be reissued or resold and will be canceled promptly.

 

(i)                                     Other Terms and Conditions.  The 2020 Securities shall have such other terms and conditions as provided in the form thereof attached as Exhibit A.

 

Section 2.4                                    Designation of Strip Center Properties.  From time to time, the Operating Partnership may designate internally one or more additional properties acquired or placed in service since the date of WPG’s or the Operating Partnership’s most recent audited consolidated financial statements as Strip Center Properties.  Upon the Operating Partnership’s internal designation, such property or properties shall each be deemed to be a Strip Center Property for all purposes of this First Supplemental Indenture until the next subsequent filing of Schedule III to WPG’s or the Operating Partnership’s audited consolidated financial statements; provided that if the Operating Partnership has not delivered within fifteen Business Days of the end of the fiscal quarter in which such property or properties were acquired or placed in service a certificate of any two of the Chief Executive Officer, the President, the Chief Financial Officer, the Chief Operations Officer and the Chief Administrative Officer of WPG, as the sole general partner of the Operating Partnership, in substantially the form attached hereto as Schedule A, to the Trustee (i) setting forth the name of such property or properties and (ii) certifying that such property or properties have been determined in good faith by each such officer to be “strip centers” on the same basis as the “strip centers” identified in Schedule III to such most recent audited consolidated financial statements, then such property or properties shall cease to be deemed Strip Center Properties for the purpose of this First Supplemental Indenture until such Officer’s Certificate is delivered to the Trustee.  The Trustee shall make any such Officer’s Certificate available to a Holder upon its written request.  Notwithstanding the foregoing and for the avoidance of doubt, a property shall no longer be a Strip Center Property upon its sale or other disposition.

 

ARTICLE III

 

CERTAIN COVENANTS

 

In addition to the covenants set forth in Sections 1001 through 1004, inclusive, of the Base Indenture, there are established the following covenants for the benefit of the Holders of: (1) the 2020 Securities; and (2) each series of Securities issued subsequent to the date hereof (“Future Securities”) and to which such Future Securities shall be subject unless, pursuant to Section 301 of the Base Indenture, the following covenants shall be made not applicable with respect to such Future Securities, and to which (with the exception of the second paragraph in Section 3.6) Sections 402(3) and 1005 of the Base Indenture shall apply:

 

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Section 3.1                                    Limitation on All Outstanding Indebtedness.  The Operating Partnership will not, and will not permit any Subsidiary to, incur any Indebtedness, if, immediately after giving effect to the incurrence of the additional Indebtedness and the application of the proceeds of such Indebtedness, the aggregate principal amount of all outstanding Indebtedness of the Operating Partnership and its Subsidiaries on a consolidated basis determined in accordance with GAAP is greater than 65% of Total Assets.

 

Section 3.2                                    Limitations on Incurrence of Secured Indebtedness.  The Operating Partnership will not, and will not permit any Subsidiary to, incur any Indebtedness secured by any Encumbrance upon any of its property or that of any Subsidiary if, immediately after giving effect to the incurrence of the additional Indebtedness and the application of the proceeds of such Indebtedness, the aggregate principal amount of all outstanding Indebtedness of the Operating Partnership and its Subsidiaries on a consolidated basis, determined in accordance with GAAP, which is secured by any Encumbrance on its property or that of any Subsidiary is greater than 40% of Total Assets.

 

Section 3.3                                    Maximum Ratio of Consolidated Income Available for Debt Service to Annual Service Charge.  The Operating Partnership will not, and will not permit any Subsidiary to, incur any Indebtedness if the ratio of Consolidated EBITDA to the Annual Service Charge for the four consecutive fiscal quarters ended on the most recent Reporting Date would have been less than 1.50 to 1.00, on a pro forma basis, after giving effect to the incurrence of the additional Indebtedness and the application of the proceeds of such Indebtedness and calculated on the assumption that: (i) the additional Indebtedness and any other Indebtedness incurred by the Operating Partnership or its Subsidiaries since the first day of such four-quarter period and the application of the proceeds of such Indebtedness, including Indebtedness to refinance other Indebtedness, had occurred at the beginning of such period; (ii) the repayment or retirement of any other Indebtedness by the Operating Partnership or its Subsidiaries since the first day of such four-quarter period had been repaid or retired at the beginning of such period; (iii) in the case of Acquired Indebtedness or Indebtedness incurred in connection with any acquisition since the first day of the four-quarter period, the related acquisition had occurred as of the first day of the period with appropriate adjustments to Consolidated EBITDA for the acquisition being included in the pro forma calculation; and (iv) in the case of any acquisition or disposition by the Operating Partnership or any Subsidiary of any asset or group of assets since the first day of such four-quarter period, including, without limitation, by merger, stock purchase or sale, or asset purchase or sale, such acquisition or disposition or any related repayment of Indebtedness had occurred as of the first day of such period with appropriate adjustments to Consolidated EBITDA for the acquisition or disposition being included in the pro forma calculation.

 

In applying the above assumptions to the calculation of the Annual Service Charge and Consolidated EBITDA, the amount of interest expense related to Indebtedness under any revolving credit facility shall be computed based upon the average daily balance of such indebtedness during such four-quarter period.

 

Section 3.4                                    General.  For purposes of the foregoing provisions, Indebtedness is deemed to be “incurred” by the Operating Partnership or such Subsidiary whenever the Operating Partnership or a Subsidiary creates, assumes, guarantees or otherwise becomes liable for such Indebtedness.

 

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Section 3.5                                    Maintenance of Total Unencumbered Assets.  The Operating Partnership and its Subsidiaries will at all times own Total Unencumbered Assets equal to at least 150% of the aggregate outstanding principal amount of the Unsecured Indebtedness of the Operating Partnership and its Subsidiaries on a consolidated basis determined in accordance with GAAP.

 

Section 3.6                                    Delivery of Information. Whether or not the Operating Partnership is then subject to Section 13 or 15(d) of the Exchange Act, the Operating Partnership will furnish to the Trustee (1) all quarterly and annual reports that would be required to be filed with the Commission on Forms 10-Q and 10-K if it was then subject to Section 13 or 15(d) of the Exchange Act and (2) all current reports that would be required to be filed with the Commission on Form 8-K if it was then subject to Section 13 or 15(d) of the Exchange Act, in each case within 15 days after it files such reports with the Commission or would be required to file such reports with the Commission as contemplated above, whichever is earlier.  Reports, information and documents filed with the Commission via the Electronic Data Gathering, Analysis and Retrieval system (“EDGAR”) will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this covenant; provided, however, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents or reports have been filed via EDGAR.  Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including compliance with any of the covenants contained in this First Supplemental Indenture (as to which the Trustee is entitled to rely exclusively on an Officer’s Certificate).  Notwithstanding the foregoing, unless the Operating Partnership is then subject to Section 13 or 15(d) of the Exchange Act, (i) prior to the consummation of the Exchange Offer contemplated by the Registration Rights Agreement and (ii) on or after consummation of the Exchange Offer, if permitted by the Commission, the Operating Partnership may satisfy its obligation to furnish any report described above by furnishing such report relating to WPG (and, for the avoidance of doubt, reports, information and documents filed with the Commission by WPG via EDGAR will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this covenant).

 

For so long as any of the 2020 Securities or any Future Securities to which this Section 3.6 applies remain Outstanding and constitute Restricted Securities, the Operating Partnership will promptly furnish to the Holders thereof and prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4).

 

ARTICLE IV

 

REGISTRATION, TRANSFER AND EXCHANGE

 

Section 4.1                                    Restricted 2020 Securities.  Except as permitted by this Article IV, each Restricted Security (including Restricted Securities represented in whole or in part by Global Securities) shall bear a legend specified in Section 5.1(2) hereof, in the case of a Rule 144A Security, or Section 5.1(3), in the case of a Regulation S Security:

 

If any 2020 Securities are issued upon the transfer, exchange or replacement of Securities of the same series and in the same form not bearing the applicable legend referred to above, the

 

11

 

2020 Securities so issued shall not bear such legend.  If any 2020 Securities are issued upon the transfer, exchange or replacement of Securities of the same series and in the same form bearing such legend or if a request is made to remove such legend from any 2020 Securities, the 2020 Securities so issued shall bear such legend or such legend shall not be removed, as the case may be, unless and until there is delivered to the Operating Partnership such satisfactory evidence as may be reasonably required by the Operating Partnership to evidence that any such 2020 Securities are not then subject to any transfer restrictions under the Securities Act.  Upon provision of such satisfactory evidence to the Operating Partnership, the Trustee, upon receipt of an Operating Partnership Order, shall authenticate and deliver 2020 Securities of the same series and in the same form of like tenor and terms that does not bear such legend.

 

Prior to the expiration of the Distribution Compliance Period, if an owner of a beneficial interest in a Rule 144A Security deposited with DTC wishes at any time to exchange all or a portion of its beneficial interest in such Rule 144A Security for a beneficial interest in the Regulation S Security, or to transfer all or a portion of its beneficial interest in such Rule 144A Security, to a Person who wishes to take delivery thereof in the form of a beneficial interest in such Regulation S Security, such owner may, subject to the rules and procedures of DTC and to the requirements set forth below, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in such Regulation S Security.

 

Upon receipt by the Trustee, as Securities Registrar, of (1) instructions given in accordance with DTC’s procedures from an agent member directing the Trustee to credit or cause to be credited a beneficial interest in the Regulation S Security in an amount equal to the beneficial interest in the Rule 144A Security to be exchanged or transferred, (2) a written order given in accordance with DTC’s procedures containing information regarding the Euroclear or Clearstream or other account to be credited with such increase and the name of such account and (3) a certificate substantially in the form of Exhibit B hereto given by the owner of such beneficial interest, the Trustee, as Securities Registrar, shall instruct DTC, its nominee, or the custodian for DTC, as the case may be, to reduce or reflect on its records a reduction of the Rule 144A Security by the aggregate principal amount of the beneficial interest in such Rule 144A Security to be so exchanged or transferred and the Trustee, as Securities Registrar, shall instruct DTC, its nominee, or the custodian for DTC, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of such Regulation S Security by the aggregate principal amount of the beneficial interest in such Rule 144A Security to be so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions (who shall be the agent member of Euroclear or Clearstream, or both, as the case may be) a beneficial interest in such Regulation S Security equal to the reduction in the principal amount of such Rule 144A Security.

 

After the expiration of the Distribution Compliance Period, if an owner of a beneficial interest in the Rule 144A Security deposited with DTC wishes at any time to exchange all or a portion of its interest in such Rule 144A Security for a beneficial interest in the Regulation S Security, or to transfer all or a portion of its interest in such Rule 144A Security to a Person who wishes to take delivery thereof in the form of a beneficial interest in such Regulation S Security, such owner may, subject to the rules and procedures of DTC and to the requirements set forth below, exchange or cause to exchange or transfer or cause the transfer of such beneficial interest for an equivalent beneficial interest in such Regulation S Security.

 

12

 

Upon receipt by the Trustee, as Securities Registrar, of (1) instructions given in accordance with DTC’s procedures from an agent member directing the Trustee to credit or cause to be credited a beneficial interest in the Regulation S Security in an amount equal to the beneficial interest in the Rule 144A Security to be exchanged or transferred, (2) a written order given in accordance with DTC’s procedures containing information regarding the Euroclear or Clearstream or other account to be credited with such increase and (3) a certificate substantially in the form of Exhibit C hereto given by the owner of such beneficial interest, the Trustee, as Securities Registrar, shall instruct DTC, its nominee, or the custodian for DTC, as the case may be, to reduce or reflect on its records a reduction of the Rule 144A Security by the aggregate principal amount of the beneficial interest in such Rule 144A Security to be so exchanged or transferred and the Trustee, as Securities Registrar, shall instruct DTC, its nominee, or the custodian for DTC, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of such Regulation S Security by the aggregate principal amount of the beneficial interest in such Rule 144A Security to be so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in such Regulation S Security equal to the reduction in the principal amount of such Rule 144A Security.

 

If an owner of a beneficial interest in the Regulation S Security which is deposited with DTC wishes at any time to exchange its interest for a beneficial interest in the Rule 144A Security, or to transfer its beneficial interest in such Regulation S Security to a Person who wishes to take delivery thereof in the form of a beneficial interest in such Rule 144A Security, such owner may, subject to the rules and procedures of Euroclear or Clearstream or DTC, as the case may be, and to the requirements set forth in the following sentence, exchange or cause the exchange or transfer or cause the transfer of such interest for an equivalent beneficial interest in such Rule 144A Security.

 

Upon receipt by the Trustee, as Securities Registrar, at its Offices in The City of New York of (1) instructions from Euroclear or Clearstream or DTC, as the case may be, directing the Trustee, as Securities Registrar, to credit or cause to be credited a beneficial interest in the Rule 144A Security in an amount equal to the beneficial interest in the Regulation S Security to be exchanged or transferred, such instructions to contain information regarding the agent member’s account with DTC to be credited with such increase, and (2) a certificate substantially in the form of Exhibit D hereto given by the owner of such beneficial interest, the Trustee, as Securities Registrar, shall instruct DTC, its nominee, or the custodian for DTC, as the case may be, to reduce or reflect on its records a reduction of the Regulation S Security, as the case may be, by the aggregate principal amount of the beneficial interest in such Regulation S Security to be exchanged or transferred and the Trustee as Securities Registrar, shall instruct DTC, its nominee, or the custodian for DTC, as the case may be, concurrently with such reduction, to increase or reflect on its records an increase of the principal amount of such Rule 144A Security by the aggregate principal amount of the beneficial interest in such Regulation S Security, as the case may be, to be so exchanged or transferred, and to credit or cause to be credited to the account of the Person specified in such instructions a beneficial interest in such Rule 144A Security equal to the reduction in the principal amount of such Regulation S Security, as the case may be.

 

13

 

Upon the occurrence of an Exchange Offer in accordance with a Registration Rights Agreement, the Operating Partnership shall issue and, upon receipt of an Operating Partnership Order, the Trustee shall authenticate, one or more Global Securities of the applicable series not bearing a legend containing transfer restrictions under the Securities Act in an aggregate principal amount equal to the principal amount of the beneficial interests in the Global Securities of such series that are Restricted Securities tendered for acceptance in accordance with the Exchange Offer and accepted for exchange in the Exchange Offer. Concurrently with the issuance of such Global Securities, the Registrar shall cause the aggregate principal amount of the applicable Restricted Security (including Restricted Securities represented in whole or in part by Global Securities) to be reduced accordingly, and the Registrar shall deliver Restricted Securities (including Restricted Securities represented in whole or in part by Global Securities) not bearing a legend containing transfer restrictions under the Securities Act in the appropriate principal amount.

 

After the transfer of any 2020 Securities of a series bearing a legend containing transfer restrictions under the Securities Act during the effectiveness of, and pursuant to, a shelf registration statement with respect to such 2020 Securities, all requirements pertaining to such legend shall cease to apply (but, for the avoidance of doubt, the requirements that any such 2020 Securities be issued in global form shall continue to apply).

 

Section 4.2                                    Temporary Securities.  Notwithstanding anything to the contrary in the Indenture, Regulation S Securities initially shall be issued in temporary, fully registered form, without interest coupons.  Each temporary Regulation S Security (or beneficial interest therein) shall be exchangeable for a definitive Regulation S Security (1) after the expiration of the Distribution Compliance Period and (2) upon receipt by the Securities Registrar of a certificate from the applicable owners of a beneficial interest in such temporary Regulation S Security (as shown by its records) a certificate substantially in the form of Exhibit E hereto.

 

ARTICLE V

 

LEGENDS

 

Section 5.1                                    Legends.  (1) Each Global Security shall bear the following legends on the face thereof:

 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE OPERATING PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

14

 

UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.

 

(2)                                 Each Global Security issued in reliance upon Rule 144A under the Securities Act, and any 2020 Securities issued in exchange therefor, unless and until (x) such Security is exchanged for a related Exchange Security or sold in connection with an effective shelf registration statement pursuant to the Registration Rights Agreement or (y) until the applicable U.S. Resale Restriction Termination Date, shall bear the following legend on the face thereof:

 

THIS SECURITY HAS NOT BEEN REGISTERED FOR OFFER OR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY OTHER APPLICABLE JURISDICTION.  BY ITS ACCEPTANCE HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (A “QUALIFIED INSTITUTIONAL BUYER”) (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)), (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, PRIOR TO THE DATE WHICH IS THE LATER OF (X) ONE YEAR (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT WITHOUT THE SATISFACTION OF ANY CONDITIONS OR OTHER REQUIREMENTS) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH WASHINGTON PRIME GROUP, L.P. (THE “OPERATING PARTNERSHIP”) OR ANY AFFILIATE OF THE OPERATING PARTNERSHIP WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) OR SUCH INTEREST OR PARTICIPATION AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO THE OPERATING PARTNERSHIP OR TO CITIGROUP GLOBAL MARKETS INC., J.P. MORGAN SECURITIES LLC OR RBS SECURITIES INC., (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME OR BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES

 

15

 

ACT, SUBJECT TO ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION BE AT ALL TIMES WITHIN ITS CONTROL, AND TO COMPLIANCE WITH THE SECURITIES LAWS OF ANY OTHER APPLICABLE JURISDICTION AND WITH THE PROCEDURES SPECIFIED IN THE INDENTURE. THIS LEGEND MAY ONLY BE REMOVED AT THE INSTRUCTION OF THE OPERATING PARTNERSHIP TO THE TRUSTEE.

 

(3)                                 Each Global Security sold in reliance upon Regulation S, and any 2020 Securities issued in exchange therefor during the Distribution Compliance Period, unless and until such Security is exchanged for a related Exchange Security or sold in connection with an effective shelf registration statement pursuant to the Registration Rights Agreement, shall bear the following legend on the face thereof:

 

PRIOR TO THE EXPIRATION OF THE 40-DAY ‘DISTRIBUTION COMPLIANCE PERIOD’ (AS DEFINED IN REGULATION S), THIS SECURITY MAY NOT BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT TO A PERSON REASONABLY BELIEVED TO BE A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND THE INDENTURE OR OTHERWISE IN ACCORDANCE WITH REGULATION S.  THIS LEGEND MAY ONLY BE REMOVED AT THE INSTRUCTION OF THE OPERATING PARTNERSHIP TO THE TRUSTEE.

 

ARTICLE VI

 

MISCELLANEOUS

 

Section 6.1                                    Relationship with Indenture.  The terms and provisions contained in the Indenture will constitute, and are hereby expressly made, a part of this First Supplemental Indenture.  However, to the extent any provision of the Indenture conflicts with the express provisions of this First Supplemental Indenture, the provisions of this First Supplemental Indenture will govern and be controlling.

 

Section 6.2                                    Trust Indenture Act Controls.  If any provision of this First Supplemental Indenture limits, qualifies or conflicts with another provision which is required to be included in this First Supplemental Indenture by the Trust Indenture Act, the required provision shall control.  If any provision of this First Supplemental Indenture modifies or excludes any provision of the Trust Indenture Act which may be so modified or excluded, the latter provision shall be deemed to apply to this First Supplemental Indenture as so modified or excluded, as the case may be.

 

Section 6.3                                    Additional Interest.  Additional Interest may accrue on the 2020 Securities pursuant to a Registration Rights Agreement, and all references to “interest” in the Indenture and in such 2020 Securities shall include any such Additional Interest that may be payable.

 

16

 

Section 6.4            Governing Law.  This First Supplemental Indenture shall be governed by, and construed in accordance with, the laws of the State of New York.

 

Section 6.5            Multiple Counterparts.  The parties may sign multiple counterparts of this First Supplemental Indenture.  Each signed counterpart shall be deemed an original but all of them together represent one and the same First Supplemental Indenture.

 

Section 6.6            Severability.  Each provision of this First Supplemental Indenture shall be considered separable and if for any reason any provision which is not essential to the effectuation of the basic purpose of this First Supplemental Indenture 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 and a Holder shall have no claim therefor against any party hereto.

 

Section 6.7            Ratification.  The Base Indenture, as supplemented and amended by this First Supplemental Indenture, is in all respects ratified and confirmed.  The Base Indenture and this First Supplemental Indenture shall be read, taken and construed as one and the same instrument.  All provisions included in this First Supplemental Indenture supersede any conflicting provisions included in the Base Indenture unless not permitted by law.  The Trustee accepts the trusts created by the Base Indenture, as supplemented by this First Supplemental Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as supplemented by this First Supplemental Indenture.  The recitals and statement contained herein shall be taken as the statements of the Operating Partnership, and the Trustee assumes no responsibility for their correctness.  The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture.

 

Section 6.8            Headings.  The Section headings in this First Supplemental Indenture are for convenience only and shall not affect the construction thereof.

 

Section 6.9            Effectiveness.  The provisions of this First Supplemental Indenture shall become effective as of the date hereof.

 

[Remainder of Page Intentionally Left Blank]

 

17

 

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

 

	
 
    	
WASHINGTON PRIME GROUP, L.P.
    
	
 
    	
 
    
	
 
    	
By:
    	
 Washington   Prime Group Inc., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ C. Marc Richards
    
	
 
    	
 
    	
Name: C. Marc Richards
    
	
 
    	
 
    	
Title: Chief Administrative Officer
    
	
 
    	
 
    	
 
    
	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
 
    	
as   Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Pamela V. Cole
    
	
 
    	
 
    	
Name: Pamela V. Cole
    
	
 
    	
 
    	
Title: Vice President
    
				

 

[Signature page to First Supplemental Indenture]

 

 

SCHEDULE A

 

FORM OF

OFFICERS’ CERTIFICATE

 

Reference is made to the First Supplemental Indenture, dated as of March 24, 2015 (the “First Supplemental Indenture”), between Washington Prime Group, L.P. (the “Operating Partnership”) and U.S. Bank National Association, as trustee. Pursuant to Section 2.4 of the First Supplemental Indenture, each of the undersigned officers of Washington Prime Group Inc. (“WPG”), the general partner of the Operating Partnership, hereby certifies that the property or properties listed on the schedule attached hereto have been acquired or placed in service since the date of WPG’s or the Operating Partnership’s most recent audited consolidated financial statements and have been determined in good faith by such officers to be “strip centers” on the same basis as the “strip centers” identified in Schedule III to the Operating Partnership’s or WPG’s most recent audited consolidated financial statements. In accordance with Section 2.4 of the First Supplemental Indenture, each such property or properties listed on such schedule shall be a Strip Center Property for all purposes of the First Supplemental Indenture until the next subsequent filing of Schedule III to WPG’s or the Operating Partnership’s audited consolidated financial statements after the date of this certificate.

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

Dated:

 

 

EXHIBIT A

 

FORM OF 2020 SECURITY

 

[FACE OF SECURITY]

 

[INCLUDE ONLY FOR GLOBAL SECURITY - UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE OPERATING PARTNERSHIP OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC, ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

UNLESS AND UNTIL THIS NOTE IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY DTC TO A NOMINEE THEREOF OR BY A NOMINEE THEREOF TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR OF DTC OR A NOMINEE OF SUCH SUCCESSOR.]

 

[INCLUDE ONLY FOR A RULE 144A GLOBAL SECURITY:  THIS SECURITY HAS NOT BEEN REGISTERED FOR OFFER OR SALE UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY OTHER APPLICABLE JURISDICTION.  BY ITS ACCEPTANCE HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS A “QUALIFIED INSTITUTIONAL BUYER” (A “QUALIFIED INSTITUTIONAL BUYER”) (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”)), (2) AGREES TO OFFER, SELL OR OTHERWISE TRANSFER THIS SECURITY OR ANY INTEREST OR PARTICIPATION HEREIN, PRIOR TO THE DATE WHICH IS THE LATER OF (X) ONE YEAR (OR SUCH SHORTER PERIOD OF TIME AS PERMITTED BY RULE 144 UNDER THE SECURITIES ACT WITHOUT THE SATISFACTION OF ANY CONDITIONS OR OTHER REQUIREMENTS) AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH WASHINGTON PRIME GROUP, L.P. (THE “OPERATING PARTNERSHIP”) OR ANY AFFILIATE OF THE OPERATING PARTNERSHIP WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF THIS SECURITY) OR SUCH INTEREST OR PARTICIPATION AND (Y) SUCH LATER DATE, IF ANY, AS MAY BE REQUIRED BY ANY SUBSEQUENT CHANGE IN APPLICABLE LAW, ONLY (A) TO

 

A-1

 

THE OPERATING PARTNERSHIP OR TO CITIGROUP GLOBAL MARKETS INC., J.P. MORGAN SECURITIES LLC OR RBS SECURITIES INC., (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME OR BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THIS SECURITY IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER ACQUIRING THIS SECURITY OR SUCH INTEREST OR PARTICIPATION FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF ANOTHER QUALIFIED INSTITUTIONAL BUYER AND TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) TO A NON-U.S. PERSON IN AN OFFSHORE TRANSACTION WITHIN THE MEANING OF REGULATION S OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO ANY REQUIREMENT OF LAW THAT THE DISPOSITION OF THIS SECURITY OR SUCH INTEREST OR PARTICIPATION BE AT ALL TIMES WITHIN ITS CONTROL, AND TO COMPLIANCE WITH THE SECURITIES LAWS OF ANY OTHER APPLICABLE JURISDICTION AND WITH THE PROCEDURES SPECIFIED IN THE INDENTURE. THIS LEGEND MAY ONLY BE REMOVED AT THE INSTRUCTION OF THE OPERATING PARTNERSHIP TO THE TRUSTEE.]

 

[INCLUDE ONLY FOR A REGULATION S GLOBAL SECURITY:  PRIOR TO THE EXPIRATION OF THE 40-DAY ‘DISTRIBUTION COMPLIANCE PERIOD’ (AS DEFINED IN REGULATION S), THIS SECURITY MAY NOT BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT TO A PERSON REASONABLY BELIEVED TO BE A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A AND THE INDENTURE OR OTHERWISE IN ACCORDANCE WITH REGULATION S. THIS LEGEND MAY ONLY BE REMOVED AT THE INSTRUCTION OF THE OPERATING PARTNERSHIP TO THE TRUSTEE.]

 

	
NO.   [ ]
    	
 
    	
PRINCIPAL AMOUNT
    
	
CUSIP   NO. [if Rule 144A: 939648 AA9] [if Regulation S: U93893 AA0]
    	
 
    	
$[]
    
	
ISIN   NO.  [if   Rule 144A: US939648AA96][if Regulation S: USU93893AA06]
    	
 
    	
 
    

 

WASHINGTON PRIME GROUP, L.P.
 3.850% Senior Note due 2020

 

Washington Prime Group, L.P., an Indiana limited partnership (the “Operating Partnership,” which term includes any successor under the Indenture (as defined below)), for value received, hereby promises to pay to                  or its registered assigns, the principal amount of [PRINCIPAL AMOUNT IN WORDS] dollars (or such lesser amount as shall be the

 

A-2

 

outstanding principal amount of this Note shown in Schedule A hereto) on April 1, 2020 (the “Stated Maturity Date”), unless earlier redeemed as described on the reverse hereof, and to pay interest on the outstanding principal amount hereof from, and including, March 24, 2015, semi-annually in arrears on April 1 and October 1 of each year (each, an “Interest Payment Date”), commencing on October 1, 2015, at the rate of 3.850% per annum, until payment of said principal amount has been made or duly provided for.

 

The interest so payable and punctually paid or duly provided for on any Interest Payment Date shall be paid to the Holder in whose name this Note (or one or more predecessor Notes) is registered in the Security Register applicable to this Note at the close of business on the “Regular Record Date” for such payment, which shall be March 15 or September 15, as the case may be, immediately prior to such Interest Payment Date, regardless of whether such day is a Business Day (as defined below).  Any interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Holder in whose name this Note (or one or more predecessor Notes) is registered at the close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee (which shall not be more than 15 days and not less than 10 days prior to the date of the proposed payment of such defaulted interest) established by notice given by mail by or on behalf of the Operating Partnership to the Holders of the Notes not more than 15 days and not less than 10 days prior to the Special Record Date, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Notes may be listed, and upon such notice as may be required by such exchange, all as more fully provided in the Indenture.  Interest on this Note shall be computed on the basis of a 360-day year of twelve 30-day months.

 

Interest payable on this Note on any Interest Payment Date or the Stated Maturity Date or date of earlier redemption shall be the amount of interest accrued from, and including, the immediately preceding Interest Payment Date (or from, and including, March 24, 2015, in the case of the initial period) to, but excluding, such Interest Payment Date or the Stated Maturity Date or such date of earlier redemption, as the case may be.  If any Interest Payment Date or the Stated Maturity Date or date of earlier redemption falls on a day that is not a Business Day, the principal, premium, if any, and/or interest payable with respect to such date shall be made on the next succeeding Business Day with the same force and effect as if made on such date, and no interest shall accrue on the amount so payable for the period from and after such date to such next succeeding Business Day.

 

The principal of this Note payable on the Stated Maturity Date or date of earlier redemption shall be paid against presentation and surrender of this Note at the office or agency of the Operating Partnership maintained for that purpose in The Borough of Manhattan, The City of New York.  The Operating Partnership hereby initially designates the Corporate Trust Office of the Trustee in The City of New York as the office to be maintained by it where Notes may be presented for payment, registration of transfer or exchange, and where notices to or demands upon the Operating Partnership in respect of the Notes or the Indenture may be served.

 

Payments of principal, premium, if any, and interest in respect of this Note shall be made by wire transfer of immediately available funds in such coin or currency of the United States of America as at the time of payment is legal tender for the payment of public and private debts.

 

A-3

 

Reference is made to the further provisions of this Note set forth on the reverse hereof.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

This Note shall not be entitled to the benefits of the Indenture or be valid or obligatory for any purpose until the Certificate of Authentication hereon shall have been signed by the Trustee under the Indenture.

 

A-4

 

IN WITNESS WHEREOF, the Operating Partnership has caused this instrument to be signed manually or by facsimile by its authorized officers.

 

Dated:  March 24, 2015

 

	
 
    	
WASHINGTON   PRIME GROUP, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   WASHINGTON PRIME GROUP INC.
    
	
 
    	
its sole General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
Attest:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

A-5

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

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

 

	
 
    	
U.S. BANK NATIONAL ASSOCIATION,
    	
 
    
	
 
    	
as Trustee
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    	
 
    
	
 
    	
 
    	
Authorized Officer
    	
 
    

 

A-6

 

[REVERSE OF SECURITY]

 

WASHINGTON PRIME GROUP, L.P.

 

3.850% Senior Note due 2020

 

This Note is one of a duly authorized issue of debt securities of the Operating Partnership (collectively, the “Securities”), issued or to be issued under and pursuant to an Indenture, dated as of March 24, 2015 (as amended or supplemented from time to time, the “Indenture”), duly executed and delivered by the Operating Partnership to U.S. Bank National Association, as Trustee (herein called the “Trustee,” which term includes any successor trustee under the Indenture with respect to the Securities of the series of which this Note is a part), to which Indenture and all indentures supplemental thereto relating to this Note (including, without limitation, the First Supplemental Indenture, dated as of March 24, 2015, between the Operating Partnership and the Trustee) reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Operating Partnership and the Holders of the Securities, and of the terms upon which the Securities are, and are to be, authenticated and delivered and for the definition of capitalized terms used hereby and not otherwise defined.  This Note is one of a series designated as the Washington Prime Group, L.P. 3.850% Senior Notes due 2020, limited in aggregate principal amount to $250,000,000, except as contemplated in the Indenture (collectively, the “Notes”).

 

In case an Event of Default with respect to the Notes shall have occurred and be continuing, the principal amount of the Notes and any premium due on the outstanding Notes and unpaid interest, if any, accrued thereon may be declared, and in certain cases shall automatically become, due and payable immediately, in the manner, with the effect, and subject to the conditions provided in the Indenture.

 

The Notes may be redeemed at the option of the Operating Partnership, in whole at any time or in part from time to time (in amounts of $2,000 and whole multiples of $1,000 in excess thereof), (x) prior to March 2, 2020, for cash, at a redemption price equal to the greater of (1) 100% of the aggregate principal amount of the Notes to be redeemed and (2) an amount equal to the sum of the present values of the remaining scheduled payments of principal of and interest on the Notes to be redeemed, calculated as if the Stated Maturity Date of the Notes were March 2, 2020, not including any portion of the payments of interest accrued to, but not including, such redemption date, discounted to such redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Rate plus 0.35%, or 35 basis points, plus, in each case, accrued and unpaid interest, if any, on the principal amount of the Notes to be redeemed to, but not including, such redemption date and (y) on or after March 2, 2020, for cash, at a redemption price equal to 100% of the aggregate principal amount of the Notes to be redeemed plus accrued and unpaid interest, if any, on the principal amount of the Notes to be redeemed to, but not including, such redemption date.

 

The Indenture contains provisions permitting the Operating Partnership and the Trustee, with the consent of the Holders of a majority of the aggregate principal amount of the Securities at the time Outstanding of each series to be affected (voting as separate classes), evidenced as provided in the Indenture, to execute supplemental indentures adding any provisions to or 

 

A-7

 

changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the rights of the Holders of the Securities of each series, subject to certain exceptions requiring the consent of each Holder of Securities affected thereby and certain other exceptions not requiring the consent of any Holder of Securities.  The Indenture also permits the Holders of a majority in aggregate principal amount of the Outstanding Securities of any series, on behalf of the Holders of all the Securities of such series (or all of the Securities, as the case may be), to waive compliance by the Operating Partnership with certain provisions of the Indenture and certain past defaults or Events of Default under the Indenture and their consequences.  Any such consent or waiver by the Holder of this Note (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note that may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Note or such other Note.

 

No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Operating Partnership, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Note in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

This Note is issuable only in registered form without coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof.  This Note may be exchanged for a like aggregate principal amount of Notes of other authorized denominations at the office or agency of the Operating Partnership in The Borough of Manhattan, The City of New York, in the manner and subject to the limitations provided herein and in the Indenture, but without the payment of any service charge, except for any tax or other governmental charge imposed in connection therewith.

 

Upon due presentment for registration of transfer of this Note at the office or agency of the Operating Partnership in The Borough of Manhattan, The City of New York, one or more new Notes of authorized denominations in a like aggregate principal amount shall be issued to the transferee in exchange therefor, subject to the limitations provided herein and in the Indenture, without charge, except for any tax or other governmental charge imposed in connection therewith.

 

The Operating Partnership, the Trustee and any authorized agent of the Operating Partnership or the Trustee may deem and treat the Holder the absolute owner of this Note (whether or not this Note shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the purpose of receiving payment of, or on account of, the principal and any premium hereof or hereon and, subject to the provisions on the face hereof, interest hereon, and for all other purposes, and none of the Operating Partnership, the Trustee or any authorized agent of the Operating Partnership or the Trustee shall be affected by any notice to the contrary.

 

This Note shall be governed by and construed in accordance with the laws of the State of New York.

 

A-8

 

Capitalized terms used but not otherwise defined shall have the respective meanings assigned to them in the Indenture and the First Supplemental Indenture, as the case may be.

 

A-9

 

ABBREVIATIONS

 

The following abbreviations, when used in the inscription on the face of this Note, shall be construed as though they were written out in full according to applicable laws or regulations:

 

TEN COM — as tenants in common

UNIF GIFT MIN ACT —             Custodian       (Cust)      

(minor) under Uniform Gifts to Minors Act                                (State)

TEN ENT — as tenants by the entireties

JT TEN — as joint tenants with right of survivorship and not as tenants in common

 

Additional abbreviations may also be used though not in the above list.

 

 

ASSIGNMENT

 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

 

	
PLEASE   INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE
    
	
 
    

(Please print or typewrite name and address, including postal zip code of assignee.)

 

this Note and all rights thereunder and does hereby irrevocably constitute and appoint                                                  Attorney to transfer this Note on the books of the Trustee, with full power of substitution in the premises.

 

 

	
Dated:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notice:   The signature(s) on this Assignment must correspond with the   name(s) as written upon the face of this Note in every particular,   without alteration or enlargement or any change whatsoever
    

 

A-10

 

SCHEDULE A

 

SCHEDULE OF EXCHANGES

 

The following exchanges of Notes for Notes represented by this Global Security have been made:

 

	
Principal
   amount of this
   Global Security
    	
 
    	
Date exchange
   made
    	
 
    	
Change in
   principal
   amount of this
   Global
   Security due to
   exchange
    	
 
    	
Principal
   amount of this
   Global Security
   following
   such exchange
    	
 
    	
Notation made
   by the Trustee
    	
 
    
	
$
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
											

 

A-11

 

EXHIBIT B

 

FORM OF TRANSFER CERTIFICATE 
 FOR EXCHANGE OR TRANSFER FROM RULE 144A GLOBAL NOTE
 TO REGULATION S GLOBAL NOTE
 PRIOR TO THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD

 

U.S. Bank National Association
  [·]
 Attention: [·]

 

Re: Washington Prime Group, L.P. 
           $[   ]  3.850% Senior Notes due 2020 (the “Notes”)

 

Reference is hereby made to the Indenture, dated as of March 24, 2015 (the “Indenture”), between Washington Prime Group, L.P. (the “Operating Partnership”) and U.S. Bank National Association as trustee (the “Trustee”).  Capitalized terms not defined in this Certificate shall have the meanings given to them in the Indenture or Regulation S under the Securities Act.

 

This Certificate relates to $[  ] aggregate principal amount of Notes represented by a beneficial interest in the Rule 144A Security (CUSIP No. 939648 AA9) held with DTC by or on behalf of [TRANSFEROR] as beneficial owner (the “Transferor”).  The Transferor has requested an exchange or transfer of its beneficial interest for an interest in the Regulation S Security (CUSIP No. U93893 AA0) to be held by [[Euroclear] [Clearstream] (ISIN Code USU93893AA06) (Common Code [  ]) through] DTC.

 

In connection with such request and in respect of such Notes, the Transferor does hereby certify that such exchange or transfer has been effected in accordance with the transfer restrictions set forth in such Notes and pursuant to and in accordance with Rule 903 or Rule 904 (as applicable) of Regulation S under the Securities Act, and accordingly the Transferor does hereby certify that:

 

(1) the Transferor is not a distributor of such Notes, the Operating Partnership, or an Affiliate of the Operating Partnership or any such distributor or a person acting on behalf of any of the foregoing;

 

(2) the offer of such Notes was not made to a person;

 

(3) either:  (A) at the time the buy order was originated, the transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that the transferee was outside the United States, or (B) the transaction was executed in, on or through the facilities or a designated offshore securities market and neither the Transferor nor any person acting on its behalf knows that the transaction was prearranged with a buyer in the United States;

 

B-1

 

(4) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable;

 

(5) if the Transferor is a dealer in securities or has received a selling concession, fee or other remuneration in respect of such Notes covered by this Certificate, then the requirements of Rule 904(c)(1) of Regulation S have been satisfied; and

 

(6) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act.

 

This Certificate and the statements contained herein are made for your benefit and the benefit of the Operating Partnership and the initial purchasers of such Notes being exchanged or transferred.

 

 

	
 
    	
 
    	
[TRANSFEROR]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Dated:
    	
 
    	
 
    	
 
    
					

 

B-2

 

EXHIBIT C

 

FORM OF TRANSFER CERTIFICATE FOR THE TRANSFER OR EXCHANGE

FROM RULE 144A GLOBAL NOTE TO REGULATION S GLOBAL NOTE AFTER

THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE PERIOD

 

U.S. Bank National Association
  [·]
 Attention: [·]

 

Re: Washington Prime Group, L.P. 
           $[   ]  3.850% Senior Notes due 2020 (the “Notes”)

 

Reference is hereby made to the Indenture, dated as of March 24, 2015 (the “Indenture”), between Washington Prime Group, L.P. (the “Operating Partnership”) and U.S. Bank National Association, as trustee (the “Trustee”).  Capitalized terms not defined in this Certificate shall have the meanings given to them in the Indenture or Regulation S under the Securities Act.

 

This Certificate relates to $[  ] aggregate principal amount of Notes represented by a beneficial interest in the Rule 144A Security (CUSIP No. 939648 AA9) held with DTC by or on behalf of [TRANSFEROR] as beneficial owner (the “Transferor”).  The Transferor has requested an exchange or transfer of its beneficial interest for an interest in the Regulation S Security (CUSIP No. U93893 AA0) to be held by [[Euroclear] [Clearstream] (ISIN Code USU93893AA06) (Common Code [  ]) through] DTC.

 

In connection with such request and in respect of such Notes, the Transferor does hereby certify that such exchange or transfer has been effected in accordance with the transfer restrictions set forth in such Notes and that, with respect to transfers made in reliance on Regulation S under the Securities Act, pursuant to and in accordance with Regulation S under the Securities Act, and accordingly the Transferor does hereby certify that:

 

(i) (A) the offer of such Notes was not made to a U.S. person; (B) either (1) at the time the buy order was originated, the transferee was outside the United States or the Transferor and any person acting on its behalf reasonably believed that the transferee was outside the United States, or (2) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither the Transferor nor any person acting on its behalf knows that the transaction was pre-arranged with a buyer in the United States; (C) no directed selling efforts have been made in contravention of the requirements of Rule 903(b) or 904(b) of Regulation S, as applicable; and (D) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; or

 

(ii) with respect to transfers made in reliance on Rule 144A under the Securities Act, such Notes are being transferred in a transaction permitted by Rule 144A under the Securities Act.

 

C-1

 

This Certificate and the statements contained herein are made for your benefit and the benefit of the Operating Partnership and the initial purchasers of such Notes being exchanged or transferred.

 

 

	
 
    	
[TRANSFEROR]
    	
 

	
 
    	
 
    	
 

	
 
    	
 
    	
 

	
 
    	
By:
    	
 
    	
 

	
 
    	
Name:
    	
 

	
 
    	
Title:
    	
 

	
 
    	
 
    	
 

	
 
    	
 
    	
 

	
Dated:
    	
 
    	
 
    	
 
    
							

 

C-2

 

EXHIBIT D

 

FORM OF TRANSFER CERTIFICATE 
 FOR EXCHANGE OR TRANSFER FROM REGULATION S GLOBAL NOTE
 TO RULE 144A GLOBAL NOTE

 

U.S. Bank National Association
  [·]
 Attention: [·]

 

Re: Washington Prime Group, L.P. 
           $[   ]  3.850% Senior Notes due 2020 (the “Notes”)

 

Reference is hereby made to the Indenture, dated as of March 24, 2015 (the “Indenture”), between Washington Prime Group, L.P. (the “Operating Partnership”) and U.S. Bank National Association, as trustee (the “Trustee”).  Capitalized terms not defined in this Certificate shall have the meanings given to them in the Indenture or Rule 144A under the Securities Act.

 

This Certificate relates to $[  ] aggregate principal amount of Notes represented by a beneficial interest in the Regulation S Security (CUSIP No. U93893 AA0) (ISIN Code USU93893AA06) (Common Code [  ]) through DTC by or on behalf of [TRANSFEROR] as beneficial owner (the “Transferor”).  The Transferor has requested an exchange or transfer or its interest in the Notes for an interest in the Rule 144A Security (CUSIP No. 939648 AA9).

 

In connection with such request, and in respect of such Notes, the Transferor does hereby certify that such transfer is being effected in accordance with the transfer restrictions set forth in the Indenture and pursuant to and in accordance with Rule 144A under the Securities Act, to a transferee that the Transferor reasonably believes is acquiring such Notes for its own account or an account with respect to which the transferee exercises sole investment discretion and the transferee and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act, in each case in a transaction meeting the requirements of Rule 144A under the Securities Act and in accordance with any applicable securities laws of the any state of the United States or any other jurisdiction.

 

This Certificate and the statements contained herein are made for your benefit and the benefit of the Operating Partnership and the initial purchasers of such Notes being transferred.

 

	
 
    	
[TRANSFEROR]
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
Dated:
    	
 
    

 

D-1

 

EXHIBIT E

 

FORM OF CERTIFICATE OF BENEFICIAL OWNERSHIP

 

	
Re: Washington Prime Group, L.P.
    
	
3.850% Senior Notes due 2020 (the “Notes”)
    

 

Reference is hereby made to the Indenture, dated as of March 24, 2015 (the “Indenture”), between Washington Prime Group, L.P. (the “Operating Partnership”) and U.S. National Bank Association, as trustee (the “Trustee”).  Capitalized terms not defined in this Certificate shall have the meanings given to them in the Indenture.

 

This is to certify that as of the date hereof, and except as set forth below, the above-captioned Notes held by you for our account are beneficially owned by (a) non-U.S. person(s) or (b) U.S. person(s) who purchased the Notes in transactions which did not require registration under the Securities Act of 1933, as amended (the “Securities Act”).  As used in this paragraph, the term “U.S. person” has the meaning given to it by Regulation S under the Securities Act.

 

As used herein, “United States” means the United States of America (including the States and the District of Columbia); and its “possessions” including Puerto Rico, the U.S. Virgin Islands, Guam, America Samoa, Wake Island and the Northern Mariana Islands.

 

We undertake to advise you promptly by facsimile or by electronic transmission on or prior to the date on which you intend to submit your certification relating to the Notes held by you for our account in accordance with your operating procedures if any applicable statement herein is not correct on such date, and in the absence of any such notification it may be assumed that this certification applies as of such date.

 

This certification excepts and does not relate to $[  ] aggregate principal amount of such interest in the above Notes in respect of which we are not able to certify and as to which we understand exchange and delivery of definitive Notes (or, if relevant exercise of any rights or collection of any principal, premium or interest) cannot be made until we do so certify.

 

We understand that this certification is required in connection with certain securities laws of the United States.  In connection therewith, if administrative or legal proceedings are commenced or threatened in connection with which this certification is or would be relevant, we irrevocable authorize you to produce this certification to any interested party in such proceedings.

 

 

	
Dated(1):
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    

 

(1)  Not earlier than 15 days prior to the certification event to which the certification relates.

 

E-1Exhibit 4.3

 

EXECUTION VERSION

 

WASHINGTON PRIME GROUP, L.P.

 

$250,000,000 3.850% Senior Notes due 2020

 

REGISTRATION RIGHTS AGREEMENT

 

March 24, 2015

 

Citigroup Global Markets Inc.
 J.P. Morgan Securities LLC
 RBS Securities Inc.
 As Representatives of the Initial Purchasers

 

c/o                               Citigroup Global Markets Inc.
 388 Greenwich Street
 New York, New York 10013

 

J.P. Morgan Securities LLC
 383 Madison Avenue
 New York, New York 10179

 

RBS Securities Inc.
 600 Washington Boulevard
 Stamford, Connecticut 06901

 

Ladies and Gentlemen:

 

Washington Prime Group, L.P., an Indiana limited partnership (the “Issuer”), proposes to issue and sell to the several parties named in Schedule I to the Purchase Agreement (as defined below) (the “Initial Purchasers”), for whom you are acting as representatives, $250 million aggregate principal amount of its 3.850% Senior Notes due 2020 (the “Securities”), upon the terms and conditions set forth in the Purchase Agreement, dated March 17, 2015 (the “Purchase Agreement”), among the Issuer, Washington Prime Group Inc., an Indiana corporation (the “Parent”), and the Initial Purchasers, relating to the initial placement (the “Initial Placement”) of the Securities. To induce the Initial Purchasers to enter into the Purchase Agreement and to satisfy a condition to the Initial Purchasers’ obligations thereunder, the Issuer agrees with the Initial Purchasers for the Initial Purchasers’ benefit and the benefit of the holders from time to time of the Securities (including the Initial Purchasers) and New Securities (each, a “Holder” and, collectively, the “Holders”), as follows:

 

1.                                      Definitions.  Capitalized terms used herein without definition shall have their respective meanings set forth in the Purchase Agreement.  As used in this Registration Rights Agreement (this “Agreement”), the following capitalized terms shall have the following meanings:

 

“Additional Interest” shall have the meaning set forth in Section 8 hereof.

 

 

“Affiliate” shall have the meaning specified in Rule 405 under the Securities Act and the terms “controlling” and “controlled” shall have meanings correlative thereto.

 

“Broker-Dealer” shall mean any broker or dealer registered as such under the Exchange Act.

 

“Business Day” shall mean any day other than a Saturday, a Sunday or other day on which the Commission or banking institutions in The City of New York are authorized or obligated by law, regulation or executive order to be closed.

 

“Closing Date” shall have the meaning given to it in the Purchase Agreement.

 

“Commission” shall mean the Securities and Exchange Commission.

 

“Deferral Period” shall have the meaning indicated in Section 4(j)(ii) hereof.

 

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

 

“Exchange Offer Completion Deadline” shall mean the 240th day following the Closing Date (or, if such day is not a Business Day, then next succeeding Business Day).

 

“Exchange Offer Registration Period” shall mean the 120-day period following the consummation of the Registered Exchange Offer, exclusive of any period during which the effectiveness of the Exchange Offer Registration Statement shall be suspended.

 

“Exchange Offer Registration Statement” shall mean a registration statement of the Issuer on an appropriate form under the Securities Act with respect to the Registered Exchange Offer, all amendments and supplements to such registration statement, including post-effective amendments thereto, in each case including the Prospectus contained therein, all exhibits thereto and all information incorporated by reference therein.

 

“Exchanging Dealer” shall mean any Holder (which may include the Initial Purchaser) that is a Broker-Dealer and elects to exchange for New Securities any Securities that it acquired for its own account as a result of market-making activities or other trading activities (but not directly from the Issuer or any Affiliate of the Issuer).

 

“Final Offering Memorandum” shall mean the offering memorandum, dated March 17, 2015, relating to the Securities.

 

“FINRA” shall mean the Financial Industry Regulatory Authority, Inc.

 

“Holder” shall have the meaning set forth in the preamble hereto.

 

“Indenture” shall mean the Indenture, dated as of the date hereof, between the Issuer and the Trustee, as the same may be amended or supplemented from time to time in accordance with the terms thereof.

 

2

 

“Initial Placement” shall have the meaning set forth in the preamble hereto.

 

“Initial Purchasers” shall have the meaning set forth in the preamble hereto.

 

“Losses” shall have the meaning set forth in Section 6(a) hereof.

 

“Majority Holders” shall mean, on any date, Holders of a majority of the aggregate principal amount of Securities of a series outstanding and registered under a Registration Statement.

 

“Managing Underwriters” shall mean the investment bank or investment banks that, on behalf of the applicable Underwriters, manage an underwritten offering, if any, under a Registration Statement.

 

“New Securities” shall mean the debt securities of the Issuer evidencing the same continuing indebtedness as the Securities and identical in all material respects to the Securities to be issued under the Indenture (except that the transfer restrictions under the Securities Act shall be eliminated.

 

“Prospectus” shall mean the prospectus included in any Registration Statement (including, without limitation, a prospectus that discloses information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A under the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of all or any portion of the Securities or the New Securities covered by such Registration Statement, and all amendments and supplements thereto, including any and all exhibits thereto and all information incorporated by reference therein.

 

“Purchase Agreement” shall have the meaning set forth in the preamble hereto.

 

“Registered Exchange Offer” shall mean the proposed offer of the Issuer to issue and deliver to the Holders of all of the Securities that are not prohibited by any law or policy of the Commission from participating in such offer, in exchange for the Securities, a like aggregate principal amount of the New Securities of the same series.

 

“Registrable Securities” shall mean the Securities; provided that Securities shall cease to be Registrable Securities upon the earliest to occur of the following:  (i) when a Registration Statement with respect to such Securities has become effective under the Securities Act and such Securities have been exchanged or disposed of pursuant to such Registration Statement, (ii) when such Securities cease to be outstanding, (iii) when such Securities have been resold pursuant to Rule 144 under the Securities Act, provided that the Company shall have removed any restrictive legend on such Securities and such Securities shall not bear a restricted CUSIP number, (iv) except in the case of (1) any Holder of Securities that is not eligible to exchange such Securities for New Securities in the Registered Exchange Offer under any law or policy of the Commission, (2) any Holder of Securities that participates in the Registered Exchange Offer but does not receive New Securities in the Registered Exchange Offer that may be sold without restriction under U.S. federal or state securities laws (other than due solely to the status of such Holder as an Affiliate of the Issuer) or (3) Securities exchanged by Exchanging

 

3

 

Dealers for New Securities in the Registered Exchange Offer, when the Exchange Offer is consummated, and (v) on the third anniversary of this Agreement.

 

“Registration Default” shall have the meaning set forth in Section 8 hereof.

 

“Registration Expenses” shall have the meaning set forth in Section 5 hereof.

 

“Registration Statement” shall mean any Exchange Offer Registration Statement or Shelf Registration Statement that covers any of the Securities or the New Securities pursuant to the provisions of this Agreement, any amendments and supplements to such Exchange Offer Registration Statement or Shelf Registration Statement, including post-effective amendments, all exhibits thereto and all information incorporated by reference therein.

 

“Securities” shall have the meaning set forth in the preamble hereto.

 

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

 

“Shelf Effectiveness Deadline” shall have the meaning set forth in Section 3(b)(i).

 

“Shelf Registration” shall mean a registration effected pursuant to Section 3 hereof.

 

“Shelf Registration Period” has the meaning set forth in Section 3(b)(ii) hereof.

 

“Shelf Registration Statement” shall mean a “shelf” registration statement of the Issuer pursuant to the provisions of Section 3 hereof which covers some or all of the Securities or New Securities, as applicable, on an appropriate form under Rule 415 under the Securities Act, or any similar rule that may be adopted by the Commission, amendments and supplements to such registration statement, including post-effective amendments, in each case including each applicable Prospectus, all exhibits thereto and all information incorporated by reference therein.

 

“Trustee” shall mean U.S. Bank National Association, as the trustee with respect to the Securities under the Indenture.

 

“Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

“Underwriter” shall mean any underwriter of Securities in connection with an offering thereof under a Shelf Registration Statement.

 

2.                                      Registered Exchange Offer.  (a) To the extent not prohibited by any applicable law or applicable interpretation of the staff of the Commission, the Issuer shall prepare and file with the Commission the Exchange Offer Registration Statement with respect to all of the Securities of Holders eligible to participate in the Registered Exchange Offer.  The Issuer shall use its commercially reasonable efforts to cause the Exchange Offer Registration Statement to become effective under the Securities Act and to exchange all of the Securities of

 

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Holders eligible to participate in the Registered Exchange Offer for New Securities, in each case, no later than the Exchange Offer Completion Deadline.

 

(b)                                 Upon the effectiveness of the Exchange Offer Registration Statement, the Issuer shall promptly commence the Registered Exchange Offer, it being the objective of such Registered Exchange Offer to provide to each Holder the ability to exchange all of its Securities for New Securities issued in the Registered Exchange Offer (assuming that such Holder (i) is not an Affiliate of the Issuer, (ii) acquires the New Securities in the ordinary course of such Holder’s business, (iii) is not engaged in, does not intend to engage in, and has no arrangements or understanding with any person to participate in, the distribution (within the meaning of the Securities Act) of the New Securities in violation of the Securities Act, (iv) is not an Initial Purchaser holding the Securities that have the status of an unsold allotment remaining from the Initial Placement, and (v) is not otherwise prohibited by any law or policy of the Commission from participating in the Registered Exchange Offer).

 

(c)                                  In connection with the Registered Exchange Offer, the Issuer shall use its commercially reasonable efforts to:

 

(i)                                     after the effectiveness of the Exchange Offer Registration Statement, mail or electronically deliver or cause to be mailed or electronically delivered to each Holder a copy of the Prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related documents;

 

(ii)                                  keep the Registered Exchange Offer open for at least 20 Business Days after the date notice thereof is mailed or electronically delivered to the Holders (or, in each case, longer if required by applicable law);

 

(iii)                               keep the Exchange Offer Registration Statement continuously effective and the Prospectus usable under the Securities Act, supplemented and amended as required under the Securities Act, in order to permit the Prospectus to be lawfully delivered by all Holders and Exchanging Dealers subject to the prospectus delivery requirements of the Securities Act for a period ending on the earlier of (A) the last day of the Exchange Offer Registration Period and (B) the date on which no Holder or Exchanging Dealer is any longer required to deliver a prospectus in connection with any sale of New Securities;

 

(iv)                              utilize the services of a depositary for the Registered Exchange Offer, which may be the Trustee or an Affiliate of the Trustee;

 

(v)                                 permit Holders to withdraw tendered Securities at any time prior to the close of business, New York time, on the last Business Day on which the Registered Exchange Offer is open;

 

(vi)                              prior to effectiveness of the Exchange Offer Registration Statement, provide a supplemental letter to the Commission: (A) stating that the Issuer is conducting the Registered Exchange Offer in reliance on the position of the Commission in Exxon Capital Holdings Corporation (Pub. avail. May 13,

 

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1988) and Morgan Stanley and Co., Inc. (Pub. avail. June 5, 1991), as interpreted by Shearman &  Sterling LLP (Pub. avail. July 2, 1993); and (B) including a representation that the Issuer has not entered into any arrangement or understanding with any person to distribute the New Securities to be received in the Registered Exchange Offer and that, to the Issuer’s knowledge, each Holder participating in the Registered Exchange Offer is acquiring the New Securities in the ordinary course of business and has no arrangement or understanding with any person to participate in the distribution of the New Securities; and

 

(vii)                           comply in all material respects with all applicable laws in connection with the Registered Exchange Offer.

 

(d)                                 As soon as practicable after the close of the Registered Exchange Offer and not later than 45 days after the Exchange Offer Registration Statement becomes effective, the Issuer shall:

 

(i)                                     accept for exchange all Securities tendered and not validly withdrawn pursuant to the Registered Exchange Offer;

 

(ii)                                  deliver or cause to be delivered to the Trustee for cancellation in accordance with Section 4(r) hereof all Securities so accepted for exchange; and

 

(iii)                               cause the Trustee promptly to authenticate and deliver to each Holder of Securities a principal amount of New Securities equal to the principal amount of the Securities of such Holder so accepted for exchange; provided that, in the case of any Securities held in book-entry form by a depositary, authentication and delivery to such depositary of one or more replacement Securities in book-entry form in an equivalent principal amount thereto for the account of such Holders in accordance with the Indenture shall satisfy such authentication and delivery requirement.

 

(e)                                  Each Holder hereby acknowledges and agrees that any Broker-Dealer and any such Holder using the Registered Exchange Offer to participate in a distribution of the New Securities within the meaning of the Securities Act:  (x) cannot under Commission policy as in effect on the date of this Agreement rely on the position of the Commission in Exxon Capital Holdings Corporation (Pub. avail. May 13, 1988) and Morgan Stanley and Co., Inc. (Pub. avail. June 5, 1991), as interpreted in the Commission’s letter to Shearman & Sterling (Pub. avail. July 2, 1993) and similar no-action letters; and (y) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with any secondary resale transaction, which must be covered by an effective registration statement containing the selling security holder information required by Item 507 or 508, as applicable, of Regulation S-K or any successor provisions under the Securities Act if the resales are of New Securities obtained by such Holder in exchange for Securities acquired by such Holder directly from the Issuer or one of its Affiliates.  Accordingly, each Holder participating in the Registered Exchange Offer shall be required to represent to the Issuer in writing (which may be contained in the applicable letter of transmittal) that, at the time of the consummation of the Registered Exchange Offer:

 

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(i)                                     any New Securities received by such Holder will be acquired in the ordinary course of business;

 

(ii)                                  such Holder is not engaged in, does not intend to engage in and does not and will not have any arrangement or understanding with any person to participate in, the distribution of the New Securities within the meaning of the Securities Act;

 

(iii)                               such Holder is not an Affiliate of the Issuer; and

 

(iv)                              if such Holder is an Exchanging Dealer, then such Holder will comply with the applicable provisions of the Securities Act (including, but not limited to, the prospectus delivery requirements thereunder) in connection with a sale of any New Securities received by such Holder pursuant to the Registered Exchange Offer.

 

(f)                                   If one or more Initial Purchasers determine that they are not eligible to participate in the Registered Exchange Offer with respect to the exchange of Securities constituting all or any portion of an unsold allotment remaining from the Initial Placement, at the written request of such Initial Purchaser(s), the Issuer shall issue and deliver to such Initial Purchaser(s) or the person purchasing New Securities registered under a Shelf Registration Statement as contemplated by Section 3 hereof from such Initial Purchaser(s), in exchange for such Securities, a like principal amount of its debt securities that are identical in all material respects to the New Securities except that transfer restrictions under the Securities Act shall apply to such debt securities.  The Issuer shall use its commercially reasonable efforts to cause the CUSIP Service Bureau to issue the same CUSIP number for such New Securities (which, in the case of debt securities received by an Initial Purchaser in exchange for Securities constituting an unsold allotment, may reflect a designation) as for New Securities issued pursuant to the Registered Exchange Offer.

 

(g)                                  The Issuer shall ensure that the Exchange Offer Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective date of the Exchange Offer Registration Statement or such amendment or supplement, (A) comply in all material respects with the applicable requirements of the Securities Act and (B) do not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading (it being understood that the Issuer shall not be responsible for any information pertaining to any Holder provided in writing by or on behalf of such Holder).

 

3.                                      Shelf Registration.  (a) If (i) due to any change in law or applicable interpretations thereof by the Commission or its staff, the Issuer determines upon advice of counsel it is not permitted to effect the Registered Exchange Offer as contemplated by Section 2 hereof, (ii) the Registered Exchange Offer is not consummated prior to the Exchange Offer Completion Deadline, (iii) prior to the 30th day following consummation of the Registered Exchange Offer, one or more Initial Purchasers so request in writing with respect to Securities that are not eligible to be exchanged for New Securities in the Registered Exchange Offer and

 

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that are held by it following consummation of the Registered Exchange Offer, (iv) any Holder (other than the Initial Purchasers) is not eligible under any law or policy of the Commission to participate in the Registered Exchange Offer (other than due solely to the status of such Holder as an Affiliate of the Issuer) and such Holder so requests in writing prior to the 30th day following the consummation of the Registered Exchange Offer with respect to Securities that are not eligible to be exchanged for New Securities in the Registered Exchange Offer and that are held by such Holder following consummation of the Registered Exchange Offer or (v) any Holder participates in the Registered Exchange Offer but does not receive New Securities on the date of the exchange that may be sold without restriction under U.S. federal and state securities laws (other than by reason of such Holder being an Affiliate of the Issuer), then the Issuer shall prepare and file at its cost a Shelf Registration Statement in accordance with subsection (b) below.

 

(b)                                 (i) If obligated to file the Shelf Registration Statement, the Issuer shall, as promptly as reasonably practicable, file with the Commission and shall use its commercially reasonable efforts to cause to be declared effective under the Securities Act within 120 days (or, if such day is not a Business Day, the next succeeding Business Day) after so required or requested (the “Shelf Effectiveness Deadline”), a Shelf Registration Statement relating to the offer and sale of the Securities or the New Securities, as applicable, by the Holders thereof from time to time in accordance with the methods of distribution elected by such Holders and set forth in such Shelf Registration Statement; provided, however, that no Holder (other than the Initial Purchasers) shall be entitled to have the Securities held by it covered by such Shelf Registration Statement unless such Holder agrees in writing to be bound by all of the provisions of this Agreement applicable to such Holder (it being understood that the Issuer shall not be obligated to file a Shelf Registration Statement pursuant to this Section 3 solely for the benefit of Holders who (A) would have received freely transferable Securities pursuant to the Registered Exchange Offer had they not failed to duly tender their Securities for exchange pursuant to the Registered Exchange Offer or otherwise failed to comply with the requirements of the Registered Exchange Offer as provided in Section 2 hereof or (B) failed to furnish to the Issuer such information as the Issuer requested in writing in accordance with Section 4(n) in connection with a Shelf Registration Statement); and provided, further, that with respect to New Securities received by the Initial Purchasers in exchange for Securities constituting all or any portion of an unsold allotment remaining from the Initial Placement, the Issuer may, if permitted by then current interpretations by the Commission’s staff, file a post-effective amendment to the Exchange Offer Registration Statement containing the information required by Item 507 or 508 of Regulation S-K, as applicable, in satisfaction of their obligations under this subsection with respect thereto, and any such Exchange Offer Registration Statement, as so amended, shall be referred to herein as, and governed by the provisions herein applicable to, a Shelf Registration Statement.  Notwithstanding the foregoing, the Issuer may delay filing a Shelf Registration Statement, and any amendment thereto, and may withhold efforts to cause such Shelf Registration Statement, and any such amendment thereto, to become effective if the Issuer determines in good faith that such Shelf Registration Statement, and any such amendment thereto, might interfere with or affect the negotiation or completion of any transaction that is being contemplated by the Issuer (whether or not a final decision has been made to undertake such transaction) at the time the right to delay is exercised; provided, however, that the Issuer may not exercise such right of delay or withholding of efforts (a) on more than two occasions of at least 30 consecutive days in

 

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any 12-month period during the required effectiveness period or (b) for more than 60 days (whether or not consecutive) in any 12-month period during the required effectiveness period.

 

(ii)                                  Subject to Sections 4(c) and 4(j)(ii) hereof, the Issuer shall use its commercially reasonable efforts to keep the Shelf Registration Statement continuously effective, supplemented and amended as required by the Securities Act, in order to permit the Prospectus forming part thereof to be usable by Holders for a period (the “Shelf Registration Period”) from the date the Shelf Registration Statement is declared effective by the Commission until the date upon which all the Securities covered by the Shelf Registration Statement have been sold or distributed pursuant to the Shelf Registration Statement or have ceased to be Registrable Securities.

 

(iii)                               The Issuer shall cause the Shelf Registration Statement and the related Prospectus and any amendment or supplement thereto, as of the effective date of the Shelf Registration Statement or such amendment or supplement, (A) to comply in all material respects with the applicable requirements of the Securities Act and (B) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein (in the case of the Prospectus, in the light of the circumstances under which they were made) not misleading (it being understood that the Issuer shall not be responsible for any information pertaining to any Holder provided in writing by or on behalf of such Holder).

 

4.                                      Additional Registration Procedures.  In connection with any Shelf Registration Statement and, to the extent applicable, any Exchange Offer Registration Statement, the following provisions shall apply.

 

(a)                                 The Issuer shall:

 

(i)                                     furnish to the Initial Purchasers and to counsel for the Initial Purchasers and the Holders, not less than five Business Days prior to the filing thereof with the Commission, a copy of any Exchange Offer Registration Statement and, in the case of any Shelf Registration Statement, furnish the Majority Holders and their counsel a copy of the Shelf Registration Statement, and each amendment thereof and each amendment or supplement, if any, to the Prospectus included therein and shall use its commercially reasonable efforts to reflect in each such document, when so filed with the Commission, such comments as the Initial Purchasers or Majority Holders, as applicable, and such respective counsel reasonably propose;

 

(ii)                                  include the information set forth in Annex A hereto on the facing page of the Exchange Offer Registration Statement, in Annex B hereto in the forepart of the Exchange Offer Registration Statement in a section setting forth details of the Exchange Offer, in Annex C hereto in the underwriting or plan of distribution section of the Prospectus contained in the Exchange Offer

 

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Registration Statement, and in Annex D hereto in the letter of transmittal delivered pursuant to the Registered Exchange Offer;

 

(iii)                               if requested in writing by the Initial Purchasers, include the information required by Item 507 or 508 of Regulation S-K, as applicable, in the Prospectus contained in the Exchange Offer Registration Statement; and

 

(iv)                              in the case of a Shelf Registration Statement, include the names of the Holders that propose to sell Registrable Securities pursuant to the Shelf Registration Statement as selling security holders.

 

(b)                                 The Issuer shall ensure that:

 

(i)                                     each of any Registration Statement, any amendment thereto, any Prospectus and any amendment or supplement thereto complies in all material respects with the Securities Act; and

 

(ii)                                  each of any Registration Statement, any amendment thereto and any Prospectus and any amendment or supplement thereto does not, as of its effective or issue date, as the case may be, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus or any amendment or supplement thereto, in the light of the circumstances under which they were made) not misleading.

 

(c)                                  The Issuer shall advise the Holders of Securities covered by any Shelf Registration Statement and any Exchanging Dealer under any Exchange Offer Registration Statement that, in each case, has provided in writing to the Issuer a telephone or facsimile number and address for notices, and, if requested in writing by the Initial Purchasers or any such Holder or Exchanging Dealer, shall confirm such advice in writing (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend the use of the Prospectus until the Issuer shall have remedied the basis for such suspension):

 

(i)                                     when a Registration Statement and any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective amendment thereto has become effective;

 

(ii)                                  of any request by the Commission for any amendment or supplement to the Registration Statement or the Prospectus or for additional information;

 

(iii)                               of the issuance by the Commission of any order preventing or suspending the effectiveness of the Registration Statement or the use of any Prospectus or the institution or threatening of any proceeding for any such purpose;

 

(iv)                              of the receipt by the Issuer of any notification with respect to the suspension of the qualification of the Securities or New Securities, as applicable,

 

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included therein for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose; and

 

(v)                                 of the happening of any event that requires any change in the Registration Statement or any amendment thereto or the Prospectus or any amendment or supplement thereto so that, as of such date, the same (A) does not contain any untrue statement of a material fact and (B) does not omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the Prospectus or any amendment or supplement thereto, in the light of the circumstances under which they were made) not misleading.

 

(d)                                 The Issuer shall use its commercially reasonable efforts to prevent the issuance of any order preventing or suspending the effectiveness of any Registration Statement or the qualification of the Securities or New Securities, as applicable, referred to therein for sale, or the use of any Prospectus for the offer or sale of the Securities or New Securities, as applicable, in any jurisdiction and, if issued, to obtain as soon as possible the withdrawal thereof.

 

(e)                                  The Issuer shall, upon written request, furnish to each Holder of Securities covered by any Shelf Registration Statement, without charge, at least one conformed copy of such Shelf Registration Statement and any post-effective amendment thereto, including (if specifically requested) all information incorporated therein by reference and all exhibits thereto (including exhibits incorporated by reference therein).

 

(f)                                   The Issuer shall, during the Shelf Registration Period, deliver to each Holder of Securities covered by any Shelf Registration Statement, without charge, as many copies of the Prospectus (including any preliminary prospectus) included in such Shelf Registration Statement and any amendment or supplement thereto as such Holder may reasonably request in writing.  The Issuer consents to the use of the Prospectus or any amendment or supplement thereto by each of the selling Holders of Securities in connection with the offer and sale of the Securities covered by the Prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement.

 

(g)                                  The Issuer shall promptly deliver to the Initial Purchasers, each Exchanging Dealer and each other person required to deliver a Prospectus during the Exchange Offer Registration Period, without charge, as many copies of the Prospectus included in such Exchange Offer Registration Statement and any amendment or supplement thereto as any such person may reasonably request in writing.  The Issuer consents to the use of the Prospectus or any amendment or supplement thereto by the Initial Purchasers, any Exchanging Dealer and any such other person that may be required to deliver a Prospectus following the Registered Exchange Offer in connection with the offer and sale of the New Securities covered by the Prospectus, or any amendment or supplement thereto, included in the Exchange Offer Registration Statement.

 

(h)                                 Prior to the Registered Exchange Offer or any other offering of Securities or New Securities pursuant to any Registration Statement, the Issuer shall use its commercially reasonable efforts to arrange, if necessary, for the registration and/or qualification (or exemption therefrom) of the Securities or the New Securities, as applicable, for sale under the state

 

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securities or Blue Sky laws of such jurisdictions within the United States or such non-U.S. jurisdictions as any Holder shall reasonably request in writing and shall maintain such registration and/or qualification (or exemption therefrom) in effect so long as required; provided that in no event shall the Issuer be obligated to qualify to do business in any jurisdiction where they are not then so qualified or to take any action that would subject them to service of process in suits, other than those arising out of the Initial Placement, the Registered Exchange Offer or any offering pursuant to a Shelf Registration Statement, in any such jurisdiction where they are not then so subject.

 

(i)                                     The Issuer shall cooperate with the Holders of Securities to facilitate the timely preparation and delivery of certificates representing New Securities or Securities to be issued or sold pursuant to any Registration Statement, free of any restrictive legends to the extent lawful, and in such denominations and registered in such names (consistent with the provisions of the Indenture) as Holders may request at least two Business Days prior to such sale of New Securities or Securities.

 

(j)                                    (i) Upon the occurrence of any event contemplated by subsection (c)(v) above, the Issuer shall promptly (or within the time period provided for by clause (ii) hereof, if applicable) prepare a post-effective amendment to the applicable Registration Statement and an amendment or supplement to the related Prospectus or file any other required document so that, as thereafter delivered to the Holders or purchasers of the securities included therein, the Prospectus (including the information incorporated by reference therein) will not include an untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.  In such circumstances, the period of effectiveness of the Exchange Offer Registration Statement or the Shelf Registration Statement provided for in Section 2 or Section 3, as applicable, shall be extended by the number of days from and including the date of the giving of a notice of suspension pursuant to Section 4(c) to and including the date when the Initial Purchasers, the Holders of the Securities and any known Exchanging Dealers shall have received such amended or supplemented Prospectus pursuant to this Section.

 

(ii)                                  Upon the occurrence or existence of any pending material corporate development or any other pending material event that, in the good faith judgment of the Issuer, makes it appropriate to suspend the availability of a Shelf Registration Statement and the related Prospectus, the Issuer shall give notice (without notice of the nature or details of such events) to the Holders that the availability of the Shelf Registration Statement and the related Prospectus is suspended and, upon actual receipt of any such notice, each Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration Statement until such Holder’s receipt of copies of the supplemented or amended Prospectus or it is advised in writing by the Issuer that the then current Prospectus may again be used.  The period during which the availability of the Shelf Registration Statement and the related Prospectus is suspended (the “Deferral Period”) shall not be more than two times of at least 30 calendar days in any 12-month period or more than an aggregate of 60 days (whether or not consecutive) in any 12-month period.

 

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(k)                                 Not later than the effective date of any Registration Statement, the Issuer shall provide a CUSIP number for the Securities or the New Securities, as the case may be, whose offer and sale is registered under such Registration Statement and shall provide the Trustee with printed certificates for such Securities or New Securities, in a form eligible for deposit with The Depository Trust Company.

 

(l)                                     The Issuer shall comply in all material respects with all applicable rules and regulations of the Commission and shall make generally available to their security holders an earning statement satisfying the provisions of Section 11(a) of the Securities Act as soon as practicable after the effective date of the applicable Registration Statement and in any event no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning with the first month of the Issuer’s first fiscal quarter commencing after the effective date of the applicable Registration Statement; provided that the Issuer will be deemed to have furnished such statement to its security holders to the extent it is filed on the Commission’s Electronic Data Gathering, Analysis and Retrieval system.

 

(m)                             The Issuer shall cause the Indenture to be qualified under the Trust Indenture Act as required by applicable law on the effective date of the first Registration Statement filed with the Commission.

 

(n)                                 The Issuer may require each Holder of Securities to be sold pursuant to any Shelf Registration Statement to furnish to the Issuer such information regarding such Holder and the distribution of such Securities as the Issuer may from time to time reasonably require for inclusion in such Shelf Registration Statement.  The Issuer may exclude from such Shelf Registration Statement the Securities of any Holder that fails to furnish such information within a reasonable time after receiving such request in writing.

 

(o)                                 In the case of any Shelf Registration Statement, upon the request in writing of the Majority Holders, the Issuer shall enter into customary agreements (including, if requested in writing, an underwriting agreement in customary form) and take all other appropriate actions, if any, as the Majority Holders shall reasonably request in writing in order to expedite or facilitate the registration or the disposition of their Securities, and in connection therewith, if an underwriting agreement is entered into, cause the same to contain indemnification and contribution provisions and procedures no less favorable than those set forth in Section 6 hereof.

 

(p)                                 In the case of any Shelf Registration Statement, the Issuer shall:

 

(i)                                     make available at reasonable times for inspection all relevant financial and other records and pertinent corporate documents and properties of the Issuer and its subsidiaries for inspection by the Holders of Securities whose offer and sale is or is to be registered thereunder, any underwriter participating in any disposition pursuant thereto, and any attorney, accountant or other agent retained by such Holders or any such underwriter; provided, however, that if any such records, documents or other information are related to pending or proposed acquisitions or dispositions, or otherwise are related to matters reasonably considered, in good faith, by the Issuer to constitute sensitive or proprietary

 

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information, the Issuer need not provide such records, documents or information unless the recipients enter into a confidentiality agreement in customary form and reasonably acceptable to such recipients and the Issuer;

 

(ii)                                  use its commercially reasonable efforts to cause the Issuer’s officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested in writing by any Holder of Securities whose offer and sale is or is to be registered thereunder or any such underwriter participating in any disposition pursuant thereto and their respective attorneys, accountants and agents in connection therewith as is customary for similar due diligence examinations; provided, however, that such information may not be used for any purpose other than due diligence and provided further, however, that any information that is designated in writing by the Issuer, in good faith, as confidential at the time of delivery of such information shall be kept confidential among the recipients unless such disclosure is made in connection with an arbitration or court proceeding or required by law or such information becomes available to the public generally or through a third party without an accompanying obligation of confidentiality;

 

(iii)                               make such representations and warranties to the Holders of Securities whose offer and sale is or is to be registered thereunder and the underwriters, if any, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering other customary matters, including, but not limited to, those set forth in the Purchase Agreement;

 

(iv)                              if requested in writing by the Majority Holders, their counsel or the Managing Underwriters, if any, in connection with such Shelf Registration Statement, obtain opinions of counsel to the Issuer and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the Managing Underwriters, if any) addressed to each selling Holder and the underwriters, if any, covering such matters as are customarily covered in opinions requested in primary underwritten offerings and such other matters as may be reasonably requested in writing by such Holders and underwriters;

 

(v)                                 if requested in writing by the Majority Holders, their counsel or the Managing Underwriters, if any, in connection with such Shelf Registration Statement, obtain “comfort” letters and updates thereof from the independent certified public accountants of the Issuer (and, if necessary, any other independent certified public accountants of any subsidiary of the Issuer or of any business or property(ies) acquired or to be acquired by the Issuer for which financial statements and financial data are or are required to be included or incorporated by reference in such Shelf Registration Statement), addressed to each selling Holder and the underwriters, if any, in customary form and covering matters of the type customarily covered in “comfort” letters in connection with primary underwritten offerings; and

 

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(vi)                              deliver such documents and certificates as may be reasonably requested in writing by the Majority Holders, their counsel or the Managing Underwriters, if any, including those to evidence compliance with Section 4(j) and with any customary conditions contained in the underwriting agreement or other agreement entered into by the Issuer.

 

The actions set forth in clauses (iii), (v) and (vi) of this paragraph (p) shall be performed at (A) the effective date of such Shelf Registration Statement and each post-effective amendment thereto and (B) each closing under any underwriting or similar agreement as and to the extent required thereunder.  The actions set forth in clause (iv) of this paragraph (p) shall be performed at each closing under any underwriting or similar agreement as and to the extent required thereunder.

 

(q)                                 In the case of any Exchange Offer Registration Statement in connection with an underwritten offering, the Issuer shall, if requested in writing by the Initial Purchasers, or by a Broker-Dealer that holds Securities that were acquired as a result of market-making or other trading activities:

 

(i)                                     make reasonably available for inspection by the requesting party, and any attorney, accountant or other agent retained by the requesting party, all relevant financial and other records, pertinent corporate documents and properties of the Issuer and its subsidiaries; provided, however, that, if any such records, documents or other information are related to pending or proposed acquisitions or dispositions, or otherwise are related to matters reasonably considered, in good faith, by the Issuer to constitute sensitive or proprietary information, the Issuer need not provide such records, documents or information unless the recipients  enter into a confidentiality agreement in customary form and reasonably acceptable to such recipients and the Issuer;

 

(ii)                                  cause the Issuer’s officers, directors, employees, accountants and auditors to supply all relevant information reasonably requested in writing by the requesting party or its attorneys, accountants or agents in connection with any such Exchange Offer Registration Statement as is customary for similar due diligence examinations; provided, however, that such information may not be used for any purpose other than due diligence and provided further, however, that any information that is designated in writing by the Issuer, in good faith, as confidential at the time of delivery of such information shall be kept confidential among the requesting party and its attorneys, accountants or agents, unless such disclosure is made in connection with an arbitration or court proceeding or required by law or such information becomes available to the public through a third party without an accompanying obligation of confidentiality;

 

(iii)                               make such representations and warranties to the requesting party, in form, substance and scope as are customarily made by issuers to underwriters in primary underwritten offerings and covering other customary matters, including, but not limited to, those set forth in the Purchase Agreement;

 

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(iv)                              obtain opinions of counsel to the Issuer and updates thereof (which counsel and opinions (in form, scope and substance) shall be reasonably satisfactory to the requesting party and its counsel), addressed to the requesting party, covering such matters as are customarily covered in opinions requested in primary underwritten offerings and such other matters as may be reasonably requested by the requesting party or its counsel;

 

(v)                                 obtain “comfort” letters and updates thereof from the independent certified public accountants of the Issuer (and, if necessary, any other independent certified public accountants of any subsidiary of the Issuer or of any business or property(ies) acquired or to be acquired by the Issuer for which financial statements and financial data are or are required to be included or incorporated by reference in the Exchange Offer Registration Statement), addressed to the requesting party, in customary form and covering matters of the type customarily covered in “comfort” letters in connection with primary underwritten offerings, or if requested by the requesting party or its counsel in lieu of a “comfort” letter, an agreed-upon procedures letter under Statement on Auditing Standards No. 72, covering matters requested by the requesting party or its counsel; and

 

(vi)                              deliver such documents and certificates as may be reasonably requested by the requesting party or its counsel, including those to evidence compliance with Section 4(j) and with conditions customarily contained in underwriting agreements.

 

provided, however, that the Issuer will be required to perform the foregoing actions set forth in clauses (i) through (vi) only upon the reasonable request in writing by the Initial Purchasers (if applicable) to the Issuer or the reasonable request in writing to the Issuer by one or more Broker-Dealers (if applicable) who certify to the Initial Purchasers and the Issuer in writing that they anticipate they will receive New Securities for their own account in the Registered Exchange Offer for Securities that were acquired by such Broker-Dealer as a result of market-making or other trading activities, and, based on the position of the Commission as described in Section 2(e) hereof, will be required to satisfy the prospectus delivery requirements of the Securities Act in connection with the resale of such New Securities; and, provided, further, that the Issuer will be obligated to pay the reasonable fees and expenses of only one counsel representing such Broker-Dealers, which shall be the counsel to the Initial Purchasers, unless such counsel elects not to so act, and to cause to be delivered only one, if any, comfort letter with respect to the Prospectus in the form existing on the expiration of the Registered Exchange Offer and with respect to each subsequent amendment or supplement to the Exchange Offer Registration Statement, if any, effected during the period specified above.

 

The foregoing actions set forth in clauses (iii), (v) and (vi) of this paragraph (q) shall be performed at the close of the Registered Exchange Offer and the effective date of any post-effective amendment to the Exchange Offer Registration Statement.  The actions set forth in clause (iv) of this paragraph (q) shall be performed at the close of the Registered Exchange Offer.

 

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(r)                                    If a Registered Exchange Offer is to be consummated, upon delivery of any physical certificates representing the Securities by Holders to the Issuer (or to such other person as directed by the Issuer) in exchange for physical certificates representing the New Securities, the Issuer shall mark, or caused to be marked, on the Securities so exchanged that such Securities are being cancelled in exchange for the New Securities.  In no event shall the Securities be marked as paid or otherwise satisfied.

 

(s)                                   The Issuer shall use its commercially reasonable efforts to confirm that the ratings issued to the Securities on or about the date of the Purchase Agreement will apply to the Securities or the New Securities, as the case may be, covered by a Registration Statement.

 

(t)                                    In the event that any Broker-Dealer shall underwrite any Securities or participate as a member of an underwriting syndicate or selling group or “assist in the distribution” (within the meaning of the FINRA rules) thereof, whether as a Holder of such Securities or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or otherwise, the Issuer shall cooperate with such Broker-Dealer in complying with the FINRA rules and shall pay all filing and other fees and expenses in connection therewith.

 

(u)                                 The Issuer shall use its commercially reasonable efforts to take all other steps necessary to effect the registration of the Securities or the New Securities, as the case may be, covered by a Registration Statement.

 

5.                                      Registration Expenses.  The Issuer shall bear all reasonable expenses incurred in connection with the performance of its obligations under Sections 2, 3 and 4 hereof and, in the event of any Shelf Registration Statement, will reimburse the Holders for the reasonable and documented fees and disbursements of one firm or counsel (which shall be a nationally recognized law firm experienced in securities matters designated by the Majority Holders) to act as counsel for the Holders in connection therewith (collectively, the “Registration Expenses”).  The Registration Expenses shall exclude any and all fees and expenses of advisors or counsel to parties other than the Issuer (other than the fees and expenses set forth in Section 4(t) and in the preceding sentence), underwriting discounts and commissions, brokerage commissions, and transfer taxes, if any, relating to the sale or disposition of Securities or New Securities.

 

6.                                      Indemnification and Contribution

 

(a)                                 The Parent and the Issuer, jointly and severally, agree to indemnify and hold harmless each Holder of Securities or New Securities, as the case may be, covered by any Registration Statement, the Initial Purchasers and, with respect to any Prospectus delivery as contemplated in Section 4(g) hereof, each Exchanging Dealer, the directors, officers and Affiliates of each such Holder, Initial Purchaser or Exchanging Dealer and each person, if any, who controls any such Holder, Initial Purchaser or Exchanging Dealer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act from and against any and all losses, claims, damages and liabilities, (including, without limitation, documented legal fees and other documented expenses reasonably incurred in connection with any suit, action or proceeding or any claim asserted, as such documented fees and expenses are incurred), joint or several, that arise out of, or are based upon, any untrue statement or alleged untrue statement of a

 

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material fact contained in the Registration Statement as originally filed or in any amendment thereof, or in any preliminary Prospectus or the Prospectus, or in any amendment thereof or supplement thereto, or any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Holder, Initial Purchaser or Exchanging Dealer furnished to the Issuer in writing by such Holder, Initial Purchaser or Exchanging Dealer through the Representatives expressly for use therein.

 

The Issuer agrees to indemnify as provided in this Section 6(a) or contribute as provided in Section 6(e) hereof to any action or Loss incurred by each Underwriter, if any, of Securities or New Securities, as the case may be, covered by a Registration Statement, on substantially the same basis as that of the indemnification of the Initial Purchasers and the selling Holders provided in this Section 6(a) and shall, if requested in writing by any Holder, enter into an underwriting agreement reflecting such agreement, as provided in Section 4(o) hereof.

 

(b)                                 Indemnification of the Parent and the Issuer.  Each Holder of Securities covered by a Registration Statement (including the Initial Purchasers that are Holders, in such capacity), agrees, severally and not jointly, to indemnify and hold harmless each of the Parent and the Issuer, each of their respective directors, each of their respective officers who signed such Registration Statement and each person, if any, who controls the Parent or the Issuer within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act to the same extent as the indemnity set forth in Section 6(a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to such Holder furnished to the Issuer in writing by such Holder expressly for use in the documents referred to in the foregoing indemnity.  This indemnity agreement will be in addition to any liability that any such Holder may otherwise have.

 

(c)                                  Notice and Procedures.  If any suit, action, proceeding (including any governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such person (the “Indemnified Person”) shall promptly notify the person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have under Section 6(a) or (b) above except to the extent that it has been materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under Section6(a) or (b) above.  If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and any others entitled to indemnification pursuant to this Section 7 that the Indemnifying Person may designate in such proceeding and shall pay the documented fees and expenses of such proceeding and shall pay the documented fees and expenses of such counsel related to such proceeding, as

 

18

 

incurred.  In any such proceeding, any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel reasonably incurred by such Indemnified Person shall be at the expense of such Indemnified Person unless: (i) the Indemnifying Person and the Indemnified Person shall have mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded based on the advice of counsel that there may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them.  It is understood and agreed that the Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the documented fees and expenses of more than one separate firm (in addition to any one local counsel in each relevant jurisdiction) for all Indemnified Persons, and that all documented fees and expenses reasonably incurred by such Indemnified Person shall be reimbursed as they are incurred.  Any such separate firm for any Holder and the directors, officers and any control persons of any such Holders shall be designated in writing by the Holders who sold a majority in aggregate principal amount of the Securities or New Securities by all such Holders and any such separate firm for the Parent, the Issuer, their respective directors and officers and any control persons of the Parent and the Issuer shall be designated in writing by the Issuer.  The Indemnifying Person shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement or judgment.  No Indemnifying Person shall, without the written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such Indemnified Person, in form and substance reasonably satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any Indemnified Person.

 

(d)                                 Contribution.  If the indemnification provided for in Paragraph 6(a) or (b) hereof is unavailable to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under Section 6(a) or (b), as the case may be in lieu of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities in such proportion as is appropriate to reflect the relative benefits received by the Parent and the Issuer on the one hand, and the Holders, Initial Purchasers, Exchanging Dealers or Underwriters, on the other hand, from the offering of the Securities or the New Securities; provided, however, that in no event shall (i) an Initial Purchaser be require to contribute any amount in excess of the total discounts and commissions received by such Initial Purchaser with respect to any offering of Securities or New Securities, (ii) any Underwriter be required to contribute any amount in excess of the total discounts and commissions received by such Underwriter with respect to any offering of New Securities purchased by such Underwriter, and (iii) any Holder be required to contribute any amount in excess of the amount by which the

 

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net proceeds by such Holder from the sale of Securities or New Securities, as applicable, pursuant to a Registration Statement exceeds the amount of any damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  If the allocation provided by the immediately preceding sentence is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in the immediately preceding sentence but also the relative fault of the Parent and the Issuer on the one hand, and the Holders, Initial Purchasers, Exchanging Dealers or Underwriters on the other hand, in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations.  Benefits received by the Parent and the Issuer, on the one hand, and the Initial Purchasers, on the other hand, shall be deemed to be in the same respective proportions as the net proceeds (before deducting expenses) received by the Issuer from the sale of the Securities and the total discounts and commissions received by the Initial Purchasers as set forth in the Final Offering Memorandum and bear to the aggregate offering price of the Securities.  Benefits received by any other Holders shall be deemed to be equal to the value of receiving Securities or New Securities, as applicable, registered under the Securities Act.  Benefits received by any Underwriter shall be deemed to be equal to the total underwriting discounts and commissions, as set forth on the cover page of the Prospectus forming a part of the Registration Statement which resulted in such Losses.  The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a  material fact or the omission to state a material fact relates to information supplied by the applicable party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. Notwithstanding the provisions of this Section 6(d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

(e)                                  Limitation on Liability.  The Transaction Entities and the Holders, Initial Purchasers or Exchanging Dealers agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Holders, Initial Purchasers or Exchanging Dealers were treated as one entity for such purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above.  The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any documented legal or other expenses reasonably incurred by such Indemnified Person in connection with any such action or claim.  Notwithstanding the provisions of this Section 7, in no event shall a Holder, Initial Purchaser or Exchanging Dealer be required to contribute any amount in excess of the amount by which the total discounts and commissions received by such Holder, Initial Purchaser or Exchanging Dealer with respect to the offering of the Securities exceeds the amount of any damages that such Holder, Initial Purchaser or Exchanging Dealer has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The Holder’s, Initial Purchaser’s or Exchanging Dealer’s obligations to contribute pursuant to this Section 7 are several in proportion to their respective purchase obligations hereunder and not joint.

 

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(f)                                   Non-Exclusive Remedies.  The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity.

 

7.                                      Underwritten Registrations.

 

(a) If any of the Securities or New Securities, as the case may be, covered by any Shelf Registration Statement are to be sold in an underwritten offering, the Managing Underwriters shall be selected by the Majority Holders and shall be reasonably acceptable to the Issuer.

 

(b)                                 No person may participate in any underwritten offering pursuant to any Shelf Registration Statement, unless such person (i) agrees to sell such person’s Securities or New Securities, as the case may be, on the basis reasonably provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) timely completes and executes all questionnaires, powers of attorney, indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements.

 

8.                                      Registration Defaults.  If any of the following events (each such event, a “Registration Default”) shall occur, then  additional interest (the “Additional Interest”) shall accrue on the outstanding principal amount of the Registrable Securities and shall be payable by the Issuer to the Holders thereof on the same dates on which interest is otherwise payable as follows:

 

(a)                                 if any Registration Statement required by this Agreement is not declared effective by the Commission on or prior to, in the case of any required Exchange Offer Registration Statement, the Exchange Offer Completion Deadline (unless the applicable Registered Exchange Offer is not permissible due to any change in law or applicable interpretations thereof by the Commission or its staff), or, in the case of any required Shelf Registration Statement, the Shelf Effectiveness Deadline, then commencing on the day after such Exchange Offer Completion Deadline or Shelf Effectiveness Deadline, as applicable, Additional Interest shall accrue on the outstanding principal amount of the Registrable Securities at a rate of 0.25% per annum for the first 90 days plus an additional 0.25% per annum as of the end of each subsequent 90-day period thereafter, in each case until the required Registration Statement becomes effective, up to a maximum increase of 0.50% per annum; or

 

(b)                                 if any Registered Exchange Offer required by this Agreement is not kept open by the Issuer for at least 20 Business Days (or longer if required by applicable law) after the date the Issuer mails or electronically delivers notice of the Registered Exchange Offer to the Holders of the Securities or is not completed prior to the Exchange Offer Completion Deadline, then commencing on the day the Registered Exchange Offer is concluded or the day after the Exchange Offer Completion Deadline, respectively, Additional Interest shall accrue on the outstanding principal amount of the Registrable Securities at a rate of 0.25% per annum for the first 90 days plus an additional 0.25% per annum as of the end of each subsequent 90-day period thereafter, in each case until the Registered Exchange Offer required by this Agreement is kept

 

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open by the Issuer for at least 20 Business Days (or longer if required by applicable law) or completed, as applicable, up to a maximum increase of 0.50% per annum; or

 

(c)                                  if any Registration Statement required by this Agreement has been declared effective but ceases to be effective or the Prospectus ceases to be usable at any time during which it is required to be effective or usable, as applicable, under this Agreement, except during a permitted Deferral Period, without being succeeded within one Business Day by a post-effective amendment to such Registration Statement that cures such failure and that is itself declared effective on the same Business Day of its filing, then, commencing on the day the Registration Statement ceases to be effective or the Prospectus ceases to be usable, as applicable, Additional Interest shall accrue on the outstanding principal amount of Registrable Securities at a rate of 0.25% per annum for the first 90 days plus an additional 0.25% per annum as of the end of each subsequent 90-day period thereafter, in each case until the required Registration Statement becomes effective again or the Prospectus becomes usable again, as applicable, up to a maximum increase of 0.50% per annum;

 

provided, however, that Additional Interest may not accrue under more than one Registration Default for the Registrable Securities at any one time; provided, further, that upon the cure of all Registration Defaults for the Registrable Securities that have occurred, Additional Interest shall cease to accrue.

 

9.                                      No Inconsistent Agreements.  The Issuer has not entered into, and agrees not to enter into, any agreement with respect to their securities that is inconsistent with the rights granted to the Holders herein or that otherwise conflicts with the provisions hereof.  Notwithstanding the foregoing, however, such provision shall not prohibit the Issuer from satisfying its obligations under any existing agreements providing security holders with registration rights.

 

10.                               Amendments and Waivers.  The provisions of this Agreement may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Issuer has obtained the written consent of the Holders of a majority of the aggregate principal amount of the Registrable Securities outstanding; provided that, with respect to any matter that directly or indirectly affects the rights of the Initial Purchasers hereunder, the Issuer shall obtain the written consent of the Initial Purchasers against which such amendment, qualification, modification, supplement, waiver or consent is to be effective; provided, further, that no amendment, qualification, modification, supplement, waiver or consent with respect to Section 8 hereof shall be effective as against any Holder of Registered Securities unless consented to in writing by such Holder; and provided, further, that the provisions of this Section 10 may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the Issuer has obtained the written consent of the Initial Purchasers and each Holder.  Notwithstanding the foregoing (except the foregoing provisos), a waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Securities or New Securities, as the case may be, are being sold pursuant to a Registration Statement and that does not directly or indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of Securities or New Securities, as the case may be, being sold rather than registered under such Registration Statement.

 

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11.                               Notices.  All notices and other communications provided for or permitted hereunder shall be made in writing by hand-delivery, first-class mail, electronic delivery, telex, telecopier or air courier guaranteeing overnight delivery:

 

(a)                                 if to a Holder, at the most current address given by such Holder to the Issuer in accordance with the provisions of this Section 11, which address initially is, with respect to each Holder, the address of such Holder maintained by the Registrar under the Indenture;

 

(b)                                 if to the Initial Purchasers, initially at the address or addresses set forth in the Purchase Agreement; and

 

(c)                                  if to the Issuer, initially at the Issuer’s address set forth in the Purchase Agreement.

 

All such notices and communications shall be deemed to have been duly given when received.

 

The Initial Purchasers or the Issuer, by notice to the other parties, may designate additional or different addresses for subsequent notices or communications.

 

12.                               Remedies.  Each Holder, in addition to being entitled to exercise all rights provided to it herein, in the Indenture or in the Purchase Agreement or granted by law, including recovery of liquidated or other damages, will be entitled to specific performance of its rights under this Agreement.  The Issuer agrees that monetary damages would not be adequate compensation for any Loss incurred by reason of a breach by them of the provisions of this Agreement and hereby agree to waive in any action for specific performance the defense that a remedy at law would be adequate.

 

13.                               Successors.  This Agreement shall inure to the benefit of, and be binding upon, the parties hereto, their respective successors and assigns, including, without the need for an express assignment or any consent thereto by the Issuer, subsequent Holders of Securities and the New Securities, or the indemnified persons referred to in Section 6 hereof.  The Issuer hereby agrees to extend the benefits of this Agreement to each Holder of Securities and New Securities from time to time, and any such Holder may specifically enforce the provisions of this Agreement as if an original party hereto.

 

14.                               Integration.  This Agreement superseded all prior agreements and understandings (whether written or oral) among the parties with respect to the subject matter hereof.

 

15.                               Counterparts.  This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

16.                               Headings.  The section headings used herein are for convenience only and shall not affect the construction hereof.

 

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17.                               Applicable Law.  This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.  The parties hereto each hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all rights to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

18.                               Severability.  In the event that any one or more of the provisions contained herein, or the application thereof in any circumstances, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired or affected thereby, it being intended that all of the rights and privileges of the parties shall be enforceable to the fullest extent permitted by law.

 

19.                               Securities Held by the Issuer, etc.  Whenever the consent or approval of Holders of a specified percentage in aggregate principal amount of Securities or New Securities is required hereunder, Securities or New Securities, as applicable, held by the Issuer or its Affiliates shall be deemed not outstanding in determining whether such consent or approval was given by the Holders of such required percentage.

 

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If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement between the Issuer and the Initial Purchasers.

 

	
 
    	
WASHINGTON PRIME GROUP, L.P.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
Washington Prime Group Inc.,
    
	
 
    	
 
    	
its General Partner
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ C. Marc Richards
    
	
 
    	
 
    	
Name: C.Marc Richards
    
	
 
    	
 
    	
Title: Chief Administrative Officer
    

 

A-1

 

	
The foregoing Agreement is hereby confirmed   and accepted as of the date first above written.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 CITIGROUP GLOBAL MARKETS INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By: 
    	
/s/ John Wieker
    	
 
    
	
 
    	
Name: John Wieker
    	
 
    
	
 
    	
Title: Director
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
J.P. MORGAN   SECURITIES LLC 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Robert Bottamedi
    	
 
    
	
 
    	
Name: Robert Bottamedi
    	
 
    
	
 
    	
Title: Vice President
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
RBS SECURITIES   INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By: 
    	
/s/ Sarah Kanes
    	
 
    
	
 
    	
Name: Sarah Kanes
    	
 
    
	
 
    	
Title: Managing Director
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
For themselves and as Representatives of the   other several Initial Purchasers
    	
 
    

 

2

 

ANNEX A

 

Each broker-dealer that receives New Securities for its own account pursuant to the Registered Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities.  The Letter of Transmittal states that, by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.  This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of New Securities received in exchange for Securities where such Securities were acquired by such broker-dealer as a result of market-making activities or other trading activities.  The Issuer has agreed that, for a period of 120 days after the completion of a Registered Exchange Offer, it will make this prospectus available to any broker-dealer for use in connection with any such resale.  See “Plan of Distribution.”

 

3

 

ANNEX B

 

Each broker-dealer that receives New Securities for its own account in exchange for Securities, where such Securities were acquired by such broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities.  See “Plan of Distribution.”

 

B-1

 

ANNEX C

 

PLAN OF DISTRIBUTION

 

Each broker-dealer that receives New Securities for its own account pursuant to the Registered Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of such New Securities.  This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of New Securities received in exchange for Securities where such Securities were acquired as a result of market-making activities or other trading activities.  To the extent any such broker-dealer participates in the Exchange Offer, the Issuer has agreed that, for a period of 120 days after the completion of the Registered Exchange Offer, it will make this prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale, and will deliver as many additional copies of this prospectus and any amendment or supplement to this prospectus to any broker-dealer that requests such documents in the Letter of Transmittal.

 

The Issuer will not receive any proceeds from any sale of New Securities by brokers-dealers.  New Securities received by broker-dealers for their own account pursuant to the Registered Exchange Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the New Securities or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices.  Any such resale may be made directly to purchasers or to or through underwriters, agents or brokers or dealers who may receive compensation in the form of discounts, commissions or concessions.  Any broker-dealer that resells New Securities that were received by it for its own account pursuant to the Registered Exchange Offer and any broker or dealer that participates in a distribution of such New Securities may be deemed to be an “underwriter” within the meaning of the Securities Act and any profit of any such resale of New Securities and any discounts, commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act.  The Letter of Transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

The Issuer has agreed to pay all expenses incident to the Registered Exchange Offer other than discounts, commissions or concessions of any brokers or dealers and will indemnify the holders and offering participants (including any broker-dealers) against certain liabilities, including liabilities under the Securities Act.

 

C-1

 

ANNEX D

 

Rider A

 

PLEASE FILL IN YOUR NAME AND ADDRESS BELOW IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

 

	
Name:
    	
 
    	
 
    
	
Address:
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

Rider B

 

If the undersigned is not a broker-dealer, the undersigned represents that it acquired the New Securities in the ordinary course of its business, it is not engaged in, and does not intend to engage in, a distribution of New Securities within the meaning of the Securities Act and it does not have, and will not have, any arrangements or understandings with any person to participate in a distribution of New Securities.  If the undersigned is a broker-dealer that will receive New Securities for its own account in exchange for Securities, it represents that the Securities to be exchanged for New Securities were acquired by it as a result of market-making activities or other trading activities and acknowledges that it will deliver a prospectus in connection with any resale of such New Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

D-1

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