<PAGE> 1
As filed with the Securities and Exchange Commission on March 21, 1994.
REGISTRATION NO. 022-22175
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
AMENDMENT NO. 1
TO
FORM T-3
FOR APPLICATIONS FOR QUALIFICATION OF INDENTURES
UNDER THE TRUST INDENTURE ACT OF 1939
__________________
LONE STAR INDUSTRIES, INC.
(Name of Applicant)
300 FIRST STAMFORD PLACE
Stamford, Connecticut 06912-0014
(Address of Principal Executive Offices)
__________________
SECURITIES TO BE ISSUED UNDER THE
INDENTURE TO BE QUALIFIED
<TABLE>
<CAPTION>
Title of Class Amount
-------------- ------
<S> <C>
10% Senior Notes Due 2003 . . . . . . $78,000,000
</TABLE>
__________________
The Applicant hereby amends this application for qualification on such date or
dates as may be necessary to delay its effectiveness until (i) the 20th day
after the filing of a further amendment which specifically states that it
shall supersede this amendment, or (ii) such date as the Commission, acting
pursuant to Section 307(c) of the Act, may determine upon the written request
of the obligor.
__________________
Approximate date of proposed exchange: As soon as practicable.
Name and Address of Agent for Service: John J. Martin, Esq., Senior Vice
President, General Counsel and
Secretary
Lone Star Industries, Inc.
300 First Stamford Place
Stamford, Connecticut 06912-0014
<PAGE> 2
GENERAL
ITEM 1. GENERAL INFORMATION
(a) Form of Organization.
Corporation.
(b) State or other sovereign power under the laws of which organized.
Delaware.
ITEM 2. SECURITIES ACT EXEMPTION APPLICABLE
State briefly the facts relied upon by the applicant as a basis for
the claim that registration of the Indenture Securities under the Securities
Act of 1933 is not required.
Lone Star Industries, Inc. (the "Company") proposes to issue, as part
of its Modified Amended Consolidated Plan of Reorganization, dated November 4,
1993, pursuant to Section 1121(a) of the United States Bankruptcy Code (the
"Plan of Reorganization"), its 10% Senior Notes Due 2003 (the "Senior Notes")
and to guarantee (the "Guarantee") a portion of certain 10% Asset Proceeds
Notes (the "Asset Proceeds Notes") issued by Rosebud Holdings, Inc., a newly
formed wholly-owned subsidiary of the Company. Upon a call under the
Guarantee, the Company may issue up to an aggregate $28,000,000 principal
amount of five-year notes (the "Guarantee Notes"). The Senior Notes may be
guaranteed from time to time by certain of the Company's affiliates. Each of
these securities will be issued to discharge in part claims of existing
creditors in the Bankruptcy Proceeding described below. The Company has filed
with the United States Bankruptcy Court for the Southern District of New York
(the "Bankruptcy Court") a Modified Amended Disclosure Statement (the
"Disclosure Statement") for the purpose of soliciting votes of holders of
claims or stock interests in the Company and certain of its affiliates for
acceptance or rejection of the Plan of Reorganization (Case Nos. 90 B 21276 to
90 B 21286, 90 B 21334 and 90 B 21335 (HS)). At a hearing held on December 7,
1993, the Bankruptcy Court approved the Disclosure Statement. At a hearing
held on February 16 and 17, 1994, the Bankruptcy Court confirmed the Plan of
Reorganization. A copy of the Disclosure Statement, with the Plan of
Reorganization annexed thereto as an exhibit, is attached hereto as Exhibit T3E
with a modification to the Plan of Reorganization annexed hereto as Exhibit
T3E(a). The Senior Notes are to be issued under an indenture (the "Senior Note
Indenture") between the Company and Chemical Bank, a form of which is attached
hereto as Exhibit T3C. Each of (i) the Asset Proceeds Notes and the Guarantee
and (ii) the Guarantee Notes, will be issued under indentures separate from the
one being qualified hereunder and are the subject of separate Form T-3's filed
with the Securities and Exchange Commission.
The Company believes that the issuance of the Senior Notes and the
related guarantees is exempt from the registration requirements of the
Securities Act of 1933 (the "Securities Act") pursuant to Section 1145 of the
United States Bankruptcy Code. Section 1145 exempts from the registration
requirements of the Securities Act "the offer or sale under a plan of a
security of the debtor . . . in exchange for a claim against, an interest in,
or a claim for an administrative expense in the case concerning, the debtor.."
The Company will be issuing the Senior Notes pursuant to the Plan of
Reorganization solely in exchange for the claims of certain existing creditors.
There will be no sales of Senior Notes by or through an underwriter, as that
term is defined in Section 1145(b) of the Bankruptcy Code, in connection with
the Plan of Reorganization.
2
<PAGE> 3
AFFILIATIONS
ITEM 3. AFFILIATES
Furnish a list or diagram of all affiliates of the applicant and
indicate the respective percentages of voting securities or other bases of
control.
Affiliates of the Company may be deemed to include the following as of
March 21, 1994:
1. Hawaiian Cement, a Hawaiian general partnership in which the
Company indirectly has a 50% interest.
2. Kosmos Cement Company, a Kentucky general partnership in which the
Company indirectly has a 25% interest.
3. Lone Star-Falcon, a Texas general partnership in which the Company
has a 50% interest.
4. RMC LONESTAR, a California general partnership in which the
Company indirectly has a 50% interest.
5. In a Schedule 13D filed by Scope Industries on January 7, 1992, as
amended, it was reported that Scope Industries and certain related persons
identified therein owned 2,539,200 shares of the Company's Common Stock, an
approximate 15.3% interest.
See Item 5 below.
Attached hereto as Annex A are lists of the subsidiaries of the
Company currently existing and which are expected to exist upon the
consummation of the Plan of Reorganization.
MANAGEMENT AND CONTROL
ITEM 4. DIRECTORS AND EXECUTIVE OFFICERS
List the names and complete mailing addresses of all directors or
executive officers of the applicant and all persons chosen to become directors
or executive officers. Indicate all offices with the applicant held or to be
held by each person named.
<TABLE>
<CAPTION>
Name Address Office(s)
- -------------------- ------------------------ ----------------------------
<S> <C> <C>
David W. Wallace Lone Star Industries, Inc. Director, Chairman of the
300 First Stamford Place Board and Chief Executive
Stamford, CT 06912-0014 Officer
William M. Troutman Same Director, President and Chief
Operating Officer
John J. Martin Same Senior Vice President, General
Counsel and Secretary
</TABLE>
3
<PAGE> 4
<TABLE>
<S> <C> <C>
William E. Roberts Same Vice President, Chief Financial
Officer and Corporate
Controller
Roger J. Campbell Lone Star Industries, Inc. Vice President
3905 Vincennes Rd., Ste. 400
Indianapolis, IN 46268
James T. Cleven Lone Star Industries, Inc. Vice President
300 First Stamford Place
Stamford, CT 06912-0014
Pasquale P. Diccianni Lone Star Industries, Inc. Vice President
162 Old Mill Road
West Nyack, NY 10994
Michael W. Puckett Lone Star Industries, Inc. Vice President
3905 Vincennes Rd., Ste. 400
Indianapolis, IN 46268
James E. Bacon 114 West 47th Street Director
Sixth Floor
New York, New York 10036
Theodore F. Brophy 60 Arch Street Director
Greenwich, CT 06830
Allen E. Puckett 935 Corsica Drive Director
Pacific Palisades, CA 90272
Robert G. Schwartz Metropolitan Life Insurance Director
Co.
200 Park Avenue
Suite 5700
New York, NY 10166
Jack R. Wentworth Indiana University Director
School of Business
10th & Fee Lane
Bloomington, IN 47405
</TABLE>
4
<PAGE> 5
ITEM 5. PRINCIPAL OWNERS OF VOTING SECURITIES
Furnish the following information as to each person owning 10
percent or more of the voting securities of the applicant.
AS OF MARCH 21, 1994
<TABLE>
<CAPTION>
Percentage of
Title of Class Voting Securities
Names and Complete Mailing Address Owned Amount Owned Owned
---------------------------------- -------------- ------------ -----------------
<S> <C> <C> <C>
See item 5 of Item 3 above.
</TABLE>
GIVING EFFECT TO THE PLAN OF REORGANIZATION*
<TABLE>
<CAPTION>
Percentage of
Title of Class Voting Securities
Names and Complete Mailing Address Owned Amount Owned Owned
---------------------------------- -------------- ------------ -----------------
<S> <C> <C> <C>
The Trust Company of the West Common Stock 2,135,914 17.8%
and affiliates
21st Floor
865 South Figueroa St.
Los Angeles, CA 90071
Metropolitan Life Insurance Company Common Stock 1,853,361 15.4%
and Metropolitan Insurance and
Annuity Company
One Madison Avenue
New York, NY 10010
</TABLE>
__________
* These figures are based on information provided to the Company and give
effect to the Plan of Reorganization as if it were consummated on March 21,
1994.
UNDERWRITERS
ITEM 6. UNDERWRITERS
Give the name and complete mailing address of (a) each person who,
within three years prior to the date of filing the application, acted as an
underwriter of any securities of the obligor which were outstanding on the date
of filing the application, and (b) each proposed principal underwriter of the
securities proposed to be offered. As to each person specified in (a), give
the title of each class of securities underwritten.
(a) None
(b) None
5
<PAGE> 6
CAPITAL SECURITIES
ITEM 7. CAPITALIZATION
(a) Furnish the following information as to each authorized class of
securities of the applicant.
AS OF EFFECTIVE DATE (1)
<TABLE>
<CAPTION>
Title of Class Amount Authorized Amount Outstanding
- ----------------------------------------------------------------- ----------------- ------------------
<S> <C> <C>
Common Stock, $1.00 par value per share . . . . . . . . . . . . . 25,000,000 shares 12,000,000 shares
10% Senior Notes Due 2003 . . . . . . . . . . . . . . . . . . . . $78,000,000 $78,000,000
Five Year Guarantee Notes . . . . . . . . . . . . . . . . . . . . $28,000,000 $0
</TABLE>
(1) In addition, the Company upon the Effective Date will have outstanding
4,003,333 Common Stock Purchase Warrants which will allow each holder to
purchase one share of Common Stock per Warrant at an exercise price of
$18.75 per share at any time until 5:00 p.m. on December 31, 2000. The
Company also will have stock option plans pursuant to which it may issue
options to purchase up to 750,000 shares of Common Stock. The Company also
has issued the Guarantee.
(b) Give a brief outline of the voting rights of each class of voting
securities referred to in paragraph (a) above.
Title of Class Voting Rights
-------------- -------------
Common Stock One vote per share
====================================================
INDENTURE SECURITIES
ITEM 8. ANALYSIS OF INDENTURE*
Insert at this point the analysis of indenture provisions required under
Section 305(a)(2) of the Act.
(a) Events of Default and Notice of Default
An Event of Default occurs under the Senior Note Indenture if: (i) the
Company and the Guarantors default in the payment of interest on any Senior
Note when the same becomes due and payable, whether at maturity, in connection
with any redemption, by acceleration or otherwise, and such default continues
for a period of 30 days; (ii) the Company and the Guarantors default in the
payment of the principal of any Senior Note when the same becomes due and
payable, whether at maturity, in connection with any sinking fund obligation or
redemption, by acceleration or otherwise or default under its purchase
obligation upon a Change of Control; provided however, in the case of any such
default resulting from a dispute as to the computation of Excess Net Proceeds,
that such default shall have remained uncured for a period of 30 days from the
date of notice to the Company from the Trustee as to the existence of, and
specifying the basis for, such default; (iii) the Company or any of its
Restricted Subsidiaries fails to observe or perform any of its other covenants
or agreements in the Senior Notes or the Senior Note
_______________________
* All capitalized terms used in this Item 8 shall have the same meaning, unless
otherwise defined, as that provided in the Senior Note Indenture.
6
<PAGE> 7
Indenture which failure continues for a period of 30 days after the earlier of
(a) the date on which written notice of such failure, requiring the Company to
remedy the same, shall have been given to the Company by the Trustee, or to the
Company and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Senior Notes at the time outstanding or (b) the date on which the
Company had Actual Knowledge of such failure; (iv) (a) the Company or any of
its Restricted Subsidiaries fails to pay when due (whether at maturity, in
connection with any mandatory amortization or redemption, by acceleration or
otherwise) any principal or interest on any Indebtedness with an aggregate
outstanding principal amount in excess of $1 million, whether any such
Indebtedness is outstanding as of the date of the Senior Note Indenture or is
thereafter outstanding, which default continues for any period of grace
applicable thereto, or (b) a default or event of default, as defined in one or
more indentures, agreements or other instruments evidencing or under which the
Company or any of its Restricted Subsidiaries individually or collectively
have, as of the date of the Senior Note Indenture or thereafter, outstanding at
least $1 million aggregate principal amount of Indebtedness, or (ii) Employee
Settlement Agreements (which, in the case of the Employee Settlement Agreement
with the Pension Benefits Guaranty Corporation, shall be limited to a default
under Section 9.1(a) thereof), shall happen and be continuing and such
Indebtedness or Employee Settlement Agreement shall have been accelerated so
that obligations thereunder are due and payable prior to the date on which it
would otherwise have become due and payable; provided that if such default or
event of default under such indenture or other instrument shall be remedied or
cured by the Company or the Restricted Subsidiary or waived by the holders of
such Indebtedness, prior to any acceleration thereof then the Event of Default
under the Senior Note Indenture by reason thereof shall be deemed likewise to
have been thereupon remedied, cured or waived without further action upon the
part of either the Trustee or any of the holders of Senior Notes; (v) one or
more final judgments against the Company or any of its Restricted Subsidiaries,
for payments of money which in the aggregate exceed $1 million, are entered by
a court of competent jurisdiction and such judgments are not rescinded,
annulled, stayed or discharged within 60 days; (vi) the Company and its
Restricted Subsidiaries, taken as a whole, become insolvent; (vii) the Company
or any of its Material Restricted Subsidiaries, pursuant to or within the
meaning of any Bankruptcy Law: (a) commences a voluntary case, (b) consents to
the entry of a judgment, decree or order for relief against it in any
involuntary case or proceeding, (c) consents to the appointment of a Custodian
of it or for all or substantially all of its property, (d) makes a general
assignment for the benefit of its creditors, (e) applies for, consents to or
acquiesces in the appointment of, or taking possession by, a Custodian; (viii)
a court of competent jurisdiction enters a judgment, decree or order for relief
in respect of the Company or any of its Material Restricted Subsidiaries, in an
involuntary case or proceeding under any Bankruptcy Law which shall (a) approve
as properly filed a petition seeking reorganization, arrangement, adjustment or
composition, (b) appoint a Custodian for any part of its property, or (c) order
the winding up or liquidation of its affairs, and such judgment, decree or
order remains unstayed and in effect for a period of sixty (60) consecutive
days; or (ix) any bankruptcy or insolvency petition or application is filed, or
any bankruptcy case or insolvency proceeding is commenced against, the Company
or any of its Material Restricted Subsidiaries, and such petition, application,
case or proceeding is not dismissed or stayed within sixty (60) days; and (x)
certain ERISA events.
If a default occurs and is continuing and if it is known to the Trustee,
the Trustee shall mail to each holder of the Senior Notes a notice of the
default within 90 days after it occurs. Except in the case of a default in
payment of principal of or interest on any Senior Note, the Trustee may
withhold the notice if and so long as it in good faith determines that
withholding notice is in the interests of the Holders of the Senior Notes.
(b) Authentication and Delivery of Senior Notes and Application of
Proceeds Thereof
A Senior Note shall not be valid until authenticated by the manual or
facsimile signature of the Trustee. The signature of the Trustee shall be
conclusive evidence that the Senior Note has been authenticated under the
Senior Note Indenture. The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate the Senior Notes.
The Trustee shall authenticate Senior Notes for original issue in the
aggregate principal amount of up to $78,000,000 upon a written order of the
Company. Such order shall specify the amount of Senior Notes to be
authenticated and the date on which the original issue of Senior Notes is to be
authenticated.
7
<PAGE> 8
The Senior Notes shall be issuable only in registered form without coupons
and only in denominations of $1,000 and integral multiples thereof.
(c) Release of Property Subject to Lien of Indenture
Inapplicable.
(d) Satisfaction and Discharge of Indenture
The Company may terminate all of its obligations under the Senior Note
Indenture if all Senior Notes previously authenticated and delivered (other
than mutilated, destroyed, lost or stolen Senior Notes which have been replaced
or paid) have been delivered to the Trustee for cancellation or if: (1) the
Senior Notes mature within six months or all of them are to be called for
redemption within six months and there exists no Default or Event of Default;
(2) the Company irrevocably deposits in trust with the Trustee, pursuant to an
irrevocable trust and security agreement in form and substance reasonably
satisfactory to the Trustee, money or U.S. Government Obligations sufficient
to pay principal of and interest on the Senior Notes to maturity or redemption,
as the case may be, and all other sums payable by the Company to the holders of
the Senior Notes thereunder. The Company may make the deposit only during the
six-month period. Immediately after making the deposit, the Company shall give
notice of such event to the holders; (3) the Company has paid or caused to be
paid all sums then payable by the Company to the Trustee thereunder as of the
date of such deposit; (4) the Company has delivered to the Trustee an Officers'
Certificate stating that all conditions precedent provided for in the Senior
Note Indenture relating to the satisfaction and discharge of the Senior Note
Indenture have been complied with; and (5) the Company has delivered to the
Trustee either (i) an unqualified Opinion of Counsel, stating that the holders
of the Senior Notes (a) will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit (and the defeasance
contemplated in connection therewith) and (b) will be subject to Federal income
tax on the same amounts and in the same manner and at the same times as would
have been the case if such deposit and defeasance had not occurred,and such
Holders received payment of sums provided for in the Securities on the Maturity
Date or the Redemption Date, as the case may be, or (ii) an applicable
favorable ruling to that effect received from or published by the Internal
Revenue Service.
However, the Company's obligations under the Senior Note Indenture with
respect to the Registrar and Paying Agent, securityholder lists, transfers and
exchanges, replacement securities, payment on the Senior Notes, compensation
and indemnity and replacement of the Trustee, and repayment of amounts paid to
the Company as excess money upon discharge of the Senior Note Indenture shall
survive until the Senior Notes are no longer outstanding. Thereafter, the
obligations with respect to compensation and indemnity of the Trustee and
repayment of amounts paid to the Company as excess money shall survive.
After a deposit pursuant to these provisions, the Trustee upon request shall
acknowledge in writing the discharge of the Company's obligations under the
Senior Notes and the Senior Note Indenture except for those surviving
obligations specified above.
In order to have money available on a payment date to pay principal or
interest on the Senior Notes, the U.S. Government Obligations shall be payable
as to principal or interest on or before such payment date in such amounts as
will provide the necessary money.
(e) Evidence Required to be Furnished by Obligor to Trustee
The Company shall deliver to the Trustee within 120 days after the end of
each fiscal year of the Company, and within 60 days after the end of each of
the first three fiscal quarters of the Company, an Officer's Certificate
stating that, after a review of the activities of the Company during such
period and of the Company's performance under the Senior Note Indenture,
whether or not, to the best knowledge of the signer thereof based on such
review, there has been any Default or Event of Default by the Company in
performing any of its obligations under the
8
<PAGE> 9
Senior Note Indenture or the Senior Notes. If the signer does not know of any
such Default or Event of Default, the Certificate shall describe the Default or
Event of Default and its status.
ITEM 9. OTHER OBLIGORS
Give the name and complete mailing address of any person, other than
the applicant, who is an obligor upon the indenture securities.
Any Restricted Subsidiaries of the Company existing from time to time
(except for the Restricted Subsidiaries currently existing) shall become
guarantors of all the Company's obligations under the Senior Notes.
CONTENTS OF APPLICATION FOR QUALIFICATION
This application for qualification comprises:
(a) Pages numbered 1 to 10, consecutively;
(b) Annex A consisting of two pages;
(c) The Statement of Eligibility and Qualification on Form T-1; and
(d) the following exhibits in addition to those filed as a part of the
Statement of Eligibility and Qualification of the Trustee:
Exhibit T3A. Amended and Restated Certificate of Incorporation of the
Company, incorporated by reference to Exhibit 19 to the
Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 1988. The Certificate of Incorporation will be
amended in connection with the Plan of Reorganization. The
form of Amended and Restated Certificate of Incorporation of
the Company is attached as Exhibit H to the Disclosure
Statement (Exhibit T3E). *
Exhibit T3B. Amended By-Laws of the Company, incorporated by reference to
Exhibit 2 to the Company's Report on Form 8-K, August 20,
1992. The By-Laws will be amended in connection with the Plan
of Reorganization. The form of Restated By-Laws of the
Company is attached as Exhibit I to the Disclosure Statement
(Exhibit T3E). *
Exhibit T3C. Form of the Senior Note Indenture between the Company and
Chemical Bank.
Exhibit T3D. Not applicable.
Exhibit T3E. A copy of the Disclosure Statement regarding the Plan of
Reorganization, with certain exhibits thereto.*
Exhibit T3E(a) Modification of Debtors' Plan of Reorganization.
Exhibit T3F. A cross reference sheet showing the location in the Senior
Note Indenture of the provisions inserted therein pursuant to
Sections 310 through 318(a), inclusive, of the Trust Indenture
Act of 1939, included in Exhibit T3C.
_______________________
* Previously filed.
9
<PAGE> 10
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the
applicant, Lone Star Industries, Inc., a corporation organized and existing
under the laws of Delaware, has duly caused this application to be signed on
its behalf by the undersigned, thereunto duly authorized, and its seal to be
hereunto affixed and attested all in The City of New York, and State of New
York, on the 21st day of March, 1994.
[Seal]
LONE STAR INDUSTRIES, INC.
By /s/ John J. Martin
----------------------------------
Name: John J. Martin
Title: Senior Vice President,
General Counsel and
Secretary
Attest: By /s/ John S. Johnson
---------------------------------
Name: John S. Johnson
Title: Assistant Secretary
10
<PAGE> 11
ANNEX A
LONE STAR INDUSTRIES, INC. SUBSIDIARIES
(Wholly owned unless otherwise indicated;
indentation indicates level of ownership)
Jurisdiction of
Name Incorporation
---- --------------
Lone Star Industries, Inc. Delaware
Coastline Petroleum Company, Inc. Texas
Construction Aggregates Limited Nova Scotia
Construction Materials Co.* Delaware
DeSoto Redi-Mix Corporation* Mississippi
Diamond Building Materials, Inc. California
I.C. Materials, Inc.* Illinois
KCOR CORPORATION (20% owned by Lone Star Delaware
Industries, Inc.; 80% owned by Lone Star
Hawaii Cement Corporation)
Lone Star Building Centers, Inc. Minnesota
Lone Star Building Centers (Eastern) Inc. Delaware
G. M. Stewart Lumber Company, Inc. Minnesota
Lone Star California, Inc. Delaware
Lone Star Cement Inc. (99% ownership) New Jersey
Lonestar Florida Pensucco, Inc.* Delaware
Lonestar Florida Holding, Inc.* Delaware
Lonestar Florida Cement, Inc.* Delaware
Lone Star Hawaii, Inc. Delaware
Lone Star Hawaii Cement Corporation Hawaii
Lone Star Hawaii Properties, Inc. Hawaii
__________________________________________
* Will not exist after Effective Date.
<PAGE> 12
Jurisdiction of
Name Incorporation
---- --------------
LONE STAR INDUSTRIES, INC. SUBSIDIARIES
100% OWNERSHIP UNLESS OTHERWISE NOTED (CONT'D.)
Lone Star Prestress Concrete, Inc. Texas
Lone Star Properties, Inc. Delaware
Lone Star Transportation Corp.* Delaware
Lone Star Wyoming, Inc. Delaware
New York Trap Rock Corporation Delaware
Cornell Steamboat Company New York
Gotham Suffolk Stone Corporation New York
NYTR Transportation Corp Delaware
Plastibeton Canada Inc. Canada
Rosebud Holdings, Inc.** Delaware
KCOR CORPORATION** Delaware
Las Colinas Corporation** Delaware
Lone Star California, Inc.** Delaware
Rosebud Real Properties, Inc.** Delaware
Santa Cruz Corporation** Delaware
Nazareth Cement Corporation** Delaware
Rosebud Falcon Corporation** Delaware
Rosebud General Corporation** Delaware
San-Vel Concrete Corporation Kansas
Southern Aggregates, Inc.* Mississippi
Utah Portland Quarries, Inc. Utah
___________________________________
* Will not exist after Effective Date.
** Information with respect to these corporations located here is given
effective after the consummation of the Plan of Reorganization.
<PAGE> 13
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
____________________________
FORM T-1
STATEMENT OF ELIGIBILITY
UNDER THE TRUST INDENTURE ACT OF 1939 OF
A CORPORATION DESIGNATED TO ACT AS TRUSTEE
_________________________________________
CHECK IF AN APPLICATION TO DETERMINE ELIGIBILITY OF
A TRUSTEE PURSUANT TO SECTION 305(b)(2) _________
_________________________________
CHEMICAL BANK
(Exact name of trustee as specified in its charter)
New York 13-4994650
(State of incorporation (I.R.S. employer
if not a national bank) identification No.)
270 Park Avenue
New York, New York 10017
(Address of principal executive offices) (Zip Code)
William H. McDavid
General Counsel
270 Park Avenue
New York, New York 10017
Tel: (212) 270-2611
(Name, address and telephone number of agent for service)
_______________________________________________________
Lone Star Industries, Inc.
(Exact name of obligor as specified in its charter)
Delaware 13-0982660
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
300 First Stamford Place
Stamford, Connecticut 06912-0014
(Address of principal executive offices) (Zip Code)
_____________________________________________
10% Senior Notes Due 2003
(Title of the indenture securities)
_______________________________________________________________
<PAGE> 14
GENERAL
Item 1. General Information.
Furnish the following information as to the trustee:
(a) Name and address of each examining or supervising authority to
which it is subject. New York State Banking Department, State House,
Albany, New York 12110.
Board of Governors of the Federal Reserve System, Washington, D.C.,
20551 and Federal Reserve Bank of New York, District No. 2, 33 Liberty
Street, New York, N.Y.
Federal Deposit Insurance Corporation, Washington, D.C., 20429.
(b) Whether it is authorized to exercise corporate trust powers.
Yes.
Item 2. Affiliations with the Obligor.
If the obligor is an affiliate of the trustee, describe each such
affiliation.
None.
- 2 -
<PAGE> 15
Item 16. List of Exhibits
List below all exhibits filed as a part of this Statement of
Eligibility.
1. A copy of the Articles of Association of the Trustee as now in
effect, including the Organization Certificate and the Certificates of
Amendment dated February 17, 1969, August 31, 1977, December 31, 1980,
September 9, 1982, February 28, 1985 and December 2, 1991 (see Exhibit 1 to
Form T-1 filed in connection with Registration Statement No. 33-50010, which
is incorporated by reference).
2. A copy of the Certificate of Authority of the Trustee to Commence
Business (see Exhibit 2 to Form T-1 filed in connection with Registration
Statement No. 33-50010, which is incorporated by reference).
3. None, authorization to exercise corporate trust powers being
contained in the documents identified above as Exhibits 1 and 2.
4. A copy of the existing By-Laws of the Trustee (see Exhibit 4 to
Form T-1 filed in connection with Registration Statement No. 33-46892, which is
incorporated by reference).
5. The consent of the Trustee required by Section 321(b) of the Act
(see Exhibit 6 to Form T-1 filed in connection with Registration Statement No.
33-50010, which is incorporated by reference).
6. A copy of the latest report of condition of the Trustee,
published pursuant to law or the requirements of its supervising or examining
authority.
SIGNATURE
Pursuant to the requirements of the Trust Indenture Act of 1939, the
Trustee, Chemical Bank, a corporation organized and existing under the laws of
the State of New York, has duly caused this statement of eligibility to be
signed on its behalf by the undersigned, thereunto duly authorized, all in the
City of New York and State of New York, on the 4TH day of MARCH, 1994.
CHEMICAL BANK
By /s/ John Generale
-----------------
John Generale
Vice President
- 3 -
<PAGE> 16
Exhibit 7 to Form T-1
Bank Call Notice
RESERVE DISTRICT NO. 2
CONSOLIDATED REPORT OF CONDITION OF
Chemical Bank
of 270 Park Avenue, New York, New York 10017
and Foreign and Domestic Subsidiaries,
a member of the Federal Reserve System,
at the close of business December 31, 1993, published in
accordance with a call made by the Federal Reserve Bank of this
District pursuant to the provisions of the Federal Reserve Act.
<TABLE>
<CAPTION>
DOLLAR AMOUNTS
ASSETS IN MILLIONS
<S> <C>
Cash and balances due from depository institutions:
Noninterest-bearing balances and
currency and coin . . . . . . . . . . . . . . . . . $ 4,371
Interest-bearing balances . . . . . . . . . . . . . 5,829
Securities . . . . . . . . . . . . . . . . . . . . . . . . 21,834
Federal Funds sold and securities purchased under
agreements to resell in domestic offices of the
bank and of its Edge and Agreement subsidiaries,
and in IBF's:
Federal funds sold. . . . . . . . . . . . . . . . . . 2,125
Securities purchased under agreements to resell . . . 900
Loans and lease financing receivables:
Loans and leases, net of unearned income $60,826
Less: Allowance for loan and lease losses 2,326
Less: Allocated transfer risk reserve 121
-------
Loans and leases, net of unearned income,
allowance, and reserve . . . . . . . . . . . . . . . 58,379
Assets held in trading accounts . . . . . . . . . . . . . 8,556
Premises and fixed assets (including capitalized
leases) . . . . . . . . . . . . . . . . . . . . . . . 1,238
Other real estate owned . . . . . . . . . . . . . . . . . 713
Investments in unconsolidated subsidiaries and
associated companies. . . . . . . . . . . . . . . . . 112
Customer's liability to this bank on acceptance
outstanding . . . . . . . . . . . . . . . . . . . . . 1,063
Intangible assets . . . . . . . . . . . . . . . . . . . . 526
Other assets . . . . . . . . . . . . . . . . . . . . . . . 9,864
-----------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . $ 115,510
===========
</TABLE>
-4-
<PAGE> 17
LIABILITIES
<TABLE>
<S> <C>
Deposits
In domestic offices . . . . . . . . . . . . . . . . $ 51,611
Noninterest-bearing . . . . . . . . . . . .$ 19,050
Interest-bearing . . . . . . . . . . . . . 32,561
--------
In foreign offices, Edge and Agreement subsidiaries,
and IBF's . . . . . . . . . . . . . . . . . . . . . 24,886
Noninterest-bearing . . . . . . . . . . . .$ 136
Interest-bearing . . . . . . . . . . . . . 24,750
--------
Federal funds purchased and securities sold under agree-
ments to repurchase in domestic offices of the bank and
of its Edge and Agreement subsidiaries, and in IBF's
Federal funds purchased . . . . . . . . . . . . . . 8,496
Securities sold under agreements to repurchase . . 514
Demand notes issued to the U.S. Treasury . . . . . . . . . 1,501
Other Borrowed money . . . . . . . . . . . . . . . . . . . 8,538
Mortgage indebtedness and obligations under capitalized
leases . . . . . . . . . . . . . . . . . . . . . . 20
Bank's liability on acceptances executed and outstanding . 1,084
Subordinated notes and debentures . . . . . . . . . . . . 3,500
Other liabilities . . . . . . . . . . . . . . . . . . . . 7,419
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . 107,569
-----------
EQUITY CAPITAL
Common stock . . . . . . . . . . . . . . . . . . . . . . . 620
Surplus . . . . . . . . . . . . . . . . . . . . . . . . . 4,501
Undivided profits and capital reserves . . . . . . . . . . 2,663
Less: Net unrealized loss on marketable equity
securities . . . . . . . . . . . . . . . . . . . (159)
Cumulative foreign currency translation adjustments . . . (2)
TOTAL EQUITY CAPITAL . . . . . . . . . . . . . . . . . . . 7,941
TOTAL LIABILITIES, LIMITED-LIFE PREFERRED
STOCK AND EQUITY CAPITAL . . . . . . . . . . . . . $ 115,510
===========
</TABLE>
I, Joseph L. Sclafani, S.V.P. & Controller of the
above-named bank, do hereby declare that this Report of
Condition is true and correct to the best of my knowledge
and belief.
JOSEPH L. SCLAFANI
We, the undersigned directors, attest to the correctness
of this statement of resources and liabilities. We
declare that it has been examined by us, and to the best
of our knowledge and belief has been prepared in confor-
mance with the instructions and is true and correct.
WALTER V. SHIPLEY )
EDWARD D. MILLER )DIRECTORS
WILLIAM B. HARRISON )
-5-
<PAGE> 18
EXHIBIT INDEX
Exhibit T3A. Amended and Restated Certificate of Incorporation of the
Company, incorporated by reference to Exhibit 19 to the
Company's Quarterly Report on Form 10-Q for the quarter ended
June 30, 1988. The Certificate of Incorporation will be
amended in connection with the Plan of Reorganization. The
form of Amended and Restated Certificate of Incorporation of
the Company is attached as Exhibit H to the Disclosure
Statement (Exhibit T3E). *
Exhibit T3B. Amended By-Laws of the Company, incorporated by reference to
Exhibit 2 to the Company's Report on Form 8-K, August 20,
1992. The By-Laws will be amended in connection with the Plan
of Reorganization. The form of Restated By-Laws of the
Company is attached as Exhibit I to the Disclosure Statement
(Exhibit T3E). *
Exhibit T3C. Form of the Senior Note Indenture between the Company and
Chemical Bank.
Exhibit T3D. Not applicable.
Exhibit T3E. A copy of the Disclosure Statement regarding the Plan of
Reorganization, with certain exhibits thereto.*
Exhibit T3E(a) Modification of Debtors' Plan of Reorganization.
Exhibit T3F. A cross reference sheet showing the location in the Senior
Note Indenture of the provisions inserted therein pursuant to
Sections 310 through 318(a), inclusive, of the Trust Indenture
Act of 1939, included in Exhibit T3C.
_______________________
* Previously filed.
<PAGE> 1
EXHIBIT T3C
LONE STAR INDUSTRIES, INC.
AND
CHEMICAL BANK
as
Trustee
______________
Indenture
Dated as of ____________, 1994
______________
$78,000,000
10% SENIOR NOTES DUE 2003
<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<S> <C> <C>
ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE . . . . . . . . . . . . . . . . . . . . . . . 1
SECTION 1.01 Definitions . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 1
SECTION 1.02 Incorporation by Reference of Trust Indenture Act . . . . . . . . . . . . . . 16
SECTION 1.03 Rules of Construction . . . . . . . . . . . . . .. . . . . . . . . . . . . . 16
ARTICLE 2. THE SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
SECTION 2.01 Form and Dating . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
SECTION 2.02 Execution and Authentication . . . . . . . . .. . . . . . . . . . . . . . . . 17
SECTION 2.03 Registrar and Paying Agent . . . . . . . . . .. . . . . . . . . . . . . . . . 18
SECTION 2.04 Paying Agent to Hold Money in Trust . . . . .. . . . . . . . . . . . . . . . 18
SECTION 2.05 Securityholder Lists . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 18
SECTION 2.06 Transfer and Exchange . . . . . . . . . . . .. . . . . . . . . . . . . . . . 19
SECTION 2.07 Replacement Securities . . . . . . . . . . . .. . . . . . . . . . . . . . . . 19
SECTION 2.08 Outstanding Securities . . . . . . . . . . . .. . . . . . . . . . . . . . . . 20
SECTION 2.09 Securities Held by the Company or an Affiliate . . . . . . . . . . . . . . . . 20
SECTION 2.10 Temporary Securities . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 20
SECTION 2.11 Cancellation . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 21
SECTION 2.12 Defaulted Interest . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 21
ARTICLE 3. REDEMPTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
SECTION 3.01 Notices to Trustee . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 21
SECTION 3.02 Selection of Securities to be Redeemed . . . . .. . . . . . . . . . . . . . . 21
SECTION 3.03 Notice of Redemption . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 22
SECTION 3.04 Effect of Notice of Redemption . . . . . . . . .. . . . . . . . . . . . . . . 22
SECTION 3.05 Deposit of Redemption Price . . . . . . . . . .. . . . . . . . . . . . . . . 23
SECTION 3.06 Securities Redeemed in Part . . . . . . . . . .. . . . . . . . . . . . . . . 23
SECTION 3.07 Optional Redemption . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 23
SECTION 3.08 Mandatory Redemption . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 23
SECTION 3.09 Sinking Fund Payments . . . . . . . . . . . . .. . . . . . . . . . . . . . . 24
ARTICLE 4. COVENANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SECTION 4.01 Payment of Securities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
SECTION 4.02 Maintenance of Office or Agency . . . . . . . . . . . . . . . . . . . . . . 25
SECTION 4.03 Corporate Existence . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
SECTION 4.04 Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
SECTION 4.05 Maintenance of Properties . . . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 4.06 SEC Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
SECTION 4.07 Compliance Certificate . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
SECTION 4.08 Restricted Investments and Restricted Stock Payments . . . . . . . . . . . . 27
</TABLE>
i
<PAGE> 3
<TABLE>
<S> <C> <C>
SECTION 4.09 Transactions with Affiliates . . . . . . . . . . . . . . . . . . .. . . . . . 29
SECTION 4.10 Certain Limitations on Indebtedness, etc. . . . . . . . . . . . .. . . . . . 30
SECTION 4.11 Conflicting Agreements . . . . . . . . . . . . . . . . . . . . . .. . . . . . 30
SECTION 4.12 Restricted Subsidiaries . . . . . . . . . . . . . . . . . . . . .. . . . . . 30
SECTION 4.13 Sales of Assets . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 31
SECTION 4.14 Change of Control. . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 31
SECTION 4.15 Waiver of Stay, Extension or Usury Laws . . . . . . . . . . . . .. . . . . . 33
SECTION 4.16 Maintenance of Insurance and Records, Compliance with Law . . . .. . . . . . 34
SECTION 4.17 Value of Claims Represented by Securities . . . . . . . . . . . .. . . . . . 34
SECTION 4.18 Investment Company Act of 1940 . . . . . . . . . . . . . . . . . .. . . . . . 34
SECTION 4.19 Notice of Default . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . 34
ARTICLE 5. SUCCESSORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
SECTION 5.01 When Company May Merge, etc. . . . . . . . . . . . . . . . . . . . . . . . . . 35
SECTION 5.02 Successor Substituted . . .. . . . . . . . . . . . . . . . . . . . . . . . . 35
ARTICLE 6. DEFAULTS AND REMEDIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
SECTION 6.01 Events of Default . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 36
SECTION 6.02 Acceleration . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 39
SECTION 6.03 Other Remedies . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 39
SECTION 6.04 Waiver of Past Defaults . . . . . . . . . . . . . . .. . . . . . . . . . . . 39
SECTION 6.05 Control by Majority . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 40
SECTION 6.06 Limitation on Suits . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 40
SECTION 6.07 Rights of Holders to Receive Payment . . . . . . . . .. . . . . . . . . . . . 40
SECTION 6.08 Collection Suit by Trustee . . . . . . . . . . . . . .. . . . . . . . . . . . 41
SECTION 6.09 Trustee May File Proofs of Claims . . . . . . . . . .. . . . . . . . . . . . 41
SECTION 6.10 Priorities . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . 41
SECTION 6.11 Undertaking for Costs . . . . . . . . . . . . . . . .. . . . . . . . . . . . 41
ARTICLE 7. TRUSTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
SECTION 7.01 Acceptance of Trusts; Duties of Trustee . . . . . .. . . . . . . . . . . . . 42
SECTION 7.02 Rights of Trustee . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 43
SECTION 7.03 Individual Rights of Trustee . . . . . . . . . . . .. . . . . . . . . . . . . 43
SECTION 7.04 Trustee's Disclaimer . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 43
SECTION 7.05 Notice of Defaults . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . 44
SECTION 7.06 Reports by Trustee to Holders . . . . . . . . . . .. . . . . . . . . . . . . 44
SECTION 7.07 Compensation and Indemnity . . . . . . . . . . . . .. . . . . . . . . . . . . 44
SECTION 7.08 Replacement of Trustee . . . . . . . . . . . . . . .. . . . . . . . . . . . . 45
SECTION 7.09 Successor Trustee by Merger, etc. . . . . . . . . .. . . . . . . . . . . . . 46
SECTION 7.10 Eligibility; Disqualification . . . . . . . . . . .. . . . . . . . . . . . . 46
SECTION 7.11 Preferential Collection of Claims Against Company .. . . . . . . . . . . . . 46
</TABLE>
ii
<PAGE> 4
<TABLE>
<S> <C> <C>
ARTICLE 8. DISCHARGE OF INDENTURE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 46
SECTION 8.01 Termination of Company's and Guarantors' Obligations . . . . . . . . . . .. . 46
SECTION 8.02 Application of Trust Money . . . . . . . . . . . . . . . . . . . . . . . .. . 47
SECTION 8.03 Repayment to Company or Guarantors. . . . . . . . . . . . . . . . . . . .. . 48
SECTION 8.04 Reinstatement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 48
ARTICLE 9. AMENDMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 48
SECTION 9.01 Without Consent of Holders . . . . . . . . . . . . . . . . . . . . . . . .. . 48
SECTION 9.02 With Consent of Holders . . . . . . . . . . . . . . . . . . . . . . . . .. . 49
SECTION 9.03 Compliance with Trust Indenture Act . . . . . . . . . . . . . . . . . . .. . 50
SECTION 9.04 Revocation and Effect of Consents . . . . . . . . . . . . . . . . . . . .. . 50
SECTION 9.05 Notation on or Exchange of Securities . . . . . . . . . . . . . . . . . .. . 50
SECTION 9.06 Trustee Protected . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 50
ARTICLE 10. GUARANTEE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 51
SECTION 10.01 Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 51
SECTION 10.02 Further Assurances . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 52
SECTION 10.03 Authorization of Actions to be Taken by the Trustee Under the Guarantee . .. . 53
SECTION 10.04 Authorization of Receipt of Funds by the Trustee Under the Guarantee . . .. . 53
SECTION 10.05 Termination of Guarantee . . . . . . . . . . . . . . . . . . . . . . . . .. . 53
SECTION 10.06 Execution of Guarantee . . . . . . . . . . . . . . . . . . . . . . . . . .. . 53
ARTICLE 11. MISCELLANEOUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 54
SECTION 11.01 Trust Indenture Act Controls . . . . . . . . . . . . . . . . . . . . . . .. . 54
SECTION 11.02 Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 54
SECTION 11.03 Communication by Holders with Other Holders . . . . . . . . . . . . . . . .. . 55
SECTION 11.04 Action by Securityholders. . . . . . . . . . . . . . . . . . . . . . . . .. . 55
SECTION 11.05 Proof of Execution of Instruments and of Holding of Securities. . . . . . .. . 56
SECTION 11.06 Revocation of Consents; Future Holders Bound . . . . . . . . . . . . . . .. . 56
SECTION 11.07 Obligation to Disclose Beneficial Ownership of Securities. . . . . . . . .. . 56
SECTION 11.08 Certificate and Opinion as to Conditions Precedent . . . . . . . . . . . .. . 57
SECTION 11.09 Statements Required in Certificate or Opinion . . . . . . . . . . . . . . .. . 57
SECTION 11.10 Rules by Trustee and Agents . . . . . . . . . . . . . . . . . . . . . . . .. . 57
SECTION 11.11 Legal Holidays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 58
SECTION 11.12 No Recourse Against Others . . . . . . . . . . . . . . . . . . . . . . . .. . 58
SECTION 11.13 Duplicate Originals . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 58
SECTION 11.14 Governing Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 58
</TABLE>
iii
<PAGE> 5
<TABLE>
<S> <C> <C>
SECTION 11.15 No Adverse Interpretation of Other Agreements . . . . . . . . . . . . . . . . 58
SECTION 11.16 Successors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
SECTION 11.17 Separability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
SECTION 11.18 Table of Contents, Headings, etc. . . . . . . . . . . . . . . . . . . . . . . 59
ARTICLE 12. MEETINGS OF HOLDERS OF SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 12.01 Purposes of Meetings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 12.02 Call of Meetings by Trustee. . . . . . . . . . . . . . . . . . . . . . . . . 59
SECTION 12.03 Call of Meetings by Company or Securityholders . . . . . . . . . . . . . . . 59
SECTION 12.04 Persons Entitled to Vote at Meeting . . . . . . . . . . . . . . . . . . . . . 60
SECTION 12.05 Regulations for Meeting. . . . . . . . . . . . . . . . . . . . . . . . . . . 60
</TABLE>
iv
<PAGE> 6
<TABLE>
<CAPTION>
CROSS-REFERENCE TABLE
---------------------
TIA Indenture
Section Section
- ------- ---------
<S> <C>
310 (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.10
(a)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
(a)(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.08; 7.10
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
311 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.11
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.11
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
312 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.05
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.03
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.03
313 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.06
(b)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.06
(b)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.06
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.06
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.06
314 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.06; 4.07
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.02
(c)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.08
(c)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.08
(c)(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.02
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.09
(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
315 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.05
(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01
(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.01
(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.11
316 (a)(last sentence) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.09
(a)(1)(A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.05
(a)(1)(B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.04
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Not Applicable
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.07
317 (a)(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.08
(a)(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.09
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.04
318 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.01
- -----------------------
</TABLE>
This cross-reference tables does not constitute a part of the Indenture.
<PAGE> 7
INDENTURE dated as of ____________, 1994 between LONE STAR
INDUSTRIES, INC., a Delaware corporation (the "Company"), and Chemical Bank, a
New York banking corporation (the "Trustee").
Each party agrees as follows for the benefit of the other
party and for the equal and ratable benefit of the Holders of the Company's 10%
Senior Notes due 2003 (the "Securities").
ARTICLE 1.
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01 DEFINITIONS.
"Actual Knowledge" has the meaning assigned to such term in
Section 6.01 hereof.
"Adjusted Consolidated Net Income" means, with respect to the
period commencing on the Opening Balance Sheet Date and continuing through the
last day of the fiscal quarter of the Company immediately preceding the date of
determination (i) the sum of fifty percent of the Consolidated Net Income for
each fiscal year or partial fiscal year in such period minus (ii) the sum of
one hundred percent of the Consolidated Net Losses for each fiscal year or
partial fiscal year in such period.
"Affiliate" means any Person directly or indirectly
controlling or controlled by or under common control with the Company or any
Guarantor, as the case may be; provided, however, that the term Affiliate, with
respect to the Company, shall not include any Restricted Subsidiary of the
Company. For this purpose, "control" means possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of
a Person, whether through the ownership of voting securities, by contract or
otherwise.
"Affiliated Party Transaction" has the meaning assigned to
such term in Section 4.09 hereof.
"Agent" means any Registrar, Paying Agent or Co-Registrar.
"Average Life to Stated Maturity" means, with respect to any
Indebtedness, at any date of determination, the quotient obtained by dividing
(a) the sum of the products of (i) the number of years from such date to the
date or dates of each successive scheduled principal payment (including,
without limitation, any sinking fund requirements) of such Indebtedness
multiplied by (ii) the amount of each such principal payment by (b) the sum of
all such principal payments.
<PAGE> 8
"Bankruptcy Law" has the meaning assigned to such term in
Section 6.01 hereof.
"Board of Directors" means the Board of Directors of any
Person or any committee of the Board authorized to act for it hereunder.
"Business Day" has the meaning assigned to such term in
Section 11.11 hereof.
"Capital Stock" means any shares, interests, participations,
rights in or other equivalents (however designated) of such Person's capital
stock, and any rights (other than debt securities convertible into capital
stock), warrants or options exchangeable for or convertible into such capital
stock.
"Capitalized Lease" means, at the time any determination
thereof is to be made, any lease of property, real or personal, in respect of
which the present value of the minimum rental commitment would be capitalized
on a balance sheet of the lessee in accordance with GAAP.
"Capitalized Rent" under any Capitalized Lease shall mean, at
any time as of which the amount thereof is to be determined, the lesser of (i)
10 times the amount of the maximum net rent payable under such lease during any
period of 12 consecutive months subsequent to the date as of which the rental
obligation is to be determined and (ii) the lesser of (x) the aggregate amount
of net rent payable under such lease until the expiration thereof in accordance
with its terms and (y) the aggregate amount of net rent payable thereunder
until the first date as of which the lessee shall have the right to terminate
such lease, together with any other payments required on the part of the lessee
to effect such termination. The net rent payable under any lease for any
period shall be the total amount of the rent payable by the lessee with respect
to such period but shall not include amounts required to be paid on account of
maintenance and repairs, insurance, taxes, assessments, water rates and similar
charges. The amount to be included in net rent for any given period with
respect to any portion thereof which may be a variable shall be such amount as
the Company shall in good faith determine is reasonably to be expected to be
due as a result of such variable.
"Cash Equivalents" means, at any time: (i) any evidence of
Indebtedness with a maturity of 180 days or less issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United
States of America is pledged in support thereof); (ii) certificates of deposit
or acceptances with a maturity of 180 days or less of any financial institution
that is a member of the Federal Reserve System having combined capital and
surplus and undivided profits of not less than $500,000,000; (iii) commercial
paper with a maturity of 180 days or less issued by a corporation that is not
an Affiliate of the Company organized under the laws of any state of the United
States or the District of Columbia and rated at least A-1 by S&P or at least
P-1 by Moody's or at least an equivalent rating category of another nationally
recognized securities rating agency; (iv) repurchase agreements and reverse
repurchase
2
<PAGE> 9
agreements, in each case maturing within 180 days from the date of acquisition,
collateralized by marketable direct obligations issued or unconditionally
guaranteed by the government of the United States of America or issued by any
agency thereof and backed by the full faith and credit of the United States of
America; provided that the terms of such agreements comply with the guidelines
set forth in the Federal Financial Agreements of Depository Institutions With
Securities Dealers and Others, as adopted by the Comptroller of the Currency on
October 31, 1985; and (v) money market funds described in clause (v) of the
definition of Permitted Investments.
"Change of Control" means (a) a sale of all or substantially
all of the assets of the Company as an entirety to any person (within the
meaning of Rule 13d-3 under the Exchange Act and Sections 13(d) and 14(d) of
the Exchange Act), (b) the approval by the stockholders of the Company of a
plan of liquidation or dissolution, or (c) any person or group (within the
meaning of Rule 13d-5 under the Exchange Act and Section 13(d) and 14(d) of the
Exchange Act) becoming, directly or indirectly, the "beneficial owner," as
defined in Rule 13d-3 under the Exchange Act (in a single transaction or in a
related series of transactions, by way of merger, consolidation or other
business combination or otherwise), of greater than 50% of the total voting
power entitled to vote in the election of directors, managers or trustees of
the Company or such other person surviving the transaction.
"Change of Control Offer" has the meaning assigned to such
term in Section 4.14 hereof.
"Change of Control Purchase Date" has the meaning assigned to
such term in Section 4.14 hereof.
"Change of Control Purchase Price" has the meaning assigned to
such term in Section 4.14 hereof.
"Common Stock" means the common stock, par value $1.00 per
share, of the Company or any security into which the common stock may be
converted.
"Company" means the party named as such above until a
successor replaces it pursuant to the applicable provision hereof, and
thereafter means such successor.
"Computation Date" has the meaning assigned to such term in
Section 4.08 hereof.
"Consolidated Net Income (Loss)", with respect to any period,
means net income (or loss) of the Company and its Subsidiaries, other than
Rosebud, Construction Aggregates and any Subsidiary referred to in clause
(A)(i) of the definition of Restricted Subsidiary herein, all as consolidated
(except as expressly provided herein) and determined in accordance with GAAP
but excluding, without duplication, (i) any net income of any Person who is not
a wholly-owned Subsidiary except to the extent of the amount of dividends or
distributions actually paid in cash to the Company or a wholly-owned Subsidiary
of the
3
<PAGE> 10
Company during such period, but not in excess of the Company's pro rata share
of such Person's net income subsequent to the Opening Balance Sheet Date.
"Consolidated Net Worth" means the total assets of a Person
and its Restricted Subsidiaries minus the total liabilities of a Person and its
Restricted Subsidiaries, as consolidated (except for the exclusion of
Subsidiaries which are not Restricted Subsidiaries) and determined in
accordance with GAAP.
"Construction Aggregates" means Construction Aggregates
Limited, a corporation organized under the laws of Nova Scotia.
"Corporate Trust Office of the Trustee" shall be at the
address of the Trustee specified in Section 11.02 or such other address as the
Trustee may give notice of to the Company.
"Custodian" has the meaning assigned to such term in Section
6.01 hereof.
"Default" means any event which is, or after notice or passage
of time or both would be, an Event of Default.
"Dividends" means any dividends declared by a Person on its
Capital Stock (other than (i) dividends payable to the Company or any
Restricted Subsidiary, (ii) dividends payable solely in Capital Stock of the
Company and (iii) dividends required under the terms of Preferred Stock of a
Restricted Subsidiary permitted under Section 4.10 hereof).
"EBITDA" means, in respect of any period, the Consolidated Net
Income (or Consolidated Net Loss), plus any amounts that were deducted from
revenues in determining such Consolidated Net Income (or Consolidated Net Loss)
(i) in respect of depreciation, amortization and Interest Expense, (ii) the
aggregate amount of any provisions (or minus any credits) for federal, state,
and local franchise, income and similar taxes (including taxes based on
capital), extraordinary losses and gains (which for purposes of this definition
shall mean any losses or gains resulting from the sale or other disposition of
assets other than in the ordinary course of business) and (iii) without
duplication, the aggregate amount of all non-cash charges to Consolidated Net
Income (or Consolidated Net Loss).
"Effective Date" has the meaning assigned in the Plan of
Reorganization.
"Employee Settlement Agreements" means settlement agreements
in effect on the Effective Date with the PBGC, the Official Committee of
Retired Employees of the Company and the Company's (and its Subsidiaries')
unions, and all related agreements, documents and instruments, as amended,
modified and supplemented from time to time; provided, however, no such
amendment, modification or supplement or series of related amendments,
modifications or supplements in any 12-month period result in additional
liability to the Company or its Subsidiaries with a net present value in excess
of $5 million.
4
<PAGE> 11
"ERISA" means the Employee Retirement Income Security Act of
1974, as amended from time to time.
"ERISA Controlled Group" means a group which includes the
Company and which is treated as a single employer under Section 414 of the
Internal Revenue Code of 1986, as amended.
"Event of Default" has the meaning assigned to such term in
Section 6.01 hereof.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended, and the rules and regulations of the SEC promulgated thereunder.
"Excepted Lease" means (i) any lease existing on the Effective
Date and renewals or extensions thereof and (ii) any lease from the Company or
any Restricted Subsidiary to the Company or any Restricted Subsidiary.
"Excess Net Proceeds" means at any date of determination, the
excess of (i) all Net Proceeds received from time to time during the Company's
fiscal year (or portion thereof) in which such date occurs by the Company or
any Restricted Subsidiary over (ii) $2 million.
"Fair Value" means fair market value as determined in good
faith by the Board of Directors of the Company.
"First Fiscal Year" means the first four complete fiscal
quarters following the Opening Balance Sheet Date.
"GAAP" means generally accepted accounting principles in
effect from time to time.
"Guarantee" means the Guarantee set forth in Article 10 hereof
to be made for the benefit of the Securityholders from time to time by the
Guarantors.
"Guarantee Agreement" means the Guarantee Agreement dated as
of the date hereof between the Company and Chemical Bank, as trustee, pursuant
to which the Company has guaranteed the payment of a portion of certain Asset
Proceeds Notes issued by Rosebud pursuant to a separate Indenture, dated as of
the date hereof, between Rosebud and Chemical Bank, as Trustee.
"Guarantor" means each Restricted Subsidiary in existence from
time to time other than New York Trap Rock and NYTR Transportation.
"Holder" or "Securityholder" means a Person in whose name a
Security is registered on the Registrar's books.
5
<PAGE> 12
"Incentive Compensation Plan" means the incentive compensation
plan for certain employees of the Company with respect to the sale of assets of
Rosebud as in effect on the Effective Date and any replacement or modification
thereto so long as such replacement or modification is not materially
disadvantageous to the Holders or the Company.
"Indebtedness" of any Person shall mean, without duplication,
(a) all indebtedness for money borrowed, created, incurred or assumed by such
Person or guaranteed by such Person or for which it is otherwise liable or
responsible (such as by agreement to purchase indebtedness of others), (b) all
amounts owing by such Person under Purchase Money Indebtedness or other
purchase money liens or conditional sales or other title retention agreements,
(c) all indebtedness secured by any mortgage, pledge or other lien or
encumbrance upon property owned by such Person, even though such Person has not
assumed or become liable for the payment of such indebtedness, (d) all
Capitalized Rent under any Capitalized Lease (other than Excepted Leases), (e)
the lowest mandatory or optional redemption price or liquidation value of
outstanding Preferred Stock issued by such Person, if a Restricted Subsidiary,
and owned by any Person other than the Company or another Restricted
Subsidiary, (f) all obligations under any agreement relating to the fixing of
interest rates on any Indebtedness, such as an interest rate swap, cap or
collar agreement if and to the extent the same would constitute a liability on
the balance sheet of such person prepared in accordance with GAAP and (g) all
obligations in respect of standby letters of credit issued at the request of
such Person; provided, however, that the term Indebtedness shall exclude (i)
trade payables and other accrued current liabilities incurred in the ordinary
course of business; (ii) any obligations to the Company or any Restricted
Subsidiary; (iii) any obligations arising from the Production Payment
Transaction, (iv) in the case of the Company, any obligations arising under the
Guarantee Agreement and (without limitation) any obligations on any Payment
Notes hereafter issued thereunder and (v) any particular indebtedness if, upon
or prior to the maturity thereof, there shall have been deposited with the
proper depository in trust money (or evidences of such indebtedness if
permitted by the instrument creating such indebtedness) in the necessary amount
to pay, redeem or satisfy such indebtedness as and when due, and thereafter
such money and evidences of indebtedness so deposited shall not be included in
any computation of the assets of such Person. In determining the Indebtedness
of the Company and its Restricted Subsidiaries, any Indebtedness for which the
Company and one or more Restricted Subsidiaries or for which two or more
Restricted Subsidiaries are obligated shall be deemed to be Indebtedness of
only one such Person.
"Indenture" means this Indenture as amended, amended and
restated, modified or supplemented from time to time in accordance with the
terms hereof.
"Independent Financial Advisor" means a firm of financial
advisors (i) which does not, and whose directors, officers and employees or
Affiliates do not, have a direct or indirect material financial interest in the
Company and (ii) which, in the judgment of the Board of Directors of the
Company, is otherwise independent and qualified to perform the task for which
it is to be engaged.
6
<PAGE> 13
"Interest Expense" means, in respect of any period, (i) all
interest charges on Indebtedness of the Company and its Restricted Subsidiaries
(and, in the case of Preferred Stock included in the definition of
Indebtedness, mandatory dividends thereon when payable, regardless of when
declared, other than liquidating and similar dividends) paid or payable (or,
with respect to any original issue discount, accrued) in respect of such
period, including without limitation all late charges, funding cost
adjustments, prepayment and yield protection fees paid or payable in respect of
Indebtedness, and interest payable on obligations arising under the Production
Payment Transaction, during such period and (ii) 4% of the amount of all lease
payments (other than under Capitalized Leases) in connection with any
sale-leaseback transaction entered into after the date hereof.
"Interest Expense Ratio" means the ratio of (i) the aggregate
EBITDA for the four complete fiscal quarters (or such smaller number of fiscal
quarters as have elapsed since the Opening Balance Sheet Date) immediately
preceding the date of calculation to (ii) the aggregate Interest Expense for
such four immediately preceding fiscal quarters (or shorter period, as the case
may be); provided, however, that in calculating the Interest Expense Ratio for
purposes of determining whether proposed Indebtedness may be incurred or a
sale-leaseback transaction may be entered into (A) Interest Expense shall be
calculated on a pro forma basis giving effect to the incurrence of such
proposed Indebtedness or sale-leaseback transaction as if it were incurred on
the first day of such four fiscal quarter period and (B) if the incurrence of
such Indebtedness or the entering into of any sale- leaseback transaction
shall relate to any transaction proposed by the Company (and otherwise
permitted hereunder), any EBITDA, determined on a pro forma basis, which the
Company or its Restricted Subsidiaries would have received had such transaction
been consummated immediately prior to such four fiscal quarter period
(calculating, in the event of an acquisition, such EBITDA, to the extent
practicable, from actual financial results for the appropriate period) shall be
included within the aggregate EBITDA referenced in clause (i) above for
purposes of such calculation.
"Inventory" means finished goods, work in process, repair
parts and supplies, fuels and packages, raw materials and goods in transit.
"Investment" means, other than in the ordinary course of
business, providing any cash or assets to, or extending credit to, or becoming
liable in respect of or otherwise providing for payment of any Indebtedness of,
any Person, whether or not in exchange for securities of any Person or other
consideration.
"Kosmos" means Kosmos Cement Company, a Kentucky partnership.
"Legal Holiday" has the meaning assigned to such term in
Section 11.11 hereof.
"Lien" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or similar encumbrance in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law (including any conditional sale or other
7
<PAGE> 14
title retention agreement, any Capitalized Lease in the nature thereof, and any
filing of or agreement to give any financing statement under the Uniform
Commercial Code or equivalent statutes of any jurisdiction other than an
information filing), but does not include, in the case of the Company and its
Restricted Subsidiaries, the lien granted to the Trustee under Section 7.07
hereof.
"Management Services Agreement" means the management services
agreement in effect on the Effective Date between the Company and Rosebud and
its Subsidiaries and any replacement or modification thereto so long as such
replacement or modification is not materially disadvantageous to the Holders or
the Company.
"Material Restricted Subsidiary" has the meaning assigned to
such term in Section 6.01.
"Maturity Date" of the Securities means July 31, 2003.
"Multiemployer Plan" means a Plan which is a multiemployer
plan as defined in Section 4001(a)(3) of ERISA.
"Moody's" means Moody's Investors Services, Inc. and its
successors.
"Net Proceeds" with respect to any Sale of Assets, means the
cash (in U.S. dollars or currency freely convertible into U.S. dollars)
received from such Sale of Assets after (i) provision for all income or other
taxes measured by or resulting from such sale or other disposition or the
transfer of the proceeds thereof to the Company that are payable by the Company
or any of its Subsidiaries (as reasonably and in good faith estimated by the
Chief Financial Officer of the Company or such Subsidiary), (ii) payment of all
brokerage commissions, legal and accounting fees and expenses and other fees
and expenses related to such sale or other disposition, (iii) deduction of any
amounts required to be paid to the lender pursuant to any Permitted Working
Capital Loans upon such Sale of Assets, (iv) deduction of amounts provided by
the Company or its Subsidiaries as a reserve on its regularly prepared balance
sheets (or the notes thereto), in accordance with GAAP consistently applied
(including, without limitation, subject to the next succeeding sentence, all
amounts escrowed, pledged or otherwise set aside to assume payment of such
liabilities), against any liabilities associated with the assets sold in such
Sale of Assets and retained by the Company or its Subsidiaries, including,
without limitation, trade payables, payroll and pension and other employment
and postemployment benefit liabilities and liabilities related to environmental
matters, or against any indemnification obligations associated with the sale or
other disposition, (v) deduction of amounts set aside in good faith for the
construction, acquisition or improvement of assets as contemplated by clause
(D) of the proviso to the definition of "Sale of Assets," and (vi) deduction of
any amounts required to discharge any Permitted Liens on the assets sold,
leased, conveyed or otherwise disposed of. Net Proceeds (i) shall not include
any proceeds from the transfer of the Non-Core Assets pursuant to the Plan of
Reorganization but (ii) shall include, when received in cash (x) any Net
Proceeds from the sale or other disposition of any non-cash proceeds received
by the Company or any of its
8
<PAGE> 15
Subsidiaries from a Sale of Assets and (y) any Net Proceeds released from
escrow, pledge or other set aside pursuant to the contract, settlement or other
instrument or document governing such aspect of the Sale of Assets and amounts
no longer reserved or set aside as described in clause (iv) or (v),
respectively, of the immediately preceding sentence.
"New York Trap Rock" means New York Trap Rock Corporation, a
Delaware corporation.
"Non-Core Assets" has the meaning assigned in the Plan of
Reorganization.
"NYTR Transportation" means NYTR Transportation Corp., a
Delaware corporation.
"Officer" means the Chairman of the Board, the President, any
Senior Vice-President, Executive Vice-President or any other Vice-President,
the Treasurer or the Secretary of the Company or a Guarantor, as the case may
be.
"Officers' Certificate" means a certificate signed by any two
Officers of the Company or a Guarantor, as the case may be.
"Opening Balance Sheet Date" means [April 1, 1994].
"Opinion of Counsel" means a written opinion from legal
counsel reasonably acceptable to the Trustee. Such counsel may be an employee
of or counsel for the Company, the Trustee or a Guarantor or other counsel.
"Paying Agent" has the meaning assigned to such term in
Section 2.03 hereof.
"PBGC" means the Pension Benefits Guaranty Corporation.
"Payment Notes" has the meaning assigned to such term in the
Guarantee Agreement.
"Permitted Acquisitions" means (i) any acquisition of assets
in the ordinary course of business and (ii) if approved by the Board of
Directors of the Company, any acquistion out of the ordinary course of business
(including by way of merger or consolidation) of Capital Stock or other equity
interests in (but not of less than 80% of such Capital Stock or equity
interests then outstanding), or assets of, any Person (provided such Capital
Stock, equity interests or assets primarily relate to a line of business in
which the Company or a Subsidiary is operating immediately prior to such
aquisition); provided that neither the Company nor any Restricted Subsidiary of
the Company (other than the acquired Person and its Subsidiaries) incurs any
liability, contingent or otherwise, for the payment of any deferred portion of
the purchase price therefor, other than Purchase Money Indebtedness, or for any
Indebtedness, obligation or liability, contingent or otherwise, other
9
<PAGE> 16
than any such liability, contingent or otherwise, which the Company could incur
without violation of this Indenture. For purposes of this definition, "ordinary
course of business" shall exclude any acquisition of all or substantially all
of the Capital Stock or assets of a Person, a division or line of business.
"Permitted Investment" means (i) any Investment in the Company
or any Restricted Subsidiary (whether or not such Person is a Restricted
Subsidiary before such Investment); (ii) Investments in obligations of, or
guaranteed by the United States government or any agency or political
subdivision thereof; (iii) Investments in commercial paper issued by
corporations maturing within 180 days from the date of the original issue
thereof, and rated "P-1" or better by Moody's or "A-1" or better by S&P or an
equivalent rating or better by any other nationally recognized securities
rating agency; (iv) Investments in certificates of deposit issued or
acceptances accepted by or guaranteed by any bank or trust company organized
under the laws of the United States of America or any state thereof or the
District of Columbia, in each case having capital, surplus and undivided
profits totalling more than $100,000,000 maturing within one year of the date
of purchase; (v) money market funds organized under the laws of the United
States of America or any state thereof that invest substantially all of their
assets in any of the types of Investments described in clause (ii), (iii) or
(iv) above or (xii) below including funds held by the Trustee (e.g. the
Trustee's "Hanover Fund"); (vi) any additional Investments in, or purchases of
additional interests in, Kosmos, (vii) one or more capital contributions to
Rosebud in a maximum aggregate amount of $5 million and any advance to Rosebud
or its Subsidiaries or Affiliates permitted under the Management Services
Agreement or otherwise expressly required by the Plan of Reorganization, (viii)
any Investment in Construction Aggregates after the First Fiscal Year provided
the aggregate amount of such Investments in any successive 12-month period
commencing after the end of the First Fiscal Year shall not exceed $2 million,
net of cash repayments during such period, (ix) any Investments required
pursuant to any agreement existing on the date hereof, (x) Permitted
Acquisitions, (xi) non-cash consideration received in a Sale of Assets or
series of related Sales of Assets, to the extent permitted in Section 4.13,
(xii) Cash Equivalents; (xiii) Investments in any Affiliates during the First
Fiscal Year in the aggregate amount of not more than $5 million; and (xiv)
other Investments expressly required by the Plan of Reorganization.
"Permitted Liens" means (i) Liens which may be granted from
time to time to secure and/or maintain Permitted Working Capital Loans; (ii)
Liens provided for or expressly contemplated by the Plan of Reorganization or
existing on the Effective Date; (iii) Liens in favor of the Trustee on all
property and funds held or collected by the Trustee as security for the
performance by the Company of its obligations of payment to, and reimbursement
and indemnification of, the Trustee for its services under the Indenture and
any similar liens in favor of the trustee under any indenture under which the
Payment Notes may be issued ; (iv) Liens for taxes or assessments and similar
charges, or imposed in connection with litigation or asserted claims, either
not delinquent or contested in good faith by appropriate proceedings and as to
which the Company or a Subsidiary shall have set aside on its books such
reserves as it deems adequate (provided such reserves shall be in accordance
with GAAP); (v) Liens incurred, or pledges and deposits made, in connection
with workers' compensation, unemployment insurance and other social security
benefits, or securing the performance of leases, statutory obligations,
progress payments, surety and
10
<PAGE> 17
appeal bonds and other obligations of like nature, but only to the extent any
of the foregoing are incurred in good faith in the ordinary course of business;
(vi) Liens imposed by law, such as mechanics', carriers', warehousemen's,
materialmen's and vendors' Liens, incurred in good faith in the ordinary course
of business either in respect of amounts not delinquent or contested in good
faith by appropriate proceedings as to which the Company or a Subsidiary shall
have set aside on its books such reserves as it deems adequate (provided such
reserves shall be in accordance with GAAP); (vii) zoning restrictions,
easements, licenses, covenants, reservations, restrictions on the use of real
property or irregularities of title incident thereto that do not in the
aggregate materially detract from the value of the property or assets of the
Company or any of its Subsidiaries, as the case may be, or materially impair
the use of such property in the operation of the Company's or any Subsidiary's
business; (viii) Liens created by Restricted Subsidiaries of the Company to
secure Indebtedness of such Restricted Subsidiaries to the Company or to other
Restricted Subsidiaries thereof; (ix) any Lien on any asset acquired as a part
of a Permitted Acquisition (x) Liens on the Capital Stock or other securities
of any Unrestricted Subsidiary or any asset (including the stock of any
Subsidiary thereof) of any Unrestricted Subsidiary to secure Indebtedness of
such Unrestricted Subsidiary; (xi) Liens on assets acquired in connection with
the incurrence of Purchase Money Indebtedness in accordance with the definition
thereof; (xii) Liens granted in connection with the incurrence of Refinancing
Indebtedness in accordance with the definition thereof; (xiii) Liens securing
Employee Settlement Agreements; (xiv) Liens required under the Production
Payment Transaction in accordance with the definition thereof; (xv) any Liens
on the Company's West Nyack, New York, plant and related facilities incurred in
connection with West Nyack Indebtedness; (xvi) Liens under Capital Leases and
sale and leaseback transactions, each to the extent permitted under Section
4.10 hereof; (xvii) Liens on the Capital Stock of Rosebud to secure the
Company's obligations under the Guarantee Agreement or any Payment Notes issued
thereunder; (xviii) other Liens expressly contemplated by the Plan of
Reorganization; (ix) any other Liens existing from time to time securing
obligations not exceeding, in the aggregate, $1.5 million; and (x) Liens
hereafter created to replace other Permitted Liens to the extent they secure
the same obligations or Refinancing Indebtedness and are in property having an
aggregate value no greater than the property subject to the replaced Lien.
"Permitted Working Capital Loans" means Indebtedness for money
borrowed under committed revolving credit or similar committed facilities for
working capital purposes, or the issuance of letters of credit pursuant to any
such facility, which facility may or may not be secured by a lien on cash,
Inventory, general intangibles and/or Receivables that the Company or any
Restricted Subsidiary of the Company may have from time to time, to the extent
that the aggregate principal amount of all such Indebtedness outstanding under
all such facilities at any time does not exceed the greater of (i) $35 million
or (ii) the sum of 85% of the book value of the Receivables of the Company and
its Restricted Subsidiaries and 60% of the book value of the Inventory of the
Company and its Restricted Subsidiaries.
"Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
or government or any agency or political subdivision thereof.
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"Plan" shall mean any employee benefit plan covered by Title
IV of ERISA, the funding requirements of which:
(i) were the responsibility of the Company or a
member of its ERISA Controlled Group at any time within the five years
immediately preceding the date hereof,
(ii) are currently the responsibility of the Company
or a member of its ERISA Controlled Group, or
(iii) hereafter becomes the responsibility of the
Company or a member of its ERISA Controlled Group, including any such plans as
may, within the last five years prior to the Effective Date, have been, or may
hereafter be, terminated for whatever reason.
"Plan of Reorganization" means the Company's Modified Amended
Consolidated Plan of Reorganization, as amended, modified or supplemented from
time to time prior to the Effective Date.
"Preferred Stock", as applied to the stock of any Person,
shall mean any class of stock of such Person which has a preference in respect
of dividends of such Person or other distribution of assets, or in respect of
amounts payable in the event of any voluntary or involuntary liquidation,
dissolution and winding up of such Person, over any other class of stock of
such Person.
"Production Payment Transaction" means the Amended and
Restated Conveyance of Production Payments, the Amended and Restated Marketing
Agreement, the Amended and Restated Option Agreement and the Amended and
Restated Expense and Interest Agreement, each dated as of September 1, 1988 and
between the Company and John Fouhey, as Trustee for Selleck Hill Trust, and all
related documents and instruments, as each of the foregoing may have been
amended, amended and restated or supplemented on or prior to the Effective
Date.
"Purchase Money Indebtedness" means any Indebtedness incurred
by the Company or any of its Restricted Subsidiaries in connection with the
acquisition or construction by the Company or such Restricted Subsidiary, after
the Effective Date, of equipment or other fixed assets, including Indebtedness
incurred to finance, refinance or refund the cost (including the cost of
construction) of such assets; provided that (i) the principal amount of such
Indebtedness does not exceed 75% of the Fair Value of the assets being acquired
or the cost of construction paid by or charged to the Company or such
Restricted Subsidiary and (ii) such Indebtedness shall not be secured by any
assets of the Company or any Restricted Subsidiary other than the assets
acquired or constructed with the proceeds of such Indebtedness.
"Redemption Price" has the meaning assigned to such term in
Section 3.03 hereof.
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"Receivables" means all "accounts", all "chattel paper", all
"instruments" evidencing "accounts" and all proceeds thereof, as each such term
is defined in the Uniform Commercial Code as in effect in the State of New York
on the Effective Date.
"Refinancing Indebtedness" means Indebtedness, the proceeds of
which are used to extend, renew, refinance or refund then outstanding
Indebtedness of the Company or its Restricted Subsidiaries permitted under this
Indenture, if such refinancing or refunding Indebtedness (i) does not have a
principal amount in excess of the principal amount of the Indebtedness being so
refinanced or refunded, plus customary fees, expenses and costs related to the
incurrence of such Refinancing Indebtedness; (ii) gives its holders collateral
with no greater value (as determined by the Company's Board of Directors) and
no more guaranties from the Company and its Subsidiaries (other than
Unrestricted Subsidiaries) than the Indebtedness being refinanced; (iii) has an
Average Life to Stated Maturity no shorter than the Indebtedness being
refinanced; and (iv) is at least as junior or no more senior in right of
payment to the Securities, as the case may be, as the Indebtedness being
refinanced (it being understood that the fact that such Indebtedness is secured
by a Permitted Lien or guaranteed by an Unrestricted Subsidiary shall not cause
the Indebtedness to be excluded from the definition of Refinancing Indebtedness
under this clause (iv)).
"Registrar" has the meaning assigned to such term in Section
2.03 hereof.
"Reportable Event" shall have the meaning set forth in Section
4043(b) of ERISA other than a Reportable Event as to which the provision of 30
days notice to the PBGC is waived under applicable regulations), or is the
occurrence of the events described in Section 4068(f) or 4063(a) of ERISA.
"Restricted Stock Payments" means any payment on account of
the purchase, redemption or other retirement of any shares of Capital Stock or
any other distribution in respect thereof (other than Dividends, payments to
the Company or any Restricted Subsidiary, dividends payable solely in Capital
Stock of the Company and dividends required under the terms of Preferred Stock
of a Restricted Subsidiary permitted under Section 4.10 hereof).
"Restricted Subsidiary" means, for any time of determination:
(A) any Subsidiary which has assets with a book value at such time in excess of
$1,000,000 (as reflected in the Company's most recent audited consolidated
financial statements) other than: (i) a Subsidiary substantially all of the
physical properties of which are located, and substantially all of the business
of which is carried on, outside the limits of the United States of America
(including Alaska and Hawaii) or which is organized under the laws of any
jurisdiction other than the United States of America, the District of Columbia,
the Commonwealth of Puerto Rico, the States or the possessions of the United
States; (ii) a Subsidiary the primary business of which consists of purchasing
accounts receivable and/or making loans secured by accounts receivable and/or
making investments in or in the development of real estate (other than for sale
or lease to the Company or its Restricted Subsidiaries) or providing services
directly related thereto, or which is otherwise primarily
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engaged in the finance business or in the real estate business; (iii) Rosebud,
its Subsidiaries and its and their successors-in- interest; or (iv)
Construction Aggregates; (B) any Subsidiary specified in clause (i), (ii), or
(iv) of clause (A) above which the Company, by resolution of the Board of
Directors, shall have designated as a Restricted Subsidiary; and (C) New York
Trap Rock and NYTR Transportation.
"Rosebud" means Rosebud Holdings, Inc., a Delaware corporation
and a Subsidiary of the Company.
"S&P" means Standard & Poor's Corporation and its successors.
"Sale of Assets" means any sale, lease or other conveyance
(including by way of merger or consolidation) of assets (including the Capital
Stock of any Subsidiary of the Company but excluding the Capital Stock of the
Company) of (i) the Company or any Restricted Subsidiary or (ii) any
Unrestricted Subsidiary to the extent and solely to the extent that the Company
or any Restricted Subsidiary actually receives a distribution of some or all of
the Net Proceeds of such sale, lease or conveyance; provided, however, that the
term "Sale of Assets" shall not include (A) any consolidation or merger
involving the Company or any Subsidiary for the purpose of reincorporating the
Company or such Subsidiary in another jurisdiction; (B) any sale, lease,
conveyance or other disposition of assets among or between the Company and one
or more of its Restricted Subsidiaries or among or between Restricted
Subsidiaries, including, without limitation, the merger of any Restricted
Subsidiary with and into the Company or any other Restricted Subsidiary of the
Company; (C) any sale, lease or conveyance required under the Production
Payment Transaction; (D) any sale, lease, conveyance or other disposition of
assets of the Company or any Subsidiary to the extent the proceeds thereof are
reinvested substantially contemporaneously with their receipt in the
construction, acquisition or improvement of assets by the Company and/or any
Restricted Subsidiary which the Board of Directors has in good faith determined
will be useful in the business to be conducted by the Company or such
Restricted Subsidiary; (E) any sale of Receivables provided such sale is
without recourse to the Company or its Restricted Subsidiaries or any sale of
Receivables with recourse to the Company or its Restricted Subsidiaries
provided such sale is Indebtedness permitted under this Indenture; (F) any
sale, assignment, transfer, lease, conveyance or other disposition of assets
that is governed by the provisions of Article 5 hereof; (G) any sale,
assignment, transfer, lease, conveyance or other disposition of assets that is
in the ordinary course of business (it being agreed that, for purposes of this
definition, "ordinary course of business" shall not include any sale,
assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the assets or Capital Stock of a Subsidiary or all or
substantially all of the assets of a division or line of business) or (H) any
sale, assignment, transfer, lease, conveyance or other disposition of any
property, right or interest of the Company or any Subsidiary to Rosebud or any
of its Subsidiaries or Affiliates as contemplated by the Plan of
Reorganization. For purposes of this Indenture, a reinvestment of proceeds
shall be considered substantially contemporaneous if (1) the Board of Directors
of the appropriate Person shall have approved the construction, acquisition or
improvement within 12 months before or 6 months after the consummation of the
sale, lease or other conveyance of assets and (2) such company shall have
entered into a definitive agreement for
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such construction, acquisition or improvement or shall have commenced such
construction, acquisition or improvement within 12 months after such sale,
assignment, transfer, lease, conveyance or other disposition.
"SEC" means the Securities and Exchange Commission.
"Securities" means the Notes issued under this Indenture.
"Subsidiary" shall mean any Person more than 50% of the
outstanding voting stock of which is owned, directly or indirectly, by the
Company or by one or more other Subsidiaries. For the purposes of this
definition, "voting stock" means stock or partnership interests or any other
equity interest which ordinarily has voting power for the election of directors
or, if the Person is not a corporation, voting power to direct the management
of such Person, whether at all times or only so long as no senior class of
stock or equity has such voting power by reason of any contingency.
"TIA" means the Trust Indenture Act of 1939 (15 U.S. Code
Section Section 77aaa-77bbbb) as amended and as in effect on the execution and
delivery of this Indenture, except as provided in Section 9.03.
"Termination Event" shall mean (i) a Reportable Event, or (ii)
the initiation of any action by the Company, any member of the Company's ERISA
Controlled Group or any ERISA Plan fiduciary to terminate an ERISA Plan or the
treatment of an amendment to an ERISA Plan as a termination under ERISA, or
(iii) the institution of proceedings by the PBGC under Section 4042 of ERISA to
terminate an ERISA Plan or to appoint a trustee to administer any ERISA Plan.
"Trustee" means the party named as such in this Indenture
until a successor replaces it and thereafter means the successor.
"Trust Officer" means any officer of the Trustee assigned by
the Trustee to administer its corporate trust matters.
"Unrestricted Subsidiary" shall mean any Subsidiary which is
not a Restricted Subsidiary.
"U.S. Government Obligations" means direct non-callable
obligations of, or non-callable obligations guaranteed by, the United States of
America for the timely payment of which the full faith and credit of the United
States of America is pledged.
"West Nyack Indebtedness" means the first $25 million of
principal amount of Indebtedness from time to time outstanding (and accrued
interest thereon), including without limitation Capitalized Leases,
sale-leaseback transactions or any other kind of Indebtedness incurred in
connection with the West Nyack Modernization.
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"West Nyack Modernization" means the proposed modernization of
the West Nyack, New York, plant and related facilities owned by the Company
and/or its Restricted Subsidiaries.
SECTION 1.02 INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT.
Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture.
The following TIA terms used in this Indenture have the
following meanings:
"indenture securities" means the Securities.
"indenture security holder" means a Securityholder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the
Trustee.
"obligor" on the indenture securities means the Company and
the Guarantors.
All other terms used in this Indenture that are not otherwise
defined herein and are defined by the TIA, are defined by TIA reference to
another statute, or are defined by SEC rule under the TIA, have the meanings so
assigned to them.
SECTION 1.03 RULES OF CONSTRUCTION.
Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) "or" is not exclusive;
(3) words in the singular include the plural and in the
plural include the singular except where the context manifestly
otherwise requires;
(4) provisions apply to successive events and
transactions;
(5) "herein", "hereof" and other words of similar import
refer to this Indenture as a whole and not to any particular Article,
Section or other subdivision;
(6) references to Sections or Articles herein, unless
otherwise expressly specified, refer to Sections or Articles hereof;
and
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(7) references herein to any action, transaction, condition
or circumstance permitted under a Section shall be deemed to refer to
actions, transactions, conditions or circumstances not prohibited by
the provisions of such Section.
ARTICLE 2.
THE SECURITIES
SECTION 2.01 FORM AND DATING.
The Securities, the notation thereon relating to the Guarantee
and the Trustee's certificate of authentication shall be substantially in the
form set forth in Exhibit A, which is incorporated in and forms a part of this
Indenture. The Securities may have such notations, legends or endorsements as
are required by law, stock exchange rule or usage. Each Security shall be
dated the date of its authentication.
SECTION 2.02 EXECUTION AND AUTHENTICATION.
Two Officers shall sign the Securities for the Company by
manual or facsimile signature. The Company's seal shall be reproduced on the
Securities. An Officer of each of the Guarantors shall sign the Guarantee for
that Guarantor by manual or facsimile signature.
If an Officer whose signature is on a Security no longer holds
that office at the time the Security is authenticated, the Security shall
nevertheless be valid.
A Security shall not be valid until authenticated by the
manual or facsimile signature of the Trustee. The signature shall be
conclusive evidence that the Security has been authenticated by the Trustee
under this Indenture.
The Trustee shall authenticate Securities for original issue
in the aggregate principal amount of up to $78,000,000 upon a written order of
the Company signed by two Officers or by an Officer and an Assistant Treasurer
or Assistant Secretary of the Company. Such order shall specify the amount of
Securities to be authenticated and the date on which the original issue of
Securities is to be authenticated. The aggregate principal amount of
Securities outstanding at any time may not exceed the amount of Securities
issued pursuant to this paragraph except as provided in Section 2.07.
The Trustee may appoint an authenticating agent reasonably
acceptable to the Company to authenticate Securities. An authenticating agent
may authenticate Securities whenever the Trustee may do so. Each reference in
this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with
the Company or any Affiliate.
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The Securities shall be issuable only in registered form
without coupons and only in denominations of $1,000 and whole multiples
thereof.
SECTION 2.03 REGISTRAR AND PAYING AGENT.
The Company shall maintain in the Borough of Manhattan, The
City of New York, an office or agency where Securities may be presented for
registration of transfer or for exchange (the "Registrar"), and an office or
agency where Securities may be presented for payment (the "Paying Agent"). The
Registrar shall keep a register of the Securities and of their transfer and
exchange. The Company may appoint or change one or more co-registrars and one
or more additional paying agents without notice, and may act in any such
capacity on its own behalf provided that if the Trustee is acting as registrar
or paying agent, the Company shall give the Trustee at least five Business Days
prior written notice of such change. The term "Paying Agent" includes any
additional paying agent.
The Company shall enter into an appropriate agency agreement
with any Agent not a party to this Indenture. The agreement shall implement
the provisions of this Indenture that relate to such Agent. The Company shall
notify the Trustee of the name and address of any Agent not a party to this
Indenture. If the Company fails to maintain a Registrar or Paying Agent, the
Trustee may act as such.
The Company initially appoints the Trustee as Registrar and
Paying Agent.
SECTION 2.04 PAYING AGENT TO HOLD MONEY IN TRUST.
Each Paying Agent shall hold in trust for the benefit of the
Securityholders or the Trustee all moneys held by the Paying Agent for the
payment of principal of or interest on the Securities (whether such money has
been paid to it by the Company or any Guarantor), and shall notify the Trustee
of any default by the Company and/or any Guarantor in making any such payment.
While any such default continues, the Trustee may require a Paying Agent to pay
all money held by it to the Trustee. The Company may at any time require a
Paying Agent to pay all money held by it to the Trustee. Upon payment over to
the Trustee, neither the Company nor the Paying Agent shall have any further
liability to any Securityholder or the Trustee for the money so paid over. If
the Company acts as Paying Agent, it shall segregate and hold as a separate
trust fund all money held by it as Paying Agent.
SECTION 2.05 SECURITYHOLDER LISTS.
The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Securityholders. If the Trustee is not the Registrar, the Company
shall furnish to the Trustee not more than 15 days after each interest record
date a list, in such form and as of such date as the Trustee may reasonably
require, of the names and addresses of Securityholders and at such other times
as
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the Trustee may request in writing, within 30 days after such request, a list
in similar form and content as of a date not more than 15 days prior to the
time such list is furnished.
SECTION 2.06 TRANSFER AND EXCHANGE.
When Securities are presented to the Registrar or a
Co-Registrar with a request to register their transfer or to exchange them for
an equal principal amount of Securities of other authorized denominations
accompanied by a written instrument or instruments of transfer, in form
satisfactory to the Company and the Registrar, duly executed by the registered
owner or by his or her attorney duly authorized in writing, the Registrar shall
register the transfer or make the exchange. To permit registrations of
transfer and exchanges, the Trustee shall authenticate Securities (accompanied
by Guarantees duly endorsed by the Guarantors) at the Registrar's request. The
Company or the Trustee, as the case may be, shall not be required (i) to issue,
authenticate, register the transfer of or exchange any Security during a period
beginning at the opening of business 15 days before the mailing of a notice of
redemption of the Securities selected for redemption under Section 3.03 and
ending at the close of business on the day of such mailing, or (ii) to register
the transfer of or exchange any Security so selected for redemption in whole or
in part, except the unredeemed portion of Securities being redeemed in part.
No service charge shall be made for any registration of
transfer or exchange of Securities, but the Company may require payment of a
sum sufficient to cover any tax or other governmental charge that may be
imposed in connection with any transfer, registration of transfer or exchange
of Securities, other than exchanges pursuant to Sections 2.10, 3.06 or 9.05 not
involving any transfer.
Anything in this Indenture to the contrary notwithstanding,
but subject to the payment of interest to the Holders of the Securities on the
applicable record date, the parties hereto and any agent thereof may deem and
treat the Holder of any Securities, prior to due presentment thereof for
registration of transfer, as the absolute owner of such Securities for all
purposes (whether or not the Securities shall be overdue and notwithstanding
any notation of ownership or other writing thereon) and neither the Company,
the Trustee nor any agent of the Company or the Trustee shall be affected by
any notice to the contrary.
SECTION 2.07 REPLACEMENT SECURITIES.
If the Holder of a Security claims that the Security has been
mutilated, lost, destroyed or wrongfully taken, the Company shall execute and
issue and, upon a written order of the Company signed by 2 Officers, the
Trustee shall authenticate (accompanied by Guarantees duly endorsed by the
Guarantors) and deliver a replacement Security if their respective reasonable
requirements as well as the requirements of applicable law are met and, in the
case of a mutilated Security, such mutilated Security is surrendered to the
Trustee. If required by the Trustee, any Guarantor or the Company, an
indemnity bond must be furnished by such Holder in an amount sufficient in the
judgment of the Trustee or the Company, as the case may be, to indemnify and
protect the Company, each Guarantor, the
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Trustee and any other Agent and hold them harmless from any loss which any of
them may suffer if a Security is replaced. The Company or the Trustee may
charge for its reasonable expenses in replacing a Security.
If any mutilated, destroyed or wrongfully taken Security has
become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security when due.
Every replacement Security is an additional obligation of the
Company.
SECTION 2.08 OUTSTANDING SECURITIES.
Securities outstanding at any time are all the Securities
authenticated by the Trustee except those canceled by it, those delivered to it
for cancellation, and those described in this Section as not outstanding.
Subject to Section 2.09, a Security does not cease to be outstanding solely
because the Company or any Guarantor or one of their Subsidiaries or Affiliates
is a Holder of the Security.
If a Security is replaced pursuant to Section 2.07, it ceases
to be outstanding unless the Trustee receives proof satisfactory to it, or a
court holds, that the replaced Security is held by a bona fide purchaser.
If the Paying Agent (if other than the Company) or the Trustee
holds on a redemption date or the Maturity Date money sufficient to pay the
principal of, and accrued interest on, the Securities payable on that date,
then on and after that date such Securities shall be deemed to be no longer
outstanding and interest on them shall cease to accrue.
SECTION 2.09 SECURITIES HELD BY THE COMPANY OR AN AFFILIATE.
In determining whether the Holders of the required principal
amount of Securities have concurred in any direction, request, waiver or
consent under this Indenture, Securities owned by the Company or any Guarantor
or any Subsidiary or Affiliate of the Company or a Guarantor shall be
disregarded, except that for the purposes of determining whether the Trustee
shall be protected in relying on any such direction, request, waiver or
consent, only Securities which the Trustee knows are so owned shall be so
disregarded.
SECTION 2.10 TEMPORARY SECURITIES.
Until definitive Securities are ready for delivery, the
Company may prepare and execute and the Trustee shall authenticate (accompanied
by Guarantees duly endorsed by the Guarantor) and deliver temporary Securities.
Temporary Securities shall be substantially in the form of definitive
Securities, but may have such variations as the Company considers appropriate
for temporary Securities. The Company shall prepare and execute and the
Trustee shall authenticate and deliver definitive Securities (accompanied by
Guarantees duly
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endorsed by the Guarantors) in exchange for temporary Securities without
unreasonable delay.
SECTION 2.11 CANCELLATION.
The Company may at any time deliver Securities to the Trustee
for cancellation. The Registrar and Paying Agent shall forward to the Trustee
any Securities surrendered to them for registration of transfer, exchange or
payment. The Trustee shall cancel all Securities surrendered for registration
of transfer, exchange, payment or cancellation and shall destroy canceled
Securities and deliver a certificate of destruction to the Company. The
Company may not issue new Securities to replace Securities that it has paid or
delivered to the Trustee for cancellation.
SECTION 2.12 DEFAULTED INTEREST.
If and to the extent the Company defaults in a payment of
interest on the Securities, it shall pay the defaulted interest in any lawful
manner. It may pay the defaulted interest to the Persons who are
Securityholders on a subsequent special record date. The Company shall fix
such record date and payment date. At least 15 days before the record date,
the Company shall mail to Securityholders, with a copy to the Trustee, a notice
that states the record date, payment date and amount of interest to be paid.
ARTICLE 3.
REDEMPTION
SECTION 3.01 NOTICES TO TRUSTEE.
If the Company wishes to redeem Securities pursuant to Section
3.07 or is required to redeem Securities pursuant to Section 3.08, it shall
notify the Trustee, by means of an Officers' Certificate at least 60 days prior
to the redemption date (unless a shorter notice period shall be satisfactory to
the Trustee), of the redemption date and the principal amount of Securities to
be redeemed.
SECTION 3.02 SELECTION OF SECURITIES TO BE REDEEMED.
If less than all the Securities are to be redeemed, the
Trustee shall select the Securities to be redeemed on a pro rata basis, by lot
or such other method as the Trustee shall deem fair and equitable. The Trustee
shall make the selection from Securities outstanding and not previously called
for redemption. The Trustee may select for redemption portions of the
principal of Securities that have denominations larger than $1,000. The
Securities and portions of them it selects shall be in amounts of $1,000 or
whole multiples of $1,000. The provisions of this Indenture that apply to
Securities called for redemption also apply to portions of Securities called
for redemption. For purposes of
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any such selection the Company will, upon request of the Trustee, close for a
period of 15 days preceding the mailing of any notice of redemption the
registry books of the Company with respect to the Securities. If the Company
shall so direct, Securities registered in the name of the Company or any
Subsidiary or Affiliate thereof shall not be included in the Securities
selected for redemption.
SECTION 3.03 NOTICE OF REDEMPTION.
At least 30 days but not more than 60 days before a redemption
date, the Company shall mail a notice of redemption by first-class mail to each
Holder whose Securities are to be redeemed.
The notice shall identify the Securities and the principal
amount thereof to be redeemed (if less than all of the Securities are to be
redeemed) and shall state:
(1) the redemption date;
(2) that the Securities will be redeemed at a price equal
to the principal amount to be redeemed plus accrued and unpaid
interest to the date of redemption (the "Redemption Price");
(3) the amount of accrued interest to be paid on the
Securities as a part of the Redemption Price;
(4) the name and address of the Paying Agent;
(5) the provisions of the Securities and this Indenture
pursuant to which the Securities are to be redeemed;
(6) that Securities called for redemption must be
surrendered to the Paying Agent to collect the Redemption Price;
(7) that interest on Securities called for redemption
ceases to accrue on and after the redemption date unless the Company
shall default in the payment of the Redemption Price; and
(8) the CUSIP number of the Securities.
At the Company's request, the Trustee shall give the notice of
redemption in the Company's name and at the Company's expense.
SECTION 3.04 EFFECT OF NOTICE OF REDEMPTION.
Once a notice of redemption is mailed in accordance with the
provisions hereof, the Securities called for redemption become due and payable
on the opening of
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business on the redemption date at the Redemption Price and, on and after such
redemption date (unless the Company shall default in the payment of the
Redemption Price on the date fixed for redemption), such Securities shall cease
to bear interest and such Securities shall be deemed not to be outstanding
hereunder and shall not be entitled to any benefits hereunder, except to
receive payment of the Redemption Price. Upon surrender to the Paying Agent,
such Securities shall be paid at the Redemption Price.
SECTION 3.05 DEPOSIT OF REDEMPTION PRICE.
On or before the Business Day immediately preceding the
redemption date, the Company shall deposit with the Paying Agent money in funds
immediately available on the redemption date sufficient to pay the Redemption
Price of all Securities to be redeemed on that date.
SECTION 3.06 SECURITIES REDEEMED IN PART.
Upon surrender of a Security that is redeemed in part, the
Trustee shall authenticate for the Holder a new Security equal in principal
amount to the unredeemed portion of the Security surrendered.
SECTION 3.07 OPTIONAL REDEMPTION.
The Securities may be redeemed at the option of the Company in
whole at any time or in part from time to time at the Redemption Price. The
Securities may also be purchased by the Company on the open market from time to
time, without penalty or premium.
SECTION 3.08 MANDATORY REDEMPTION.
Within forty-five days after the end of each fiscal quarter of
the Company in which Excess Net Proceeds for the fiscal year of the Company in
which such fiscal quarter occurs shall have been received by the Company or any
Restricted Subsidiary, the Company shall deposit all Excess Net Proceeds to the
extent received during such quarter into an account with the Trustee. All
funds in such account shall, at the Company's written direction, from time to
time, be held in cash in an interest-bearing account or invested in Cash
Equivalents designated by the Company. Simultaneously with such deposit, the
Company shall provide to the Trustee an Officers' Certificate setting forth (a)
a calculation of the Net Proceeds received by the Company or any Restricted
Subsidiary during such quarter, (b) a calculation of the amount of Excess Net
Proceeds received by the Company or any Restricted Subsidiary and deposited
with the Trustee, and (c) if appropriate, a statement of the reduction of the
amount of such deposit pursuant to the last sentence of this Section 3.08. If
at any time there is at least $5 million of Excess Net Proceeds on deposit with
the Trustee pursuant to this Section 3.08, all money in such account shall be
used by the Trustee upon receipt of the Officers' Certificate delivered
pursuant to Section 3.01 hereof to redeem Securities at the Redemption Price.
The amount of any such required deposit shall be
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reduced by the principal amount of any Securities that the Company has (during
a period commencing with the public announcement that a Sale of Assets has
occurred in respect of which a deposit of Excess Net Proceeds is expected to be
made and ending on the earlier of (i) ninety days after the date of such
announcement or (ii) the date on which the deposit is required to be made under
the first sentence of this Section 3.08) optionally redeemed or purchased
(whether through open market or other purchases) and delivered to the Trustee
for cancellation and that have not been previously applied to the reduction of
the Company's obligations under this Section or to any sinking fund payment
required pursuant to Section 3.09.
SECTION 3.09 SINKING FUND PAYMENTS.
The Company shall make three payments of $10,000,000 each into
a sinking fund account maintained with the Trustee commencing in the year 2000.
The first such payment shall be made on or before July 31, 2000, the second on
or before July 31, 2001 and the third on or before July 31, 2002. All funds in
such account shall, at the Company's written direction, from time to time, be
held in cash in an interest-bearing account, or invested in U.S. Government
Obligations designated by the Company with a maturity date not later than one
Business Day before the Maturity Date ("bonds"). The funds in the sinking fund
account shall be used to redeem Securities from time to time before the
Maturity Date as and when directed by the Company. The amount of any such
required sinking fund payment shall be reduced by the principal amount of any
Securities that the Company has optionally redeemed or purchased and delivered
to the Trustee for cancellation and that have not been previously applied to
the reduction of the Company's obligations with respect to the deposit of
Excess Net Proceeds under Section 3.08 or to any required sinking fund payment
under this Section. For purposes of this Indenture, funds held by the Trustee
shall be deemed held by the Paying Agent. In the event that, at any time, the
principal amount of any Securities previously redeemed under this Section or
delivered by the Company to the Trustee for cancellation under this Section
plus any cash (together with the proceeds of the bonds, including, without
limitation, principal, interest and premium) in the sinking fund account at any
time that the Company is not in default hereunder exceeds the lesser of (i) the
then outstanding principal amount of Securities and (ii) $30,000,000, the
excess shall be returned to the Company upon written request from the Company
to the Trustee.
ARTICLE 4.
COVENANTS
SECTION 4.01 PAYMENT OF SECURITIES.
The Company shall pay the principal of and interest on the
Securities on the dates and in the manner provided in the Securities and this
Indenture. Principal and interest
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shall be considered paid on the date due if the Paying Agent (if other than the
Company) holds on that date money sufficient to pay all principal and interest
then due. The Company shall pay interest on overdue principal at the rate
specified in the Securities.
SECTION 4.02 MAINTENANCE OF OFFICE OR AGENCY.
The Company will maintain in the Borough of Manhattan, The
City of New York, an office or agency where Securities may be surrendered for
registration of transfer or exchange and where notices and demands to or upon
the Company in respect of the Securities and this Indenture may be served. The
Company will give prompt written notice to the Trustee of the location, and any
change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to
furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the
Trustee.
The Company may also from time to time designate one or more
other offices or agencies where the Securities may be presented or surrendered
for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall
in any manner relieve the Company of its obligation to maintain an office or
agency in the Borough of Manhattan, The City of New York, for such purposes.
The Company will give prompt written notice to the Trustee of any such
designation or rescission and of any change in the location of any such other
office or agency.
The Company hereby initially designates the Corporate Trust
Office of the Trustee as an agency of the Company in accordance with Section
2.03.
SECTION 4.03 CORPORATE EXISTENCE.
Except as permitted in Article 5, the Company shall, and shall
cause its subsidiaries to, do or cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence; provided,
however, that the Company shall not be required to preserve its or cause its
Subsidiaries to preserve their corporate existence if the Company's Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Company and its Subsidiaries as a whole
and if the loss thereof is not disadvantageous in any material respect to the
Holders.
SECTION 4.04 PAYMENT OF TAXES.
The Company will pay or discharge or cause to be paid or
discharged, before the same shall become delinquent (i) all material taxes,
assessments and governmental charges levied or imposed upon the Company or any
Subsidiary and (ii) all lawful claims for labor, materials and supplies which,
if unpaid, might by law become a material Lien upon the property of the Company
or any Subsidiary; provided, however, that the Company shall not be required to
pay or discharge or cause to be paid or discharged any such tax,
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assessment, charge or claim whose amount, applicability or validity is being
contested in good faith by appropriate proceedings and for which it has set
aside on its books such reserves as it deems adequate and are in accordance
with GAAP.
SECTION 4.05 MAINTENANCE OF PROPERTIES.
The Company will cause the material properties owned by the
Company or any Subsidiary for use in the conduct of its business or the
business of any such Subsidiary to be maintained and kept in good condition,
repair and working order (subject to ordinary wear and tear) and will cause to
be made all necessary repairs thereof, all as in the judgment of the Company
may be necessary so that the business carried on in connection therewith may be
properly and advantageously conducted; provided, however, that nothing in this
Section shall prevent the Company from discontinuing the maintenance or repair
of any such properties if such discontinuance is, in the judgment of the
Company, desirable in the conduct of its business or the business of any
Subsidiary and if such discontinuance is not disadvantageous in any material
respect to the Holders.
SECTION 4.06 SEC REPORTS.
Within 15 days after the Company files with the SEC copies of
its annual and quarterly reports and other information, documents and reports
(or copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which it is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act, the Company shall deliver the same to
the Trustee. The Company will mail copies of its annual reports and quarterly
reports as filed with the SEC, other than exhibits to any such report unless
such exhibits are themselves incorporated by reference in such report, to any
Securityholder upon request. If the Company shall cease to be subject to the
requirements of Section 13 or 15(d) of the Exchange Act, the Company shall
deliver to the Trustee and to each Securityholder, within 15 days after the
date by which it would have been required to make such a filing with the SEC,
audited annual financial statements prepared in accordance with GAAP and
unaudited condensed quarterly financial statements, including any notes
thereto, each comparable to that which the Company would have been required to
include in such annual reports, information, documents or other reports if the
Company were then subject to the requirements of Section 13 or 15(d) of the
Exchange Act. The Company also shall comply with the other provisions of TIA
Section 314(a).
If, in accordance with GAAP, any Guarantor shall at any time
cease to be consolidated with the Company for financial reporting purposes,
such Guarantor will, within 15 days after it files with the SEC copies of its
annual and quarterly reports and other information, documents and reports (or
copies of such portions of any of the foregoing as the SEC may by rules and
regulations prescribe) which it is required to file with the SEC pursuant to
Section 13 or 15(d) of the Exchange Act, deliver the same to the Trustee. Such
Guarantor will mail copies of its annual reports and quarterly reports as filed
with the SEC, other than exhibits to any such report unless such exhibits are
themselves incorporated by reference in such report, to any Securityholder upon
request. If such Guarantor shall cease
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to be subject to the requirements of Section 13 or 15(d) of the Exchange Act,
such Guarantor (to the extent it is required by the TIA, taking into
consideration any waivers or no action positions received by the Company or the
Guarantors from the SEC, written notice of which shall be provided to the
Trustee) shall (i) deliver to the Trustee and to each Securityholder, within 15
days after the date by which it would have been required to make such a filing
with the SEC, audited annual financial statements prepared in accordance with
GAAP and unaudited condensed quarterly financial statements, including any
notes thereto, each comparable to that which such Guarantor would have been
required to include in such annual reports, information, documents or other
reports if the Company were then subject to the requirements of Section 13 or
15(d) of the Exchange Act and (ii) comply with the other provisions of TIA
Section 314(a).
SECTION 4.07 COMPLIANCE CERTIFICATE.
The Company and each Guarantor shall deliver to the Trustee
within 120 days after the end of each fiscal year of the Company and such
Guarantor (which on the date of this Indenture both end on December 31), and
within 60 days after the end of each of the first three fiscal quarters of the
Company and such Guarantor, an Officers' Certificate signed by the Company's
principal financial officer, principal accounting officer or principal
executive officer stating that, after a review of the activities of the Company
or such Guarantor, as the case may be, during such period and of the Company's
or such Guarantor's, as the case may be, performance under this Indenture,
whether or not, to the best knowledge of the signer thereof based on such
review, there has been any Default or Event of Default by the Company or such
Guarantor in performing any of its obligations under this Indenture or the
Securities. If the signer does know of any such Default or Event of Default,
the certificate shall describe the Default or Event of Default and its status.
SECTION 4.08 RESTRICTED INVESTMENTS AND RESTRICTED STOCK PAYMENTS.
The Company will not itself, and will not permit any
Restricted Subsidiary to, declare any Dividends or make any Restricted Stock
Payment or Investment (other than Permitted Investments), unless, in the case
of Dividends, such Dividends are declared to be payable not more than 60 days
after the date of declaration and unless, in each case, after giving effect to
the proposed Dividend, Restricted Stock Payment or Investment and to any other
Dividends declared but not yet paid, at the date (hereinafter called the
"Computation Date") of such declaration (in case of a Dividend) or of such
Restricted Stock Payment or Investment (i) the Company could incur $1.00 of
additional Indebtedness under Section 4.10 hereof without taking into
consideration the proviso thereto, and (ii) there is no outstanding Default or
Event of Default and (iii) the sum of:
(A) Adjusted Consolidated Net Income, plus:
(B) the aggregate amount of net cash proceeds to the
Company from sales subsequent to Opening Balance Sheet Date of shares of its
Capital Stock (other than Preferred Stock of a Restricted Subsidiary permitted
under Section 4.10 hereof);
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shall be greater than the sum of
(C) the aggregate amount of all such Dividends declared
and Restricted Stock Payments made during the period commencing on the Opening
Balance Sheet Date and continuing to and including the Computation Date, plus
(D) the excess, if any, of (1) the amount of the
aggregate unliquidated Investment (computed as hereinbelow provided) other than
Permitted Investments on the Computation Date of the Company and all Restricted
Subsidiaries in all Persons other than Restricted Subsidiaries, over (2) the
aggregate of (x) the amount of the aggregate unliquidated Investment (so
computed) other than Permitted Investments on the Opening Balance Sheet Date of
the Company and all Restricted Subsidiaries in Persons other than Restricted
Subsidiaries and (y) the amount included in Consolidated Net Income, if any, by
which the aggregate of the net profits realized upon any sales for cash after
the Opening Balance Sheet Date by the Company and its Restricted Subsidiaries
of its or their Investments (other than Permitted Investments) in Persons other
than Restricted Subsidiaries exceeds the aggregate of the net losses, if any,
realized upon any such sales (such profits and losses to be determined in
accordance with GAAP and, in the case of profits, after deducting all
applicable taxes); provided that the profit or loss on any such sale to the
Company or to any Restricted Subsidiary shall not be included in such
computation;
provided, however, that without regard to the foregoing restrictions of this
Section, (a) the Company may retire any shares of any class of its Capital
Stock by exchange for, or out of the proceeds of the substantially concurrent
sale of, other shares of its Capital Stock, and neither any such retirement nor
any such proceeds so used shall be included in any computation provided for in
this Section 4.08 and (b) any Restricted Subsidiary may make any required
payments (including without limitation, dividend, sinking fund, and mandatory
redemption payments) on or in respect of any Preferred Stock of such Restricted
Subsidiary permitted under Section 4.10 hereof. For purposes of this Section
4.08, the issuance of Capital Stock upon the conversion of any Indebtedness of
the Company shall be deemed to constitute a sale for cash of such capital stock
and the net proceeds of such sale shall be deemed to be an amount equal to the
principal amount of such Indebtedness, less applicable expenses and cash
payments for fractional shares.
For the purposes of any computation under this Section 4.08,
the amount of any Dividend declared or Restricted Stock Payment made in
property other than cash, and the amount of any Investment in a Person other
than a Restricted Subsidiary made through the transfer to it of any such
property, shall be deemed to be the Fair Value of such property at the time of
declaration (in the case of Dividends) or at the time of payment or
distribution or the making of such Investment.
Also for the purpose of any computation under this Section
4.08, the aggregate unliquidated Investment of the Company and Restricted
Subsidiaries in any Person other than a Restricted Subsidiary shall be computed
in accordance with GAAP and shall include all
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Investments by means of stock purchase, loan, advance, guarantee, capital
contribution or otherwise, provided, however, that
(A) amounts invested by the Company through the exchange
of its Capital Stock for Capital Stock of any such Person or for assets
contemporaneously transferred to such Person shall be disregarded;
(B) undistributed earnings of such Person shall not be
included;
(C) there shall not be deducted from the amounts invested
in any such Person any amounts received by the Company or any Restricted
Subsidiary (as dividends, interest or otherwise) as earnings on its Investment
in such Person;
(D) write-ups, write-downs or write-offs after Opening
Balance Sheet Date, of Investments in such Person shall be disregarded; and
(E) accounts receivable from such Person arising in the
ordinary course of business from the sale of goods or services shall not be
included.
SECTION 4.09 TRANSACTIONS WITH AFFILIATES.
The Company will not, and will not permit any of its
Restricted Subsidiaries, to, engage in any material transaction (an "Affiliated
Party Transaction") with any of its Affiliates (other than the Company or
Restricted Subsidiaries) unless (i) such transaction is pursuant to an
agreement or operating relationship between the Company and such Affiliate in
effect or operative on the Effective Date or (ii) the Board of Directors in
good faith determines that such transaction is in the best interest of the
Company or such Restricted Subsidiary and such transaction is on terms no less
favorable to the Company than would be obtained in an arms' length transaction.
With respect to any Affiliated Party Transaction, or series of related
Affiliated Party Transactions involving aggregate payments or value in excess
of $1 million, but less than $5 million, the Company shall deliver to the
Trustee an Officers' Certificate stating that such transaction or series of
transactions complies with clause (ii) of the immediately preceding sentence.
With respect to any Affiliated Party Transaction, or series of related
Affiliated Party Transactions involving aggregate payments or value of $5
million or more, the Company shall deliver to the Trustee a written opinion
from an Independent Financial Advisor stating that the terms of such
transaction or series of transactions are fair to the Company or its Restricted
Subsidiary, as the case may be. Nothing in this Section 4.09 shall be deemed
to prohibit, or require the delivery of any such Officers' Certificate or
opinion in relation to, any (i) transaction contemplated by the Plan of
Reorganization, including without limitation any action or transaction, or the
performance of any obligation, under the Incentive Compensation Plan,
Management Services Agreement or the Employee Settlement Agreements; (ii)
reasonable and customary fees and compensation paid to and indemnity provided
on behalf of and advances or loans to officers, directors, employees or
consultants of the Company or any Subsidiary; (iii) Restricted Stock Payments
made in accordance with Section 4.08; (iv) the execution, delivery and
performance of one
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or more registration rights agreements in respect of securities issued by the
Company and Rosebud pursuant to the Plan of Reorganization; and (v) the sale of
Common Stock of the Company.
SECTION 4.10 CERTAIN LIMITATIONS ON INDEBTEDNESS, ETC.
(a) The Company will not, and will not permit any
Restricted Subsidiary, directly or indirectly, to create, incur or assume or
guarantee or otherwise become liable or responsible for, any Indebtedness, or
enter into any sale-leaseback transaction unless immediately thereafter and
after giving effect thereto, the Interest Expense Ratio shall be at least equal
to 2.0:1.0; provided, however, that nothing contained in this paragraph 4.10(a)
shall prevent the Company or any Restricted Subsidiary from creating, incurring
or assuming or guaranteeing or otherwise becoming liable or responsible for (i)
the Indebtedness evidenced by the Securities and this Indenture, (ii) any
Refinancing Indebtedness, (iii) any Permitted Working Capital Loans; (iv) any
West Nyack Indebtedness; and (v) other Indebtedness having an aggregate
outstanding principal amount of no more than $1.5 million.
For purposes of this paragraph 4.10(a) and Section 4.08: (a)
at the time that a corporation becomes a Restricted Subsidiary it shall be
deemed to have created at such time all the Indebtedness it has outstanding
immediately after such time, and (b) in case any Restricted Subsidiary shall
sell, transfer or otherwise dispose of any Indebtedness owing by the Company or
another Restricted Subsidiary, or in case the Capital Stock of any Restricted
Subsidiary which holds Indebtedness owing by the Company or any other
Restricted Subsidiary shall be sold, transferred or otherwise disposed of, such
sale, transfer or disposition shall be deemed to constitute the creation of
such Indebtedness.
(b) The Company will not, and will not permit any of its
Restricted Subsidiaries to, create, incur, assume or suffer to exist any Lien
on any asset owned by the Company or any of its Restricted Subsidiaries except
Permitted Liens.
SECTION 4.11 CONFLICTING AGREEMENTS.
The Company will not, and will not permit any of its
Restricted Subsidiaries to, enter into any agreement or execute any instrument
that by its terms expressly prohibits or otherwise would have the effect of
prohibiting the Company from making mandatory redemptions or otherwise making
any required payments on or with respect to the Securities pursuant to their
terms and the terms of this Indenture.
SECTION 4.12 RESTRICTED SUBSIDIARIES.
The Company will not suffer or permit a Restricted Subsidiary
to consolidate or merge with or into any other Person, except that:
(1) a Restricted Subsidiary may so consolidate or
merge into the Company;
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(2) a Restricted Subsidiary may so consolidate or
merge with or into any other Person if, after giving effect to
the transaction, the entity surviving such consolidation or
merger will be a Restricted Subsidiary; and
(3) a Restricted Subsidiary may, subject to any
other applicable provision of the Indenture, consolidate or
merge into any other Person in connection with a Sale of
Assets permitted under this Indenture.
Promptly after the designation of a Subsidiary as a Restricted
Subsidiary the Company will notify the Trustee in writing of such designation.
SECTION 4.13 SALES OF ASSETS.
The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, consummate a Sale of Assets unless (i) the Company
or such Restricted Subsidiary, as the case may be, receives consideration at
the time of such Sale of Assets at least equal to the Fair Value of the shares
or assets sold or otherwise disposed of and (ii) at least 80% of such
consideration consists of (A) cash (which shall be deemed to include amounts
subject to post-closing adjustments or contingencies and held in escrow or
payable pursuant to a promissory note maturing within 60 days of consummation
of such sale or disposition), (B) Cash Equivalents, (C) readily marketable
securities which the Company in good faith expects to liquidate promptly
following such Sale of Assets, (D) the assumption of liabilities by the
purchaser pursuant to such Sale of Assets (including, in the case of the sale
of the Capital Stock of a Restricted Subsidiary, liabilities of such Restricted
Subsidiary) or (E) assets which the Board of Directors has in good faith
determined to be a like kind swap or similar swap or trade arrangment involving
property intended to produce business and/or tax benefits for the Company and
its Restricted Subsidiaries and (iii) if such Sale of Assets or series of
related Sales of Assets involves aggregate payments or value in excess of $5
million, it shall be approved by a majority of the Directors of the Company who
are not also employees of the Company.
SECTION 4.14 CHANGE OF CONTROL.
Upon the occurrence of a Change of Control, the Company shall
be obligated to make an offer to purchase (a "Change of Control Offer") and
shall, subject to the provisions described below, purchase, on a Business Day
(the "Change of Control Purchase Date") not more than 90 nor less than 30 days
following the occurrence of the Change of Control, all of the then outstanding
Securities at a purchase price (the "Change of Control Purchase Price") equal
to 100% of the principal amount thereof plus accrued and unpaid interest, if
any, to the Change of Control Purchase Date. The Company shall, subject to the
provisions described below, be required to purchase all Securities properly
tendered into the Change of Control Offer and not withdrawn.
Notice of a Change of Control Offer shall be mailed by the
Company not later than the 60th day after the Change of Control to the Holders
of Securities at their last registered addresses with a copy to each Guarantor,
the Trustee and the Paying Agent. The Change of Control Offer shall remain
open from the time of mailing for at least 20 Business
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Days and until 5:00 p.m., New York City time, on the Business Day preceding the
Change of Control Purchase Date. The notice, which shall govern the terms of
the Change of Control Offer, shall include such disclosures as are required by
law and shall state:
(a) that the Change of Control Offer is being made
pursuant to this Section 4.14 and that all Securities validly tendered
into the Change of Control Offer and not withdrawn shall be accepted
for payment;
(b) the Change of Control Purchase Price (including the
amount of accrued interest, if any) for each Security, the Change of
Control Purchase Date and the date on which the Change of Control
Offer expires;
(c) that any Security not tendered for payment will
continue to accrue interest in accordance with the terms thereof;
(d) that, unless the Company shall default in the payment
of the Change of Control Purchase Price, any Security accepted for
payment pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Purchase Date;
(e) that Holders electing to have Securities purchased
pursuant to a Change of Control Offer will be required to surrender
their Securities to the Paying Agent at the address specified in the
notice prior to 5:00 p.m., New York City time, on the Business Day
preceding the Change of Control Purchase Date and must complete any
form letter of transmittal proposed by the Company and reasonably
acceptable to the Trustee and the Paying Agent;
(f) that Holders of Securities will be entitled to
withdraw their election if the Paying Agent receives, not later than
5:00 p.m., New York City time, on the Business Day preceding the
Change of Control Purchase Date, a facsimile transmission or letter
setting forth the name of the Holder, the principal amount of
Securities the Holder delivered for purchase, the Security certificate
number (if any) and a statement that such Holder is withdrawing its
election to have such Securities purchased;
(g) that Holders whose Securities are purchased only in
part will be issued Securities equal in principal amount to the
unpurchased portion of the Securities surrendered;
(h) the instructions that Holders must follow in order to
tender their Securities; and
(i) information concerning the business of the Company,
the most recent annual and quarterly reports of the Company filed with
SEC pursuant to the Exchange Act (or, if the Company is not then
required to file any such reports with the SEC,
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the comparable reports prepared pursuant to Section 4.06), a
description of material developments in the Company's business, pro
forma historical financial information after giving effect to such
Change of Control and such other information concerning the
circumstances and relevant facts regarding such Change of Control and
Change of Control Offer as the Company shall determine in its
reasonable discretion would be material to a Holder of Securities in
connection with the decision of such Holder as to whether or not it
should tender Securities pursuant to the Change of Control Offer,
including information regarding the Persons acquiring control and such
Persons' business plans going forward.
On the Change of Control Purchase Date, the Company shall (i)
accept for payment Securities or portions thereof (but only in principal
amounts which are integral multiples of $1,000) validly tendered pursuant to
the Change of Control Offer, (ii) by 10:00 a.m. New York time, deposit with the
Paying Agent money, in immediately available funds, sufficient to pay the
Change of Control Purchase Price of all Securities or portions thereof so
tendered and accepted, and (iii) deliver to the Trustee the Securities so
accepted together with an Officers' Certificate setting forth the Securities or
portions thereof tendered to and accepted for payment by the Company. The
Paying Agent shall promptly mail or deliver to the Holders of Securities so
accepted payment in an amount equal to the Change of Control Purchase Price,
and the Trustee shall promptly authenticate and mail or deliver to such Holders
a new Security equal in principal amount to any unpurchased portion of the
Security surrendered. Any Securities not so accepted shall be promptly mailed
or delivered by the Company to the Holder thereof. The Company shall publicly
announce the results of the Change of Control Offer not later than the first
Business Day following the Change of Control Purchase Date.
The Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements applicable to a Change of Control Offer made by the Company and
purchases all Securities validly tendered and not withdrawn under such Change
of Control Offer.
The Company shall comply, to the extent applicable, with the
requirements of Section 14c-1 of the Exchange Act, and any other securities
laws or regulations in connection with the repurchase of Securities pursuant to
a Change of Control Offer.
SECTION 4.15 WAIVER OF STAY, EXTENSION OR USURY LAWS.
The Company covenants (to the extent that it may lawfully do
so) that it will not at any time insist upon, or plead, or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law
or any usury law or other law which would prohibit or release the Company from
paying all or any portion of the principal of or interest on the Securities as
contemplated herein, wherever enacted, now or at any time hereafter in force,
or which may affect the covenants or the performance of this Indenture, and (to
the extent that it may lawfully do so) the Company hereby expressly waives all
benefit or
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advantage of any such law, and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but it will
suffer and permit the execution of every such power as though no such law had
been enacted.
SECTION 4.16 MAINTENANCE OF INSURANCE AND RECORDS, COMPLIANCE WITH LAW.
(a) Except to the extent that, in the exercise of its
good faith business judgment, the Company believes the cost to be incurred in
procuring and/or maintaining insurance to be excessive in view of the benefit
to be derived therefrom, the Company shall, and shall cause its Subsidiaries
to, maintain with financially sound and reputable insurers such (i) liability
and property and casualty insurance as may be required by law and (ii) such
other insurance, to such extent and against such hazards and liabilities,
substantially equivalent to the insurance that comparable companies maintain.
(b) The Company shall keep, or cause to be kept, true
books and records and accounts in which entries will be made of all of the
business transactions of the Company and its Subsidiaries which shall be full
and correct in all material respects and reflect in their respective financial
statements adequate accruals and appropriate reserves, all to the extent
required by sound business practice and GAAP.
(c) The Company shall, and shall cause its Subsidiaries
to, comply with all statutes, laws, ordinances, or governmental rules and
regulations to which it is subject, noncompliance with which would materially
adversely affect the prospects, earnings, properties, assets or condition,
financial or otherwise, of the Company and its Subsidiaries taken as a whole.
SECTION 4.17 VALUE OF CLAIMS REPRESENTED BY SECURITIES.
The Company covenants and agrees that in any case commenced
under Chapter 11 of Title 11 of the United States Code subsequent to the
Effective Date involving the Company, the claims represented by the Securities
shall equal the full principal amount of the Securities, plus accrued and
unpaid interest at the stated rates set forth in the Securities.
SECTION 4.18 INVESTMENT COMPANY ACT OF 1940.
The Company will not, and will not permit any of its
Subsidiaries to, take any action resulting in its becoming an "investment
company" (as such term is defined in the Investment Company Act of 1940, as
amended).
SECTION 4.19 NOTICE OF DEFAULT.
In the event that any Default under this Indenture shall
occur, the Company will give written notice of such Default to the Trustee
within 5 Business Days after its
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occurrence, specifying the nature and status of such Default and the steps
which the Company or its Subsidiaries have taken or propose to take in order to
cure such Default.
ARTICLE 5.
SUCCESSORS
SECTION 5.01 WHEN COMPANY MAY MERGE, ETC.
The Company shall not consolidate or merge with or into, or
sell, assign, transfer or lease all or substantially all of the assets of the
Company and its Restricted Subsidiaries, taken as a whole, to, any Person
unless after giving effect to the proposed consolidation, merger, sale,
assignment, transfer or lease:
(i) there exists no Default or Event of Default; and
(ii) the Person formed by or surviving any such consolidation
or merger (if other than the Company), or to which such sale or
conveyance shall have been made, is an entity organized and existing
under the laws of the United States, any state thereof or the District
of Columbia; and
(iii) the Person formed by or surviving any such
consolidation or merger (if other than the Company), or to which such
sale or conveyance shall have been made, assumes by supplemental
indenture all the obligations of the Company under the Securities and
this Indenture (including, without limitation, those under Section
3.09 hereof); and
(iv) the Person formed by or surviving any such consolidation
or merger, or to which such sale or conveyance shall have been made,
immediately thereafter has Consolidated Net Worth no smaller than the
Company immediately prior thereto and could incur $1.00 of additional
Indebtedness under Section 4.10 above without taking into
consideration the proviso thereto.
The Company shall deliver to the Trustee prior to the
consummation of the proposed transaction an Officer's Certificate to the
foregoing effect and an Opinion of Counsel stating that the proposed
transaction and supplemental indenture comply with this Indenture.
SECTION 5.02 SUCCESSOR SUBSTITUTED.
Upon any consolidation or merger or transfer or lease of all
or substantially all of the assets of the Company and its Restricted
Subsidiaries, taken as a whole, in accordance with Section 5.01, the successor
Person formed by such consolidation or into which the Company is merged or to
which such sale, assignment, transfer or lease is made shall
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succeed to, and be substituted for, and may exercise every right and power of,
and shall assume every duty and obligation of, the Company under, this
Indenture with the same effect as if such successor corporation had been named
as the Company herein. As of the assumption by the successor corporation of
all obligations of the Company hereunder, all obligations of the predecessor
corporation shall terminate.
ARTICLE 6.
DEFAULTS AND REMEDIES
SECTION 6.01 EVENTS OF DEFAULT.
An "Event of Default" occurs if:
(1) the Company and the Guarantors default in the payment
of interest on any Security when the same becomes due and payable,
whether at maturity, in connection with any redemption, by
acceleration or otherwise, and such default continues for a period of
30 days after such due date;
(2) the Company and the Guarantors default in the payment
of the principal of any Security when the same becomes due and
payable, whether at maturity, in connection with any sinking fund
payment obligation or redemption, by acceleration or otherwise or
default under any purchase obligations pursuant to Section 4.14
hereof; provided, however, in the case of any such default resulting
from a dispute as to the computation of Excess Net Proceeds, that such
default shall have remained uncured for a period of 30 days from the
date of notice to the Company from the Trustee as to the existence of,
and specifying the basis for, such default;
(3) the Company or any of its Restricted Subsidiaries
fails to observe or perform any of its other covenants or agreements
in the Securities or this Indenture, which failure continues for a
period of 30 days after the earlier of (i) the date on which written
notice of such failure, requiring the Company to remedy the same,
shall have been given to the Company by the Trustee, or to the Company
and the Trustee by the Holders of at least 25% in aggregate principal
amount of the Securities at the time outstanding or (ii) the date on
which the Company had Actual Knowledge of such failure;
(4) (a) the Company or any of its Restricted
Subsidiaries, fails to pay when due (whether at maturity, in
connection with any mandatory amortization or redemption, by
acceleration or otherwise) any principal of or interest on any
Indebtedness now or hereafter outstanding with an aggregate
outstanding principal amount in excess of $1 million, which default
continues for any period of grace applicable thereto or (b) a default
or event of default, as defined in one or more (i) indentures,
agreements or other instruments evidencing or under which the Company
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or any of its Restricted Subsidiaries individually or collectively
have, as of the date of this Indenture or hereafter, outstanding at
least $1 million aggregate principal amount of Indebtedness or (ii)
Employee Settlement Agreements (which, in the case of the Employee
Settlement Agreement with the Pension Benefits Guaranty Corporation,
shall be limited to a default under Section 9.1(a) thereof), shall
occur and be continuing and as a result thereof such Indebtedness or
the Company's or any Restricted Subsidiary's obligations under such
Employee Settlement Agreement, as the case may be, shall have been
accelerated so that such obligations thereunder shall be due and
payable prior to the date on which otherwise due and payable; provided
that if such default or event of default under such indenture or other
instrument or agreement shall be remedied or cured by the Company or
the Restricted Subsidiary or waived by the holders of such
Indebtedness or by the other parties to the relevant agreement
entitled to the benefit of the defaulted obligation thereunder, as the
case may be, prior to any acceleration thereof then the Event of
Default under this Indenture by reason thereof shall be deemed
likewise to have been thereupon remedied, cured or waived without
further action upon the part of either the Trustee or any of the
Holders of Securities;
(5) one or more final judgments against the Company or
any of its Restricted Subsidiaries for payments of money which in the
aggregate exceed $1 million, are entered by a court of competent
jurisdiction and such judgments are not rescinded, annulled, stayed or
discharged within 60 days;
(6) the Company and its Restricted Subsidiaries, taken as
a whole, become insolvent;
(7) the Company or any of its Material Restricted
Subsidiaries pursuant to or within the meaning of any Bankruptcy Law:
(a) commences a voluntary case,
(b) consents to the entry of a judgment, decree
or order for relief against it in an involuntary case or
proceeding,
(c) consents to the appointment of a Custodian
for all or substantially all of its property,
(d) makes a general assignment for the benefit of
its creditors, or
(e) applies for, consents to or acquiesces in the
appointment of, or taking possession by a Custodian;
(8) a court of competent jurisdiction enters a judgment,
decree or order for relief in respect of the Company or any of its
Material Restricted Subsidiaries in an involuntary case or proceeding
under any Bankruptcy Law which shall
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(a) approve as properly filed a petition seeking
reorganization, arrangement, adjustment or composition;
(b) appoint a Custodian for any part of its
property; or
(c) order the winding up or liquidation of its
affairs;
and such judgment, decree or order remains unstayed and in effect for
a period of sixty (60) consecutive days;
(9) any bankruptcy or insolvency petition or application
is filed, or any bankruptcy case or insolvency proceeding is commenced
against, the Company or any of its Material Restricted Subsidiaries
and such petition, application, case or proceeding is not dismissed or
stayed within sixty (60) days;
(10) any Termination Event with respect to a Plan shall
occur which could result in the imposition of a lien on the assets of
the Company or any Restricted Subsidiary under Title IV of ERISA in
excess of $10,000,000;
(11) a material Lien, other than a Permitted Lien, shall
be imposed on any assets of the Company or a member of its ERISA
Controlled Group in favor of the PBGC or a Plan; or
(12) the Company or a member of its ERISA Controlled Group
shall suffer a partial or complete withdrawal from a Multiemployer
Plan which withdrawal presents a material risk of the imposition of
withdrawal liability in excess of $10,000,000 or shall be a "default"
(as defined in Section 4219(c)(5) of ERISA) with respect to payments
of more than $1,000,000 to a Multiemployer Plan resulting from the
Company's or a member of its ERISA Controlled Group's complete or
partial withdrawal (as described in Section 4203 or 4205 of ERISA).
The term "Bankruptcy Law" means Title 11, U.S. Code or any
similar Federal or State law for the relief of debtors. The term "Custodian"
means any receiver, trustee, assignee, liquidator or similar official under any
Bankruptcy Law or similar laws for the enforcement of creditors' rights. The
term "Actual Knowledge" means the actual knowledge of any Officer of the
Company; provided, however, that each Officer of the Company shall be deemed to
have actual knowledge of any fact that would have come to such Officer's
attention if he or she had exercised reasonable care in performing his or her
duties, given the nature of his or her duties and the Company's business and
organization. The term "Material Restricted Subsidiary" shall mean a
Restricted Subsidiary with Consolidated Net Worth exceeding $5 million as of
the end of the most recently completed fiscal year or, if such Restricted
Subsidiary became a Restricted Subsidiary after the end of the most recently
completed fiscal year, as of the end of the fiscal period most recently
preceding the date on which such Restricted Subsidiary became a Restricted
Subsidiary.
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SECTION 6.02 ACCELERATION.
If an Event of Default (other than an Event of Default
specified in Section 6.01(7), (8) or (9)) occurs and is continuing, the Trustee
by notice to the Company and each of the Guarantors, or the Holders of at least
25% in principal amount of the Securities by notice to the Company, each of the
Guarantors and the Trustee, may declare the principal of and accrued interest
on all the Securities to be due and payable. Upon such declaration such
principal and interest shall be due and payable immediately. If an Event of
Default specified in Section 6.01(7), (8) or (9) occurs, all unpaid principal
and accrued interest on the Securities then outstanding shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Securityholder. The Holders of at least 66 2/3% of
the principal amount of the Securities may rescind an acceleration and its
consequences by notice to the Trustee if the rescission would not conflict with
any judgment or decree and if the outstanding Events of Default have been cured
or waived except, unless theretofore cured, nonpayment of principal or interest
that has become due solely because of the acceleration. No such rescission
shall affect any subsequent Default or impair any right or remedy with respect
thereto.
SECTION 6.03 OTHER REMEDIES.
Notwithstanding any other provision of this Indenture, if an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of
or interest on the Securities or to enforce the performance of any provision of
the Securities, this Indenture or the Guarantee.
The Trustee may maintain a proceeding even if it does not
possess any of the Securities or does not produce any of them in the
proceeding. A delay or omission by the Trustee or any Securityholder in
exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. No remedy is exclusive of any other remedy. All remedies
are cumulative.
In case the Trustee shall have proceeded to enforce any rights
under this Indenture or the Guarantee and such proceedings shall have been
discontinued or abandoned for any reason or shall have been determined
adversely to the Trustee, then and in every such case the Company, the Trustee
and the Holders shall, subject to any determination in such proceeding, be
restored respectively to their former positions and rights hereunder, and all
rights, remedies and powers of the Company, the Guarantors and the Trustee
shall continue as though no such proceeding had been taken.
SECTION 6.04 WAIVER OF PAST DEFAULTS.
Subject to Sections 6.02, 6.07 and 9.02, the Holders of at
least 66 2/3% of the principal amount of the Securities by notice to the
Trustee may waive an existing Default or
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Event of Default and its consequences. When a Default or Event of Default is
waived, it is cured and ceases.
SECTION 6.05 CONTROL BY MAJORITY.
The Holders of a majority in principal amount of the
Securities may direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or exercising any trust or power
conferred on it. The Trustee, however, may refuse to follow any direction that
conflicts with law or this Indenture, is unduly prejudicial to the rights of
any Securityholder or would subject the Trustee to personal liability;
provided, the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction. A record date may be set for
purposes of determining who may exercise such control.
SECTION 6.06 LIMITATION ON SUITS.
Except as provided in Section 6.07, a Securityholder may
pursue a remedy with respect to this Indenture or the Securities only if:
(1) the Holder gives to the Trustee written notice of a
continuing Event of Default;
(2) the Holders of at least 25% in principal amount of
the Securities make a written request to the Trustee to pursue the
remedy;
(3) such Holder or Holders offer to the Trustee indemnity
reasonably satisfactory to the Trustee against any loss, liability or
expense;
(4) the Trustee does not comply with the request within
60 days after receipt of the request and the offer of indemnity; and
(5) during such 60-day period the Holders of a majority
in principal amount of the Securities do not give the Trustee a
direction inconsistent with the request.
A Securityholder may not use this Indenture to prejudice the
rights of any other Securityholder or to obtain a preference or priority over
any other Securityholder.
SECTION 6.07 RIGHTS OF HOLDERS TO RECEIVE PAYMENT.
Subject only to Section 6.02 hereof, the right of any Holder
of a Security to receive payment of principal of and interest on the Security,
on or after the respective due dates (prior to any acceleration) expressed in
the Security, or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the
consent of the Holder.
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SECTION 6.08 COLLECTION SUIT BY TRUSTEE.
If an Event of Default specified in Section 6.01(1) or (2)
occurs and is continuing, the Trustee may recover judgment in its own name and
as trustee of an express trust against the Company and the Guarantors for the
whole amount of principal and interest in default.
SECTION 6.09 TRUSTEE MAY FILE PROOFS OF CLAIMS.
The Trustee may file such proofs of claim and other papers or
documents as may be necessary or advisable in order to have the claims of the
Trustee, any predecessor Trustee and the Securityholders allowed in any
judicial proceedings relative to the Company, the Guarantors, their creditors
or their property.
Nothing herein contained shall be deemed to authorize the
Trustee to authorize or consent to or accept or adopt on behalf of any Holder
of the Securities any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof, or to
authorize the Trustee to vote in respect of the claim of any Holder of the
Securities in any such proceeding.
SECTION 6.10 PRIORITIES.
If the Trustee collects any money pursuant to this Article, it
shall pay out the money in the following order:
First: to the Trustee for amounts due under Section 7.07;
Second: to Securityholders for amounts due and unpaid on the
Securities for principal and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the
Securities for principal and interest, respectively; and
Third: to the Company.
The Trustee may fix a record date and payment date for any
payment by it to Securityholders pursuant to this Section.
SECTION 6.11 UNDERTAKING FOR COSTS.
In any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken or
omitted by it as Trustee, a court in its discretion may require any party
litigating the suit other than the Trustee to file an undertaking to pay the
costs of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in the suit,
having due regard to the merits and good faith of the claims or defenses made
by the party litigant. This
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Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.07, or a suit by Holders of more than 10% in principal amount of the
Securities.
ARTICLE 7.
TRUSTEE
SECTION 7.01 ACCEPTANCE OF TRUSTS; DUTIES OF TRUSTEE.
The Trustee hereby accepts the trusts imposed upon it by this
Indenture and covenants and agrees to perform the same as herein expressed.
(a) If an Event of Default has occurred and is
continuing, the Trustee shall exercise such of the rights and powers vested in
it by this Indenture, and use the same degree of care and skill in their
exercise, as a prudent Person would exercise or use under the circumstances in
the conduct of his or her own affairs.
(b) Except during the continuance of an Event of Default:
(1) The Trustee need perform only those duties
that are specifically set forth in this Indenture and no others.
(2) In the absence of bad faith on its part, the
Trustee may conclusively rely, as to the truth of the statements and
the correctness of the opinions expressed therein, upon certificates
or opinions furnished to the Trustee and conforming to the
requirements of this Indenture. Where a particular provision of this
Indenture requires delivery of certain certificates and opinions to
the Trustee, the Trustee shall examine the certificates and opinions
to determine whether or not they conform to the requirements of this
Indenture.
(c) The Trustee may not be relieved from liability for
its own negligent action, its own negligent failure to act or its own willful
misconduct, except that:
(1) This paragraph does not limit the effect of
paragraph (b) of this Section 7.01.
(2) The Trustee shall not be liable with respect
to any error of judgment made in good faith by a Trust Officer, unless
it is proved that the Trustee was negligent in ascertaining the
pertinent facts.
(3) The Trustee shall not be liable with respect
to any action it takes or omits to take in good faith in accordance
with a direction received by it pursuant to Section 6.05.
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(d) Every provision of this Indenture that in any way
relates to the Trustee is subject to paragraphs (a), (b) and (c) of this
Section 7.01.
(e) The Trustee may refuse to exercise any of its rights
or powers under this Indenture at the request of any Holders unless such
Holders shall have offered to the Trustee indemnity reasonably satisfactory to
it against any loss, liability or expense. No provision of this Indenture
shall require the Trustee to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder, or
in the exercise of its rights or power, if it has reasonable grounds for
believing, and does believe in good faith, that repayment of such funds or
adequate indemnity against such risk or liability is not reasonably assured to
it.
(f) The Trustee shall not be liable for interest on any
money received by it except as expressly provided with respect to the sinking
fund account or as the Trustee may agree in writing with the Company. Money
held in trust by the Trustee need not be segregated from other funds except to
the extent required by law.
SECTION 7.02 RIGHTS OF TRUSTEE.
(1) The Trustee may rely on any document believed by it
to be genuine and to have been signed or presented by the proper
Person. The Trustee need not investigate any fact or matter stated in
the document.
(2) Before the Trustee acts or refrains from acting, it
may require an Officers' Certificate and/or an Opinion of Counsel and
may consult with its counsel. The Trustee shall not be liable for any
action it takes or omits to take in good faith in reliance on such
Officers' Certificate, Opinion of Counsel or advice of such counsel.
(3) The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed
with due care.
SECTION 7.03 INDIVIDUAL RIGHTS OF TRUSTEE.
The Trustee in its individual or any other capacity may become
the owner or pledgee of Securities and may otherwise deal with the Company, any
Subsidiary or any of the Guarantors or an Affiliate thereof with the same
rights it would have if it were not Trustee. Any Agent may do the same with
like rights. The Trustee, however, must comply with Sections 7.10 and 7.11.
SECTION 7.04 TRUSTEE'S DISCLAIMER.
The Trustee makes no representation as to the validity or
adequacy of this Indenture, the Guarantee or the Securities, and it shall not
be responsible for any statement in the Securities or the Guarantee other than
its certificate of authentication.
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SECTION 7.05 NOTICE OF DEFAULTS.
If a Default occurs and is continuing and if it is actually
known to the Trustee, the Trustee shall mail to each Securityholder a notice of
the Default within 90 days after it occurs. Except in the case of a Default in
payment of principal of or interest on a sinking fund payment with respect to
any Security, the Trustee may withhold the notice if and so long as it in good
faith determines that withholding the notice is in the interests of
Securityholders.
SECTION 7.06 REPORTS BY TRUSTEE TO HOLDERS.
Within 60 days after each May 15 beginning May 15, 1995, the
Trustee shall mail to each Securityholder a brief report dated as of such date
in accordance with and to the extent required under TIA Section 313(a). The
Trustee also shall comply with TIA Section 313(b).
A copy of each report at the time of its mailing to
Securityholders shall be filed by the Trustee with the SEC and each stock
exchange, if any, on which the Securities are listed. The Company shall notify
the Trustee when the Securities are listed on any stock exchange.
SECTION 7.07 COMPENSATION AND INDEMNITY.
The Company and each Guarantor, jointly and severally, agrees
to pay to the Trustee, from time to time, such reasonable compensation for all
services rendered by it hereunder (which compensation shall not be limited by
any law on compensation of a trustee of an express trust). The Company and
each Guarantor, jointly and severally, agrees to reimburse the Trustee upon
request for all reasonable out-of-pocket expenses, allowances and disbursements
incurred or made by the Trustee in accordance with any provision of this
Indenture (including the reasonable fees and expenses of its agents and
counsel), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith.
The Company and each Guarantor, jointly and severally, agrees
to indemnify the Trustee for, and hold it harmless against, any loss, expense
or liability (including the reasonable fees and expenses of agents and counsel)
incurred without negligence, bad faith or willful misconduct on its part, in
connection with the acceptance or administration of this Indenture and the
performance of its duties hereunder, including the costs and expenses of
defending itself against any claim or liability in connection with the exercise
or perfection of any of its powers or duties hereunder.
To secure the Company's and each Guarantor's payment
obligations in this Section, the Trustee shall have a lien prior to the
Securities on all money or property held or collected by the Trustee except
that held in trust to pay principal and interest on particular Securities.
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When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(7), (8) or (9) occurs, the expenses
and the compensation for services are intended to constitute expenses of
administration under any Bankruptcy Law.
SECTION 7.08 REPLACEMENT OF TRUSTEE.
A resignation or removal of the Trustee and appointment of a
successor Trustee shall become effective only upon the successor Trustee's
acceptance of appointment as provided in this Section.
The Trustee may resign by so notifying the Company and each
Guarantor. The Holders of a majority in principal amount of the Securities may
remove the Trustee by so notifying the Trustee, each Guarantor and the Company
and such Holders may appoint a successor Trustee with the Company's consent.
The Company may remove the Trustee if:
(1) the Trustee fails to comply with Section 7.10;
(2) the Trustee is adjudged a bankrupt or an insolvent;
(3) a receiver or other public officer takes charge of
the Trustee or its property;
(4) the Trustee becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, the Company shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the Securities may appoint a
successor Trustee to replace the successor Trustee appointed by the Company.
If a successor Trustee does not take office within 30 days
after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or the Holders of at least 10% in principal amount of the Securities
may petition any court of competent jurisdiction for the appointment of a
successor Trustee.
If the Trustee fails to comply with Section 7.10, any Holder
may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee.
A successor Trustee shall deliver a written acceptance of its
appointment to the retiring Trustee, the Guarantors and to the Company.
Thereupon the resignation or removal of the retiring Trustee shall become
effective and the successor Trustee shall have all the rights, powers and
duties of the Trustee under this Indenture. The successor Trustee shall mail a
notice of its succession to Securityholders. The retiring Trustee shall, upon
payment
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of all amounts due it under Section 7.07, promptly transfer all property held
by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 7.07.
SECTION 7.09 SUCCESSOR TRUSTEE BY MERGER, ETC.
If the Trustee consolidates, merges or converts into, or
transfers all or substantially all of its corporate trust business to another
corporation, the successor corporation without any further act shall be the
successor Trustee.
SECTION 7.10 ELIGIBILITY; DISQUALIFICATION.
This Indenture shall always have a Trustee who satisfies the
requirements of TIA Section 310(a)(1). The Trustee shall always have a
combined capital and surplus of at least $50,000,000 as set forth in its most
recent published annual report of condition. The Trustee shall comply with TIA
Section 310(b), including the optional provision permitted by the second
sentence of TIA Section 310(b)(9).
SECTION 7.11 PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY.
The Trustee shall comply with TIA Section 311(a), excluding
any creditor relationship listed in TIA Section 311(b). A Trustee who has
resigned or been removed shall be subject to TIA Section 311(a) to the extent
indicated.
ARTICLE 8.
DISCHARGE OF INDENTURE
SECTION 8.01 TERMINATION OF COMPANY'S AND GUARANTORS' OBLIGATIONS.
All of the Company's and each Guarantor's obligations under
this Indenture shall terminate when all Securities previously authenticated and
delivered (other than mutilated, destroyed, lost or stolen Securities which
have been replaced or paid) have been delivered to the Trustee for cancellation
or if:
(1) the Securities mature within six months or all of
them are to be called for redemption within six months and there
exists no Default or Event of Default;
(2) the Company or any Guarantor (x) irrevocably deposits
in trust with the Trustee, pursuant to an irrevocable trust and
security agreement in form and substance reasonably satisfactory to
the Trustee, money or U.S. Government Obligations sufficient to pay
the principal and interest due at maturity or the Redemption Price at
redemption, as the case may be and (y) irrevocably instructs the
Trustee to use such money or U.S. Government Obligations to redeem or
repay the Securities. The Company or any Guarantor may make the
deposit only during the six-month period.
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Immediately after making the deposit, the Company shall give notice of
such event to the Holders;
(3) the Company has paid or caused to be paid all sums
then payable by the Company to the Trustee hereunder as of the date of
such deposit;
(4) the Company has delivered to the Trustee an Officers'
Certificate and an Opinion of Counsel stating that all conditions
precedent provided for herein relating to the satisfaction and
discharge of this Indenture have been complied with; and
(5) the Company has delivered to the Trustee either (i)
an unqualified Opinion of Counsel, stating that the Holders of the
Securities (a) will not recognize income, gain or loss for Federal
income tax purposes as a result of such deposit (and the defeasance
contemplated in connection therewith) and (b) will be subject to
Federal income tax on the same amounts and in the same manner and at
the same times as would have been the case if such deposit and
defeasance had not occurred and such Holders received payment of sums
provided for in the Securities on the Maturity Date or the Redemption
Date, as the case may be, or (ii) an applicable favorable ruling to
that effect received from or published by the Internal Revenue
Service.
Notwithstanding the foregoing, the Company's obligations in Sections 2.03,
2.04, 2.05, 2.06, 2.07, 4.01, 7.07, 7.08 and 8.03 (and each Guarantor's
obligation in respect of Sections 4.01 and 7.07) shall survive until the
Securities are no longer outstanding, and the Company's obligations pursuant to
Sections 7.07 and 8.03 (and each Guarantor's obligations in respect of Section
7.07) shall survive any such termination.
After a deposit pursuant to this Section 8.01, the Trustee
upon request shall acknowledge in writing the discharge of the Company's and
each Guarantor's obligations under the Securities, the Guarantee and this
Indenture except for those surviving obligations specified above.
In order to have money available on a payment date to pay
principal or interest on the Securities, the U.S. Government Obligations shall
be payable as to principal or interest on or before such payment date in such
amounts as will provide the necessary money.
SECTION 8.02 APPLICATION OF TRUST MONEY.
The Trustee shall hold in trust money or U.S. Government
Obligations deposited with it in accordance with the provisions hereof. It
shall apply all such deposited money, and all money from U.S. Government
Obligations, through the Paying Agent and in accordance with this Indenture, to
the payment of principal of and interest on the Securities.
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SECTION 8.03 REPAYMENT TO COMPANY OR GUARANTORS.
The Trustee and the Paying Agent shall promptly pay to the
Company, or if deposited with the Trustee by a Guarantor, to such Guarantor
upon request any excess money or securities held by them at any time. The
Trustee and the Paying Agent shall pay to the Company, or if deposited with the
Trustee by a Guarantor, to such Guarantor, upon request any money held by them
for the payment of principal or interest that remains unclaimed for two years;
provided, however, that the Trustee or such Paying Agent, before being required
to make any such repayment, may, at the expense of the Company, cause to be
published once in a newspaper of general circulation in The City of New York or
cause to be mailed to each Holder, or both, a notice stating that such money
remains and that, after a date specified therein, which shall not be less than
30 days from the date of such publication or mailing, any unclaimed balance of
such money then remaining will be repaid to the Company. After payment to the
Company, Securityholders entitled to the money must look to the Company or such
Guarantor for payment as general creditors unless an applicable abandoned
property law designates another Person.
SECTION 8.04 REINSTATEMENT.
If the Trustee or Paying Agent is unable to apply any money or
U.S. Government Obligations in accordance with Section 8.01 by reason of any
legal proceeding or by reason of any order or judgment of any court or
governmental authority enjoining, restraining or otherwise prohibiting such
application, the Company's and each Guarantor's obligations under this
Indenture, the Guarantee and the Securities shall be revived and reinstated as
though no deposit has occurred pursuant to Section 8.01 until such time as the
Trustee or Paying Agent is permitted to apply all such money or U.S. Government
Obligations in accordance with Section 8.01; provided, however, that if the
Company or any Guarantor has made any payment of interest on or principal of
any Securities because of the reinstatement of its obligations, the Company or
such Guarantor shall be subrogated to the rights of the Holders of such
Securities to receive such payment from the money or U.S. Government
Obligations held by the Trustee or Paying Agent.
ARTICLE 9.
AMENDMENTS
SECTION 9.01 WITHOUT CONSENT OF HOLDERS.
The Company and the Trustee may amend or supplement this
Indenture, the Guarantee or the Securities without notice to or the consent of
any Securityholder:
(1) to cure any ambiguity, omission, defect or
inconsistency;
(2) to comply with Section 5.01;
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<PAGE> 55
(3) to provide for uncertified securities;
(4) in order to effect the granting or release of the
Guarantee with respect to any Guarantor in accordance with Article 10;
or
(5) to make any change that does not adversely affect the
rights of any Securityholder.
SECTION 9.02 WITH CONSENT OF HOLDERS.
The Company, with the consent of each Guarantor affected by
any amendment or supplement to the Guarantee, may amend or supplement this
Indenture, the Guarantee or the Securities with the written consent of the
Holders of at least 66 2/3% (except as hereinafter provided) of the principal
amount of the Securities then outstanding. Subject to Section 6.07, the
Holders of a majority (except as hereinafter provided) in principal amount of
the Securities may waive compliance by the Company or any Guarantor with any
provision of this Indenture, the Guarantee or the Securities without notice to
any Securityholder. However, without the consent of each Securityholder
affected, no amendment, supplement or waiver (other than as provided in Section
6.02 hereof), including a waiver pursuant to Section 6.04, may:
(1) reduce the amount of Securities whose Holders must
consent to an amendment, supplement or waiver;
(2) reduce the rate of or change the time for payment of
interest on any Security;
(3) reduce the principal of or change the fixed maturity
of any Security or alter the redemption provisions with respect
thereto;
(4) waive a default in the payment of principal of,
premium, if any, or interest on any Security;
(5) make any Security payable in money other than that
stated in the Security;
(6) make any change in Section 6.04, Section 6.07 or this
Section 9.02;
(7) release any Guarantor from its liability under its
Guarantee except in accordance with the express provisions of Article
10; or
(8) make any change in Section 4.14.
Promptly after an amendment under this Section becomes
effective, the Company shall mail to the Securityholders a notice briefly
describing the amendment.
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It shall not be necessary for the consent of the Holders under
this Section to approve the particular form of any proposed amendment or
supplement, but it shall be sufficient if such consent approves the substance
thereof.
SECTION 9.03 COMPLIANCE WITH TRUST INDENTURE ACT.
Every amendment to this Indenture, the Guarantee or the
Securities shall comply with the TIA as then in effect.
SECTION 9.04 REVOCATION AND EFFECT OF CONSENTS.
Until an amendment, supplement or waiver becomes effective, a
consent to it by a Holder of a Security is a continuing consent by the Holder
and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder's Security, even if notation
of the consent is not made on any Security. However, any such Holder or
subsequent Holder may revoke the consent as to his Security or portion of a
Security if the Trustee receives the notice of revocation before the date the
amendment, supplement or waiver becomes effective. An amendment, supplement or
waiver becomes effective in accordance with its terms.
After an amendment, supplement or waiver becomes effective
with respect to the Securities, it shall bind every Securityholder.
SECTION 9.05 NOTATION ON OR EXCHANGE OF SECURITIES.
If an amendment, supplement or waiver changes the terms of a
Security, the Trustee may require the Holder of the Security to deliver it to
the Trustee. The Trustee may place an appropriate notation on the Security
about the changed terms and return it to the Holder. Alternatively, if the
Company or the Trustee so determines, the Company in exchange for the Security
shall issue and the Trustee shall authenticate a new Security that reflects the
changed terms.
SECTION 9.06 TRUSTEE PROTECTED.
The Trustee need not sign any amendment, supplement or waiver
authorized pursuant to this Article that adversely affects the Trustee's
rights. The Trustee shall be entitled to receive and rely upon an Opinion of
Counsel and an Officers' Certificate from the Company and any appropriate
Guarantor that any amendment, supplement or waiver complies with the Indenture.
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ARTICLE 10.
GUARANTEE
SECTION 10.01 GUARANTEE.
Subject to the provisions of this Article 10, the Company
shall cause each Restricted Subsidiary existing from time to time to
unconditionally guarantee, by supplemental indenture, (a) the due and punctual
payment of the principal of and interest on each Security authenticated and
delivered by the Trustee, when and as the same shall become due and payable,
whether at maturity, by acceleration or otherwise and the due and punctual
payment of interest on the overdue principal of and interest, if any, on such
Securities, to the extent lawful including, in each case, interest accruing
after the filing of a petition under any Bankruptcy Law regardless of whether
such interest is allowed as a claim against the Company, and (b) the due and
punctual performance of any obligation to repurchase Securities pursuant to
Section 4.14, and (c) in the case of any extension of time of payment or
renewal of any such Securities or any of such other obligations, that the same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, at stated maturity, by acceleration or
otherwise. Each Guarantor hereby agrees that its obligations hereunder shall
be absolute and unconditional, irrespective of, and shall be unaffected by, any
invalidity, irregularity or unenforceability of any such Security or this
Indenture, any failure to enforce the provisions of any such Security or this
Indenture, any waiver, modification or indulgence granted to the Company with
respect thereto, whether by the Holder of such Security or the Trustee, or any
other circumstances which may otherwise constitute a legal or equitable
discharge of a surety or guarantor. Each Guarantor hereby waives diligence,
presentment, filing of claims with a court in the event of merger or bankruptcy
of the Company, any right to require a proceeding first against the Company,
the benefit of discussion, protest or notice with respect to any such Security
or the Indebtedness evidenced thereby and all demands whatsoever (except as
specified above). The respective Guarantees of the Guarantors will not be
discharged as to any such Security except by payment in full of the principal
thereof and interest thereon or as the Guarantee of any Guarantor may be
discharged and terminated as provided in Section 8.01 or as expressly provided
in this Section 10.01 below. Each Guarantor further agrees that, as between
such Guarantor, on the one hand, and the Holders and the Trustee, on the other
hand, (a) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article 6 hereof for the purposes of this Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (b) in the
event of any declarations of acceleration of such obligations as provided in
Article 6 hereof, such obligations (whether or not due and payable) shall
forthwith become due and payable by the Guarantor for the purpose of this
Guarantee. In addition, without limiting the foregoing provisions, upon the
effectiveness of an acceleration under Article 6, the Trustee shall promptly
make a demand for payment of the Securities under the Guarantee provided for in
this Article 10 and not discharged.
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In the event of (x) any insolvency, bankruptcy, receivership,
custodianship, liquidation, reorganization, readjustment of debt, arrangement,
composition, moratorium, assignment for the benefit of creditors, or other
similar proceedings affecting the Company or its property or assets, or (y) any
proceeding for voluntary liquidation, dissolution or other winding up or
bankruptcy or other similar proceedings affecting the Company, then and in any
such event the Securities and all amounts due to the Trustee under Section 7.07
of this Indenture shall first be indefeasibly paid in full before any payment
or distribution of any character, whether in cash, securities, obligations or
other property, shall be made to any Guarantor. Each Guarantor hereby
irrevocably waives any claim or other rights which it may now or hereafter
acquire against the Company that arise from the existence, payment, performance
or enforcement of the Guarantor's obligations under the Guarantee including,
without limitation, any right of subrogation, reimbursement, exoneration,
indemnification, and any right to participate in any claim or remedy of any
holder of Securities against the Company, whether or not such claim, remedy or
right arises in equity, or under contract, statute or common law, including,
without limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim or other rights. Each Guarantor
acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by this Indenture and the waiver set forth
in this Section 10.01 is knowingly made in contemplation of such benefits.
Upon any Sale of Assets, or any transaction which would be a
Sale of Assets if not for the provisions of clause (D) of the definition of
Sale of Assets herein, made in compliance with the terms of this Indenture
which consists of a sale of all of the Capital Stock of a Restricted Subsidiary
or the sale of substantially all of the assets of a Restricted Subsidiary
(including without limitation by means of any merger or consolidation), such
Restricted Subsidiary's obligations in respect of the Guarantee shall, without
payment of any consideration or any further action on the part of any Person,
be discharged and terminated.
If at any time any Guarantor shall have ceased to be a
Restricted Subsidiary by virtue of its having had total assets with a book
value of less than $1,000,000 on the last day of each of any four consecutive
fiscal quarters of the Company, such Guarantor shall be released and discharged
from its obligations under its Guarantee without payment of any consideration
or any further action on the part of any Person.
Upon its receipt of an Officers' Certificate of the Company
that a Subsidiary has ceased to have any obligations under its Guarantee, as
provided in this Section 10.01, the Trustee, the Company and such Restricted
Subsidiary (or former Restricted Subsidiary) shall execute and cause to be
filed or delivered any instrument, agreement, indenture or document reasonably
requested by the Company in an Officers' Certificate to fully effect each
discharge and termination.
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SECTION 10.02 FURTHER ASSURANCES.
The Company has executed and delivered and the Company and all
Guarantors will execute and deliver all such instruments and documents, and
have done and will do all such acts and other things, at the Company's expense,
as may be necessary or desirable, or that the Trustee may reasonably request,
to give full force and effect to the Guarantee, in the case of the existence of
an Event of Default, to enable the Trustee to exercise and enforce the
Securityholders' rights and remedies with respect to the Guarantee.
SECTION 10.03 AUTHORIZATION OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER THE
GUARANTEE.
The Trustee may, in its sole discretion and without the
consent of the Securityholders take all actions it deems necessary or
appropriate in order to (i) enforce any of the terms of the Guarantee and (ii)
collect and receive any and all amounts payable in respect of the obligations
of the Company and/or the Guarantors hereunder. The Trustee shall have power
to institute and to maintain such suits and proceedings as it may deem
expedient to preserve or protect its interests and the interests of the
Securityholders.
SECTION 10.04 AUTHORIZATION OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE
GUARANTEE.
The Trustee is authorized to receive any funds for the benefit
of Securityholders distributed under the Guarantee, and to make further
distributions of such funds to the Holders according to the provisions of this
Indenture.
SECTION 10.05 TERMINATION OF GUARANTEE.
Upon the discharge of the Guarantee with respect to any one or
more Guarantors, the Trustee shall, at the request of the Company, deliver a
certificate to such Guarantors stating that such obligations have been
discharged in full.
SECTION 10.06 EXECUTION OF GUARANTEE.
To evidence its guarantee to the Securityholders specified in
Section 10.01, each Guarantor hereby agrees to execute the Guarantee in
substantially the form of Section 10.01 to be endorsed on each Security
authenticated and delivered by the Trustee. Each Guarantor hereby agrees that
its Guarantee set forth in Section 10.01 shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of such
Guarantee. Each such Guarantee shall be signed on behalf of each Guarantor by
its Chairman of the Board, President or a Vice President, prior to the
authentication of the Security on which it is endorsed, and the delivery of
such Security by the Trustee, after the authentication thereof hereunder, shall
constitute due delivery of such Guarantee on behalf of such Guarantor. Such
signatures upon the Guarantee may be manual or facsimile signatures of the
present, past or any future Officers of the appropriate Guarantor and may be
imprinted
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or otherwise reproduced on the Guarantee, and in case any such Officer who
shall have signed the Guarantee shall cease to be such Officer before the
Security on which such Guarantee is endorsed shall have been authenticated and
delivered by the Trustee or disposed of by the Company, such Security
nevertheless may be authenticated and delivered or disposed of as though the
Person who signed the Guarantee had not ceased to be such Officer of the
Guarantor.
ARTICLE 11.
MISCELLANEOUS
SECTION 11.01 TRUST INDENTURE ACT CONTROLS.
If any provision of this Indenture or the Guarantee limits,
qualifies or conflicts with another provision which is required or deemed to be
included in this Indenture by the TIA, the required or deemed provision shall
control.
SECTION 11.02 NOTICES.
Any notice or communication by the Company, any Guarantor or
the Trustee to the other is duly given if in writing and when delivered in
person, mailed by first-class mail to the other's address stated in this
Section 11.02. The Company, any Guarantor or the Trustee by notice to the
other may designate additional or different addresses for subsequent notices or
communications.
Any notice or communication to a Securityholder shall be
mailed by first-class mail to his or her address shown on the register kept by
the Registrar. Failure to mail a notice or communication to a Securityholder
or any defect in it shall not affect its sufficiency with respect to other
Securityholders.
If a notice or communication is mailed to any Securityholder,
the Company or any Guarantor in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.
If the Company mails a notice or communication to
Securityholders, it shall mail a copy to the Trustee and each Agent at the same
time.
All notices or communications shall be in writing.
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The Company's and each Guarantor's address is:
Lone Star Industries, Inc.
300 First Stamford Place
Stamford, CT 06912-0014
Attn: Secretary
Telephone: (203) 969-8600
Facsimile: (203) 969-8686
The Trustee's address is:
Chemical Bank
450 West 33rd St.
15th Floor
New York, New York 10001
Attn: Corporate Trust Administration
Telephone: (212) 613-7655
Facsimile: (212) 613-7800
SECTION 11.03 COMMUNICATION BY HOLDERS WITH OTHER HOLDERS.
Securityholders may communicate pursuant to TIA Section
312(b) with other Securityholders with respect to their rights under this
Indenture or the Securities. The Company, the Guarantor, the Trustee, the
Registrar and anyone else shall have the protection of TIA Section 312(c).
SECTION 11.04 ACTION BY SECURITYHOLDERS.
Whenever in this Indenture it is provided that the Holders of
a specified percentage in aggregate principal amount of the Securities may take
any action (including the making of any demand or request, the giving of any
notice, consent or waiver or the taking of any other action), the fact that at
the time of taking any such action the Holders of such specified percentage
have joined therein may be evidenced by (a) any instrument or any number of
instruments of similar tenor executed by Holders of Securities in person or by
agent or proxy appointed in writing, or (b) by the record of the Holders of
Securities in favor thereof, at any meeting of Holders duly called and held in
accordance with the provisions of Article 12, or (c) by a combination of such
instrument or instruments and any such record of such meeting of Holders, but
in each case only to the extent that the Holders of Securities shall not have
revoked such action, consent or vote pursuant to Section 9.04 and Section
11.06.
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SECTION 11.05 PROOF OF EXECUTION OF INSTRUMENTS AND OF HOLDING OF
SECURITIES.
Proof of the execution of any instrument by a Holder of
Securities or his or her agent or proxy and proof of the holding by any Person
of any of the Securities shall be sufficient if made in the following manner:
(1) The fact and date of execution of any such instrument
may be proved in any other manner which the Trustee deems sufficient.
(2) The ownership of Securities shall be proved by the
register of such Security or by a certificate of the Registrar
thereof.
(3) The Trustee shall not be bound to recognize any
Person as a Securityholder unless his or her title to any Security is
proved in the manner provided in this Article 11.
SECTION 11.06 REVOCATION OF CONSENTS; FUTURE HOLDERS BOUND.
Subject to Section 9.04, at any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 11.04, of the taking of
any action by the Holders of the required percentage of the aggregate principal
amount of the Securities specified in this Indenture in connection with such
action, any Holder of a Security which is shown by the evidence to be included
in the Securities the Holders of which have consented to such action may, by
filing written notice with the Trustee at its principal office and upon proof
of holding as provided in Section 11.05, revoke such action so far as concerns
such Security. Except as aforesaid, any such action taken by the Holder of any
Security shall be conclusive and binding upon such Holder and upon all future
holders and owners of such Security and of any Security issued in exchange or
substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Security. Any action taken by the Holders of the
required percentage of the aggregate principal amount of the Securities
specified in this Indenture in connection with such action shall be conclusive
and binding upon the Company, the Guarantors, the Trustee and the holders of
all the Securities.
SECTION 11.07 OBLIGATION TO DISCLOSE BENEFICIAL OWNERSHIP OF SECURITIES.
All Securities shall be held and owned upon the express
condition that, upon demand of any regulatory agency having jurisdiction over
the Company or any Guarantor, and pursuant to law or regulation empowering such
agency to assert such demand, any registered Holder shall disclose to such
agency the identity of the beneficial owner of all Securities held thereby.
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SECTION 11.08 CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT.
Upon any request or application by the Company or any
Guarantor to the Trustee to take any action under this Indenture the Company or
such Guarantor shall furnish to the Trustee:
(1) an Officers' Certificate stating that, in the opinion
of the signer, all conditions precedent, if any, provided for in this
Indenture relating to the proposed action have been complied with; and
(2) an Opinion of Counsel stating that, in the opinion of
such counsel, all such conditions precedent have been complied with.
Each signer of an Officers' Certificate or an Opinion of
Counsel may (if so stated) rely upon an Opinion of Counsel as to legal matters
and an Officers' Certificate as to factual matters if such signer reasonably
and in good faith believes in the accuracy of the document relied upon.
SECTION 11.09 STATEMENTS REQUIRED IN CERTIFICATE OR OPINION.
Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture shall include:
(1) a statement that the Person making such certificate
or opinion has read such covenant or condition;
(2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions
contained in such certificate or opinion are based;
(3) a statement that, in the opinion of such Person, he
or she has made such examination or investigation as is necessary to
enable such Person to express an informed opinion as to whether or not
such covenant or condition has been complied with; and
(4) a statement as to whether or not, in the opinion of
such Person, such condition or covenant has been complied with.
SECTION 11.10 RULES BY TRUSTEE AND AGENTS.
The Trustee may make reasonable rules for action by or at a
meeting of Securityholders. The Registrar or Paying Agent may make reasonable
rules and set reasonable requirements for their respective functions.
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SECTION 11.11 LEGAL HOLIDAYS.
A "Legal Holiday" is a Saturday, a Sunday or a day on which
banking institutions are obligated by law, regulation or executive order to
remain closed in The City of New York, in the State of New York or in the city
in which the Trustee or any Paying Agent under this Indenture administers its
corporate trust business. If a payment date is a Legal Holiday at a place of
payment, payment may be made at that place on the next succeeding day that is
not a Legal Holiday, and no interest shall accrue on that payment for the
intervening period.
A "Business Day" is a day other than a Legal Holiday.
SECTION 11.12 NO RECOURSE AGAINST OTHERS.
All liability of any director, officer, employee or
stockholder, as such, of the Company or any Guarantor with respect to the
Securities is waived and released.
SECTION 11.13 DUPLICATE ORIGINALS.
The parties may sign any number of copies of this Indenture.
Each signed copy shall be an original, but all of them together represent the
same agreement.
SECTION 11.14 GOVERNING LAW.
The laws of the State of New York, without regard to
principles of conflicts of law, shall govern this Indenture and the Securities.
SECTION 11.15 NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS.
This Indenture may not be used to interpret another indenture,
loan or debt agreement of the Company, any Guarantor or a Subsidiary. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.
SECTION 11.16 SUCCESSORS.
All agreements of the Company and each Guarantor in this
Indenture and the Securities shall bind its successors. All agreements of the
Trustee in this Indenture shall bind its successors.
SECTION 11.17 SEPARABILITY.
In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby and a Holder shall have no claim therefor against any party
hereto.
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SECTION 11.18 TABLE OF CONTENTS, HEADINGS, ETC.
The Table of Contents, Cross-Reference Table and headings of
the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.
ARTICLE 12.
MEETINGS OF HOLDERS OF SECURITIES
SECTION 12.01 PURPOSES OF MEETINGS.
A meeting of Holders of Securities may be called at any time
and from time to time pursuant to the provisions of this Article 12 for any of
the following purposes:
(a) to give any notice to the Company, any Guarantor or
to the Trustee, or to give any direction to the Trustee, or to waive any
non-performance hereunder, and its consequences, or to take any other action
authorized to be taken by Holders of Securities pursuant to any of the
provisions of this Indenture;
(b) to remove the Trustee and appoint a successor trustee
pursuant to the provisions of Section 7.08;
(c) to consent to the execution of an indenture or
indentures supplemental hereto pursuant to the provisions of Article 9; or
(d) to take any other action authorized to be taken by or
on behalf of the Holders of any specified aggregate principal amount of the
Securities under any other provision of this Indenture or under applicable law.
SECTION 12.02 CALL OF MEETINGS BY TRUSTEE.
The Trustee may at any time call a meeting of Holders of
Securities to take any action specified in Section 12.01, to be held at such
time and at such place in the State of New York, as the Trustee shall
determine. Notice of each meeting of the Holders of Securities, setting forth
the time and the place of such meeting and, in general terms, the action
proposed to be taken at such meeting, shall be mailed by the Trustee to the
Holders of the Securities, not less than 20 nor more than 60 days prior to the
date fixed for the meeting, at their last addresses as they shall appear on the
register of the Securities.
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SECTION 12.03 CALL OF MEETINGS BY COMPANY OR SECURITYHOLDERS.
If at any time the Company, pursuant to a resolution of its
Board of Directors, or the holders of at least twenty percent in aggregate
principal amount of the Securities then outstanding, shall have requested the
Trustee to call a meeting of Holders of Securities to take any action
authorized in Section 12.01, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall
not have mailed notice of such meeting within twenty days after receipt of such
request, then the Company or the Holders of Securities in the amount above
specified, as the case may be, may determine the time and the place in the
State of New York for such meeting, and may call such meeting by mailing notice
thereof as provided in Section 12.02.
SECTION 12.04 PERSONS ENTITLED TO VOTE AT MEETING.
To be entitled to vote at any meeting of Holders of
Securities, a Person shall (a) be a Holder of Securities or (b) be a Person
appointed by an instrument in writing as proxy by a Holder of Securities. The
only Persons who shall be entitled to be present or speak at any meeting of the
Holders of the Securities shall be the Persons entitled to vote at such meeting
and their counsel and any representatives of the Company and its counsel.
SECTION 12.05 REGULATIONS FOR MEETING.
Notwithstanding any other provisions of this Indenture, the
Trustee may make such reasonable regulations as it may deem advisable for any
meeting of Holders of the Securities in regard to the appointment of proxies,
the proof of the holding of Securities, the appointment and duties of
inspectors of votes, the submission and examination of proxies and other
evidence of the right to vote, and such other matters concerning the conduct of
the meeting as it shall think fit. Except as otherwise permitted or required
by any such regulations, the holding of Securities shall be proved in the
manner specified in Section 11.05 and the appointment of any proxy shall be
proved in the manner specified in such Section 11.05 or by having the signature
of the person executing the proxy witnessed or guaranteed by any bank, banker,
trust company or New York Stock Exchange, Inc. member firm satisfactory to the
Trustee.
The Trustee shall, by an instrument in writing, appoint a
temporary chairman of the meeting, unless the meeting shall have been called by
the Company or by Holders of the Securities as provided in Section 12.03, in
which case the Company or the Holders of the Securities calling the meeting, as
the case may be, shall in like manner appoint a temporary chairman, and a
permanent chairman and a permanent secretary of the meeting shall be elected by
vote of the Holders of a majority in principal amount of the Securities
represented at the meeting and entitled to vote.
At any meeting of Holders of Securities, the presence of
persons holding or representing Securities in an aggregate principal amount
sufficient to take action upon the business for the transaction of which such
meeting was called shall be necessary to constitute
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a quorum; but, if less than a quorum be present, the persons holding or
representing a majority in aggregate principal amount of the Securities
represented at the meeting may adjourn such meeting with the same effect, for
all intents and purposes, as though a quorum had been present.
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SIGNATURES
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed, and their respective corporate seals to be
hereunto affixed and attested, all as of the day and year first above written.
LONE STAR INDUSTRIES, INC.
By:
-------------------------
Title:
[SEAL]
Attest:
- -------------------------
Title:
CHEMICAL BANK
By:
-------------------------
Title:
[SEAL]
Attest:
- -------------------------
Title:
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EXHIBIT A
REGISTERED [Face of Security] REGISTERED
DOLLARS DOLLARS
LONE STAR INDUSTRIES, INC ........
10% SENIOR NOTE DUE 2003
LONE STAR INDUSTRIES, INC., a Delaware corporation (herein
called the "Company"), for value received, hereby promises to pay to
_______________ or registered assigns, the principal sum of _______________
Dollars on July 31,* 2003, and to pay interest thereon as provided on the
reverse hereof, until the principal hereof is paid or duly provided for.
Interest Payment Dates: January 31 and July 31 of each year, commencing July
31, 1994.
Record Dates: January 15 and July 15 of each year, commencing July 15, 1994.
The provisions on the back of this certificate are
incorporated as if set forth on the face hereof.
IN WITNESS WHEREOF, LONE STAR INDUSTRIES, INC. has caused this
instrument to be duly signed under its corporate seal.
[SEAL] LONE STAR INDUSTRIES, INC.
By:
--------------------------------
Title:
By:
--------------------------------
Title:
TRUSTEE'S CERTIFICATE OF AUTHENTICATION
This is one of the Securities referred
to in the within-mentioned Indenture.
CHEMICAL BANK
as Trustee
By: ---------------------------------------------
Authorized Officer
Dated: ----------------------------------------------
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<PAGE> 70
[REVERSE OF SECURITY]
LONE STAR INDUSTRIES, INC.
10% SENIOR NOTE DUE 2003
1. Interest. Lone Star Industries, Inc., a Delaware
corporation (the "Company"), promises to pay interest on the principal amount
of this Security at the rate per annum shown above. The Company will pay
interest semiannually in arrears on July 31 and January 31 of each year,
commencing July 31, 1994. Interest on the Securities will accrue from the most
recent date to which interest has been paid (or, if no interest has been paid,
from February 1, 1994). Interest on overdue principal shall accrue at the rate
per annum of 11% from the due date until paid in full. Interest shall be
computed on the basis of a 360-day year of 12 30-day months.
2. Method of Payment. The Company will pay interest on
the Securities (except defaulted interest) to the persons who are registered
Holders of Securities at the close of business on the record date set forth on
the face of this Security next preceding the applicable interest payment date.
Holders must surrender Securities to a Paying Agent to collect principal
payments. The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and
private debts. However, the Company may pay principal and interest by check
payable in such money. It may mail an interest check to a Holder's registered
address.
3. Paying Agent and Registrar. Initially, Chemical Bank
(the "Trustee") will act as Paying Agent and Registrar. The Company may change
any Paying Agent, Registrar or co-registrar without notice. The Company may
act in any such capacity.
4. Indenture. The Company has issued the Securities
under an Indenture dated as of ____________, 1994 (the "Indenture") between the
Company and the Trustee. The terms of the Securities include those stated in
the Indenture and those made part of the Indenture by reference to the Trust
Indenture Act of 1939, as amended (15 U.S. Code Section Section 77aaa=77bbbb)
(the "Act") as in effect on the date of the Indenture. The Securities are
subject to all such terms, and Securityholders are referred to the Indenture
and the Act for a statement of such terms. The Securities are obligations of
the Company limited to up to $78,000,000 aggregate principal amount (except for
Securities issued in substitution for destroyed, mutilated, lost or stolen
Securities). Terms used herein which are defined in the Indenture have the
meanings assigned to them in the Indenture.
5. Voluntary Prepayments or Redemption. The Securities
may be redeemed at the option of the Company in whole at any time or in part
from time to time at the principal amount plus accrued and unpaid interest to
the date of such optional redemption. The Securities may also be purchased by
the Company on the open market from time to time without penalty or premium.
6. Sinking Fund. The Company must make three payments
of $10,000,000 each into a specified sinking fund provided for in the
Indenture. The first payment of $10,000,000 shall be made on or prior to July
31, 2000, the second on or prior to July 31, 2001, and the third on or prior to
July 31, 2002. Payments pursuant to this paragraph shall
A-2
<PAGE> 71
be made to the Trustee in accordance with the provisions of the Indenture. The
amount of any sinking fund payment the Company is required to make shall be
reduced by the principal amount of any Securities that the Company has
optionally redeemed or purchased and delivered to the Trustee for cancellation
and that have not been previously applied against the Company's deposit
obligations with respect to Excess Net Proceeds redemptions or required sinking
fund payments.
7. Mandatory Redemption. Within forty-five days after
the end of each fiscal quarter of the Company in which Excess Net Proceeds
shall have been received by the Company or any Restricted Subsidiary, the
Company shall deposit all Excess Net Proceeds received during such quarter into
an account with the Trustee. Simultaneously with such deposit, the Company
shall provide to the Trustee an Officers' Certificate setting forth (a) a
calculation of the Net Proceeds received by the Company or any Restricted
Subsidiary during such quarter and (b) a calculation of the amount of Excess
Net Proceeds received by the Company or any Restricted Subsidiary and deposited
with the Trustee. If at any time there is at least $5 million on deposit with
the Trustee pursuant to Section 3.08 of the Indenture, all money in such
account shall be used by the Trustee upon receipt of the Officers' Certificate,
delivered pursuant to Section 3.01 of the Indenture, to redeem Securities at
the Redemption Price. The amount of any such required deposit shall be reduced
by the principal amount of any Securities that the Company has (during a period
commencing with the public announcement that a Sale of Assets has occurred in
respect of which a deposit of Excess Net Proceeds is expected to be made and
ending on the earlier of (i) ninety days after the date of such announcement or
(ii) the date on which the deposit is required to be made under the first
sentence of Section 3.08 of the Indenture) optionally redeemed or purchased
(whether through open market or other purchases) and delivered to the Trustee
for cancellation and that have not been previously applied against the
Company's deposit obligations with respect to Excess Net Proceeds or required
sinking fund payments.
8. Offers to Purchase. Section 4.14 of the Indenture
provides that upon the occurrence of a Change of Control, and subject to
further limitations outlined therein, the Company shall make an offer to
purchase the Securities in accordance with the procedures set forth in the
Indenture.
9. Guarantee. The Securityholders may be the
beneficiaries of a Guarantee made by the Guarantors from time to time as
provided in Article 10 of the Indenture. A Securityholder by accepting this
Note agrees to all of the terms and conditions of the Guarantee.
10. Denominations, Transfer, Exchange. The Securities
are in registered form without coupons in denominations of $1,000 and whole
multiples of $1,000. The transfer of Securities may be registered and
Securities may be exchanged as provided in the Indenture. The Registrar may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents. No service charge shall be made for any such registration
or transfer or exchange, but the Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection
therewith. The Registrar need not exchange or register the transfer of any
Security selected for redemption in whole or in part (except the unredeemed
portion of securities being redeemed in part). Also, it need not exchange or
register the transfer of any Securities for a period of 15 days before a
selection of Securities to be redeemed.
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<PAGE> 72
11. Persons Deemed Owners. The registered Holder of this
Note shall be treated as its owner for all purposes.
12. Merger or Consolidation. The Company may not
consolidate or merge with or into, or sell, assign, transfer or lease all or
substantially all of its assets to another person unless: (i) there is no
outstanding Default or Event of Default; (ii) the person formed by or surviving
any such consolidation or merger (if other than the Company), or to which such
sale or conveyance shall have been made, is an entity organized and existing
under the laws of the United States, any state thereof or the District of
Columbia; (iii) such person assumes by supplemental indenture all the
obligations of the Company under the Securities and the Indenture; and (iv) the
person formed by or surviving such consolidation or merger, or to which such
sale or conveyance shall have been made, immediately thereafter (A) has
Consolidated Net Worth no smaller than the Company and (B) could incur $1.00 of
additional Indebtedness under Section 4.0 of the Indenture without taking into
consideration the process thereto.
13. Amendments and Waivers. Subject to certain
exceptions, the Indenture or the Securities may be amended with the consent of
the Holders of at least 66 2/3% of the principal amount of the Securities
outstanding, and certain existing defaults may be waived with the consent of
the Holders of 66 2/3% of the principal amount of the Securities. Without the
consent of any Securityholder, the Indenture or the Securities may be amended
to cure any ambiguity, omission, defect or inconsistency, to provide for
uncertificated Securities in addition to certificated Securities, to comply
with Section 5.01 of the Indenture or to make any change that does not
adversely affect the right of any Securityholder.
14. Defaults and Remedies. An Event of Default is:
default in the payment of interest on any Security when the same becomes due
and payable, whether at maturity, in connection with any redemption, by
acceleration or otherwise, and such default continues for a period of 30 days;
default in the payment of the principal of any Security when the same becomes
due and payable, whether at maturity, in connection with any sinking fund
obligation or redemption, by acceleration or otherwise (provided, however, in
the case of any such default resulting from a dispute as to the computation of
Excess Net Proceeds, that such default shall have remained uncured for a period
of 30 days from the date of notice to the Company from the Trustee as to such
default); failure by the Company or any Restricted Subsidiary to observe or
perform in any material respect any of its other covenants or agreements in the
Securities or the Indenture, which further continues for a period of 30 days
after either notice shall have been given to the Company or the date on which
the Company had Actual Knowledge of such failure; failure by the Company or any
of its Restricted Subsidiaries to pay when due any principal or interest on any
Indebtedness with an aggregate outstanding principal amount in excess of $1
million, which default continues for any period of grace applicable thereto; a
default or event of default, as defined in (i) one or more indentures,
agreements or other instruments evidencing or under which the Company or any of
its Restricted Subsidiaries individually or collectively have outstanding at
least $1 million aggregate principal amount of Indebtedness or (ii) Employee
Settlement Agreements (which, in the case of the Employee Settlement Agreement
with the Pension Benefits Guaranty Corporation, shall be limited to a default
under Section 9.1(a) thereof) and such Indebtedness or Employee Settlement
Agreement shall have been accelerated so that it is due and payable prior to
the date on which it would otherwise have become due and payable, unless cured
or waived; entry of one or more final judgments against the Company or any of
its Restricted Subsidiaries for payments of money which in the aggregate exceed
$1 million, by a court of competent jurisdiction and such judgments are not
rescinded, annulled, stayed or discharged
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<PAGE> 73
within 60 days; the Company and its Restricted Subsidiaries, taken as a whole,
shall become insolvent; the commencement of a voluntary case under the Federal
Bankruptcy law; the occurrence of certain other events under a Bankruptcy Law,
including but not limited to the entry of a judgment for relief in respect of
the Company or any of its Material Restricted Subsidiaries by a court of
competent jurisdiction which remains unstayed and in effect for 60 days; or the
occurrence of certain events relating to the Company and Restricted
Subsidiaries ERISA Plans.
15. Trustee Dealings with Company. Chemical Bank, the
Trustee under the Indenture, or any banking institution serving as successor
Trustee thereunder, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company, its Affiliates and
Restricted Subsidiaries or the Guarantors, and may otherwise deal with the
Company, its Affiliates and Restricted Subsidiaries or the Guarantors, as if it
were not Trustee.
16. No Recourse Against Others. No director, officer,
employee, or stockholder, as such, of the Company or any Guarantor shall have
any liability for any obligations of the Company under the Securities or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a Security
waives and releases all such liability. The waiver and release are part of the
consideration for the issue of the Securities.
17. Authentication. This Security and any related
Guarantee shall not be valid until authenticated by the manual or facsimile
signature of the Trustee or an authenticating agent.
18. Abbreviations. Customary abbreviations may be used
in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in
common), TEN ENT (= tenants by the entireties,) JT TEN (=joint tenants with
right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).
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<PAGE> 74
THE COMPANY WILL FURNISH TO ANY SECURITYHOLDER UPON WRITTEN
REQUEST AND WITHOUT CHARGE A COPY OF THE INDENTURE. REQUESTS MAY BE MADE TO:
LONE STAR INDUSTRIES, INC., 300 FIRST STAMFORD PLACE, STAMFORD, CT 06912-0014,
ATTN: SECRETARY.
[FORM OF NOTATION ON NOTE
RELATING TO GUARANTEE]
Each of the undersigned (hereinafter referred to as a
"Guarantor," which term includes any successor person under the Indenture
referred to in the Note upon which this notation is endorsed), has
unconditionally guaranteed the due and punctual payment of the principal of and
interest on the Notes, whether at maturity, by acceleration or otherwise, and
the due and punctual payment of interest on the overdue principal of and
interest, if any, on the Notes, to the extent lawful, all in accordance with
the terms set forth in Article 10 of the Indenture and (ii) in case of any
extension of time of payment or renewal of any Notes or any of such other
obligations, that the same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated
maturity, by acceleration or otherwise.
The obligations of each Guarantor to the Holders of the Notes
and to the Trustee pursuant to the Guarantee and the Indenture are expressly
set forth in Article 10 of the Indenture and reference is hereby made to such
Indenture for the precise terms of the Guarantee. Under certain circumstances
specified in such Article, Guarantors may be released from their respective
obligations under the Guaranty without the consent of, or notice to, the
Holders of the Notes.
No director, officer, employee or stockholder, as such, past,
present or future, of any Guarantor or any of its Subsidiaries shall have any
personal liability under the Guarantee by reason of his or its status as such.
The Guarantee shall not be valid or obligatory for any purpose
until the certificate of authentication on the Notes upon which this Guarantee
is noted shall have been executed by the Trustee under the Indenture by the
manual or facsimile signature of one of its authorized officers.
[GUARANTORS]
By:
-----------------------
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<PAGE> 75
ASSIGNMENT FORM
To assign this Security, fill in the form below:
I or we assign and transfer this Security to:
- ----------------------------------------------------
- ----------------------------------------------------
- ----------------------------------------------------
(Print or type assignee's name, address and zip code)
- ----------------------------------------------------
- ----------------------------------------------------
(Insert Assignee's Soc. Sec. or Tax I.D. No.)
and irrevocably appoint
---------------------
agent to transfer this Security on the books of the
Company. The agent may substitute another to act for him or her.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Date: Signature(s):
--------------- -------------------------
--------------------------------------
(Sign exactly as your name(s) appear
on the other side of this Security)
Signature(s) guaranteed by: -------------------------------------
(All signatures must be guaranteed
by a member of a national securities
exchange or of the National Association
of Securities Dealers, Inc. or by a
commercial bank or trust company
located in the United States)
A-7
<PAGE> 1
EXHIBIT T3E(a)
UNITED STATES BANKRUPTCY COURT
SOUTHERN DISTRICT OF NEW YORK
- --------------------------------------X
:
In re : Chapter 11
:
NEW YORK TRAP ROCK CORPORATION : Case Nos. 90 B 21276
LONE STAR INDUSTRIES, INC., : to 90 B 21286,
et al., : 90 B 21334 and
Debtors. : 90 B 21335 (HS)
: (Jointly Administered)
:
- --------------------------------------X
MODIFICATION OF DEBTORS' PLAN OF REORGANIZATION
Pursuant to Section 1127 of Title 11 of the United States Code and
Rule 3019 of the Federal Rules of Bankruptcy Procedure, Lone Star Industries,
Inc. ("Lone Star"), on its own behalf and on behalf of the other
above-captioned debtors-in-possession (together with Lone Star, collectively,
the "Debtors") by its attorneys, Proskauer Rose Goetz & Mendelsohn, submits the
following modification to the Debtors' Modified Amended Consolidated Plan of
Reorganization, dated November 4, 1993 (the "Plan"):
1. Section 1.15 of the Plan is amended by inserting following after
the phrase "payable in semi-annual installments":
which interest shall accrue beginning March 1, 1994
2. Section 1.38 of the Plan is amended by deleting "January 31, 1994"
and replacing it with "March 31, 1994".
<PAGE> 2
3. Section 1.66 of the Plan is deleted in its entirety and is
replaced with the following:
"Reorganized Lone Star Warrants" shall mean the warrants to purchase
4,003,333 shares of New Lone Star Common Stock pursuant to the Warrant
Agreement exercisable until December 31, 2000 at a price of $18.75 per
share, which warrants shall not be redeemable by Reorganized Lone
Star.
4. Section 1.76 of the Plan is amended by (i) deleting
"$75,000,000" and replacing it with "$78,000,000", and (ii) inserting the
following after the phrase "semi-annually in cash":
which interest shall accrue beginning February 1, 1994
5. Section 1.81 is hereby amended to insert "and the Equity
Committee" after the phrase "Official Committee of Unsecured Creditors" and
such Agreement shall be modified to provide for standard anti-dilution
provisions.
6. Section 3.3 of the Plan is deleted in its entirety and is
replaced with the following:
All final applications for Professional Fees for services rendered in
connection with the Reorganization Cases and this Plan prior to the
Confirmation Date shall be filed by March 31, 1994. Payments
respecting Professional Fee holdbacks and final Professional Fee
applications shall be made from the Professional Fee Reserve within
five (5) days following the Bankruptcy Court's authorization thereof.
All professional fees for services rendered in connection with the
Reorganization Cases and the Plan after the Confirmation Date,
including those relating to the resolution of Disputed Claims, shall
be paid by the Debtors without further Bankruptcy Court authorization.
2
<PAGE> 3
7. Section 5.2.1(a)(ii) of the Plan is amended by deleting
"$6,471,000" and replacing it with "$6,574,000".
8. Section 5.2.2(a)(ii) of the Plan is amended by deleting
"$68,529,000" and replacing it with "$71,426,000".
9. Section 5.4(a)(i) of the Plan is amended by deleting
"2,083,333" and replacing it with "2,753,333".
10. Section 5.5 of the Plan is deleted in its entirety and
replaced with the following:
Class 7 (Rescission and Damage Claims Respecting Common Stock).
Each holder of an Allowed Unsecured Claim in Class 7 shall retain
all proceeds derived from any litigation instituted by any such
holder or on his or their behalf payable by any entity other than
the Debtors but shall receive no distribution under this Plan from
the Debtors or Reorganized Debtors, except as specifically
provided for in the Confirmation Order or other order of this
Court.
11. Section 6.15(ii)(a) of the Plan shall be amended by inserting
the following language after "(a) any individuals":
(to the extent that such individuals were not members of the Debtors'
Board of Directors as of February 16, 1994)
12. The word "or" at the end of clause (ii)(b) of Section 6.15 of
the Plan is deleted. The period at the end of Section 6.15 of the Plan is
deleted and replaced with a comma and the following language is inserted
thereafter:
or, (d) any claims asserted or assertable by the United States of
America or its agencies in connection with the Debtors and their
operations on or prior to the Effective Date.
3
<PAGE> 4
13. Section 6.5 of the Plan is amended by (i) deleting "3,333,333"
and replacing it with "4,003,333", (ii) inserting the following at the end
thereof:
Lone Star will use its best efforts to have the Reorganized Lone
Star Warrants listed on a national securities exchange.
14. Section 9.3 of the Plan is amended by deleting "$577,000,000"
and replacing it with "$571,500,000".
15. Section 11.1 of the Plan is deleted in its entirety and is
replaced with the following:
Termination of Committees. Each Committee shall dissolve and all
powers of each such committee shall terminate as follows: (a) with
respect to the Official Committee of Equity Security Holders, on the
later of (i) the Effective Date, or (ii) the date on which an order is
entered respecting final Professional Fee applications filed pursuant
to Section 3.3 of this Plan; provided, however, Professional Fees of
all Professionals of the Official Committee of Equity Security Holders
for the period between the Confirmation Date and the date of
dissolution of such committee shall not exceed $25,000 in the
aggregate excluding the time expended in connection with the Warrant
Agreement and preparing final fee applications; (b) with respect to
the Official Committee of Retired Employees, as set forth in the
"Order (i) Reconfirming the Appointment of the Retiree Committee as
the Authorized Representative for All Pre- and Post-Petition Salaried
Retirees for Certain Purposes, (ii) Authorizing the Debtors to Enter
Into a Settlement Agreement With the Retiree Committee, and (iii)
4
<PAGE> 5
Approving the Terms of Such Settlement Agreement"; and (c) with respect to
the Official Committee of Unsecured Creditors, on the Final Reserve Surplus
Distribution Date.
Dated: New York, New York
February 17, 1994
PROSKAUER ROSE GOETZ & MENDELSOHN
Attorneys for the Debtors and
Debtors-in-Possession
1585 Broadway
New York, New York 10036
By:
---------------------------
Alan B. Hyman (AH-6655)
A Member of the Firm
5
