EXHIBIT 4.10
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HERITAGE PROPANE PARTNERS, L.P.
as Issuer
and
HERITAGE OPERATING, L.P.
and
HERITAGE SERVICE CORP.
and
HERITAGE-BI STATE, L.L.C.
and
HERITAGE ENERGY RESOURCES, L.L.C.
as Subsidiary Guarantors
and
[ ]
as Trustee
---------------------------------
Indenture
Dated as of _________________, 2003
---------------------------------
Subordinated Debt Securities
================================================================================
HERITAGE PROPANE PARTNERS, L.P.
RECONCILIATION AND TIE BETWEEN TRUST INDENTURE ACT OF 1939
AND INDENTURE, DATED AS OF _____________, 2003
Section of
Trust Indenture Section(s) of
Act of 1939 Indenture
----------- ---------
Section 310 (a)(1)....................................................................... 7.10
(a)(2)....................................................................... 7.10
(a)(3)....................................................................... Not Applicable
(a)(4)....................................................................... Not Applicable
(a)(5)....................................................................... 7.10
(b).......................................................................... 7.08, 7.10
Section 311 (a).......................................................................... 7.11
(b).......................................................................... 7.11
(c).......................................................................... Not Applicable
Section 312 (a).......................................................................... 2.07
(b).......................................................................... 12.03
(c).......................................................................... 12.03
Section 313 (a).......................................................................... 7.06
(b).......................................................................... 7.06
(c).......................................................................... 7.06
(d).......................................................................... 7.06
Section 314 (a).......................................................................... 4.03, 4.04
(b).......................................................................... Not Applicable
(c)(1)....................................................................... 12.04
(c)(2)....................................................................... 12.04
(c)(3)....................................................................... Not Applicable
(d).......................................................................... Not Applicable
(e).......................................................................... 12.05
Section 315 (a).......................................................................... 7.01(b)
(b).......................................................................... 7.05
(c).......................................................................... 7.01(a)
(d).......................................................................... 7.01(c)
(d)(1)....................................................................... 7.01(c)(1)
(d)(2)....................................................................... 7.01(c)(2)
(d)(3)....................................................................... 7.01(c)(3)
(e).......................................................................... 6.11
Section 316 (a)(1)(A).................................................................... 6.05
(a)(1)(B).................................................................... 6.04
(a)(2)....................................................................... Not Applicable
(a)(last sentence)........................................................... 2.11
(b).......................................................................... 6.07
Section 317 (a)(1)....................................................................... 6.08
(a)(2)....................................................................... 6.09
(b).......................................................................... 2.06
Section 318 (a).......................................................................... 12.01
- ------------
Note: This reconciliation and tie shall not, for any purpose, be deemed to be a
part of the Indenture.
i
TABLE OF CONTENTS
PAGE
----
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE............................................................. 1
SECTION 1.01 Definitions........................................................................... 1
SECTION 1.02 Other Definitions..................................................................... 6
SECTION 1.03 Incorporation by Reference of Trust Indenture Act..................................... 7
SECTION 1.04 Rules of Construction................................................................. 7
SECTION 1.05 Non-Recourse to the General Partner; No Personal Liability of Officers, Directors,
Employees or Partners................................................................. 7
ARTICLE II THE SECURITIES........................................................................................ 8
SECTION 2.01 Amount Unlimited; Issuable in Series.................................................. 8
SECTION 2.02 Denominations......................................................................... 11
SECTION 2.03 Forms Generally....................................................................... 11
SECTION 2.04 Execution, Authentication, Delivery and Dating........................................ 11
SECTION 2.05 Registrar and Paying Agent............................................................ 13
SECTION 2.06 Paying Agent to Hold Money in Trust................................................... 14
SECTION 2.07 Holder Lists.......................................................................... 14
SECTION 2.08 Transfer and Exchange................................................................. 14
SECTION 2.09 Replacement Securities................................................................ 15
SECTION 2.10 Outstanding Securities................................................................ 15
SECTION 2.11 Original Issue Discount, Foreign-Currency Denominated and Treasury Securities......... 16
SECTION 2.12 Temporary Securities.................................................................. 16
SECTION 2.13 Cancellation.......................................................................... 16
SECTION 2.14 Payments; Defaulted Interest.......................................................... 17
SECTION 2.15 Persons Deemed Owners................................................................. 17
SECTION 2.16 Computation of Interest............................................................... 17
SECTION 2.17 Global Securities; Book-Entry Provisions.............................................. 18
ARTICLE III REDEMPTION........................................................................................... 20
SECTION 3.01 Applicability of Article.............................................................. 20
SECTION 3.02 Notice to the Trustee................................................................. 20
SECTION 3.03 Selection of Securities To Be Redeemed................................................ 20
SECTION 3.04 Notice of Redemption.................................................................. 21
SECTION 3.05 Effect of Notice of Redemption........................................................ 21
SECTION 3.06 Deposit of Redemption Price........................................................... 22
SECTION 3.07 Securities Redeemed or Purchased in Part.............................................. 22
SECTION 3.08 Purchase of Securities................................................................ 22
SECTION 3.09 Mandatory and Optional Sinking Funds.................................................. 22
SECTION 3.10 Satisfaction of Sinking Fund Payments with Securities................................. 23
SECTION 3.11 Redemption of Securities for Sinking Fund............................................. 23
ii
ARTICLE IV COVENANTS............................................................................................. 24
SECTION 4.01 Payment of Securities................................................................. 24
SECTION 4.02 Maintenance of Office or Agency....................................................... 24
SECTION 4.03 SEC Reports; Financial Statements..................................................... 25
SECTION 4.04 Compliance Certificate................................................................ 25
SECTION 4.05 Existence............................................................................. 26
SECTION 4.06 Waiver of Stay, Extension or Usury Laws............................................... 26
SECTION 4.07 Additional Amounts.................................................................... 26
ARTICLE V SUCCESSORS............................................................................................. 26
SECTION 5.01 Limitations on Mergers and Consolidations............................................. 26
SECTION 5.02 Successor Person Substituted.......................................................... 27
ARTICLE VI DEFAULTS AND REMEDIES................................................................................. 27
SECTION 6.01 Events of Default..................................................................... 27
SECTION 6.02 Acceleration.......................................................................... 30
SECTION 6.03 Other Remedies........................................................................ 30
SECTION 6.04 Waiver of Defaults.................................................................... 31
SECTION 6.05 Control by Majority................................................................... 31
SECTION 6.06 Limitations on Suits.................................................................. 31
SECTION 6.07 Rights of Holders to Receive Payment.................................................. 32
SECTION 6.08 Collection Suit by Trustee............................................................ 32
SECTION 6.09 Trustee May File Proofs of Claim...................................................... 32
SECTION 6.10 Priorities............................................................................ 33
SECTION 6.11 Undertaking for Costs................................................................. 34
ARTICLE VII TRUSTEE.............................................................................................. 34
SECTION 7.01 Duties of Trustee..................................................................... 34
SECTION 7.02 Rights of Trustee..................................................................... 35
SECTION 7.03 May Hold Securities................................................................... 36
SECTION 7.04 Trustee's Disclaimer.................................................................. 36
SECTION 7.05 Notice of Defaults.................................................................... 36
SECTION 7.06 Reports by Trustee to Holders......................................................... 37
SECTION 7.07 Compensation and Indemnity............................................................ 37
SECTION 7.08 Replacement of Trustee................................................................ 38
SECTION 7.09 Successor Trustee by Merger, etc...................................................... 39
SECTION 7.10 Eligibility; Disqualification......................................................... 40
SECTION 7.11 Preferential Collection of Claims Against the Partnership or a Subsidiary Guarantor... 40
ARTICLE VIII DISCHARGE OF INDENTURE.............................................................................. 40
SECTION 8.01 Termination of the Partnership's and the Subsidiary Guarantors' Obligations........... 40
SECTION 8.02 Application of Trust Money............................................................ 44
SECTION 8.03 Repayment to Partnership or Subsidiary Guarantor...................................... 44
iii
SECTION 8.04 Reinstatement......................................................................... 45
ARTICLE IX SUPPLEMENTAL INDENTURES AND AMENDMENTS................................................................ 45
SECTION 9.01 Without Consent of Holders............................................................ 45
SECTION 9.02 With Consent of Holders............................................................... 46
SECTION 9.03 Compliance with Trust Indenture Act................................................... 48
SECTION 9.04 Revocation and Effect of Consents..................................................... 48
SECTION 9.05 Notation on or Exchange of Securities................................................. 49
SECTION 9.06 Trustee to Sign Amendments, etc....................................................... 49
ARTICLE X SUBORDINATION OF SECURITIES AND GUARANTEE.............................................................. 50
SECTION 10.01 Applicability of Article; Agreement To Subordinate.................................... 50
SECTION 10.02 Liquidation, Dissolution, Bankruptcy.................................................. 50
SECTION 10.03 Default on Senior Indebtedness........................................................ 50
SECTION 10.04 Acceleration of Payment of Securities................................................. 51
SECTION 10.05 When Distribution Must Be Paid Over................................................... 52
SECTION 10.06 Subrogation........................................................................... 52
SECTION 10.07 Relative Rights....................................................................... 52
SECTION 10.08 Subordination May Not Be Impaired by Partnership...................................... 52
SECTION 10.09 Rights of Trustee and Paying Agent.................................................... 52
SECTION 10.10 Distribution or Notice to Representative.............................................. 53
SECTION 10.11 Article X Not to Prevent Defaults or Limit Right to Accelerate........................ 53
SECTION 10.12 Trust Moneys Not Subordinated......................................................... 53
SECTION 10.13 Trustee Entitled to Rely.............................................................. 53
SECTION 10.14 Trustee to Effectuate Subordination................................................... 54
SECTION 10.15 Trustee Not Fiduciary for Holders of Senior Indebtedness.............................. 54
SECTION 10.16 Reliance by Holders of Senior Indebtedness on Subordination Provisions................ 54
ARTICLE XI GUARANTEE ............................................................................................ 54
SECTION 11.01 Unconditional Guarantee............................................................... 54
SECTION 11.02 Execution and Delivery of Guarantee................................................... 56
SECTION 11.03 Limitation on Liability of the Subsidiary Guarantors.................................. 57
SECTION 11.04 Release of Subsidiary Guarantors from Guarantee....................................... 57
SECTION 11.05 Contribution.......................................................................... 58
ARTICLE XII MISCELLANEOUS ....................................................................................... 58
SECTION 12.01 Trust Indenture Act Controls.......................................................... 58
SECTION 12.02 Notices............................................................................... 58
SECTION 12.03 Communication by Holders with Other Holders........................................... 59
SECTION 12.04 Certificate and Opinion as to Conditions Precedent.................................... 59
SECTION 12.05 Statements Required in Certificate or Opinion......................................... 60
SECTION 12.06 Rules by Trustee and Agents........................................................... 60
SECTION 12.07 Legal Holidays........................................................................ 60
SECTION 12.08 No Recourse Against Others............................................................ 60
SECTION 12.09 Governing Law......................................................................... 60
iv
SECTION 12.10 No Adverse Interpretation of Other Agreements......................................... 61
SECTION 12.11 Successors............................................................................ 61
SECTION 12.12 Severability.......................................................................... 61
SECTION 12.13 Counterpart Originals................................................................. 61
SECTION 12.14 Table of Contents, Headings, etc...................................................... 61
v
INDENTURE dated as of _____________, 2003 among Heritage
Propane Partners, L.P., a Delaware limited partnership (the "Partnership"),
Heritage Operating, L.P., a Delaware limited partnership, Heritage Service
Corp., a Delaware corporation, Heritage-Bi State, L.L.C., a Delaware limited
liability company and Heritage Energy Resources, L.L.C., an Oklahoma limited
liability company (collectively, the "Subsidiary Guarantors"), and [ ], a
___________, as trustee (the "Trustee").
The Partnership and the Subsidiary Guarantors have duly
authorized the execution and delivery of this Indenture to provide for the
issuance from time to time of the Partnership's debentures, notes, bonds or
other evidences of indebtedness to be issued in one or more series unlimited as
to principal amount (herein called the "Securities"), and the Guarantee by each
of the Subsidiary Guarantors of the Securities, as in this Indenture provided.
The Partnership and the Subsidiary Guarantors are members of
the same consolidated group of companies. The Subsidiary Guarantors will derive
direct and indirect economic benefit from the issuance of the Securities.
Accordingly, each Subsidiary Guarantor has duly authorized the execution and
delivery of this Indenture to provide for its full, unconditional and joint and
several guarantee of the Securities to the extent provided in or pursuant to
this Indenture.
All things necessary to make this Indenture a valid agreement
of the Partnership, in accordance with its terms, have been done.
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01 Definitions.
"Additional Amounts" means any additional amounts required by
the express terms of a Security or by or pursuant to a Board Resolution, under
circumstances specified therein or pursuant thereto, to be paid by the
Partnership or any Subsidiary Guarantor, as the case may be, with respect to
certain taxes, assessments or other governmental charges imposed on certain
Holders and that are owing to such Holders.
"Affiliate" of any specified Person means any other Person
directly or indirectly controlling or controlled by, or under direct or indirect
common control with, such specified Person. For purposes of this definition,
"control" of a Person shall mean the power to direct the management and policies
of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise, and the terms "controlling" and
"controlled" shall have meanings correlative to the foregoing.
"Agent" means any Registrar or Paying Agent.
"Bankruptcy Law" means Title 11 of the United States Code or
any similar federal, state or foreign law for the relief of debtors.
"Board of Directors," means the Board of Directors of U.S.
Propane, L.L.C., the general partner of the General Partner or any authorized
committee of the Board of Directors of
1
U.S. Propane, L.L.C. or any directors and/or officers of U.S. Propane, L.L.C. to
whom such Board of Directors or such committee shall have duly delegated its
authority to act hereunder.
"Board Resolution" means a copy of a resolution certified by
the Secretary or an Assistant Secretary of the U.S. Propane, L.L.C. to have been
duly adopted by the Board of Directors of U.S. Propane, L.L.C. and to be in full
force and effect on the date of such certification, and delivered to the
Trustee.
"Business Day" means any day that is not a Legal Holiday.
"Corporate Trust Office of the Trustee" means the office of
the Trustee located at ________________________________, Attention:
____________________, and as may be located at such other address as the Trustee
may give notice to the Partnership and the Subsidiary Guarantors.
"Debt" of any Person at any date means any obligation created
or assumed by such Person for the repayment of borrowed money and any guarantee
thereof.
"Default" means any event, act or condition that is, or after
notice or the passage of time or both would be, an Event of Default.
"Depositary" means, with respect to the Securities of any
series issuable or issued in whole or in part in global form, the Person
specified pursuant to Section 2.01 hereof as the initial Depositary with respect
to the Securities of such series, until a successor shall have been appointed
and become such pursuant to the applicable provision of this Indenture, and
thereafter "Depositary" shall mean or include such successor.
"Designated Senior Indebtedness" means (i) any Senior
Indebtedness which, at the date of determination, has an aggregate principal
amount outstanding of, or under which, at the date of determination, the holders
thereof are committed to lend up to, at least $100 million and (ii) any other
Senior Indebtedness designated, as provided in Section 2.01, in respect of any
series of Securities.
"Dollar" or "$" means a dollar or other equivalent unit in
such coin or currency of the United States as at the time shall be legal tender
for the payment of public and private debt.
"Exchange Act" means the Securities Exchange Act of 1934, as
amended, and any successor statute.
"GAAP" means generally accepted accounting principles in the
United States set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board or in
such other statements by such other entity as may be approved by a significant
segment of the accounting profession of the United States, as in effect from
time to time.
"General Partner" means U.S. Propane, L.P., a Delaware limited
partnership.
2
"Global Security" means a Security that is issued in global
form in the name of the Depositary with respect thereto or its nominee.
"Government Obligations" means, with respect to a series of
Securities, direct obligations of the government that issues the currency in
which the Securities of the series are payable for the payment of which the full
faith and credit of such government is pledged, or obligations of a Person
controlled or supervised by and acting as an agency or instrumentality of such
government, the payment of which is unconditionally guaranteed as a full faith
and credit obligation by such government.
"Guarantee" shall mean the guarantee of the Partnership's
obligations under the Securities by a Subsidiary Guarantor as provided in
Article XI.
"Holder" means a Person in whose name a Security is
registered.
"Indenture" means this Indenture as amended or supplemented
from time to time pursuant to the provisions hereof, and includes the terms of a
particular series of Securities established as contemplated by Section 2.01.
"interest" means, with respect to an Original Issue Discount
Security that by its terms bears interest only after Maturity, interest payable
after Maturity.
"Interest Payment Date," when used with respect to any
Security, shall have the meaning assigned to such term in the Security as
contemplated by Section 2.01.
"Issue Date" means, with respect to Securities of a series,
the date on which the Securities of such series are originally issued under this
Indenture.
"Legal Holiday" means a Saturday, a Sunday or a day on which
banking institutions in any of The City of New York, New York or a Place of
Payment are authorized or obligated by law, regulation or executive order to
remain closed.
"Maturity" means, with respect to any Security, the date on
which the principal of such Security or an installment of principal becomes due
and payable as therein or herein provided, whether at the Stated Maturity
thereof, or by declaration of acceleration, call for redemption or otherwise.
"Officer" means the Chairman of the Board, the President, any
Vice Chairman of the Board, any Vice President, the Chief Financial Officer, the
Treasurer, any Assistant Treasurer, the Controller, the Secretary or any
Assistant Secretary of a Person.
"Officers' Certificate" means a certificate signed by two
Officers of a Person.
"Opinion of Counsel" means a written opinion from legal
counsel who is acceptable to the Trustee. Such counsel may be an employee of or
counsel to the Partnership, a Subsidiary Guarantor or the Trustee.
3
"Original Issue Discount Security" means any Security that
provides for an amount less than the principal amount thereof to be due and
payable upon a declaration of acceleration of the Maturity thereof pursuant to
Section 6.02.
"Partnership" means the Person named as the "Partnership" in
the first paragraph of this instrument until a successor Person shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter "Partnership" shall mean such successor Person; provided, however,
that for purposes of any provision contained herein which is required by the
TIA, "Partnership" shall also mean each other obligor (if any), other than a
Subsidiary Guarantor, on the Securities of a series.
"Partnership Order" and "Partnership Request" mean,
respectively, a written order or request signed in the name of the Partnership
or each Subsidiary Guarantor by two Officers of U.S. Propane, L.L.C. and
delivered to the Trustee.
"Person" means any individual, corporation, partnership,
limited liability company, joint venture, incorporated or unincorporated
association, joint stock company, trust, unincorporated organization or
government or other agency, instrumentality or political subdivision thereof or
other entity of any kind.
"Place of Payment" means, with respect to the Securities of
any series, the place or places where the principal of, premium (if any) and
interest on and any Additional Amounts with respect to the Securities of that
series are payable as specified in accordance with Section 2.01 subject to the
provisions of Section 4.02.
"principal" of a Security means the principal of the Security
plus, when appropriate, the premium, if any, on the Security.
"Redemption Date" means, with respect to any Security to be
redeemed, the date fixed for such redemption by or pursuant to this Indenture.
"Redemption Price" means, with respect to any Security to be
redeemed, the price at which it is to be redeemed pursuant to this Indenture.
"Representative" means the trustee, agent or representative
(if any) for an issue of Senior Indebtedness.
"Responsible Officer" means any officer within the corporate
trust department of the Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other
officer of the Trustee who customarily performs functions similar to those
performed by the Persons who at the time shall be such officers, respectively,
or to whom any corporate trust matter is referred because of such person's
knowledge of and familiarity with the particular subject and who shall have
direct responsibility for the administration of this Indenture.
"Rule 144A Securities" means Securities of a series designated
pursuant to Section 2.01 as entitled to the benefits of Section 4.03(b).
4
"SEC" means the Securities and Exchange Commission.
"Securities" has the meaning stated in the preamble of this
Indenture and more particularly means any Securities authenticated and delivered
under this Indenture.
"Security Custodian" means, with respect to Securities of a
series issued in global form, the Trustee for Securities of such series, as
custodian with respect to the Securities of such series, or any successor entity
thereto.
"Senior Indebtedness," unless otherwise provided with respect
to the Securities of a series as contemplated by Section 2.01, means (1) all
Debt of the Subsidiary Guarantors or the Partnership, whether currently
outstanding or hereafter issued, unless, by the terms of the instrument creating
or evidencing such Debt, it is provided that such Debt is not superior in right
of payment to the Securities, in the case of the Partnership, or the Guarantee,
in the case of the Subsidiary Guarantors, or to other Debt which is pari passu
with or subordinated to the Securities, in the case of the Partnership, or the
Guarantee, in the case of the Subsidiary Guarantors, and (2) any modifications,
refunding, deferrals, renewals, or extensions of any such Debt or securities,
notes or other evidence of Debt issued in exchange for such Debt; provided that
in no event shall "Senior Indebtedness" include (a) Debt evidenced by the
Securities or any Guarantee, (b) Debt of any of the Subsidiary Guarantors or the
Partnership owed or owing to any Subsidiary of the Partnership, (c) Debt of any
of the Subsidiary Guarantors owed or owing to the Partnership, (d) Debt to trade
creditors, (e) any liability for taxes owed or owing by the Subsidiary
Guarantors or the Partnership or (f) Debt of any Subsidiary Guarantor in the
event there is no series of Securities outstanding that is entitled to the
benefits of a Guarantee.
"Stated Maturity" means, when used with respect to any
Security or any installment of principal thereof or interest thereon, the date
specified in such Security as the fixed date on which the principal of such
Security or such installment of principal or interest is due and payable.
"Subsidiary" of any Person means:
(1) any corporation, association or other business entity
of which more than 50% of the total voting power of
equity interests entitled, without regard to the
occurrence of any contingency, to vote in the
election of directors, managers, trustees or
equivalent Persons thereof is at the time of
determination owned or controlled, directly or
indirectly, by such Person or one or more of the
other Subsidiaries of such Person or combination
thereof; or
(2) in the case of a partnership, more than 50% of the
partners' equity interests, considering all partners'
equity interests as a single class, is at such time
of determination owned or controlled, directly or
indirectly, by such Person or one or more of the
other Subsidiaries of such Person or combination
thereof.
"Subsidiary Guarantors" means the Person or Persons named as
the "Subsidiary Guarantors" in the first paragraph of this instrument until a
successor Person or Persons shall
5
have become such pursuant to the applicable provisions of this Indenture, and
thereafter "Subsidiary Guarantors" shall mean such successor Person or Persons,
and any other Subsidiary of the Partnership who may execute this Indenture, or a
supplement thereto, for the purpose of providing a Guarantee of Securities
pursuant to this Indenture.
"TIA" means the Trust Indenture Act of 1939, as amended, as in
effect on the date hereof.
"Trustee" means the Person named as such above until a
successor replaces it in accordance with the applicable provisions of this
Indenture, and thereafter "Trustee" means each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, "Trustee" as
used with respect to the Securities of any series means the Trustee with respect
to Securities of that series.
"United States" means the United States of America (including
the States and the District of Columbia) and its territories and possessions,
which include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake
Island and the Northern Mariana Islands.
"U.S. Government Obligations" means Government Obligations
with respect to Securities payable in Dollars.
"U.S. Propane, L.L.C." means U.S. Propane, L.L.C., a Delaware
limited liability company.
SECTION 1.02 Other Definitions.
DEFINED
TERM IN SECTION
- ---- ----------
"Bankruptcy Custodian"....................................................................... 6.01
"Conversion Event"........................................................................... 6.01
"covenant defeasance"........................................................................ 8.01
"Event of Default"........................................................................... 6.01
"Exchange Rate".............................................................................. 2.11
"Funding Guarantor".......................................................................... 11.05
"Judgment Currency".......................................................................... 6.10
"legal defeasance"........................................................................... 8.01
"mandatory sinking fund payment"............................................................. 3.09
"optional sinking fund payment".............................................................. 3.09
"Paying Agent"............................................................................... 2.05
"Registrar".................................................................................. 2.05
"Required Currency".......................................................................... 6.10
"Successor".................................................................................. 5.01
"Subordinated Securities".................................................................... 10.01
6
SECTION 1.03 Incorporation by Reference of Trust Indenture Act.
Whenever this Indenture refers to a provision of the TIA, the
provision is incorporated by reference in and made a part of this Indenture (and
if the Indenture is not qualified under the TIA at that time, as if it were so
qualified unless otherwise provided). The following TIA terms used in this
Indenture have the following meanings:
"Commission" means the SEC.
"indenture securities" means the Securities.
"indenture security holder" means a Holder.
"indenture to be qualified" means this Indenture.
"indenture trustee" or "institutional trustee" means the
Trustee.
"obligor" on the indenture securities means the Partnership,
any Subsidiary Guarantor or any other obligor on the Securities.
All terms used in this Indenture that are defined by the TIA,
defined by a TIA reference to another statute or defined by an SEC rule under
the TIA have the meanings so assigned to them.
SECTION 1.04 Rules of Construction.
Unless the context otherwise requires:
(1) a term has the meaning assigned to it;
(2) an accounting term not otherwise defined has the
meaning assigned to it in accordance with GAAP;
(3) "or" is not exclusive;
(4) words in the singular include the plural, and in the
plural include the singular;
(5) provisions apply to successive events and
transactions; and
(6) all references in this instrument to Articles and
Sections are references to the corresponding Articles
and Sections in and of this instrument.
SECTION 1.05 Non-Recourse to the General Partner; No Personal Liability of
Officers, Directors, Employees or Partners.
Obligations of the Partnership and a Subsidiary Guarantor
under this Indenture and the Securities hereunder are non-recourse to the
General Partner, and its respective Affiliates (other than the Partnership and a
Subsidiary Guarantor), and payable only out of cash flow and
7
assets of the Partnership and a Subsidiary Guarantor. The Trustee, and each
Holder of a Security by its acceptance thereof, will be deemed to have agreed in
this Indenture that (1) neither the General Partner nor its assets (nor any of
its respective Affiliates other than the Partnership and a Subsidiary Guarantor,
nor its respective assets) shall be liable for any of the obligations of the
Partnership and a Subsidiary Guarantor under this Indenture or such Securities,
and (2) no director, officer, employee, partner or unitholder, as such, of the
Partnership and a Subsidiary Guarantor, the Trustee, the General Partner or any
Affiliate of any of the foregoing entities shall have any personal liability in
respect of the obligations of the Partnership and a Subsidiary Guarantor under
this Indenture or such Securities by reason of his, her or its status.
ARTICLE II
THE SECURITIES
SECTION 2.01 Amount Unlimited; Issuable in Series.
The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series. There
shall be established in or pursuant to a Board Resolution, and set forth, or
determined in the manner provided, in an Officers' Certificate of U.S. Propane,
L.L.C. or in a Partnership Order, or established in one or more indentures
supplemental hereto, prior to the issuance of Securities of any series:
(1) the title of the Securities of the series (which
shall distinguish the Securities of the series from the Securities of
all other series);
(2) if there is to be a limit, the limit upon the
aggregate principal amount of the Securities of the series that may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Securities of the series pursuant to
Section 2.08, 2.09, 2.12, 2.17, 3.07 or 9.05 and except for any
Securities which, pursuant to Section 2.04 or 2.17, are deemed never to
have been authenticated and delivered hereunder); provided, however,
that unless otherwise provided in the terms of the series, the
authorized aggregate principal amount of such series may be increased
before or after the issuance of any Securities of the series by a Board
Resolution (or action pursuant to a Board Resolution) to such effect;
(3) whether any Securities of the series are to be
issuable initially in temporary global form and whether any Securities
of the series are to be issuable in permanent global form, as Global
Securities or otherwise, and, if so, whether beneficial owners of
interests in any such Global Security may exchange such interests for
Securities of such series and of like tenor of any authorized form and
denomination and the circumstances under which any such exchanges may
occur, if other than in the manner provided in Section 2.17, and the
initial Depositary and Security Custodian, if any, for any Global
Security or Securities of such series;
8
(4) the manner in which any interest payable on a
temporary Global Security on any Interest Payment Date will be paid if
other than in the manner provided in Section 2.14;
(5) the date or dates on which the principal of and
premium (if any) on the Securities of the series is payable or the
method of determination thereof;
(6) the rate or rates, or the method of determination
thereof, at which the Securities of the series shall bear interest, if
any, whether and under what circumstances Additional Amounts with
respect to such Securities shall be payable, the date or dates from
which such interest shall accrue, the Interest Payment Dates on which
such interest shall be payable and the record date for the interest
payable on any Securities on any Interest Payment Date, or if other
than provided herein, the Person to whom any interest on Securities of
the series shall be payable;
(7) the place or places where, subject to the provisions
of Section 4.02, the principal of, premium (if any) and interest on and
any Additional Amounts with respect to the Securities of the series
shall be payable;
(8) the period or periods within which, the price or
prices (whether denominated in cash, securities or otherwise) at which
and the terms and conditions upon which Securities of the series may be
redeemed, in whole or in part, at the option of the Partnership, if the
Partnership is to have that option, and the manner in which the
Partnership must exercise any such option, if different from those set
forth herein;
(9) whether Securities of the series are entitled to the
benefits of any Guarantee of any Subsidiary Guarantor pursuant to this
Indenture;
(10) the obligation, if any, of the Partnership to redeem,
purchase or repay Securities of the series pursuant to any sinking fund
or analogous provisions or at the option of a Holder thereof and the
period or periods within which, the price or prices (whether
denominated in cash, securities or otherwise) at which and the terms
and conditions upon which Securities of the series shall be redeemed,
purchased or repaid in whole or in part pursuant to such obligation;
(11) if other than denominations of $1,000 and any
integral multiple thereof, the denomination in which any Securities of
that series shall be issuable;
(12) if other than Dollars, the currency or currencies
(including composite currencies) or the form, including equity
securities, other debt securities (including Securities), warrants or
any other securities or property of the Partnership, any Subsidiary
Guarantor or any other Person, in which payment of the principal of,
premium (if any) and interest on and any Additional Amounts with
respect to the Securities of the series shall be payable;
(13) if the principal of, premium (if any) or interest on
or any Additional Amounts with respect to the Securities of the series
are to be payable, at the election of the Partnership or a Holder
thereof, in a currency or currencies (including composite
9
currencies) other than that in which the Securities are stated to be
payable, the currency or currencies (including composite currencies) in
which payment of the principal of, premium (if any) and interest on and
any Additional Amounts with respect to Securities of such series as to
which such election is made shall be payable, and the periods within
which and the terms and conditions upon which such election is to be
made;
(14) if the amount of payments of principal of, premium
(if any) and interest on and any Additional Amounts with respect to the
Securities of the series may be determined with reference to any
commodities, currencies or indices, values, rates or prices or any
other index or formula, the manner in which such amounts shall be
determined;
(15) if other than the entire principal amount thereof,
the portion of the principal amount of Securities of the series that
shall be payable upon declaration of acceleration of the Maturity
thereof pursuant to Section 6.02;
(16) any additional means of satisfaction and discharge of
this Indenture and any additional conditions or limitations to
discharge with respect to Securities of the series and the related
Guarantees pursuant to Article VIII or any modifications of or
deletions from such conditions or limitations;
(17) any deletions or modifications of or additions to the
Events of Default set forth in Section 6.01 or covenants of the
Partnership or any Subsidiary Guarantor set forth in Article IV
pertaining to the Securities of the series;
(18) any restrictions or other provisions with respect to
the transfer or exchange of Securities of the series, which may amend,
supplement, modify or supersede those contained in this Article II;
(19) if the Securities of the series are to be convertible
into or exchangeable for capital stock, other debt securities
(including Securities), warrants, other equity securities or any other
securities or property of the Partnership, any Subsidiary Guarantor or
any other Person, at the option of the Partnership or the Holder or
upon the occurrence of any condition or event, the terms and conditions
for such conversion or exchange;
(20) the subordination, if any, of the Securities of the
series pursuant to Article X and any changes or additions to Article X
or designation of any Designated Senior Indebtedness;
(21) whether the Securities of the series are to be
entitled to the benefit of Section 4.03(b) (and accordingly constitute
Rule 144A Securities); and
(22) any other terms of the series (which terms shall not
be prohibited by the provisions of this Indenture).
All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in
or pursuant to the Board Resolution referred to above and (subject to Section
2.03) set forth, or determined in the manner provided,
10
in the Officers' Certificate or Partnership Order referred to above or in any
such indenture supplemental hereto.
If any of the terms of the series are established by action
taken pursuant to a Board Resolution, a copy of an appropriate record of such
action, together with such Board Resolution, shall be set forth in an Officers'
Certificate or certified by the Secretary or an Assistant Secretary of U.S.
Propane, L.L.C. and delivered to the Trustee at or prior to the delivery of the
Officers' Certificate or Partnership Order setting forth the terms of the
series.
SECTION 2.02 Denominations.
The Securities of each series shall be issuable in such
denominations as shall be specified as contemplated by Section 2.01. In the
absence of any such provisions with respect to the Securities of any series, the
Securities of such series denominated in Dollars shall be issuable in
denominations of $1,000 and any integral multiples thereof.
SECTION 2.03 Forms Generally.
The Securities of each series shall be in fully registered
form and in substantially such form or forms (including temporary or permanent
global form) established by or pursuant to a Board Resolution or in one or more
indentures supplemental hereto. The Securities may have notations, legends or
endorsements required by law, securities exchange rule, the Partnership's
certificate of limited partnership, agreement of limited partnership or other
similar governing documents, agreements to which the Partnership is subject, if
any, or usage (provided that any such notation, legend or endorsement is in a
form acceptable to the Partnership). A copy of the Board Resolution establishing
the form or forms of Securities of any series shall be delivered to the Trustee
at or prior to the delivery of the Partnership Order contemplated by Section
2.04 for the authentication and delivery of such Securities.
The definitive Securities of each series shall be printed,
lithographed or engraved on steel engraved borders or may be produced in any
other manner, all as determined by the Officers executing such Securities, as
evidenced by their execution thereof.
The Trustee's certificate of authentication shall be in
substantially the following form:
"This is one of the Securities of the series designated
therein referred to in the within-mentioned Indenture.
[ ], as Trustee
By: __________________________
Authorized Signatory".
SECTION 2.04 Execution, Authentication, Delivery and Dating.
Two Officers of U.S. Propane, L.L.C. shall sign the Securities
on behalf of the Partnership and, with respect to the Guarantees of the
Securities, two Officers of U.S. Propane,
11
L.L.C. shall sign the Securities on behalf of such Subsidiary Guarantor, in each
case by manual or facsimile signature.
If an Officer of U.S. Propane, L.L.C. whose signature is on a
Security no longer holds that office at the time the Security is authenticated,
the Security shall be valid nevertheless.
A Security shall not be entitled to any benefit under this
Indenture or the related Guarantees or be valid or obligatory for any purpose
until authenticated by the manual signature of an authorized signatory of the
Trustee, which signature shall be conclusive evidence that the Security has been
authenticated under this Indenture. Notwithstanding the foregoing, if any
Security has been authenticated and delivered hereunder but never issued and
sold by the Partnership, and the Partnership delivers such Security to the
Trustee for cancellation as provided in Section 2.13, together with a written
statement (which need not comply with Section 12.05 and need not be accompanied
by an Opinion of Counsel) stating that such Security has never been issued and
sold by the Partnership, for all purposes of this Indenture such Security shall
be deemed never to have been authenticated and delivered hereunder and shall
never be entitled to the benefits of this Indenture or the related Guarantees.
At any time and from time to time after the execution and
delivery of this Indenture, the Partnership may deliver Securities of any series
executed by the Partnership and each Subsidiary Guarantor to the Trustee for
authentication, and the Trustee shall authenticate and deliver such Securities
for original issue upon a Partnership Order for the authentication and delivery
of such Securities or pursuant to such procedures acceptable to the Trustee as
may be specified from time to time by Partnership Order. Such order shall
specify the amount of the Securities to be authenticated, the date on which the
original issue of Securities is to be authenticated, the name or names of the
initial Holder or Holders and any other terms of the Securities of such series
not otherwise determined. If provided for in such procedures, such Partnership
Order may authorize (1) authentication and delivery of Securities of such series
for original issue from time to time, with certain terms (including, without
limitation, the Maturity dates or dates, original issue date or dates and
interest rate or rates) that differ from Security to Security and (2) may
authorize authentication and delivery pursuant to oral or electronic
instructions from the Partnership or its duly authorized agent, which
instructions shall be promptly confirmed in writing.
If the form or terms of the Securities of the series have been
established in or pursuant to one or more Board Resolutions as permitted by
Section 2.01, in authenticating such Securities, and accepting the additional
responsibilities under this Indenture in relation to such Securities, the
Trustee shall be entitled to receive (in addition to the Partnership Order
referred to above and the other documents required by Section 12.04), and
(subject to Section 7.01) shall be fully protected in relying upon:
(a) an Officers' Certificate setting forth the Board
Resolution and, if applicable, an appropriate record of any action
taken pursuant thereto, as contemplated by the last paragraph of
Section 2.01; and
(b) an Opinion of Counsel to the effect that:
12
(i) the form of such Securities has been
established in conformity with the provisions of this
Indenture;
(ii) the terms of such Securities have been
established in conformity with the provisions of this
Indenture; and
(iii) that, when authenticated and delivered by
the Trustee and issued by the Partnership in the manner and
subject to any conditions specified in such Opinion of
Counsel, such Securities and the related Guarantees will
constitute valid and binding obligations of the Partnership
and the Subsidiary Guarantors, respectively, enforceable
against the Partnership and the Subsidiary Guarantors,
respectively, in accordance with their respective terms,
except as the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance or other similar laws in effect from
time to time affecting the rights of creditors generally, and
the application of general principles of equity (regardless of
whether such enforceability is considered in a proceeding in
equity or at law).
If all the Securities of any series are not to be issued at
one time, it shall not be necessary to deliver an Officers' Certificate and
Opinion of Counsel at the time of issuance of each such Security, but such
Officers' Certificate and Opinion of Counsel shall be delivered at or before the
time of issuance of the first Security of the series to be issued.
The Trustee shall not be required to authenticate such
Securities if the issuance of such Securities pursuant to this Indenture would
affect the Trustee's own rights, duties or immunities under the Securities and
this Indenture or otherwise in a manner not reasonably acceptable to the
Trustee.
The Trustee may appoint an authenticating agent acceptable to
the Partnership to authenticate Securities. Unless limited by the terms of such
appointment, 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 Partnership, any Subsidiary Guarantor
or an Affiliate of the Partnership or any Subsidiary Guarantor.
Each Security shall be dated the date of its authentication.
SECTION 2.05 Registrar and Paying Agent.
The Partnership shall maintain an office or agency for each
series of Securities where Securities of such series may be presented for
registration of transfer or exchange ("Registrar") and an office or agency where
Securities of such series may be presented for payment ("Paying Agent"). The
Registrar shall keep a register of the Securities of such series and of their
transfer and exchange. The Partnership may appoint one or more co-registrars and
one or more additional paying agents. The term "Registrar" includes any
co-registrar and the term "Paying Agent" includes any additional paying agent.
13
The Partnership shall enter into an appropriate agency
agreement with any Registrar or Paying Agent not a party to this Indenture. The
agreement shall implement the provisions of this Indenture that relate to such
Agent. The Partnership shall notify the Trustee of the name and address of any
Agent not a party to this Indenture. The Partnership may change any Paying Agent
or Registrar without notice to any Holder. If the Partnership fails to appoint
or maintain another entity as Registrar or Paying Agent, the Trustee shall act
as such. The Partnership, any Subsidiary Guarantor or any Subsidiary may act as
Paying Agent or Registrar.
The Partnership initially appoints the Trustee as Registrar
and Paying Agent.
SECTION 2.06 Paying Agent to Hold Money in Trust.
The Partnership shall require each Paying Agent other than the
Trustee to agree in writing that the Paying Agent will hold in trust for the
benefit of Holders or the Trustee all money held by the Paying Agent for the
payment of principal of, premium, if any, or interest on or any Additional
Amounts with respect to Securities and will notify the Trustee of any default by
the Partnership 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 and to account for any funds disbursed. The Partnership at any time may
require a Paying Agent to pay all money held by it to the Trustee and to account
for any funds disbursed. Upon payment over to the Trustee and upon accounting
for any funds disbursed, the Paying Agent (if other than the Partnership, a
Subsidiary Guarantor or a Subsidiary) shall have no further liability for the
money. If the Partnership, a Subsidiary Guarantor or a Subsidiary acts as Paying
Agent, it shall segregate and hold in a separate trust fund for the benefit of
the Holders all money held by it as Paying Agent. Each Paying Agent shall
otherwise comply with TIA Section 317(b).
SECTION 2.07 Holder Lists.
The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Holders and shall otherwise comply with TIA Section 312(a). If the
Trustee is not the Registrar with respect to a series of Securities, the
Partnership shall furnish to the Trustee at least five Business Days before each
Interest Payment Date with respect to such series of Securities, and at such
other times as the Trustee may request in writing, a list in such form and as of
such date as the Trustee may reasonably require of the names and addresses of
Holders of such series, and the Partnership shall otherwise comply with TIA
Section 312(a).
SECTION 2.08 Transfer and Exchange.
Except as set forth in Section 2.17 or as may be provided
pursuant to Section 2.01:
When Securities of any series are presented to the Registrar
with the request to register the transfer of such Securities or to exchange such
Securities for an equal principal amount of Securities of the same series of
like tenor and of other authorized denominations, the Registrar shall register
the transfer or make the exchange as requested if its requirements and the
requirements of this Indenture for such transactions are met; provided, however,
that the Securities presented or surrendered for registration of transfer or
exchange shall be duly
14
endorsed or accompanied by a written instruction of transfer in form reasonably
satisfactory to the Registrar duly executed by the Holder thereof or by his
attorney, duly authorized in writing, on which instruction the Registrar can
rely.
To permit registrations of transfers and exchanges, the
Partnership and the Subsidiary Guarantors shall execute and the Trustee shall
authenticate Securities at the Registrar's written request and submission of the
Securities or Global Securities. No service charge shall be made to a Holder for
any registration of transfer or exchange (except as otherwise expressly
permitted herein), but the Partnership may require payment of a sum sufficient
to cover any transfer tax or similar governmental charge payable in connection
therewith (other than such transfer tax or similar governmental charge payable
upon exchanges pursuant to Section 2.12, 3.07 or 9.05). The Trustee shall
authenticate Securities in accordance with the provisions of Section 2.04.
Notwithstanding any other provisions of this Indenture to the contrary, the
Partnership shall not be required to register the transfer or exchange of (a)
any Security selected for redemption in whole or in part pursuant to Article
III, except the unredeemed portion of any Security being redeemed in part, or
(b) any Security during the period beginning 15 Business Days prior to the
mailing of notice of any offer to repurchase Securities of the series required
pursuant to the terms thereof or of redemption of Securities of a series to be
redeemed and ending at the close of business on the day of mailing.
SECTION 2.09 Replacement Securities.
If any mutilated Security is surrendered to the Trustee, or if
the Holder of a Security claims that the Security has been destroyed, lost or
stolen and the Partnership and the Trustee receive evidence to their
satisfaction of the destruction, loss or theft of such Security, the Partnership
shall issue, and the Subsidiary Guarantors shall execute and the Trustee shall
authenticate a replacement Security of the same series if the Trustee's
requirements are met. If any such mutilated, destroyed, lost or stolen Security
has become or is about to become due and payable, the Partnership in its
discretion may, instead of issuing a new Security, pay such Security. If
required by the Trustee, any Subsidiary Guarantor or the Partnership, such
Holder must furnish an indemnity bond that is sufficient in the judgment of the
Trustee and the Partnership to protect the Partnership, each Subsidiary
Guarantor, the Trustee, any Agent or any authenticating agent from any loss that
any of them may suffer if a Security is replaced. The Partnership and the
Trustee may charge a Holder for their expenses in replacing a Security.
Every replacement Security is an additional obligation of the
Partnership.
SECTION 2.10 Outstanding Securities.
The Securities outstanding at any time are all the Securities
authenticated by the Trustee except for those canceled by it, those delivered to
it for cancellation, those reductions in the interest in a Global Security
effected by the Trustee hereunder and those described in this Section 2.10 as
not outstanding.
If a Security is replaced pursuant to Section 2.09, it ceases
to be outstanding unless the Trustee receives proof satisfactory to it that the
replaced Security is held by a bona fide purchaser.
15
If the principal amount of any Security is considered paid
under Section 4.01, it ceases to be outstanding and interest on it ceases to
accrue.
A Security does not cease to be outstanding because the
Partnership, a Subsidiary Guarantor or an Affiliate of the Partnership or a
Subsidiary Guarantor holds the Security.
SECTION 2.11 Original Issue Discount, Foreign-Currency Denominated and Treasury
Securities.
In determining whether the Holders of the required principal
amount of Securities have concurred in any direction, amendment, supplement,
waiver or consent, (a) the principal amount of an Original Issue Discount
Security shall be the principal amount thereof that would be due and payable as
of the date of such determination upon acceleration of the Maturity thereof
pursuant to Section 6.02, (b) the principal amount of a Security denominated in
a foreign currency shall be the Dollar equivalent, as determined by the
Partnership by reference to the noon buying rate in The City of New York for
cable transfers for such currency, as such rate is certified for customs
purposes by the Federal Reserve Bank of New York (the "Exchange Rate") on the
date of original issuance of such Security, of the principal amount (or, in the
case of an Original Issue Discount Security, the Dollar equivalent, as
determined by the Partnership by reference to the Exchange Rate on the date of
original issuance of such Security, of the amount determined as provided in (a)
above), of such Security and (c) Securities owned by the Partnership, a
Subsidiary Guarantor or any other obligor upon the Securities or any Affiliate
of the Partnership, of a Subsidiary Guarantor or of such other obligor shall be
disregarded, except that, for the purpose of determining whether the Trustee
shall be protected in relying upon any such direction, amendment, supplement,
waiver or consent, only Securities that a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded.
SECTION 2.12 Temporary Securities.
Until definitive Securities of any series are ready for
delivery, the Partnership may prepare, and the Subsidiary Guarantors shall
execute and the Trustee shall authenticate temporary Securities. Temporary
Securities shall be substantially in the form of definitive Securities, but may
have variations that the Partnership considers appropriate for temporary
Securities. Without unreasonable delay, the Partnership shall prepare, and the
Subsidiary Guarantors shall execute and the Trustee shall authenticate
definitive Securities in exchange for temporary Securities. Until so exchanged,
the temporary Securities shall in all respects be entitled to the same benefits
under this Indenture as definitive Securities.
SECTION 2.13 Cancellation.
The Partnership or any Subsidiary Guarantor at any time may
deliver Securities to the Trustee for cancellation. The Registrar and the Paying
Agent shall forward to the Trustee any Securities surrendered to them for
registration of transfer, exchange, payment or redemption or for credit against
any sinking fund payment. The Trustee shall cancel all Securities surrendered
for registration of transfer, exchange, payment, redemption, replacement or
cancellation or for credit against any sinking fund. Unless the Partnership
shall direct in writing that canceled Securities be returned to it, after
written notice to the Partnership all canceled
16
Securities held by the Trustee shall be disposed of in accordance with the usual
disposal procedures of the Trustee, and the Trustee shall maintain a record of
their disposal. The Partnership may not issue new Securities to replace
Securities that have been paid or that have been delivered to the Trustee for
cancellation.
SECTION 2.14 Payments; Defaulted Interest.
Unless otherwise provided as contemplated by Section 2.01,
interest (except defaulted interest) on any Security that is payable, and is
punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Persons who are registered Holders of that Security at the close of
business on the record date next preceding such Interest Payment Date, even if
such Securities are canceled after such record date and on or before such
Interest Payment Date. The Holder must surrender a Security to a Paying Agent to
collect principal payments. Unless otherwise provided with respect to the
Securities of any series, the Partnership will pay the principal of, premium (if
any) and interest on and any Additional Amounts with respect to the Securities
in Dollars. Such amounts shall be payable at the offices of the Trustee or any
Paying Agent, provided that at the option of the Partnership, the Partnership
may pay such amounts (1) by wire transfer with respect to Global Securities or
(2) by check payable in such money mailed to a Holder's registered address with
respect to any Securities.
If the Partnership defaults in a payment of interest on the
Securities of any series, the Partnership shall pay the defaulted interest in
any lawful manner plus, to the extent lawful, interest on the defaulted
interest, in each case at the rate provided in the Securities of such series and
in Section 4.01. The Partnership may pay the defaulted interest to the Persons
who are Holders on a subsequent special record date. At least 15 days before any
special record date selected by the Partnership, the Partnership (or the
Trustee, in the name of and at the expense of the Partnership upon 20 days'
prior written notice from the Partnership setting forth such special record date
and the interest amount to be paid) shall mail to Holders a notice that states
the special record date, the related payment date and the amount of such
interest to be paid.
SECTION 2.15 Persons Deemed Owners.
The Partnership, the Subsidiary Guarantors, the Trustee, any
Agent and any authenticating agent may treat the Person in whose name any
Security is registered as the owner of such Security for the purpose of
receiving payments of principal of, premium (if any) or interest on or any
Additional Amounts with respect to such Security and for all other purposes.
None of the Partnership, any Subsidiary Guarantor, the Trustee, any Agent or any
authenticating agent shall be affected by any notice to the contrary.
SECTION 2.16 Computation of Interest.
Except as otherwise specified as contemplated by Section 2.01
for Securities of any series, interest on the Securities of each series shall be
computed on the basis of a year comprising twelve 30-day months.
17
SECTION 2.17 Global Securities; Book-Entry Provisions.
If Securities of a series are issuable in global form as a
Global Security, as contemplated by Section 2.01, then, notwithstanding clause
(11) of Section 2.01 and the provisions of Section 2.02, any such Global
Security shall represent such of the outstanding Securities of such series as
shall be specified therein and may provide that it shall represent the aggregate
amount of outstanding Securities from time to time endorsed thereon and that the
aggregate amount of outstanding Securities represented thereby may from time to
time be reduced or increased, as appropriate, to reflect exchanges, transfers or
redemptions. Any endorsement of a Global Security to reflect the amount, or any
increase or decrease in the amount, of outstanding Securities represented
thereby shall be made by the Trustee (i) in such manner and upon instructions
given by such Person or Persons as shall be specified in such Security or in a
Partnership Order to be delivered to the Trustee pursuant to Section 2.04 or
(ii) otherwise in accordance with written instructions or such other written
form of instructions as is customary for the Depositary for such Security, from
such Depositary or its nominee on behalf of any Person having a beneficial
interest in such Global Security. Subject to the provisions of Section 2.04 and,
if applicable, Section 2.12, the Trustee shall deliver and redeliver any
Security in permanent global form in the manner and upon instructions given by
the Person or Persons specified in such Security or in the applicable
Partnership Order. With respect to the Securities of any series that are
represented by a Global Security, the Partnership and the Subsidiary Guarantors
authorize the execution and delivery by the Trustee of a letter of
representations or other similar agreement or instrument in the form customarily
provided for by the Depositary appointed with respect to such Global Security.
Any Global Security may be deposited with the Depositary or its nominee, or may
remain in the custody of the Trustee or the Security Custodian therefor pursuant
to a FAST Balance Certificate Agreement or similar agreement between the Trustee
and the Depositary. If a Partnership Order has been, or simultaneously is,
delivered, any instructions by the Partnership with respect to endorsement or
delivery or redelivery of a Security in global form shall be in writing but need
not comply with Section 12.05 and need not be accompanied by an Opinion of
Counsel.
Members of, or participants in, the Depositary ("Agent
Members") shall have no rights under this Indenture with respect to any Global
Security held on their behalf by the Depositary, or the Trustee or the Security
Custodian as its custodian, or under such Global Security, and the Depositary
may be treated by the Partnership, any Subsidiary Guarantor, the Trustee or the
Security Custodian and any agent of the Partnership, any Subsidiary Guarantor,
the Trustee or the Security Custodian as the absolute owner of such Global
Security for all purposes whatsoever. Notwithstanding the foregoing, (i) the
registered holder of a Global Security of a series may grant proxies and
otherwise authorize any Person, including Agent Members and Persons that may
hold interests through Agent Members, to take any action that a Holder of
Securities of such series is entitled to take under this Indenture or the
Securities of such series and (ii) nothing herein shall prevent the Partnership,
any Subsidiary Guarantor, the Trustee or the Security Custodian, or any agent of
the Partnership, any Subsidiary Guarantor, the Trustee or the Security
Custodian, from giving effect to any written certification, proxy or other
authorization furnished by the Depositary or shall impair, as between the
Depositary and its Agent Members, the operation of customary practices governing
the exercise of the rights of a beneficial owner of any Security.
18
Notwithstanding Section 2.08, and except as otherwise provided
pursuant to Section 2.01: Transfers of a Global Security shall be limited to
transfers of such Global Security in whole, but not in part, to the Depositary,
its successors or their respective nominees. Interests of beneficial owners in a
Global Security may be transferred in accordance with the rules and procedures
of the Depositary. Securities shall be transferred to all beneficial owners in
exchange for their beneficial interests in a Global Security if, and only if,
either (1) the Depositary notifies the Partnership that it is unwilling or
unable to continue as Depositary for the Global Security and a successor
Depositary is not appointed by the Partnership within 90 days of such notice,
(2) an Event of Default has occurred with respect to such series and is
continuing and the Registrar has received a request from the Depositary to issue
Securities in lieu of all or a portion of the Global Security (in which case the
Partnership shall deliver Securities within 30 days of such request) or (3) the
Partnership determines not to have the Securities represented by a Global
Security.
In connection with any transfer of a portion of the beneficial
interests in a Global Security to beneficial owners pursuant to this Section
2.17, the Registrar shall reflect on its books and records the date and a
decrease in the principal amount of the Global Security in an amount equal to
the principal amount of the beneficial interests in the Global Security to be
transferred, and the Partnership and the Subsidiary Guarantors shall execute,
and the Trustee upon receipt of a Partnership Order for the authentication and
delivery of Securities shall authenticate and deliver, one or more Securities of
the same series of like tenor and amount.
In connection with the transfer of all the beneficial
interests in a Global Security to beneficial owners pursuant to this Section
2.17, the Global Security shall be deemed to be surrendered to the Trustee for
cancellation, and the Partnership and the Subsidiary Guarantors shall execute,
and the Trustee shall authenticate and deliver, to each beneficial owner
identified by the Depositary in exchange for its beneficial interests in the
Global Security, an equal aggregate principal amount of Securities of authorized
denominations.
Neither the Partnership, any Subsidiary Guarantor nor the
Trustee will have any responsibility or liability for any aspect of the records
relating to, or payments made on account of, Securities by the Depositary, or
for maintaining, supervising or reviewing any records of the Depositary relating
to such Securities. Neither the Partnership, any Subsidiary Guarantor nor the
Trustee shall be liable for any delay by the related Global Security Holder or
the Depositary in identifying the beneficial owners, and each such Person may
conclusively rely on, and shall be protected in relying on, instructions from
such Global Security Holder or the Depositary for all purposes (including with
respect to the registration and delivery, and the respective principal amounts,
of the Securities to be issued).
The provisions of the last sentence of the third paragraph of
Section 2.04 shall apply to any Global Security if such Global Security was
never issued and sold by the Partnership and the Partnership or a Subsidiary
Guarantor delivers to the Trustee the Global Security together with written
instructions (which need not comply with Section 12.05 and need not be
accompanied by an Opinion of Counsel) with regard to the cancellation or
reduction in the principal amount of Securities represented thereby, together
with the written statement contemplated by the last sentence of the third
paragraph of Section 2.04.
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Notwithstanding the provisions of Sections 2.03 and 2.14,
unless otherwise specified as contemplated by Section 2.01, payment of principal
of, premium (if any) and interest on and any Additional Amounts with respect to
any Global Security shall be made to the Person or Persons specified therein.
ARTICLE III
REDEMPTION
SECTION 3.01 Applicability of Article.
Securities of any series that are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 2.01 for Securities of any
series) in accordance with this Article III.
SECTION 3.02 Notice to the Trustee.
If the Partnership elects to redeem Securities of any series
pursuant to this Indenture, it shall notify the Trustee of the Redemption Date
and the principal amount of Securities of such series to be redeemed. The
Partnership shall so notify the Trustee at least 45 days before the Redemption
Date (unless a shorter notice shall be satisfactory to the Trustee) by
delivering to the Trustee an Officers' Certificate stating that such redemption
will comply with the provisions of this Indenture and of the Securities of such
series. Any such notice may be canceled at any time prior to the mailing of such
notice of such redemption to any Holder and shall thereupon be void and of no
effect.
SECTION 3.03 Selection of Securities To Be Redeemed.
If less than all the Securities of any series are to be
redeemed (unless all of the Securities of such series of a specified tenor are
to be redeemed), the particular Securities to be redeemed shall be selected not
more than 60 days prior to the Redemption Date by the Trustee from the
outstanding Securities of such series (and tenor) not previously called for
redemption, either pro rata, by lot or by such other method as the Trustee shall
deem fair and appropriate and that may provide for the selection for redemption
of portions (equal to the minimum authorized denomination for Securities of that
series or any integral multiple thereof) of the principal amount of Securities
of such series of a denomination larger than the minimum authorized denomination
for Securities of that series or of the principal amount of Global Securities of
such series.
The Trustee shall promptly notify the Partnership and the
Registrar in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof
to be redeemed.
For purposes of this Indenture, unless the context otherwise
requires, all provisions relating to redemption of Securities shall relate, in
the case of any of the Securities redeemed or to be redeemed only in part, to
the portion of the principal amount thereof which has been or is to be redeemed.
20
SECTION 3.04 Notice of Redemption.
Notice of redemption shall be given by first-class mail,
postage prepaid, mailed not less than 30 nor more than 60 days prior to the
Redemption Date, to each Holder of Securities to be redeemed, at the address of
such Holder appearing in the register of Securities maintained by the Registrar.
All notices of redemption shall identify the Securities to be
redeemed and shall state:
(1) the Redemption Date;
(2) the Redemption Price;
(3) that, unless the Partnership and the Subsidiary
Guarantors default in making the redemption payment, interest on
Securities called for redemption ceases to accrue on and after the
Redemption Date, and the only remaining right of the Holders of such
Securities is to receive payment of the Redemption Price upon surrender
to the Paying Agent of the Securities redeemed;
(4) if any Security is to be redeemed in part, the
portion of the principal amount thereof to be redeemed and that on and
after the Redemption Date, upon surrender for cancellation of such
Security to the Paying Agent, a new Security or Securities in the
aggregate principal amount equal to the unredeemed portion thereof will
be issued without charge to the Holder;
(5) that Securities called for redemption must be
surrendered to the Paying Agent to collect the Redemption Price and the
name and address of the Paying Agent;
(6) that the redemption is for a sinking or analogous
fund, if such is the case; and
(7) the CUSIP number, if any, relating to such
Securities.
Notice of redemption of Securities to be redeemed at the
election of the Partnership shall be given by the Partnership or, at the
Partnership's written request, by the Trustee in the name and at the expense of
the Partnership.
SECTION 3.05 Effect of Notice of Redemption.
Once notice of redemption is mailed, Securities called for
redemption become due and payable on the Redemption Date and at the Redemption
Price. Upon surrender to the Paying Agent, such Securities called for redemption
shall be paid at the Redemption Price, but interest installments whose maturity
is on or prior to such Redemption Date will be payable on the relevant Interest
Payment Dates to the Holders of record at the close of business on the relevant
record dates specified pursuant to Section 2.01.
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SECTION 3.06 Deposit of Redemption Price.
On or prior to 11:00 a.m., New York City time, on any
Redemption Date, the Partnership or a Subsidiary Guarantor shall deposit with
the Trustee or the Paying Agent (or, if the Partnership or such Subsidiary
Guarantor is acting as the Paying Agent, segregate and hold in trust as provided
in Section 2.06) an amount of money in same day funds sufficient to pay the
Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on and any Additional Amounts with respect to,
the Securities or portions thereof which are to be redeemed on that date, other
than Securities or portions thereof called for redemption on that date which
have been delivered by the Partnership or a Subsidiary Guarantor to the Trustee
for cancellation.
If the Partnership or a Subsidiary Guarantor complies with the
preceding paragraph, then, unless the Partnership and the Subsidiary Guarantors
default in the payment of such Redemption Price, interest on the Securities to
be redeemed will cease to accrue on and after the applicable Redemption Date,
whether or not such Securities are presented for payment, and the Holders of
such Securities shall have no further rights with respect to such Securities
except for the right to receive the Redemption Price upon surrender of such
Securities. If any Security called for redemption shall not be so paid upon
surrender thereof for redemption, the principal, premium, if any, any Additional
Amounts, and, to the extent lawful, accrued interest thereon shall, until paid,
bear interest from the Redemption Date at the rate specified pursuant to Section
2.01 or provided in the Securities or, in the case of Original Issue Discount
Securities, such Securities' yield to maturity.
SECTION 3.07 Securities Redeemed or Purchased in Part.
Upon surrender to the Paying Agent of a Security to be
redeemed in part, the Partnership and the Subsidiary Guarantors shall execute
and the Trustee shall authenticate and deliver to the Holder of such Security
without service charge a new Security or Securities, of the same series and of
any authorized denomination as requested by such Holder in aggregate principal
amount equal to, and in exchange for, the unredeemed portion of the principal of
the Security so surrendered that is not redeemed.
SECTION 3.08 Purchase of Securities.
Unless otherwise specified as contemplated by Section 2.01,
the Partnership, any Subsidiary Guarantor and any Affiliate of the Partnership
or any Subsidiary Guarantor may, subject to applicable law, at any time purchase
or otherwise acquire Securities in the open market or by private agreement. Any
such acquisition shall not operate as or be deemed for any purpose to be a
redemption of the indebtedness represented by such Securities. Any Securities
purchased or acquired by the Partnership or a Subsidiary Guarantor may be
delivered to the Trustee and, upon such delivery, the indebtedness represented
thereby shall be deemed to be satisfied. Section 2.13 shall apply to all
Securities so delivered.
SECTION 3.09 Mandatory and Optional Sinking Funds.
The minimum amount of any sinking fund payment provided for by
the terms of Securities of any series is herein referred to as a "mandatory
sinking fund payment," and any
22
payment in excess of such minimum amount provided for by the terms of Securities
of any series is herein referred to as an "optional sinking fund payment."
Unless otherwise provided by the terms of Securities of any series, the cash
amount of any sinking fund payment may be subject to reduction as provided in
Section 3.10. Each sinking fund payment shall be applied to the redemption of
Securities of any series as provided for by the terms of Securities of such
series and by this Article III.
SECTION 3.10 Satisfaction of Sinking Fund Payments with Securities.
The Partnership or a Subsidiary Guarantor may deliver
outstanding Securities of a series (other than any previously called for
redemption) and may apply as a credit Securities of a series that have been
redeemed either at the election of the Partnership pursuant to the terms of such
Securities or through the application of permitted optional sinking fund
payments pursuant to the terms of such Securities, in each case in satisfaction
of all or any part of any sinking fund payment with respect to the Securities of
such series required to be made pursuant to the terms of such series of
Securities; provided that such Securities have not been previously so credited.
Such Securities shall be received and credited for such purpose by the Trustee
at the Redemption Price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall
be reduced accordingly.
SECTION 3.11 Redemption of Securities for Sinking Fund.
Not less than 45 days prior (unless a shorter period shall be
satisfactory to the Trustee) to each sinking fund payment date for any series of
Securities, the Partnership will deliver to the Trustee an Officers' Certificate
specifying the amount of the next ensuing sinking fund payment for that series
pursuant to the terms of that series, the portion thereof, if any, which is to
be satisfied by payment of cash and the portion thereof, if any, which is to be
satisfied by delivery of or by crediting Securities of that series pursuant to
Section 3.10 and will also deliver or cause to be delivered to the Trustee any
Securities to be so delivered. Failure of the Partnership to timely deliver or
cause to be delivered such Officers' Certificate and Securities specified in
this paragraph, if any, shall not constitute a default but shall constitute the
election of the Partnership (i) that the mandatory sinking fund payment for such
series due on the next succeeding sinking fund payment date shall be paid
entirely in cash without the option to deliver or credit Securities of such
series in respect thereof and (ii) that the Partnership will make no optional
sinking fund payment with respect to such series as provided in this Section
3.11.
If the sinking fund payment or payments (mandatory or optional
or both) to be made in cash on the next succeeding sinking fund payment date
plus any unused balance of any preceding sinking fund payments made in cash
shall exceed $100,000 (or the Dollar equivalent thereof based on the applicable
Exchange Rate on the date of original issue of the applicable Securities) or a
lesser sum if the Partnership shall so request with respect to the Securities of
any particular series, such cash shall be applied on the next succeeding sinking
fund payment date to the redemption of Securities of such series at the sinking
fund redemption price together with accrued interest to the date fixed for
redemption. If such amount shall be $100,000 (or the Dollar equivalent thereof
as aforesaid) or less and the Partnership makes no such request then it shall be
carried over until a sum in excess of $100,000 (or the Dollar equivalent thereof
as aforesaid) is available. Not less than 30 days before each such sinking fund
payment date, the
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Trustee shall select the Securities to be redeemed upon such sinking fund
payment date in the manner specified in Section 3.03 and cause notice of the
redemption thereof to be given in the name of and at the expense of the
Partnership in the manner provided in Section 3.04. Such notice having been duly
given, the redemption of such Securities shall be made upon the terms and in the
manner stated in Sections 3.05, 3.06 and 3.07.
ARTICLE IV
COVENANTS
SECTION 4.01 Payment of Securities.
The Partnership shall pay the principal of, premium (if any)
and interest on and any Additional Amounts with respect to the Securities of
each series on the dates and in the manner provided in the Securities of such
series and in this Indenture. Principal, premium, interest and any Additional
Amounts shall be considered paid on the date due if the Paying Agent (other than
the Partnership, a Subsidiary Guarantor or a Subsidiary) holds on that date
money deposited by the Partnership or a Subsidiary Guarantor designated for and
sufficient to pay all principal, premium, interest and any Additional Amounts
then due.
The Partnership shall pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium (if any), at a rate equal to the then applicable interest rate on the
Securities to the extent lawful; and it shall pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and any Additional Amount (without regard to any
applicable grace period) at the same rate to the extent lawful.
SECTION 4.02 Maintenance of Office or Agency.
The Partnership will maintain in each Place of Payment for any
series of Securities an office or agency (which may be an office of the Trustee,
the Registrar or the Paying Agent) where Securities of that series may be
presented for registration of transfer or exchange, where Securities of that
series may be presented for payment and where notices and demands to or upon the
Partnership or a Subsidiary Guarantor in respect of the Securities of that
series and this Indenture may be served. Unless otherwise designated by the
Partnership by written notice to the Trustee and the Subsidiary Guarantors, such
office or agency shall be the office of the Trustee in The City of New York,
which on the date hereof is located at ______________________________. The
Partnership will give prompt written notice to the Trustee and the Subsidiary
Guarantors of the location, and any change in the location, of such office or
agency. If at any time the Partnership shall fail to maintain any such required
office or agency or shall fail to furnish the Trustee and the Subsidiary
Guarantors with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the Trustee.
The Partnership may also from time to time designate one or
more other offices or agencies where the Securities of one or more series may be
presented or surrendered for any or all such purposes and may from time to time
rescind such designations; provided, however, that no such designation or
rescission shall in any manner relieve the Partnership of its obligation to
24
maintain an office or agency in each Place of Payment for Securities of any
series for such purposes. The Partnership 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.
SECTION 4.03 SEC Reports; Financial Statements.
(a) If the Partnership or a Subsidiary Guarantor is
subject to the requirements of Section 13 or 15(d) of the Exchange Act, the
Partnership or such Subsidiary Guarantor, as the case may be, shall file with
the Trustee, within 15 days after it files the same with the SEC, copies of the
annual reports and the information, documents and other reports (or copies of
such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) that the Partnership or such Subsidiary Guarantor is required to file
with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. If this
Indenture is qualified under the TIA, but not otherwise, the Partnership and the
Subsidiary Guarantors shall also comply with the provisions of TIA Section
314(a). Delivery of such reports, information and documents to the Trustee shall
be for informational purposes only, and the Trustee's receipt thereof shall not
constitute constructive notice of any information contained therein or
determinable from information contained therein, including the Partnership's
compliance with any of its covenants hereunder (as to which the Trustee is
entitled to rely exclusively on Officers' Certificates or certificates delivered
pursuant to Section 4.04).
(b) If neither the Partnership nor any Subsidiary
Guarantor is subject to the requirements of Section 13 or 15(d) of the Exchange
Act, the Partnership and the Subsidiary Guarantors shall furnish to all Holders
of Rule 144A Securities and prospective purchasers of Rule 144A Securities
designated by the Holders of Rule 144A Securities, promptly upon their request,
the information required to be delivered pursuant to Rule 144A(d)(4) promulgated
under the Securities Act of 1933, as amended.
SECTION 4.04 Compliance Certificate.
(a) Each of the Partnership and the Subsidiary Guarantors
shall deliver to the Trustee, within 120 days after the end of each fiscal year,
a statement signed by an Officer of U.S. Propane, L.L.C., which need not
constitute an Officers' Certificate, complying with TIA Section 314(a)(4) and
stating that in the course of performance by the signing Officer of his duties
as such Officer of U.S. Propane, L.L.C., he would normally obtain knowledge of
the keeping, observing, performing and fulfilling by the Partnership or such
Subsidiary Guarantor, as the case may be, of its obligations under this
Indenture, and further stating that to the best of his knowledge the Partnership
or such Subsidiary Guarantor, as the case may be, has kept, observed, performed
and fulfilled each and every covenant contained in this Indenture and is not in
default in the performance or observance of any of the terms, provisions and
conditions hereof (or, if a Default or Event of Default shall have occurred,
describing all such Defaults or Events of Default of which such Officer may have
knowledge and what action the Partnership or such Subsidiary Guarantor, as the
case may be, is taking or proposes to take with respect thereto).
(b) The Partnership or any Subsidiary Guarantor shall, so
long as Securities of any series are outstanding, deliver to the Trustee,
forthwith upon any Officer of U.S. Propane, L.L.C., becoming aware of any
Default or Event of Default under this Indenture, an Officers'
25
Certificate specifying such Default or Event of Default and what action the
Partnership or such Subsidiary Guarantor, as the case may be, is taking or
proposes to take with respect thereto.
SECTION 4.05 Existence.
Subject to Article V, each of the Partnership and the
Subsidiary Guarantors shall do or cause to be done all things necessary to
preserve and keep in full force and effect its existence.
SECTION 4.06 Waiver of Stay, Extension or Usury Laws.
Each of the Partnership and the Subsidiary Guarantors
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
that would prohibit or forgive it 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) each of the Partnership and the Subsidiary Guarantors hereby
expressly waives all benefit or 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 will suffer and permit the execution of every such power as
though no such law had been enacted.
SECTION 4.07 Additional Amounts.
If the Securities of a series expressly provide for the
payment of Additional Amounts, the Partnership will pay to the Holder of any
Security of such series Additional Amounts as expressly provided therein.
Whenever in this Indenture there is mentioned, in any context, the payment of
the principal of or any premium or interest on, or in respect of, any Security
of any series or the net proceeds received from the sale or exchange of any
Security of any series, such mention shall be deemed to include mention of the
payment of Additional Amounts provided for in this Section 4.07 to the extent
that, in such context, Additional Amounts are, were or would be payable in
respect thereof pursuant to the provisions of this Section 4.07 and express
mention of the payment of Additional Amounts (if applicable) in any provisions
hereof shall not be construed as excluding Additional Amounts in those
provisions hereof where such express mention is not made.
ARTICLE V
SUCCESSORS
SECTION 5.01 Limitations on Mergers and Consolidations.
Neither the Partnership nor any Subsidiary Guarantor shall, in
any transaction or series of transactions, consolidate with or merge into any
Person, or sell, lease, convey, transfer or otherwise dispose of all or
substantially all of its assets to any Person (other than a consolidation or
merger of the Partnership and a Subsidiary Guarantor or of the Subsidiary
Guarantors, or a sale, lease, conveyance, transfer or other disposition of all
or substantially all of the assets of the Partnership to a Subsidiary Guarantor,
a Subsidiary Guarantor to the Partnership or of a Subsidiary Guarantor to
another Subsidiary Guarantor), unless:
26
(1) either (a) the Partnership or such Subsidiary
Guarantor, as the case may be, shall be the continuing Person or (b)
the Person (if other than the Partnership or such Subsidiary Guarantor)
formed by such consolidation or into which the Partnership or such
Subsidiary Guarantor is merged, or to which such sale, lease,
conveyance, transfer or other disposition shall be made (collectively,
the "Successor"), is organized and validly existing under the laws of
the United States, any political subdivision thereof or any State
thereof or the District of Columbia, and expressly assumes by
supplemental indenture, in the case of the Partnership, the due and
punctual payment of the principal of, premium (if any) and interest on
and any Additional Amounts with respect to all the Securities and the
performance of the Partnership's covenants and obligations under this
Indenture and the Securities, or, in the case of such Subsidiary
Guarantor, the performance of the Guarantee and such Subsidiary
Guarantor's covenants and obligations under this Indenture and the
Securities;
(2) immediately after giving effect to such transaction
or series of transactions, no Default or Event of Default shall have
occurred and be continuing or would result therefrom; and
(3) the Partnership or such Subsidiary Guarantor, as the
case may be, delivers to the Trustee an Officers' Certificate and an
Opinion of Counsel, each stating that the transaction and such
supplemental indenture comply with this Indenture.
SECTION 5.02 Successor Person Substituted.
Upon any consolidation or merger of the Partnership or a
Subsidiary Guarantor, as the case may be, or any sale, lease, conveyance,
transfer or other disposition of all or substantially all of the assets of the
Partnership or such Subsidiary Guarantor in accordance with Section 5.01, the
Successor formed by such consolidation or into or with which the Partnership or
such Subsidiary Guarantor is merged or to which such sale, lease, conveyance,
transfer or other disposition is made shall succeed to, and be substituted for,
and may exercise every right and power of the Partnership or such Subsidiary
Guarantor, as the case may be, under this Indenture and the Securities with the
same effect as if such Successor had been named as the Partnership or such
Subsidiary Guarantor, as the case may be, herein and the predecessor Partnership
or Subsidiary Guarantor, in the case of a sale, conveyance, transfer or other
disposition, shall be released from all obligations under this Indenture, the
Securities and, in the case of a Subsidiary Guarantor, the Guarantee.
ARTICLE VI
DEFAULTS AND REMEDIES
SECTION 6.01 Events of Default.
Unless either inapplicable to a particular series or
specifically deleted or modified in or pursuant to the supplemental indenture or
Board Resolution establishing such series of Securities or in the form of
Security for such series, an "Event of Default," wherever used herein with
respect to Securities of any series, occurs if:
27
(1) there is a default in the payment of
interest on or any Additional Amounts with respect to any Security of
that series when the same becomes due and payable and such default
continues for a period of 30 days;
(2) there is a default in the payment of the
principal of or premium, if any, on any Securities of that series as
and when the same shall become due and payable, whether at Stated
Maturity, upon redemption, by declaration, upon required repurchase or
otherwise;
(3) there is a default in the payment of any
sinking fund payment with respect to any Securities of that series as
and when the same shall become due and payable;
(4) there is a failure on the part of the
Partnership, or if any series of Securities outstanding under this
Indenture is entitled to the benefits of a Guarantee by the Subsidiary
Guarantors, any of the Subsidiary Guarantors, duly to observe or
perform any other of the covenants or agreements on the part of the
Partnership, or if applicable, any of the Subsidiary Guarantors, in the
Securities of that series, in any resolution of the Board of Directors
authorizing the issuance of that series of Securities, in this
Indenture with respect to such series or in any supplemental Indenture
with respect to such series (other than a default in the performance of
a covenant which is specifically dealt with elsewhere in this Section
6.01), continuing for a period of 60 days after the date on which
written notice specifying such failure and requiring the Partnership,
or if applicable, the Subsidiary Guarantors, to remedy the same shall
have been given, by registered or certified mail, to the Partnership,
or if applicable, the Subsidiary Guarantors, by the Trustee or to the
Partnership, or if applicable, the Subsidiary Guarantors, and the
Trustee by the Holders of at least 25% in aggregate principal amount of
the Securities of that series at the time outstanding;
(5) the Partnership, or if any series of
Securities outstanding under this Indenture is entitled to the benefits
of a Guarantee by the Subsidiary Guarantors, any of the Subsidiary
Guarantors, pursuant to or within the meaning of any Bankruptcy Law:
(A) commences a voluntary case,
(B) consents to the entry of an order for relief
against it in an involuntary case,
(C) consents to the appointment of a Bankruptcy
Custodian of it or for all or substantially all of its
property, or
(D) makes a general assignment for the benefit
of its creditors;
(6) a court of competent jurisdiction enters an
order or decree under any Bankruptcy Law that remains unstayed and in
effect for 60 days and that:
(A) is for relief against the Partnership or any
Subsidiary Guarantor as debtor in an involuntary case,
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(B) appoints a Bankruptcy Custodian of the
Partnership or any Subsidiary Guarantor or a Bankruptcy
Custodian for all or substantially all of the property of the
Partnership or any Subsidiary Guarantor, or
(C) orders the liquidation of the Partnership or
any Subsidiary Guarantor;
(7) if any series of Securities outstanding
under this Indenture is entitled to the benefits of a
Guarantee by the Subsidiary Guarantors, any of the Subsidiary
Guarantors ceases to be in full force and effect with respect
to Securities of that series (except as otherwise provided in
this Indenture) or is declared null and void in a judicial
proceeding or any of the Subsidiary Guarantors (if applicable)
denies or disaffirms its obligations under this Indenture or
such Guarantee; or
(8) any other Event of Default provided with
respect to Securities of that series occurs.
The term "Bankruptcy Custodian" means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.
The Trustee shall not be deemed to know or have notice of any
Default or Event of Default unless a Responsible Officer of the Trustee has
actual knowledge thereof or unless written notice of any event which is in fact
such a Default or Event of Default is received by the Trustee at the Corporate
Trust Office of the Trustee, and such notice references the Securities and this
Indenture.
When a Default is cured, it ceases.
Notwithstanding the foregoing provisions of this Section 6.01,
if the principal of, premium (if any) or interest on or Additional Amounts with
respect to any Security is payable in a currency or currencies (including a
composite currency) other than Dollars and such currency or currencies are not
available to the Partnership or a Subsidiary Guarantor for making payment
thereof due to the imposition of exchange controls or other circumstances beyond
the control of the Partnership or such Subsidiary Guarantor (a "Conversion
Event"), each of the Partnership and the Subsidiary Guarantors will be entitled
to satisfy its obligations to Holders of the Securities by making such payment
in Dollars in an amount equal to the Dollar equivalent of the amount payable in
such other currency, as determined by the Partnership or the Subsidiary
Guarantor making such payment, as the case may be, by reference to the Exchange
Rate on the date of such payment, or, if such rate is not then available, on the
basis of the most recently available Exchange Rate. Notwithstanding the
foregoing provisions of this Section 6.01, any payment made under such
circumstances in Dollars where the required payment is in a currency other than
Dollars will not constitute an Event of Default under this Indenture.
Promptly after the occurrence of a Conversion Event, the
Partnership or a Subsidiary Guarantor shall give written notice thereof to the
Trustee; and the Trustee, promptly after receipt of such notice, shall give
notice thereof in the manner provided in Section 12.02 to the Holders. Promptly
after the making of any payment in Dollars as a result of a Conversion
29
Event, the Partnership or the Subsidiary Guarantor making such payment, as the
case may be, shall give notice in the manner provided in Section 12.02 to the
Holders, setting forth the applicable Exchange Rate and describing the
calculation of such payments.
A Default under clause (4) or (8) of this Section 6.01 is not
an Event of Default until the Trustee notifies the Partnership and the
Subsidiary Guarantors, or the Holders of at least 25% in principal amount of the
then outstanding Securities of the series affected by such Default (or, in the
case of a Default under clause (4) of this Section 6.01, if outstanding
Securities of other series are affected by such Default, then at least 25% in
principal amount of the then outstanding Securities so affected) notify the
Partnership, the Subsidiary Guarantors and the Trustee, of the Default, and the
Partnership or the applicable Subsidiary Guarantor, as the case may be, fails to
cure the Default within 60 days after receipt of the notice. The notice must
specify the Default, demand that it be remedied and state that the notice is a
"Notice of Default."
SECTION 6.02 Acceleration.
If an Event of Default with respect to any Securities of any
series at the time outstanding (other than an Event of Default specified in
clause (5) or (6) of Section 6.01) occurs and is continuing, the Trustee by
notice to the Partnership and the Subsidiary Guarantors, or the Holders of at
least 25% in principal amount of the then outstanding Securities of the series
affected by such Event of Default (or, in the case of an Event of Default
described in clause (4) of Section 6.01, if outstanding Securities of other
series are affected by such Event of Default, then at least 25% in principal
amount of the then outstanding Securities so affected) by notice to the
Partnership, the Subsidiary Guarantors and the Trustee, may declare the
principal of (or, if any such Securities are Original Issue Discount Securities,
such portion of the principal amount as may be specified in the terms of that
series) and all accrued and unpaid interest on all then outstanding Securities
of such series or of all series, as the case may be, to be due and payable. Upon
any such declaration, the amounts due and payable on the Securities shall be due
and payable immediately. If an Event of Default specified in clause (5) or (6)
of Section 6.01 hereof occurs, such amounts shall ipso facto become and be
immediately due and payable without any declaration, notice or other act on the
part of the Trustee or any Holder. The Holders of a majority in principal amount
of the then outstanding Securities of the series affected by such Event of
Default or all series, as the case may be, by written notice to the Trustee may
rescind an acceleration and its consequences (other than nonpayment of principal
of or premium or interest on or any Additional Amounts with respect to the
Securities) if the rescission would not conflict with any judgment or decree and
if all existing Events of Default with respect to Securities of that series (or
of all series, as the case may be) have been cured or waived, except nonpayment
of principal, premium, interest or any Additional Amounts that has become due
solely because of the acceleration.
SECTION 6.03 Other Remedies.
If an Event of Default occurs and is continuing, the Trustee
may pursue any available remedy to collect the payment of principal of, or
premium, if any, or interest on the Securities or to enforce the performance of
any provision of the Securities or this Indenture.
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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 Holder in exercising any right or
remedy accruing upon an Event of Default shall not impair the right or remedy or
constitute a waiver of or acquiescence in the Event of Default. All remedies are
cumulative to the extent permitted by law.
SECTION 6.04 Waiver of Defaults.
Subject to Sections 6.07 and 9.02, the Holders of a majority
in principal amount of the then outstanding Securities of any series or of all
series (acting as one class) by notice to the Trustee may waive an existing or
past Default or Event of Default with respect to such series or all series, as
the case may be, and its consequences (including waivers obtained in connection
with a tender offer or exchange offer for Securities of such series or all
series or a solicitation of consents in respect of Securities of such series or
all series, provided that in each case such offer or solicitation is made to all
Holders of then outstanding Securities of such series or all series (but the
terms of such offer or solicitation may vary from series to series)), except (1)
a continuing Default or Event of Default in the payment of the principal of, or
premium, if any, or interest on or any Additional Amounts with respect to any
Security or (2) a continued Default in respect of a provision that under Section
9.02 cannot be amended or supplemented without the consent of each Holder
affected. Upon any such waiver, such Default shall cease to exist, and any Event
of Default arising therefrom shall be deemed to have been cured for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or
other Default or impair any right consequent thereon.
SECTION 6.05 Control by Majority.
With respect to Securities of any series, the Holders of a
majority in principal amount of the then outstanding Securities of such series
may direct in writing 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 relating to or arising under an Event of Default described in
clause (1), (2), (3) or (7) of Section 6.01, and with respect to all Securities,
the Holders of a majority in principal amount of all the then outstanding
Securities affected may direct in writing 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 not relating to or arising under such an
Event of Default. However, the Trustee may refuse to follow any direction that
conflicts with applicable law or this Indenture, that the Trustee determines may
be unduly prejudicial to the rights of other Holders, or that may involve the
Trustee in personal liability; provided, however, that the Trustee may take any
other action deemed proper by the Trustee that is not inconsistent with such
direction. Prior to taking any action hereunder, the Trustee shall be entitled
to indemnification satisfactory to it in its sole discretion from Holders
directing the Trustee against all losses and expenses caused by taking or not
taking such action.
SECTION 6.06 Limitations on Suits.
Subject to Section 6.07 hereof, a Holder of a Security of any
series may pursue a remedy with respect to this Indenture or the Securities of
such series only if:
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(1) the Holder gives to the Trustee written notice of a
continuing Event of Default with respect to such series;
(2) the Holders of at least 25% in principal amount of
the then outstanding Securities of such series make a written request
to the Trustee to pursue the remedy;
(3) such Holder or Holders offer to the Trustee indemnity
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 of that series do not give the
Trustee a direction inconsistent with the request.
A Holder may not use this Indenture to prejudice the rights of
another Holder or to obtain a preference or priority over another Holder.
SECTION 6.07 Rights of Holders to Receive Payment.
Notwithstanding any other provision of this Indenture, the
right of any Holder of a Security to receive payment of principal of and
premium, if any, and interest on and any Additional Amounts with respect to the
Security, on or after the respective due dates expressed in the Security, or to
bring suit for the enforcement of any such payment on or after such respective
dates, is absolute and unconditional and shall not be impaired or affected
without the consent of the Holder.
SECTION 6.08 Collection Suit by Trustee.
If an Event of Default specified in clause (1) or (2) of
Section 6.01 hereof occurs and is continuing, the Trustee is authorized to
recover judgment in its own name and as trustee of an express trust against the
Partnership or a Subsidiary Guarantor for the amount of principal, premium (if
any), interest and any Additional Amounts remaining unpaid on the Securities of
the series affected by the Event of Default, and interest on overdue principal
and premium, if any, and, to the extent lawful, interest on overdue interest,
and such further amount as shall be sufficient to cover the costs and expenses
of collection, including the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel.
SECTION 6.09 Trustee May File Proofs of Claim.
The Trustee is authorized to file such proofs of claim and
other papers or documents and to take such actions, including participating as a
member, voting or otherwise, of any committee of creditors, as may be necessary
or advisable to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel) and the Holders allowed in any judicial proceedings
relative to the Partnership or a Subsidiary Guarantor or their respective
creditors or properties and shall be entitled and empowered to collect, receive
and distribute any money or other property payable
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or deliverable on any such claims and any Bankruptcy Custodian in any such
judicial proceeding is hereby authorized by each Holder to make such payments to
the Trustee, and in the event that the Trustee shall consent to the making of
such payments directly to the Holders, to pay to the Trustee any amount due to
it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.07 out of the estate in any such
proceeding, shall be denied for any reason, payment of the same shall be secured
by a lien on, and shall be paid out of, any and all distributions, dividends,
money, securities and other properties which the Holders of the Securities may
be entitled to receive in such proceeding whether in liquidation or under any
plan of reorganization or arrangement or otherwise. Nothing herein contained
shall be deemed to authorize the Trustee to authorize or consent to or accept or
adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment or composition affecting the Securities or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.
SECTION 6.10 Priorities.
If the Trustee collects any money pursuant to this Article VI,
it shall pay out the money in the following order:
First: to the Trustee for amounts due under Section 7.07;
Second: to Holders for amounts due and unpaid on the
Securities in respect of which or for the benefit of which such money
has been collected, for principal, premium (if any), interest and any
Additional Amounts ratably, without preference or priority of any kind,
according to the amounts due and payable on such Securities for
principal, premium (if any), interest and any Additional Amounts,
respectively; and
Third: to the Partnership.
The Trustee, upon prior written notice to the Partnership, may
fix record dates and payment dates for any payment to Holders pursuant to this
Article VI.
To the fullest extent allowed under applicable law, if for the
purpose of obtaining a judgment against the Partnership or a Subsidiary
Guarantor in any court it is necessary to convert the sum due in respect of the
principal of, premium (if any) or interest on or Additional Amounts with respect
to the Securities of any series (the "Required Currency") into a currency in
which a judgment will be rendered (the "Judgment Currency"), the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the Business Day in The City of New York
next preceding that on which final judgment is given. Neither the Partnership,
any Subsidiary Guarantor nor the Trustee shall be liable for any shortfall nor
shall it benefit from any windfall in payments to Holders of Securities under
this Section 6.10 caused by a change in exchange rates between the time the
amount of a judgment against it is calculated as above and the time the Trustee
converts the Judgment Currency into the Required Currency to
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make payments under this Section 6.10 to Holders of Securities, but payment of
such judgment shall discharge all amounts owed by the Partnership and the
Subsidiary Guarantors on the claim or claims underlying such judgment.
SECTION 6.11 Undertaking for Costs.
In any suit for the enforcement of any right or remedy under
this Indenture or in any suit against the Trustee for any action taken or
omitted by it as a trustee, a court in its discretion may require the filing by
any party litigant in the suit of an undertaking to pay the costs of the suit,
and the court in its discretion may assess reasonable costs, including
reasonable attorneys' fees, against any party litigant in the suit, having due
regard to the merits and good faith of the claims or defenses made by the party
litigant. This Section 6.11 does not apply to a suit by the Trustee, a suit by a
Holder pursuant to Section 6.07, or a suit by a Holder or Holders of more than
10% in principal amount of the then outstanding Securities of any series.
ARTICLE VII
TRUSTEE
SECTION 7.01 Duties of Trustee.
(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 such
exercise, as a prudent person would exercise or use under the circumstances in
the conduct of such person's own affairs.
(b) Except during the continuance of an Event of Default
with respect to the Securities of any series:
(1) the Trustee need perform only those duties that are
specifically set forth in this Indenture and no others, and no implied
covenants or obligations shall be read into this Indenture against the
Trustee; and
(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. However, the Trustee shall examine such certificates
and opinions to determine whether, on their face, they appear to
conform to the requirements of this Indenture.
(c) The Trustee may not be relieved from liabilities 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 Section
7.01(b);
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(2) the Trustee shall not be liable for any error of
judgment made in good faith by a Responsible Officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent
facts; and
(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.
(d) Whether or not therein expressly so provided, every
provision of this Indenture that in any way relates to the Trustee is subject to
the provisions of this Section 7.01.
(e) No provision of this Indenture shall require the
Trustee to expend or risk its own funds or incur any liability. The Trustee may
refuse to perform any duty or exercise any right or power unless it receives
indemnity satisfactory to it against any loss, liability or expense.
(f) The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree in writing with the
Partnership and the Subsidiary Guarantors. Money held in trust by the Trustee
need not be segregated from other funds except to the extent required by law.
All money received by the Trustee shall, until applied as herein provided, be
held in trust for the payment of the principal of, premium (if any) and interest
on and Additional Amounts with respect to the Securities.
SECTION 7.02 Rights of Trustee.
(a) The Trustee may conclusively 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.
(b) Before the Trustee acts or refrains from acting, it
may require instruction, an Officers' Certificate or an Opinion of Counsel or
both to be provided. The Trustee shall not be liable for any action it takes or
omits to take in good faith in reliance on such instruction, Officers'
Certificate or Opinion of Counsel. The Trustee may consult at the Partnership's
expense with counsel of its selection and the advice of such counsel or any
Opinion of Counsel shall be full and complete authorization and protection in
respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.
(c) The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.
(d) The Trustee shall not be liable for any action it
takes or omits to take in good faith which it believes to be authorized or
within its rights or powers conferred upon it by this Indenture.
(e) Unless otherwise specifically provided in this
Indenture, any demand, request, direction or notice from the Partnership or any
Subsidiary Guarantor shall be sufficient if signed by an Officer of U.S. Propane
L.L.C.
35
(f) The Trustee shall not be obligated to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, bond, debenture, note, other evidence of indebtedness or other paper or
document.
(g) The rights, privileges, protections, immunities and
benefits given to the Trustee, including, without limitation, its right to be
indemnified, are extended to, and shall be enforceable by, the Trustee in each
of its capacities hereunder, and each agent, custodian and other Person employed
to act hereunder.
(h) The Trustee may request that the Partnership deliver
an Officers' Certificate setting forth the names of individuals and/or titles of
officers authorized at such time to take specified actions pursuant to this
Indenture, which Officers' Certificate may be signed by any person authorized to
sign an Officers' Certificate, including any person specified as so authorized
in any such certificate previously delivered and not superseded.
SECTION 7.03 May Hold Securities.
The Trustee in its individual or any other capacity may become
the owner or pledgee of Securities and may otherwise deal with the Partnership,
any Subsidiary Guarantor or any of their respective Affiliates with the same
rights it would have if it were not Trustee. Any Agent may do the same with like
rights and duties. However, the Trustee is subject to 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 or the Securities, it shall not be accountable for
the Partnership's use of the proceeds from the Securities or any money paid to
the Partnership or any Subsidiary Guarantor or upon the Partnership's or such
Subsidiary Guarantor's direction under any provision hereof, it shall not be
responsible for the use or application of any money received by any Paying Agent
other than the Trustee and it shall not be responsible for any statement or
recital herein or any statement in the Securities other than its certificate of
authentication.
SECTION 7.05 Notice of Defaults.
If a Default or Event of Default with respect to the
Securities of any series occurs and is continuing and it is known to the
Trustee, the Trustee shall mail to Holders of Securities of such series a notice
of the Default or Event of Default within 90 days after it occurs. Except in the
case of a Default or Event of Default in payment of principal of, premium (if
any) and interest on and Additional Amounts or any sinking fund installment with
respect to the Securities of such series, the Trustee may withhold the notice if
and so long as a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of Holders of Securities of such
series.
36
SECTION 7.06 Reports by Trustee to Holders.
Within 60 days after each September 15 of each year after the
execution of this Indenture, the Trustee shall mail to Holders of a series, the
Subsidiary Guarantors and the Partnership a brief report dated as of such
reporting date that complies with TIA Section 313(a); provided, however, that if
no event described in TIA Section 313(a) has occurred within the twelve months
preceding the reporting date with respect to a series, no report need be
transmitted to Holders of such series. The Trustee also shall comply with TIA
Section 313(b). The Trustee shall also transmit by mail all reports if and as
required by TIA Sections 313(c) and 313(d).
A copy of each report at the time of its mailing to Holders of
a series of Securities shall be filed by the Partnership or a Subsidiary
Guarantor with the SEC and each securities exchange, if any, on which the
Securities of such series are listed. The Partnership shall notify the Trustee
if and when any series of Securities is listed on any securities exchange.
SECTION 7.07 Compensation and Indemnity.
The Partnership agrees to pay to the Trustee for its
acceptance of this Indenture and services hereunder such compensation as the
Partnership and the Trustee shall from time to time agree in writing. The
Trustee's compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Partnership agrees to reimburse the Trustee
upon request for all reasonable disbursements, advances and expenses incurred by
it. Such expenses shall include the reasonable compensation, disbursements and
expenses of the Trustee's agents and counsel.
The Partnership hereby indemnifies the Trustee and any
predecessor Trustee against any and all loss, liability, damage, claim or
expense, including taxes (other than taxes based upon, measured by or determined
by the income of the Trustee), incurred by it arising out of or in connection
with the acceptance or administration of its duties under this Indenture, except
as set forth in the next following paragraph. The Trustee shall notify the
Partnership and the Subsidiary Guarantors promptly of any claim for which it may
seek indemnity. The Partnership shall defend the claim and the Trustee shall
cooperate in the defense. The Trustee may have separate counsel and the
Partnership shall pay the reasonable fees and expenses of such counsel. The
Partnership need not pay for any settlement made without its consent.
The Partnership shall not be obligated to reimburse any
expense or indemnify against any loss or liability incurred by the Trustee
through the Trustee's negligence or bad faith.
To secure the payment obligations of the Partnership in this
Section 7.07, 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 of, premium (if any) and interest on and any Additional Amounts with
respect to Securities of any series. Such lien and the Partnership's obligations
under this Section 7.07 shall survive the satisfaction and discharge of this
Indenture.
When the Trustee incurs expenses or renders services after an
Event of Default specified in Section 6.01(5) or (6) occurs, the expenses and
the compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.
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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 7.08.
The Trustee may resign and be discharged at any time with
respect to the Securities of one or more series by so notifying the Partnership
and the Subsidiary Guarantors. The Holders of a majority in principal amount of
the then outstanding Securities of any series may remove the Trustee with
respect to the Securities of such series by so notifying the Trustee, the
Partnership and the Subsidiary Guarantors. The Partnership 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 or
an order for relief is entered with respect to the Trustee under any
Bankruptcy Law;
(3) a Bankruptcy Custodian or public officer takes charge
of the Trustee or its property; or
(4) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in
the office of Trustee for any reason, with respect to the Securities of one or
more series, the Partnership shall promptly appoint a successor Trustee or
Trustees with respect to the Securities of that or those series (it being
understood that any such successor Trustee may be appointed with respect to the
Securities of one or more or all of such series and that at any time there shall
be only one Trustee with respect to the Securities of any particular series).
Within one year after the successor Trustee with respect to the Securities of
any series takes office, the Holders of a majority in principal amount of the
Securities of such series then outstanding may appoint a successor Trustee to
replace the successor Trustee appointed by the Partnership.
If a successor Trustee with respect to the Securities of any
series does not take office within 30 days after the retiring or removed Trustee
resigns or is removed, the retiring or removed Trustee (at the expense of the
Partnership), the Partnership, any Subsidiary Guarantor or the Holders of at
least 10% in principal amount of the then outstanding Securities of such series
may petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.
If the Trustee with respect to the Securities of a series
fails to comply with Section 7.10, any Holder of Securities of such series may
petition any court of competent jurisdiction for the removal of the Trustee and
the appointment of a successor Trustee with respect to the Securities of such
series.
In case of the appointment of a successor Trustee with respect
to all Securities, each such successor Trustee shall deliver a written
acceptance of its appointment to the retiring Trustee, to the Partnership and to
the Subsidiary Guarantors. Thereupon the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all
38
the rights, powers and duties of the retiring Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Holders. The retiring
Trustee shall promptly transfer all property held by it as Trustee to the
successor Trustee, subject to the lien provided for in Section 7.07.
In case of the appointment of a successor Trustee with respect
to the Securities of one or more (but not all) series, the Partnership, the
Subsidiary Guarantors, the retiring Trustee and each successor Trustee with
respect to the Securities of one or more (but not all) series shall execute and
deliver an indenture supplemental hereto in which each successor Trustee shall
accept such appointment and that (1) shall confer to each successor Trustee all
the rights, powers and duties of the retiring Trustee with respect to the
Securities of that or those series to which the appointment of such successor
Trustee relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall confirm that all the rights, powers and duties of the retiring
Trustee with respect to the Securities of that or those series as to which the
retiring Trustee is not retiring shall continue to be vested in the retiring
Trustee and (3) shall add to or change any of the provisions of this Indenture
as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee. Nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust, and each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee. Upon the execution and delivery of such supplemental indenture,
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and each such successor Trustee shall have all the
rights, powers and duties of the retiring Trustee with respect to the Securities
of that or those series to which the appointment of such successor Trustee
relates. On request of the Partnership or any successor Trustee, such retiring
Trustee shall transfer to such successor Trustee all property held by such
retiring Trustee as Trustee with respect to the Securities of that or those
series to which the appointment of such successor Trustee relates. Such retiring
Trustee shall, however, have the right to deduct its unpaid fees and expenses,
including attorneys' fees.
Notwithstanding replacement of the Trustee or Trustees
pursuant to this Section 7.08, the obligations of the Partnership under Section
7.07 shall continue for the benefit of the retiring Trustee or Trustees.
SECTION 7.09 Successor Trustee by Merger, etc.
Subject to Section 7.10, 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; provided, however, that in the case of a
transfer of all or substantially all of its corporate trust business to another
corporation, the transferee corporation expressly assumes all of the Trustee's
liabilities hereunder.
In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion or
consolidation to such authenticating Trustee may adopt such authentication and
deliver the Securities so authenticated; and in case at that time any of the
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Securities either in the name of any predecessor hereunder or
39
in the name of the successor to the Trustee; and in all such cases such
certificates shall have the full force which it is anywhere in the Securities or
in this Indenture provided that the certificate of the Trustee shall have.
SECTION 7.10 Eligibility; Disqualification.
There shall at all times be a Trustee hereunder which shall be
a corporation or banking association organized and doing business under the laws
of the United States, any State thereof or the District of Columbia and
authorized under such laws to exercise corporate trust power, shall be subject
to supervision or examination by federal or state (or the District of Columbia)
authority and shall have, or be a subsidiary of a bank or bank holding company
having, a combined capital and surplus of at least $50 million as set forth in
its most recent published annual report of condition.
The Indenture shall always have a Trustee who satisfies the
requirements of TIA Sections 310(a)(1), 310(a)(2) and 310(a)(5). The Trustee is
subject to and shall comply with the provisions of TIA Section 310(b) during the
period of time required by this Indenture. Nothing in this Indenture shall
prevent the Trustee from filing with the SEC the application referred to in the
penultimate paragraph of TIA Section 310(b).
SECTION 7.11 Preferential Collection of Claims Against the Partnership or a
Subsidiary Guarantor.
The Trustee is subject to and shall comply with the provisions
of 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 therein.
ARTICLE VIII
DISCHARGE OF INDENTURE
SECTION 8.01 Termination of the Partnership's and the Subsidiary Guarantors'
Obligations.
(a) This Indenture shall cease to be of further effect
with respect to the Securities of a series (except that the Partnership's
obligations under Section 7.07, the Trustee's and Paying Agent's obligations
under Section 8.03 and the rights, powers, protections and privileges accorded
the Trustee under Article VII shall survive), and the Trustee and the Subsidiary
Guarantors, on demand of the Partnership, shall execute proper instruments
acknowledging the satisfaction and discharge of this Indenture with respect to
the Securities of such series, when:
40
(1) either:
(A) all outstanding Securities of such series
theretofore authenticated and issued (other than destroyed,
lost or stolen Securities that have been replaced or paid)
have been delivered to the Trustee for cancellation; or
(B) all outstanding Securities of such series
not theretofore delivered to the Trustee for cancellation:
(i) have become due and payable, or
(ii) will become due and payable at
their Stated Maturity within one
year, or
(iii) are to be called for redemption
within one year under arrangements
satisfactory to the Trustee for the
giving of notice of redemption by
the Trustee in the name, and at the
expense, of the Partnership,
and, in the case of clause (i), (ii) or (iii) above, the
Partnership or a Subsidiary Guarantor has irrevocably
deposited or caused to be deposited with the Trustee as funds
(immediately available to the Holders in the case of clause
(i)) in trust for such purpose (x) cash in an amount, or (y)
Government Obligations, maturing as to principal and interest
at such times and in such amounts as will ensure the
availability of cash in an amount or (z) a combination
thereof, which will be sufficient, in the opinion (in the case
of clauses (y) and (z)) of a nationally recognized firm of
independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and
discharge the entire indebtedness on the Securities of such
series for principal and interest to the date of such deposit
(in the case of Securities which have become due and payable)
or for principal, premium, if any, and interest to the Stated
Maturity or Redemption Date, as the case may be; or
(C) the Partnership and the Subsidiary
Guarantors have properly fulfilled such other means of
satisfaction and discharge as is specified, as contemplated by
Section 2.01, to be applicable to the Securities of such
series;
(2) the Partnership or a Subsidiary Guarantor has paid or
caused to be paid all other sums payable by them hereunder with respect
to the Securities of such series; and
(3) the Partnership has delivered to the Trustee an
Officers' Certificate stating that all conditions precedent to
satisfaction and discharge of this Indenture with respect to the
Securities of such series have been complied with, together with an
Opinion of Counsel to the same effect.
(b) Unless this Section 8.01(b) is specified as not being
applicable to Securities of a series as contemplated by Section 2.01, the
Partnership may, at its option,
41
terminate certain of its and the Subsidiary Guarantors' respective obligations
under this Indenture ("covenant defeasance") with respect to the Securities of a
series if:
(1) the Partnership or a Subsidiary Guarantor has
irrevocably deposited or caused to be irrevocably deposited with the
Trustee as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to
the benefit of the Holders of Securities of such series, (i) money in
the currency in which payment of the Securities of such series is to be
made in an amount, or (ii) Government Obligations with respect to such
series, maturing as to principal and interest at such times and in such
amounts as will ensure the availability of money in the currency in
which payment of the Securities of such series is to be made in an
amount or (iii) a combination thereof, that is sufficient, in the
opinion (in the case of clauses (ii) and (iii)) of a nationally
recognized firm of independent public accountants expressed in a
written certification thereof delivered to the Trustee, to pay the
principal of and premium (if any) and interest on all Securities of
such series on each date that such principal, premium (if any) or
interest is due and payable and (at the Stated Maturity thereof or upon
redemption as provided in Section 8.01(e)) to pay all other sums
payable by it hereunder; provided that the Trustee shall have been
irrevocably instructed to apply such money and/or the proceeds of such
Government Obligations to the payment of said principal, premium (if
any) and interest with respect to the Securities of such series as the
same shall become due;
(2) the Partnership has delivered to the Trustee an
Officers' Certificate stating that all conditions precedent to
satisfaction and discharge of this Indenture with respect to the
Securities of such series have been complied with, and an Opinion of
Counsel to the same effect;
(3) no Default or Event of Default with respect to the
Securities of such series shall have occurred and be continuing on the
date of such deposit;
(4) the Partnership shall have delivered to the Trustee
an Opinion of Counsel from a nationally recognized counsel acceptable
to the Trustee or a tax ruling to the effect that the Holders will not
recognize income, gain or loss for U.S. Federal income tax purposes as
a result of the Partnership's exercise of its option under this Section
8.01(b) and will be subject to U.S. Federal income tax on the same
amount and in the same manner and at the same times as would have been
the case if such option had not been exercised;
(5) the Partnership and the Subsidiary Guarantors have
complied with any additional conditions specified pursuant to Section
2.01 to be applicable to the discharge of Securities of such series
pursuant to this Section 8.01; and
(6) such deposit and discharge shall not cause the
Trustee to have a conflicting interest as defined in TIA Section
310(b).
In such event, this Indenture shall cease to be of further
effect (except as set forth in this paragraph), and the Trustee and the
Subsidiary Guarantors, on demand of the Partnership,
42
shall execute proper instruments acknowledging satisfaction and discharge under
this Indenture. However, the Partnership's and the Subsidiary Guarantors'
respective obligations in Sections 2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02,
7.07, 7.08, 8.04 and 11.01, the Trustee's and Paying Agent's obligations in
Section 8.03 and the rights, powers, protections and privileges accorded the
Trustee under Article VII shall survive until all Securities of such series are
no longer outstanding. Thereafter, only the Partnership's obligations in Section
7.07 and the Trustee's and Paying Agent's obligations in Section 8.03 shall
survive with respect to Securities of such series.
After such irrevocable deposit made pursuant to this Section
8.01(b) and satisfaction of the other conditions set forth herein, the Trustee
upon request shall acknowledge in writing the discharge of the Partnership's and
the Subsidiary Guarantors' obligations under this Indenture with respect to the
Securities of such series except for those surviving obligations specified
above.
In order to have money available on a payment date to pay
principal of or premium (if any) or interest on the Securities, the 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. Government
Obligations shall not be callable at the issuer's option.
(c) If the Partnership and the Subsidiary Guarantors have
previously complied or are concurrently complying with Section 8.01(b) (other
than any additional conditions specified pursuant to Section 2.01 that are
expressly applicable only to covenant defeasance) with respect to Securities of
a series, then, unless this Section 8.01(c) is specified as not being applicable
to Securities of such series as contemplated by Section 2.01, the Partnership
may elect that its and the Subsidiary Guarantors' respective obligations to make
payments with respect to Securities of such series be discharged ("legal
defeasance"), if:
(1) no Default or Event of Default under clauses (5) and
(6) of Section 6.01 hereof shall have occurred at any time during the
period ending on the 91st day after the date of deposit contemplated by
Section 8.01(b) (it being understood that this condition shall not be
deemed satisfied until the expiration of such period);
(2) unless otherwise specified with respect to Securities
of such series as contemplated by Section 2.01, the Partnership has
delivered to the Trustee an Opinion of Counsel from a nationally
recognized counsel acceptable to the Trustee to the effect referred to
in Section 8.01(b)(4) with respect to such legal defeasance, which
opinion is based on (i) a private ruling of the Internal Revenue
Service addressed to the Partnership, (ii) a published ruling of the
Internal Revenue Service pertaining to a comparable form of transaction
or (iii) a change in the applicable federal income tax law (including
regulations) after the date of this Indenture;
(3) the Partnership and the Subsidiary Guarantors have
complied with any other conditions specified pursuant to Section 2.01
to be applicable to the legal defeasance of Securities of such series
pursuant to this Section 8.01(c); and
(4) the Partnership has delivered to the Trustee a
Partnership Request requesting such legal defeasance of the Securities
of such series and an Officers'
43
Certificate stating that all conditions precedent with respect to such
legal defeasance of the Securities of such series have been complied
with, together with an Opinion of Counsel to the same effect.
In such event, the Partnership and the Subsidiary Guarantors
will be discharged from their respective obligations under this Indenture and
the Securities of such series to pay principal of, premium (if any) and interest
on, and any Additional Amounts with respect to, Securities of such series, the
Partnership's and the Subsidiary Guarantors' respective obligations under
Sections 4.01, 4.02 and 11.01 shall terminate with respect to such Securities,
and the entire indebtedness of the Partnership evidenced by such Securities and
of the Subsidiary Guarantors evidenced by the related Guarantees shall be deemed
paid and discharged.
(d) If and to the extent additional or alternative means
of satisfaction, discharge or defeasance of Securities of a series are specified
to be applicable to such series as contemplated by Section 2.01, each of the
Partnership and the Subsidiary Guarantors may terminate any or all of its
obligations under this Indenture with respect to Securities of a series and any
or all of its obligations under the Securities of such series if it fulfills
such other means of satisfaction and discharge as may be so specified, as
contemplated by Section 2.01, to be applicable to the Securities of such series.
(e) If Securities of any series subject to subsections
(a), (b), (c) or (d) of this Section 8.01 are to be redeemed prior to their
Stated Maturity, whether pursuant to any optional redemption provisions or in
accordance with any mandatory or optional sinking fund provisions, the terms of
the applicable trust arrangement shall provide for such redemption, and the
Partnership shall make such arrangements as are reasonably satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and
at the expense, of the Partnership.
SECTION 8.02 Application of Trust Money.
The Trustee or a trustee satisfactory to the Trustee and the
Partnership shall hold in trust money or Government Obligations deposited with
it pursuant to Section 8.01 hereof. It shall apply the deposited money and the
money from Government Obligations through the Paying Agent and in accordance
with this Indenture to the payment of principal of, premium (if any) and
interest on and any Additional Amounts with respect to the Securities of the
series with respect to which the deposit was made.
SECTION 8.03 Repayment to Partnership or Subsidiary Guarantor.
The Trustee and the Paying Agent shall promptly pay to the
Partnership or any Subsidiary Guarantor any excess money or Government
Obligations (or proceeds therefrom) held by them at any time upon the written
request of the Partnership.
Subject to the requirements of any applicable abandoned
property laws, the Trustee and the Paying Agent shall pay to the Partnership
upon written request any money held by them for the payment of principal,
premium (if any), interest or any Additional Amounts that remain unclaimed for
two years after the date upon which such payment shall have become due. After
payment to the Partnership, Holders entitled to the money must look to the
Partnership for payment as general creditors unless an applicable abandoned
property law designates another
44
Person, and all liability of the Trustee and the Paying Agent with respect to
such money shall cease.
SECTION 8.04 Reinstatement.
If the Trustee or the Paying Agent is unable to apply any
money or Government Obligations deposited with respect to Securities of any
series 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
obligations of the Partnership and the Subsidiary Guarantors under this
Indenture with respect to the Securities of such series and under the Securities
of such series shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01 until such time as the Trustee or the Paying Agent is
permitted to apply all such money or Government Obligations in accordance with
Section 8.01; provided, however, that if the Partnership or any Subsidiary
Guarantor has made any payment of principal of, premium (if any) or interest on
or any Additional Amounts with respect to any Securities because of the
reinstatement of its obligations, the Partnership or such Subsidiary Guarantor,
as the case may be, shall be subrogated to the rights of the Holders of such
Securities to receive such payment from the money or Government Obligations held
by the Trustee or the Paying Agent.
ARTICLE IX
SUPPLEMENTAL INDENTURES AND AMENDMENTS
SECTION 9.01 Without Consent of Holders.
The Partnership, the Subsidiary Guarantors and the Trustee may
amend or supplement this Indenture or the Securities or waive any provision
hereof or thereof without the consent of any Holder:
(1) to cure any ambiguity, omission, defect or
inconsistency;
(2) to comply with Section 5.01;
(3) to provide for uncertificated Securities in addition
to or in place of certificated Securities, or to provide for the
issuance of bearer Securities (with or without coupons);
(4) to provide any security for, or to add any guarantees
of or additional obligors on, any series of Securities or the related
Guarantees;
(5) to comply with any requirement in order to effect or
maintain the qualification of this Indenture under the TIA;
(6) to add to the covenants of the Partnership or any
Subsidiary Guarantor for the benefit of the Holders of all or any
series of Securities (and if such covenants are to be for the benefit
of less than all series of Securities, stating that such covenants are
expressly being included solely for the benefit of such series), or to
surrender any right or power herein conferred upon the Partnership or
any Subsidiary Guarantor;
45
(7) to add any additional Events of Default with respect
to all or any series of the Securities (and, if any Event of Default is
applicable to less than all series of Securities, specifying the series
to which such Event of Default is applicable);
(8) to change or eliminate any of the provisions of this
Indenture; provided that any such change or elimination shall become
effective only when there is no outstanding Security of any series
created prior to the execution of such amendment or supplemental
indenture that is adversely affected in any material respect by such
change in or elimination of such provision;
(9) to establish the form or terms of Securities of any
series as permitted by Section 2.01;
(10) to supplement any of the provisions of this Indenture
to such extent as shall be necessary to permit or facilitate the
defeasance and discharge of any series of Securities pursuant to
Section 8.01; provided, however, that any such action shall not
adversely affect the interest of the Holders of Securities of such
series or any other series of Securities in any material respect; or
(11) to evidence and provide for the acceptance of
appointment hereunder by a successor Trustee with respect to the
Securities of one or more series and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or
facilitate the administration of the trusts hereunder by more than one
Trustee, pursuant to the requirements of Section 7.08.
Upon the request of the Partnership, accompanied by a Board
Resolution, and upon receipt by the Trustee of the documents described in
Section 9.06, the Trustee shall, subject to Section 9.06, join with the
Partnership and the Subsidiary Guarantors in the execution of any supplemental
indenture authorized or permitted by the terms of this Indenture and make any
further appropriate agreements and stipulations that may be therein contained.
SECTION 9.02 With Consent of Holders.
Except as provided below in this Section 9.02, the
Partnership, the Subsidiary Guarantors and the Trustee may amend or supplement
this Indenture with the written consent (including consents obtained in
connection with a tender offer or exchange offer for Securities of any one or
more series or all series or a solicitation of consents in respect of Securities
of any one or more series or all series, provided that in each case such offer
or solicitation is made to all Holders of then outstanding Securities of each
such series (but the terms of such offer or solicitation may vary from series to
series)) of the Holders of at least a majority in principal amount of the then
outstanding Securities of all series affected by such amendment or supplement
(acting as one class).
Upon the request of the Partnership, accompanied by a Board
Resolution, and upon the filing with the Trustee of evidence of the consent of
the Holders as aforesaid, and upon receipt by the Trustee of the documents
described in Section 9.06, the Trustee shall, subject to Section 9.06, join with
the Partnership and the Subsidiary Guarantors in the execution of such amendment
or supplemental indenture.
46
It shall not be necessary for the consent of the Holders under
this Section 9.02 to approve the particular form of any proposed amendment,
supplement or waiver, but it shall be sufficient if such consent approves the
substance thereof.
The Holders of a majority in principal amount of the then
outstanding Securities of one or more series or of all series may waive
compliance in a particular instance by the Partnership or any Subsidiary
Guarantor with any provision of this Indenture with respect to Securities of
such series (including waivers obtained in connection with a tender offer or
exchange offer for Securities of such series or a solicitation of consents in
respect of Securities of such series, provided that in each case such offer or
solicitation is made to all Holders of then outstanding Securities of such
series (but the terms of such offer or solicitation may vary from series to
series)).
However, without the consent of each Holder affected, an
amendment, supplement or waiver under this Section 9.02 may not:
(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, including default interest, on any Security;
(3) reduce the principal of, any premium on or any
mandatory sinking fund payment with respect to, or change the Stated
Maturity of, any Security or reduce the amount of the principal of an
Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section
6.02;
(4) reduce the premium, if any, payable upon the
redemption of any Security or change the time at which any Security may
or shall be redeemed;
(5) change any obligation of the Partnership or any
Subsidiary Guarantor to pay Additional Amounts with respect to any
Security;
(6) change the coin or currency or currencies (including
composite currencies) in which any Security or any premium, interest or
Additional Amounts with respect thereto are payable;
(7) impair the right to institute suit for the
enforcement of any payment of principal of, premium (if any) or
interest on or any Additional Amounts with respect to any Security
pursuant to Sections 6.07 and 6.08, except as limited by Section 6.06;
(8) make any change in the percentage of principal amount
of Securities necessary to waive compliance with certain provisions of
this Indenture pursuant to Section 6.04 or 6.07 or make any change in
this sentence of Section 9.02;
(9) modify the provisions of this Indenture with respect
to the subordination of any Security and any related Guarantee in a
manner adverse to the Holder thereof;
47
(10) waive a continuing Default or Event of Default in the
payment of principal of, premium (if any) or interest on or Additional
Amounts with respect to the Securities; or
(11) except as provided in Section 11.04, release any
Subsidiary Guarantors or modify the Guarantee in any manner adverse to
the Holders.
An amendment under this Section 9.02 may not make any change
that adversely affects the rights under Article X of any holder of an issue of
Senior Indebtedness unless the holders of the issue pursuant to its terms
consent to the change.
A supplemental indenture that changes or eliminates any
covenant or other provision of this Indenture which has expressly been included
solely for the benefit of one or more particular series of Securities, or which
modifies the rights of the Holders of Securities of such series with respect to
such covenant or other provision, shall be deemed not to affect the rights under
this Indenture of the Holders of Securities of any other series.
The right of any Holder to participate in any consent required
or sought pursuant to any provision of this Indenture (and the obligation of the
Partnership or any Subsidiary Guarantor to obtain any such consent otherwise
required from such Holder) may be subject to the requirement that such Holder
shall have been the Holder of record of any Securities with respect to which
such consent is required or sought as of a date identified by the Partnership or
such Subsidiary Guarantor in a notice furnished to Holders in accordance with
the terms of this Indenture.
After an amendment, supplement or waiver under this Section
9.02 becomes effective, the Partnership shall mail to the Holders of each
Security affected thereby a notice briefly describing the amendment, supplement
or waiver. Any failure of the Partnership to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such amendment, supplement or waiver.
SECTION 9.03 Compliance with Trust Indenture Act.
Every amendment or supplement to this Indenture or the
Securities shall comply in form and substance 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 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 or her Security or portion of a Security if the Trustee
receives written notice of revocation before a date and time therefor identified
by the Partnership or any Subsidiary Guarantor in a notice furnished to such
Holder in accordance with the terms of this Indenture or, if no such date and
time shall be identified, the date the amendment, supplement or waiver becomes
effective. An amendment, supplement or waiver becomes effective in accordance
with its terms and thereafter binds every Holder.
48
The Partnership or any Subsidiary Guarantor may, but shall not
be obligated to, fix a record date (which need not comply with TIA Section
316(c)) for the purpose of determining the Holders entitled to consent to any
amendment, supplement or waiver or to take any other action under this
Indenture. If a record date is fixed, then notwithstanding the provisions of the
immediately preceding paragraph, those Persons who were Holders at such record
date (or their duly designated proxies), and only those Persons, shall be
entitled to consent to such amendment, supplement or waiver or to revoke any
consent previously given, whether or not such Persons continue to be Holders
after such record date. No consent shall be valid or effective for more than 90
days after such record date unless consents from Holders of the principal amount
of Securities required hereunder for such amendment or waiver to be effective
shall have also been given and not revoked within such 90-day period.
After an amendment, supplement or waiver becomes effective, it
shall bind every Holder, unless it is of the type described in any of clauses
(1) through (9) of Section 9.02 hereof. In such case, the amendment, supplement
or waiver shall bind each Holder who has consented to it and every subsequent
Holder that evidences the same debt as the consenting Holder's Security.
SECTION 9.05 Notation on or Exchange of Securities.
If an amendment or supplement changes the terms of an
outstanding Security, the Partnership may require the Holder of the Security to
deliver it to the Trustee. The Trustee may place an appropriate notation on the
Security at the request of the Partnership regarding the changed terms and
return it to the Holder. Alternatively, if the Partnership so determines, the
Partnership in exchange for the Security shall issue, and the Subsidiary
Guarantors shall execute and the Trustee shall authenticate a new Security that
reflects the changed terms. Failure to make the appropriate notation or to issue
a new Security shall not affect the validity of such amendment or supplement.
Securities of any series authenticated and delivered after the
execution of any amendment or supplement may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such amendment or supplement.
SECTION 9.06 Trustee to Sign Amendments, etc.
The Trustee shall sign any amendment or supplement authorized
pursuant to this Article if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. If it does,
the Trustee may, but need not, sign it. In signing or refusing to sign such
amendment or supplement, the Trustee shall be entitled to receive, and, subject
to Section 7.01 hereof, shall be fully protected in relying upon, an Officers'
Certificate and an Opinion of Counsel provided at the expense of the Partnership
or a Subsidiary Guarantor as conclusive evidence that such amendment or
supplement is authorized or permitted by this Indenture, that it is not
inconsistent herewith, and that it will be valid and binding upon the
Partnership and the Subsidiary Guarantors in accordance with its terms.
49
ARTICLE X
SUBORDINATION OF SECURITIES AND GUARANTEE
SECTION 10.01 Applicability of Article; Agreement To Subordinate.
The provisions of this Article X shall only be applicable to
the Securities of any series (Securities of such series referred to in this
Article X as "Subordinated Securities") designated, pursuant to Section 2.01, as
subordinated to Senior Indebtedness and any related Guarantee of such
Subordinated Securities. Each Holder by accepting a Subordinated Security agrees
that the Debt evidenced by such Subordinated Security and any related Guarantee
of such Subordinated Security is subordinated in right of payment, to the extent
and in the manner provided in this Article X, to the prior payment of all Senior
Indebtedness and that the subordination is for the benefit of and enforceable by
the holders of Indebtedness. All provisions of this Article X shall be subject
to Section 10.12.
SECTION 10.02 Liquidation, Dissolution, Bankruptcy.
Upon any payment or distribution of the assets of the
Partnership or the Subsidiary Guarantors, as the case may be, to creditors, upon
a liquidation or a dissolution of the Partnership or the Subsidiary Guarantors,
as the case may be, or in a bankruptcy, reorganization, insolvency, receivership
or similar proceeding relating to the Partnership or the Subsidiary Guarantors,
as the case may be, or their respective property:
(a) holders of Senior Indebtedness of the Partnership or
any Subsidiary Guarantor, as the case may be, shall be entitled to receive
payment in full in cash of such Senior Indebtedness of such Person (including
interest (if any), accruing on or after the commencement of a proceeding in
bankruptcy, whether or not allowed as a claim against the Partnership or the
Subsidiary Guarantors, as the case may be, in such bankruptcy proceeding) before
Holders of Subordinated Securities and any related Guarantee shall be entitled
to receive any payment of principal of, or premium, if any, or interest on, the
Subordinated Securities from the Partnership, or any payment in respect of any
Guarantee from the Subsidiary Guarantors; and
(b) until the Senior Indebtedness of the Partnership or
any Subsidiary Guarantor, as the case may be, is paid in full, any distribution
to which Holders of Subordinated Securities and any related Guarantee would be
entitled but for this Article X shall be made to holders of Senior Indebtedness
of the Partnership or the Subsidiary Guarantors, as the case may be, as their
interests may appear, except that such Holders may receive capital stock and any
debt securities that are subordinated to Senior Indebtedness of the Partnership
or the Subsidiary Guarantors, as the case may be, to at least the same extent as
the Subordinated Securities of the Partnership or the related Guarantee of any
Subsidiary Guarantor, respectively.
SECTION 10.03 Default on Senior Indebtedness.
The Partnership and the Subsidiary Guarantors may not pay the
principal of, or premium, if any, or interest on, the Subordinated Securities or
any related Guarantee or make any deposit pursuant to Article VIII and may not
repurchase, redeem or otherwise retire (except, in the case of Subordinated
Securities that provide for a mandatory sinking fund pursuant to Section 3.11,
by the delivery of Subordinated Securities by the Partnership to the Trustee
pursuant to the
50
first paragraph of Section 3.11) any Subordinated Securities (collectively, "pay
the Subordinated Securities") if any principal, premium or interest in respect
of Senior Indebtedness of such Person is not paid within any applicable grace
period (including at maturity) or any other default on Senior Indebtedness of
such Person occurs and the maturity of such Senior Indebtedness is accelerated
in accordance with its terms unless, in either case, the default has been cured
or waived and any such acceleration has been rescinded or such Senior
Indebtedness has been paid in full in cash; provided, however, that the
Partnership and the Subsidiary Guarantors may make payments on the Subordinated
Securities or any related Guarantee without regard to the foregoing if the
Partnership and the Trustee receive written notice approving such payment from
the Representative of each issue of Designated Senior Indebtedness. During the
continuance of any other default with respect to any Designated Senior
Indebtedness pursuant to which the maturity thereof may be accelerated
immediately without further notice (except such notice as may be required to
effect such acceleration) or the expiration of any applicable grace periods, the
Partnership and the Subsidiary Guarantors may not make payments on the
Subordinated Securities or any related Guarantee for a period (a "Payment
Blockage Period") commencing upon the receipt by the Partnership and the Trustee
(and if such Designated Senior Indebtedness is Debt of a Subsidiary Guarantor,
the Subsidiary Guarantor) of written notice of such default from the
Representative of any Designated Senior Indebtedness specifying an election to
effect a Payment Blockage Period (a "Blockage Notice") and ending 179 days
thereafter (or earlier if such Payment Blockage Period is terminated by written
notice to the Trustee and the Partnership (and if such Designated Senior
Indebtedness is Debt of a Subsidiary Guarantor, the Subsidiary Guarantor) from
the Person or Persons who gave such Blockage Notice, by repayment in full in
cash of such Designated Senior Indebtedness or because the default giving rise
to such Blockage Notice is no longer continuing). Notwithstanding the provisions
described in the immediately preceding sentence (but subject to the provisions
contained in Section 10.02 and the first sentence of this Section 10.03), unless
the holders of such Designated Senior Indebtedness or the Representative of such
holders shall have accelerated the maturity of such Designated Senior
Indebtedness, the Partnership and the Subsidiary Guarantors may resume payments
on the Subordinated Securities and related Guarantees after such Payment
Blockage Period. Not more than one Blockage Notice may be given in any
consecutive 360-day period, irrespective of the number of defaults with respect
to any number of issues of Designated Senior Indebtedness during such period,
unless otherwise specified pursuant to Section 2.01 for the Subordinated
Securities of a series; provided, however, that in no event may the total number
of days during which any Payment Blockage Period or Periods is in effect exceed
179 days in the aggregate during any 360 consecutive day period. For purposes of
this Section 10.03, no default or event of default which existed or was
continuing on the date of the commencement of any Payment Blockage Period with
respect to the Designated Senior Indebtedness initiating such Payment Blockage
Period shall be, or be made, the basis of the commencement of a subsequent
Payment Blockage Period by the Representative of such Designated Senior
Indebtedness, whether or not within a period of 360 consecutive days, unless
such default or event of default shall have been cured or waived for a period of
not less than 90 consecutive days.
SECTION 10.04 Acceleration of Payment of Securities.
If payment of the Subordinated Securities is accelerated
because of an Event of Default, the Partnership shall promptly notify the
holders of the Designated Senior Indebtedness (or their Representatives) of the
acceleration.
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SECTION 10.05 When Distribution Must Be Paid Over.
If a distribution is made to Holders of Subordinated
Securities or a related Guarantee that because of this Article X should not have
been made to them, the Holders who receive such distribution shall hold it in
trust for holders of Senior Indebtedness and pay it over to them as their
interests may appear.
SECTION 10.06 Subrogation.
After all Senior Indebtedness is paid in full and until the
Subordinated Securities are paid in full, Holders thereof shall be subrogated to
the rights of holders of Senior Indebtedness to receive distributions applicable
to Senior Indebtedness. A distribution made under this Article X to holders of
Senior Indebtedness which otherwise would have been made to Holders of
Subordinated Securities is not, as between the Partnership or the Subsidiary
Guarantors, as the case may be, and such Holders, a payment by the Partnership
or the Subsidiary Guarantors, as the case may be, on Senior Indebtedness.
SECTION 10.07 Relative Rights.
This Article X defines the relative rights of Holders of
Subordinated Securities and holders of Senior Indebtedness. Nothing in this
Indenture shall:
(a) impair, as between the Partnership or the Subsidiary
Guarantors, as the case may be, and Holders of either Subordinated Securities or
Securities, the obligation of the Partnership or the Subsidiary Guarantors, as
the case may be, which is absolute and unconditional, to pay principal of, and
premium, if any, and interest on, the Subordinated Securities and the Securities
in accordance with their terms; or
(b) prevent the Trustee or any Holder of either
Subordinated Securities or Securities from exercising its available remedies
upon an Event of Default, subject to the rights of holders of Senior
Indebtedness to receive distributions otherwise payable to Holders of
Subordinated Securities.
SECTION 10.08 Subordination May Not Be Impaired by Partnership.
No right of any holder of Senior Indebtedness to enforce the
subordination of the Debt evidenced by the Subordinated Securities and the
Guarantee in respect thereof shall be impaired by any act or failure to act by
the Partnership or the Subsidiary Guarantors or by its failure to comply with
this Indenture.
SECTION 10.09 Rights of Trustee and Paying Agent.
Notwithstanding Sections 10.02 and 10.03, the Trustee or any
paying agent may continue to make payments on Subordinated Securities and shall
not be charged with knowledge of the existence of facts that would prohibit the
making of any such payments unless, not less than two Business Days prior to the
date of such payment, a responsible officer of the Trustee receives notice
satisfactory to it that payments may not be made under this Article X. The
Partnership, the Registrar, any paying agent, a Representative or a holder of
Senior Indebtedness
52
may give the notice; provided, however, that, if an issue of Senior Indebtedness
has a Representative, only the Representative may give the notice on behalf of
the Holders of the Senior Indebtedness of that issue.
The Trustee in its individual or any other capacity may hold
Senior Indebtedness with the same rights it would have if it were not Trustee.
The Registrar and any paying agent may do the same with like rights. The Trustee
shall be entitled to all the rights set forth in this Article X with respect to
any Senior Indebtedness which may at any time be held by it, to the same extent
as any other holder of Senior Indebtedness; and nothing in Article VII shall
deprive the Trustee of any of its rights as such holder. Nothing in this Article
X shall apply to claims of, or payments to, the Trustee under or pursuant to
Section 7.07.
SECTION 10.10 Distribution or Notice to Representative.
Whenever a distribution is to be made or a notice given to
holders of Senior Indebtedness, the distribution may be made and the notice
given to their Representative (if any).
SECTION 10.11 Article X Not to Prevent Defaults or Limit Right to Accelerate.
The failure to make a payment pursuant to the Subordinated
Securities, whether directly or pursuant to the Guarantee, by reason of any
provision in this Article X shall not be construed as preventing the occurrence
of a Default. Nothing in this Article X shall have any effect on the right of
the Holders or the Trustee to accelerate the maturity of either the Subordinated
Securities or the Securities, as the case may be.
SECTION 10.12 Trust Moneys Not Subordinated.
Notwithstanding anything contained herein to the contrary,
payments from money or the proceeds of U.S. Government Obligations held in trust
under Article VIII by the Trustee for the payment of principal of, and premium,
if any, and interest on, the Subordinated Securities or the Securities shall not
be subordinated to the prior payment of any Senior Indebtedness or subject to
the restrictions set forth in this Article X, and none of the Holders thereof
shall be obligated to pay over any such amount to the Partnership, the
Subsidiary Guarantors or any holder of Senior Indebtedness of the Partnership or
the Subsidiary Guarantors or any other creditor of the Partnership or the
Subsidiary Guarantors.
SECTION 10.13 Trustee Entitled to Rely.
Upon any payment or distribution pursuant to this Article X,
the Trustee and the Holders shall be entitled to rely upon any order or decree
of a court of competent jurisdiction in which any proceedings of the nature
referred to in Section 10.02 are pending, upon a certificate of the liquidating
trustee or agent or other Person making such payment or distribution to the
Trustee or to such Holders or upon the Representatives for the holders of Senior
Indebtedness for the purpose of ascertaining the Persons entitled to participate
in such payment or distribution, the holders of the Senior Indebtedness and
other Debt of the Partnership or the Subsidiary Guarantors, the amount thereof
or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article X. In the event that the
Trustee determines, in good faith, that evidence is required with respect to the
right of any Person as a
53
holder of Senior Indebtedness to participate in any payment or distribution
pursuant to this Article X, the Trustee may request such Person to furnish
evidence to the reasonable satisfaction of the Trustee as to the amount of
Senior Indebtedness held by such Person, the extent to which such Person is
entitled to participate in such payment or distribution and other facts
pertinent to the rights of such Person under this Article X, and, if such
evidence is not furnished, the Trustee may defer any payment to such Person
pending judicial determination as to the right of such Person to receive such
payment. The provisions of Sections 7.01 and 7.02 shall be applicable to all
actions or omissions of actions by the Trustee pursuant to this Article X.
SECTION 10.14 Trustee to Effectuate Subordination.
Each Holder by accepting a Subordinated Security authorizes
and directs the Trustee on his behalf to take such action as may be necessary or
appropriate to acknowledge or effectuate the subordination between the Holders
of Subordinated Securities and the holders of Senior Indebtedness as provided in
this Article X and appoints the Trustee as attorney-in-fact for any and all such
purposes.
SECTION 10.15 Trustee Not Fiduciary for Holders of Senior Indebtedness.
The Trustee shall not be deemed to owe any fiduciary duty to
the holders of Senior Indebtedness and shall not be liable to any such holders
if it shall mistakenly pay over or distribute to Holders of Subordinated
Securities or the Partnership or the Subsidiary Guarantors or any other Person,
money or assets to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article X or otherwise.
SECTION 10.16 Reliance by Holders of Senior Indebtedness on Subordination
Provisions.
Each Holder by accepting a Subordinated Security acknowledges
and agrees that the foregoing subordination provisions are, and are intended to
be, an inducement and a consideration to each holder of any Senior Indebtedness,
whether such Senior Indebtedness was created or acquired before or after the
issuance of the Subordinated Securities, to acquire and continue to hold, or to
continue to hold, such Senior Indebtedness and such holder of Senior
Indebtedness shall be deemed conclusively to have relied on such subordination
provisions in acquiring and continuing to hold, or in continuing to hold, such
Senior Indebtedness.
ARTICLE XI
GUARANTEE
SECTION 11.01 Unconditional Guarantee.
(a) Notwithstanding any provision of this Article XI to
the contrary, the provisions of this Article XI relating to the Subsidiary
Guarantors shall be applicable only to, and inure solely to the benefit of, the
Securities of any series designated, pursuant to Section 2.01 as entitled to the
benefits of the Guarantee of each of the Subsidiary Guarantors.
(b) For value received, each of the Subsidiary Guarantors
hereby fully, unconditionally and absolutely guarantees (the "Guarantee") to the
Holders and to the Trustee the due and punctual payment of the principal of, and
premium, if any, and interest on the
54
Securities and all other amounts due and payable under this Indenture and the
Securities by the Partnership, when and as such principal, premium, if any, and
interest shall become due and payable, whether at the stated maturity or by
declaration of acceleration, call for redemption or otherwise, according to the
terms of the Securities and this Indenture, subject to the limitations set forth
in Section 11.03 and (ii) in the case of the Guarantee of the Subordinated
Securities, to the subordination provisions contained in Article X.
(c) Failing payment when due of any amount guaranteed
pursuant to the Guarantee, for whatever reason, each of the Subsidiary
Guarantors will be jointly and severally obligated to pay the same immediately,
subject, in the case of the Guarantee of the Subordinated Securities, to the
subordination provisions contained in Article X. The Guarantee hereunder (other
than the Guarantee of Subordinated Securities) is intended to be a general,
unsecured, senior obligation of each of the Subsidiary Guarantors and will rank
pari passu in right of payment with all Debt of such Subsidiary Guarantor that
is not, by its terms, expressly subordinated in right of payment to the
Guarantee. Each of the Subsidiary Guarantors hereby agrees that its obligations
hereunder shall be full, unconditional and absolute, irrespective of the
validity, regularity or enforceability of the Securities, the Guarantee
(including the Guarantee of any Subsidiary Guarantor) or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
of the Securities with respect to any provisions hereof or thereof, the recovery
of any judgment against the Partnership or any Subsidiary Guarantor, or any
action to enforce the same or any other circumstances which might otherwise
constitute a legal or equitable discharge or defense of the Subsidiary
Guarantors. Each of the Subsidiary Guarantors hereby agrees that in the event of
a default in payment of the principal of, or premium, if any, or interest on the
Securities, whether at the Stated Maturity or by declaration of acceleration,
call for redemption or otherwise, legal proceedings may be instituted by the
Trustee on behalf of the Holders or, subject to Section 6.06, by the Holders, on
the terms and conditions set forth in this Indenture, directly against such
Subsidiary Guarantor to enforce the Guarantee without first proceeding against
the Partnership or any other Subsidiary Guarantor.
(d) The obligations of each of the Subsidiary Guarantors
under this Article XI shall be as aforesaid full, unconditional and absolute and
shall not be impaired, modified, released or limited by any occurrence or
condition whatsoever, including, without limitation, (i) any compromise,
settlement, release, waiver, renewal, extension, indulgence or modification of,
or any change in, any of the obligations and liabilities of the Partnership or
any of the Subsidiary Guarantors contained in the Securities or this Indenture,
(ii) any impairment, modification, release or limitation of the liability of the
Partnership, any of the Subsidiary Guarantors or any of their estates in
bankruptcy, or any remedy for the enforcement thereof, resulting from the
operation of any present or future provision of any applicable Bankruptcy Law,
as amended, or other statute or from the decision of any court, (iii) the
assertion or exercise by the Partnership, any of the Subsidiary Guarantors or
the Trustee of any rights or remedies under the Securities or this Indenture or
their delay in or failure to assert or exercise any such rights or remedies,
(iv) the assignment or the purported assignment of any property as security for
the Securities, including all or any part of the rights of the Partnership or
any of the Subsidiary Guarantors under this Indenture, (v) the extension of the
time for payment by the Partnership or any of the Subsidiary Guarantors of any
payments or other sums or any part thereof owing or payable under any of the
terms and provisions of the Securities or this Indenture or of the time for
performance by the Partnership or any of the Subsidiary Guarantors of any other
obligations under or arising out of
55
any such terms and provisions or the extension or the renewal of any thereof,
(vi) the modification or amendment (whether material or otherwise) of any duty,
agreement or obligation of the Partnership or any of the Subsidiary Guarantors
set forth in this Indenture, (vii) the voluntary or involuntary liquidation,
dissolution, sale or other disposition of all or substantially all of the
assets, marshaling of assets and liabilities, receivership, insolvency,
bankruptcy, assignment for the benefit of creditors, reorganization,
arrangement, composition or readjustment of, or other similar proceeding
affecting, the Partnership or any of the Subsidiary Guarantors or any of their
respective assets, or the disaffirmance of the Securities, the Guarantee or this
Indenture in any such proceeding, (viii) the release or discharge of the
Partnership or any of the Subsidiary Guarantors from the performance or
observance of any agreement, covenant, term or condition contained in any of
such instruments by operation of law, (ix) the unenforceability of the
Securities, the Guarantee or this Indenture or (x) any other circumstances
(other than payment in full or discharge of all amounts guaranteed pursuant to
the Guarantee) which might otherwise constitute a legal or equitable discharge
of a surety or guarantor.
(e) Each of the Subsidiary Guarantors hereby (i) waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of the merger, insolvency or bankruptcy of the Partnership or any of the
Subsidiary Guarantors, and all demands whatsoever, (ii) acknowledges that any
agreement, instrument or document evidencing the Guarantee may be transferred
and that the benefit of its obligations hereunder shall extend to each holder of
any agreement, instrument or document evidencing the Guarantee without notice to
it and (iii) covenants that the Guarantee will not be discharged except by
complete performance of the Guarantee. Each of the Subsidiary Guarantors further
agrees that if at any time all or any part of any payment theretofore applied by
any Person to the Guarantee is, or must be, rescinded or returned for any reason
whatsoever, including without limitation, the insolvency, bankruptcy or
reorganization of the Partnership or any of the Subsidiary Guarantors, the
Guarantee shall, to the extent that such payment is or must be rescinded or
returned, be deemed to have continued in existence notwithstanding such
application, and the Guarantee shall continue to be effective or be reinstated,
as the case may be, as though such application had not been made.
(f) Each of the Subsidiary Guarantors shall be subrogated
to all rights of the Holders and the Trustee against the Partnership in respect
of any amounts paid by such Subsidiary Guarantor pursuant to the provisions of
this Indenture, provided, however, that such Subsidiary Guarantor, shall not be
entitled to enforce or to receive any payments arising out of, or based upon,
such right of subrogation until all of the Securities and the Guarantee shall
have been paid in full or discharged.
SECTION 11.02 Execution and Delivery of Guarantee.
To further evidence the Guarantee set forth in Section 11.01,
each of the Subsidiary Guarantors hereby agrees that a notation relating to such
Guarantee, substantially in the form attached hereto as Annex A, shall be
endorsed on each Security entitled to the benefits of the Guarantee
authenticated and delivered by the Trustee and executed by either manual or
facsimile signature of an Officer of U.S. Propane, L.L.C. Each of the Subsidiary
Guarantors hereby agrees that the Guarantee set forth in Section 11.01 shall
remain in full force and effect notwithstanding any failure to endorse on each
Security a notation relating to the Guarantee. If
56
any Officer of U.S. Propane, L.L.C., whose signature is on this Indenture or a
Security no longer holds that office at the time the Trustee authenticates such
Security or at any time thereafter, the Guarantee of such Security shall be
valid nevertheless. The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the Guarantee
set forth in this Indenture on behalf of the Subsidiary Guarantors.
The Trustee hereby accepts the trusts in this Indenture upon
the terms and conditions herein set forth.
SECTION 11.03 Limitation on Liability of the Subsidiary Guarantors.
Each Subsidiary Guarantor and by its acceptance hereof each
Holder of a Security entitled to the benefits of the Guarantee hereby confirm
that it is the intention of all such parties that the guarantee by such
Subsidiary Guarantor pursuant to its Guarantee not constitute a fraudulent
transfer or conveyance for purposes of any federal or state law. To effectuate
the foregoing intention, the Holders of a Security entitled to the benefits of
the Guarantee and the Subsidiary Guarantors hereby irrevocably agree that the
obligations of each Subsidiary Guarantor under its Guarantee shall be limited to
the maximum amount as will, after giving effect to all other contingent and
fixed liabilities of such Subsidiary Guarantor and to any collections from or
payments made by or on behalf of any other Subsidiary Guarantor in respect of
the obligations of such other Subsidiary Guarantor under its Guarantee, result
in the obligations of such Subsidiary Guarantor under the Guarantee not
constituting a fraudulent conveyance or fraudulent transfer under federal or
state law.
SECTION 11.04 Release of Subsidiary Guarantors from Guarantee.
(a) Notwithstanding any other provisions of this
Indenture, the Guarantee of any Subsidiary Guarantor may be released upon the
terms and subject to the conditions set forth in this Section 11.04. Provided
that no Default shall have occurred and shall be continuing under this
Indenture, any Guarantee incurred by a Subsidiary Guarantor pursuant to this
Article XI shall be unconditionally released and discharged (i) automatically
upon (A) any sale, exchange or transfer, whether by way of merger or otherwise,
to any Person that is not an Affiliate of the Partnership, of all of the
Partnership's direct or indirect equity interests in such Subsidiary Guarantor
(provided such sale, exchange or transfer is not prohibited by this Indenture)
or (B) the merger of such Subsidiary Guarantor into the Partnership or any other
Subsidiary Guarantor or the liquidation and dissolution of such Subsidiary
Guarantor (in each case to the extent not prohibited by this Indenture) or (ii)
following delivery of a written notice of such release or discharge by the
Partnership, the Trustee, upon the release or discharge of all guarantees by
such Subsidiary Guarantor of any Debt of the Partnership other than obligations
arising under this Indenture and any Securities issued hereunder, except a
discharge or release by or as a result of payment under such guarantees.
(b) The Trustee shall deliver an appropriate instrument
evidencing any release of a Subsidiary Guarantor from the Guarantee upon receipt
of a written request of the Partnership accompanied by an Officers' Certificate
and an Opinion of Counsel that the Subsidiary Guarantor is entitled to such
release in accordance with the provisions of this Indenture. Any Subsidiary
Guarantor not so released remains liable for the full amount of principal of
(and
57
premium, if any, on) and interest on the Securities entitled to the benefits of
such Guarantee as provided in this Indenture, subject to the limitations of
Section 11.03.
SECTION 11.05 Contribution.
In order to provide for just and equitable contribution among
the Subsidiary Guarantors, the Subsidiary Guarantors hereby agree, inter se,
that in the event any payment or distribution is made by any Subsidiary
Guarantor (a "Funding Guarantor") under its Guarantee, such Funding Guarantor
shall be entitled to a contribution from each other Subsidiary Guarantor (as
applicable) in a pro rata amount based on the net assets of each Subsidiary
Guarantor (including the Funding Guarantor) for all payments, damages and
expenses incurred by that Funding Guarantor in discharging the Partnership's
obligations with respect to the Securities or any other Subsidiary Guarantor's
obligations with respect to its Guarantee.
ARTICLE XII
MISCELLANEOUS
SECTION 12.01 Trust Indenture Act Controls.
If any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by operation of TIA Section 318(c), the
imposed duties shall control.
SECTION 12.02 Notices.
Any notice or communication by the Partnership, any Subsidiary
Guarantor or the Trustee to the others is duly given if in writing and delivered
in person or mailed by first-class mail (registered or certified, return receipt
requested), telex, facsimile or overnight air courier guaranteeing next day
delivery, to the other's address:
If to the Partnership or the Subsidiary Guarantors:
Heritage Propane Partners, L.P.
8801 South Yale Avenue, Suite 310
Tulsa, Oklahoma 74137
Attn: Michael L. Greenwood
Telephone: (918) 492-7272
Facsimile: (918) 493-7290
If to the Trustee:
Attn:
Telephone:
Facsimile:
The Partnership, any Subsidiary Guarantor or the Trustee by
notice to the others may designate additional or different addresses for
subsequent notices or communications.
58
All notices and communications shall be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt acknowledged, if by facsimile; and
the next Business Day after timely delivery to the courier, if sent by overnight
air courier guaranteeing next day delivery.
Any notice or communication to a Holder shall be mailed by
first-class mail, postage prepaid, to the Holder's address shown on the register
kept by the Registrar. Failure to mail a notice or communication to a Holder or
any defect in it shall not affect its sufficiency with respect to other Holders.
If a notice or communication is mailed in the manner provided
above within the time prescribed, it is duly given, whether or not the addressee
receives it, except in the case of notice to the Trustee, it is duly given only
when received.
If the Partnership or a Subsidiary Guarantor mails a notice or
communication to Holders, it shall mail a copy to the others and to the Trustee
and each Agent at the same time.
All notices or communications, including without limitation
notices to the Trustee, the Partnership or a Subsidiary Guarantor by Holders,
shall be in writing, except as otherwise set forth herein.
In case by reason of the suspension of regular mail service,
or by reason of any other cause, it shall be impossible to mail any notice
required by this Indenture, then such method of notification as shall be made
with the approval of the Trustee shall constitute a sufficient mailing of such
notice.
SECTION 12.03 Communication by Holders with Other Holders.
Holders may communicate pursuant to TIA Section 312(b) with
other Holders with respect to their rights under this Indenture or the
Securities. The Partnership, the Subsidiary Guarantors, the Trustee, the
Registrar and anyone else shall have the protection of TIA Section 312(c).
SECTION 12.04 Certificate and Opinion as to Conditions Precedent.
Upon any request or application by the Partnership or a
Subsidiary Guarantor to the Trustee to take any action under this Indenture, the
Partnership or such Subsidiary Guarantor, as the case may be, shall, if
requested by the Trustee, furnish to the Trustee at the expense of the
Partnership or such Subsidiary Guarantor, as the case may be:
(1) an Officers' Certificate (which shall include the
statements set forth in Section 12.05) stating that, in the opinion of
the signers, all conditions precedent and covenants, if any, provided
for in this Indenture relating to the proposed action have been
complied with; and
(2) an Opinion of Counsel (which shall include the
statements set forth in Section 12.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants
have been complied with.
59
SECTION 12.05 Statements Required in Certificate or Opinion.
Each certificate or opinion with respect to compliance with a
condition or covenant provided for in this Indenture (other than a certificate
provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of
TIA Section 314(e) and 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 him or her 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 12.06 Rules by Trustee and Agents.
The Trustee may make reasonable rules for action by or at a
meeting of Holders. The Registrar or the Paying Agent may make reasonable rules
and set reasonable requirements for its functions.
SECTION 12.07 Legal Holidays.
If a payment date is a Legal Holiday at a Place of Payment,
payment may be made at that place on the next succeeding day that is not a Legal
Holiday, and no interest shall accrue for the intervening period.
SECTION 12.08 No Recourse Against Others.
A director, officer, employee, stockholder, partner or other
owner of the Partnership, a Subsidiary Guarantor or the Trustee, as such, shall
not have any liability for any obligations of the Partnership under the
Securities, for any obligations of any Subsidiary Guarantor under the Guarantee,
or for any obligations of the Partnership, any Subsidiary Guarantor or the
Trustee under this Indenture or for any claim based on, in respect of or by
reason of such obligations or their creation. Each Holder by accepting a
Security waives and releases all such liability. The waiver and release shall be
part of the consideration for the issue of Securities.
SECTION 12.09 Governing Law.
THIS INDENTURE, THE SECURITIES AND THE GUARANTEE SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT GIVING EFFECT TO APPLICABLE
60
PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT THE LAWS OF ANOTHER JURISDICTION
WOULD BE REQUIRED THEREBY.
SECTION 12.10 No Adverse Interpretation of Other Agreements.
This Indenture may not be used to interpret another indenture,
loan or debt agreement of the Partnership, any Subsidiary Guarantor or any
Subsidiary. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.
SECTION 12.11 Successors.
All agreements of the Partnership and the Subsidiary
Guarantors in this Indenture and the Securities shall bind its successors. All
agreements of the Trustee in this Indenture shall bind its successors.
SECTION 12.12 Severability.
In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall, to the fullest extent
permitted by applicable law, not in any way be affected or impaired thereby.
SECTION 12.13 Counterpart Originals.
The parties may sign any number of copies of this Indenture.
Each signed copy shall be an original, but all of them together represent the
same agreement.
SECTION 12.14 Table of Contents, Headings, etc.
The table of contents, cross-reference table and headings of
the Articles and Sections of this Indenture have been inserted for convenience
of reference only, are not to be considered a part hereof and shall in no way
modify or restrict any of the terms or provisions hereof.
61
IN WITNESS WHEREOF, the parties hereto have caused this
Indenture to be duly executed as of the day and year first above written.
HERITAGE PROPANE PARTNERS, L.P.
By: U.S. PROPANE, L.P., its General Partner
By: U.S. PROPANE, L.L.C., its General Partner
By:___________________________________________
Name:
Title:
HERITAGE OPERATING, L.P.
By: U.S. PROPANE, L.P., its General Partner
By: U.S. PROPANE, L.L.C., its General Partner
By:___________________________________________
Name:
Title:
HERITAGE SERVICE CORP.
By:___________________________________________
Name:
Title:
HERITAGE-BI STATE, L.L.C.
By:___________________________________________
Name:
Title:
HERITAGE ENERGY RESOURCES, L.L.C.
By:___________________________________________
Name:
Title:
[ ], as Trustee
By:___________________________________________
Name:
Title:
ANNEX A
NOTATION OF GUARANTEE
Each of the Subsidiary Guarantors (which term includes any
successor Person under the Indenture), has fully, unconditionally and absolutely
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture, the due and punctual payment of the principal of,
and premium, if any, and interest on the Securities and all other amounts due
and payable under the Indenture and the Securities by the Partnership.
The obligations of the Subsidiary Guarantors to the Holders of
Securities and to the Trustee pursuant to the Guarantee and the Indenture are
expressly set forth in Articles X and XI of the Indenture and reference is
hereby made to the Indenture for the precise terms of the Guarantee.
HERITAGE OPERATING, L.P.
By: U.S. PROPANE, L.P., its General Partner
By: U.S. PROPANE, L.L.C., its General Partner
By: __________________________________________
Name:
Title:
HERITAGE SERVICE CORP.
By: __________________________________________
Name:
Title:
HERITAGE-BI STATE, L.L.C.
By: __________________________________________
Name:
Title:
HERITAGE ENERGY RESOURCES, L.L.C.
By: __________________________________________
Name:
Title: